Form 8-K
8-K — APEX Tech Acquisition Inc.
Accession: 0001493152-26-047836
Filed: 2026-10-21
Period: 2026-10-20
CIK: 0002085485
SIC: 6770 (BLANK CHECKS)
Item: Entry into a Material Definitive Agreement
Item: Regulation FD Disclosure
Item: Financial Statements and Exhibits
Documents
8-K — form8-k.htm (Primary)
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EX-10.1 (ex10-1.htm)
EX-10.2 (ex10-2.htm)
EX-10.3 (ex10-3.htm)
EX-10.4 (ex10-4.htm)
EX-99.1 (ex99-1.htm)
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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): October 20, 2026
APEX
TECH ACQUISITION INC.
(Exact
name of registrant as specified in its charter)
Cayman
Islands
001-43164
N/A00-0000000
(State
or other jurisdiction of
incorporation)
(Commission
File Number)
(IRS
Employer
Identification No.)
13501
Katy Freeway
Houston,
Texas 77079
(Address
of principal executive offices) (Zip Code)
Registrant’s
telephone number, including area code: (840) 244-9122
Not
Applicable
(Former
name or former address, if changed since last report)
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under
any of the following provisions (see General Instruction A.2. below):
☒
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting
material pursuant to Rule 14a-12 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))
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. ☐
Securities
registered pursuant to Section 12(b) of the Act:
Title
of each class
Trading
Symbol(s)
Name
of each exchange on which registered
Units,
each consisting of one ordinary share, $0.0001 par value, and one right to receive one-fourth (1/4) of one ordinary share
TRADU
New
York Stock Exchange
Ordinary
shares, par value $0.0001 per share
TRAD
New
York Stock Exchange
Rights,
each entitling the holder to receive one-fourth (1/4) of one ordinary share
TRADR
New
York Stock Exchange
Item
1.01 Entry into a Material Definitive Agreement
Agreement
and Plan of Merger
This
section describes the material provisions of the Merger Agreement (as defined below) but does not purport to describe all of the terms
thereof. The following summary is qualified in its entirety by reference to the complete text of the agreements, the copies or forms
of which are attached hereto as Exhibit 2.1, 10.1, 10.2, 10.3, and 10.4 to this Current Report on Form 8-K (this “Report”).
APEX Tech Acquisition Inc. (“APEX”) shareholders and other interested parties are urged to read such agreement in its entirety.
Unless otherwise defined herein, the capitalized terms used in this Report are defined in the Merger Agreement.
General
Description of the Merger Agreement
On
October 20, 2026, APEX Tech Acquisition Inc., a Cayman Islands exempted corporation, entered into an Agreement and Plan of Merger (the
“Merger Agreement”) with APEX Tech Merger Sub Inc., a Delaware corporation and a direct wholly-owned subsidiary of APEX (“Merger
Sub”), APEX INNOVATION ACQUISITION CORP, a Delaware corporation (“Sponsor”), solely in the capacity as the representative
from and after the effective time of the Merger (as defined below) (the “Effective Time”) for the shareholders of APEX (other
than the Company Stockholders, (as defined below) (the “Purchaser Representative”), Korai Flix, Inc., a Delaware corporation
(“Korai” or the “Company”), and Hongdae Lee, solely in his capacity as the representative from and after the
Effective Time for Korai’s Stockholders (the “Company Representative”).
Pursuant
to the Merger Agreement, subject to the terms and conditions set forth therein, (i) prior to the Effective Time, APEX will continue out
of the Cayman Islands and into the State of Delaware so as to re-domicile as and become a Delaware corporation (“New Korai”)
(the “Conversion”), and (ii) upon the consummation of the transactions contemplated by the Merger Agreement (the “Closing”),
Merger Sub will merge with and into Korai (the “Merger” and, together with the other transactions contemplated by the Merger
Agreement, the “Transactions”), with Korai continuing as the surviving corporation (“Surviving Corporation”)
in the Merger and a wholly-owned subsidiary of APEX. In the Merger, (i) all shares of Korai’s Class A common stock (“Korai
Class A Common Stock”) and Class B common stock (“Korai Class B Common Stock”) issued and outstanding immediately prior
to the Effective Time (other than those properly exercising any applicable dissenters rights under Delaware law) will be converted into
the right to receive the Merger Consideration Shares (as defined below), and (ii) the Company Representative will receive 35,000 shares
of New Korai Class A Common Stock (as defined below) (“Bonus Shares”) upon completion of the Merger. In connection with the
Conversion, APEX will file with the Secretary of State of the State of Delaware a certificate of incorporation. At the Closing, APEX
will change its name to “Krflix Group, Inc.” or such other name as parties may agree.
Merger
Consideration
The
aggregate merger consideration to be paid pursuant to the Merger Agreement to the Company Stockholders immediately prior to the Effective
Time is $3,500,000,000 (the “Merger Consideration”). The Merger Consideration to be paid to the Company Stockholders will
be paid solely by delivery of new shares of New Korai common stock (the “Merger Consideration Shares”), with each share of
New Korai common stock valued at $10.00. The Merger Consideration Shares shall be divided into (i) a number of shares of Class A common
stock of New Korai (the “New Korai Class A Common Stock”) equal to product of the number of Merger Consideration Shares multiplied
by a fraction equal to (A) the total number of shares of Korai Class A Common Stock issued and outstanding immediately prior to the Effective
Time divided by (B) the total number of shares of Korai Class A Common Stock and Class B Common Stock (the Korai Class A Common Stock
and Class B Common Stock collectively “Korai Common Stock”) issued and outstanding immediately prior to the Effective Time,
and (ii) a number of shares of Class B common stock of New Korai (the “New Korai Class B Common Stock”) equal to product
of the number of Merger Consideration Shares multiplied by a fraction equal to (A) the total number of shares of Korai Class B Common
Stock issued and outstanding immediately prior to the Effective Time divided by (B) the total number of shares of Korai Common Stock
issued and outstanding immediately prior to the Effective Time.
2
Representations
and Warranties
The
Merger Agreement contains a number of representations and warranties by each of APEX, Merger Sub and Korai as of the date of the Merger
Agreement and as of the date of the Closing. Many of the representations and warranties are qualified by materiality or Material Adverse
Effect. “Material Adverse Effect” as used in the Merger Agreement means with respect to any specified person or entity, any
fact, event, occurrence, change or effect that has had or would reasonably be expected to have, individually or in the aggregate, a material
adverse effect on the business, assets, liabilities, results of operations, prospects or condition (financial or otherwise) of such person
or entity and its subsidiaries, taken as a whole, or the ability of such person or entity or any of its subsidiaries on a timely basis
to consummate the transactions contemplated by the Merger Agreement or the ancillary documents to which it is a party or bound or to
perform its obligations thereunder, in each case subject to certain customary exceptions. Certain of the representations are subject
to specified exceptions and qualifications contained in the Merger Agreement or in information provided pursuant to certain disclosure
schedules to the Merger Agreement. The representations and warranties made by APEX and Korai are customary for transactions similar to
the Transactions.
No
Survival
The
representations and warranties of the parties contained in the Merger Agreement terminate as of, and do not survive, the Closing, and
there are no indemnification rights for another party’s breach. The covenants and agreements of the parties contained in the Merger
Agreement do not survive the Closing, except those covenants and agreements to be performed after the Closing, which covenants and agreements
will survive until fully performed.
Covenants
of the Parties
Each
party agreed in the Merger Agreement to use its commercially reasonable efforts to effect the Closing. The Merger Agreement also contains
certain customary covenants by each of the parties during the period between the signing of the Merger Agreement and the earlier of the
Closing or the termination of the Merger Agreement in accordance with its terms (the “Interim Period”), including but not
limited to (1) the provision of access to their properties, books and records; (2) the operation of their respective businesses in the
ordinary course of business; (3) provision of financial statements by Korai; (4) APEX’s public filings; (5) no insider trading;
(6) notifications of certain breaches, consent requirements or other matters; (7) efforts to consummate the Closing and obtain third
party and regulatory approvals; (8) tax matters; (9) further assurances; (10) registration statement and public announcements and (11)
confidentiality. Each party also agreed during the Interim Period not to solicit or enter into any inquiry, proposal or offer, or any
indication of interest in making an offer or proposal for an alternative competing transactions, to notify the others as promptly as
practicable in writing of the receipt of any inquiries, proposals or offers, requests for information or requests relating to an alternative
competing transaction or any requests for non-public information relating to such transaction, and to keep the others informed of the
status of any such inquiries, proposals, offers or requests for information. There are also certain customary post-Closing covenants
regarding (1) directors and officers; (2) indemnification of directors and officers; and (3) use of trust account proceeds.
The
Merger Agreement and the consummation of the Transactions contemplated thereby require the approval of both APEX shareholders and Company
Stockholders. APEX agreed, as promptly as practicable after the date of the Merger Agreement, to prepare, with reasonable assistance
from Korai, and file with the U.S. Securities and Exchange Commission (the “SEC”), a registration statement on Form S-4 (as
amended or supplemented from time to time, the “Registration Statement”) in connection with the registration under the Securities
Act of 1933, as amended (the “Securities Act”) of the issuance of the shares of New Korai Common Stock to be issued to the
Company Stockholders as Merger Consideration Shares and the registration of the New Korai Class A Common Stock, and containing a proxy
statement/prospectus for the purpose of APEX soliciting proxies from the shareholders of APEX to approve the Merger Agreement, the transactions
contemplated thereby and related matters (the “APEX Shareholder Approval”) at an extraordinary general meeting of APEX’s
shareholders (the “APEX Special Meeting”) and providing such shareholders an opportunity to participate in the redemption
by APEX of its public shareholders in connection with APEX’s initial business combination, as required by APEX’s amended
and restated Memorandum and Articles of Association and APEX’s initial public offering prospectus (the “Redemption”).
Korai also agreed in the Merger Agreement to call a meeting of its stockholders, use its reasonable best efforts to solicit from Company
Stockholders proxies in favor of the Merger Agreement, the Transactions and certain related matters (the “Korai Stockholder Approval”),
and to take all other actions necessary or advisable to secure such approvals, including enforcing the Voting Agreement (as described
below).
3
The
parties also agreed to take all necessary action, so that effective at the Closing, the board of directors of New Korai (the “Post-Closing
Board”) will consist of five individuals. One of the members of the Post-Closing Board will be an individual designated by APEX
prior to the Closing and four of the members of the Post-Closing Board will be designated by Korai prior to the Closing, at least two
of whom will be required to qualify as independent under NYSE rules. At or prior to Closing, APEX will provide each of its director designees
with a customary director indemnification agreement, in form and substance reasonably acceptable to such director.
The
parties agreed that APEX shall have until 5:00 p.m. on December 19, 2026, to conduct additional legal due diligence and review of the
Company’s disclosure schedules (“Company Disclosure Schedules”) and other information on Korai and its direct and indirect
subsidiaries to determine whether its due diligence findings or any disclosure on the Company Disclosure Schedules is reasonably likely
to have a material negative impact on the business of the Surviving Corporation, as determined by APEX in its sole discretion.
Closing
Conditions
The
obligations of the parties to complete the Closing are subject to various conditions, including the following mutual conditions of the
parties unless waived:
● receipt
of the APEX Shareholder Approval;
● receipt of the Korai Stockholder
Approval;
● expiration of any applicable
waiting period under any antitrust laws;
● receipt of requisite consents
from governmental authorities to consummate the Transactions;
● receipt of specified requisite
consents from other third parties to consummate the Transactions;
● the absence of any law or order
that would prohibit the consummation of the Merger or other transactions contemplated by the Merger Agreement;
● upon the Closing, after giving
effect to the completion of the Redemption, APEX shall have net tangible assets of at least $5,000,001;
● the absence of any pending claim,
demand, action, litigation complaint, or other proceeding by or before a governmental authority seeking to enjoin the
consummation of the Merger and the other Transactions;
● the Conversion having been consummated;
● the members of the Post-Closing
Board shall have been elected or appointed as of the Closing;
● the effectiveness of the Registration
Statement; and
● the shares of New Korai Class
A Common Stock to be issued as Merger Consideration shall have been approved for listing on the NYSE.
Unless
waived by APEX, the obligations of APEX and Merger Sub to consummate the Merger are subject to the satisfaction of the following additional
conditions, in addition to customary certificates and other closing deliverables:
● the representations
and warranties of Korai being true and correct as of the date of the Merger Agreement and as of
the Closing (subject to Material Adverse Effect);
● Korai having performed in all
material respects its obligations and complied in all material respects with its covenants and agreements under the Merger
Agreement required to be performed or complied with on or prior to the date of the Closing;
● absence of any Material Adverse
Effect with respect to Korai and its subsidiaries, taken as a whole, since the date of the Merger Agreement which is
continuing and uncured;
● the consolidated net asset of
the Korai and subsidiaries for the calendar quarter immediately prior to the Closing shall be no less than US$100,000,000,
and the number of registered users on the platform operated by the Korai and subsidiaries shall be no less than 20,000,000;
● APEX having received a Lock-Up
Agreement for each Significant Stockholder, duly executed by such Significant Stockholder, and each Lock-Up Agreement
shall be in full force and effect as of the Closing, and
● APEX having received a fairness
opinion from King Kee Appraisal and Advisory Limited indicating that the Transactions are fair, from a financial point
of view, to APEX shareholders.
Unless
waived by Korai, the obligations of Korai to consummate the Merger are subject to the satisfaction of the following additional conditions:
● the representations
and warranties of APEX being true and correct as of the date of the Merger Agreement and as of
the Closing (subject to Material Adverse Effect);
4
● APEX having
performed in all material respects its obligations and complied in all material respects with its
covenants and agreements under the Merger Agreement required to be performed or complied with on
or prior to the date of the Closing; and
● absence of any Material Adverse
Effect with respect to APEX since the date of the Merger Agreement which is continuing and uncured.
Termination
The
Merger Agreement may be terminated under certain customary and limited circumstances at any time prior to the Closing, including:
● by
mutual written consent of APEX and Korai;
● by
either APEX or Korai if any of the conditions to Closing have not been satisfied or waived by
October 19, 2027 (the “Outside Date”), provided that APEX shall have the right to
extend the Outside Date if it obtains an extension of the deadline by which it must complete
its business combination (an “Extension”) for an additional period the shortest
of (i) three months and (ii) the period ending on the last day for APEX to consummate a business
combination after such Extension;
● by
either APEX or Korai if a governmental authority of competent jurisdiction shall have issued
an order or taken any other action permanently restraining, enjoining or otherwise prohibiting
the transactions contemplated by the Merger Agreement, and such order or other action has become
final and non-appealable;
● by
either APEX or Korai of the other party’s uncured breach (subject to certain materiality
qualifiers);
● by
either APEX or Korai if the APEX Special Meeting is held and the APEX Shareholder Approval is
not received;
● by
either APEX or Korai if a special meeting of Company Stockholders is held and the Korai Stockholder
Approval is not received; and
● by
written notice by the APEX to the Korai, at any time prior to the expiration of the Due Diligence
Period.
If
the Merger Agreement is terminated, all further obligations of the parties under the Merger Agreement will terminate and will be of no
further force and effect (except that certain obligations related to public announcements, confidentiality, fees and expenses, termination,
waiver of claims against the trust, and certain general provisions will continue in effect), and no party will have any further liability
to any other party thereto except for liability for any fraud claims or willful and intentional breach of the Merger Agreement prior
to such termination.
Trust
Account Waiver
Korai
and the Company Representative each agreed that it and its affiliates will not have any right, title, interest or claim of any kind in
or to any monies in APEX’s trust account held for its public shareholders, and agreed not to, and waived any right to, make any
claim against the trust account (including any distributions therefrom).
Governing
Law
The
Merger Agreement is governed by Delaware law and the parties are subject to exclusive jurisdiction of federal and state courts located
in New York, State of New York (and any appellate courts thereof).
The
foregoing description of the Merger Agreement and the Transactions does not purport to be complete and is qualified in its entirety by
the terms and conditions of the Merger Agreement, a copy of which is filed as Exhibit 2.1 hereto and is incorporated herein by reference.
The
Merger Agreement contains representations, warranties and covenants that the respective parties made to each other as of the date of
such agreement or other specific dates. The assertions embodied in those representations, warranties and covenants were made for purposes
of the contract among the respective parties and are subject to important qualifications and limitations agreed to by the parties in
connection with negotiating such agreement. The Merger Agreement has been filed to provide investors with information regarding its terms.
It is not intended to provide any other factual information about APEX, Korai or any other party to the Merger Agreement. In particular,
the representations, warranties, covenants and agreements contained in the Merger Agreement, which were made only for purposes of such
agreement and as of specific dates, were solely for the benefit of the parties to the Merger Agreement, may be subject to limitations
agreed upon by the contracting parties (including being qualified by confidential disclosures made for the purposes of allocating contractual
risk between the parties to the Merger Agreement instead of establishing these matters as facts) and may be subject to standards of materiality
applicable to the contracting parties that differ from those applicable to investors and reports and documents filed with the SEC. Investors
should not rely on the representations, warranties, covenants and agreements, or any descriptions thereof, as characterizations of the
actual state of facts or condition of any party to the Merger Agreement. In addition, the representations, warranties, covenants and
agreements and other terms of the Merger Agreement may be subject to subsequent waiver or modification. Moreover, information concerning
the subject matter of the representations and warranties and other terms may change after the date of the Merger Agreement, which subsequent
information may or may not be fully reflected in APEX’s public disclosures.
5
Related
Agreements
Voting
Agreement
In
connection with the execution of the Merger Agreement, on October 20, 2026, certain holders of Korai Common Stock immediately prior to
the Effective Time (each, a “Significant Stockholder”) entered into a voting agreement(each a “Voting Agreement”)
with Korai, APEX and Meger Sub. Under the Voting Agreement, Significant Stockholders agreed, among other things, to vote all of their
shares of Korai Common Stock in favor of adopting and approving the Merger Agreement and the Transactions and the other matters submitted
to Company Stockholders for their approval. The Voting Agreement restricts Company Stockholders from transfers of the Korai Common Stock
held by such stockholder between the date of the Voting Agreement and the date of Closing, except for certain permitted transfers where
the recipient also agrees to comply with the Voting Agreement.
Lock-Up
Agreement
In
connection with the execution of the Merger Agreement, each Significant Stockholder will enter into a Lock-Up Agreement with APEX and
the Sponsor (each, a “Lock-Up Agreement”), effective as of the Closing. Pursuant to the Lock-Up Agreement, each Significant
Stockholder shall agree not to with respect to (i) the Merger Consideration Shares, during the period commencing from the Closing and
a date that is six (6) months immediately after the Closing Date; and (ii) the Bonus Shares during the period commencing from the Closing
and a date that is twelve (12) months immediately after the Closing Date (the periods specified in (i) and (ii), the “Lock-Up Period”)
to (A) lend, offer, pledge, hypothecate, encumber, donate, assign, sell, contract to sell, sell any option or contract to purchase, purchase
any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly,
any restricted securities, (B) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic
consequences of ownership of the restricted securities, (C) publicly announce any intention to effect any transaction specified in clause
(A) or (B). Provided, however, that the Lock-Up Period shall expire on such earlier date on which APEX completes a liquidation, merger,
capital stock exchange, reorganization or other similar transaction that results in all of the APEX’s shareholders having the right
to exchange their APEX Common Stock or other equity securities of APEX for cash, securities or other property, and following which the
stockholders of the APEX immediately prior to such transaction cease to hold a majority of the voting power of APEX or the surviving
or successor entity.
Sponsor
Support Agreement
Concurrently
with execution of the Merger Agreement, on October 20, 2026, APEX and Korai entered into a sponsor support agreement with the Sponsor
(the “Sponsor Support Agreement”). Under the Sponsor Support Agreement, the Sponsor agreed (i) to vote all Subject Shares
(as defined in the Sponsor Support Agreement) in favor of the Merger Agreement and the Transactions, and each of the proposals in connection
with the consummation of the Merger and the Transactions, and (ii) to vote its Subject Shares against any alternative transactions. The
Sponsor Support Agreement restricts the Sponsor from transferring all Subject Shares prior to the earliest of: (a) the termination of
the Merger Agreement, (b) the Effective Time, and (c) mutual agreement of parties.
Amended
and Restated Registration Rights Agreement
Pursuant
to APEX’s initial public offering, the Sponsor is entitled to registration rights pursuant to a registration rights agreement.
In general, the Sponsor is entitled to make up to two demands that APEX register such securities. The Sponsor can elect to exercise these
registration rights at any time commencing three months prior to the end of its original lock-up period. The Sponsor can also elect to
exercise these registration rights at any time after APEX consummates a business combination. In addition, the Sponsor has certain “piggy-back”
registration rights with respect to registration statements filed subsequent to APEX consummation of a business combination.
6
In
connection with the Merger Agreement, the Sponsor and certain of the Company Stockholders who are expected to be affiliates of Korai
immediately after the Closing will enter into an Amended and Restated Registration Rights Agreement pursuant to which such APEX and Company
Stockholders will be granted certain registration rights with respect to their shares of APEX Class A common stock received as Merger
Consideration or in connection with the Conversion, on the terms and subject to the conditions set forth in the Registration Rights Agreement.
In general, the Sponsor and certain of the Company Stockholders will be entitled to one demand registration statement and unlimited “piggy-back”
registration rights. APEX will bear the expenses incurred in connection with the filing of any such registration statements
The
foregoing descriptions of the Voting Agreement, the Lock-up Agreement, Sponsor Support Agreement and Amended and Restated Registration
Rights Agreement do not purport to be complete and are qualified in their entirety by reference to the complete text of the form of
Voting Agreement, the form of Lock-up Agreement, the form of Sponsor Support Agreement and the form of Amended and Restated Registration
Rights Agreement, copies of which are filed hereto as Exhibit 10.1, 10.2, 10.3, and 10.4 respectively to this Form 8-K.
Item
7.01 Regulation FD Disclosure
On
October 20, 2026, APEX and Korai issued a joint press release announcing the execution of the Merger Agreement. A copy of the press release
is furnished as Exhibit 99.1 to this report and incorporated by reference into this Item 7.01.
The
information in this Item 7.01, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for purposes of
Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, and shall not
be incorporated by reference into any filing of APEX under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly
set forth by specific reference in such filing.
Additional
Information and Where to Find It
APEX
intends to file with the SEC a registration statement on Form S-4 (as may be amended from time to time, the “Registration Statement”),
which will include a preliminary proxy statement and a prospectus of APEX, and certain related documents, in connection with a meeting
of stockholders to approve the Meger Agreement and related matters. The definitive proxy statement and other relevant documents will
be mailed to APEX shareholders as of a record date to be established for voting on the Merger Agreement. APEX securityholders and other
interested persons are urged to read, when available, the Registration Statement, preliminary proxy statement/prospectus, and any amendments
thereto, and all other relevant documents filed or that will be filed with the SEC in connection with the proposed merger and related
Transactions as they become available, because they contain important information about APEX, Korai, and the Business Combination. Investors,
securityholders and other interested persons will also be able to obtain copies of the Registration Statement, the proxy statement/prospectus
and all other relevant documents filed or that will be filed with the SEC by APEX, once such documents are filed, free of charge, on
the SEC’s website at www.sec.gov or by directing a request to: APEX Tech Acquisition Inc., 13501 Katy Freeway, Houston, Texas 77079,
Attention: Florence Ng.
7
Forward-Looking
Statements
This
Current Report on Form 8-K contains forward-looking statements for purposes of the “safe harbor” provisions under the United
States Private Securities Litigation Reform Act of 1995. Terms such as “anticipate,” “believe,” “continue,”
“could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,”
“possible,” “potential,” “predicts,” “project,” “should,” “would”
as well as similar terms, are forward-looking in nature. The forward-looking statements contained in this discussion are based on the
Korai’s current expectations and beliefs concerning future developments and their potential effects. There can be no assurance
that future developments affecting Korai will be those that it has anticipated. These forward-looking statements involve a number of
risks, uncertainties (some of which are beyond the Korai’s control) or other assumptions that may cause actual results or performance
to be materially different from those expressed or implied by these forward-looking statements. Factors that may cause actual results
to differ materially from current expectations include, but are not limited to: the occurrence of any event, change or other circumstances
that could give rise to the termination of negotiations and any subsequent definitive agreements with respect to the Business Combination;
the outcome of any legal proceedings that may be instituted against APEX, Korai, the combined company or others following the announcement
of the Business Combination; the inability to complete the Business Combination due to the failure to obtain approval of the shareholders
of APEX, the possibility that due diligence completed following execution of the principal definitive transactions will not be satisfactorily
concluded, or to satisfy other conditions to closing; changes to the proposed structure of the Business Combination that may be required
or appropriate as a result of applicable laws or regulations or as a condition to obtaining regulatory approval of the Business Combination;
the ability to meet stock exchange listing standards following the consummation of the Business Combination; the risk that the Business
Combination disrupts current plans and operations of Korai as a result of the announcement and consummation of the Business Combination;
the ability to recognize the anticipated benefits of the Business Combination or to realize estimated pro forma results and underlying
assumptions, including with respect to estimated shareholder redemptions; costs related to the Business Combination; changes in applicable
laws or regulations; the evolution of the markets in which Korai competes; the inability of Korai to defend its intellectual property
and satisfy regulatory requirements; the ability to implement business plans, forecasts, and other expectations after the completion
of the proposed Business Combination, and identify and realize additional opportunities; the risk of downturns and a changing regulatory
landscape in the highly competitive pharmaceutical industry; and other risks and uncertainties set forth in the section entitled “Risk
Factors” and “Cautionary Note Regarding Forward-Looking Statements” in APEX’s final prospectus dated February
25, 2026, risks and uncertainties indicated in the Registration Statement and the definitive proxy statement to be delivered to APEX’s
shareholders, including those set forth under “Risk Factors” therein, and other documents filed or to be filed with the SEC
by APEX.
Should
one or more of these risks or uncertainties materialize, they could cause our actual results to differ materially from the forward-looking
statements. Neither APEX nor Korai is undertaking any obligation to provide any additional information or to update or revise any forward-looking
statements whether as a result of new information, future events or otherwise except as required by law or applicable regulation. You
should not take any statement regarding past trends, activities or performance as a representation that the trends, activities or performance
will continue in the future. Accordingly, you should not put undue reliance on these statements.
Solicitation
Participants
APEX
and Korai, and certain of their respective directors and officer, under SEC rules, may be deemed to be participants in the eventual solicitation
of proxies of APEX’s shareholders in connection with the proposed Business Combination. Prospective investors and securityholders
may obtain more detailed information regarding the names and interest in the proposed transaction of such individuals in APEX’s
filings with the SEC, and such information will also be contained in the proxy statement/prospectus when available. You may obtain free
copies of these documents from the sources indicated above.
No
Offer or Solicitation
This
Current Report on Form 8-K does not constitute (i) a solicitation of a proxy, consent or authorization with respect to any securities
or in respect of the proposed Business Combination or (ii) an offer to sell, a solicitation of an offer to buy, or a recommendation to
buy any security of APEX, Korai or any of their respective affiliates. There shall not be any sale of any securities in any state or
jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the laws of such
other jurisdiction. No offering of securities shall be made except by means of prospectus meeting the requirements of Section 10 of the
Securities Act of 1933, as amended, or an exemption therefrom.
Item
9.01 Financial Statements and Exhibits
(d)
Exhibits.
Exhibit No.
Description
2.1*
Agreement and Plan of Merger Agreement
10.1
Form
of Voting
Agreement
10.2
Form of Lock-Up Agreement
10.3
Form
of Sponsor
Support Agreement
10.4
Form of Amended and Restated Registration Rights Agreement
99.1
Press Release
104
Cover
Page Interactive Data File (embedded within the Inline XBRL document)
*
Certain schedules and exhibits have been omitted under Item 601(a)(5) of Regulation S-K, and certain confidential information has been
redacted under Item 601(b)(10)(iv). APEX will furnish copies of omitted materials to the SEC on request.
8
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
APEX
TECH ACQUISITION, INC.
Date:
October 21, 2026
By:
/s/
Florence Ng
Florence
Ng
Chief
Executive Officer
9
EX-2.1
EX-2.1
Filename: ex2-1.htm · Sequence: 2
Exhibit
2.1
AGREEMENT AND PLAN OF MERGER
by
and among
APEX
TECH ACQUISITION INC.,
as
the Purchaser,
APEX
TECH MERGER SUB INC,
as
Merger Sub,
APEX
INNOVATION ACQUISITION CORP.
in
the capacity as the Purchaser Representative,
Hongdae
Lee,
in
the capacity as the Company Representative,
and
KORAI
FLIX, INC.,
as
the Company,
Dated
as of October 20, 2026
I.
MERGER
2
1.1.
Conversion of the Purchaser
2
1.2.
Merger
3
1.3.
Transaction Effective Time
3
1.4.
Effect of the Merger
3
1.5.
Tax Treatment
3
1.6.
Certificate of Incorporation and Bylaws of the Surviving Corporation
3
1.7.
Directors and Officers of the Transaction Surviving Corporation
3
1.8.
Merger Consideration
3
1.9.
Effect of Merger on Company Securities
4
1.10.
Surrender of Company Securities and Payment of Merger Consideration
5
1.11.
Effect of Transaction on Merger Sub Stock
6
1.12.
Taking of Necessary Action; Further Action
6
1.13.
Appraisal and Dissenter’s Rights
7
II.
CLOSING
7
2.1.
Closing
7
III.
REPRESENTATIONS AND WARRANTIES OF THE PURCHASER PARTIES
7
3.1.
Organization and Standing
7
3.2.
Authorization; Binding Agreement
8
3.3.
Governmental Approvals
8
3.4.
Non-Contravention
8
3.5.
Capitalization
9
3.6.
SEC Filings and Purchaser Financials
10
3.7.
Absence of Certain Changes
11
3.8.
Compliance with Laws
11
3.9.
Actions; Orders; Permits
11
3.10.
Taxes and Returns
11
3.11.
Employees and Employee Benefit Plans
12
3.12.
Properties
12
3.13.
Material Contracts
12
3.14.
Transactions with Affiliates
13
3.15.
Merger Sub Activities
13
3.16.
Investment Company Act
13
3.17.
Finders and Brokers
13
3.18.
Ownership of Stockholder Merger Consideration
13
3.19.
Purchaser Parties Activities
14
3.20.
Certain Business Practices
14
3.21.
Insurance
14
3.22.
Purchaser Trust Account
15
3.23 Information
Supplied
15
3.24.
No Other Representations
15
IV.
REPRESENTATIONS AND WARRANTIES OF THE COMPANY
15
4.1.
Organization and Standing
15
4.2.
Authorization; Binding Agreement
16
4.3.
Capitalization
16
4.4.
Subsidiaries
17
4.5.
Governmental Approvals
18
4.6.
Non-Contravention
18
4.7.
Financial Statements
18
i
4.8.
Absence of Certain Changes
19
4.9.
Compliance with Laws
20
4.10.
Company Permits
20
4.11.
Litigation
20
4.12.
Material Contracts
20
4.13.
Intellectual Property
22
4.14.
Taxes and Returns
24
4.15.
Real Property
26
4.16.
Personal Property
26
4.17.
Title to and Sufficiency of Assets
26
4.18.
Employee Matters
27
4.19.
Benefit Plans
28
4.20. Environmental Matters
30
4.21. Transactions with Related Persons
31
4.22.
Insurance
31
4.23.
Books and Records
31
4.24.
Top Customers and Suppliers
31
4.25
Certain Business Practices
32
4.26 [Intentionally
Omitted]
32
4.27
Investment Company Act
32
4.28.
Finders and Brokers
32
4.29.
Information Supplied
33
4.30.
No Other Representations
33
V.
COVENANTS
33
5.1.
Access and Information
33
5.2.
Conduct of Business of the Company
34
5.3.
Conduct of Business of the Purchaser
37
5.4. Interim Financials
39
5.5.
Purchaser Public Filings
39
5.6.
No Solicitation
39
5.7.
No Trading
40
5.8.
Notification of Certain Matters
40
5.9.
Efforts
41
5.10.
Tax Matters
42
5.11.
Further Assurances
42
5.12.
The Registration Statement
43
5.13.
Company Stockholder Meeting
44
5.14.
Public Announcements
44
5.15.
Confidential Information
45
5.16.
Documents and Information
46
5.17.
Post-Closing Board of Directors and Executive Officers
46
5.18.
Indemnification of Officers and Directors; Tail Insurance
47
5.19.
Trust Account Proceeds
47
5.20. Extension of Business Combination Deadline
48
5.21.
Due Diligence Period
48
VII.
CLOSING CONDITIONS
48
6.1.
Conditions of Each Party’s Obligations
48
6.2.
Conditions to Obligations of the Company
49
6.3.
Conditions to Obligations of the Purchaser
50
6.4. Closing Deliverables
50
6.5.
Frustration of Conditions
52
ii
VIII.
TERMINATION AND EXPENSES
52
7.1.
Termination
52
7.2.
Effect of Termination
53
7.3.
Fees and Expenses
53
IX.
WAIVERS AND RELEASES
54
8.1.
Waiver of Claims Against Trust
54
X.
MISCELLANEOUS
55
9.1.
Notices
55
9.2.
Binding Effect; Assignment
56
9.3.
Third Parties
56
9.4.
Governing Law; Jurisdiction
56
9.5.
WAIVER OF JURY TRIAL
57
9.6.
Specific Performance
57
9.7.
Severability
57
9.8.
Amendment
57
9.9.
Waiver
57
9.10.
Entire Agreement
58
9.11.
Interpretation
58
9.12.
Counterparts
59
9.13.
Purchaser Representative
59
9.14.
Company Representative
60
9.15.
Non-Survival of Representations, Warranties
62
XI
DEFINITIONS
62
10.1.
Certain Definitions
62
10.2.
Section References
72
INDEX
OF EXHIBITS
Exhibit
Description
Exhibit A
Form of Voting Agreement
Exhibit B
Form of Sponsor Support Agreement
Exhibit C
Form of Lock-Up Agreement
Exhibit D
Form of Amended and Restated Registration Rights Agreement
iii
AGREEMENT
AND PLAN OF MERGER
This
Agreement and Plan of Merger (this “Agreement”) is made and entered into as of October 20, 2026 by
and among (i) APEX Tech Acquisition Inc., a Cayman Islands exempted company (together with its successors, including after the
Conversion (as defined below), the “Purchaser”), (ii) APEX Tech Merger Sub Inc., a Delaware corporation
and a wholly-owned subsidiary of the Purchaser (“Merger Sub” and, collectively with Purchaser, the “Purchaser
Parties”), (iii) Apex Innovation Acquisition Corp., a Delaware corporation, in the capacity as the representative
from and after the Effective Time (as defined below) for the stockholders of the Purchaser (other than the Company Security Holders (as
defined below) as of immediately prior to the Effective Time and their successors and assignees) in accordance with the terms and conditions
of this Agreement (the “Purchaser Representative”), (iv) Hongdae Lee, in the capacity as the representative
from and after the Effective Time for the Company Stockholders (as defined below) as of immediately prior to the Effective Time in accordance
with the terms and conditions of this Agreement (the “Company Representative”), and (v) Korai Flix, Inc.,
a Delaware corporation (the “Company”). The Purchaser Parties, the Purchaser Representative, the Company Representative
and the Company are sometimes referred to herein individually as a “Party” and, collectively, as the “Parties”.
RECITALS:
A. The
Company is an indirect holding company for Vane Global Technology Co., Ltd., a Republic of Korea company, which engages in the AI entertainment
business;
B. The
Purchaser owns all of the issued and outstanding capital stock of Merger Sub, which was formed for the sole purpose of the Merger (as
defined below);
C. Prior
to the consummation of the Merger (as defined below), the Purchaser shall continue out of the Cayman Islands and into the State of Delaware
so as to re-domicile as and become a Delaware corporation (the “Conversion”) pursuant to Cayman Islands Companies
Act (As Revised) (the “Companies Act”) and Section 388 and other applicable provisions of the Delaware General
Corporation Law (as amended, the “DGCL”);
D. The
Parties intend to effect the merger of Merger Sub with and into the Company, with the Company continuing as the surviving entity (the
“Merger”), as a result of which all of the issued and outstanding capital stock of the Company immediately
prior to the Effective Time, shall no longer be outstanding and shall automatically be cancelled and shall cease to exist, in exchange
for the right for each Company Stockholder to receive its Class A Pro Rata Share (as defined below) of the Class A Merger Consideration
Shares (as defined below) and its Class B Pro Rata Share (as defined below) of the Class B Merger Consideration Shares (as defined below);
E. The
boards of directors of the Company, the Purchaser and Merger Sub have each (i) determined that the Merger (preceded by the Conversion)
is fair, advisable and in the best interests of their respective companies and stockholders, (ii) approved this Agreement and the transactions
contemplated hereby, including the Conversion and the Merger, upon the terms and subject to the conditions set forth herein, and (iii)
determined to recommend to their respective stockholders the approval and adoption of this Agreement and the transactions contemplated
hereby, including the Conversion and the Merger;
F. The
Purchaser 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;);
1
G. As
a condition and inducement to the Company’s willingness to enter into this Agreement, simultaneously with the execution and delivery
of this Agreement, the Sponsor has executed and delivered to the Company the Sponsor Support Agreement in the form attached hereto as
Exhibit B (the “Sponsor Support Agreement”);
H. Simultaneously
with the execution and delivery of this Agreement, the Significant Company Holders have each entered into a Lock-Up Agreement with Purchaser
and the Purchaser Representative, the form of which is attached as Exhibit C hereto (each, a “Lock-Up Agreement”),
which Lock-Up Agreements will become effective as of the Closing;
I. In connection with the consummation of the Merger, certain stockholders of the Company, the
Purchaser, and the other parties listed therein shall enter into an Amended and Restated Registration Rights Agreement (the “Registration
Rights Agreement”) substantially in the form attached hereto as Exhibit D;
J. The
Parties intend that the Merger will qualify as a tax-free “reorganization” within the meaning of Section 368(a) of the Code
(as defined herein); and
K. Certain
capitalized terms used herein are defined in Article X hereof.
NOW,
THEREFORE, in consideration of the premises set forth above, which are incorporated in this Agreement as if fully set forth below,
and the representations, warranties, covenants and agreements contained in this Agreement, and intending to be legally bound hereby,
the Parties hereto agree as follows:
Article
I
MERGER
1.1 Conversion
of the Purchaser; Amendment to Purchaser Organizational Documents.
(a) Prior
to the Effective Time, the Purchaser shall continue out of the Cayman Islands and into the State of Delaware so as to re-domicile as
and become a Delaware corporation pursuant to the Companies Act and the applicable provisions of the DGCL (the “Conversion”),
and subject to the receipt of the approval of the shareholders of the Purchaser to the Conversion and its terms, the Purchaser shall
adopt Delaware Organizational Documents in a form to be mutually agreed between Purchaser and the Company (the “Conversion
Organizational Documents”), In connection with the Conversion, all of the issued and outstanding Purchaser Securities shall
remain outstanding and become substantially identical securities of the Purchaser as a Delaware corporation except such Purchaser Securities
will have the right to receive Purchaser’s Class A Common Stock pursuant to the Merger.
(b)
At the Effective Time, Purchaser shall amend and restate its Organizational Documents in a form to be mutually agreed (the “Amended
Purchaser Organizational Documents”), which shall, among other matters, amend the Conversion Organizational Documents
to (i) provide that the name of Purchaser shall be changed to “Krflix Group Inc.” or such other name as the Purchaser and
the Company may agree prior to the Effective Time; (ii) remove and revise certain provisions in the Conversion Organizational Documents
related to Purchaser’s status as a blank check company, (iii) designate a new class of Purchaser Class A Common Stock, which Purchaser
Class A Common Stock will have one (1) vote per share; and (iv) designate a new class of Purchaser Class B Common Stock, which Purchaser
Class B Common Stock will have twenty (20) votes per share on any matter that is submitted to a vote, or for the consent of, the stockholders
of the Purchaser.
2
1.2 Merger.
At the Effective Time, and subject to and upon the terms and conditions of this Agreement, and in accordance with the applicable provisions
of the DGCL, Merger Sub and the Company shall consummate the Merger, pursuant to which Merger Sub shall be merged with and into the Company,
following which the separate corporate existence of Merger Sub shall cease and the Company shall continue as the surviving corporation.
The Company, as the surviving corporation after the Merger, is hereinafter sometimes referred to as the “Surviving Corporation”
(provided, that references to the Company for periods after the Effective Time shall include the Surviving Corporation).
1.3 Effective
Time. Subject to and upon the terms and conditions of this Agreement, the Parties hereto shall cause the Merger to be consummated
by filing the Certificate of Merger for the merger of Merger Sub with and into the Company in form and substance reasonably acceptable
to the Company and Purchaser (the “Certificate of Merger”) with the Secretary of State of the State of Delaware
in accordance with the applicable provisions of the DGCL on the Closing Date (the time of such filing, or such later time as may be specified
in the Certificate of Merger, being the “Effective Time”).
1.4 Effect
of the Merger. At the Effective Time, the effect of the Merger shall be as provided in this Agreement, the Certificate of Merger
and the applicable provisions of the DGCL. Without limiting the generality of the foregoing, and subject thereto, at the Effective Time,
all the property, rights, privileges, agreements, powers and franchises, debts, Liabilities, duties and obligations of Merger Sub and
the Company shall become the property, rights, privileges, agreements, powers and franchises, debts, Liabilities, duties and obligations
of the Surviving Corporation, which shall include the assumption by the Surviving Corporation of any and all agreements, covenants, duties
and obligations of Merger Sub and the Company set forth in this Agreement to be performed after the Effective Time.
1.5 Tax
Treatment. For U.S. federal income tax purposes, each of the Conversion and Merger is intended to constitute a “reorganization”
within the meaning of Section 368 of the Code. The Parties adopt this Agreement as a “plan of reorganization” within the
meaning of Sections 1.368-2(g) and 1.368-3(a) of the United States Treasury Regulations.
1.6 Certificate
of Incorporation and Bylaws of the Surviving Corporation. At the Effective Time, the Certificate of Incorporation and Bylaws of Merger
Sub, as in effect immediately prior to the Effective Time, shall become the Certificate of Incorporation and Bylaws of the Surviving
Corporation, except for the name of the Surviving Corporation in such Certificate of Incorporation and Bylaws shall be amended to be
Korai Flix, Inc.
1.7 Directors
and Officers of the Surviving Corporation. At the Effective Time, the board of directors and executive officers of the Surviving
Corporation shall be the board of directors and executive officers of the Company, each to hold office in accordance with the Certificate
of Incorporation and Bylaws of the Surviving Corporation until their respective successors are duly elected or appointed and qualified
or their earlier death, resignation or removal.
1.8 Merger
Consideration. As consideration for the Merger, the Company Security Holders collectively shall be entitled to receive from the Purchaser,
in the aggregate, a number of Purchaser Common Stock (after giving effect to the Conversion) with an aggregate value equal to three billion,
five hundred million dollars ($3,500,000,000), the “Merger Consideration” or “Stockholder Merger
Consideration”), and such shares the “Merger Consideration Shares”), with each share of Purchaser
Common Stock valued at $10.00. The Merger Consideration Shares shall be divided into (i) a number of shares of Purchaser Class A Common
Stock (the “Class A Merger Consideration Shares”) equal to product of the number of Merger Consideration Shares multiplied
by a fraction equal to (A) the total number of shares of Company Class A Common Stock issued and outstanding immediately prior to the
Effective Time divided by (B) the total number of shares of Company Common Stock issued and outstanding immediately prior to the Effective
Time, and (ii) a number of shares of Purchaser Class B Common Stock (the “Class B Merger Consideration Shares”) equal to
product of the number of Merger Consideration Shares multiplied by a fraction equal to (A) the total number of shares of Company Class
B Common Stock issued and outstanding immediately prior to the Effective Time divided by (B) the total number of shares of Company Common
Stock issued and outstanding immediately prior to the Effective Time.
3
1.9 Effect
of Merger on Company Securities. 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 Securities or the holders of any shares of capital stock of the Purchaser or Merger Sub:
(a)
Company Stock. Subject to Section 1.9(b) below,
(i)
Each Company Stockholder will receive for its shares of Company Class A Common Stock held immediately prior to the Effective Time (other
than any Dissenting Shares), a number of shares of Purchaser Class A Common Stock equal to its Class A Pro Rata Share of the aggregate
Class A Merger Consideration Shares, without interest, upon delivery of the Transmittal Documents in accordance with Section
1.10; and
(ii)
Each Company Stockholder will receive for its shares of Company Class B Common Stock held immediately prior to the Effective Time (other
than any Dissenting Shares), a number of shares of Purchaser Class B Common Stock equal to its Class B Pro Rata Share of the aggregate
Class B Merger Consideration Shares, without interest, upon delivery of the Transmittal Documents in accordance with Section
1.10.
As
of the Effective Time, each Company Stockholder shall cease to have any other rights in and to the Company or the Surviving Corporation
(other than the rights set forth in Section 1.13
below).
(b)
Treasury Stock. Notwithstanding Section
1.9(a) above or any other provision of this Agreement to the contrary, at the Effective Time,
if there are any Company Securities that are owned by the Company as treasury shares or any Company Securities owned by any direct or
indirect Subsidiary of the Company immediately prior to the Effective Time, such Company Securities shall be canceled and shall cease
to exist without any conversion thereof or payment therefor.
(c) Dissenting
Shares. Each of the Dissenting Shares issued and outstanding immediately prior to the Effective Time shall be cancelled and cease
to exist in accordance with Section 1.13 and shall thereafter represent only the right to receive the applicable payments set
forth in Section 1.13.
(d)
Bonus Shares. At the Effective Time, the Purchaser shall issue to the Company Representative, in addition to such Merger Consideration
as the Company Representative may be entitled to in accordance with Section
1.8 of this Agreement, an aggregate of 35,000 Purchaser Class A Common Stocks, free and clear
of all liens, other than restrictions arising under applicable securities Laws or the Amended Purchaser Organizational Documents, in
exchange of further consideration.
(e) Notwithstanding
anything to the contrary contained herein, no fraction of a share of Purchaser 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 Purchaser Common Stock
(after aggregating all fractional shares of Purchaser Common Stock that otherwise would be received by such holder) shall instead have
the number of shares of Purchaser Common Stock issued to such Person rounded in the aggregate up to the nearest whole share of Purchaser
Common Stock.
4
1.10 Surrender
of Company Securities and Disbursement of Merger Consideration.
(a) Prior
to the Effective Time, the Purchaser shall appoint its transfer agent, Continental Stock Transfer & Trust Company, or another agent
reasonably acceptable to the Company (the “Exchange Agent”), for the purpose of exchanging the certificates
representing Company Common Stock (“Company Certificates”). At or prior to the Effective Time, the Purchaser
shall deposit, or cause to be deposited, with the Exchange Agent the Stockholder Merger Consideration. At or prior to the Effective Time,
the Purchaser shall send, or shall cause the Exchange Agent to send, to each Company Stockholder, a letter of transmittal for use in
such exchange, in a form to be mutually agreed between Purchaser and the Company (a “Letter of Transmittal”)
(which shall specify that the delivery of Company Certificates in respect of the Stockholder Merger Consideration shall be effected,
and risk of loss and title shall pass, only upon proper delivery of the Company Certificates to the Exchange Agent (or a Lost Certificate
Affidavit)) for use in such exchange.
(b) Each
Company Stockholder shall be entitled to receive its Pro Rata Share of the Stockholder Merger Consideration in respect of the Company
Common Stock represented by its Company Certificate(s) (excluding any Company Securities described in Sections 1.9(b) or 1.9(c)),
as soon as reasonably practicable after the Effective Time, but subject to the delivery to the Exchange Agent of the following items
prior thereto (collectively, the “Transmittal Documents”): (i) the Company Certificate(s) for its Company Common
Stock (or a Lost Certificate Affidavit), together with a properly completed and duly executed Letter of Transmittal and (ii) such other
documents as may be reasonably requested by the Exchange Agent or the Purchaser. Until so surrendered, each Company Certificate shall
represent after the Effective Time for all purposes only the right to receive such portion of the Stockholder Merger Consideration attributable
to such Company Certificate.
(c) If
any portion of the Stockholder Merger Consideration is to be delivered or issued to a Person other than the Person in whose name the
surrendered Company Certificate is registered immediately prior to the Effective Time, it shall be a condition to such delivery that
(i) the transfer of such Company Common Stock shall have been permitted in accordance with the terms of the Company’s Organizational
Documents and any stockholders agreement with respect to the Company, each as in effect immediately prior to the Effective Time, (ii)
such Company Certificate shall be properly endorsed or shall otherwise be in proper form for transfer and, (iii) the recipient of such
portion of the Stockholder Merger Consideration, the Person in whose name such portion of the Stockholder Merger Consideration is delivered
or issued, shall have already executed and delivered, if a Significant Company Holder, counterparts to a Lock-Up Agreement, and such
other Transmittal Documents as are reasonably deemed necessary by the Exchange Agent or the Purchaser and (iv) the Person requesting
such delivery shall pay to the Exchange Agent any transfer or other Taxes required as a result of such delivery to a Person other than
the registered holder of such Company Certificate or establish to the satisfaction of the Exchange Agent that such Tax has been paid
or is not payable.
(d) Notwithstanding
anything to the contrary contained herein, in the event that any Company Certificate shall have been lost, stolen or destroyed, in lieu
of delivery of a Company Certificate to the Exchange Agent, the Company Stockholder may instead deliver to the Exchange Agent an affidavit
of lost certificate and indemnity of loss in form and substance reasonably acceptable to the Purchaser (a “Lost Certificate
Affidavit”), which at the reasonable discretion of the Purchaser may include a requirement that the owner of such lost,
stolen or destroyed Company Certificate deliver a bond in such sum as it may reasonably direct as indemnity against any claim that may
be made against the Purchaser or the Surviving Corporation with respect to the shares of Company Common Stock represented by the Company
Certificates alleged to have been lost, stolen or destroyed. Any Lost Certificate Affidavit properly delivered in accordance with this
Section 1.10(d) shall be treated as a Company Certificate for all purposes of this Agreement.
5
(e) After
the Effective Time, there shall be no further registration of transfers of Company Stock. If, after the Effective Time, Company Certificates
are presented to the Surviving Corporation, the Purchaser or the Exchange Agent, they shall be canceled and exchanged for the applicable
portion of the Stockholder Merger Consideration provided for, and in accordance with the procedures set forth in this Section 1.10.
No dividends or other distributions declared or made after the date of this Agreement with respect to Purchaser Common Stock with a record
date after the Effective Time will be paid to the holders of any Company Certificates that have not yet been surrendered with respect
to the Purchaser Common Stock to be issued upon surrender thereof until the holders of record of such Company Certificates shall surrender
such certificates (or provide a Lost Certificate Affidavit), if applicable, and provide the other Transmittal Documents. Subject to applicable
Law, following surrender of any such Company Certificates (or delivery of a Lost Certificate Affidavit), if applicable, and delivery
of the other Transmittal Documents, Purchaser shall promptly deliver to the record holders thereof, without interest, the certificates
representing the Purchaser Common Stock issued in exchange therefor and the amount of any such dividends or other distributions with
a record date after the Effective Time theretofore paid with respect to such Purchaser Common Stock.
(f) All
securities issued upon the surrender of Company Securities in accordance with the terms hereof shall be deemed to have been issued in
full satisfaction of all rights pertaining to such Company Securities. Any portion of the Stockholder Merger Consideration made available
to the Exchange Agent pursuant to Section 1.10(a) that remains unclaimed by Company Stockholders two (2) years after the Effective
Time shall be returned to the Purchaser, upon demand, and any such Company Stockholder who has not exchanged its Company Common Stock
for the applicable portion of the Stockholder Merger Consideration in accordance with this Section 1.10 prior to that time shall
thereafter look only to the Purchaser for payment of the portion of the Stockholder Merger Consideration in respect of such shares of
Company Common Stock without any interest thereon (but with any dividends paid with respect thereto). Notwithstanding the foregoing,
none of the Surviving Corporation, the Purchaser or any Party hereto shall be liable to any Person for any amount properly paid to a
public official pursuant to any applicable abandoned property, escheat or similar law.
1.11 Effect
of Transaction on 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 Securities or the holders of any shares of capital stock of the Purchaser or Merger Sub, each share of
Merger Sub Common Stock outstanding immediately prior to the Effective Time shall be converted into one share of common stock of the
Surviving Corporation, with the same rights, powers and privileges as the shares so converted and in aggregate shall constitute the only
outstanding shares of capital stock of the Surviving Corporation.
1.12 Taking
of Necessary Action; Further Action. If, at any time after the Effective Time, any further action is necessary or desirable to carry
out the purposes of this Agreement and to vest the Surviving Corporation with full right, title and possession to all assets, property,
rights, privileges, powers and franchises of the Company and Merger Sub, the officers and directors of the Company and Merger Sub are
fully authorized in the name of their respective corporations or otherwise to take, and will take, all such lawful and necessary action,
so long as such action is not inconsistent with this Agreement.
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1.13 Appraisal
and Dissenter’s Rights. No Company Stockholder who has validly exercised its appraisal rights pursuant to Section 262 of the
DGCL (a “Dissenting Stockholder”) with respect to its Company Common Stock(such shares, “Dissenting
Shares”) shall be entitled to receive any portion of the Stockholder Merger Consideration with respect to the Dissenting
Shares owned by such Dissenting Stockholder unless and until such Dissenting Stockholder shall have effectively withdrawn or lost its
appraisal rights under the DGCL. Each Dissenting Stockholder shall be entitled to receive only the payment resulting from the procedure
set forth in Section 262 of the DGCL with respect to the Dissenting Shares owned by such Dissenting Stockholder. The Company shall (i)
give the Purchaser and the Purchaser Representative prompt notice of any written demands for appraisal, attempted withdrawals of such
demands, and any other instruments served pursuant to applicable Laws that are received by the Company relating to any Dissenting Stockholder’s
rights of appraisal and (ii) shall direct all negotiations and proceedings with respect to demand for appraisal under the DGCL, except
that without the prior written consent of the Purchaser Representative (which consent shall not be unreasonably withheld), voluntarily
make any payment with respect to any demands for appraisal, offer to settle or settle any such demands or approve any withdrawal of any
such demands. Notwithstanding anything to the contrary contained in this Agreement, for all purposes of this Agreement, the Stockholder
Merger Consideration shall be reduced by the Pro Rata Share of any Dissenting Stockholders attributable to any Dissenting Shares and
the Dissenting Stockholders shall have no rights to any portion of the Stockholder Merger Consideration with respect to any Dissenting
Shares.
Article
II
CLOSING
2.1 Closing.
Subject to the satisfaction or waiver of the conditions set forth in Article VI, the consummation of the transactions contemplated
by this Agreement (the “Closing”) shall take place electronically, through the exchange of documents via electronic
mail or facsimile, on a date and at a time to be agreed upon by Purchaser and the Company, which date shall be no later than the second
(2nd) Business Day after all the Closing conditions to this Agreement have been satisfied or waived, or at such other date,
time or place (including remotely) as the Purchaser and the Company may agree (the date and time at which the Closing is actually held
being the “Closing Date”).
Article
III
REPRESENTATIONS
AND WARRANTIES OF THE PURCHASER PARTIES
Except
as set forth in (i) the disclosure schedules delivered by the Purchaser to the Company on the date hereof (the “Purchaser
Disclosure Schedules”), the Section numbers of which are numbered to correspond to the Section numbers of this Agreement
to which they refer, or (ii) the SEC Reports that are available on the SEC’s website through EDGAR, each of the Purchaser Parties
represent and warrant to the Company, as of the date hereof and as of the Closing, as follows:
3.1 Organization
and Standing. The Purchaser is a company duly incorporated, validly existing and in good standing under the Laws of the Cayman Islands.
Merger Sub is a company duly incorporated, validly existing and in good standing under the Laws of the State of Delaware. Each of the
Purchaser Parties has all requisite corporate power and authority to own, lease and operate its properties and to carry on its business
as now being conducted. The Purchaser Parties are each duly qualified or licensed and in good standing to do business in each jurisdiction
in which the character of the property owned, leased or operated by it or the nature of the business conducted by it makes such qualification
or licensing necessary. The Purchaser has heretofore made available to the Company accurate and complete copies of each of the Purchaser
Parties’ Organizational Documents, as currently in effect. Neither of the Purchaser Parties is in violation of any provision of
its Organizational Documents in any material respect.
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3.2 Authorization;
Binding Agreement. Each of the Purchaser Parties has all requisite corporate power and authority to execute and deliver this Agreement
and each Ancillary Document to which it is a party, to perform its obligations hereunder and thereunder and to consummate the transactions
contemplated hereby and thereby, subject to obtaining the Required Purchaser Shareholder Approval. Purchaser, as the sole stockholder
of Merger Sub, has authorized, or will authorize immediately after the execution of this Agreement, the execution, delivery and performance
of this Agreement and the Ancillary Documents by and on behalf of Merger Sub and the consummation of the Merger and the other transactions
contemplated by this Agreement. The execution and delivery of this Agreement and each Ancillary Document to which it is a party and the
consummation of the transactions contemplated hereby and thereby (a) have been duly and validly authorized by the board of directors
of each of the Purchaser Parties, and (b) other than the Required Purchaser Shareholder Approval, no other corporate proceedings, other
than as set forth elsewhere in the Agreement, on the part of the Purchaser Parties is necessary to authorize the execution and delivery
of this Agreement and each Ancillary Document to which it is a party or to consummate the transactions contemplated hereby and thereby.
This Agreement has been, and each Ancillary Document to which the Purchaser Parties are a party shall be when delivered, duly and validly
executed and delivered by the Purchaser Parties and, assuming the due authorization, execution and delivery of this Agreement and such
Ancillary Documents by the other parties hereto and thereto, constitutes, or when delivered shall constitute, the valid and binding obligation
of the Purchaser Parties, enforceable against each of the Purchaser Parties in accordance with its terms, except to the extent that enforceability
thereof may be limited by applicable bankruptcy, insolvency, reorganization and moratorium laws and other laws of general application
affecting the enforcement of creditors’ rights generally or by any applicable statute of limitation or by any valid defense of
set-off or counterclaim, and the fact that equitable remedies or relief (including the remedy of specific performance) are subject to
the discretion of the court from which such relief may be sought (collectively, the “Enforceability Exceptions”).
3.3 Governmental
Approvals. Except as otherwise described in Schedule 3.3, no Consent of or with any Governmental Authority, on the part of
each of the Purchaser Parties is required to be obtained or made in connection with the execution, delivery or performance by the Purchaser
Parties of this Agreement and each Ancillary Document to which it is a party or the consummation by the Purchaser Parties of the transactions
contemplated hereby and thereby, other than (a) pursuant to Antitrust Laws, (b) such filings as contemplated by this Agreement, (c) any
filings required with The New York Stock Exchange (“NYSE”) or the SEC with respect to the transactions contemplated by this
Agreement, (d) applicable requirements, if any, of the Securities Act, the Exchange Act, and/ or any state “blue sky” securities
Laws, and the rules and regulations thereunder, and (e) where the failure to obtain or make such Consents or to make such filings or
notifications, would not reasonably be expected to have a Material Adverse Effect on the Purchaser Parties.
3.4 Non-Contravention.
Except as otherwise described in Schedule 3.4, the execution and delivery by the Purchaser Parties of this Agreement and each
Ancillary Document to which each is a party, the consummation by the Purchaser Parties of the transactions contemplated hereby and thereby,
and compliance by the Purchaser Parties with any of the provisions hereof and thereof, will not (a) conflict with or violate any provision
of each of the Purchaser Parties’ Organizational Documents, (b) subject to obtaining the Consents from Governmental Authorities
referred to in Section 3.3 hereof, and the waiting periods referred to therein having expired, and any condition precedent to
such Consent or waiver having been satisfied, conflict with or violate any Law, Order or Consent applicable to each of the Purchaser
Parties or any of its properties or assets, or (c) (i) violate, conflict with or result in a breach of, (ii) constitute a default (or
an event which, with notice or lapse of time or both, would constitute a default) under, (iii) result in the termination, withdrawal,
suspension, cancellation or modification of, (iv) accelerate the performance required by the Purchaser Parties under, (v) result in a
right of termination or acceleration under, (vi) give rise to any obligation to make payments or provide compensation under, (vii) result
in the creation of any Lien upon any of the properties or assets of the Purchaser Parties under, (viii) give rise to any obligation to
obtain any third party Consent or provide any notice to any Person or (ix) give any Person the right to declare a default, exercise any
remedy, claim a rebate, chargeback, penalty or change in delivery schedule, accelerate the maturity or performance, cancel, terminate
or modify any right, benefit, obligation or other term under, any of the terms, conditions or provisions of, any Purchaser Material Contract,
except for any deviations from any of the foregoing clauses (a), (b) or (c) that would not reasonably be expected to have a Material
Adverse Effect on either of the Purchaser Parties.
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3.5 Capitalization.
(a) Purchaser
is authorized to issue 600,000,000 Purchaser Ordinary Shares. The issued and outstanding Purchaser Securities as of the date of this
Agreement are set forth on Schedule 3.5(a). All outstanding Purchaser Ordinary Shares are duly authorized, validly issued, fully
paid and non-assessable and are not subject to or issued in violation of any purchase option, right of first refusal, preemptive right,
subscription right or any similar right under any provision of the Companies Act, Purchaser’s Organizational Documents or any Contract
to which Purchaser is a party. None of the outstanding Purchaser Securities has been issued in violation of any applicable securities
Laws.
(b) As
of the date of this Agreement, and immediately prior to the Effective Time, Merger Sub is authorized to issue 1,000 shares of Merger
Sub Common Stock, of which 1,000 shares are issued and outstanding, and all of which are owned by the Purchaser and Merger Sub has no
other authorized, issued or outstanding shares of capital stock. All of the issued and outstanding shares of Merger Sub Common Stock
have been duly authorized and validly issued, and are fully paid and non-assessable. No Person other than Purchaser has any rights with
respect to such equity securities of Merger Sub and no such rights will arise by virtue of or in connection with the Merger and the other
transactions contemplated by this Agreement. Prior to giving effect to the transactions contemplated by this Agreement, other than Merger
Sub, Purchaser does not have any Subsidiaries or own any equity interests in any other Person.
(c) Except
as set forth in Schedule 3.5(a) or Schedule 3.5(c) there are no (i) outstanding options, warrants, puts, calls, convertible
securities, preemptive or similar rights, (ii) bonds, debentures, notes or other Indebtedness having general voting rights or that are
convertible or exchangeable into securities having such rights or (iii) subscriptions or other rights, agreements, arrangements, Contracts
or commitments of any character (other than this Agreement and the Ancillary Documents), (A) relating to the issued or unissued shares
of Purchaser or Merger Sub or (B) obligating Purchaser or Merger Sub to issue, transfer, deliver or sell or cause to be issued, transferred,
delivered, sold or repurchased any options or shares or securities convertible into or exchangeable for such shares, or (C) obligating
Purchaser or Merger Sub to grant, extend or enter into any such option, warrant, call, subscription or other right, agreement, arrangement
or commitment for such capital shares. Other than the Redemption or as expressly set forth in this Agreement, there are no outstanding
obligations of Purchaser or Merger Sub to repurchase, redeem or otherwise acquire any shares of Purchaser or Merger Sub or to provide
funds to make any investment (in the form of a loan, capital contribution or otherwise) in any Person. Except as set forth in Schedule
3.5(c), there are no shareholders agreements, voting trusts or other agreements or understandings to which Purchaser or Merger Sub
is a party with respect to the voting of any shares of Purchaser or Merger Sub.
(d) All
Indebtedness of Purchaser and Merger Sub as of the date of this Agreement is disclosed on Schedule 3.5(d). No Indebtedness of
Purchaser or Merger Sub contains any restriction upon (i) the prepayment of any of such Indebtedness, (ii) the incurrence of Indebtedness
by Purchaser or Merger Sub or (iii) the ability of Purchaser or Merger Sub to grant any Lien on its properties or assets.
(e) Since
the date of formation of Purchaser and Merger Sub, and except as contemplated by this Agreement, neither Purchaser nor Merger Sub has
declared or paid any distribution or dividend in respect of its shares and has not repurchased, redeemed or otherwise acquired any of
its shares, and each of its board of directors has not authorized any of the foregoing.
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3.6 SEC
Filings and Purchaser Financials.
(a) The
Purchaser, since the IPO, has filed all forms, reports, schedules, statements, registration statements, prospectuses and other documents
required to be filed or furnished by the Purchaser with the SEC under the Securities Act and/or the Exchange Act, together with any amendments,
restatements or supplements thereto, and will file all such forms, reports, schedules, statements and other documents required to be
filed subsequent to the date of this Agreement. Except to the extent available on the SEC’s web site through EDGAR, the Purchaser
has delivered to the Company copies in the form filed with the SEC of all of the following: (i) the Purchaser’s quarterly reports
on Form 10-Q for each fiscal quarter that the Purchaser filed such reports to disclose its quarterly financial results, (ii) all other
forms, reports, registration statements, prospectuses and other documents (other than preliminary materials) filed by the Purchaser with
the SEC (the forms, reports, registration statements, prospectuses and other documents referred to in clauses (i), and (ii) above, whether
or not available through EDGAR, are, collectively, the “SEC Reports”). The SEC Reports (x) were prepared in
all material respects in accordance with the requirements of the Securities Act and the Exchange Act, as the case may be, and the rules
and regulations thereunder and (y) did not, as of their respective effective dates (in the case of SEC Reports that are registration
statements filed pursuant to the requirements of the Securities Act) and at the time they were filed with the SEC (in the case of all
other SEC Reports) contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or
necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading.
As used in this Section 3.6, the term “file” shall be broadly construed to include any manner permitted by SEC rules
and regulations in which a document or information is furnished, supplied or otherwise made available to the SEC. As of the date of this
Agreement, (A) the Purchaser Ordinary Shares and the Purchaser Rights are listed on NYSE, (B) the Purchaser has not received any written
deficiency notice from NYSE relating to the continued listing requirements of such Purchaser Securities, (C) there are no Actions pending
or, to the Knowledge of the Purchaser, threatened against the Purchaser by the Financial Industry Regulatory Authority with respect to
any intention by such entity to suspend, prohibit or terminate the quoting of such Purchaser Securities on NYSE and (D) such Purchaser
Securities are in compliance with all of the applicable corporate governance rules of NYSE.
(b) The
financial statements contained in the SEC Reports (the “Purchaser Financials”), fairly present in all material
respects the financial position and the results of operations, changes in shareholders’ equity, and cash flows of the Purchaser
at the respective dates of and for the periods referred to in such financial statements, all in accordance with (i) GAAP methodologies
applied on a consistent basis throughout the periods involved and (ii) Regulation S-X or Regulation S-K, as applicable (except as may
be indicated in the notes thereto and for the omission of notes and audit adjustments in the case of unaudited quarterly financial statements
to the extent permitted by Regulation S-X or Regulation S-K, as applicable).
(c) Except
to the extent reflected or reserved against in the Purchaser Financials, the Purchaser has not incurred any Liabilities or obligations
of the type required to be reflected on a balance sheet in accordance with GAAP that are not adequately reflected or reserved on or provided
for in the Purchaser Financials, other than Liabilities of the type required to be reflected on a balance sheet in accordance with GAAP
that have been incurred since the Purchaser’s formation in the ordinary course of business.
(d) Purchaser
has established and maintains disclosure controls and procedures (as defined in Rule 13a-15 under the Exchange Act). Such disclosure
controls and procedures are designed to ensure that material information relating to Purchaser is made known to Purchaser’s principal
executive officer and its principal financial and accounting officer, particularly during the periods in which the periodic reports required
under the Exchange Act are being prepared. Such disclosure controls and procedures are effective in timely alerting Purchaser’s
principal executive officer and principal financial and accounting officer to material information required to be included in Purchaser’s
periodic reports required under the Exchange Act.
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(e) Purchaser
has established and maintained a system of internal controls sufficient to provide reasonable assurance regarding the reliability of
Purchaser’s financial reporting and the preparation of the Purchaser’s financial statements for external purposes in accordance
with GAAP.
(f)
Purchaser has prior to the date hereof furnished to the Company complete and correct copies of all material amendments and modifications
that have not been filed by Purchaser with the SEC to all agreements, documents and other instruments that previously had been filed
by Purchaser with the SEC and are currently in effect.
3.7 Absence
of Certain Changes. As of the date of this Agreement, except as set forth in Schedule 3.7, the Purchaser has, (a) since its
formation, conducted no business other than its formation, the public offering of its securities (and the related private offerings),
public reporting and its search for an initial Business Combination as described in the IPO Prospectus (including the investigation of
the Target Companies and the negotiation and execution of this Agreement) and related activities, (b) since May 31, 2026, not been subject
to a Material Adverse Effect on the Purchaser, and (c) since May 31, 2026 not taken any action or committed or agreed to take any action
that would be prohibited by Section 5.3.
3.8 Compliance
with Laws. Each of the Purchaser Parties is, and has since its formation been, in compliance with all Laws applicable to it and the
conduct of its business except for such noncompliance which would not reasonably be expected to have a Material Adverse Effect on it,
and neither of the Purchaser Parties has received written notice alleging any violation of applicable Law in any material respect by
either of the Purchaser Parties.
3.9 Actions;
Orders; Permits. There is no pending or, to the Knowledge of the Purchaser, threatened material Action to which the Purchaser is
subject which would reasonably be expected to have a Material Adverse Effect on the Purchaser. There is no material Action that the Purchaser
has pending against any other Person. The Purchaser is not subject to any material Orders of any Governmental Authority, nor are any
such Orders pending. The Purchaser holds all material Permits necessary to lawfully conduct its business as presently conducted, and
to own, lease and operate its assets and properties, all of which are in full force and effect, except where the failure to hold such
Consent or for such Consent to be in full force and effect would not reasonably be expected to have a Material Adverse Effect on the
Purchaser.
3.10 Taxes
and Returns.
(a) Each
of the Purchaser Parties has timely filed, or will cause to be timely filed, all material Tax Returns required to be filed by it, which
such Tax Returns are accurate and complete in all material respects, and has paid, collected or withheld, or caused to be paid, collected
or withheld, all material Taxes required to be paid, collected or withheld, other than such Taxes for which adequate reserves in the
Purchaser Financials have been established in accordance with GAAP. Schedule 3.10(a) sets forth each jurisdiction where the Purchaser
Parties file or are required to file a Tax Return. Each of the Purchaser Parties has complied in all material respect with all applicable
Laws relating to Taxes. There are no audits, examinations, investigations or other proceedings pending against the Purchaser Parties
in respect of any Tax, and neither of the Purchaser Parties has been notified in writing of any proposed Tax claims or assessments against
it (other than, in each case, claims or assessments for which adequate reserves in the Purchaser Financials have been established in
accordance with GAAP or are immaterial in amount). There are no Liens with respect to any Taxes upon any of the Purchaser Parties’
assets, other than Permitted Liens. Neither of the Purchaser Parties has any outstanding waivers or extensions of any applicable statute
of limitations to assess any material amount of Taxes. There are no outstanding requests by the Purchaser Parties for any extension of
time within which to file any Tax Return or within which to pay any Taxes shown to be due on any Tax Return.
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(b) Since
the date of its formation, neither of the Purchaser Parties has (i) changed any Tax accounting methods, policies or procedures except
as required by a change in Law, (ii) made, revoked, or amended any material Tax election, (iii) filed any amended Tax Returns or claim
for refund or (iv) entered into any closing agreement affecting or otherwise settled or compromised any material Tax Liability or refund.
(c) There
is no Action currently pending or threatened against either of the Purchaser Parties by a Governmental Authority in a jurisdiction where
it does not file Tax Returns that it is or may be subject to taxation by that jurisdiction or that it is or may be required to file Tax
Returns in such jurisdiction.
(d)
Each of the Purchaser Parties has collected or withheld all Taxes currently 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.
(e) Neither
of the Purchaser Parties has participated in, or sold, distributed or otherwise promoted, any “reportable transaction,” as
defined in Treasury regulation section 1.6011-4.
(f) Neither
of the Purchaser Parties has any Liability for the Taxes of another Person (i) under any applicable Tax Law, (ii) as a transferee or
successor, or (iii) by contract, indemnity or otherwise (excluding commercial agreements entered into in the ordinary course of business
the primary purpose of which was not the sharing of Taxes). Neither of the Purchaser Parties is a party to or bound by any Tax indemnity
agreement, Tax sharing agreement or Tax allocation agreement or similar agreement, arrangement or practice (excluding commercial agreements
entered into in the ordinary course of business the primary purpose of which was not the sharing of Taxes) with respect to Taxes (including
advance pricing agreement, closing agreement or other agreement relating to Taxes with any Governmental Authority) that will be binding
on it with respect to any period following the Closing.
(g)
Neither of the Purchaser Parties has requested, or is it the subject of or bound by any private letter ruling, technical advice memorandum,
closing agreement or similar ruling, memorandum or agreement with any Governmental Authority with respect to any Taxes, nor is any such
request outstanding.
(h)
Neither of the Purchaser Parties is aware of any fact or circumstance that would reasonably be expected to prevent the Merger from qualifying
as a transaction described in Section 368 of the Code.
3.11 Employees
and Employee Benefit Plans. Except as disclosed in the SEC Reports, neither of the Purchaser Parties (a) have any paid employees
or (b) maintain, sponsor, contribute to or otherwise have any Liability under, any Benefit Plans.
3.12 Properties.
Neither of the Purchaser Parties own, license or otherwise have any right, title or interest in any material Intellectual Property. The
Purchaser Parties do not own or lease any material real property or material Personal Property.
3.13 Material
Contracts.
(a) Except
as set forth on Schedule 3.13(a), other than this Agreement and the Ancillary Documents, there are no Contracts to which the Purchaser
is a party or by which any of its properties or assets may be bound, subject or affected, which (i) creates or imposes a Liability greater
than $75,000, (ii) may not be cancelled by the Purchaser on less than sixty (60) days’ prior notice without payment of a material
penalty or termination fee or (iii) prohibits, prevents, restricts or impairs in any material respect any business practice of the Purchaser
as its business is currently conducted, any acquisition of material property by the Purchaser, or restricts in any material respect the
ability of the Purchaser to engage in business as currently conducted by it or compete with any other Person (each, a “Purchaser
Material Contract”). All Purchaser Material Contracts have been made available to the Company other than those that are
exhibits to the SEC Reports.
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(b) With
respect to each Purchaser Material Contract: (i) the Purchaser Material Contract was entered into at arms’ length and in the ordinary
course of business; (ii) the Purchaser Material Contract is legal, valid, binding and enforceable in all material respects against the
Purchaser and, to the Knowledge of the Purchaser, the other parties thereto, and is in full force and effect (except, in each case, as
such enforcement may be limited by the Enforceability Exceptions); (iii) the Purchaser is not in breach or default in any material respect,
and no event has occurred that with the passage of time or giving of notice or both would constitute such a breach or default in any
material respect by the Purchaser, or permit termination or acceleration by the other party, under such Purchaser Material Contract;
and (iv) to the Knowledge of the Purchaser, no other party to any Purchaser Material Contract is in breach or default in any material
respect, and no event has occurred that with the passage of time or giving of notice or both would constitute such a breach or default
by such other party, or permit termination or acceleration by the Purchaser under any Purchaser Material Contract.
3.14 Transactions
with Affiliates. Schedule 3.14 sets forth a true, correct and complete list of the Contracts and arrangements that are in
existence as of the date of this Agreement under which there are any existing or future Liabilities or obligations between the Purchaser
and any (a) present or former director, officer or employee or Affiliate of the Purchaser, or any immediate family member of any of the
foregoing, or (b) record or beneficial owner of more than five percent (5%) of the Purchaser’s outstanding capital stock as of
the date hereof.
3.15 Merger
Sub Activities. Since its formation, Merger Sub has not engaged in any business activities other than as contemplated by this Agreement,
does not own directly or indirectly any ownership, equity, profits or voting interest in any Person and has no assets or Liabilities
except those incurred in connection with this Agreement and the Ancillary Documents to which it is a party and the Transactions, and,
other than this Agreement and the Ancillary Documents to which it is a party, Merger Sub is not party to or bound by any Contract.
3.16 Investment
Company Act. The Purchaser is not an “investment company” or a Person directly or indirectly “controlled”
by or acting on behalf of an “investment company”, or required to register as an “investment company”, in each
case within the meaning of the Investment Company Act of 1940, as amended.
3.17 Finders
and Brokers. Except as set forth on Schedule 3.17, no broker, finder or investment banker is entitled to any brokerage, finder’s
or other fee or commission from the Purchaser, the Target Companies or any of their respective Affiliates in connection with the transactions
contemplated hereby based upon arrangements made by or on behalf of the Purchaser.
3.18 Ownership
of Stockholder Merger Consideration. All shares of Purchaser Common Stock to be issued and delivered to the Company Stockholders
as Stockholder Merger Consideration in accordance with Article I shall be, upon issuance and delivery of such Purchaser Common
Stock, fully paid and non-assessable, free and clear of all Liens, other than restrictions arising from applicable securities Laws, any
applicable Lock-Up Agreement, and any Liens incurred by any Company Stockholder, and the issuance and sale of such Purchaser Common Stock
pursuant hereto will not be subject to or give rise to any preemptive rights or rights of first refusal.
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3.19 Purchaser
Parties Activities. Since its formation Purchaser has not engaged in any activities other than activities relating to the pursuit
of a Business Combination and related financing activities and its reporting obligations with the SEC and NYSE and Merger Sub has not
engaged in any business activities other than as contemplated by this Agreement, neither does Purchaser Party own directly or indirectly
any ownership, equity, profits or voting interest in any Person (other than Purchaser’s 100% ownership of Merger Sub) and Merger
Sub has no assets or Liabilities except those incurred in connection with this Agreement and the Ancillary Documents to which they are
a party and the Merger and the other transactions contemplated by this Agreement, and, other than this Agreement and the Ancillary Documents
to which it is a party, Merger Sub is not a party to or bound by any Contract.
3.20 Certain
Business Practices.
(a) Neither
of the Purchaser Parties, nor any Representatives acting on its behalf, has (i) used any funds for unlawful contributions, gifts, entertainment
or other unlawful expenses relating to political activity, (ii) made any unlawful payment to foreign or domestic government officials
or employees, to foreign or domestic political parties or campaigns or violated any provision of the U.S. Foreign Corrupt Practices Act
of 1977 or any other local or foreign anti-corruption or bribery Law, (iii) made any other unlawful payment or (iv) since the formation
of each of the Purchaser Parties, directly or indirectly, given or agreed to give any unlawful gift or similar benefit in any material
amount to any customer, supplier, governmental employee or other Person who is or may be in a position to help or hinder the Purchaser
Parties or assist it in connection with any actual or proposed transaction.
(b) The
operations of the Purchaser Parties are and have been conducted at all times in material compliance with money laundering statutes in
all applicable jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued,
administered or enforced by any Governmental Authority, and no Action involving the Purchaser Parties with respect to any of the foregoing
is pending or, to the Knowledge of the Purchaser, threatened.
(c) None
of the Purchaser Parties or any of its respective directors or officers, or, to the Knowledge of the Purchaser, any other Representative
acting on behalf of the Purchaser Parties is currently identified on the specially designated nationals or other blocked person list
or otherwise currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department
(“OFAC”), and neither of the Purchaser Parties has directly or indirectly, used any funds, or loaned, contributed
or otherwise made available such funds to any Subsidiary, joint venture partner or other Person, in connection with any sales or operations
in any other country sanctioned by OFAC or for the purpose of financing the activities of any Person currently subject to, or otherwise
in violation of, any U.S. sanctions administered by OFAC.
3.21 Insurance.
Schedule 3.21 lists all insurance policies (by policy number, insurer, coverage period, coverage amount, annual premium and type
of policy) held by each of the Purchaser Parties relating to it or its business, properties, assets, directors, officers and employees,
copies of which have been provided to the Company. All premiums due and payable under all such insurance policies have been timely paid
and each of the Purchaser Parties is otherwise in material compliance with the terms of such insurance policies. All such insurance policies
are in full force and effect, and to the Knowledge of the Purchaser, there is no threatened termination of, or material premium increase
with respect to, any of such insurance policies. There have been no insurance claims made by either of the Purchaser Parties. Each of
the Purchaser Parties has reported to its insurers all claims and pending circumstances that would reasonably be expected to result in
a claim, except where such failure to report such a claim would not be reasonably likely to have a Material Adverse Effect on the Purchaser
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3.22 Purchaser
Trust Account. As of August 31, 2026, the Trust Account has a balance of $116,695,840.92. Such monies are invested solely in United
States “government securities” within the meaning of Section 2(a)(16) of the Investment Company Act or money market funds
meeting certain conditions under Rule 2a-7 promulgated under the Investment Company Act, and held in trust pursuant to the Trust Agreement.
The Trust Agreement is valid and in full force and effect and enforceable in accordance with its terms and has not been amended or modified.
There are no separate agreements, side letters or other agreements that would cause the description of the Trust Agreement in the SEC
Reports to be inaccurate in any material respect and/or that would entitle any Person to any portion of the proceeds in the Trust Account
other than as provided therein. Except as provided in the Trust Agreement or as specified in the IPO Prospectus, prior to the Closing,
none of the funds held in the Trust Account may be released.
3.23 Information
Supplied. None of the information supplied or to be supplied by the Purchaser Parties for inclusion or incorporation by reference
in the Registration Statement, the Proxy Statement, the Signing Filing, the Closing Filing or any other filing with the SEC with respect
to the transactions contemplated by this Agreement will, when filed, made available, mailed or distributed, as the case may be, 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 under which they are made, not misleading. Notwithstanding the foregoing, the Purchaser
Parties make no representation or warranty with respect to any information supplied by or on behalf of the Company for inclusion therein.
3.24 No
Other Representations. Except for the representations and warranties expressly made by the Purchaser Parties in this Article III
(as modified by the Purchaser Disclosure Schedules) or as expressly set forth in an Ancillary Document, none of the Purchaser Parties
nor any other Person on any of their behalf makes any express or implied representation or warranty with respect to any of the Purchaser
Parties, the Purchaser Representative, the Purchaser Securities, the business of the Purchaser Parties, or the transactions contemplated
by this Agreement or any of the other Ancillary Documents, and the Purchaser Parties hereby expressly disclaim any other representations
or warranties, whether implied or made by the Purchaser Parties or any of their respective Representatives. Except for the representations
and warranties expressly made by the Purchaser Parties in this Article III (as modified by the Purchaser Disclosure Schedules)
or in an Ancillary Document, the Purchaser Parties hereby expressly disclaim all liability and responsibility for any representation,
warranty, projection, forecast, statement or information made, communicated or furnished (orally or in writing) to the Company, the Company
Representative or any of their respective Representatives (including any opinion, information, projection or advice that may have been
or may be provided to the Company, the Company Representative or any of their respective Representatives by any Representative of the
Purchaser Parties), including any representations or warranties regarding the probable success or profitability of the businesses of
the Purchaser Parties.
Article
IV
REPRESENTATIONS
AND WARRANTIES OF THE COMPANY
Except
as set forth in the disclosure schedules (the “Company Disclosure Schedules”), the Section numbers of which are numbered
to correspond to the Section numbers of this Agreement to which they refer, the Company hereby represents and warrants to the Purchaser,
as of the date hereof and as of the Closing, as follows:
4.1 Organization
and Standing. The Company is a corporation duly incorporated, validly existing and in good standing under the DGCL and has all requisite
corporate power and authority to own, lease and operate its properties and to carry on its business as now being conducted. Each Subsidiary
of the Company is a corporation or other entity duly formed, validly existing and in good standing under the Laws of its jurisdiction
of organization and has all requisite corporate power and authority to own, lease and operate its properties and to carry on its business
as now being conducted. Each Target Company is duly qualified or licensed and in good standing in the jurisdiction in which it is incorporated
or registered and in each other jurisdiction where it does business or operates to the extent that the character of the property owned,
or leased or operated by it or the nature of the business conducted by it makes such qualification or licensing necessary. Schedule
4.1 lists all jurisdictions in which any Target Company is qualified to conduct business and all names other than its legal name
under which any Target Company does business. The Company has provided to the Purchaser accurate and complete copies of its Organizational
Documents and the Organizational Documents of each of its Subsidiaries, each as amended to date and as currently in effect. No Target
Company is in violation of any provision of its Organizational Documents in any material respects.
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4.2 Authorization;
Binding Agreement. The Company has all requisite corporate power and authority to execute and deliver this Agreement and each Ancillary
Document to which it is or is required to be a party, to perform the Company’s obligations hereunder and thereunder and to consummate
the transactions contemplated hereby and thereby, subject to obtaining the Required Company Stockholder Approval. The execution and delivery
of this Agreement and each Ancillary Document to which the Company is or is required to be a party and the consummation of the transactions
contemplated hereby and thereby, (a) have been duly and validly authorized by the Company’s board of directors in accordance with
the Company’s Organizational Documents, the DGCL, any other applicable Law or any Contract to which the Company or any of its shareholders
is a party or by which it or its securities are bound and (b) other than the Required Company Stockholder Approval, no other corporate
proceedings on the part of the Company are necessary to authorize the execution and delivery of this Agreement and each Ancillary Document
to which it is a party or to consummate the transactions contemplated hereby and thereby. This Agreement has been, and each Ancillary
Document to which the Company is or is required to be a party shall be when delivered, duly and validly executed and delivered by the
Company and assuming the due authorization, execution and delivery of this Agreement and any such Ancillary Document by the other parties
hereto and thereto, constitutes, or when delivered shall constitute, the legal, valid and binding obligation of the Company, enforceable
against the Company in accordance with its terms, subject to the Enforceability Exceptions. The Company’s board of directors, by
resolutions duly adopted (i) determined that this Agreement and the Merger and the other transactions contemplated hereby are advisable,
fair to, and in the best interests of, the Company and its stockholders, (ii) approved this Agreement and the Merger and the other transactions
contemplated by this Agreement in accordance with the DGCL, (iii) directed that this Agreement be submitted to the Company’s stockholders
for adoption and (iv) resolved to recommend that the Company stockholders adopt this Agreement. The Voting Agreements delivered by the
Company include holders of Company Common Stockrepresenting at least the Required Company Stockholder Approval, and such Voting Agreements
are in full force and effect.
4.3 Capitalization.
(a) As
of the date of this Agreement, the Company is authorized to issue 5,000 shares of Company Common Stock, consisting of (i) 4,000 shares
of Company Class A Common Stock, and (ii) 1,000 shares of Company Class B Common Stock. Schedule 4.3(a) of the Company Disclosure
Schedule set forth the Company’s authorized and issued shares as of the date of this Agreement. Prior to giving effect to the transactions
contemplated by this Agreement, all of the issued and outstanding Company Common Stock and other equity interests of the Company are
set forth on Section 4.3(a) of the Company Disclosure Schedule, along with the beneficial and record owners thereof, all of which
shares and other equity interests are owned free and clear of any Liens other than those imposed under the Company Charter. All of the
outstanding shares and other equity interests of the Company have been duly authorized, are fully paid and non-assessable and not in
violation of any purchase option, right of first refusal, preemptive right, subscription right or any similar right under any provision
of the DGCL, any other applicable Law, the Company Charter or any Contract to which the Company is a party or by which it or its securities
are bound. The Company holds no shares or other equity interests of the Company in its treasury. None of the outstanding shares or other
equity interests of the Company were issued in violation of any applicable securities Laws.
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(b) Other
than as set forth on Section 4.3(b) of the Company Disclosure Schedule, there are no Company convertible securities, or preemptive
rights or rights of first refusal or first offer, nor are there any Contracts, commitments, arrangements or restrictions to which the
Company or, to the Knowledge of the Company, any of its stockholders is a party or bound relating to any equity securities of the Company,
whether or not outstanding. There are no outstanding or authorized equity appreciation, phantom equity or similar rights with respect
to the Company. Except as set forth on Schedule 4.3(b) of the Company Disclosure Schedule, there are no voting trusts, proxies,
shareholder agreements or any other agreements or understandings with respect to the voting of the Company’s equity interests.
Except as set forth in the Company Charter, there are no outstanding contractual obligations of the Company to repurchase, redeem or
otherwise acquire any equity interests or securities of the Company, nor has the Company granted any registration rights to any Person
with respect to the Company’s equity securities. All of the Company’s securities have been granted, offered, sold and issued
in compliance with all applicable securities Laws. As a result of and other than the consummation of the transactions contemplated by
this Agreement, no equity interests of the Company are issuable and no rights in connection with any interests, warrants, rights, options
or other securities of the Company accelerate or otherwise become triggered (whether as to vesting, exercisability, convertibility or
otherwise).
(c) Except
as disclosed in the Company Financials, since June 30, 2026, the Company has not declared or paid any distribution or dividend in respect
of its equity interests and has not repurchased, redeemed or otherwise acquired any equity interests of the Company, and the board of
directors of the Company has not authorized any of the foregoing.
4.4 Subsidiaries.
Schedule 4.4 sets forth the name of each Subsidiary of the Company, and with respect to each Subsidiary (a) its jurisdiction of
organization, (b) its authorized shares or other equity interests (if applicable), (c) the number of issued and outstanding shares or
other equity interests and the record holders and beneficial owners thereof and (d) its Tax election to be treated as a corporate or
a disregarded entity under the Code and any state or applicable non-U.S. Tax laws, if any. All of the outstanding equity securities of
each Subsidiary of the Company are duly authorized and validly issued, fully paid and non-assessable (if applicable), and were offered,
sold and delivered in compliance with all applicable securities Laws, and owned by one or more of the Company or its Subsidiaries free
and clear of all Liens (other than those, if any, imposed by such Subsidiary’s Organizational Documents). There are no Contracts
to which the Company or any of its Affiliates is a party or bound with respect to the voting (including voting trusts or proxies) of
the equity interests of any Subsidiary of the Company other than the Organizational Documents of any such Subsidiary. There are no outstanding
or authorized options, warrants, rights, agreements, subscriptions, convertible securities or commitments to which any Subsidiary of
the Company is a party or which are binding upon any Subsidiary of the Company providing for the issuance or redemption of any equity
interests of any Subsidiary of the Company. There are no outstanding equity appreciation, phantom equity, profit participation or similar
rights granted by any Subsidiary of the Company. No Subsidiary of the Company has any limitation, whether by Contract, Order or applicable
Law, on its ability to make any distributions or dividends to its equity holders or repay any debt owed to another Target Company. Except
for the equity interests of the Subsidiaries listed on Schedule 4.4, the Company does not own or have any rights to acquire, directly
or indirectly, any equity interests of, or otherwise Control, any Person. None of the Company or its Subsidiaries is a participant in
any joint venture, partnership or similar arrangement. There are no outstanding contractual obligations of the Company or its Subsidiaries
to provide funds to, or make any investment (in the form of a loan, capital contribution or otherwise) in, any other Person.
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4.5 Governmental
Approvals. Except as otherwise described in Schedule 4.5, no Consent of or with any Governmental Authority on the part of
any Target Company is required to be obtained or made in connection with the execution, delivery or performance by the Company of this
Agreement or any Ancillary Documents or the consummation by the Company of the transactions contemplated hereby or thereby other than
(a) such filings as are expressly contemplated by this Agreement or (b) pursuant to Antitrust Laws and (c) where the failure to obtain
or make such Consents or to make such filings or notifications, would not, individually or in the aggregate, reasonably be expected to
be material to the Company or materially impair the ability of the Company on a timely basis to consummate the transactions contemplated
by this Agreement or the Ancillary Documents to which it is a party or bound or to perform its obligations hereunder or thereunder.
4.6 Non-Contravention.
Except as otherwise described in Schedule 4.6, the execution and delivery by the Company (or any other Target Company, as applicable)
of this Agreement and each Ancillary Document to which any Target Company is or is required to be a party or otherwise bound, and the
consummation by any Target Company of the transactions contemplated hereby and thereby and compliance by any Target Company with any
of the provisions hereof and thereof, will not (a) conflict with or violate any provision of any Target Company’s Organizational
Documents, (b) subject to obtaining the Consents from Governmental Authorities referred to in Section 4.5 hereof, the waiting
periods referred to therein having expired, and any condition precedent to such Consent or waiver having been satisfied, conflict with
or violate any Law, Order or Consent applicable to any Target Company or any of its properties or assets, or (c) (i) violate, conflict
with or result in a breach of, (ii) constitute a default (or an event which, with notice or lapse of time or both, would constitute a
default) under, (iii) result in the termination, withdrawal, suspension, cancellation or modification of, (iv) accelerate the performance
required by any Target Company under, (v) result in a right of termination or acceleration under, (vi) give rise to any obligation to
make payments or provide compensation under, (vii) result in the creation of any Lien upon any of the properties or assets of any Target
Company under, (viii) give rise to any obligation to obtain any third party Consent or provide any notice to any Person or (ix) give
any Person the right to declare a default, exercise any remedy, claim a rebate, chargeback, penalty or change in delivery schedule, accelerate
the maturity or performance, cancel, terminate or modify any right, benefit, obligation or other term under, any of the terms, conditions
or provisions of any Company Material Contract, except for any deviations from any of the foregoing clauses (a), (b) or (c) that would
not, individually or in the aggregate, reasonably be expected to be material to any Target Company or materially impair the ability of
the Company on a timely basis to consummate the transactions contemplated by this Agreement or the Ancillary Documents to which it is
a party or bound or to perform its obligations hereunder or thereunder.
4.7 Financial
Statements.
(a) As
used herein, the term “Company Financials” means the unaudited consolidated financial statements of the Target
Companies (including, in each case, any related notes thereto), consisting of the consolidated balance sheets of the Target Companies
as of June 30, 2026 (the “Balance Sheet Date”) and June 30, 2025, and the related consolidated unaudited income statements,
changes in stockholder equity and statements of cash flows for the fiscal years then ended (the “Unaudited Company Financials”).
True and correct copies of the Company Financials have been provided to the Purchaser. The Unaudited Company Financials (i) reflect in
all material respects the books and records of the Target Companies as of the times and for the periods referred to therein, (ii) were
prepared in accordance with GAAP, consistently applied in all material respects throughout and among the periods involved , and (iii)
fairly present in all material respects the consolidated financial position of the Target Companies as of the respective dates thereof
and the consolidated results of the operations and cash flows of the Target Companies for the periods indicated . No Target Company has
ever been subject to the reporting requirements of Sections 13(a) and 15(d) of the Exchange Act.
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(b) Each
Target Company maintains accurate books and records reflecting its assets and Liabilities and maintains proper and adequate internal
accounting controls that provide reasonable assurance that (i) such Target Company does not maintain any off-the-book accounts and that
such Target Company’s assets are used only in accordance with such Target Company’s management directives, (ii) transactions
are executed with management’s authorization, (iii) transactions are recorded as necessary to permit preparation of the financial
statements of such Target Company and to maintain accountability for such Target Company’s assets, (iv) access to such Target Company’s
assets is permitted only in accordance with management’s authorization, (v) the reporting of such Target Company’s assets
is compared with existing assets at regular intervals and verified for actual amounts, and (vi) accounts, notes and other receivables
and inventory are recorded accurately, and proper and adequate procedures are implemented to effect the collection of accounts, notes
and other receivables on a current and timely basis. All of the financial books and records of the Target Companies are complete and
accurate in all material respects and have been maintained in the ordinary course consistent with past practice and in accordance with
applicable Laws. No Target Company has been subject to or involved in any material fraud that involves management or other employees
who have a significant role in the internal controls over financial reporting of any Target Company. Other than the material weaknesses
in the Company’s internal controls over financial reporting as may be identified by the Company’s auditors in connection
with the audit of the Company Financials, since January 1, 2026, no Target Company or its Representatives has received any written complaint,
allegation, assertion or claim regarding the accounting or auditing practices, procedures, methodologies or methods of any Target Company
or its internal accounting controls, including any material written complaint, allegation, assertion or claim that any Target Company
has engaged in questionable accounting or auditing practices.
(c) Except
as disclosed on Section 4.7(c) of the Company Disclosure Schedule, no Indebtedness of any Target Company contains any restriction
upon (i) the prepayment of any of such Indebtedness, (ii) the incurrence of Indebtedness by any Target Company, or (iii) the ability
of the Target Companies to grant any Lien on their respective properties or assets.
(d) Except
as set forth on Section 4.7(d) of the Company Disclosure Schedule, no Target Company is subject to any Liabilities, Indebtedness,
or obligations (whether or not required to be reflected on a balance sheet prepared in accordance with GAAP), except for those that are
either (i) adequately reflected or reserved on or provided for in the consolidated balance sheet of the Company and its Subsidiaries
as of the Balance Sheet Date contained in the Company Financials, (ii) that were incurred after the Balance Sheet Date in the ordinary
course of business consistent with past practice (other than Liabilities for breach of any Contract or violation of any Law), (iii) arising
under this Agreement or any other Ancillary Document or as Transaction Expenses, or (iv) which are not and would not reasonably be expected
to have a Material Adverse Effect.
(e) All
financial projections with respect to the Target Companies that were delivered by or on behalf of the Company to the Purchaser or its
Representatives were prepared in good faith using assumptions that the Company believes to be reasonable.
4.8 Absence
of Certain Changes. Except as set forth on Section 4.8 of the Company Disclosure Schedule, since June 30, 2026, each Target
Company has (a) conducted its business only in the ordinary course of business consistent with past practice, (b) not been subject to
a Material Adverse Effect and (c) not taken any action or committed or agreed to take any action that would be prohibited by Section
5.2(b) (without giving effect to Schedule 5.2) if such action were taken on or after the date hereof without the consent of
the Purchaser.
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4.9 Compliance
with Laws. Except as described on Schedule 4.9, no Target Company is or has been in material conflict or material non-compliance
with, or in material default or violation of, nor has any Target Company received, since January 1, 2023, any written or, to the Knowledge
of the Company, oral notice of any material conflict or non-compliance with, or material default or violation of, any applicable Laws
by which it or any of its properties, assets, employees, business or operations are or were bound or affected.
4.10 Company
Permits. Each Target Company (and its employees who are legally required to be licensed by a Governmental Authority in order to perform
his or her duties with respect to his or her employment with any Target Company), holds all Permits necessary to lawfully conduct in
all material respects its business as presently conducted and as currently contemplated to be conducted, and to own, lease and operate
its assets and properties (collectively, the “Company Permits”). The Company has made available to the Purchaser
true, correct and complete copies of all material Company Permits, all of which material Company Permits are listed on Schedule 4.10.
All of the Company Permits are in full force and effect, and no suspension or cancellation of any of the Company Permits is pending or,
to the Company’s Knowledge, threatened. No Target Company is in violation in any material respect of the terms of any Company Permit,
and no Target Company has received any written or, to the Knowledge of the Company, oral notice of any Actions relating to the revocation
or modification of any Company Permit.
4.11 Litigation.
Except as described on Schedule 4.11, there is no (a) Actions of any nature currently pending or, to the Company’s Knowledge,
threatened (and no such Action has been brought or, to the Company’s Knowledge, threatened in the past five (5) years); or (b)
Order now pending or outstanding or that was rendered by a Governmental Authority since January 1, 2026, in either case of (a) or (b)
by or against any Target Company, its current or former directors, officers or equity holders (provided, that any litigation involving
the directors, officers or equity holders of a Target Company must be related to the Target Company’s business, equity securities
or assets), its business, equity securities or assets. The items listed on Schedule 4.11, if finally determined adversely to the
Target Companies, will not have, either individually or in the aggregate, a Material Adverse Effect upon any Target Company. Since January
1, 2026, none of the current or former officers, senior management or directors of any Target Company have been charged with, indicted
for, arrested for, or convicted of any felony or any crime involving fraud.
4.12 Material
Contracts.
(a) Schedule
4.12(a) sets forth a true, correct and complete list of, and the Company has made available to the Purchaser (including written summaries
of oral Contracts), true, correct and complete copies of, each Contract to which any Target Company is a party or by which any Target
Company, or any of its properties or assets are bound or affected (each Contract required to be set forth on Section 4.12(a) of
the Company Disclosure Schedule, a “Company Material Contract”) that:
(i) contains
covenants that limit the ability of any Target Company (A) to compete in any line of business or with any Person or in any geographic
area or to sell, or provide any service or product or solicit any Person, including any non-competition covenants, employee and customer
non-solicit covenants, exclusivity restrictions, rights of first refusal or most-favored pricing clauses or (B) to purchase or acquire
an interest in any other Person;
(ii) involves
any joint venture, profit-sharing, partnership, limited liability company or other similar agreement or arrangement relating to the formation,
creation, operation, management or control of any partnership or joint venture;
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(iii) involves
any exchange traded, over the counter or other swap, cap, floor, collar, futures contract, forward contract, option or other derivative
financial instrument or Contract, based on any commodity, security, instrument, asset, rate or index of any kind or nature whatsoever,
whether tangible or intangible, including currencies, interest rates, foreign currency and indices;
(iv) evidences
Indebtedness (whether incurred, assumed, guaranteed or secured by any asset) of any Target Company having an outstanding principal amount
in excess of $1,000,000;
(v) involves
the acquisition or disposition, directly or indirectly (by merger or otherwise), of assets with an aggregate value in excess of $1,000,000
(other than in the ordinary course of business consistent with past practice) or shares or other equity interests of any Target Company
or another Person;
(vi) relates
to any merger, consolidation or other business combination with any other Person or the acquisition or disposition of any other entity
or its business or material assets or the sale of any Target Company, its business or material assets;
(vii) by
its terms, individually or with all related Contracts, calls for aggregate payments or receipts by the Target Companies under such Contract
or Contracts of at least $1,000,000 per year;
(viii) is
with any Top Customer or Top Supplier;
(ix) obligates
the Target Companies to provide continuing indemnification or a guarantee of obligations of a third party after the date hereof in excess
of $1,000,000;
(x) is
between any Target Company and any directors, officers or employees of a Target Company (other than at-will employment arrangements with
employees entered into in the ordinary course of business consistent with past practice), including all non-competition, severance and
indemnification agreements, or any Company Related Party;
(xi) obligates
the Target Companies to make any capital commitment or expenditure in excess of $1,000,000 (including pursuant to any joint venture);
(xii) relates
to a material settlement entered into within three (3) years prior to the date of this Agreement or under which any Target Company has
outstanding obligations in excess of $1,000,000 (other than customary confidentiality obligations);
(xiii) provides
another Person (other than another Target Company or any manager, director or officer of any Target Company) with a power of attorney;
(xiv) relates
to the development, ownership, licensing or use of any Intellectual Property by, to or from any Target Company, other than Off-the-Shelf
Software; or
(xv) that
will be required to be filed with the Registration Statement under applicable SEC requirements or would otherwise be required to be filed
by the Company as an exhibit for a Form S-1 pursuant to Items 601(b)(1), (2), (4), (9) or (10) of Regulation S-K under the Securities
Act as if the Company was the registrant.
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(b) Except
as disclosed in Schedule 4.12(b), with respect to each Company Material Contract: (i) such Company Material Contract is valid
and binding and enforceable in all material respects against the Target Company party thereto and, to the Knowledge of the Company, each
other party thereto, and is in full force and effect (except, in each case, as such enforcement may be limited by the Enforceability
Exceptions); (ii) the consummation of the transactions contemplated by this Agreement will not affect the validity or enforceability
of any Company Material Contract; (iii) no Target Company is in breach or default in any material respect, and no event has occurred
that with the passage of time or giving of notice or both would constitute a material breach or default by any Target Company, or permit
termination or acceleration by the other party thereto, under such Company Material Contract; (iv) to the Knowledge of the Company, no
other party to such Company Material Contract is in breach or default in any material respect, and no event has occurred that with the
passage of time or giving of notice or both would constitute such a material breach or default by such other party, or permit termination
or acceleration by any Target Company, under such Company Material Contract; (v) no Target Company has received written or, to the Knowledge
of the Company, oral notice of an intention by any party to any such Company Material Contract that provides for a continuing obligation
by any party thereto to terminate such Company Material Contract or amend the terms thereof, other than modifications in the ordinary
course of business that do not adversely affect any Target Company in any material respect; and (vi) no Target Company has waived any
rights under any such Company Material Contract.
4.13 Intellectual
Property.
(a) Schedule
4.13(a)(i) sets forth: (i) all U.S. and foreign registered Patents, Trademarks, Copyrights and Internet Assets and applications owned
or licensed by a Target Company or otherwise used or held for use by a Target Company in which a Target Company is the owner, applicant
or assignee (“Company Registered IP”), specifying as to each item, as applicable: (A) the nature of the item,
including the title, (B) the owner of the item, (C) the jurisdictions in which the item is issued or registered or in which an application
for issuance or registration has been filed and (D) the issuance, registration or application numbers and dates; and (ii) all material
unregistered Intellectual Property owned or purported to be owned by a Target Company. Schedule 4.13(a)(ii) sets forth all Intellectual
Property licenses, sublicenses and other agreements or permissions (“Company IP Licenses”) (other than “shrink
wrap,” “click wrap,” and “off the shelf” software agreements and other agreements for Software commercially
available on reasonable terms to the public generally with license, maintenance, support and other fees of less than $20,000 per year
(collectively, “Off-the-Shelf Software”), which are not required to be listed, although such licenses are “Company
IP Licenses” as that term is used herein), under which a Target Company is a licensee or otherwise is authorized to use or practice
any Intellectual Property, and describes (A) the applicable Intellectual Property licensed, sublicensed or used and (B) any royalties,
license fees or other compensation due from a Target Company, if any. Each Target Company owns, free and clear of all Liens (other than
Permitted Liens), has valid and enforceable rights in, and has the unrestricted right to use, sell, license, transfer or assign, all
Intellectual Property currently used, licensed or held for use by such Target Company, except for the Intellectual Property that is the
subject of the Company IP Licenses. No item of Company Registered IP that consists of a pending Patent application fails to identify
all pertinent inventors, and for each Patent and Patent application in the Company Registered IP, the Target Companies have obtained
valid assignments of inventions from each inventor. Except as set forth on Section 4.13(a)(iii) of the Company Disclosure Schedule,
all Company Registered IP is owned exclusively by the applicable Target Company without obligation to pay royalties, licensing fees or
other fees, or otherwise account to any third party with respect to such Company Registered IP, and such Target Company has recorded
assignments of all material Company Registered IP.
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(b) Each
Target Company has a valid and enforceable license to use all Intellectual Property that is the subject of the Company IP Licenses applicable
to such Target Company, except where the failure to have the same would not, individually or in the aggregate, reasonably be expected
to be material to the Company. The Company IP Licenses include all of the licenses, sublicenses and other agreements or permissions necessary
to operate the Target Companies as presently conducted. Each Target Company has performed all obligations imposed on it in the Company
IP Licenses, has made all payments required to date, and such Target Company is not, nor, to the Knowledge of the Company, is any other
party thereto, in breach or default thereunder, nor has any event occurred that with notice or lapse of time or both would constitute
a default thereunder. The continued use by the Target Companies of the Intellectual Property that is the subject of the Company IP Licenses
in the same manner that it is currently being used is not restricted by any applicable license of any Target Company. All registrations
for Copyrights, Patents, Trademarks and Internet Assets that are owned by or exclusively licensed to any Target Company are valid, in
force and in good standing with all required fees and maintenance fees having been paid with no Actions pending, and all applications
to register any Copyrights, Patents and Trademarks are pending and in good standing, all without challenge of any kind. No Target Company
is party to any Contract that requires a Target Company to assign to any Person all of its rights in any Intellectual Property developed
by a Target Company under such Contract.
(c) Schedule
4.13(c) sets forth all licenses, sublicenses and other agreements or permissions under which a Target Company is the licensor (each,
an “Outbound IP License”), and for each such Outbound IP License, describes (i) the applicable Intellectual
Property licensed, (ii) the licensee under such Outbound IP License, and (iii) any royalties, license fees or other compensation due
to a Target Company, if any. Each Target Company has performed all obligations imposed on it in the Outbound IP Licenses, and such Target
Company is not, nor, to the Knowledge of the Company, is any other party thereto, in breach or default thereunder, nor has any event
occurred that with notice or lapse of time or both would constitute a default thereunder.
(d)
With the exception of the ongoing filing or prosecution of any applications to register any Patents, Trademarks, or Copyrights with the
applicable Government Authorities, no Action is pending or, to the Company’s Knowledge, threatened against a Target Company that
challenges the validity, enforceability, ownership, or right to use, sell, license or sublicense, or that otherwise relates to, any Intellectual
Property currently owned, licensed, used or held for use by the Target Companies, nor, to the Knowledge of the Company, is there any
reasonable basis for any such Action. No Target Company has received any written or, to the Knowledge of the Company, oral notice or
claim asserting or suggesting that any infringement, misappropriation, violation, dilution or unauthorized use of the Intellectual Property
of any other Person is or may be occurring or has or may have occurred, as a consequence of the business activities of any Target Company,
nor to the Knowledge of the Company is there a reasonable basis therefor. There are no Orders to which any Target Company is a party
or its otherwise bound that (i) restrict the rights of a Target Company to use, transfer, license or enforce any Intellectual Property
owned by a Target Company, (ii) restrict the conduct of the business of a Target Company in order to accommodate a third Person’s
Intellectual Property, or (iii) other than the Outbound IP Licenses, grant any third Person any right with respect to any Intellectual
Property owned by a Target Company. No Target Company is currently infringing, or has, in the past five (5) years, infringed, misappropriated
or violated any Intellectual Property of any other Person in any material respect in connection with the ownership, use or license of
any Intellectual Property owned or purported to be owned by a Target Company or, to the Knowledge of the Company, otherwise in connection
with the conduct of the respective businesses of the Target Companies. To the Company’s Knowledge, no third party is currently,
or in the past five (5) years has been, infringing upon, misappropriating or otherwise violating any Intellectual Property owned, licensed
by, licensed to, or otherwise used or held for use by any Target Company (“Company IP”) in any material respect.
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(e) All
employees and independent contractors of a Target Company have assigned to the Target Companies all Intellectual Property arising from
the services performed for a Target Company by such Persons and all such assignments of Company Registered IP have been recorded. No
current or former officers, employees or independent contractors of a Target Company have claimed any ownership interest in any Intellectual
Property owned by a Target Company. To the Knowledge of the Company, there has been no violation of a Target Company’s policies
or practices related to protection of Company IP or any confidentiality or nondisclosure Contract relating to the Intellectual Property
owned by a Target Company. The Company has made available to the Purchaser true and complete copies of all written Contracts referenced
in subsections under which employees and independent contractors assigned their Intellectual Property to a Target Company. To the Company’s
Knowledge, none of the employees of any Target Company is obligated under any Contract, or subject to any Order, that would materially
interfere with the use of such employee’s best efforts to promote the interests of the Target Companies, or that would materially
conflict with the business of any Target Company as presently conducted or contemplated to be conducted. Each Target Company has taken
reasonable security measures in order to protect the secrecy, confidentiality and value of the material Company IP.
(f) To
the Knowledge of the Company, no Person has obtained unauthorized access to third party information and data (including personally identifiable
information) in the possession of a Target Company, nor has there been any other material compromise of the security, confidentiality
or integrity of such information or data, and no written or, to the Knowledge of the Company, oral complaint relating to an improper
use or disclosure of, or a breach in the security of, any such information or data has been received by a Target Company. Each Target
Company has complied in all material respects with all applicable Laws and Contract requirements relating to privacy, personal data protection,
and the collection, processing and use of personal information and its own privacy policies and guidelines. The operation of the business
of the Target Companies has not and does not violate in any material respects any right to privacy or publicity of any third person,
or constitute unfair competition or trade practices under applicable Law.
(g) The
consummation of any of the transactions contemplated by this Agreement will not result in the material breach, material modification,
cancellation, termination, suspension of, or acceleration of any payments with respect to, or release of source code because of (i) any
Contract providing for the license or other use of Intellectual Property owned by a Target Company, or (ii) any Company IP License. Following
the Closing, the Company shall be permitted to exercise, directly or indirectly through its Subsidiaries, all of the Target Companies’
rights under such Contracts or Company IP Licenses to the same extent that the Target Companies would have been able to exercise had
the transactions contemplated by this Agreement not occurred, without the payment of any additional amounts or consideration other than
ongoing fees, royalties or payments which the Target Companies would otherwise be required to pay in the absence of such transactions.
4.14 Taxes
and Returns.
(a) Each
Target Company has or will have timely filed, or caused to be timely filed, all federal, state, local and foreign Tax Returns required
by Law to be filed by it (taking into account all available extensions), which Tax Returns are true, accurate, correct and complete in
all material respects, and has paid, collected or withheld, or caused to be paid, collected or withheld, all material Taxes required
by Law to be paid, collected or withheld, other than such Taxes for which adequate reserves in the Company Financials have been established.
Each Target Company has complied with all applicable Laws relating to Taxes.
(b) There
is no Action currently pending or, to the Knowledge of the Company, threatened against a Target Company by a Governmental Authority in
a jurisdiction where the Target Company does not file Tax Returns that it is or may be subject to taxation by that jurisdiction.
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(c) To
the Knowledge of the Company, no Target Company is being audited by any Tax authority or has been notified in writing or, to the Knowledge
of the Company, orally by any Tax authority that any such audit is contemplated or pending. There are no claims, assessments, audits,
examinations, investigations or other Actions pending against a Target Company in respect of any Tax, and no Target Company has been
notified in writing of any proposed Tax claims or assessments against it (other than, in each case, claims or assessments for which adequate
reserves in the Company Financials have been established).
(d) There
are no Liens with respect to any Taxes upon any Target Company’s assets, other than Permitted Liens.
(e) Each
Target Company has collected or withheld all Taxes currently 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.
(f) No
Target Company has any outstanding waivers or extensions of any applicable statute of limitations to assess any amount of Taxes. There
are no outstanding requests by a Target Company for any extension of time within which to file any Tax Return or within which to pay
any Taxes shown to be due on any Tax Return.
(g) No
Target Company has made any change in accounting method (except as required by a change in Law) or received a ruling from, or signed
an agreement with, any taxing authority that would reasonably be expected to have a material impact on its Taxes following the Closing.
(h) No
Target Company has participated in, or sold, distributed or otherwise promoted, any “reportable transaction,” as defined
in U.S. Treasury Regulation section 1.6011-4.
(i) No
Target Company has any Liability or potential Liability for the Taxes of another Person (other than another Target Company) that are
not adequately reflected in the Company Financials (i) under any applicable Tax Law, (ii) as a transferee or successor, or (iii) by contract,
indemnity or otherwise (excluding commercial agreements entered into in the ordinary course of business the primary purpose of which
is not the sharing of Taxes). No Target Company is a party to or bound by any Tax indemnity agreement, Tax sharing agreement or Tax allocation
agreement or similar agreement, arrangement or practice (excluding commercial agreements entered into in the ordinary course of business
the primary purpose of which is not the sharing of Taxes) with respect to Taxes (including advance pricing agreement, closing agreement
or other agreement relating to Taxes with any Governmental Authority) that will be binding on any Target Company with respect to any
period following the Closing Date.
(j) No
Target Company has requested, or is it the subject of or bound by any private letter ruling, technical advice memorandum, closing agreement
or similar ruling, memorandum or agreement with any Governmental Authority with respect to any Taxes, nor is any such request outstanding.
(k) No
Target Company: (i) has constituted either a “distributing corporation” or a “controlled corporation” (within
the meaning of Section 355(a)(1)(A) of the Code) in a distribution of securities (to any Person or entity that is not a member of the
consolidated group of which the Company is the common parent corporation) qualifying for, or intended to qualify for, Tax-free treatment
under Section 355 of the Code (A) within the two-year period ending on the date hereof or (B) in a distribution which could otherwise
constitute part of a “plan” or “series of related transactions” (within the meaning of Section 355(e) of the
Code) in conjunction with the transactions contemplated by this Agreement; or (ii) is or has ever been (A) a U.S. real property holding
corporation within the meaning of Section 897(c)(2) of the Code, or (B) a member of any consolidated, combined, unitary or affiliated
group of corporations for any Tax purposes other than a group of which the Company is or was the common parent corporation.
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(l) To
the Knowledge of the Company, there is no fact or circumstance that would reasonably be expected to prevent the Merger from qualifying
as a “reorganization” within the meaning of Section 368(a) of the Code.
4.15 Real
Property. Schedule 4.15 contains a complete and accurate list of all premises currently leased or subleased or otherwise used
or occupied by a Target Company for the operation of the business of a Target Company, and of all current leases, lease guarantees, agreements
and documents related thereto, including all amendments, terminations and modifications thereof or waivers thereto (collectively, the
“Company Real Property Leases”). The Company has provided to the Purchaser a true and complete copy of each
of the Company Real Property Leases, and in the case of any oral Company Real Property Lease, a written summary of the material terms
of such Company Real Property Lease. Subject to the Enforceability Exceptions, the Company Real Property Leases are valid, binding and
enforceable in accordance with their terms and are in full force and effect. To the Knowledge of the Company, no event has occurred which
(whether with or without notice, lapse of time or both or the happening or occurrence of any other event) would constitute a default
on the part of a Target Company or any other party under any of the Company Real Property Leases, and no Target Company has received
notice of any such condition. No Target Company owns or has ever owned any real property or any interest in real property (other than
the leasehold interests in the Company Real Property Leases).
4.16 Personal
Property. Each item of Personal Property which is currently owned, used or leased by a Target Company with a book value or fair market
value of greater than $1,000,000 is set forth on Section 4.16 of the Company Disclosure Schedule, along with, to the extent applicable,
a list of lease agreements, lease guarantees, security agreements and other agreements related thereto, including all amendments, terminations
and modifications thereof or waivers thereto (“Company Personal Property Leases”). Except as set forth in Schedule
4.16, all such items of Personal Property are in good operating condition and repair (reasonable wear and tear excepted consistent
with the age of such items), and are suitable for their intended use in the business of the Target Companies. The operation of each Target
Company’s business as it is now conducted or presently proposed to be conducted is not dependent upon the right to use the Personal
Property of Persons other than a Target Company, except for such Personal Property that is owned, leased or licensed by or otherwise
contracted to a Target Company. The Company has provided to the Purchaser a true and complete copy of each of the Company Personal Property
Leases, and in the case of any oral Company Personal Property Lease, a written summary of the material terms of such Company Personal
Property Lease. The Company Personal Property Leases are valid, binding and enforceable in accordance with their terms and are in full
force and effect. To the Knowledge of the Company, no event has occurred which (whether with or without notice, lapse of time or both
or the happening or occurrence of any other event) would constitute a default on the part of a Target Company or any other party under
any of the Company Personal Property Leases, and no Target Company has received notice of any such condition.
4.17 Title
to and Sufficiency of Assets. Each Target Company has good and marketable title to, or a valid leasehold interest in or right to
use, all of its assets, free and clear of all Liens other than (a) Permitted Liens, (b) the rights of lessors under leasehold interests,
(c) Liens specifically identified on the balance sheet as of the Balance Sheet Date included in the Company Financials and (d) Liens
set forth on Section 4.17 of the Company Disclosure Schedule. The assets (including Intellectual Property rights and contractual
rights) of the Target Companies constitute all of the assets, rights and properties that are used in the operation of the businesses
of the Target Companies as it is now conducted and presently proposed to be conducted or that are used or held by the Target Companies
for use in the operation of the businesses of the Target Companies, and taken together, are adequate and sufficient for the operation
of the businesses of the Target Companies as currently conducted and as presently proposed to be conducted.
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4.18 Employee
Matters.
(a) Except
as set forth in Schedule 4.18(a), no Target Company is a party to any collective bargaining agreement or other Contract covering
any group of employees, labor organization or other representative of any of the employees of any Target Company, and the Company has
no Knowledge of any activities or proceedings of any labor union or other party to organize or represent such employees. There has not
occurred or, to the Knowledge of the Company, been threatened any strike, slow-down, picketing, work-stoppage, or other similar labor
activity with respect to any such employees. Schedule 4.18(a) sets forth all unresolved labor controversies (including unresolved
grievances and age or other discrimination claims), if any, that are pending or, to the Knowledge of the Company, threatened between
any Target Company and Persons employed by or providing services as independent contractors to a Target Company. No current officer or
employee of a Target Company has provided any Target Company written or, to the Knowledge of the Company, oral notice of his or her plan
to terminate his or her employment with any Target Company.
(b) Except
as set forth in Schedule 4.18(b), each Target Company (i) is and has been in compliance in all material respects with all applicable
Laws respecting employment and employment practices, terms and conditions of employment, health and safety and wages and hours, and other
Laws relating to discrimination, disability, labor relations, hours of work, payment of wages and overtime wages, pay equity, immigration,
workers compensation, working conditions, employee scheduling, occupational safety and health, family and medical leave, and employee
terminations, and has not received written or, to the Knowledge of the Company, oral notice that there is any pending Action involving
unfair labor practices against a Target Company, (ii) is not liable for any material past due arrears of wages or any material penalty
for failure to comply with any of the foregoing, and (iii) is not liable for any material payment to any Governmental Authority with
respect to unemployment compensation benefits, social security or other benefits or obligations for employees, independent contractors
or consultants (other than routine payments to be made in the ordinary course of business and consistent with past practice). There are
no Actions pending or, to the Knowledge of the Company, threatened against a Target Company brought by or on behalf of any applicant
for employment, any current or former employee, any Person alleging to be a current or former employee, or any Governmental Authority,
relating to any such Law or regulation, or alleging breach of any express or implied contract of employment, wrongful termination of
employment, or alleging any other discriminatory, wrongful or tortious conduct in connection with the employment relationship.
(c) Schedule
4.18(c) hereto sets forth a complete and accurate list as of the date hereof of all employees of the Target Companies showing for
each as of such date (i) the employee’s name, job title or description, employer, location, salary level (including any bonus,
commission, deferred compensation or other remuneration payable (other than any such arrangements under which payments are at the discretion
of the Target Companies)), (ii) any bonus, commission or other remuneration other than salary paid during the fiscal year ended June
30, 2026, and (iii) any wages, salary, bonus, commission or other compensation due and owing to each employee during or for the fiscal
year ending June 30, 2026. Except as set forth on Section 4.18(c) of the Company Disclosure Schedule, (A) no employee is a party
to a written employment Contract with a Target Company that is “at will”, and (B) the Target Companies have paid in full
to all their employees all wages, salaries, commission, bonuses and other compensation due to their employees, including overtime compensation,
and no Target Company has any obligation or Liability (whether or not contingent) with respect to severance payments to any such employees
under the terms of any written or, to the Company’s Knowledge, oral agreement, or commitment or any applicable Law, custom, trade
or practice. Except as set forth in Schedule 4.18(c), each Target Company employee has entered into the Company’s standard
form of employee non-disclosure, inventions and restrictive covenants agreement with a Target Company (whether pursuant to a separate
agreement or incorporated as part of such employee’s overall employment agreement), a copy of which has been made available to
the Purchaser by the Company.
27
(d) Schedule
4.18(d) contains a list of all independent contractors (including consultants) currently engaged by any Target Company, along with
the position, the entity engaging such Person, date of retention and rate of remuneration, most recent increase (or decrease) in remuneration
and amount thereof, for each such Person. Except as set forth on Section 4.18(d) of the Company Disclosure Schedule, all of such
independent contractors are a party to a written Contract with a Target Company. Except as set forth on Section 4.18(d) of the
Company Disclosure Schedule, each such independent contractor has entered into customary covenants regarding confidentiality, non-competition
and assignment of inventions and copyrights in such Person’s agreement with a Target Company, a copy of which has been provided
to the Purchaser by the Company. For the purposes of applicable Law, including the Code, all independent contractors who are currently,
or within the last six (6) years have been, engaged by a Target Company are bona fide independent contractors and not employees of a
Target Company. Each independent contractor is terminable on fewer than thirty (30) days’ notice, without any obligation of any
Target Company to pay severance or a termination fee.
4.19 Benefit
Plans.
(a)
Set forth on Schedule 4.19(a) of the Company Disclosure Schedule is a true and complete list of each Benefit Plan of a Target
Company (each, a “Company Benefit Plan”). With respect to each Company Benefit Plan, there are no funded benefit
obligations for which contributions have not been made or properly accrued and there are no unfunded benefit obligations that have not
been accounted for by reserves, or otherwise properly footnoted in accordance with GAAP on the Company Financials. No Target Company
is or has in the past been a member of a “controlled group” for purposes of Section 414(b), (c), (m) or (o) of the Code,
nor does any Target Company have any Liability with respect to any collectively-bargained for plans, whether or not subject to the provisions
of ERISA. No statement, either written or oral, has been made by any Target Company to any Person with regard to any Company Benefit
Plan that was not in accordance with the Company Benefit Plan in any material respect.
(b) Each
Company Benefit Plan is and has been operated at all times in compliance with all applicable Laws in all material respects, including
ERISA and the Code. Each Company Benefit Plan which is intended to be “qualified” within the meaning of Section 401(a) of
the Code (i) has been determined by the IRS to be so qualified (or is based on a prototype plan which has received a favorable opinion
letter) during the period from its adoption to the date of this Agreement and (ii) its related trust has been determined to be exempt
from taxation under Section 501(a) of the Code or the Target Companies have requested an initial favorable IRS determination of qualification
and/or exemption within the period permitted by applicable Law. No fact exists which could adversely affect the qualified status of such
Company Benefit Plans or the exempt status of such trusts.
(c) With
respect to each Company Benefit Plan which covers any current or former officer, director, consultant or employee (or beneficiary thereof)
of a Target Company, the Company has provided to Purchaser accurate and complete copies, if applicable, of: (i) all Company Benefit Plan
texts and agreements and related trust agreements or annuity Contracts (including any amendments, modifications or supplements thereto);
(ii) all summary plan descriptions and material modifications thereto; (iii) the three (3) most recent Forms 5500, if applicable, and
annual report, including all schedules thereto; (iv) the most recent annual and periodic accounting of plan assets; (v) the three (3)
most recent nondiscrimination testing reports; (vi) the most recent determination letter received from the IRS, if any; (vii) the most
recent actuarial valuation; and (viii) all material communications with any Governmental Authority.
(d) With
respect to each Company Benefit Plan: (i) such Company Benefit Plan has been administered and enforced in all material respects in accordance
with its terms, the Code and ERISA; (ii) no breach of fiduciary duty has occurred; (iii) no Action is pending, or to the Company’s
Knowledge, threatened (other than routine claims for benefits arising in the ordinary course of administration); (iv) no prohibited transaction,
as defined in Section 406 of ERISA or Section 4975 of the Code, has occurred, excluding transactions effected pursuant to a statutory
or administration exemption; and (v) all contributions and premiums due through the Closing Date have been made in all material respects
as required under ERISA or have been fully accrued in all material respects on the Company Financials.
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(e) No
Company Benefit Plan is a “defined benefit plan” (as defined in Section 414(j) of the Code), a “multiemployer plan”
(as defined in Section 3(37) of ERISA) or a “multiple employer plan” (as described in Section 413(c) of the Code) or is otherwise
subject to Title IV of ERISA or Section 412 of the Code, and no Target Company has incurred any Liability or otherwise could have any
Liability, contingent or otherwise, under Title IV of ERISA and no condition presently exists that is expected to cause such Liability
to be incurred. No Company Benefit Plan will become a multiple employer plan with respect to any Target Company immediately after the
Closing Date. No Target Company currently maintains or has ever maintained, or is required currently or has ever been required to contribute
to or otherwise participate in, a multiple employer welfare arrangement or voluntary employees’ beneficiary association as defined
in Section 501(c)(9) of the Code.
(f) There
is no arrangement under any Company Benefit Plan with respect to any employee that would result in the payment of any amount that by
operation of Sections 280G or 162(m) of the Code would not be deductible by the Target Companies and no arrangement exists pursuant to
which a Target Company will be required to “gross up” or otherwise compensate any person because of the imposition of any
excise tax on a payment to such person.
(g) With
respect to each Company Benefit Plan which is a “welfare plan” (as described in Section 3(1) of ERISA): (i) no such plan
provides medical or death benefits with respect to current or former employees of a Target Company beyond their termination of employment
(other than coverage mandated by Law, which is paid solely by such employees); and (ii) there are no reserves, assets, surplus or prepaid
premiums under any such plan. Each Target Company has complied with the provisions of Section 601 et seq. of ERISA and Section 4980B
of the Code.
(h) The
consummation of the transactions contemplated by this Agreement and the Ancillary Documents will not: (i) entitle any individual to severance
pay, unemployment compensation or other benefits or compensation; (ii) accelerate the time of payment or vesting, or increase the amount
of any compensation due, or in respect of, any individual; or (iii) result in or satisfy a condition to the payment of compensation that
would, in combination with any other payment, result in an “excess parachute payment” within the meaning of Section 280G
of the Code. No Target Company has incurred any Liability for any Tax imposed under Chapter 43 of the Code or civil liability under Section
502(i) or (l) of ERISA.
(i) Except
to the extent required by Section 4980B of the Code or similar state Law, no Target Company provides health or welfare benefits to any
former or retired employee or is obligated to provide such benefits to any active employee following such employee’s retirement
or other termination of employment or service.
(j) All
Company Benefit Plans can be terminated at any time as of or after the Closing Date, except as required by applicable laws, without resulting
in any Liability to the Surviving Corporation or Purchaser or their respective Affiliates for any additional contributions, penalties,
premiums, fees, fines, excise taxes or any other charges or liabilities in any material respects.
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(k) Each
Company Benefit Plan that is subject to Section 409A of the Code (each, a “Section 409A Plan”) as of the Closing
Date is indicated as such on Schedule 4.19(k). No equity-based awards have been issued or granted by the Company that are, or
are subject to, a Section 409A Plan. Each Section 409A Plan has been administered in compliance, and is in documentary compliance, with
the applicable provisions of Section 409A of the Code, the regulations thereunder and other official guidance issued thereunder. No Target
Company has any obligation to any employee or other service provider with respect to any Section 409A Plan that may be subject to any
Tax under Section 409A of the Code. No payment to be made under any Section 409A Plan is, or to the Knowledge of the Company will be,
subject to the penalties of Section 409A(a)(1) of the Code. There is no Contract or plan to which any Target Company is a party or by
which it is bound to compensate any employee, consultant or director for penalty taxes paid pursuant to Section 409A of the Code.
4.20
Environmental Matters. Except as set forth in Schedule 4.20:
(a) Each
Target Company is and has been in compliance in all material respects with all applicable Environmental Laws, including obtaining, maintaining
in good standing, and complying in all material respects with all Permits required for its business and operations by Environmental Laws
(“Environmental Permits”), no Action is pending or, to the Company’s Knowledge, threatened to revoke,
modify, or terminate any such Environmental Permit, and, to the Company’s Knowledge, no facts, circumstances, or conditions currently
exist that could adversely affect such continued compliance with Environmental Laws and Environmental Permits or require capital expenditures
to achieve or maintain such continued compliance with Environmental Laws and Environmental Permits.
(b) No
Target Company is the subject of any outstanding Order or Contract with any Governmental Authority or other Person in respect of any
(i) Environmental Laws, (ii) Remedial Action, or (iii) Release or threatened Release of a Hazardous Material. No Target Company has assumed,
contractually or by operation of Law, any Liabilities or obligations under any Environmental Laws.
(c) No
Action has been made or is pending, or to the Company’s Knowledge, threatened against any Target Company or any assets of a Target
Company alleging either or both that a Target Company may be in material violation of any Environmental Law or Environmental Permit or
may have any material Liability under any Environmental Law.
(d) No
Target Company has manufactured, treated, stored, disposed of, arranged for or permitted the disposal of, generated, handled or Released
any Hazardous Material, or owned or operated any property or facility, in a manner that has given or would reasonably be expected to
give rise to any material Liability or obligation under applicable Environmental Laws. No fact, circumstance, or condition exists in
respect of any Target Company or any property currently or formerly owned, operated, or leased by any Target Company or any property
to which a Target Company arranged for the disposal or treatment of Hazardous Materials that could reasonably be expected to result in
a Target Company incurring any material Environmental Liabilities.
(e) There
is no investigation of the business, operations, or currently owned, operated, or leased property of a Target Company or, to the Company’s
Knowledge, previously owned, operated, or leased property of a Target Company pending or, to the Company’s Knowledge, threatened
that could lead to the imposition of any Liens under any Environmental Law or material Environmental Liabilities.
30
4.21
Transactions with Related Persons. Except as set forth on Section 4.21 of the Company Disclosure Schedule, no Target Company
nor any of its Affiliates, nor any officer, director, manager, employee, trustee or beneficiary of a Target Company or any of its Affiliates,
nor any immediate family member of any of the foregoing (whether directly or indirectly through an Affiliate of such Person) (each of
the foregoing, a “Related Person”) is presently, or in the past three (3) years, has been, a party to any transaction
with a Target Company, including any Contract or other arrangement (a) providing for the furnishing of services by (other than as officers,
directors or employees of the Target Company), (b) providing for the rental of real property or Personal Property from or (c) otherwise
requiring payments to (other than for services or expenses as directors, officers or employees of the Target Company in the ordinary
course of business consistent with past practice) any Related Person or any Person in which any Related Person has an interest as an
owner, officer, manager, director, trustee or partner or in which any Related Person has any direct or indirect interest (other than
the ownership of securities representing no more than two percent (2%) of the outstanding voting power or economic interest of a publicly
traded company). Except as set forth on Section 4.21 of the Company Disclosure Schedule, no Target Company has outstanding
any Contract or other arrangement or commitment with any Related Person, and no Related Person owns any real property or Personal Property,
or right, tangible or intangible (including Intellectual Property) which is used in the business of any Target Company. The assets of
the Target Companies do not include any receivable or other obligation from a Related Person, and the liabilities of the Target Companies
do not include any payable or other obligation or commitment to any Related Person.
4.22
Insurance.
(a)
Schedule 4.22(a) lists all insurance policies (by policy number, insurer, coverage period, coverage amount, annual premium
and type of policy) held by a Target Company relating to a Target Company or its business, properties, assets, directors, officers and
employees, copies of which have been provided to the Purchaser. All premiums due and payable under all such insurance policies have been
timely paid and the Target Companies are otherwise in material compliance with the terms of such insurance policies. Each such insurance
policy is legal, valid, binding, enforceable and in full force and effect. No Target Company has any self-insurance or co-insurance programs.
In the past five (5) years, no Target Company has received any notice from, or on behalf of, any insurance carrier relating to or involving
any adverse change or any change other than in the ordinary course of business, in the conditions of insurance, any refusal to issue
an insurance policy or non-renewal of a policy.
(b)
Schedule 4.22(b) identifies each individual insurance claim in excess of $100,000 made by a Target Company in the past
five (5) years. Each Target Company has reported to its insurers all claims and pending circumstances that would reasonably be expected
to result in a claim, except where such failure to report such a claim would not be reasonably likely to be material to the Target Companies.
To the Knowledge of the Company, no event has occurred, and no condition or circumstance exists, that would reasonably be expected to
(with or without notice or lapse of time) give rise to or serve as a basis for the denial of any such insurance claim. No Target Company
has made any claim against an insurance policy as to which the insurer is denying coverage.
4.23
Books and Records. All of the financial books and records of the Target Companies are complete and accurate in all material respects
and have been maintained in the ordinary course consistent with past practice and in accordance with applicable Laws.
4.24
Top Customers and Suppliers. Schedule 4.24, lists, by dollar volume received or paid, as applicable, for each of the twelve (12)
months ended on June 30, 2026 and June 30 2025, the ten (10) largest customers of the Target Companies (the “Top Customers”)
and the ten largest suppliers of goods or services to the Target Companies (the “Top Suppliers”), along with the amounts
of such dollar volumes. The relationships of each Target Company with such suppliers and customers are good commercial working relationships
and (i) no Top Supplier or Top Customer within the last twelve (12) months has cancelled or otherwise terminated, or, to the Company’s
Knowledge, intends to cancel or otherwise terminate, any material relationships of such Person with a Target Company, (ii) no Top Supplier
or Top Customer has during the last twelve (12) months decreased materially or, to the Company’s Knowledge, threatened to stop,
decrease or limit materially, or intends to modify materially its material relationships with a Target Company or intends to stop, decrease
or limit materially its products or services to any Target Company or its usage or purchase of the products or services of any Target
Company, (iii) to the Company’s Knowledge, no Top Supplier or Top Customer intends to refuse to pay any amount due to any Target
Company or seek to exercise any remedy against any Target Company, (iv) no Target Company has within the past two (2) years been engaged
in any material dispute with any Top Supplier or Top Customer, and (v) to the Company’s Knowledge, the consummation of the transactions
contemplated in this Agreement and the Ancillary Documents will not adversely affect the relationship of any Target Company with any
Top Supplier or Top Customer.
31
4.25
Certain Business Practices.
(a) No
Target Company, nor any of their respective Representatives acting on their behalf has (i) used any funds for unlawful contributions,
gifts, entertainment or other unlawful expenses relating to political activity, (ii) made any unlawful payment to foreign or domestic
government officials or employees, to foreign or domestic political parties or campaigns or violated any provision of the U.S. Foreign
Corrupt Practices Act of 1977 or any other local or foreign anti-corruption or bribery Law or (iii) made any other unlawful payment.
No Target Company, nor any of their respective Representatives acting on their behalf has directly or indirectly, given or agreed to
give any unlawful gift or similar benefit in any material amount to any customer, supplier, governmental employee or other Person who
is or may be in a position to help or hinder any Target Company or assist any Target Company in connection with any actual or proposed
transaction.
(b) The
operations of each Target Company are and have been conducted at all times in compliance with money laundering statutes in all applicable
jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered
or enforced by any Governmental Authority, and no Action involving a Target Company with respect to any of the foregoing is pending or,
to the Knowledge of the Company, threatened.
(c) No
Target Company or any of their respective directors or officers, or, to the Knowledge of the Company, any other Representative acting
on behalf of a Target Company is currently identified on the specially designated nationals or other blocked person list or otherwise
currently subject to any U.S. sanctions administered by OFAC, and no Target Company has in the last five (5) fiscal years, directly or
indirectly, used any funds, or loaned, contributed or otherwise made available such funds to any Subsidiary, joint venture partner or
other Person, in connection with any sales or operations in Cuba, Iran, Syria, Sudan, Myanmar or any other country sanctioned by OFAC
or for the purpose of financing the activities of any Person currently subject to, or otherwise in violation of, any U.S. sanctions administered
by OFAC.
4.26
[Intentionally Omitted]
4.27
Investment Company Act. No Target Company is an “investment company” or a Person directly or indirectly “controlled”
by or acting on behalf of an “investment company”, or required to register as an “investment company”, in each
case within the meaning of the Investment Company Act of 1940, as amended.
4.28
Finders and Brokers . Except as set forth in Schedule 4.28, no Target Company has incurred or will incur any Liability for any
brokerage, finder’s or other fee or commission in connection with the transactions contemplated hereby.
32
4.29
Information Supplied. Subject to the Company’s review of the information as included in such reports and filings described
below, none of the information supplied or to be supplied by the Company expressly for inclusion or incorporation by reference: (a) in
any current report on Form 8-K, and any exhibits thereto or any other report, form, registration or other filing made with any Governmental
Authority or stock exchange with respect to the transactions contemplated by this Agreement or any Ancillary Documents; (b) in the Registration
Statement; or (c) in the mailings or other distributions to the Purchaser’s shareholders and/or prospective investors with respect
to the consummation of the transactions contemplated by this Agreement or in any amendment to any of documents identified in (a) through
(c), will, when filed, made available, mailed or distributed, as the case may be, 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
under which they are made, not misleading. None of the information supplied or to be supplied by the Company expressly for inclusion
or incorporation by reference in any of the Signing Press Release, the Signing Filing, the Closing Press Release and the Closing Filing
will, when filed or distributed, as applicable, 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 under which they are made, not
misleading. Notwithstanding the foregoing, the Company makes no representation, warranty or covenant with respect to any information
supplied by or on behalf of the Purchaser or its Affiliates.
4.30
No Other Representations. Except for the representations and warranties expressly made by the Company in this Article IV (as modified
by the Company Disclosure Schedules) or as expressly set forth in an Ancillary Document, neither the Company nor any other Person on
its behalf makes any express or implied representation or warranty with respect to any of the Company, the Company Representative, the
Company Common Stock, the business of the Company, or the transactions contemplated by this Agreement or any of the other Ancillary Documents,
and the Company hereby expressly disclaims any other representations or warranties, whether implied or made by the Company or any of
its Representatives. Except for the representations and warranties expressly made by the Company in this Article IV (as modified by the
Company Disclosure Schedules) or in an Ancillary Document, the Company hereby expressly disclaims all liability and responsibility for
any representation, warranty, projection, forecast, statement or information made, communicated or furnished (orally or in writing) to
either of the Purchaser Parties, the Purchaser Representative or any of their respective Representatives (including any opinion, information,
projection or advice that may have been or may be provided to the Purchaser Parties, the Purchaser Representative or any of their respective
Representatives by any Representative of the Company), including any representations or warranties regarding the probable success or
profitability of the businesses of the Company.
Article
V
COVENANTS
5.1 Access
and Information.
(a) During
the period from the date of this Agreement and continuing until the earlier of the termination of this Agreement in accordance with Section
7.1 or the Closing (the “Interim Period”), subject to Section 5.15, the Company shall give, and
shall cause its Representatives to give, the Purchaser and its Representatives, at reasonable times during normal business hours and
upon reasonable intervals and notice, reasonable access to all offices and other facilities and to all properties, books and records,
financial and operational data and other information (including Tax Returns, client Contracts and director service agreements), of or
pertaining to the Target Companies, as the Purchaser or its Representatives may reasonably request regarding the Target Companies and
their respective businesses, assets, Liabilities, financial condition, operations, management, employees and other aspects (including
unaudited quarterly financial statements, including a consolidated quarterly balance sheet and income statement, a copy of each material
report, schedule and other document filed with or received by a Governmental Authority pursuant to the requirements of applicable securities
Laws, and independent public accountants’ work papers (subject to the consent or any other conditions required by such accountants,
if any)) and cause each of the Company’s Representatives to reasonably cooperate with the Purchaser and its Representatives;
provided, however, that the Purchaser and its Representatives shall conduct any such activities in such a manner as not to unreasonably
interfere with the business or operations of the Target Companies; provided, further, that nothing herein shall require the Company
to disclose any information the disclosure of which would jeopardize the attorney-client privilege or other legal privilege of the Company
or any of its Subsidiaries or contravene any applicable Law.
33
(b) During
the Interim Period, subject to Section 5.15, the Purchaser shall give, and shall cause its Representatives to give, the Company
and its Representatives, at reasonable times during normal business hours and upon reasonable intervals and notice, reasonable access
to all offices and other facilities and to all properties, books and records, financial and operational data and other information, of
or pertaining to the Purchaser or its Subsidiaries, as the Company or its Representatives may reasonably request regarding the Purchaser,
its Subsidiaries and their respective businesses, assets, Liabilities, financial condition, prospects, operations, management, employees
and other aspects (including unaudited quarterly financial statements, including a consolidated quarterly balance sheet and income statement,
a copy of each material report, schedule and other document filed with or received by a Governmental Authority pursuant to the requirements
of applicable securities Laws, and independent public accountants’ work papers (subject to the consent or any other conditions
required by such accountants, if any)) and cause each of the Purchaser’s Representatives to reasonably cooperate with the Company
and its Representatives in their investigation; provided, however, that the Company and its Representatives shall conduct any
such activities in such a manner as not to unreasonably interfere with the business or operations of the Purchaser or any of its Subsidiaries.
5.2 Conduct
of Business of the Company.
(a) Unless
the Purchaser shall otherwise consent in writing (such consent not to be unreasonably withheld, conditioned or delayed), during the Interim
Period, except as expressly contemplated by this Agreement or the Ancillary Documents, or as set forth on Section 5.2 of the Company
Disclosure Schedule, the Company shall, and shall cause its Subsidiaries to, in all material respects, (i) conduct their respective businesses
in the ordinary course of business consistent with past practice, (ii) comply with all Laws applicable to the Target Companies and their
respective businesses, assets and employees, and (iii) take all commercially reasonable measures necessary or appropriate to preserve
intact their respective business organizations, to keep available the services of their respective managers, directors, officers, employees
and consultants, and to preserve the possession, control and condition of their respective material assets, all as consistent with past
practice.
(b) Without
limiting the generality of Section 5.2(a) and except as contemplated by the terms of this Agreement or the Ancillary Documents,
or as set forth on Section 5.2 of of the Company Disclosure Schedule, during the Interim Period, without the prior written consent
of the Purchaser (such consent not to be unreasonably withheld, conditioned or delayed), the Company shall not, and shall cause its Subsidiaries
to not:
(i) amend,
waive or otherwise change, in any respect, its Organizational Documents, except as required by applicable Law;
(ii) authorize
for issuance, issue, grant, sell, pledge, dispose of or propose to issue, grant, sell, pledge or dispose of any of its equity securities
or any options, warrants, commitments, subscriptions or rights of any kind to acquire or sell any of its equity securities, or other
securities, including any securities convertible into or exchangeable for any of its shares or other equity securities or securities
of any class and any other equity-based awards, or engage in any hedging transaction with a third Person with respect to such securities;
(iii) split,
combine, recapitalize or reclassify any of its shares or other equity interests or issue any other securities in respect thereof or pay
or set aside any dividend or other distribution (whether in cash, equity or property or any combination thereof) in respect of its equity
interests, or directly or indirectly redeem, purchase or otherwise acquire or offer to acquire any of its securities;
34
(iv)
incur, create, assume, prepay or otherwise become liable for any Indebtedness (directly, contingently or otherwise) in excess of $1,000,000
individually, make a loan or advance to or investment in any third party (other than advancement of expenses to employees in the ordinary
course of business), or guarantee or endorse any Indebtedness, Liability or obligation of any Person in excess of $1,000,000 individually,
provided, that this Section 5.2(b)(iv) shall not restrict (A) borrowings under the Company’s existing credit facilities in effect
as of the date of this Agreement in the ordinary course of business consistent with past practice, (B) intercompany Indebtedness among
the Target Companies in the ordinary course of business, or (C) trade payables and similar obligations incurred in the ordinary course
of business consistent with past practice;
(v) increase
the wages, salaries or compensation of its employees other than in the ordinary course of business, consistent with past practice, and
in any event not in the aggregate by more than twenty percent (20.0%), or make or commit to make any bonus payment (whether in cash,
property or securities) to any employee, or materially increase other benefits of employees generally, or enter into, establish, materially
amend or terminate any Company Benefit Plan with, for or in respect of any current consultant, officer, manager director or employee,
in each case other than as required by applicable Law, pursuant to the terms of any Company Benefit Plans or in the ordinary course of
business consistent with past practice, or as reasonably necessary to replace departing employees with employees of substantially comparable
responsibility and compensation;
(vi) make
or rescind any material election relating to Taxes, settle any claim, action, suit, litigation, proceeding, arbitration, investigation,
audit or controversy relating to Taxes, file any amended Tax Return or claim for refund, or make any material change in its accounting
or Tax policies or procedures, in each case except as required by applicable Law or in compliance with GAAP;
(vii) transfer
or license to any Person or otherwise extend, materially amend or modify, permit to lapse or fail to preserve any material Company Registered
IP, Company Licensed IP or other Company IP, other than in the ordinary course of business consistent with past practice, or disclose
to any Person who has not entered into a confidentiality agreement any Trade Secrets;
(viii) terminate,
or waive or assign any material right under, any Company Material Contract or enter into any Contract that would be a Company Material
Contract, in any case outside of the ordinary course of business consistent with past practice;
(ix) fail
to maintain its books, accounts and records in all material respects in the ordinary course of business consistent with past practice;
(x) establish
any Subsidiary or enter into any new line of business;
(xi) fail
to use commercially reasonable efforts to keep in force insurance policies or replacement or revised policies providing insurance coverage
with respect to its assets, operations and activities in such amount and scope of coverage substantially similar to that which is currently
in effect;
(xii) revalue
any of its material assets or make any material change in accounting methods, principles or practices, except to the extent required
to comply with GAAP and after consulting with the Company’s outside auditors;
35
(xiii) waive,
release, assign, settle or compromise any claim, action or proceeding (including any suit, action, claim, proceeding or investigation
relating to this Agreement or the transactions contemplated hereby), other than waivers, releases, assignments, settlements or compromises
that involve only the payment of monetary damages (and not the imposition of equitable relief on, or the admission of wrongdoing by,
a Target Company or its Affiliates) not in excess of $1,000,000 (individually or in the aggregate), or otherwise pay, discharge or satisfy
any Actions, Liabilities or obligations, unless such amount has been reserved in the Company Financials;
(xiv) close
or materially reduce its activities, or effect any general layoff or other general personnel reduction or change, at any of its facilities
other than in the ordinary course of business;
(xv) acquire,
including by merger, consolidation, acquisition of equity interests or assets, or any other form of business combination, any corporation,
partnership, limited liability company, other business organization or any division thereof, or any material amount of assets outside
the ordinary course of business consistent with past practice, other than the Merger;
(xvi) make
capital expenditures in excess of $1,000,000;
(xvii) adopt
a plan of complete or partial liquidation, dissolution, merger, consolidation, restructuring, recapitalization or other reorganization;
(xviii) except
for Transaction Expenses, voluntarily incur any Liability or obligation (whether absolute, accrued, contingent or otherwise) in excess
of $ 1,000,000 other than pursuant to the terms of a Company Material Contract or Company Benefit Plan;
(xix) sell,
lease, license, transfer, exchange or swap, mortgage or otherwise pledge or encumber (including securitizations), or otherwise dispose
of any material portion of its properties, assets or rights in an amount in excess of $1,000,000 other than in the ordinary course of
business;
(xx) except
for the Ancillary Documents, enter into any agreement, understanding or arrangement with respect to the voting of equity securities of
the Company;
(xxi) take
any action that would reasonably be expected to significantly delay or impair the obtaining of any Consents of any Governmental Authority
to be obtained in connection with this Agreement;
(xxii) enter
into, amend, waive or terminate (other than terminations in accordance with their terms) any transaction with any Company Related Party,
other than compensation and benefits and advancement of expenses, in each case provided in the ordinary course of business consistent
with past practice; or
(xxiii) authorize
or agree to do any of the foregoing actions.
36
5.3 Conduct
of Business of the Purchaser.
(a) Unless
the Company shall otherwise consent in writing (such consent not to be unreasonably withheld, conditioned or delayed), during the Interim
Period, except as expressly contemplated by this Agreement or the Ancillary Documents or as set forth on Section 5.3 of the Purchaser
Disclosure Schedule, the Purchaser shall, and shall cause its Subsidiaries to, (i) conduct their respective businesses, in all material
respects, in the ordinary course of business consistent with past practice, (ii) comply with all Laws applicable to the Purchaser and
its Subsidiaries and their respective businesses, assets and employees, and (iii) take all commercially reasonable measures necessary
or appropriate to preserve intact, in all material respects, their respective business organizations, to keep available the services
of their respective managers, directors, officers, employees and consultants, and to preserve the possession, control and condition of
their respective material assets, all as consistent with past practice. Notwithstanding anything to the contrary in this Section 5.3
(except 5.3(b)(iv)), nothing in this Agreement shall prohibit or restrict Purchaser from extending, in accordance with Purchaser’s
Organizational Documents and the IPO Prospectus, the deadline by which it must complete its Business Combination (an “Extension”),
and no consent of any other Party shall be required in connection therewith.
(b) Without
limiting the generality of Section 5.3(a) and except as contemplated by the terms of this Agreement or the Ancillary Documents
(including the Conversion or as contemplated by any PIPE Investment) or as set forth on Section 5.3 of the Purchaser Disclosure
Schedule, during the Interim Period, without the prior written consent of the Company (such consent not to be unreasonably withheld,
conditioned or delayed), the Purchaser shall not, and shall cause its Subsidiaries to not:
(i) amend,
waive or otherwise change, in any respect, its Organizational Documents except as required by applicable Law;
(ii) authorize
for issuance, issue, grant, sell, pledge, dispose of or propose to issue, grant, sell, pledge or dispose of any of its equity securities
or any options, warrants, commitments, subscriptions or rights of any kind to acquire or sell any of its equity securities, or other
securities, including any securities convertible into or exchangeable for any of its equity securities or other security interests of
any class and any other equity-based awards, or engage in any hedging transaction with a third Person with respect to such securities;
(iii) split,
combine, recapitalize or reclassify any of its shares or other equity interests or issue any other securities in respect thereof or pay
or set aside any dividend or other distribution (whether in cash, equity or property or any combination thereof) in respect of its shares
or other equity interests, or directly or indirectly redeem, purchase or otherwise acquire or offer to acquire any of its securities;
(iv) incur,
create, assume, prepay or otherwise become liable for any Indebtedness (directly, contingently or otherwise) in excess of $200,000 individually
or $400,000 in the aggregate, make a loan or advance to or investment in any third party, or guarantee or endorse any Indebtedness, Liability
or obligation of any Person; provided, subject to the preceding dollar amount limitation, that further borrowings by the Purchaser of
funds necessary to finance its ordinary course administrative costs and expenses and Expenses incurred in connection with the consummation
of the Merger and the other transactions contemplated by this Agreement (including any costs and expenses necessary for an Extension
(such expenses, “Extension Expenses”) in addition to those exiting as of the date hereof shall require the
consent of the Company;
(v) make
or rescind any material election relating to Taxes, settle any claim, action, suit, litigation, proceeding, arbitration, investigation,
audit or controversy relating to Taxes, file any amended Tax Return or claim for refund, or make any material change in its accounting
or Tax policies or procedures, in each case except as required by applicable Law or in compliance with GAAP;
37
(vi) amend,
waive or otherwise change the Trust Agreement in any manner adverse to the Purchaser;
(vii) terminate,
waive or assign any material right under any Purchaser Material Contract;
(viii) fail
to maintain its books, accounts and records in all material respects in the ordinary course of business consistent with past practice;
(ix) establish
any Subsidiary or enter into any new line of business;
(x) fail
to use commercially reasonable efforts to keep in force insurance policies or replacement or revised policies providing insurance coverage
with respect to its assets, operations and activities in such amount and scope of coverage substantially similar to that which is currently
in effect;
(xi) revalue
any of its material assets or make any material change in accounting methods, principles or practices, except to the extent required
to comply with GAAP and after consulting the Purchaser’s outside auditors;
(xii) waive,
release, assign, settle or compromise any claim, action or proceeding (including any suit, action, claim, proceeding or investigation
relating to this Agreement or the transactions contemplated hereby), other than waivers, releases, assignments, settlements or compromises
that involve only the payment of monetary damages (and not the imposition of equitable relief on, or the admission of wrongdoing by,
the Purchaser or its Subsidiary) not in excess of $200,000 (individually or in the aggregate), or otherwise pay, discharge or satisfy
any Actions, Liabilities or obligations, unless such amount has been reserved in the Purchaser Financials;
(xiii) acquire,
including by merger, consolidation, acquisition of equity interests or assets, or any other form of business combination, any corporation,
partnership, limited liability company, other business organization or any division thereof, or any material amount of assets outside
the ordinary course of business;
(xiv) make
capital expenditures in excess of $200,000 individually for any project (or set of related projects) or $400,000 in the aggregate (excluding
for the avoidance of doubt, incurring any Expenses);
(xv) adopt
a plan of complete or partial liquidation, dissolution, merger, consolidation, restructuring, recapitalization or other reorganization
(other than with respect to the Merger);
(xvi) voluntarily
incur any Liability or obligation (whether absolute, accrued, contingent or otherwise) in excess of $200,000 individually or $400,000
in the aggregate (excluding the incurrence of any Expenses) other than pursuant to the terms of a Contract in existence as of the date
of this Agreement or entered into in the ordinary course of business or in accordance with the terms of this Section 5.3 during
the Interim Period;
38
(xvii) sell,
lease, license, transfer, exchange or swap, mortgage or otherwise pledge or encumber (including securitizations), or otherwise dispose
of any material portion of its properties, assets or rights;
(xviii) enter
into any agreement, understanding or arrangement with respect to the voting of Purchaser Securities;
(xix) enter
into, amend, waive or terminate (other than terminations in accordance with their terms) any transaction with any SPAC Related Person
(other than compensation and benefits and advancement of expenses, in each case, provided in the ordinary course of business consistent
with past practice); or
(xx) take
any action that would reasonably be expected to significantly delay or impair the obtaining of any Consents of any Governmental Authority
to be obtained in connection with this Agreement; or
(xxi) authorize
or agree to do any of the foregoing actions.
5.4
Interim Financials.
During the Interim Period, within thirty (30) calendar days following the end of each three-month quarterly period and within forty-five
(45) calendar days following the end of each fiscal year, the Company shall deliver to the Purchaser an unaudited consolidated income
statement and an unaudited consolidated balance sheet of the Target Companies for the period from the Balance Sheet Date through the
end of such quarterly period or fiscal year and the applicable comparative period in the preceding fiscal year, in each case accompanied
by a certificate of the Chief Financial Officer of the Company to the effect that all such financial statements fairly present the consolidated
financial position and results of operations of the Target Companies as of the date or for the periods indicated, in accordance with
GAAP, subject to year-end audit adjustments and excluding footnotes.
5.5
Purchaser Public Filings.
During the Interim Period, the Purchaser will keep current and timely file all of its public filings with the SEC and otherwise comply
in all material respects with applicable securities Laws and shall prior to the Closing maintain the listing of the Purchaser Ordinary
Shares and the Purchaser Rights on NYSE; provided, that the Parties acknowledge and agree that from and after the Closing, the
Parties intend to list on NYSE only the Purchaser Class A Common Stock and the Purchaser Public Rights.
5.6 No
Solicitation.
(a) For
purposes of this Agreement, (i) an “Acquisition Proposal” means any inquiry, proposal or offer, or any indication
of interest in making an offer or proposal, from any Person or group at any time relating to an Alternative Transaction, and (ii) an
“Alternative Transaction” means (A) with respect to the Company and its Affiliates, a transaction (other than
the transactions contemplated by this Agreement) concerning the sale of (x) all or any material part of the business or assets of the
Target Companies (other than in the ordinary course of business consistent with past practice) or (y) any of the shares or other equity
interests or profits of the Target Companies, in any case, whether such transaction takes the form of a sale of shares or other equity
interests, assets, merger, consolidation, issuance of debt securities, management Contract, joint venture or partnership, or otherwise
and (B) with respect to the Purchaser and its Affiliates, a transaction (other than the transactions contemplated by this Agreement)
concerning a Business Combination.
39
(b) During
the Interim Period, in order to induce the other Parties to continue to commit to expend management time and financial resources in furtherance
of the transactions contemplated hereby, each Party shall not, and shall cause its Representatives to not, without the prior written
consent of the Company and the Purchaser, directly or indirectly, (i) solicit, assist, initiate or facilitate the making, submission
or announcement of, or intentionally encourage, any Acquisition Proposal, (ii) furnish any non-public information regarding such Party
or its Affiliates or their respective businesses, operations, assets, Liabilities, financial condition, prospects or employees to any
Person or group (other than a Party to this Agreement or their respective Representatives) in connection with or in response to an Acquisition
Proposal, (iii) engage or participate in discussions or negotiations with any Person or group with respect to, or that could reasonably
be expected to lead to, an Acquisition Proposal, (iv) approve, endorse or recommend, or publicly propose to approve, endorse or recommend,
any Acquisition Proposal, (v) negotiate or enter into any letter of intent, agreement in principle, acquisition agreement or other similar
agreement related to any Acquisition Proposal, or (vi) release any third Person from, or waive any provision of, any confidentiality
agreement to which such Party is a party.
(c) Each
Party shall notify the others as promptly as practicable (and in any event within 48 hours) in writing of the receipt by such Party or
any of its Representatives of (i) any bona fide inquiries, proposals or offers, requests for information or requests for discussions
or negotiations regarding or constituting any Acquisition Proposal or any bona fide inquiries, proposals or offers, requests for information
or requests for discussions or negotiations that could be expected to result in an Acquisition Proposal, and (ii) any request for non-public
information relating to such Party or its Affiliates in connection with any Acquisition Proposal, specifying in each case, the material
terms and conditions thereof (including a copy thereof if in writing or a written summary thereof if oral) and the identity of the party
making such inquiry, proposal, offer or request for information. Each Party shall keep the others promptly informed of the status of
any such inquiries, proposals, offers or requests for information. During the Interim Period, each Party shall, and shall cause its Representatives
to, immediately cease and cause to be terminated any solicitations, discussions or negotiations with any Person with respect to any Acquisition
Proposal and shall, and shall direct its Representatives to, cease and terminate any such solicitations, discussions or negotiations.
5.7 No
Trading. Each Party acknowledges and agrees that it is aware, and its Affiliates are aware (and each of their respective Representatives
is aware or, upon receipt of any material nonpublic information of the Purchaser, will be advised) of the restrictions imposed by U.S.
federal securities laws and the rules and regulations of the SEC and NYSE promulgated thereunder or otherwise (the “Federal
Securities Laws”) and other applicable foreign and domestic Laws on a Person possessing material nonpublic information
about a publicly traded company. Each Party hereby agrees that, while it is in possession of such material nonpublic information, it
shall not purchase or sell any securities of the Purchaser (other than to engage in the Merger in accordance with Article I),
communicate such information to any third party, take any other action with respect to the Purchaser in violation of such Laws, or cause
or encourage any third party to do any of the foregoing.
5.8 Notification
of Certain Matters. During the Interim Period, each Party shall give prompt notice to the other Parties if such Party or its Affiliates:
(a) fails to comply with or satisfy any covenant, condition or agreement to be complied with or satisfied by it or its Affiliates hereunder
in any material respect; (b) receives any notice or other communication in writing from any third party (including any Governmental Authority)
alleging (i) that the Consent of such third party is or may be required in connection with the transactions contemplated by this Agreement
or (ii) any non-compliance with any Law by such Party or its Affiliates; (c) receives any notice or other communication from any Governmental
Authority in connection with the transactions contemplated by this Agreement; (d) discovers any fact or circumstance that, or becomes
aware of the occurrence or non-occurrence of any event the occurrence or non-occurrence of which, would reasonably be expected to cause
or result in any of the conditions to the Closing set forth in Article VI not being satisfied or the satisfaction of those conditions
being materially delayed; or (e) becomes aware of the commencement or threat, in writing, of any Action against such Party or any of
its Affiliates, or any of their respective properties or assets, or, to the Knowledge of such Party, any officer, director, partner,
member or manager, in his, her or its capacity as such, of such Party or of its Affiliates with respect to the consummation of the transactions
contemplated by this Agreement. No such notice shall constitute an acknowledgement or admission by the Party providing the notice regarding
whether or not any of the conditions to the Closing have been satisfied or in determining whether or not any of the representations,
warranties or covenants contained in this Agreement have been breached.
40
5.9 Efforts.
(a) Subject
to the terms and conditions of this Agreement, each Party shall use its reasonable efforts, and shall cooperate fully with the other
Parties, to take, or cause to be taken, all actions and to do, or cause to be done, all things reasonably necessary, proper or advisable
under applicable Laws and regulations to consummate the transactions contemplated by this Agreement (including the receipt of all applicable
Consents of Governmental Authorities) and to comply as promptly as practicable with all requirements of Governmental Authorities applicable
to the transactions contemplated by this Agreement.
(b) In
furtherance and not in limitation of Section 5.9(a), to the extent required under any Laws that are designed to prohibit, restrict
or regulate actions having the purpose or effect of monopolization or restraint of trade (“Antitrust Laws”),
each Party hereto agrees to make any required filing or application under Antitrust Laws, with each of the Purchaser and the Company
bearing fifty percent (50%) of the costs and expenses thereof, with respect to the transactions contemplated hereby as promptly as practicable,
to supply as promptly as reasonably practicable any additional information and documentary material that may be reasonably requested
pursuant to Antitrust Laws and to take all other actions reasonably necessary, proper or advisable to cause the expiration or termination
of the applicable waiting periods under Antitrust Laws as soon as practicable, including by requesting early termination of the waiting
period provided for under the Antitrust Laws. Each Party shall, to the extent permitted by applicable Laws, in connection with its efforts
to obtain all requisite approvals and authorizations for the transactions contemplated by this Agreement under any Antitrust Law, use
its commercially reasonable efforts to: (i) cooperate in all respects with each other Party or its Affiliates in connection with any
filing or submission and in connection with any investigation or other inquiry, including any proceeding initiated by a private Person;
(ii) keep the other Parties reasonably informed of any communication received by such Party or its Representatives from, or given by
such Party or its Representatives to, any Governmental Authority and of any communication received or given in connection with any proceeding
by a private Person, in each case regarding any of the transactions contemplated by this Agreement; (iii) permit a Representative of
the other Parties and their respective outside counsel to review any communication given by it to, and consult with each other in advance
of any meeting or conference with, any Governmental Authority or, in connection with any proceeding by a private Person, with any other
Person, and to the extent permitted by such Governmental Authority or other Person, give a Representative or Representatives of the other
Parties the opportunity to attend and participate in such meetings and conferences; (iv) in the event a Party’s Representative
is prohibited from participating in or attending any meetings or conferences, the other Parties shall keep such Party promptly and reasonably
apprised with respect thereto; and (v) use commercially reasonable efforts to cooperate in the filing of any memoranda, white papers,
filings, correspondence or other written communications explaining or defending the transactions contemplated hereby, articulating any
regulatory or competitive argument, and/or responding to requests or objections made by any Governmental Authority.
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(c) As
soon as reasonably practicable following the date of this Agreement, the Parties shall reasonably cooperate with each other and use (and
shall cause their respective Affiliates to use) their respective commercially reasonable efforts to prepare and file with Governmental
Authorities requests for approval of the transactions contemplated by this Agreement and shall use all commercially reasonable efforts
to have such Governmental Authorities approve the transactions contemplated by this Agreement. Each Party shall give prompt written notice
to the other Parties if such Party or any of its Representatives receives any notice from such Governmental Authorities in connection
with the transactions contemplated by this Agreement, and shall promptly furnish the other Parties with a copy of such Governmental Authority
notice. If any Governmental Authority requires that a hearing or meeting be held in connection with its approval of the transactions
contemplated hereby, whether prior to the Closing or after the Closing, each Party shall arrange for Representatives of such Party to
be present for such hearing or meeting. If any objections are asserted with respect to the transactions contemplated by this Agreement
under any applicable Law or if any Action is instituted (or threatened to be instituted) by any applicable Governmental Authority or
any private Person challenging any of the transactions contemplated by this Agreement or any Ancillary Document as violative of any applicable
Law or which would otherwise prevent, materially impede or materially delay the consummation of the transactions contemplated hereby
or thereby, the Parties shall use their commercially reasonable efforts to resolve any such objections or Actions so as to timely permit
consummation of the transactions contemplated by this Agreement and the Ancillary Documents, including in order to resolve such objections
or Actions which, in any case if not resolved, could reasonably be expected to prevent, materially impede or materially delay the consummation
of the transactions contemplated hereby or thereby. In the event any Action is instituted (or threatened to be instituted) by a Governmental
Authority or private Person challenging the transactions contemplated by this Agreement, or any Ancillary Document, the Parties shall,
and shall cause their respective Representatives to, reasonably cooperate with each other and use their respective commercially reasonable
efforts to contest and resist any such Action and to have vacated, lifted, reversed or overturned any Order, whether temporary, preliminary
or permanent, that is in effect and that prohibits, prevents or restricts consummation of the transactions contemplated by this Agreement
or the Ancillary Documents.
(d) Prior
to the Closing, each Party shall use its commercially reasonable efforts to obtain any Consents of Governmental Authorities or other
third Persons as may be necessary for the consummation by such Party or its Affiliates of the transactions contemplated by this Agreement
or required as a result of the execution or performance of, or consummation of the transactions contemplated by, this Agreement by such
Party or its Affiliates, and the other Parties shall provide reasonable cooperation in connection with such efforts.
5.10 Tax
Matters. Each of the Parties shall use its reasonable best efforts to cause the Merger to qualify as a “reorganization”
within the meaning of Section 368(a) of the Code. None of the Parties shall (and each of the Parties shall cause their respective Subsidiaries
not to) take any action, or fail to take any action, that could reasonably be expected to cause the Merger to fail to qualify as a “reorganization”
within the meaning of Section 368(a) of the Code. The Parties intend to report and, except to the extent otherwise required by Law, shall
report, for federal income tax purposes, the Merger as a “reorganization” within the meaning of Section 368(a) of the Code.
5.11 Further
Assurances. The Parties hereto shall further cooperate with each other and use their respective commercially reasonable efforts to
take or cause to be taken all actions, and do or cause to be done all things, necessary, proper or advisable on their part under this
Agreement and applicable Laws to consummate the transactions contemplated by this Agreement as soon as reasonably practicable, including
preparing and filing as soon as practicable all documentation to effect all necessary notices, reports and other filings.
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5.12 The
Registration Statement.
(a) As
promptly as practicable after the date hereof, the Purchaser shall prepare with the reasonable assistance of the Company, and file with
the SEC a registration statement on Form S-4 (as amended or supplemented from time to time, and including the Proxy Statement contained
therein, the “Registration Statement”) in connection with the registration under the Securities Act of the
Purchaser Common Stock to be issued under this Agreement as the Merger Consideration, which Registration Statement will also contain
a proxy statement (as amended, the “Proxy Statement”) for the purpose of soliciting proxies from Purchaser
shareholders for the matters to be acted upon at the Purchaser Special Meeting and providing the Public Shareholders an opportunity in
accordance with the Purchaser’s Organizational Documents and the IPO Prospectus to have their Purchaser Ordinary Shares redeemed
(the “Redemption”) in conjunction with the shareholder vote on the Purchaser Shareholder Approval Matters.
The Proxy Statement shall include proxy materials for the purpose of soliciting proxies from Purchaser Shareholders to vote, at an extraordinary
general meeting of Purchaser shareholders to be called and held for such purpose (the “Purchaser Special Meeting”),
in favor of resolutions approving (i) the adoption and approval of this Agreement and the transactions contemplated hereby or referred
to herein, including the Merger and the Conversion, by the holders of Purchaser Ordinary Shares in accordance with the Purchaser’s
Organizational Documents, the Companies Act, the DGCL and the rules and regulations of the SEC and NYSE, (ii) the approval of the Conversion,
including the adoption and approval of the Conversion Organizational Documents, and any separate or unbundled advisory proposals as are
required to implement the foregoing, (iii) adoption and approval of the Amended Purchaser Organizational Documents, and any separate
or unbundled advisory proposals as are required to implement the foregoing, and (iv) such other matters as the Company and Purchaser
shall hereafter mutually determine to be necessary or appropriate in order to effect the Merger and the other transactions contemplated
by this Agreement (the approvals described in foregoing clauses (i) through (iv), collectively, the “Purchaser Shareholder
Approval Matters”), and (v) the adjournment of the Purchaser Special Meeting, if necessary or desirable in the reasonable
determination of Purchaser. If on the date for which the Purchaser Special Meeting is scheduled, Purchaser has not received proxies representing
a sufficient number of shares to obtain the Required Purchaser Shareholder Approval, whether or not a quorum is present, Purchaser may
make one or more successive postponements or adjournments of the Purchaser Special Meeting. In connection with the Registration Statement,
Purchaser will file with the SEC financial and other information about the transactions contemplated by this Agreement in accordance
with applicable Law and applicable proxy solicitation and registration statement rules set forth in the Purchaser’s Organizational
Documents, the Companies Act, the DGCL and the rules and regulations of the SEC and NYSE. Purchaser shall cooperate and provide the Company
(and its counsel) with a reasonable opportunity to review and comment on the Registration Statement and any amendment or supplement thereto
prior to filing the same with the SEC. The Company shall provide Purchaser with such information concerning the Target Companies and
their stockholders, officers, directors, employees, assets, Liabilities, condition (financial or otherwise), business and operations
that may be required or appropriate for inclusion in the Registration Statement, or in any amendments or supplements thereto, which information
provided by the Company shall be true and correct and not contain any untrue statement of a material fact or omit to state a material
fact necessary in order to make the statements made, in light of the circumstances under which they were made, not materially misleading.
(b) Purchaser
shall take any and all reasonable and necessary actions required to satisfy the requirements of the Securities Act, the Exchange Act
and other applicable Laws in connection with the Registration Statement, the Purchaser Special Meeting and the Redemption. Each of Purchaser
and the Company shall, and shall cause each of its Subsidiaries to, make their respective directors, officers and employees, upon reasonable
advance notice, available to the Company, Purchaser and, after the Closing, the Purchaser Representative, and their respective Representatives
in connection with the drafting of the public filings with respect to the transactions contemplated by this Agreement, including the
Registration Statement, and responding in a timely manner to comments from the SEC. Each Party shall promptly correct any information
provided by it for use in the Registration Statement (and other related materials) if and to the extent that such information is determined
to have become false or misleading in any material respect or as otherwise required by applicable Laws. Purchaser shall amend or supplement
the Registration Statement and cause the Registration Statement, as so amended or supplemented, to be filed with the SEC and to be disseminated
to Purchaser Shareholders, in each case as and to the extent required by applicable Laws and subject to the terms and conditions of this
Agreement and the Purchaser’s Organizational Documents.
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(c) Purchaser,
with the assistance of the other Parties, shall promptly respond to any SEC comments on the Registration Statement and shall otherwise
use its commercially reasonable efforts to cause the Registration Statement to “clear” comments from the SEC and become effective.
Purchaser shall provide the Company with copies of any written comments, and shall inform the Company of any material oral comments,
that Purchaser or its Representatives receive from the SEC or its staff with respect to the Registration Statement, the Purchaser Special
Meeting and the Redemption promptly after the receipt of such comments and shall give the Company a reasonable opportunity under the
circumstances to review and comment on any proposed written or material oral responses to such comments.
(d) As
soon as practicable following the Registration Statement “clearing” comments from the SEC and becoming effective, Purchaser
shall distribute the Registration Statement to Purchaser’s shareholders and the Company Stockholders, and, pursuant thereto, shall
call the Purchaser Special Meeting in accordance with the Companies Act for a date no later than thirty (30) days following the effectiveness
of the Registration Statement.
(e) Purchaser
shall comply with all applicable Laws, any applicable rules and regulations of NYSE, Purchaser’s Organizational Documents and this
Agreement in the preparation, filing and distribution of the Registration Statement, any solicitation of proxies thereunder, the calling
and holding of the Purchaser Special Meeting and the Redemption.
5.13 Company
Stockholder Meeting. As promptly as practicable after the Registration Statement has become effective, the Company will call a meeting
of its stockholders in order to obtain the Required Company Stockholder Approval (the “Company Special Meeting”),
and the Company shall use its reasonable best efforts to solicit from the Company Stockholders proxies in favor of the Required Company
Stockholder Approval prior to such Company Special Meeting, and to take all other actions necessary or advisable to secure the Required
Company Stockholder Approval, including enforcing the Voting Agreements.
5.14 Public
Announcements.
(a) The
Parties agree that during the Interim Period no public release, filing or announcement concerning this Agreement or the Ancillary Documents
or the transactions contemplated hereby or thereby shall be issued by any Party or any of their Affiliates without the prior written
consent of the Purchaser and the Company (which consent shall not be unreasonably withheld, conditioned or delayed), except as such release
or announcement may be required by applicable Law or the rules or regulations of any securities exchange, in which case the applicable
Party shall use commercially reasonable efforts to allow the other Parties reasonable time to comment on, and arrange for any required
filing with respect to, such release or announcement in advance of such issuance.
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(b) The
Parties shall mutually agree upon and, as promptly as practicable after the execution of this Agreement (but in any event within four
(4) Business Days thereafter), issue a press release announcing the execution of this Agreement (the “Signing Press Release”).
Promptly after the issuance of the Signing Press Release, the Purchaser shall file a current report on Form 8-K (the “Signing
Filing”) with the Signing Press Release and a description of this Agreement as required by Federal Securities Laws, which
the Company shall review, comment upon and approve (which approval shall not be unreasonably withheld, conditioned or delayed) prior
to filing (with the Company reviewing, commenting upon and approving such Signing Filing in any event no later than the third (3rd)
Business Day after the execution of this Agreement). The Parties shall mutually agree upon and, as promptly as practicable after the
Closing (but in any event within four (4) Business Days thereafter), issue a press release announcing the consummation of the transactions
contemplated by this Agreement (the “Closing Press Release”). Promptly after the issuance of the Closing Press
Release, the Purchaser shall file a current report on Form 8-K (the “Closing Filing”) with the Closing Press
Release and a description of the Closing as required by Federal Securities Laws which the Company Representativeand the Purchaser Representative
shall review, comment upon and approve (which approval shall not be unreasonably withheld, conditioned or delayed) prior to filing. In
connection with the preparation of the Signing Press Release, the Signing Filing, the Closing Filing, the Closing Press Release, or any
other report, statement, filing notice or application made by or on behalf of a Party to any Governmental Authority or other third party
in connection with the transactions contemplated hereby, each Party shall, upon request by any other Party, furnish the Parties with
all information concerning themselves, their respective directors, officers and equity holders, and such other matters as may be reasonably
necessary or advisable in connection with the transactions contemplated hereby, or any other report, statement, filing, notice or application
made by or on behalf of a Party to any third party and/ or any Governmental Authority in connection with the transactions contemplated
hereby.
5.15 Confidential
Information.
(a) The
Company and the Company Representative hereby agrees that during the Interim Period and, in the event that this Agreement is terminated
in accordance with Article VII, for a period of two (2) years after such termination, they shall, and shall cause their respective Representatives
to: (i) treat and hold in strict confidence any Purchaser Confidential Information, and will not use 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, enforcing their rights hereunder or thereunder, or in furtherance of their authorized duties on behalf of the Purchaser
or its Subsidiaries), nor directly or indirectly disclose, distribute, publish, disseminate or otherwise make available to any third
party any of the Purchaser Confidential Information without the Purchaser’s prior written consent; and (ii) in the event that the
Company, the Company Representative or any of their respective Representatives, during the Interim Period or, in the event that this
Agreement is terminated in accordance with Article VII, for a period of two (2) years after such termination, becomes legally compelled
to disclose any Purchaser Confidential Information, (A) provide the Purchaser to the extent legally permitted with prompt written notice
of such requirement so that the Purchaser or an Affiliate thereof may seek, at Purchaser’s cost, a protective Order or other remedy
or waive compliance with this Section 5.15(a), and (B) in the event that such protective Order or other remedy is not obtained,
or the Purchaser waives compliance with this Section 5.15(a), furnish only that portion of such Purchaser Confidential Information
which is legally required to be provided as advised in writing by outside counsel and to exercise its commercially reasonable efforts
to obtain assurances that confidential treatment will be accorded such Purchaser Confidential Information. In the event that this Agreement
is terminated and the transactions contemplated hereby are not consummated, the Company and the Company Representative shall, and shall
cause their respective Representatives to, promptly deliver to the Purchaser or destroy (at Purchaser’s election) any and all copies
(in whatever form or medium) of Purchaser Confidential Information and destroy all notes, memoranda, summaries, analyses, compilations
and other writings related thereto or based thereon; provided, however, that the Company and the Company Representativeand their respective
Representatives shall be entitled to keep any records required by applicable Law or bona fide record retention policies; and provided,
further, that any Purchaser Confidential Information that is not returned or destroyed shall remain subject to the confidentiality obligations
set forth in this Agreement.
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(b) The
Purchaser hereby agrees that during the Interim Period and, in the event that this Agreement is terminated in accordance with Article
VII, for a period of two (2) years after such termination, it shall, and shall cause its Representatives to: (i) treat and hold in
strict confidence any Company Confidential Information, and will not use for any purpose (except in connection with the consummation
of the transactions contemplated by this Agreement or the Ancillary Documents, performing its obligations hereunder or thereunder or
enforcing its rights hereunder or thereunder), nor directly or indirectly disclose, distribute, publish, disseminate or otherwise make
available to any third party any of the Company Confidential Information without the Company’s prior written consent; and (ii)
in the event that the Purchaser or any of its Representatives, during the Interim Period or, in the event that this Agreement is terminated
in accordance with Article VII, for a period of two (2) years after such termination, becomes legally compelled to disclose any
Company Confidential Information, (A) provide the Company to the extent legally permitted with prompt written notice of such requirement
so that the Company may seek, at the Company’s sole expense, a protective Order or other remedy or waive compliance with this Section
5.15(b) and (B) in the event that such protective Order or other remedy is not obtained, or the Company waives compliance with this
Section 5.15(b), furnish only that portion of such Company Confidential Information which is legally required to be provided as
advised in writing by outside counsel and to exercise its commercially reasonable efforts to obtain assurances that confidential treatment
will be accorded such Company Confidential Information. In the event that this Agreement is terminated and the transactions contemplated
hereby are not consummated, the Purchaser shall, and shall cause its Representatives to, promptly deliver to the Company or destroy (at
the Company’s election) any and all copies (in whatever form or medium) of Company Confidential Information and destroy all notes,
memoranda, summaries, analyses, compilations and other writings related thereto or based thereon; provided, however, that the Purchaser
and its Representatives shall be entitled to keep any records required by applicable Law or bona fide record retention policies; and
provided, further, that any Company Confidential Information that is not returned or destroyed shall remain subject to the confidentiality
obligations set forth in this Agreement. Notwithstanding the foregoing, the Purchaser and its Representatives shall be permitted to disclose
any and all Company Confidential Information to the extent required by the Federal Securities Laws in connection with the Registration
Statements Proxy Statement and other SEC Filings, subject to the Company’s prompt review and reasonable comments on such disclosure.
5.16 Documents
and Information. After the Closing Date, the Purchaser and the Company shall, and shall cause their respective Subsidiaries to, until
the seventh (7th) anniversary of the Closing Date, retain all books, records and other documents pertaining to the business
of the Target Companies in existence on the Closing Date and make the same available for inspection and copying by the Purchaser Representative
during normal business hours of the Company and its Subsidiaries, as applicable, upon reasonable request and upon reasonable notice.
No such books, records or documents shall be destroyed after the seventh (7th) anniversary of the Closing Date by the Purchaser
or its Subsidiaries (including any Target Company) without first advising the Purchaser Representative in writing and giving the Purchaser
Representative a reasonable opportunity to obtain possession thereof.
5.17 Post-Closing
Board of Directors and Executive Officers.
(a) The
Parties shall take all necessary action, including causing the directors of the Purchaser to resign, so that effective as of the Closing,
the Purchaser’s board of directors (the “Post-Closing Purchaser Board”) will consist of five (5) individuals.
Immediately after the Closing, the Parties shall take all necessary action to designate and appoint to the Post-Closing Purchaser Board
(i) the one (1) person that is designated by the Purchaser prior to the Closing (the “Purchaser Director”),
and (ii) four (4) persons that are designated by the Company prior to the Closing (the “Company Directors”),
at least two (2) of whom shall be required to qualify as independent directors under NYSE rules. The board of directors of the Surviving
Corporation immediately after the Closing shall be the same as the board of directors of the Company immediately prior to the Closing.
At or prior to the Closing, the Purchaser will provide each director with a customary director indemnification agreement, in form and
substance reasonably acceptable to such director.
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(b) The
Parties shall take all action necessary, including causing the executive officers of Purchaser to resign, so that the individuals serving
as the chief executive officer and chief financial officer, respectively, of Purchaser immediately after the Closing will be the same
individuals (in the same office) as that of the Company immediately prior to the Closing (unless, at its sole discretion, the Company
desires to appoint another qualified person to either such role, in which case, such other person identified by the Company shall serve
in such role).
5.18 Indemnification
of Directors and Officers; Tail Insurance.
(a) The
Parties agree that all rights to exculpation, indemnification and advancement of expenses existing in favor of the current or former
directors and officers of the Purchaser, Merger Sub or the Company and each Person who served as a director, officer, member, trustee
or fiduciary of another corporation, partnership, joint venture, trust, pension or other employee benefit plan or enterprise at the request
of the Purchaser, Merger Sub or the Company (the “D&O Indemnified Persons”) as provided in their respective
Organizational Documents or under any indemnification, employment or other similar agreements between any D&O Indemnified Person
and the Purchaser, Merger Sub or the Company, in each case as in effect on the date of this Agreement, shall survive the Closing and
continue in full force and effect in accordance with their respective terms to the extent permitted by applicable Law. For a period of
six (6) years after the Effective Time, the Purchaser shall cause the Organizational Documents of the Purchaser and the Surviving Corporation
to contain provisions no less favorable with respect to exculpation and indemnification of and advancement of expenses to D&O Indemnified
Persons than are set forth as of the date of this Agreement in the Organizational Documents of the Purchaser, Merger Sub and the Company
to the extent permitted by applicable Law. The provisions of this Section 5.18 shall survive the consummation of the Merger and
are intended to be for the benefit of, and shall be enforceable by, each of the D&O Indemnified Persons and their respective heirs
and representatives.
(b) For
the benefit of the Purchaser’s and Merger Sub’s directors and officers, the Purchaser shall be permitted prior to the Effective
Time to obtain and fully pay the premium for a “tail” insurance policy that provides coverage for up to a six-year period
from and after the Effective Time for events occurring prior to the Effective Time (the “D&O Tail Insurance”)
that is substantially equivalent to and in any event not less favorable in the aggregate than the Purchaser’s existing policy or,
if substantially equivalent insurance coverage is unavailable, the best available coverage; provided that the premium for such D&O
Tail Insurance shall not exceed 300% of the last annual premium paid for the existing policy. If obtained, the Purchaser shall maintain
the D&O Tail Insurance in full force and effect, and continue to honor the obligations thereunder, and the Purchaser shall timely
pay or caused to be paid all premiums with respect to the D&O Tail Insurance.
(c) In
the event Purchaser or Merger Sub or any of their respective successors or assigns (i) consolidates with or merges into any other Person
and shall not be the continuing or surviving 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, proper provision shall be made so that the successors and
assigns of Purchaser or Merger Sub (or their respective successors and assigns), as applicable, assume in writing the obligations set
forth in this Section 5.18.
5.19 Trust
Account Proceeds. The Parties agree that after the Closing, the funds in the Trust Account, after being used for payments for the
Redemption, and any proceeds received by Purchaser from any investment shall first be used to pay (i) the Purchaser’s accrued and
unpaid Expenses, including the premiums for the D&O Tail Insurance (subject to Section 5.18), (ii) the Purchaser’s deferred
Expenses (including cash amounts payable to the IPO Underwriter and any legal fees) of the IPO, (iii) any loans owed by the Purchaser
to the Sponsor for any Expenses (including Extension Expenses) for administrative costs and expenses incurred by or on behalf of the
Purchaser, (iv) any unpaid Transaction Expenses of the Company and, (v) any other Liabilities of the Purchaser as of the Closing. Such
Expenses, as well as any Expenses that are required to be paid by delivery of the Purchaser’s securities, will be paid at the Closing.
Any remaining cash will be used for working capital and general corporate purposes of the Purchaser and the Surviving Corporation.
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5.20
Extension of Business Combination Deadline. If the Closing has not occurred by the date that is 30 Business Days prior to the
then-applicable deadline by which the Purchaser must consummate a Business Combination pursuant to the Purchaser’s Organizational
Documents (the “Business Combination Deadline”), upon the request of the Company, the Purchaser shall, and
shall cause the Sponsor to, take all actions necessary to extend the Business Combination Deadline in accordance with the Purchaser’s
Organizational Documents and the IPO Prospectus, including (a) depositing or causing to be deposited into the Trust Account such funds
as are required pursuant to the Purchaser’s Organizational Documents to effectuate such Extension, and (b) filing or causing to
be filed all documents and taking all actions necessary to effectuate such Extension; provided, that the Purchaser shall not be required
to effectuate more than two (2) Extensions in the aggregate.
5.21
Due Diligence Period. The Company and the Purchaser agree that Purchaser shall have until 5:00 p.m. on December 19, 2026, to conduct
additional legal due diligence and review of the Company Disclosure Schedules (the “Due Diligence Period”)
on the Target Companies to determine whether its due diligence findings or any disclosure on the Company Disclosure Schedules is reasonably
likely to have a material negative impact on the business of the Surviving Corporation as determined by Purchaser in its sole discretion
and in such event Purchaser in its discretion may elect not to proceed with the transaction contemplated by this Agreement. If Purchaser
does not terminate the transaction contemplated by this Agreement before the end of the Due Diligence Period, the Purchaser shall be
deemed to have elected to proceed with this transaction unless this Agreement is terminated otherwise in accordance with this Agreement.
No such investigation (or any disclosure made at any time by the Company to the Purchaser) shall limit or modify in any way, or act or
result in a waiver of, any the Company’s obligations with respect to any breach of its representations, warranties, covenants or
agreements contained herein (including, without limitation, conditions to Closing or indemnification obligations).
Article
VI
CLOSING
CONDITIONS
6.1 Conditions
to Each Party’s Obligations. The obligations of each Party to consummate the Merger and the other transactions described herein
shall be subject to the satisfaction or written waiver (where permissible) by the Company and the Purchaser of the following conditions:
(a) Required
Purchaser Shareholder Approval. The Purchaser Shareholder Approval Matters that are submitted to the vote of the shareholders of
the Purchaser at the Purchaser Special Meeting in accordance with the Proxy Statement shall have been approved by the requisite vote
of the shareholders of the Purchaser at the Purchaser Special Meeting in accordance with the Purchaser’s Organizational Documents,
applicable Law and the Proxy Statement (the “Required Purchaser Shareholder Approval”).
(b) Required
Company Stockholder Approval. The Company Special Meeting shall have been held in accordance with the DGCL and the Company’s
Organizational Documents, and at such meeting, the requisite vote of the Company Stockholders (including any separate class or series
vote that is required, whether pursuant to the Company’s Organizational Documents, any stockholder agreement or otherwise) shall
have authorized, approved and consented to, the execution, delivery and performance of this Agreement and each of the Ancillary Documents
to which the Company is or is required to be a party or bound, and the consummation of the transactions contemplated hereby and thereby,
including the Merger (the “Required Company Stockholder Approval”).
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(c) Antitrust
Laws. Any waiting period (and any extension thereof) applicable to the consummation of this Agreement under any Antitrust Laws shall
have expired or been terminated.
(d) Requisite
Regulatory Approvals. All Consents required to be obtained from or made with any Governmental Authority in order to consummate the
transactions contemplated by this Agreement set forth in Schedule 6.1(d) shall have each been obtained or made.
(e) Requisite
Consents. The Consents required to be obtained from or made with any third Person (other than a Governmental Authority) in order
to consummate the transactions contemplated by this Agreement that are set forth in Schedule 6.1(e) shall have each been obtained
or made.
(f) No
Adverse Law or Order. No Governmental Authority shall have enacted, issued, promulgated, enforced or entered any Law (whether temporary,
preliminary or permanent) or Order that is then in effect and which has the effect of making the transactions or agreements contemplated
by this Agreement illegal or which otherwise prevents or prohibits consummation of the transactions contemplated by this Agreement.
(g) Net
Tangible Assets Test. Upon the Closing, after giving effect to the Redemption, the Purchaser shall have net tangible assets of at
least $5,000,001.
(h) Purchaser
Conversion. The Conversion shall have been consummated in accordance with Section 1.1.
(i) Appointment
to the Board. The members of the Post-Closing Purchaser Board shall have been elected or appointed as of the Closing consistent with
the requirements of Section 5.17.
(j) Registration
Statement. The Registration Statement shall have been declared effective by the SEC and shall remain effective as of the Closing,
and no stop order or similar order shall be in effect with respect to the Registration Statement.
(k) Stock
Exchange Listing. The shares of Purchaser Class A Common Stock to be issued as Merger Consideration pursuant to this Agreement shall
have been approved for listing on the NYSE, or alternatively, if mutually agreed by the Purchaser and the Company, such shares shall
have been approved for listing on the Nasdaq .
6.2 Conditions
to Obligations of the Company. In addition to the conditions specified in Section 6.1, the obligations of the Company to consummate
the Merger and the other transactions contemplated by this Agreement are subject to the satisfaction or written waiver (by the Company)
of the following conditions:
(a) Representations
and Warranties. All of the representations and warranties of the Purchaser set forth in this Agreement and in any certificate delivered
by or on behalf of the Purchaser pursuant hereto shall be true and correct on and as of the date of this Agreement and on and as of the
Closing Date as if made on the Closing Date (other than those representations and warranties that address matters only as of a particular
date, which representations and warranties shall have been accurate as of such date), except that any failures to be true and correct
that (without giving effect to any qualifications or limitations as to materiality or Material Adverse Effect), individually or in the
aggregate, have not had and would not reasonably be expected to have a Material Adverse Effect on, or with respect to, the Purchaser.
49
(b) Agreements
and Covenants. The Purchaser shall have performed in all material respects all of the Purchaser’s obligations and complied
in all material respects with all of the Purchaser’s agreements and covenants under this Agreement to be performed or complied
with by it on or prior to the Closing Date.
(c) No
Purchaser Material Adverse Effect. No Material Adverse Effect shall have occurred with respect to the Purchaser since the date of
this Agreement which is continuing and uncured.
6.3 Conditions
to Obligations of the Purchaser. In addition to the conditions specified in Section 6.1, the obligations of the Purchaser
and Merger Sub to consummate the Merger and the other transactions contemplated by this Agreement are subject to the satisfaction or
written waiver (by the Purchaser) of the following conditions:
(a) Representations
and Warranties. All of the representations and warranties of the Company set forth in this Agreement and in any certificate delivered
by or on behalf of the Company pursuant hereto shall be true and correct on and as of the date of this Agreement and on and as of the
Closing Date as if made on the Closing Date, except for (i) those representations and warranties that address matters only as of a particular
date (which representations and warranties shall have been accurate as of such date), and (ii) any failures to be true and correct that
(without giving effect to any qualifications or limitations as to materiality or Material Adverse Effect), individually or in the aggregate,
have not had and would not reasonably be expected to have a Material Adverse Effect on, or with respect to, the Target Companies, taken
as a whole.
(b) Agreements
and Covenants. The Company shall have performed in all material respects all of its obligations and complied in all material respects
with all of its agreements and covenants under this Agreement to be performed or complied with by it on or prior to the Closing Date.
(c) No
Material Adverse Effect. No Material Adverse Effect shall have occurred with respect to the Target Companies taken as a whole since
the date of this Agreement which is continuing and uncured.
(d) The
consolidated net asset of the Target Companies for the calendar quarter immediately prior to the Closing shall be no less than US$100,000,000,
and the number of registered users on the platform operated by the Target Companies shall be no less than 20,000,000 as such number is
verified and agreed to by the Company and the Purchaser.
(e) Certain
Ancillary Documents. Each Lock-Up Agreement shall be in full force and effect in accordance with the terms thereof as of the Closing.
(f) Fairness
Opinion. The Purchaser shall have received a fairness opinion from King Kee Appraisal and Advisory Limited indicating that the transaction,
from a Purchaser’s shareholder’s point of view, the transaction is deemed fair from a financial point of view.
6.4 Closing
Deliverables.
(a) Closing
Deliverables of Purchaser.
(i) Officer
Certificate. At the Closing, the Purchaser shall deliver to the Company a certificate, dated the Closing Date, signed by an executive
officer of the Purchaser in such capacity, certifying as to the satisfaction of the conditions specified in Sections 6.2(a), 6.2(b)
and 6.2(c).
50
(ii) Secretary
Certificate. At the Closing, the Purchaser shall deliver to the Company a certificate from its secretary or other executive officer
certifying as to, and attaching, (A) copies of the Purchaser’s Organizational Documents as in effect as of the Closing Date (after
giving effect to the Conversion), (B) the resolutions of the Purchaser’s board of directors authorizing and approving the execution,
delivery and performance of this Agreement and each of the Ancillary Documents to which it is a party or by which it is bound, and the
consummation of the transactions contemplated hereby and thereby, and (C) evidence that the Required Purchaser Shareholder Approval has
been obtained.
(iii) Good
Standing. At the Closing, the Purchaser shall deliver to the Company a good standing certificate (or similar documents applicable
for such jurisdictions) for the Purchaser certified as of a date no earlier than thirty (30) days prior to the Closing Date from the
proper Governmental Authority of the Purchaser’s jurisdiction of organization and from each other jurisdiction in which the Purchaser
is qualified to do business as a foreign entity as of the Closing, in each case to the extent that good standing certificates or similar
documents are generally available in such jurisdictions.
(iv)
Registration Rights Agreement. At the Closing, the Purchaser shall deliver the Registration Rights Agreement in substantially
the form as Exhibit D hereto executed by the Purchaser, the Sponsor, Mr. GAO Zengwei, Mr. LI Jiancheng and Ms. ZENG Zheng, with
each of the Significant Company Holder registering with the SEC the Merger Consideration received as a result of the Merger.
(v) Lock-Up
Agreement. At the Closing, the Purchaser shall deliver the Lock-Up Agreement executed by the Purchaser and the Purchaser Representative.
(b) Closing
Deliveries of the Company.
(i) Officer
Certificate. At the Closing, the Company shall deliver a certificate from the Company, dated as the Closing Date, signed by an executive
officer of the Company in such capacity, certifying as to the satisfaction of the conditions specified in Sections 6.3(a), 6.3(b)
and 6.3(c).
(ii) Secretary
Certificate. At the Closing, the Company shall deliver to the Purchaser a certificate executed by the Company’s secretary certifying
as to the validity and effectiveness of, and attaching, (A) copies of the Company’s Organizational Documents as in effect as of
the Closing Date (immediately prior to the Effective Time), (B) the requisite resolutions of the Company’s board of directors authorizing
and approving the execution, delivery and performance of this Agreement and each Ancillary Document to which the Company is or is required
to be a party or bound, and the consummation of the Merger and the other transactions contemplated hereby and thereby, and the adoption
of the Certificate of Incorporation and Bylaws of the Surviving Corporation, and recommending the approval and adoption of the same by
the Company Stockholders at a duly called meeting of stockholders, and (C) evidence that the Required Company Stockholder Approval has
been obtained.
(iii) Good
Standing. At the Closing, the Company shall deliver to the Purchaser good standing certificates (or similar documents applicable
for such jurisdictions) for each Target Company certified as of a date no earlier than thirty (30) days prior to the Closing Date from
the proper Governmental Authority of the Target Company’s jurisdiction of organization and from each other jurisdiction in which
the Target Company is qualified to do business as a foreign corporation or other entity as of the Closing, in each case to the extent
that good standing certificates or similar documents are generally available in such jurisdictions.
(iv) Lock-Up
Agreement. At the Closing, the Company shall deliver signed Lock-Up Agreements from the Significant Company Holders.
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6.5 Frustration
of Conditions. Notwithstanding anything contained herein to the contrary, no Party may rely on the failure of any condition set forth
in this Article VI to be satisfied if such failure was caused by the failure of such Party or its Affiliates (or with respect
to the Company, any Target Company or Company Stockholder) failure to comply with or perform any of its covenants or obligations set
forth in this Agreement.
Article
VII
TERMINATION
AND EXPENSES
7.1 Termination.
This Agreement may be terminated and the transactions contemplated hereby may be abandoned at any time prior to the Closing as follows:
(a) by
mutual written consent of the Purchaser and the Company;
(b) by
written notice by the Purchaser or the Company if any of the conditions to the Closing set forth in Article VI have not been satisfied
or waived by October 19, 2027 (the “Outside Date”), provided, that if the Purchaser seeks and obtains an Extension
by providing a written notice to the Company, or if the Company requests the Purchaser in writing to obtain an Extension, in each and
all cases there shall be no more than 2 Extensions unless otherwise agreed, the Outside Date shall be extended for an additional period
equal to the shortest of (i) three (3) additional months, and (ii) the period ending on the last date for Purchaser to consummate its
Business Combination pursuant to such Extension); provided, however, the right to terminate this Agreement under this Section
7.1(b) shall not be available to a Party if the breach or violation by such Party or its Affiliates of any representation, warranty,
covenant or obligation under this Agreement was the cause of, or resulted in, the failure of the Closing to occur on or before the Outside
Date;
(c) by
written notice by either the Purchaser or the Company if a Governmental Authority of competent jurisdiction shall have issued an Order
or taken any other action permanently restraining, enjoining or otherwise prohibiting the transactions contemplated by this Agreement,
and such Order or other action has become final and non-appealable; provided, however, that the right to terminate this Agreement pursuant
to this Section 7.1(c) shall not be available to a Party if the failure by such Party or its Affiliates to comply with any provision
of this Agreement has been a substantial cause of, or substantially resulted in, such action by such Governmental Authority;
(d) by
written notice by the Company to Purchaser, if (i) there has been a breach by the Purchaser of any of its representations, warranties,
covenants or agreements contained in this Agreement, or if any representation or warranty of the Purchaser shall have become untrue or
inaccurate, in any case, which would result in a failure of a condition set forth in Section 6.2(a) or Section 6.2(b) to
be satisfied (treating the Closing Date for such purposes as the date of this Agreement or, if later, the date of such breach), and (ii)
the breach or inaccuracy is incapable of being cured or is not cured within the earlier of (A) twenty (20) days after written notice
of such breach or inaccuracy is provided to the Purchaser or (B) the Outside Date; provided, that the Company shall not have the right
to terminate this Agreement pursuant to this Section 7.1(d) if at such time the Company is in material uncured breach of this
Agreement;
(e) by
written notice by the Purchaser to the Company, if (i) there has been a breach by the Company of any of its representations, warranties,
covenants or agreements contained in this Agreement, or if any representation or warranty of such Parties shall have become untrue or
inaccurate, in any case, which would result in a failure of a condition set forth in Section 6.3(a) or Section 6.3(b) to
be satisfied (treating the Closing Date for such purposes as the date of this Agreement or, if later, the date of such breach), and (ii)
the breach or inaccuracy is incapable of being cured or is not cured within the earlier of (A) twenty (20) days after written notice
of such breach or inaccuracy is provided to the Company or (B) the Outside Date; provided, that the Purchaser shall not have the right
to terminate this Agreement pursuant to this Section 7.1(e) if at such time the Purchaser is in material uncured breach of this
Agreement;
52
(f) by
written notice by either the Purchaser or the Company to the other, if the Purchaser Special Meeting is held (including any adjournment
or postponement thereof) and has concluded, the Purchaser’s shareholders have duly voted, and the Required Purchaser Shareholder
Approval was not obtained;
(g)
by written notice by either the Purchaser or the Company to the other, if the Company Special Meeting is held (including any adjournment
or postponement thereof) and has concluded, the Company Stockholders have duly voted, and the Required Company Stockholder Approval was
not obtained; or
(h) by
written notice by the Purchaser to the Company, at any time prior to the expiration of the Due Diligence Period that the Purchaser has
determined, as a result of due diligence, an item, event or disclosure by or of the Company to have material negative impact on the business
of the Surviving Corporation.
7.2 Effect
of Termination. This Agreement may only be terminated in the circumstances described in Section 7.1 and pursuant to a written
notice delivered by the applicable Party to the other applicable Parties, which sets forth the basis for such termination, including
the provision of Section 7.1 under which such termination is made. In the event of the valid termination of this Agreement pursuant
to Section 7.1, this Agreement shall forthwith become void, and there shall be no Liability on the part of any Party or any of
their respective Representatives, and all rights and obligations of each Party shall cease, except: (i) Sections 5.14, 5.15,
7.3, 8.1, Article IX and this Section 7.2 shall survive the termination of this Agreement, and (ii) nothing
herein shall relieve any Party from Liability for any willful breach of any representation, warranty, covenant or obligation under this
Agreement or any Fraud Claim against such Party, in either case, prior to termination of this Agreement (in each case of clauses (i)
and (ii) above, subject to Section 8.1). Without limiting the foregoing, and except as provided in Sections 7.3 and this
Section 7.2 (but subject to Section 8.1) and subject to the right to seek injunctions, specific performance or other equitable
relief in accordance with Section 9.6, the Parties’ sole right prior to the Closing with respect to any breach of any representation,
warranty, covenant or other agreement contained in this Agreement by another Party or with respect to the transactions contemplated by
this Agreement shall be the right, if applicable, to terminate this Agreement pursuant to Section 7.1.
7.3 Fees
and Expenses. Subject to Sections 8.1, 9.13 and 9.14 all Expenses incurred in connection with this Agreement and
the transactions contemplated hereby shall be paid by the Party incurring such expenses. As used in this Agreement, “Expenses”
shall include all out-of-pocket expenses (including all fees and expenses of counsel, accountants, investment bankers, financial advisors,
financing sources, experts and consultants to a Party hereto or any of its Affiliates) incurred by a Party or on its behalf in connection
with or related to the authorization, preparation, negotiation, execution or performance of this Agreement or any Ancillary Document
related hereto and all other matters related to the consummation of this Agreement. With respect to the Purchaser, Expenses shall include
any and all deferred expenses (including fees or commissions payable to the underwriters and any legal fees) of the IPO upon consummation
of a Business Combination and any Extension Expenses.
53
Article
VIII
WAIVERS
AND RELEASES
8.1
Waiver of Claims Against Trust. Reference is made to the IPO Prospectus. The Company and the Company Representative each hereby represents
and warrants that it has read the IPO Prospectus and understands that the Purchaser has established the Trust Account containing the
proceeds of the IPO and the overallotment shares acquired by the Purchaser’s underwriters and from certain private placements occurring
simultaneously with the IPO (including interest accrued from time to time thereon) for the benefit of the Purchaser’s public shareholders
(including overallotment shares acquired by the Purchaser’s underwriters) (the “Public Shareholders”)
and that, except as otherwise described in the IPO Prospectus, the Purchaser may disburse monies from the Trust Account only: (a) to
the Public Shareholders in the event they elect to redeem their Purchaser Ordinary Shares in connection with the consummation of its
initial business combination (as such term is used in the IPO Prospectus) (“Business Combination”) or
in connection with an amendment to the Purchaser’s Organizational Documents to extend the Purchaser’s deadline to consummate
a Business Combination, (b) to the Public Shareholders if the Purchaser fails to consummate a Business Combination within 15 months after
the effective date of the registration statement related to the IPO, subject to extension by amendment to the Purchaser’s Organizational
Documents, (c) with respect to any interest earned on the amounts held in the Trust Account, amounts necessary to pay for any taxes,
and (d) to the Purchaser after or concurrently with the consummation of a Business Combination. For and in consideration of the Purchaser
entering into this Agreement and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
each of the Company and the Company Representative hereby agrees on behalf of itself and its Affiliates that, notwithstanding anything
to the contrary in this Agreement, none of the Company or the Company Representative or any of their respective Affiliates do now or
shall at any time prior to the Closing have any right, title, interest or claim of any kind in or to any monies in the Trust Account
or distributions therefrom, or make any claim against the Trust Account (including any distributions therefrom), regardless of whether
such claim arises as a result of, in connection with or relating in any way to, this Agreement or any proposed or actual business relationship
between the Purchaser or any of its Representatives, on the one hand, and the Company, the Company Representative or any of their respective
Representatives, on the other hand, or any other matter, and regardless of whether such claim arises based on contract, tort, equity
or any other theory of legal liability (collectively, the “Released Claims”). Each of the Company and
the Company Representative on behalf of itself and its Affiliates hereby irrevocably waives any Released Claims that any such Party or
any of its Affiliates may have against the Trust Account (including any distributions therefrom) now or in the future as a result of,
or arising out of, any negotiations, contracts or agreements with the Purchaser or its Representatives and will not seek recourse against
the Trust Account (including any distributions therefrom) for any reason whatsoever (including for an alleged breach of this Agreement
or any other agreement with the Purchaser or its Affiliates). The Company and the Company Representative each agrees and acknowledges
that such irrevocable waiver is material to this Agreement and specifically relied upon by the Purchaser and its Affiliates to induce
the Purchaser to enter in this Agreement, and each of the Company and the Company Representative further intends and understands such
waiver to be valid, binding and enforceable against such Party and each of its Affiliates under applicable Law. To the extent that the
Company or the Company Representative or any of their respective Affiliates commences any Action based upon, in connection with, relating
to or arising out of any matter relating to the Purchaser or its Representatives, which proceeding seeks, in whole or in part, monetary
relief against the Purchaser or its Representatives, each of the Company and the Company Representative hereby acknowledges and agrees
that its and its Affiliates’ sole remedy shall be against funds held outside of the Trust Account and that such claim shall not
permit such Party or any of its Affiliates (or any Person claiming on any of their behalf or in lieu of them) to have any claim against
the Trust Account (including any distributions therefrom) or any amounts contained therein. In the event that the Company or the Company
Representative or any of their respective Affiliates commences Action in violation of the foregoing, the Purchaser, shall be entitled
to recover from the Company, the reasonable legal fees and costs in connection with any such Action, in the event the Purchaser or its
Representatives, as applicable, prevails in such Action. This Section 8.1 shall survive termination of this Agreement for any
reason and continue indefinitely. Notwithstanding the foregoing, nothing in this Section 8.1 shall amend, limit, alter, change,
supersede or otherwise modify the right of the Company or the Company Representative to pursue a claim against the Purchaser or any other
Person (a) for legal relief against monies or other assets of the Purchaser held outside of the Trust Account (including any monies that
are released from the Trust Account), or for specific performance or other equitable relief in connection with the Transactions (including
a claim for the Purchaser to specifically perform its obligations under this Agreement and cause the disbursement of the balance of the
cash remaining in the Trust Account (after giving effect to redemptions)), or (b) for damages for breach of this Agreement against the
Purchaser (or any successor entity).
54
Article
IX
MISCELLANEOUS
9.1 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 Purchaser or Merger Sub at or prior to the Closing, to:
APEX
TECH ACQUISITION INC.
13501
Katy Fwy
Houston,
TX
840-244-9122
Attn:
Florence Ng, Chief Executive Officer
email:florence@apextech-inc.com
with
a copy (which will not constitute notice) to:
Lewis
Brisbois Bisgaard & Smith LLP
Attn:
John P. Yung, Esq.
Daniel
B. Eng, Esq.
45
Fremont Street, Suite 3000
San
Francisco, CA 94105
Telephone
No.: (415) 362-2580
email:
john.yung@lewisbrisbois.com
daniel.eng@lewisbrisbois.com
If
to the Purchaser Representative, to:
APEX
INNOVATION ACQUISITION CORP.
C/O
A Registered Agent, Inc.
8
The Green, Ste A
Dover,
DE 19901
with
a copy (which will not constitute notice) to:
Shaoren
Liu
13501
Katy Fwy
Houston,
TX 77079
840-244-9122
email:
sharoren @apextech-inc.com
If
to the Company or the Surviving Corporation, to:
KORAI
FLIX, INC.
C/O
Northwest Registered Agent Service, Inc.
8
The Green, Ste B
Dover,
DE 19901
with
a copy (which will not constitute notice) to:
DLA
Piper UK LLP
Attn:
Yang Ge, Esq.
James
Chang, Esq.
20th
Floor, South Tower, Kerry Center
No.
1 Guanghua Road, Chaoyang District
Beijing
China 100020
Telephone
No.: 86-10-8520-0616
email:
Yang.Ge@dlapiper.com
James.Chang@dlapiper.com
55
If
to the Company Representative to:
Hongdae
Lee
with
a copy (which will not constitute notice) to:
DLA
Piper UK LLP
Attn:
Yang Ge, Esq.
James
Chang, Esq.
20th
Floor, South Tower,
Beijing
Kerry Center
No.
1 Guanghua Road, Chaoyang District
Beijing
China 100020
Telephone
No.: 86-10-8520-0616
email:
Yang.Ge@dlapiper.com
James.Chang@dlapiper.com
If
to the Purchaser or Company after the Closing, to:
and
the
Purchaser Representative
with
a copy (which will not constitute notice) to:
Lewis
Brisbois Bisgaard & Smith LLP
Attn:
John P. Yung, Esq.
Daniel
B. Eng, Esq.
45
Fremont Street, Suite 3000
San
Francisco, CA 94105
Telephone
No.: (415) 362-2580
email:
john.yung@lewisbrisbois.com
daniel.eng@lewisbrisbois.com
9.2 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 shall not be assigned by operation of Law or otherwise without
the prior written consent of the Purchaser and the Company (and after the Closing, the Purchaser Representative and the Company Representative),
and any assignment without such consent shall be null and void; provided that no such assignment shall relieve the assigning Party
of its obligations hereunder.
9.3 Third
Parties. Except for the rights of the D&O Indemnified Persons set forth in Section 5.18, which the Parties acknowledge
and agree are express third party beneficiaries of this Agreement, nothing contained in this Agreement or in any instrument or document
executed by any party in connection with the transactions contemplated hereby shall create any rights in, or be deemed to have been executed
for the benefit of, any Person that is not a Party hereto or thereto or a successor or permitted assign of such a Party.
9.4 Governing
Law; Jurisdiction. This Agreement shall be governed by, construed and enforced in accordance with the Laws of the State of Delaware
without regard to the conflict of laws principles thereof. All Actions arising out of or relating to this Agreement shall be heard and
determined exclusively in any state or federal court located in New York, New York (or in any appellate court thereof) (the “Specified
Courts”). Each Party hereto hereby (a) 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 (b) 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 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 in Section 9.1. Nothing in this
Section 9.4 shall affect the right of any Party to serve legal process in any other manner permitted by Law.
56
9.5 WAIVER
OF JURY TRIAL. EACH PARTY 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 9.5.
9.6 Specific
Performance. Each Party acknowledges that the rights of each Party to consummate the transactions contemplated hereby are unique,
recognizes and affirms that in the event of a breach of this Agreement by any Party, money damages may be inadequate and the non-breaching
Parties may have not adequate remedy at law, and agree that irreparable damage would occur in the event that any of the provisions of
this Agreement were not performed by an applicable Party in accordance with their specific terms or were otherwise breached. Accordingly,
each Party shall be entitled to seek an injunction or restraining order to prevent breaches of this Agreement and to seek to enforce
specifically the terms and provisions hereof, without the requirement to post any bond or other security or to prove that money damages
would be inadequate, this being in addition to any other right or remedy to which such Party may be entitled under this Agreement, at
law or in equity.
9.7 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.
9.8 Amendment.
This Agreement may be amended, supplemented or modified only by execution of a written instrument signed by the Purchaser, the Company,
the Purchaser Representative and the Company Representative.
9.9 Waiver.
The Purchaser on behalf of itself and its Affiliates, the Company on behalf of itself and its Affiliates, and the Company Representative
on behalf of itself and the Company Stockholders, may in its sole discretion (i) extend the time for the performance of any obligation
or other act of any other non-Affiliated Party hereto, (ii) waive any inaccuracy in the representations and warranties by such other
non-Affiliated Party contained herein or in any document delivered pursuant hereto and (iii) 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 (including by the Purchaser Representative or the Company Representative
in lieu of such Party to the extent provided in this Agreement). 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. Notwithstanding the foregoing, any waiver of any provision of this Agreement after the Closing
shall also require the prior written consent of the Purchaser Representative.
57
9.10 Entire
Agreement. This Agreement and the documents or instruments referred to herein, including any exhibits and schedules attached hereto,
which exhibits and schedules are incorporated herein by reference, together with the Ancillary Documents, embody the entire agreement
and understanding of the Parties hereto in respect of the subject matter contained herein. There are no restrictions, promises, representations,
warranties, covenants or undertakings, other than those expressly set forth or referred to herein or the documents or instruments referred
to herein, which collectively supersede all prior agreements and the understandings among the Parties with respect to the subject matter
contained herein.
9.11 Interpretation.
The table of contents and the Article and Section headings 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: (a) any pronoun used shall include the corresponding masculine, feminine or neuter forms, and
words in the singular, including any defined terms, include the plural and vice versa; (b) reference to any Person includes such 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; (c) any accounting term used and not otherwise defined in this Agreement
or any Ancillary Document has the meaning assigned to such term in accordance with GAAP; (d) “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”; (e) the words “herein,” “hereto,”
and “hereby” and other words of similar import 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; (f) 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”; (g) the term “or” means
“and/or”; (h) any reference to the term “ordinary course” or “ordinary course of business” shall
be deemed in each case to be followed by the words “consistent with past practice”; (i) any agreement, instrument, insurance
policy, Law or Order defined or referred to herein or in any agreement or 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; (j) except as
otherwise indicated, all references in this Agreement to the words “Section,” “Article”, “Schedule”
and “Exhibit” are intended to refer to Sections, Articles, Schedules and Exhibits to this Agreement; and (k) 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 Purchaser its shareholders under the Companies Act or DGCL, 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. To the extent
that any Contract, document, certificate or instrument is represented and warranted to by the Company to be given, delivered, provided
or made available by the Company, in order for such Contract, document, certificate or instrument to have been deemed to have been given,
delivered, provided and made available to the Purchaser or its Representatives, such Contract, document, certificate or instrument shall
have been posted to the electronic data site maintained on behalf of the Company for the benefit of the Purchaser and its Representatives
and the Purchaser and its Representatives have been given access to the electronic folders containing such information.
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9.12 Counterparts.
This Agreement and each Ancillary Document may be executed and delivered (including by facsimile or other electronic transmission) in
one or more counterparts, and by the different Parties hereto in separate counterparts, each of which when executed shall be deemed to
be an original but all of which taken together shall constitute one and the same agreement. The words “execution,” “signed,”
“signature,” and “delivery,” and words of similar import, shall be deemed to include electronic signatures and
electronic records, including electronic signatures using the DocuSign platform, each of which shall be of the same effect, validity,
and enforceability as manually executed signatures or a paper-based recordkeeping system, to the extent provided under applicable law,
including the Electronic Signatures in Global and National Commerce Act, the Uniform Electronic Transactions Act, or any applicable state
law based on the UETA
9.13 Purchaser
Representative.
(a) The
Purchaser, on behalf of itself and its Subsidiaries, successors and assigns, by execution and delivery of this Agreement, hereby irrevocably
appoints Apex Innovation Acquisition Corp., in the capacity as the Purchaser Representative, as each such Person’s agent, attorney-in-fact
and representative, with full power of substitution to act in the name, place and stead of such Person, to act on behalf of such Person
from and after the Closing in connection with: (i)) terminating, amending or waiving on behalf of such Person any provision of this Agreement
or any Ancillary Documents to which the Purchaser Representative is a party or otherwise has rights in such capacity (together with this
Agreement, the “Purchaser Representative Documents”); (ii) signing on behalf of such Person any releases or
other documents with respect to any dispute or remedy arising under any Purchaser Representative Documents; (iii) employing and obtaining
the advice of legal counsel, accountants and other professional advisors as the Purchaser Representative, in its reasonable discretion,
deems necessary or advisable in the performance of its duties as the Purchaser Representative and to rely on their advice and counsel;
(iv) incurring and paying reasonable out-of-pocket costs and expenses, including fees of brokers, attorneys and accountants incurred
pursuant to the transactions contemplated hereby, and any other out-of-pocket fees and expenses allocable or in any way relating to such
transaction; and (v) otherwise enforcing the rights and obligations of any such Persons under any Purchaser Representative Documents,
including giving and receiving all notices and communications hereunder or thereunder on behalf of such Person; provided, that
the Parties acknowledge that the Purchaser Representative is specifically authorized and directed to act on behalf of, and for the benefit
of, the holders of Purchaser Securities (other than the Company Security Holders immediately prior to the Effective Time and their respective
successors and assigns). All decisions and actions by the Purchaser Representative, including any agreement between the Purchaser Representative
and the Company, Company Representative, any Company Stockholders shall be binding upon the Purchaser and its Subsidiaries, successors
and assigns, and neither they nor any other Party shall have the right to object, dissent, protest or otherwise contest the same. The
provisions of this Section 9.13 are irrevocable and coupled with an interest. The Purchaser Representative hereby accepts its
appointment and authorization as the Purchaser Representative under this Agreement.
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(b) The
Purchaser Representative shall not be liable for any act done or omitted under any Purchaser Representative Document as the Purchaser
Representative while acting in good faith and without willful misconduct or gross negligence, and any act done or omitted pursuant to
the advice of counsel shall be conclusive evidence of such good faith. The Purchaser shall indemnify, defend and hold harmless the Purchaser
Representative from and against any and all Losses incurred without gross negligence, bad faith or willful misconduct on the part of
the Purchaser Representative (in its capacity as such) and arising out of or in connection with the acceptance or administration of the
Purchaser Representative’s duties under any Purchaser Representative Document, including the reasonable fees and expenses of any
legal counsel retained by the Purchaser Representative. In no event shall the Purchaser Representative in such capacity be liable under
or in connection with any Purchaser Representative Document for any indirect, punitive, special or consequential damages. The Purchaser
Representative shall be fully protected in relying upon any written notice, demand, certificate or document that it in good faith believes
to be genuine, including facsimiles or copies thereof, and no Person shall have any Liability for relying on the Purchaser Representative
in the foregoing manner. In connection with the performance of its rights and obligations hereunder, the Purchaser Representative shall
have the right at any time and from time to time to select and engage, at the cost and expense of the Purchaser, attorneys, accountants,
investment bankers, advisors, consultants and clerical personnel and obtain such other professional and expert assistance, maintain such
records and incur other out-of-pocket expenses, as the Purchaser Representative may deem necessary or appropriate from time to time.
All of the indemnities, immunities, releases and powers granted to the Purchaser Representative under this Section 9.13 shall
survive the Closing and continue indefinitely.
(c) The
Person serving as the Purchaser Representative may resign upon ten (10) days’ prior written notice to the Purchaser and the Company
Representative, provided, that the Purchaser Representative appoints in writing a replacement Purchaser Representative. Each successor
Purchaser Representative shall have all of the power, authority, rights and privileges conferred by this Agreement upon the original
Purchaser Representative, and the term “Purchaser Representative” as used herein shall be deemed to include any such successor
Purchaser Representatives.
9.14 Company
Representative.
(a) Each
Company Stockholder, by delivery of a Letter of Transmittal, on behalf of itself and its successors and assigns, hereby irrevocably constitutes
and appoints Hongdae Lee, in its capacity as the Company Representative, as the true and lawful agent and attorney-in-fact of such Persons
with full powers of substitution to act in the name, place and stead of thereof with respect to the performance on behalf of such Person
under the terms and provisions of this Agreement and the Ancillary Documents to which the Company Representative is a party or otherwise
has rights in such capacity (together with this Agreement, the “Company Representative Documents”), as the
same may be from time to time amended, and to do or refrain from doing all such further acts and things, and to execute all such documents
on behalf of such Person, if any, as the Company Representative will deem necessary or appropriate in connection with any of the transactions
contemplated under the Company Representative Documents, including: (i) terminating, amending or waiving on behalf of such Person any
provision of any Company Representative Document (provided, that any such action, if material to the rights and obligations of the Company
Stockholders in the reasonable judgment of the Company Representative, will be taken in the same manner with respect to all Company Stockholders
unless otherwise agreed by each Company Stockholder who is subject to any disparate treatment of a potentially material and adverse nature);
(ii) signing on behalf of such Person any releases or other documents with respect to any dispute or remedy arising under any Company
Representative Document; (iii) employing and obtaining the advice of legal counsel, accountants and other professional advisors as the
Company Representative, in its reasonable discretion, deems necessary or advisable in the performance of its duties as the Company Representativeand
to rely on their advice and counsel; (iv) incurring and paying reasonable costs and expenses, including fees of brokers, attorneys and
accountants incurred pursuant to the transactions contemplated hereby, and any other reasonable fees and expenses allocable or in any
way relating to such transaction; (v) receiving all or any portion of the consideration provided to the Company Stockholders under this
Agreement and to distribute the same to the Company Stockholders in accordance with their Pro Rata Share; and (vi) otherwise enforcing
the rights and obligations of any such Persons under any Company Representative Document, including giving and receiving all notices
and communications hereunder or thereunder on behalf of such Person. All decisions and actions by the Company Representative, including
any agreement between the Company Representativeand the Purchaser Representative and the Purchaser, shall be binding upon each Company
Stockholder and their respective successors and assigns, and neither they nor any other Party shall have the right to object, dissent,
protest or otherwise contest the same. The provisions of this Section 9.14 are irrevocable and coupled with an interest. The Company
Representative hereby accepts its appointment and authorization as the Company Representative under this Agreement.
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(b) Any
other Person, including the Purchaser Representative, the Purchaser and the Company may conclusively and absolutely rely, without inquiry,
upon any actions of the Company Representative as the acts of the Company Stockholders under any Company Representative Documents. The
Purchaser Representative, the Purchaser and the Company shall be entitled to rely conclusively on the instructions and decisions of the
Company Representative as to (i) any payment instructions provided by the Company Representative or (ii) any other actions required or
permitted to be taken by the Company Representative hereunder, and no Company Stockholder shall have any cause of action against the
Purchaser Representative, the Purchaser or the Company for any action taken by any of them in reliance upon the instructions or decisions
of the Company Representative. The Purchaser Representative, the Purchaser and the Company shall not have any Liability to any Company
Stockholder for any allocation or distribution among the Company Stockholders by the Company Representative of payments made to or at
the direction of the Company Representative. All notices or other communications required to be made or delivered to a Company Stockholder
under any Company Representative Document shall be made to the Company Representative for the benefit of such Company Stockholder, and
any notices so made shall discharge in full all notice requirements of the other parties hereto or thereto to such Company Stockholder
with respect thereto. All notices or other communications required to be made or delivered by a Company Stockholder shall be made by
the Company Representative(except for a notice under Section 9.14(d) of the replacement of the Company Representative).
(c) The
Company Representative will act for the Company Stockholders on all of the matters set forth in this Agreement in the manner the Company
Representative believes to be in the best interest of the Company Stockholders, but the Company Representative will not be responsible
to the Company Stockholders for any Losses that any Company Stockholder may suffer by reason of the performance by the Company Representative
of the Company Representative’s duties under this Agreement, other than Losses arising from the bad faith, gross negligence or
willful misconduct by the Company Representative in the performance of its duties under this Agreement. From and after the Closing, the
Company Stockholders shall jointly and severally indemnify, defend and hold the Company Representative harmless from and against any
and all Losses reasonably incurred without gross negligence, bad faith or willful misconduct on the part of the Company Representative(in
its capacity as such) and arising out of or in connection with the acceptance or administration of the Company Representative’s
duties under any Company Representative Document, including the reasonable fees and expenses of any legal counsel retained by the Company
Representative. In no event shall the Company Representative in such capacity be liable hereunder or in connection herewith for any indirect,
punitive, special or consequential damages. The Company Representative shall not be liable for any act done or omitted under any Company
Representative Document as the Company Representative while acting in good faith and without willful misconduct or gross negligence,
and any act done or omitted pursuant to the advice of counsel shall be conclusive evidence of such good faith. The Company Representative
shall be fully protected in relying upon any written notice, demand, certificate or document that it in good faith believes to be genuine,
including facsimiles or copies thereof, and no Person shall have any Liability for relying on the Company Representative in the foregoing
manner. In connection with the performance of its rights and obligations hereunder, the Company Representative shall have the right at
any time and from time to time to select and engage, at the reasonable cost and expense of the Company Stockholders, attorneys, accountants,
investment bankers, advisors, consultants and clerical personnel and obtain such other professional and expert assistance, maintain such
records and incur other reasonable out-of-pocket expenses, as the Company Representative may reasonably deem necessary or appropriate
from time to time. All of the indemnities, immunities, releases and powers granted to the Company Representative under this Section
9.14 shall survive the Closing and continue indefinitely.
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(d) If
the Company Representative shall die, become disabled, dissolve, resign or otherwise be unable or unwilling to fulfill its responsibilities
as representative and agent of Company Stockholders, then the Company Stockholders shall, within ten (10) days after such death, disability,
dissolution, resignation or other event, appoint a successor Company Representative(by vote or written consent of the Company Stockholders
holding in the aggregate a Pro Rata Share in excess of fifty percent (50%)), and promptly thereafter (but in any event within two (2)
Business Days after such appointment) notify the Purchaser Representative and the Purchaser in writing of the identity of such successor.
Any such successor so appointed shall become the “Company Representative” for purposes of this Agreement.
9.15 Non-Survival
of Representations, Warranties. The representations and warranties of the Company and the Purchaser contained in this Agreement or
in any certificate or instrument delivered by or on behalf of the Company or the Purchaser pursuant to this Agreement shall not survive
the Closing, and from and after the Closing, the Company and the Purchaser and their respective Representatives shall not have any further
obligations, nor shall any claim be asserted or action be brought against the Company or the Purchaser or their respective Representatives
with respect thereto. The covenants and agreements made by the Company and the Purchaser in this Agreement or in any certificate or instrument
delivered pursuant to this Agreement, including any rights arising out of any breach of such covenants or agreements, shall not survive
the Closing, except for those covenants and agreements contained herein and therein that by their terms apply or are to be performed
in whole or in part after the Closing (which such covenants shall survive the Closing and continue until fully performed in accordance
with their terms).
Article
X
DEFINITIONS
10.1 Certain
Definitions. For purpose of this Agreement, the following capitalized terms have the following meanings:
“Accounting
Principles” means in accordance with GAAP as in effect at the date of the financial statement to which it refers or if
there is no such financial statement, then as of the Closing Date, using and applying the same accounting principles, practices, procedures,
policies and methods (with consistent classifications, judgments, elections, inclusions, exclusions and valuation and estimation methodologies)
used and applied by the Target Companies in the preparation of the latest Company Financials.
“Action”
means any notice of noncompliance or violation, or any claim, demand, charge, action, suit, litigation, audit, settlement, complaint,
stipulation, assessment or arbitration, or any request (including any request for information), inquiry, hearing, proceeding or investigation,
by or before any Governmental Authority.
“Affiliate”
means, with respect to any Person, any other Person directly or indirectly Controlling, Controlled by, or under common Control with such
Person. For the avoidance of doubt, Sponsor shall be deemed to be an Affiliate or the Purchaser prior to the Closing
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“Ancillary
Documents” means each agreement, instrument or document attached hereto as an Exhibit, and the other agreements, certificates
and instruments to be executed or delivered by any of the Parties hereto in connection with or pursuant to this Agreement.
“Benefit
Plans” of any Person means any and all deferred compensation, executive compensation, incentive compensation, equity purchase
or other equity-based compensation plan, employment or consulting, severance or termination pay, holiday, vacation or other bonus plan
or practice, hospitalization or other medical, life or other insurance, supplemental unemployment benefits, profit sharing, pension,
or retirement plan, program, agreement, commitment or arrangement, and each other employee benefit plan, program, agreement or arrangement,
including each “employee benefit plan” as such term is defined under Section 3(3) of ERISA, maintained or contributed to
or required to be contributed to by a Person for the benefit of any employee or terminated employee of such Person, or with respect to
which such Person has any Liability, whether direct or indirect, actual or contingent, whether formal or informal, and whether legally
binding or not.
“Business
Day” means any day other than a Saturday, Sunday or such date on which commercial banking institutions in the State of
New York, or Korea are authorized to close for business, excluding as a result of “stay at home”, “shelter-in-place”,
“non-essential employee” or any other similar orders or restrictions or the closure of any physical branch locations at the
direction of any governmental authority so long as the electronic funds transfer systems, including for wire transfers, of commercially
banking institutions in the State of New York and Korea are generally open for use by customers on such day.
“Class
A Pro Rata Share” means for each Company Stockholder, a fraction expressed as a percentage equal to (i) the number of shares
of Company Class A Common Stock held immediately prior to the Effective Time by such Company Stockholder divided by (ii) the total number
of shares of Company Class A Common Stock issued and outstanding prior to the Effective Time.
“Class
B Pro Rata Share” means for each Company Stockholder, a fraction expressed as a percentage equal to (i) the number of shares
of Company Class B Common Stock held immediately prior to the Effective Time by such Company Stockholder divided by (ii) the total number
of shares of Company Class B Common Stock issued and outstanding prior to the Effective Time.
“Code”
means the Internal Revenue Code of 1986, as amended, and any successor statute thereto, as amended. Reference to a specific section of
the Code shall include such section and any valid treasury regulation promulgated thereunder.
“Company
Charter” means the Certificate of Incorporation of the Company, as amended and effective under the DGCL, prior to the Effective
Time.
“Company
Class A Common Stock” means shares of Class A common stock, $0.0001 par value per share, of the Company, which shares have
one vote per share.
“Company
Class B Common Stock” means shares of Class B common stock, $0.0001 par value per share, of the Company, which shares have
twenty (20) votes per share.
“Company
Common Stock” means any shares of the Company Class A Common Stock and Company Class B Common Stock..
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“Company
Confidential Information” means all confidential or proprietary documents and information concerning the Target Companies
or any of their respective Representatives, furnished in connection with this Agreement or the transactions contemplated hereby; provided,
however, that Company Confidential Information shall not include any information which, (i) at the time of disclosure by the Purchaser
or its Representatives, is generally available publicly and was not disclosed in breach of this Agreement or (ii) at the time of the
disclosure by the Company or its Representatives to the Purchaser or its Representatives was previously known by such receiving party
without violation of Law or any confidentiality obligation by the Person receiving such Company Confidential Information.
“Company
Related Party” means any (a) member, shareholder or equity interest holder who, together with its Affiliates, directly
or indirectly holds, or holds the right to acquire no less than 5% of the total outstanding share capital of the Company, or (b) any
director or officer of the Company or any of its Subsidiaries, in the case of clauses (a) and (b), excluding the Company and any of its
Subsidiaries.
“Company
Securities” means, collectively the Company Common Stock.
“Company
Security Holders” means, collectively, the holders of Company Securities.
“Company
Stockholders” means, collectively, the holders of Company Stock.
“Consent”
means any consent, approval, waiver, authorization or Permit of, or notice to or declaration or filing with any Governmental Authority
or any other Person.
“Contracts”
means all contracts, agreements, binding arrangements, bonds, notes, indentures, mortgages, debt instruments, purchase order, licenses
(and all other contracts, agreements or binding arrangements concerning Intellectual Property), franchises, leases and other instruments
or obligations of any kind, written or oral (including any amendments and other modifications thereto).
“Control”
of a Person means the possession, directly or indirectly, 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. “Controlled”, “Controlling”
and “under common Control with” have correlative meanings. Without limiting the foregoing a Person (the “Controlled
Person”) shall be deemed Controlled by (a) any other Person (i) owning beneficially, as meant in Rule 13d-3 under the Exchange
Act, securities entitling such Person to cast ten percent (10%) or more of the votes for election of directors or equivalent governing
authority of the Controlled Person or (ii) entitled to be allocated or receive ten percent (10%) or more of the profits, losses, or distributions
of the Controlled Person; (b) an officer, director, general partner, partner (other than a limited partner), manager, or member (other
than a member having no management authority that is not a Person described in clause (a) above) of the Controlled Person; or (c) a spouse,
parent, lineal descendant, sibling, aunt, uncle, niece, nephew, mother-in-law, father-in-law, sister-in-law, or brother-in-law of an
Affiliate of the Controlled Person or a trust for the benefit of an Affiliate of the Controlled Person or of which an Affiliate of the
Controlled Person is a trustee.
“Copyrights”
means any works of authorship, mask works and all copyrights therein, including all renewals and extensions, copyright registrations
and applications for registration and renewal, and non-registered copyrights.
“DGCL”
means the Delaware General Corporation Law.
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“Environmental
Law” means any Law in any way relating to (a) the protection of human health and safety, (b) the protection, preservation
or restoration of the environment and natural resources (including air, water vapor, surface water, groundwater, drinking water supply,
surface land, subsurface land, plant and animal life or any other natural resource), or (c) the exposure to, or the use, storage, recycling,
treatment, generation, transportation, processing, handling, labeling, production, release or disposal of Hazardous Materials, including
the Comprehensive Environmental Response, Compensation and Liability Act, 42 USC. Section 9601 et. seq., the Resource Conservation and
Recovery Act, 42 USC. Section 6901 et. seq., the Toxic Substances Control Act, 15 USC. Section 2601 et. seq., the Federal Water Pollution
Control Act, 33 USC. Section 1151 et seq., the Clean Air Act, 42 USC. Section 7401 et seq., the Federal Insecticide, Fungicide and Rodenticide
Act, 7 USC. Section 111 et. seq., Occupational Safety and Health Act, 29 USC. Section 651 et. seq. (to the extent it relates to exposure
to Hazardous Substances), the Asbestos Hazard Emergency Response Act, 15 USC. Section 2601 et. seq., the Safe Drinking Water Act, 42
USC. Section 300f et. seq., the Oil Pollution Act of 1990 and analogous state acts.
“Environmental
Liabilities” means, in respect of any Person, all Liabilities, obligations, responsibilities, Remedial Actions, Losses,
damages, costs, and expenses (including all reasonable fees, disbursements, and expenses of counsel, experts, and consultants and costs
of investigation and feasibility studies), fines, penalties, sanctions, and interest incurred as a result of any claim or demand by any
other Person or in response to any violation of Environmental Law, whether known or unknown, accrued or contingent, whether based in
contract, tort, implied or express warranty, strict liability, criminal or civil statute, to the extent based upon, related to, or arising
under or pursuant to any Environmental Law, Environmental Permit, Order, or Contract with any Governmental Authority or other Person,
that relates to any environmental, health or safety condition, violation of Environmental Law, or a Release or threatened Release of
Hazardous Materials.
“ERISA”
means the U.S. Employee Retirement Income Security Act of 1974, as amended.
“Exchange
Act” means the U.S. Securities Exchange Act of 1934, as amended.
“Fraud
Claim” means any claim based in whole or in part upon fraud, willful misconduct or intentional misrepresentation.
“Fully-Diluted
Company Shares” means the total number of issued and outstanding shares of Company Common Stock and as if the Company Convertible
Security (if any) had been exercised as of the Effective Time, but excluding any Company Securities described in Section 1.9(b).”
“GAAP”
means generally accepted accounting principles as in effect in the United States of America.
“Governmental
Authority” means any federal, state, local, foreign or other governmental, quasi-governmental or administrative body, instrumentality,
department or agency or any court, tribunal, administrative hearing body, arbitration panel, commission, or other similar dispute-resolving
panel or body.
“Hazardous
Material” means any waste, gas, liquid or other substance or material that is defined, listed or designated as a “hazardous
substance”, “pollutant”, “contaminant”, “hazardous waste”, “regulated substance”,
“hazardous chemical”, or “toxic chemical” (or by any similar term) under any Environmental Law, or any other
material regulated, or that could result in the imposition of Liability or responsibility, under any Environmental Law, including petroleum
and its by-products, asbestos, polychlorinated biphenyls, radon, mold, and urea formaldehyde insulation.
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“Indebtedness”
of any Person means, without duplication, (a) all indebtedness of such Person for borrowed money (including the outstanding principal
and accrued but unpaid interest), (b) all obligations for the deferred purchase price of property or services (other than deferred compensation
expenses and trade payables incurred in the ordinary course of business), (c) any other indebtedness of such Person that is evidenced
by a note, bond, debenture, credit agreement or similar instrument, (d) all obligations of such Person under leases that should be classified
as capital leases in accordance with GAAP, (e) all obligations of such Person for the reimbursement of any obligor on any line or letter
of credit, banker’s acceptance, guarantee or similar credit transaction, in each case, that has been drawn or claimed against,
(f) all obligations of such Person in respect of acceptances issued or created, (g) all interest rate and currency swaps, caps, collars
and similar agreements or hedging devices under which payments are obligated to be made by such Person, whether periodically or upon
the happening of a contingency, (h) all obligations secured by an Lien on any property of such Person, (i) any premiums, prepayment fees
or other penalties, fees, costs or expenses associated with payment of any Indebtedness of such Person and (j) all obligation described
in clauses (a) through (i) above of any other Person which is directly or indirectly guaranteed by such Person or which such Person has
agreed (contingently or otherwise) to purchase or otherwise acquire or in respect of which it has otherwise assured a creditor against
loss.
“Intellectual
Property” means all of the following as they exist in any jurisdiction throughout the world: Patents, Trademarks, Copyrights,
Trade Secrets, Internet Assets, Software and other intellectual property, and all licenses, sublicenses and other agreements or permissions
related to the preceding property.
“Internet
Assets” means any and all domain name registrations, web sites and web addresses and related rights, items and documentation
related thereto, and applications for registration therefor.
“IPO”
means the initial public offering of Purchaser Public Units pursuant to the IPO Prospectus.
“IPO
Prospectus” means the final prospectus of the Purchaser, dated as of February 25, 2026, and filed with the SEC on February
27, 2026 (File No. 333-291936).
“IPO
Underwriter” means A.G.P.
“IRS”
means the U.S. Internal Revenue Service (or any successor Governmental Authority).
“Knowledge”
means, with respect to (i) the Company, the actual knowledge of the executive officers or directors of any Target Company, after reasonable
inquiry or (ii) any other Party, the actual knowledge of its directors and executive officers, after reasonable inquiry.
“Law”
means any federal, state, local, municipal, foreign or other law, statute, legislation, principle of common law, ordinance, code, edict,
decree, proclamation, treaty, convention, rule, regulation, directive, requirement, writ, injunction, settlement, Order or Consent that
is or has been issued, enacted, adopted, passed, approved, promulgated, made, implemented or otherwise put into effect by or under the
authority of any Governmental Authority.
“Liabilities”
means any and all liabilities, Indebtedness, Actions or obligations of any nature (whether absolute, accrued, contingent or otherwise,
whether known or unknown, whether direct or indirect, whether matured or unmatured, whether due or to become due and whether or not required
to be recorded or reflected on a balance sheet under GAAP or other applicable accounting standards), including Tax liabilities due or
to become due.
“Lien”
means any mortgage, pledge, security interest, attachment, right of first refusal, option, proxy, voting trust, encumbrance, lien or
charge of any kind (including any conditional sale or other title retention agreement or lease in the nature thereof), restriction (whether
on voting, sale, transfer, disposition or otherwise), any subordination arrangement in favor of another Person, or any filing or agreement
to file a financing statement as debtor under the Uniform Commercial Code or any similar Law.
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“Material
Adverse Effect” means, with respect to any specified Person, any fact, event, occurrence, change or effect that has had,
or would reasonably be expected to have, individually or in the aggregate, a material adverse effect upon (a) the business, assets, Liabilities,
results of operations, prospects or condition (financial or otherwise) of such Person and its Subsidiaries, taken as a whole, or (b)
the ability of such Person or any of its Subsidiaries on a timely basis to consummate the transactions contemplated by this Agreement
or the Ancillary Documents to which it is a party or bound or to perform its obligations hereunder or thereunder; provided, however,
that for purposes of clause (a) above, any changes or effects directly or indirectly attributable to, resulting from, relating to or
arising out of the following (by themselves or when aggregated with any other, changes or effects) shall not be deemed to be, constitute,
or be taken into account when determining whether there has or may, would or could have occurred a Material Adverse Effect: (i) general
changes in the financial or securities markets or general economic or political conditions in the country or region in which such Person
or any of its Subsidiaries do business; (ii) changes, conditions or effects that generally affect the industries in which such Person
or any of its Subsidiaries principally operate; (iii) changes in GAAP or other applicable accounting principles or mandatory changes
in the regulatory accounting requirements applicable to any industry in which such Person and its Subsidiaries principally operate; (iv)
conditions caused by acts of God, terrorism, war (whether or not declared) or natural disaster; (v) any failure in and of itself by such
Person and its Subsidiaries to meet any internal or published budgets, projections, forecasts or predictions of financial performance
for any period (provided that the underlying cause of any such failure may be considered in determining whether a Material Adverse Effect
has occurred or would reasonably be expected to occur to the extent not excluded by another exception herein) and (vi), with respect
to the Purchaser, the consummation and effects of the Redemption (or any redemption in connection with the Extension); provided further,
however, that any event, occurrence, fact, condition, or change referred to in clauses (i) - (iv) immediately above shall be taken
into account in determining whether a Material Adverse Effect has occurred or could reasonably be expected to occur to the extent that
such event, occurrence, fact, condition, or change has a disproportionate effect on such Person or any of its Subsidiaries compared to
other participants in the industries in which such Person or any of its Subsidiaries primarily conducts its businesses. Notwithstanding
the foregoing, with respect to the Purchaser, the amount of the Redemption (or any redemption in connection with the Extension, if any)
or the failure to obtain the Required Purchaser Shareholder Approval shall not be deemed to be a Material Adverse Effect on or with respect
to the Purchaser.
“Merger
Sub Common Stock” means the shares of common stock, par value $0.001 per share, of Merger Sub.
“NYSE”
means the New York Stock Exchange.
“Order”
means any order, decree, ruling, judgment, injunction, writ, determination, binding decision, verdict, judicial award or other action
that is or has been made, entered, rendered, or otherwise put into effect by or under the authority of any Governmental Authority.
“Organizational
Documents” means, with respect to any Person that is an entity, its certificate of incorporation or formation, bylaws,
operating agreement, memorandum and articles of association or similar organizational documents, in each case, as amended.
“Patents”
means any patents, patent applications and the inventions, designs and improvements described and claimed therein, patentable inventions,
and other patent rights (including any divisionals, provisionals, continuations, continuations-in-part, substitutions, or reissues thereof,
whether or not patents are issued on any such applications and whether or not any such applications are amended, modified, withdrawn,
or refiled).
67
“PCAOB”
means the U.S. Public Company Accounting Oversight Board (or any successor thereto).
“Permits”
means all federal, state, local or foreign or other third-party permits, grants, easements, consents, approvals, authorizations, exemptions,
licenses, franchises, concessions, ratifications, permissions, clearances, confirmations, endorsements, waivers, certifications, designations,
ratings, registrations, qualifications or orders of any Governmental Authority or any other Person.
“Permitted
Liens” means (a) Liens for Taxes or assessments and similar governmental charges or levies, which either are (i) not delinquent
or (ii) being contested in good faith and by appropriate proceedings, and adequate reserves have been established with respect thereto,
(b) other Liens imposed by operation of Law arising in the ordinary course of business for amounts which are not due and payable and
as would not in the aggregate materially adversely affect the value of, or materially adversely interfere with the use of, the property
subject thereto, (c) Liens on goods in transit incurred pursuant to documentary letters of credit, in each case arising in the ordinary
course of business, or (d) Liens arising under this Agreement or any Ancillary Document.
“Person”
means an individual, corporation, partnership (including a general partnership, limited partnership or limited liability partnership),
limited liability company, association, trust or other entity or organization, including a government, domestic or foreign, or political
subdivision thereof, or an agency or instrumentality thereof.
“Personal
Property” means any machinery, equipment, tools, vehicles, furniture, leasehold improvements, office equipment, plant,
parts and other tangible personal property.
“Pro
Rata Share” means with respect to each Company Stockholder, a fraction expressed a percentage equal to (i) the portion
of the Stockholder Merger Consideration payable by the Purchaser to such Company Stockholder in accordance with the terms of this Agreement,
divided by (ii) the total Stockholder Merger Consideration payable by the Purchaser to all Company Stockholders in accordance with the
terms of this Agreement.
“Purchaser
Ordinary Shares” means the Ordinary Shares, par value $0.0001 per share, of the Purchaser prior to the Conversion.
“Purchaser
Class A Common Stock” means the shares of class A common stock, par value $0.0001 per share, of the Purchaser following
the consummation of the Conversion, having the rights and subject to the restrictions set out in the Conversion Organizational Documents.
“Purchaser
Class B Common Stock” means the shares of class B common stock, par value $0.0001 per share, of the Purchaser following
the consummation of the Conversion, having the rights and subject to the restrictions set out in the Conversion Organizational Documents.
Each holder of Purchaser Class B Common Stock shall be entitled to Twenty (20) votes for each Purchaser Class B Common Stock held by
such holder as of the applicable record date.
“Purchaser
Common Stock” means any shares of the Purchaser Class A Common Stock and Purchaser Class B Common Stock following the consummation
of the Conversion.
68
“Purchaser
Confidential Information” means all confidential or proprietary documents and information concerning the Purchaser or any
of its Representatives; provided, however, that Purchaser Confidential Information shall not include any information which, (i)
at the time of disclosure by the Company, the Company Representative or any of their respective Representatives, is generally available
publicly and was not disclosed in breach of this Agreement or (ii) at the time of the disclosure by the Purchaser or its Representatives
to the Company, the Company Representative or any of their respective Representatives, was previously known by such receiving party without
violation of Law or any confidentiality obligation by the Person receiving such Purchaser Confidential Information. For the avoidance
of doubt, from and after the Closing, Purchaser Confidential Information will include the confidential or proprietary information of
the Target Companies.
“Purchaser
Private Right” means one right that was included as part of each Purchaser Private Unit entitling the holder thereof to
receive one-fourth (1/4th) of a Purchaser Ordinary Share upon the consummation by Purchaser of its Business Combination.
“Purchaser
Private Units” means the units issued by Purchaser in a private placement to the Sponsor at the time of the consummation
of the IPO consisting of one (1) Purchaser Ordinary Share and one (1) Purchaser Private Right to receive one-fourth (1/4th)
of one ordinary share.
“Purchaser
Public Right” means one right that was included as part of each Purchaser Public Unit entitling the holder thereof to receive
one-fourth (1/4th) of a Purchaser Ordinary Share upon the consummation by Purchaser of its Business Combination.
“Purchaser
Public Units” means the units issued in the IPO (including overallotment units acquired by Purchaser’s underwriter)
consisting of one (1) Purchaser Ordinary Share and one (1) Purchaser Public Right to receive one-fourth (1/4th) of one Purchaser
Ordinary Share.
“Purchaser
Rights” means Purchaser Private Rights and Purchaser Public Rights, collectively.
“Purchaser
Securities” means the Purchaser Units, the Purchaser Ordinary Shares, the Purchaser Common Stock, and the Purchaser Rights,
collectively.
“Purchaser
Units” means Purchaser Private Units and Purchaser Public Units, collectively.
“Reference
Time” means the close of business of the Company on the Closing Date (but without giving effect to the transactions contemplated
by this Agreement, including any payments by Purchaser hereunder to occur at the Closing, but treating any obligations in respect of
Indebtedness, or other liabilities that are contingent upon the consummation of the Closing as currently due and owing without contingency
as of the Reference Time).
“Release”
means any release, spill, emission, leaking, pumping, injection, deposit, disposal, discharge, dispersal, or leaching into the indoor
or outdoor environment, or into or out of any property.
“Remedial
Action” means all actions to (i) clean up, remove, treat, or in any other way address any Hazardous Material, (ii) prevent
the Release of any Hazardous Material so it does not endanger or threaten to endanger public health or welfare or the indoor or outdoor
environment, (iii) perform pre-remedial studies and investigations or post-remedial monitoring and care, or (iv) correct a condition
of noncompliance with Environmental Laws.
69
“Representatives”
means, as to any Person, such Person’s Affiliates and the respective managers, directors, officers, employees, independent contractors,
consultants, advisors (including financial advisors, counsel and accountants), agents and other legal representatives of such Person
or its Affiliates.
“SEC”
means the U.S. Securities and Exchange Commission (or any successor Governmental Authority).
“Securities
Act” means the Securities Act of 1933, as amended.
“Significant
Company Holder” means any Company Stockholder who (i) is an executive officer or director of the Company or (ii) owns more
than 10 percent (10%) of the issued and outstanding shares of the Company.
“Software”
means any computer software programs, including all source code, object code, and documentation related thereto and all software modules,
tools and databases.
“SOX”
means the U.S. Sarbanes-Oxley Act of 2002, as amended.
“SPAC
Related Person” means (a) the Sponsor and (b) any director, officer or Affiliate of SPAC or the Sponsor.
“Sponsor”
means Apex Innovation Acquisition Corp.
“Subsidiary”
means, with respect to any Person, any corporation, partnership, association or other business entity of which (i) if a corporation,
a majority of the total voting power of shares of stock entitled (without regard to the occurrence of any contingency) to vote in the
election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or one
or more of the other Subsidiaries of that Person or a combination thereof, or (ii) if a partnership, association or other business entity,
a majority of the partnership or other similar ownership interests thereof is at the time owned or controlled, directly or indirectly,
by any Person or one or more Subsidiaries of that Person or a combination thereof. For purposes hereof, a Person or Persons will be deemed
to have a majority ownership interest in a partnership, association or other business entity if such Person or Persons will be allocated
a majority of partnership, association or other business entity gains or losses or will be or control the managing director, managing
member, general partner or other managing Person of such partnership, association or other business entity. A Subsidiary of a Person
will also include any variable interest entity which is consolidated with such Person under applicable accounting rules.
“Target
Company” means each of the Company and its direct and indirect Subsidiaries.
“Tax
Return” means any return, declaration, report, claim for refund, information return or other documents (including any related
or supporting schedules, statements or information) filed or required to be filed in connection with the determination, assessment or
collection of any Taxes or the administration of any Laws or administrative requirements relating to any Taxes.
“Taxes”
means (a) all direct or indirect federal, state, local, foreign and other net income, gross income, gross receipts, sales, use, value-added,
ad valorem, transfer, franchise, profits, license, lease, service, service use, withholding, payroll, employment, social security and
related contributions due in relation to the payment of compensation to employees, excise, severance, stamp, occupation, premium, property,
windfall profits, alternative minimum, estimated, customs, duties or other taxes, fees, assessments or charges of any kind whatsoever,
together with any interest and any penalties, additions to tax or additional amounts with respect thereto, (b) any Liability for payment
of amounts described in clause (a) whether as a result of being a member of an affiliated, consolidated, combined or unitary group for
any period or otherwise through operation of law and (c) any Liability for the payment of amounts described in clauses (a) or (b) as
a result of any tax sharing, tax group, tax indemnity or tax allocation agreement with, or any other express or implied agreement to
indemnify, any other Person.
70
“Trade
Secrets” means any trade secrets, confidential business information, concepts, ideas, designs, research or development
information, processes, procedures, techniques, technical information, specifications, operating and maintenance manuals, engineering
drawings, methods, know-how, data, mask works, discoveries, inventions, modifications, extensions, improvements, and other proprietary
rights (whether or not patentable or subject to copyright, trademark, or trade secret protection).
“Trademarks”
means any trademarks, service marks, trade dress, trade names, brand names, internet domain names, designs, logos, or corporate names
(including, in each case, the goodwill associated therewith), whether registered or unregistered, and all registrations and applications
for registration and renewal thereof.
“Trading
Day” means any day on which shares of Purchaser Common Stock or Purchaser Ordinary Shares, as applicable, are actually
traded on the principal securities exchange or securities market on which the Purchaser Common Stock or Purchaser Ordinary Shares are
then traded.
“Transaction
Expenses” means all fees and expenses of any of the Target Companies incurred or payable as of the Closing and not paid
prior to the Closing (i) in connection with the consummation of the transactions contemplated hereby, including any amounts payable to
professionals (including investment bankers, brokers, finders, attorneys, accountants and other consultants and advisors) retained by
or on behalf of any Target Company, (ii) any change in control bonus, transaction bonus, retention bonus, termination or severance payment
or payment relating to terminated options, warrants or other equity appreciation, phantom equity, profit participation or similar rights,
in any case, to be made to any current or former employee, independent contractor, director or officer of any Target Company at or after
the Closing pursuant to any agreement to which any Target Company is a party prior to the Closing which become payable (including if
subject to continued employment) as a result of the execution of this Agreement or the consummation of the transactions contemplated
hereby and (iii) any sales, use, real property transfer, stamp, stock transfer or other similar transfer Taxes imposed on Purchaser,
Merger Sub or any Target Company in connection with the Merger or the other transactions contemplated by this Agreement.
“Trust
Account” means the trust account established by Purchaser with the proceeds from the IPO pursuant to the Trust Agreement
in accordance with the IPO Prospectus.
“Trust
Agreement” means that certain Investment Management Trust Agreement, dated as of February 25, 2026, as it may be amended,
by and between the Purchaser and the Trustee, as well as any other agreements entered into related to or governing the Trust Account.
“Trustee”
means Continental Stock Transfer & Trust Company, in its capacity as trustee under the Trust Agreement.
71
10.2 Section
References. The following capitalized terms, as used in this Agreement, have the respective meanings given to them in the Section
as set forth below adjacent to such terms:
Term
Section
Acquisition
Proposal
5.6(a)
Agreement
Preamble
Alternative
Transaction
5.6(a)
Amended Purchaser Organizational Documents
1.1
Antitrust
Laws
5.9(b)
Certificate
of Merger
1.3
Unaudited
Company Financials
4.7(a)
Business
Combination
8.1
Business Combination Deadline
5.20
Balance Sheet Date
4.7(a)
Class A Merger Consideration Shares
1.8
Class B Merger Consideration Shares
1.8
Closing
2.1
Closing
Date
2.1
Closing
Filing
5.14(b)
Closing
Press Release
5.14(b)
Companies Act
Recitals
Company
Preamble
Company
Benefit Plan
4.19(a)
Company
Certificates
1.10(a)
Company
Directors
5.17(a)
Company
Disclosure Schedules
Article
IV
Company
Financials
4.7(a)
Company
IP
4.13(d)
Company
IP Licenses
4.13(a)
Company
Material Contract
4.12(a)
Company
Permits
4.10
Company
Personal Property Leases
4.16
Company
Real Property Leases
4.15
Company
Registered IP
4.13(a)
Company Representative
Preamble
Company Representative
Documents
9.14(a)
Company
Special Meeting
5.13
Conversion
1.1
Conversion
Organizational Documents
1.1
D&O
Indemnified Persons
5.18(a)
D&O
Tail Insurance
5.18(b)
DGCL
Recitals
Dissenting
Shares
1.13
Dissenting
Stockholder
1.13
Due Diligence Period
5.21
Effective
Time
1.3
Enforceability
Exceptions
3.2
Environmental Permits
4.20(a)
Exchange
Agent
1.10(a)
Expenses
7.3
Extension
5.3(a)
Extension
Expenses
5.3(b)(iv)
Federal
Securities Laws
5.7
Interim
Period
5.1(a)
Letter
of Transmittal
1.10(a)
72
Term
Section
Lock-Up
Agreement
Recitals
Lost
Certificate Affidavit
1.10(d)
Merger
Recitals
Merger
Consideration
1.8
Merger Consideration Shares
1.8
Merger
Sub
Preamble
OFAC
3.20(c)
Off-the-Shelf
Software
4.13(a)
Outbound
IP License
4.13(c)
Outside
Date
7.1(b)
Party(ies)
Preamble
Post-Closing
Purchaser Board
5.17(a)
Proxy
Statement
5.12(a)
Public
Shareholders
8.1
Purchaser
Preamble
Purchaser
Director
5.17(a)
Purchaser
Disclosure Schedules
Article
III
Purchaser
Financials
3.6(b)
Purchaser
Material Contract
3.13(a)
Purchaser
Representative
Preamble
Purchaser
Representative Documents
9.13(a)
Purchaser
Shareholder Approval Matters
5.12(a)
Purchaser
Special Meeting
5.12(a)
Redemption
5.12(a)
Registration Rights Agreement
Recitals
Registration
Statement
5.12(a)
Released
Claims
8.1
Related Person
4.21
Required
Company Stockholder Approval
6.1(b)
Required
Purchaser Shareholder Approval
6.1(a)
SEC
Reports
3.6(a)
Section
409A Plan
4.19(k)
Signing
Filing
5.14(b)
Signing
Press Release
5.14(b)
Specified
Courts
9.4
Sponsor Support Agreement
Recitals
Stockholder
Merger Consideration
1.8
Surviving
Corporation
1.2
Top
Customers
4.24
Top
Suppliers
4.24
Transmittal
Documents
1.10(b)
Voting
Agreements
Recitals
{REMAINDER
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73
IN
WITNESS WHEREOF, each Party hereto has caused this Agreement and Plan of Merger to be signed and delivered as of the date first written
above.
The
Purchaser:
APEX
TECH ACQUISITION INC.
By:
/s/
Florence Ng
Name:
Florence
Ng
Title:
Chief
Executive Officer
The
Purchaser Representative:
APEX
INNOVATION ACQUISITION CORP.,
solely
in the capacity as the Purchaser Representative hereunder
By:
/s/
Sharoen Liu
Name:
Sharoen
Liu
Title:
Director
Merger
Sub:
APEX
TECH MERGER SUB INC.
By:
/s/
Florence Ng
Name:
Florence
Ng
Title:
Chief
Executive Officer
The
Company:
KORAI
FLIX, INC.
By:
/s/
Helen Wosner
Name:
Helen
Wosner
Title:
Director
The
Company Representative:
Hongdae
Lee, solely in the capacity as the Company Representative hereunder
By:
/s/
Hongdae Lee
Name:
Hongdae
Lee
[Signature
Page to Merger Agreement]
EX-10.1
EX-10.1
Filename: ex10-1.htm · Sequence: 3
Exhibit
10.1
FORM
OF VOTING AGREEMENT
This
Voting Agreement (this “Agreement”) is made and entered into as of [●], 2026, by and among (i) APEX Tech
Acquisition Inc., a Cayman Islands exempted company (together with its successors, including after the Conversion, the “Purchaser”),
(ii) APEX Tech Merger Sub Inc., a Delaware corporation and a wholly-owned subsidiary of the Purchaser (“Merger Sub”
and, collectively with the Purchaser, the “Purchaser Parties”), (iii) Korai Flix, Inc., a Delaware corporation
(the “Company”), and (iv) the stockholders of the Company listed on Schedule A (each, a “Company
Stockholder” and collectively, the “Company Stockholders”). The Purchaser, Merger Sub, the Company
and the Company Stockholders are sometimes referred to herein individually as a “Party” and collectively as
the “Parties”. Capitalized terms used but not otherwise defined herein shall have the respective meanings ascribed
to such terms in the Agreement and Plan of Merger (as defined below).
RECITALS
A.
On October [●], 2026, the Purchaser, Merger Sub, Apex Innovation Acquisition Corp., as the Purchaser Representative, Hongdae Lee,
as the Company Representative, and the Company, entered into an Agreement and Plan of Merger (the “Merger Agreement”)
pursuant to which, upon the terms and subject to the conditions set forth therein: (a) prior to the Effective Time, the Purchaser will
continue out of the Cayman Islands and into the State of Delaware so as to re-domicile as and become a Delaware corporation (the “Conversion”),
and (b) at the Effective Time, Merger Sub will merge with and into the Company (the “Merger”), with the Company
surviving the Merger as a wholly-owned subsidiary of the Purchaser and the outstanding shares of Company Stock being converted into the
right to receive shares of Purchaser Common Stock (the Merger, together with the Conversion and the other transactions contemplated by
the Merger Agreement, the “Transactions”).
B.
The Company Stockholders agree to enter into this Agreement with respect to all Company Class A Common Stock and Company Class B Common
Stock (collectively, “Company Shares”) of which the Company Stockholders now or hereafter have beneficial ownership
(as such term is defined in Rule 13d-3 under the Exchange Act) and/or record ownership.
C.
As of the date hereof, the Company Stockholders are the owners of, and/or have voting power (including, without limitation, by proxy
or power of attorney) over, such number and class of Company Shares as are indicated opposite each of their names on Schedule A
attached hereto (all such Company Shares, together with any shares in the Company of which beneficial and/or record ownership and/or
the power to vote (including, without limitation, by proxy or power of attorney) is hereafter acquired by any such Company Stockholder
(or any securities convertible into or exercisable or exchangeable for Company Shares) during the period from the date hereof through
the Expiration Time are collectively referred to herein as the “Subject Shares”).
D.
As a condition to the willingness of the Purchaser and the Company to enter into the Merger Agreement and as an inducement and in consideration
therefor, the Company Stockholders have agreed to enter into this Agreement.
E.
Each of the Parties has determined that it is in its best interest to enter into this Agreement.
NOW,
THEREFORE, in consideration of the foregoing and the respective representations, warranties, covenants and agreements set forth below
and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto, intending
to be legally bound, do hereby agree as follows:
1.
Definitions. When used in this Agreement, the following terms in all of their tenses, cases and correlative forms shall have the
meanings assigned to them in this Section 1 or elsewhere in this Agreement.
“Expiration
Time” shall mean the earliest to occur of (a) the Effective Time, (b) such date and time as the Merger Agreement shall
be terminated in accordance with Section 7.1 (Termination) of Article VII thereof and (c) the mutual written agreement of the Purchaser,
the Company and such Company Stockholder.
“Transfer”
shall mean any sale, assignment, encumbrance, pledge, hypothecation, disposition, loan or other transfer, or entry into any contract,
agreement, option or other arrangement or understanding with respect to any sale, assignment, encumbrance, pledge, hypothecation, disposition,
loan or other transfer, in each case directly or indirectly and voluntarily or involuntarily, of any interest owned by a person or any
interest (including a beneficial interest) in, or the ownership, control or possession of, any interest owned by a person, excluding
entry into this Agreement and the Merger Agreement and the consummation of the transactions contemplated hereby and thereby.
2.
Agreement to Retain the Subject Shares.
2.1
No Transfer of Subject Shares. Until the Expiration Time, each Company Stockholder agrees not to (x) Transfer any Subject Shares
or (y) deposit any Subject Shares into a voting trust or enter into a voting agreement with respect to any Subject Shares or grant any
proxy (except as otherwise provided herein), consent or power of attorney with respect thereto (other than pursuant to this Agreement).
Notwithstanding the foregoing, (A) if a Company Stockholder is an individual, such Company Stockholder may Transfer any such Subject
Shares (i) to any member of such Company Stockholder’s immediate family, or to a trust for the benefit of such Company Stockholder
or any member of such Company Stockholder’s immediate family, the sole trustees of which are such Company Stockholder or any member
of such Company Stockholder’s immediate family, (ii) by will, other testamentary document or under the laws of intestacy upon the
death of such Company Stockholder, (iii) pursuant to a qualified domestic relations order or (iv) pursuant to a charitable gift or contribution,
(B) if a Company Stockholder is an entity, such Company Stockholder may Transfer any Subject Shares to any partner, member, shareholder,
or affiliate of such Company Stockholder in accordance with the terms of the Organizational Documents of the Company, and (C) a Company
Stockholder may Transfer any Subject Shares upon the consent of the Purchaser; provided, that in each case such transferee of
such Subject Shares evidences in a writing, in form and substance reasonably satisfactory to the Purchaser and the Company, such transferee’s
agreement to be bound by and subject to all of the terms and provisions hereof to the same effect as such transferring Company Stockholder,
prior and as a condition to the occurrence of such Transfer.
2.2
Additional Purchases. Until the Expiration Time, each Company Stockholder agrees that any Subject Shares that such Company Stockholder
purchases, that are issued to such Company Stockholder by the Company, that are otherwise hereinafter acquired by such Company Stockholder
or with respect to which such Company Stockholder otherwise acquires sole or shared voting power (including by proxy or power of attorney)
after the execution of this Agreement and prior to the Expiration Time, shall in each case be subject to the terms and conditions of
this Agreement to the same extent as if they were Subject Shares owned by such Company Stockholder as of the date hereof. Each of the
Company Stockholders agrees, while this Agreement is in effect, to notify the Purchaser and the Company promptly in writing (including
by e-mail) of the number of any additional Subject Shares acquired, or over which voting power is acquired, by such Company Stockholder,
if any, after the date hereof.
2.3
Unpermitted Transfers. Any Transfer or attempted Transfer of any Subject Shares in violation of this Section 2 shall, to
the fullest extent permitted by applicable Law, be null and void ab initio.
3.
Voting of Subject Shares. Hereafter until the Expiration Time, each Company Stockholder hereby unconditionally and irrevocably
agrees that, at any meeting of the shareholders of the Company (or any adjournment or postponement thereof), and in any action by written
consent of the shareholders of the Company permitted by the Organizational Documents of the Company or otherwise undertaken as contemplated
by the Transactions (which written consent shall be delivered promptly, and in any event not later than two (2) Business Days, after
the Company or the Purchaser requests such delivery), such Company Stockholder shall: if a meeting is held, attend and appear at the
meeting, in person or by proxy, or otherwise cause its Subject Shares to be counted as present thereat for purposes of establishing a
quorum, and such Company Stockholder shall vote all of the Subject Shares to which such Company Stockholder has sole or shared voting
power and is entitled to vote; and/or if a written consent or approval is requested, duly and promptly execute and provide such written
consent or approval (or cause to be voted or so consented or approved), in person or by proxy, in respect of all of its Subject Shares:
(i) in favor of (a) the Merger, the Merger Agreement, the Ancillary Documents, any required amendments to the Company’s Organizational
Documents, and all of the other Transactions (and any actions required in furtherance thereof), (b) in favor of the other matters set
forth in the Merger Agreement (clauses (a) and (b) collectively, the “Company Shareholder Approval Matters”),
or if there are insufficient votes in favor of granting the approval of the Company Shareholder Approval Matters, in favor of the adjournment
or postponement of such meeting of the shareholders of the Company to a later date, (ii) in opposition to, other than as contemplated
by the Merger Agreement, (x) any material change in the present capitalization of the Company or any amendment of the Company’s
Organizational Documents, (y) any material change in the Company’s corporate structure or business or (z) any proposal, offer,
or submission with respect to an Acquisition Proposal or Alternative Transaction (“Competing Transaction”)
or the adoption of any agreement to enter into a Competing Transaction; and (iii) in any other circumstances upon which a vote, consent
or other approval with respect to the Company Shareholder Approval Matters is sought, to vote, consent or approve (or cause to be voted,
consented or approved) all of such Company Stockholder’s Subject Shares held at such time in favor of the foregoing; provided,
however, that such Company Stockholder shall not be required to vote or provide consent or take any other action, in each case
to the extent any such vote, consent or other action would preclude SEC registration of the Purchaser Common Stock being issued to holders
of Company Shares as contemplated by the Merger Agreement.
2
4.
Additional Agreements.
4.1
No Challenges. Each Company Stockholder agrees not to commence, join in, facilitate, assist or encourage, and agrees to take all
actions necessary to opt out of any class in any class action with respect to, any claim, derivative or otherwise, against the Purchaser,
Merger Sub, the Company or any of their respective successors or directors (a) challenging the validity of, or seeking to enjoin the
operation of, any provision of this Agreement or (b) alleging a breach of any fiduciary duty of any person in connection with the evaluation,
negotiation or entry into the Merger Agreement or any other agreement in connection with the Transactions.
4.2
Further Actions. Each Company Stockholder agrees, while this Agreement is in effect, not to take or omit to take, or agree to
commit to take or omit to take, any action that would make any representation and warranty of such Company Stockholder contained in this
Agreement inaccurate in any material respect. Each Company Stockholder further agrees that it shall use its reasonable best efforts to
cooperate with the Purchaser and the Company to effect the transactions contemplated hereby and the Transactions, including to take or
omit to take such actions, and execute such agreements, as may be reasonably requested by the Purchaser or the Company in connection
with the transactions contemplated hereby and the Transactions or that are necessary to give further effect thereto.
4.3
Consent to Disclosure. Each Company Stockholder hereby consents to the publication and disclosure in the Registration Statement
and the Proxy Statement (and, as and to the extent otherwise required by applicable securities Laws or the SEC or any other securities
authorities, any other documents or communications provided by the Purchaser or the Company to any Governmental Authority or to securityholders
of the Purchaser) of such Company Stockholder’s identity and beneficial ownership of the Subject Shares and the nature of such
Company Stockholder’s commitments, arrangements and understandings under and relating to this Agreement and, if deemed appropriate
by the Purchaser or the Company, a copy of this Agreement. Each Company Stockholder will promptly provide any information reasonably
requested by the Purchaser or the Company for any regulatory application or filing made or approval sought in connection with the Transactions
(including filings with the SEC).
4.4
Waiver of Dissenters’ Rights. Each Company Stockholder hereby irrevocably waives, and agrees not to exercise or assert,
any dissenters’ rights under Section 262 of the DGCL and any other similar statute in connection with the Transactions and the
Merger Agreement.
4.5
No Redemption. Each of the Company Stockholders undertakes that, from the date hereof and until the termination of this Agreement,
it will not elect to cause the Company to redeem any Subject Shares now or at any time legally or beneficially owned by such Company
Stockholder (whether pursuant to the Organizational Documents of the Company, Law, contract or otherwise, notwithstanding such Company
Stockholder may have rights thereunder), or submit or surrender any of its Subject Shares for redemption.
4.6
New Shares. In the event that prior to the Expiration Time (i) any equity securities of the Company are issued or otherwise distributed
to a Company Stockholder pursuant to any share dividend or distribution, or any change in any of the Subject Shares or other share capital
the Company by reason of any share subdivision, recapitalization, consolidation, exchange of shares or the like, (ii) a Company Stockholder
acquires legal or beneficial ownership of any Company Shares after the date of this Agreement, or (iii) a Company Stockholder acquires
the right to vote or share in the voting of any Company Shares after the date of this Agreement (collectively, the “New Securities”),
the term “Subject Shares” shall be deemed to refer to and include such New Securities (including all such share
dividends and distributions and any securities into which or for which any or all of the Subject Shares may be changed or exchanged into).
3
4.7
Shareholders’ Consent, Authorization or Approval. Each Company Stockholder hereby irrevocably agrees and confirms
that, insofar as (i) such Company Stockholder’s consent, authorization or approval is required, or (ii) such Company Stockholder
forms part of a class of shareholders of the Company whose consent, authorization or approval is required, in any such case in respect
of or in connection with the Transactions, the Merger Agreement and the other transaction documents contemplated hereby and thereby,
including pursuant to the Organizational Documents of the Company, such Company Stockholder hereby grants, provides and gives such consent,
authorization or approval, and all specific resolutions that may be required to have been adopted by such Company Stockholder or class
of shareholders in connection with the Transactions, the Merger Agreement (as the Merger Agreement exists on the date hereof) and the
other transaction documents contemplated hereby and thereby (as such transaction documents exist on the date hereof), are hereby deemed
adopted and approved by such Company Stockholder (each as is in effect on the date hereof). For the avoidance of doubt, no Company Stockholder
is providing its consent, authorization or approval under this Section 4.7 with respect to any future amendment, modification
or supplement to the Merger Agreement or any other transaction document.
5.
Representations and Warranties of the Company Stockholders. Each Company Stockholder hereby, severally and not jointly, represents
and warrants to the Purchaser, Merger Sub and the Company as follows:
5.1
Ownership of the Company Shares. Such Company Stockholder is either (a) the owner of the Company Shares indicated on Schedule
A hereto opposite such Company Stockholder’s name, free and clear of any and all Liens, other than (i) those created by this
Agreement or (ii) as may be set forth in the Organizational Documents of the Company or (b) has the power to vote (including, without
limitation, by proxy or power of attorney) the Company Shares indicated on Schedule A hereto opposite such Company Stockholder’s
name. Such Company Stockholder has as of the date hereof and, except pursuant to a Transfer permitted in accordance with Section 2.1
hereof, will have until the Expiration Time, sole voting power (including the right to control such vote as contemplated herein), power
of disposition, power to issue instructions with respect to the matters set forth in this Agreement and power to agree to all of the
matters applicable to such Company Stockholder set forth in this Agreement, in each case, over all Subject Shares. As of the date hereof,
such Company Stockholder does not own any other voting securities of the Company or have the power to vote (including by proxy or power
of attorney) any other voting securities of the Company other than the Company Shares set forth on Schedule A opposite such Company
Stockholder’s name. As of the date hereof, such Company Stockholder does not own any rights to purchase or acquire (i) any other
equity securities of the Company or (ii) the power to vote any other voting securities of the Company, in each case except as set forth
on Schedule A opposite such Company Stockholder’s name. There are no claims for finder’s fees or brokerage commissions
or other like payments in connection with this Agreement or the transactions contemplated hereby payable by such Company Stockholder
pursuant to arrangements made by such Company Stockholder.
5.2
Absence of Other Voting Agreement. Except for this Agreement, such Company Stockholder has not: (a) entered into any voting agreement,
voting trust or similar agreement with respect to any Subject Shares or other equity securities of the Company owned by such Company
Stockholder or (b) granted any proxy, consent or power of attorney with respect to any Subject Shares or other equity securities of the
Company owned by such Company Stockholder (other than as contemplated by this Agreement).
5.3
Due Authority. Such Company Stockholder has the full power and authority to make, enter into and carry out the terms of this Agreement.
This Agreement has been duly and validly executed and delivered by such Company Stockholder (and, if such Company Stockholder is married
and any of such Company Stockholder’s Subject Shares constitute community property or otherwise need spousal or other approval
for this Agreement to be valid and binding, such Company Stockholder’s spouse), and constitutes a valid and binding agreement of
such Company Stockholder enforceable against it 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).
4
5.4
No Conflict; Consents.
(a)
The execution and delivery of this Agreement by such Company Stockholder does not, and the performance by such Company Stockholder of
the obligations under this Agreement and the compliance by such Company Stockholder with the provisions hereof do not and will not: (i)
conflict with or violate any Law applicable to such Company Stockholder, (ii) contravene or conflict with, or result in any violation
or breach of, any provision of any charter, certificate of incorporation, limited liability company agreement, certificate of formation,
articles of association, by-laws, operating agreement or similar formation or governing documents and instruments of such Company Stockholder,
as applicable, or (iii) result in any breach of or constitute a default (or an event that with notice or lapse of time or both would
become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, or result in the creation
of a Lien on any of the Subject Shares owned by such Company Stockholder pursuant to any contract or agreement to which such Company
Stockholder is a party or by which such Company Stockholder is bound, except in the case of clause (i) or (iii) as would not reasonably
be expected, either individually or in the aggregate, to materially impair the ability of such Company Stockholder to perform its obligations
hereunder or to consummate the transactions contemplated hereby.
(b)
No consent, approval, order or authorization of, or registration, declaration or filing with, any Governmental Authority or any other
person is required by or with respect to such Company Stockholder in connection with the execution and delivery of this Agreement or
the consummation by such Company Stockholder of the transactions contemplated hereby. If such Company Stockholder is a natural person,
no consent of such Company Stockholder’s spouse is necessary under any “community property” or other Laws in order
for such Company Stockholder to enter into and perform its obligations under this Agreement.
5.5
Absence of Litigation. As of the date hereof, there is no Action pending or, to the knowledge of such Company Stockholder, threatened,
against such Company Stockholder that would reasonably be expected to impair the ability of such Company Stockholder to perform such
Company Stockholder’s obligations hereunder or to consummate the transactions contemplated hereby.
5.6
Reliance by the Purchaser, Merger Sub and the Company. Such Company Stockholder understands and acknowledges that each of the
Purchaser, Merger Sub and the Company is entering into the Merger Agreement in reliance upon such Company Stockholder’s execution
and delivery of this Agreement.
5.7
Company Stockholder Has Adequate Information. Such Company Stockholder is a sophisticated shareholder and has adequate information
concerning the business and financial condition of the Purchaser and the Company to make an informed decision regarding this Agreement
and the Transactions, and has independently, without reliance upon the Purchaser or the Company, and based on such information as such
Company Stockholder has deemed appropriate, made its own analysis and decision to enter into this Agreement. Such Company Stockholder
acknowledges that none of the Purchaser or the Company has made or makes any representation or warranty, whether express or implied,
of any kind or character with respect to the matters covered herein, in each case except as expressly set forth in this Agreement. Such
Company Stockholder acknowledges that the agreements contained herein with respect to the Subject Shares held by such Company Stockholder
are irrevocable.
6.
Termination. This Agreement shall terminate upon the Expiration Time. The termination of this Agreement shall not relieve any
party from any liability arising in respect of any breach of this Agreement prior to such termination.
7.
Miscellaneous.
7.1
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.
7.2
Fees and Expenses. Each of the Parties 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 and the consummation of the transactions
contemplated hereby; provided that the fees and expenses of the Company and the Purchaser shall be allocated as set forth in Section
7.3 (Fees and Expenses) of Article VIII of the Merger Agreement.
5
7.3
No Ownership Interest. Nothing contained in this Agreement shall be deemed to vest in the Purchaser or Merger Sub any direct or
indirect ownership or incidence of ownership of or with respect to any Subject Shares.
7.4
Amendments, Waivers. This Agreement may not be amended except by an instrument in writing signed by each of the Parties hereto.
At any time prior to the Expiration Time,
(a)
The Purchaser and Merger Sub may (i) extend the time for the performance of any obligation or other act of any Company Stockholder, (ii)
waive any inaccuracy in the representations and warranties of each Company Stockholder contained herein or in any document delivered
by any Company Stockholder pursuant hereto and (iii) waive compliance with any agreement of each Company Stockholder or any condition
to their obligations contained herein and any such extension or waiver shall be valid if set forth in an instrument in writing signed
by the Purchaser and Merger Sub;
(b)
the Company Stockholders may (i) extend the time for the performance of any obligation or other act of the Purchaser, Merger Sub or the
Company, (ii) waive any inaccuracy in the representations and warranties of the Purchaser, Merger Sub or the Company contained herein
or in any document delivered by the Purchaser, Merger Sub or the Company pursuant hereto and (iii) waive compliance with any agreement
of the Purchaser, Merger Sub or the Company or any condition to their obligations contained herein.
7.5
Notices. All notices, requests, claims, demands and other communications hereunder shall be in writing and shall be given (and
shall be deemed to have been duly given upon receipt) by delivery in person, by email or by registered or certified mail (postage prepaid,
return receipt requested) to the respective Parties at the following addresses (or at such other address for a Party as shall be specified
in a notice given in accordance with this Section 7.5):
if
to the Purchaser:
APEX
TECH ACQUISITION INC.
13501
Katy Fwy
Houston,
TX 77079
840-244-9122
Attn:
Florence Ng, Chief Executive Officer
Email:
[●]
with
copies (which shall not constitute notice) to:
Lewis
Brisbois Bisgaard & Smith LLP
Attn:
John P. Yung, Esq.
Daniel B. Eng, Esq.
45
Fremont Street, Suite 3000
San
Francisco, CA 94105
Telephone
No.: (415) 362-2580
Email:
john.yung@lewisbrisbois.com
daniel.eng@lewisbrisbois.com
if
to the Company:
KORAI
FLIX, INC.
C/O
Northwest Registered Agent Service, Inc.
8
The Green, Ste B
Dover,
DE 19901
Email:
[●]
6
with
copies (which shall not constitute notice) to:
DLA
Piper UK LLP
20th
Floor, South Tower, Beijing Kerry Center
1
Guanghua Road
Chaoyang
District
Beijing
100020
China
Attn:
Yang Ge
James Chang
Telephone
No.: +86 10 8520 0616
+86
10 8520 0608
Email:
yang.ge@dlapiper.com
james.chang@dlapiper.com
if
to any Company Stockholder, to the address for notice set forth on Schedule A hereto,
7.6
Headings. The descriptive headings contained in this Agreement are included for convenience of reference only and shall not affect
in any way the meaning or interpretation of this Agreement.
7.7
Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule
of law, or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so
long as the economic or legal substance of the transactions contemplated hereby or any of the other Transactions is not affected in any
manner materially adverse to any Party. Upon such determination that any term or other provision is invalid, illegal or incapable of
being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties
as closely as possible in a mutually acceptable manner in order that the transactions contemplated by this Agreement be consummated as
originally contemplated to the fullest extent possible.
7.8
Entire Agreement; Assignment. This Agreement and the schedules hereto (together with each transaction document in connection with
the Transactions to which the Parties hereto are parties, to the extent referred to herein) constitute the entire agreement among the
Parties with respect to the subject matter hereof and supersede all prior agreements and undertakings, both written and oral, among the
Parties, or any of them, with respect to the subject matter hereof. Except for transfers permitted by Section 2.1, this Agreement
shall not be assigned (whether pursuant to a merger, by operation of law or otherwise) by any Party without the prior express written
consent of the other Parties hereto.
7.9
Certificates. Promptly following the date of this Agreement, the Company shall advise its transfer agent in writing that each
Company Stockholder’s Subject Shares are subject to the restrictions set forth herein and, in connection therewith, provide the
transfer agent of the Company, as applicable, in writing with such information as is reasonable to ensure compliance with such restrictions.
7.10
Parties in Interest. This Agreement shall be binding upon and inure solely to the benefit of each Party, and nothing in this Agreement,
express or implied, is intended to or shall confer upon any other person any right, benefit or remedy of any nature whatsoever under
or by reason of this Agreement.
7.11
Interpretation.
(a)
Unless the context of this Agreement otherwise requires, (i) words of any gender include each other gender, (ii) words using the singular
or plural number also include the plural or singular number, respectively, (iii) the definitions contained in this agreement are applicable
to the other grammatical forms of such terms, (iv) the terms “hereof,” “herein,” “hereby,” “hereto”
and derivative or similar words refer to this entire Agreement, (v) the terms “Section” and “Schedule” refer
to the specified Section or Schedule of or to this Agreement, (vi) the word “including” means “including without limitation,”
(vii) the word “or” shall be disjunctive but not exclusive, (viii) the word “person” means an individual, corporation,
partnership, limited partnership, limited liability company, syndicate, person (including, without limitation, a “person”
as defined in Section 13(d)(3) of the Exchange Act), trust, association or entity or government, political subdivision, agency or instrumentality
of a government, and references to a person are also to its permitted successors and assigns, (ix), an “affiliate” of a specified
person means a person who, directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common
control with, such specified person, (x) references to agreements and other documents shall be deemed to include all subsequent amendments
and other modifications thereto and references to any Law shall include all rules and regulations promulgated thereunder and (xi) references
to any Law shall be construed as including all statutory, legal, and regulatory provisions consolidating, amending or replacing such
Law.
7
(b)
The language used in this Agreement shall be deemed to be the language chosen by the Parties to express their mutual intent and no rule
of strict construction shall be applied against any Party.
7.12
Governing Law. This Agreement shall be governed by, and construed in accordance with, the Laws of the State of Delaware applicable
to contracts executed in and to be performed in that State. All legal actions and proceedings arising out of or relating to this Agreement
shall be heard and determined exclusively in any federal and state courts located in the City of New York, Borough of Manhattan (the
“Specified Courts”). The Parties hereby (a) irrevocably submit to the exclusive jurisdiction of the aforesaid Specified
Courts for themselves and with respect to their respective properties for the purpose of any Action arising out of or relating to this
Agreement brought by any Party, and (b) agree not to commence any Action relating thereto except in the Specified Courts, other than
Actions in any court of competent jurisdiction to enforce any judgment, decree or award rendered by any such Specified Courts. Each of
the Parties further agrees that notice as provided herein shall constitute sufficient service of process and the Parties further waive
any argument that such service is insufficient. Each of the Parties hereby irrevocably and unconditionally waives, and agrees not to
assert, by way of motion or as a defense, counterclaim or otherwise, in any Action arising out of or relating to this Agreement or the
transactions contemplated hereby any claim (a) that it is not personally subject to the jurisdiction of the Specified Courts for any
reason, (b) that it or its property is exempt or immune from jurisdiction of any such Specified Court or from any legal process commenced
in such Specified Courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment,
execution of judgment or otherwise) and (c) that (i) the Action in any such Specified Court is brought in an inconvenient forum, (ii)
the venue of such Action is improper or (iii) this Agreement, or the subject matter hereof, may not be enforced in or by such Specified
Courts.
7.13
Specific Performance. The Parties agree that irreparable damage would occur if any provision of this Agreement were not performed
in accordance with the terms hereof, and, accordingly, that the Parties shall be entitled to an injunction or injunctions to prevent
breaches of this Agreement or to enforce specifically the performance of the terms and provisions hereof in the Specified Courts without
proof of actual damages or otherwise, in addition to any other remedy to which they are entitled at law or in equity as expressly permitted
in this Agreement. Each of the Parties hereby further waives (a) any defense in any action for specific performance that a remedy at
law would be adequate and (b) any requirement under any Law to post security or a bond as a prerequisite to obtaining equitable relief.
7.14
WAIVER OF JURY TRIAL. EACH OF THE PARTIES HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY WITH RESPECT TO ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR
THE TRANSACTIONS CONTEMPLATED HEREBY. EACH OF THE PARTIES (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY
HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER
AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED
HEREBY, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 7.14.
7.15
Counterparts; Electronic Delivery. This Agreement may be executed and delivered (including by facsimile or portable document format
(.pdf) transmission) in one or more counterparts, and by the different Parties hereto in separate counterparts, each of which when executed
shall be deemed to be an original but all of which taken together shall constitute one and the same agreement. Delivery by email to counsel
for the other Parties of a counterpart executed by a Party shall be deemed to meet the requirements of the previous sentence.
7.16
Directors and Officers. Nothing in this Agreement shall be construed to impose any obligation or limitation on votes or actions
taken by any director, officer, employee, agent, designee or other representative of any Company Stockholder or by any Company Stockholder
that is a natural person, in each case, in his or her capacity as a director or officer of the Company or any of its Subsidiaries. Each
Company Stockholder is executing this Agreement solely in such capacity as a record or beneficial holder of Company Shares.
[Remainder
of Page Intentionally Left Blank]
8
In
witness whereof, the Parties hereto have caused this Agreement to be executed as of the date first set forth above.
THE
PURCHASER:
APEX
TECH ACQUISITION INC.
By:
Name:
Florence
Ng
Title:
Chief
Executive Officer
[Signature
page to Voting Agreement]
In
witness whereof, the Parties hereto have caused this Agreement to be executed as of the date first set forth above.
MERGER
SUB:
APEX
TECH MERGER SUB INC.
By:
Name:
Florence
Ng
Title:
Chief
Executive Officer
[Signature
page to Voting Agreement]
In
witness whereof, the Parties hereto have caused this Agreement to be executed as of the date first set forth above.
COMPANY:
KORAI
FLIX, INC.
By:
Name:
Title:
In
witness whereof, the Parties hereto have caused this Agreement to be executed as of the date first set forth above.
COMPANY
STOCKHOLDERS:
[●]
Schedule
A
Company
Stockholders
Company
Stockholder
Company
Class A Common Stock
Company
Class B Common Stock
Other
Company Stock (if any)
Address
for Notices
Total:
EX-10.2
EX-10.2
Filename: ex10-2.htm · Sequence: 4
Exhibit
10.2
FORM
OF LOCK-UP AGREEMENT
This
Lock-Up Agreement (this “Agreement”) is dated as of [●], 2026, by and among (i) APEX Tech Acquisition Inc.,
a Cayman Islands exempted company (the “Purchaser”), (ii) Apex Innovation Acquisition Corp., a Delaware corporation,
in its capacity as the sponsor of the Purchaser and as the Purchaser Representative under the Merger Agreement (the “Sponsor”),
and (iii) the Significant Company Holder listed on the signature pages hereto (the “Shareholder”). Capitalized terms
used but not otherwise defined herein shall have the respective meanings ascribed to such terms in the Merger Agreement (as defined below).
RECITALS
WHEREAS,
the Shareholder is a Significant Company Holder and owns certain shares of Company Stock, which, pursuant to the terms of the Merger
Agreement, will be converted into the right to receive shares of Purchaser Common Stock in connection with the Merger.
WHEREAS,
on the date hereof, the Purchaser, APEX Tech Merger Sub Inc., a Delaware corporation and a wholly-owned subsidiary of the Purchaser (“Merger
Sub”), the Sponsor, Korai Flix, Inc., a Delaware corporation (the “Company”), and Mr. Hongdae Lee (the “Company
Representative”) entered into that certain Agreement and Plan of Merger, dated as of October [●], 2026 (as amended, the
“Merger Agreement”), pursuant to which, upon the terms and subject to the conditions set forth therein: (a) prior
to the Effective Time, the Purchaser will continue out of the Cayman Islands and into the State of Delaware so as to re-domicile as and
become a Delaware corporation (the “Conversion”), and (b) at the Effective Time, Merger Sub will merge with and into
the Company (the “Merger”), with the Company continuing as the surviving corporation and each share of Company Stock
being converted into the right to receive the Merger Consideration (the Conversion and the Merger, together with the other transactions
contemplated by the Merger Agreement, the “Transactions”).
WHEREAS,
in connection with the Transactions, the parties hereto wish to set forth herein certain understandings between such parties with respect
to restrictions on the transfer of the shares of Purchaser Common Stock held by the Shareholder immediately after the Closing, including
the shares to be received by the Shareholder as Merger Consideration and, if applicable, the shares issued pursuant to Section 1.9(d)
of the Merger Agreement.
NOW,
THEREFORE, the parties agree as follows:
1.
Subject to the exceptions set forth herein, the Shareholder agrees not to, without the prior written consent of the Purchaser (acting
by its board of directors) and the Sponsor, (i) sell, offer to sell, contract or agree to sell, hypothecate, pledge, grant any option
to purchase or otherwise dispose of or agree to dispose of, directly or indirectly, or establish or increase a put equivalent position
or liquidate or decrease a call equivalent position within the meaning of Section 16 of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”), and the rules and regulations of the Securities and Exchange Commission promulgated thereunder, shares
of Purchaser Common Stock (the “Purchaser Shares”) or any rights, options, warrants or other securities convertible into
or exercisable or exchangeable for any Purchaser Shares (the “Purchaser Share Convertible Securities”), in each case held
by it immediately after the Closing, as well as any Purchaser Shares issuable upon the exercise of any such Purchaser Share Convertible
Securities (collectively, the “Subject Securities”), (ii) enter into any swap or other arrangement that transfers to another,
in whole or in part, any of the economic consequences of ownership of any of such Subject Securities, whether any such transaction is
to be settled by delivery of such securities, in cash or otherwise or (iii) publicly announce any intention to effect any transaction
specified in clause (i) or (ii) (the actions specified in clauses (i)-(iii), collectively, “Transfer”) for the period (the
“Lock-Up Period”) commencing on the Closing Date until, (x) with respect to the 35,000 Purchaser Shares to be issued to the
Company Representative in accordance with Section 1.9(d) of the Merger Agreement, the date that is twelve (12) months immediately after
the Closing Date, and (y) with respect to other Subject Securities, the date that is six (6) months immediately after the Closing Date;
provided that the Lock-Up Period shall expire on such earlier date on which the Purchaser completes a liquidation, merger, capital stock
exchange, reorganization or other similar transaction that results in all of the Purchaser’s shareholders having the right to exchange
their Purchaser Shares or other equity securities of the Purchaser for cash, securities or other property, and following which the stockholders
of the Purchaser immediately prior to such transaction cease to hold a majority of the voting power of the Purchaser or the surviving
or successor entity.
Without
limiting the generality of Section 1, during the Lock-Up Period, the Shareholder shall not, directly or indirectly, (a) pledge, hypothecate,
or grant any security interest in any Subject Securities to any person (including in connection with any margin loan or similar financing
arrangement), (b) enter into any prepaid variable forward contract, equity swap, collar, or other derivative transaction with respect
to any Subject Securities, or (c) write or purchase any put or call option or enter into any other hedging or monetization transaction
with respect to any Subject Securities. Any violation of this paragraph shall be deemed a Transfer in violation of Section 1.
2. The
restrictions set forth in Section 1 shall not apply to:
(i) if
the Shareholder is not an individual, in the case of an entity, Transfers to a shareholder,
partner, member or direct or indirect affiliate (within the meaning set forth in Rule 405
under the Securities Act) of the Shareholder;
(ii) if
the Shareholder is an individual, Transfers by gift to members of the individual’s
immediate family (as defined below) or to a trust, the beneficiary of which is the Shareholder
or a member of the Shareholder’s immediate family, or to a charitable organization;
(iii) if
the Shareholder is an individual, Transfers by virtue of laws of descent and distribution
upon death of the individual;
(iv) if
the Shareholder is an individual, Transfers pursuant to a qualified domestic relations order;
(v) if
the Shareholder is an entity, Transfers by virtue of the laws of the jurisdiction of the
entity’s organization and the entity’s organizational documents upon dissolution
of the entity;
(vi) [Reserved];
(vii) Transfers
to the Purchaser pursuant to any contractual arrangement in effect at the Effective Time
that provides for the repurchase by the Company or forfeiture of the Shareholder’s
shares in the Company or other securities convertible into or exercisable or exchangeable
for shares in the Company in connection with the termination of the Shareholder’s service
to the Company; and
(viii) Transfers
pursuant to transactions in the event of completion of a liquidation, merger, stock exchange
or other similar transactions which results in all of the Purchaser’s shareholders
having the right to exchange their Purchaser Shares for cash, securities or other property;
provided,
however, that in the case of clauses (i) through (v), these permitted transferees must enter into a written agreement, in substantially
the form of this Agreement (it being understood that any references to “immediate family” in the agreement executed by such
transferee shall expressly refer only to the immediate family of the Shareholder and not to the immediate family of the transferee),
agreeing to be bound by these Transfer restrictions. For purposes of this Section 2, “immediate family” shall mean a spouse,
domestic partner, child, grandchild or other lineal descendant (including by adoption), father, mother, brother or sister of the Shareholder;
and “affiliate” shall have the meaning set forth in Rule 405 under the Securities Act of 1933, as amended. The Shareholder
shall provide prior written notice to the Purchaser and the Sponsor of any Transfer made pursuant to the foregoing exceptions at least
five (5) Business Days prior to such Transfer, and any Transfer in violation of this Agreement shall be void and of no effect.
3.
The Shareholder hereby represents and warrants that such Shareholder has full power and authority to enter into this Agreement and that
this Agreement constitutes the legal, valid and binding obligation of the Shareholder, enforceable in accordance with its terms. Upon
request, the Shareholder will execute any additional documents necessary in connection with enforcement hereof, provided that the terms
of any such additional document shall not impose any additional restrictions or obligations on the Shareholder. Any obligations of the
Shareholder shall be binding upon the successors and assigns of the Shareholder from and after the date hereof. The Shareholder further
represents and warrants that, when the Subject Securities are issued to the Shareholder, the Shareholder will have, and, except as contemplated
by Sections 1 and 2 above, will retain for the duration of the Lock-Up Period good and marketable title to its Subject Securities, free
and clear of all liens, encumbrances, and claims whatsoever (other than arising or as expressly permitted under this Agreement or under
applicable securities laws)
4.
This Agreement constitutes the entire agreement and understanding of the parties in respect of the subject matter hereof and supersedes
all prior understandings, agreements or representations by or among the parties, written or oral, to the extent they relate in any way
to the subject matter hereof or the transactions contemplated hereby. This Agreement may not be changed, amended, modified or waived
(other than to correct a typographical error) as to any particular provision, except by a written instrument executed by all of the parties
(including, for the avoidance of doubt, the Purchaser); and no waiver of, or consent to departure from, any provision of this Agreement
shall be effective unless in writing and signed by the Purchaser and the Sponsor.
5.
No party may assign either this Agreement or any of its rights, interests or obligations hereunder without the prior written consent
of the other parties. Any purported assignment in violation of this Section shall be void and ineffectual and shall not operate to transfer
or assign any interest or title to the purported assignee. This Agreement shall be binding on the Shareholder and each of its respective
successors, heirs and assigns and permitted transferees.
6.
The Shareholder hereby authorizes the Purchaser to cause its transfer agent to decline to transfer, and to note stop-transfer restrictions
on the stock register and other records relating to, the Subject Securities for which the Shareholder is the record holder, and, in the
case of Subject Securities for which the Shareholder is the beneficial but not the record holder, the Shareholder agrees to cause the
record holder of such Subject Securities to cause the transfer agent to decline to transfer, and to note stop-transfer restrictions on
the stock register and other records relating to, such Subject Securities, in each case to the extent consistent with and for the period
of the restrictions on transfer contemplated by this Agreement. The Purchaser shall cause each certificate (or book-entry position) representing
any Subject Securities to be stamped or otherwise imprinted with a legend in substantially the following form: “THE SECURITIES
REPRESENTED HEREBY ARE SUBJECT TO A LOCK-UP AGREEMENT THAT RESTRICTS THE TRANSFER OF SUCH SECURITIES. A COPY OF SUCH AGREEMENT MAY BE
OBTAINED FROM THE SECRETARY OF THE ISSUER.”
7.
This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware, without giving effect
to conflicts of law principles that would result in the application of the substantive laws of another jurisdiction. Section 9.4 (Governing
Law; Jurisdiction) of the Merger Agreement shall apply mutatis mutandis hereunder.
8.
EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY AND ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED
ON CONTRACT, TORT, OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE ACTIONS OF ANY PARTY HERETO IN NEGOTIATION, ADMINISTRATION,
PERFORMANCE OR ENFORCEMENT HEREOF.
9.
The parties hereto agree that irreparable damage would occur in the event any provision of this Agreement were not performed in accordance
with the terms hereof, and that the parties shall be entitled to specific performance of the terms hereof in addition to any other remedy
at law or in equity, including injunctive relief to prevent breaches of this Agreement and to enforce specifically the terms and provisions
hereof, in each case without the necessity of proving actual damages or posting any bond or other security.
10.
This Agreement shall become effective as of the Closing and shall terminate upon expiration of the Lock-Up Period.
11.
This Agreement may be executed and delivered (including by facsimile or portable document format (.pdf) transmission) in one or more
counterparts, and by the different Parties hereto in separate counterparts, each of which when executed shall be deemed to be an original
but all of which taken together shall constitute one and the same agreement. Delivery by email to counsel for the other parties of a
counterpart executed by a party shall be deemed to meet the requirements of the previous sentence.
[remainder
of page intentionally left blank]
SIGNIFICANT
COMPANY HOLDER:
[NAME
OF SIGNIFICANT COMPANY HOLDER]
By:
Name:
Title:
Address:
[Signature
Page to Lock-up Agreement]
PURCHASER:
APEX
TECH ACQUISITION INC.
By:
Name:
Florence
Ng
Title:
Chief
Executive Officer
Address:
13501 Katy Freeway, Houston, TX 77079
[Signature
Page to Lock-up Agreement]
SPONSOR:
APEX
INNOVATION ACQUISITION CORP.
By:
Name:
Shaoren
Liu
Title:
Director
Address:
13501 Katy Freeway, Houston, TX 77079
[Signature
Page to Lock-up Agreement]
EX-10.3
EX-10.3
Filename: ex10-3.htm · Sequence: 5
Exhibit
10.3
FORM
OF SPONSOR SUPPORT AGREEMENT
This
Sponsor Support Agreement (this “Agreement”) is made and entered into as of [●], 2026, by and among (i)
APEX Tech Acquisition Inc., a Cayman Islands exempted company (the “Purchaser”), (ii) Korai Flix, Inc., a Delaware
corporation (the “Company”), and (iii) Apex Innovation Acquisition Corp., a Delaware corporation (the “Sponsor”).
The Purchaser, the Company and the Sponsor are sometimes referred to herein as a “Party” and collectively as
the “Parties”. Capitalized terms used but not otherwise defined herein shall have the respective meanings ascribed
to such terms in the Merger Agreement (as defined below).
RECITALS
A.
On [●], 2026, the Purchaser, APEX Tech Merger Sub Inc., a Delaware corporation and a wholly-owned subsidiary of the Purchaser (“Merger
Sub”), the Sponsor, as the Purchaser Representative, Hongdae Lee, as the Company Representative, and the Company entered
into an Agreement and Plan of Merger (as amended from time to time, the “Merger Agreement”), pursuant to which,
upon the terms and subject to the conditions set forth therein: (a) prior to the Effective Time, the Purchaser will continue out of the
Cayman Islands and into the State of Delaware so as to re-domicile as and become a Delaware corporation (the “Conversion”),
and (b) at the Effective Time, Merger Sub will merge with and into the Company (the “Merger”), with the Company
continuing as the surviving corporation and each share of Company Stock being converted into the right to receive the Merger Consideration
(the Conversion and the Merger, together with the other transactions contemplated by the Merger Agreement, the “Transactions”).
B.
The Sponsor agrees to enter into this Agreement with respect to all Purchaser Ordinary Shares and other Purchaser Securities of which
the Sponsor now or hereafter has beneficial ownership (as such term is defined in Rule 13d-3 under the Exchange Act) and/or record ownership.
C.
As of the date hereof, the Sponsor is the owner of, and/or has voting power (including, without limitation, by proxy or power of attorney)
over, the Purchaser Securities set forth opposite the Sponsor’s name on Schedule A attached hereto (all such Purchaser Securities,
together with any other Purchaser Securities of which beneficial and/or record ownership and/or the power to vote (including, without
limitation, by proxy or power of attorney) is hereafter acquired by the Sponsor (or any securities convertible into or exercisable or
exchangeable for Purchaser Ordinary Shares) during the period from the date hereof through the Expiration Time are collectively referred
to herein as the “Subject Shares”).
D.
As a condition to the willingness of the Purchaser and the Company to enter into the Merger Agreement and as an inducement and in consideration
therefor, the Sponsor has agreed to enter into this Agreement.
E.
Each of the Parties has determined that it is in its best interest to enter into this Agreement.
NOW,
THEREFORE, in consideration of the foregoing and the respective representations, warranties, covenants and agreements set forth below
and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto, intending
to be legally bound, do hereby agree as follows:
1.
Definitions. When used in this Agreement, the following terms in all of their tenses, cases and correlative forms shall have the
meanings assigned to them in this Section 1 or elsewhere in this Agreement.
“Expiration
Time” shall mean the earliest to occur of (a) the Effective Time, (b) such date and time as the Merger Agreement shall
be terminated in accordance with Section 7.1 (Termination) of Article VII thereof and (c) the mutual written agreement of the Purchaser,
the Company and the Sponsor.
“Transfer”
shall mean any sale, assignment, encumbrance, pledge, hypothecation, disposition, loan or other transfer, or entry into any contract,
agreement, option or other arrangement or understanding with respect to any sale, assignment, encumbrance, pledge, hypothecation, disposition,
loan or other transfer, in each case directly or indirectly and voluntarily or involuntarily, of any interest owned by a person or any
interest (including a beneficial interest) in, or the ownership, control or possession of, any interest owned by a person, excluding
entry into this Agreement, the Merger Agreement and the Ancillary Documents and the consummation of the transactions contemplated hereby
and thereby.
2.
Agreement to Retain the Subject Shares.
2.1
No Transfer of Subject Shares. Until the Expiration Time, the Sponsor agrees not to (x) Transfer any Subject Shares or (y) deposit
any Subject Shares into a voting trust or enter into a voting agreement with respect to any Subject Shares or grant any proxy (except
as otherwise provided herein), consent or power of attorney with respect thereto (other than pursuant to this Agreement). Notwithstanding
the foregoing, (A) the Sponsor may Transfer any Subject Shares to any partner, member, shareholder, or affiliate of the Sponsor in accordance
with the terms of the Organizational Documents of the Purchaser, and (B) the Sponsor may Transfer any Subject Shares upon the consent
of the Company; provided, that in each case such transferee of such Subject Shares evidences in a writing, in form and substance reasonably
satisfactory to the Purchaser and the Company, such transferee’s agreement to be bound by and subject to all of the terms and provisions
hereof to the same effect as the Sponsor, prior and as a condition to the occurrence of such Transfer.
2.2
Additional Purchases. Until the Expiration Time, the Sponsor agrees that any Subject Shares that the Sponsor purchases, that are
issued to the Sponsor by the Purchaser, that are otherwise hereinafter acquired by the Sponsor or with respect to which the Sponsor otherwise
acquires sole or shared voting power (including by proxy or power of attorney) after the execution of this Agreement and prior to the
Expiration Time, shall in each case be subject to the terms and conditions of this Agreement to the same extent as if they were Subject
Shares owned by the Sponsor as of the date hereof. The Sponsor agrees, while this Agreement is in effect, to notify the Purchaser and
the Company promptly in writing (including by e-mail) of the number of any additional Subject Shares acquired, or over which voting power
is acquired, by the Sponsor, if any, after the date hereof.
2.3
Unpermitted Transfers. Any Transfer or attempted Transfer of any Subject Shares in violation of this Section 2.1 shall, to the
fullest extent permitted by applicable Law, be null and void ab initio.
3.
Voting of Subject Shares. Hereafter until the Expiration Time, the Sponsor hereby unconditionally and irrevocably agrees that,
at any meeting of the shareholders of the Purchaser (including the Purchaser Special Meeting) (or any adjournment or postponement thereof),
and in any action by written consent of the shareholders of the Purchaser permitted by the Organizational Documents of the Purchaser
or otherwise undertaken as contemplated by the Transactions (which written consent shall be delivered promptly, and in any event not
later than two (2) Business Days, after the Purchaser requests such delivery), the Sponsor shall: if a meeting is held, attend and appear
at the meeting, in person or by proxy, or otherwise cause its Subject Shares to be counted as present thereat for purposes of establishing
a quorum, and the Sponsor shall vote all of the Subject Shares to which the Sponsor has sole or shared voting power and is entitled to
vote; and/or if a written consent or approval is requested, duly and promptly execute and provide such written consent or approval (or
cause to be voted or so consented or approved), in person or by proxy, in respect of all of its Subject Shares: (i) in favor of (a) the
Conversion, the Merger, the Merger Agreement, the Ancillary Documents, the adoption of the Conversion Organizational Documents and the
Amended Purchaser Organizational Documents, and all of the other Transactions (and any actions required in furtherance thereof), (b)
the other matters set forth in the Merger Agreement, including the Purchaser Shareholder Approval Matters, or if there are insufficient
votes in favor of granting the approval of the matters described in the foregoing clauses (a) and (b), in favor of the adjournment or
postponement of such meeting of the shareholders of the Purchaser to a later date, (ii) in opposition to, other than as contemplated
by the Merger Agreement, (x) any material change in the present capitalization of the Purchaser or any amendment of the Purchaser’s
Organizational Documents, (y) any material change in the Purchaser’s corporate structure or business or (z) any proposal, offer,
or submission with respect to an Acquisition Proposal or Alternative Transaction (“Competing Transaction”) or the adoption
of any agreement to enter into a Competing Transaction; and (iii) in any other circumstances upon which a vote, consent or other approval
with respect to the matters described in the foregoing clause (i) is sought, to vote, consent or approve (or cause to be voted, consented
or approved) all of the Sponsor’s Subject Shares held at such time in favor of the foregoing; provided, however, that the Sponsor
shall not be required to vote or provide consent or take any other action, in each case to the extent any such vote, consent or other
action would preclude SEC registration of the Purchaser Common Stock being issued to the Company Stockholders as contemplated by the
Merger Agreement.
4.
Additional Agreements.
4.1
No Challenges. The Sponsor agrees not to commence, join in, facilitate, assist or encourage, and agrees to take all actions necessary
to opt out of any class in any class action with respect to, any claim, derivative or otherwise, against the Purchaser, Merger Sub, the
Company or any of their respective successors or directors (a) challenging the validity of, or seeking to enjoin the operation of, any
provision of this Agreement or (b) alleging a breach of any fiduciary duty of any person in connection with the evaluation, negotiation
or entry into the Merger Agreement or any other agreement in connection with the Transactions.
2
4.2
Further Actions. The Sponsor agrees, while this Agreement is in effect, not to take or omit to take, or agree to commit to take
or omit to take, any action that would make any representation and warranty of the Sponsor contained in this Agreement inaccurate in
any material respect. The Sponsor further agrees that it shall use its reasonable best efforts to cooperate with the Purchaser and the
Company to effect the transactions contemplated hereby and the Transactions, including to take or omit to take such actions, and execute
such agreements, as may be reasonably requested by the Purchaser or the Company in connection with the transactions contemplated hereby
and the Transactions or that are necessary to give further effect thereto.
4.3
Consent to Disclosure. The Sponsor hereby consents to the publication and disclosure in the Registration Statement and the Proxy
Statement (and, as and to the extent otherwise required by applicable securities Laws or the SEC or any other securities authorities,
any other documents or communications provided by the Purchaser or the Company to any Governmental Authority or to securityholders of
the Purchaser) of the Sponsor’s identity and beneficial ownership of the Subject Shares and the nature of the Sponsor’s commitments,
arrangements and understandings under and relating to this Agreement and, if deemed appropriate by the Purchaser or the Company, a copy
of this Agreement. The Sponsor will promptly provide any information reasonably requested by the Purchaser or the Company for any regulatory
application or filing made or approval sought in connection with the Transactions (including filings with the SEC).
4.4
Waiver of Appraisal and Dissenters’ Rights. The Sponsor hereby irrevocably waives, and agrees not to exercise or assert,
any appraisal rights, dissenters’ rights or similar rights under Section 262 of the Delaware General Corporation Law, Section 238
of the Companies Act (Revised) of the Cayman Islands and any other similar statute in connection with the Conversion, the Merger, the
other Transactions and the Merger Agreement.
4.5
No Redemption. The Sponsor undertakes that, from the date hereof and until the termination of this Agreement, it will not elect
to cause the Purchaser to redeem any Subject Shares now or at any time legally or beneficially owned by the Sponsor (whether pursuant
to the Organizational Documents of the Purchaser, Law, contract or otherwise, notwithstanding the Sponsor may have rights thereunder),
or submit or surrender any of its Subject Shares for redemption.
4.6
New Shares. In the event that prior to the Expiration Time (i) any equity securities of the Purchaser are issued or otherwise
distributed to the Sponsor pursuant to any share dividend or distribution, or any change in any of the Subject Shares or other share
capital of the Purchaser by reason of any share subdivision, recapitalization, consolidation, exchange of shares or the like, (ii) the
Sponsor acquires legal or beneficial ownership of any Purchaser Ordinary Shares or other Purchaser Securities after the date of this
Agreement, or (iii) the Sponsor acquires the right to vote or share in the voting of any Purchaser Ordinary Shares or other Purchaser
Securities after the date of this Agreement (collectively, the “New Securities”), the term “Subject Shares”
shall be deemed to refer to and include such New Securities (including all such share dividends and distributions and any securities
into which or for which any or all of the Subject Shares may be changed or exchanged into).
4.7
Stockholders’ Consent, Authorization or Approval. The Sponsor hereby irrevocably agrees and confirms that, insofar
as (i) the Sponsor’s consent, authorization or approval is required, or (ii) the Sponsor forms part of a class of shareholders
of the Purchaser whose consent, authorization or approval is required, in any such case in respect of or in connection with the Transactions,
the Merger Agreement and the other transaction documents contemplated hereby and thereby, including pursuant to the Organizational Documents
of the Purchaser, the Sponsor hereby grants, provides and gives such consent, authorization or approval, and all specific resolutions
that may be required to have been adopted by the Sponsor or such class of shareholders in connection with the Transactions, the Merger
Agreement (as the Merger Agreement exists on the date hereof) and the other transaction documents contemplated hereby and thereby (as
such transaction documents exist on the date hereof), are hereby deemed adopted and approved by the Sponsor (each as is in effect on
the date hereof). For the avoidance of doubt, no shareholder is providing its consent, authorization or approval under this Section 4.7
with respect to any future amendment, modification or supplement to the Merger Agreement or any other transaction document.
3
5.
Representations and Warranties of the Sponsor. The Sponsor hereby represents and warrants to the Purchaser and the Company as
follows:
5.1
Ownership of the Purchaser Securities. The Sponsor is either (a) the owner of the Purchaser Securities indicated on Schedule
A, free and clear of any and all Liens, other than (i) those created by this Agreement or (ii) as may be set forth in the Organizational
Documents of the Purchaser or (b) has the power to vote (including, without limitation, by proxy or power of attorney) the Purchaser
Securities indicated on Schedule A. The Sponsor has as of the date hereof and, except pursuant to a Transfer permitted in accordance
with Section 2.1 hereof, will have until the Expiration Time, sole voting power (including the right to control such vote as contemplated
herein), power of disposition, power to issue instructions with respect to the matters set forth in this Agreement and power to agree
to all of the matters applicable to the Sponsor set forth in this Agreement, in each case, over all Subject Shares. As of the date hereof,
the Sponsor does not own any other voting securities of the Purchaser or have the power to vote (including by proxy or power of attorney)
any other voting securities of the Purchaser other than the Purchaser Securities set forth on Schedule A. Except as disclosed
in the Purchaser Disclosure Schedules and/or the SEC Reports, as of the date hereof, the Sponsor does not own any rights to purchase
or acquire (i) any other equity securities of the Purchaser or (ii) the power to vote any other voting securities of the Purchaser, in
each case except as set forth on Schedule A. Except as disclosed in the Purchaser Disclosure Schedules and/or the SEC Reports,
there are no claims for finder’s fees or brokerage commissions or other like payments in connection with this Agreement or the
transactions contemplated hereby payable by the Sponsor pursuant to arrangements made by the Sponsor.
5.2
Absence of Other Voting Agreement. Except as disclosed in the Purchaser Disclosure Schedules and/or the SEC Reports, and except
for this Agreement, the Sponsor has not: (a) entered into any voting agreement, voting trust or similar agreement with respect to any
Subject Shares or other equity securities of the Purchaser owned by the Sponsor or (b) granted any proxy, consent or power of attorney
with respect to any Subject Shares or other equity securities of the Purchaser owned by the Sponsor (other than as contemplated by this
Agreement).
5.3
Due Authority. The Sponsor has the full power and authority to make, enter into and carry out the terms of this Agreement. This
Agreement has been duly and validly executed and delivered by the Sponsor, and constitutes a valid and binding agreement of the Sponsor
enforceable against it 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).
5.4
No Conflict; Consents.
(a)
The execution and delivery of this Agreement by the Sponsor does not, and the performance by the Sponsor of the obligations under this
Agreement and the compliance by the Sponsor with the provisions hereof do not and will not: (i) conflict with or violate any Law applicable
to the Sponsor, (ii) contravene or conflict with, or result in any violation or breach of, any provision of any charter, certificate
of incorporation, limited liability company agreement, certificate of formation, articles of association, by-laws, operating agreement
or similar formation or governing documents and instruments of the Sponsor, as applicable, or (iii) result in any breach of or constitute
a default (or an event that with notice or lapse of time or both would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, or result in the creation of a Lien on any of the Subject Shares owned by the Sponsor pursuant
to any contract or agreement to which the Sponsor is a party or by which the Sponsor is bound, except in the case of clause (i) or (iii)
as would not reasonably be expected, either individually or in the aggregate, to materially impair the ability of the Sponsor to perform
its obligations hereunder or to consummate the transactions contemplated hereby.
(b)
No consent, approval, order or authorization of, or registration, declaration or filing with, any Governmental Authority or any other
person is required by or with respect to the Sponsor in connection with the execution and delivery of this Agreement or the consummation
by the Sponsor of the transactions contemplated hereby.
5.5
Absence of Litigation. As of the date hereof, there is no Action pending or, to the knowledge of the Sponsor, threatened, against
the Sponsor that would reasonably be expected to impair the ability of the Sponsor to perform the Sponsor’s obligations hereunder
or to consummate the transactions contemplated hereby.
4
5.6
Reliance by the Purchaser and the Company. The Sponsor understands and acknowledges that each of the Purchaser and the Company
is entering into the Merger Agreement in reliance upon the Sponsor’s execution and delivery of this Agreement.
5.7
The Sponsor Has Adequate Information. The Sponsor is a sophisticated shareholder and has adequate information concerning the business
and financial condition of the Purchaser and the Company to make an informed decision regarding this Agreement and the Transactions,
and has independently, without reliance upon the Purchaser or the Company, and based on such information as the Sponsor has deemed appropriate,
made its own analysis and decision to enter into this Agreement. The Sponsor acknowledges that none of the Purchaser or the Company has
made or makes any representation or warranty, whether express or implied, of any kind or character with respect to the matters covered
herein, in each case except as expressly set forth in this Agreement. The Sponsor acknowledges that the agreements contained herein with
respect to the Subject Shares held by the Sponsor are irrevocable.
6.
Termination. This Agreement shall terminate upon the Expiration Time. The termination of this Agreement shall not relieve any
party from any liability arising in respect of any willful and material breach of this Agreement prior to such termination.
7.
Miscellaneous.
7.1
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.
7.2
Fees and Expenses. Each of the Parties 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 and the consummation of the transactions
contemplated hereby; provided that the fees and expenses of the Company and the Purchaser shall be allocated as set forth in Section
7.3 (Fees and Expenses) of the Merger Agreement.
7.3
No Ownership Interest. Nothing contained in this Agreement shall be deemed to vest in the Company or the Purchaser any direct
or indirect ownership or incidence of ownership of or with respect to any Subject Shares.
7.4
Amendments, Waivers. This Agreement may not be amended except by an instrument in writing signed by each of the Parties hereto.
At any time prior to the Expiration Time,
(a)
the Purchaser may (i) extend the time for the performance of any obligation or other act of the Sponsor, (ii) waive any inaccuracy in
the representations and warranties of the Sponsor contained herein or in any document delivered by the Sponsor pursuant hereto and (iii)
waive compliance with any agreement of the Sponsor or any condition to their obligations contained herein and any such extension or waiver
shall be valid if set forth in an instrument in writing signed by the Purchaser;
(b)
the Sponsor may (i) extend the time for the performance of any obligation or other act of the Purchaser or the Company, (ii) waive any
inaccuracy in the representations and warranties of the Purchaser or the Company contained herein or in any document delivered by the
Purchaser or the Company pursuant hereto and (iii) waive compliance with any agreement of the Purchaser or the Company or any condition
to their obligations contained herein.
5
7.5
Notices. All notices, requests, claims, demands and other communications hereunder shall be in writing and shall be given (and
shall be deemed to have been duly given upon receipt) by delivery in person, by email or by registered or certified mail (postage prepaid,
return receipt requested) to the respective Parties at the following addresses (or at such other address for a Party as shall be specified
in a notice given in accordance with this Section 7.5):
if
to the Purchaser:
APEX
TECH ACQUISITION INC.
13501 Katy Fwy
Houston, TX 77079
Telephone No.: 840-244-9122
Attn: Florence Ng, Chief Executive Officer
Email: florence@apextech-inc.com
with
copies (which shall not constitute notice) to:
Lewis
Brisbois Bisgaard & Smith LLP
Attn: John P. Yung, Esq.
Daniel B. Eng, Esq.
45 Fremont Street, Suite 3000
San Francisco, CA 94105
Telephone No.: (415) 362-2580
Email: john.yung@lewisbrisbois.com
daniel.eng@lewisbrisbois.com
if
to the Company:
KORAI
FLIX, INC.
c/o Northwest Registered Agent Service, Inc.
8 The Green, Ste B
Dover, DE 19901
with
copies (which shall not constitute notice) to:
DLA
Piper UK LLP
Attn: Yang Ge, Esq.
James
Chang, Esq.
20th Floor, South Tower, Kerry Center
No. 1 Guanghua Road, Chaoyang District
Beijing China 100020
Telephone
No.: 86-10-8520-0616
Email: Yang.Ge@dlapiper.com
James.Chang@dlapiper.com
if
to the Sponsor, to the address for notice set forth on Schedule A hereto.
7.6
Headings. The descriptive headings contained in this Agreement are included for convenience of reference only and shall not affect
in any way the meaning or interpretation of this Agreement.
7.7
Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule
of law, or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so
long as the economic or legal substance of the transactions contemplated hereby or any of the other Transactions is not affected in any
manner materially adverse to any Party. Upon such determination that any term or other provision is invalid, illegal or incapable of
being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties
as closely as possible in a mutually acceptable manner in order that the transactions contemplated by this Agreement be consummated as
originally contemplated to the fullest extent possible.
6
7.8
Entire Agreement; Assignment. This Agreement and the schedules hereto (together with each transaction document in connection with
the Transactions to which the Parties hereto are parties, to the extent referred to herein) constitute the entire agreement among the
Parties with respect to the subject matter hereof and supersede all prior agreements and undertakings, both written and oral, among the
Parties, or any of them, with respect to the subject matter hereof. Except for transfers permitted by Section 2.1, this Agreement
shall not be assigned (whether pursuant to a merger, by operation of law or otherwise) by any Party without the prior express written
consent of the other Parties hereto.
7.9
Certificates. Promptly following the date of this Agreement, the Purchaser shall advise its transfer agent in writing that the
Subject Shares are subject to the restrictions set forth herein and, in connection therewith, provide the transfer agent of the Purchaser,
as applicable, in writing with such information as is reasonable to ensure compliance with such restrictions.
7.10
Parties in Interest. This Agreement shall be binding upon and inure solely to the benefit of each Party, and nothing in this Agreement,
express or implied, is intended to or shall confer upon any other person any right, benefit or remedy of any nature whatsoever under
or by reason of this Agreement.
7.11
Interpretation.
(a)
Unless the context of this Agreement otherwise requires, (i) words of any gender include each other gender, (ii) words using the singular
or plural number also include the plural or singular number, respectively, (iii) the definitions contained in this agreement are applicable
to the other grammatical forms of such terms, (iv) the terms “hereof,” “herein,” “hereby,” “hereto”
and derivative or similar words refer to this entire Agreement, (v) the terms “Section” and “Schedule” refer
to the specified Section or Schedule of or to this Agreement, (vi) the word “including” means “including without limitation,”
(vii) the word “or” shall be disjunctive but not exclusive, (viii) the word “person” means an individual, corporation,
partnership, limited partnership, limited liability company, syndicate, person (including, without limitation, a “person”
as defined in Section 13(d)(3) of the Exchange Act), trust, association or entity or government, political subdivision, agency or instrumentality
of a government, and references to a person are also to its permitted successors and assigns, (ix), an “affiliate” of a specified
person means a person who, directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common
control with, such specified person, (x) references to agreements and other documents shall be deemed to include all subsequent amendments
and other modifications thereto and references to any Law shall include all rules and regulations promulgated thereunder and (xi) references
to any Law shall be construed as including all statutory, legal, and regulatory provisions consolidating, amending or replacing such
Law.
(b)
The language used in this Agreement shall be deemed to be the language chosen by the Parties to express their mutual intent and no rule
of strict construction shall be applied against any Party.
7.12
Governing Law. This Agreement shall be governed by, and construed in accordance with, the Laws of the State of Delaware applicable
to contracts executed in and to be performed in that State. All legal actions and proceedings arising out of or relating to this Agreement
shall be heard and determined exclusively in any federal and state courts located in the City of New York, Borough of Manhattan (the
“Specified Courts”). The Parties hereby (a) irrevocably submit to the exclusive jurisdiction of the aforesaid Specified
Courts for themselves and with respect to their respective properties for the purpose of any Action arising out of or relating to this
Agreement brought by any Party, and (b) agree not to commence any Action relating thereto except in the Specified Courts, other than
Actions in any court of competent jurisdiction to enforce any judgment, decree or award rendered by any such Specified Courts. Each of
the Parties further agrees that notice as provided herein shall constitute sufficient service of process and the Parties further waive
any argument that such service is insufficient. Each of the Parties hereby irrevocably and unconditionally waives, and agrees not to
assert, by way of motion or as a defense, counterclaim or otherwise, in any Action arising out of or relating to this Agreement or the
transactions contemplated hereby any claim (a) that it is not personally subject to the jurisdiction of the Specified Courts for any
reason, (b) that it or its property is exempt or immune from jurisdiction of any such Specified Court or from any legal process commenced
in such Specified Courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment,
execution of judgment or otherwise) and (c) that (i) the Action in any such Specified Court is brought in an inconvenient forum, (ii)
the venue of such Action is improper or (iii) this Agreement, or the subject matter hereof, may not be enforced in or by such Specified
Courts.
7
7.13
Specific Performance. The Parties agree that irreparable damage would occur if any provision of this Agreement were not performed
in accordance with the terms hereof, and, accordingly, that the Parties shall be entitled to an injunction or injunctions to prevent
breaches of this Agreement or to enforce specifically the performance of the terms and provisions hereof in the Specified Courts without
proof of actual damages or otherwise, in addition to any other remedy to which they are entitled at law or in equity as expressly permitted
in this Agreement. Each of the Parties hereby further waives (a) any defense in any action for specific performance that a remedy at
law would be adequate and (b) any requirement under any Law to post security or a bond as a prerequisite to obtaining equitable relief.
7.14
WAIVER OF JURY TRIAL. EACH OF THE PARTIES HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY WITH RESPECT TO ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR
THE TRANSACTIONS CONTEMPLATED HEREBY. EACH OF THE PARTIES (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY
HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER
AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED
HEREBY, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 7.14.
7.15
Counterparts; Electronic Delivery. This Agreement may be executed and delivered (including by facsimile or portable document format
(.pdf) transmission) in one or more counterparts, and by the different Parties hereto in separate counterparts, each of which when executed
shall be deemed to be an original but all of which taken together shall constitute one and the same agreement. Delivery by email to counsel
for the other Parties of a counterpart executed by a Party shall be deemed to meet the requirements of the previous sentence.
7.16
Directors and Officers. Nothing in this Agreement shall be construed to impose any obligation or limitation on votes or actions
taken by any director, officer, employee, agent, designee or other representative of the Sponsor in each case, in his or her capacity
as a director or officer of the Purchaser or any of its Subsidiaries. The Sponsor is executing this Agreement solely in such capacity
as a record or beneficial holder of Purchaser Ordinary Shares and other Purchaser Securities.
[Remainder
of Page Intentionally Left Blank]
8
In
witness whereof, the Parties hereto have caused this Agreement to be executed as of the date first set forth above.
PURCHASER:
APEX
TECH ACQUISITION INC.
By:
Name:
Florence
Ng
Title:
Chief
Executive Officer
[Signature
Page to Sponsor Support Agreement]
In
witness whereof, the Parties hereto have caused this Agreement to be executed as of the date first set forth above.
COMPANY:
KORAI
FLIX, INC.
By:
Name:
[●]
Title:
[●]
In
witness whereof, the Parties hereto have caused this Agreement to be executed as of the date first set forth above.
SPONSOR:
APEX
INNOVATION ACQUISITION CORP.
By:
Name:
Shaoren
Liu
Title:
Director
[Signature
Page to Sponsor Support Agreement]
Schedule
A
Sponsor
Purchaser
Securities (Purchaser Ordinary
Shares
and Purchaser Private Units)
Notice
Address
APEX
INNOVATION ACQUISITION CORP.
EX-10.4
EX-10.4
Filename: ex10-4.htm · Sequence: 6
Exhibit
10.4
FORM
OF AMENDED AND RESTATED REGISTRATION RIGHTS
AGREEMENT
THIS
AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of [__], is made and entered into by and
among APEX Tech Acquisition Inc., a Cayman Islands exempted company (“Purchaser”), Apex Innovation Acquisition Corp.,
a Delaware corporation (the “Sponsor”), and each of the undersigned parties listed on the signature pages hereto under
“Holders” (together with the Sponsor, and any person or entity who hereafter becomes a party to this Agreement pursuant to
Section 5.2 of this Agreement, each, a “Holder” and collectively, the “Holders”). Capitalized terms
used but not otherwise defined herein shall have the respective meanings ascribed to such terms in the Merger Agreement (as defined below).
RECITALS
WHEREAS,
on [ ], 2026, the Purchaser, APEX Tech Merger Sub Inc., a Delaware corporation and a wholly-owned subsidiary of the Purchaser (“Merger
Sub”), Korai Flix, Inc., a Delaware corporation (the “Company”), and certain other parties entered into
the Agreement and Plan of Merger (the “Merger Agreement”), pursuant to which, upon the terms and subject to the conditions
set forth therein, Merger Sub will merge with and into the Company (the “Merger”), with the Company surviving the
Merger as a wholly-owned subsidiary of the Purchaser (the “Surviving Corporation”);
WHEREAS,
prior to the consummation of the Merger, the Purchaser shall effect the Conversion (as defined in the Merger Agreement) so as to re-domicile
as a Delaware corporation, and upon the Effective Time, all of the issued and outstanding capital stock of the Company immediately prior
to the Effective Time shall no longer be issued and outstanding and shall automatically be cancelled, in exchange for the right for each
Company Stockholder to receive (i) its Class A Pro Rata Share of the Class A Merger Consideration Shares, and (ii) its Class B Pro Rata
Share of the Class B Merger Consideration Shares, in each case, upon the terms and subject to the conditions set forth in the Merger
Agreement and in accordance with the provisions of the Delaware General Corporation Law;
WHEREAS,
following the closing of the Merger, as of the Effective Time, the Holders own certain shares of Purchaser Common Stock, and the Sponsor
owns certain shares of Purchaser Common Stock, including shares issued in respect of the Purchaser Ordinary Shares and Purchaser Rights
included in the Purchaser Private Units;
WHEREAS,
in connection with the Merger, the Purchaser, the Sponsor and the Holders desire to enter into this Agreement,
pursuant to which the Purchaser shall grant the Holders certain registration rights with respect to certain securities of the Purchaser,
as set forth herein;
NOW,
THEREFORE, in consideration of the representations, covenants and agreements contained herein, and certain other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby
agree as follows:
ARTICLE
I
DEFINITIONS
1.1. Definitions.
The terms defined in this Article I shall, for all purposes of this Agreement, have the respective meanings set forth below:
“Agreement”
shall have the meaning given in the Preamble.
“Adverse
Disclosure” shall mean any public disclosure of material non-public information, which disclosure, in the good faith judgment
of the Chief Executive Officer or principal financial officer of Purchaser, after consultation with counsel to Purchaser, (i) would be
required to be made in any Registration Statement or Prospectus in order for the applicable Registration Statement or Prospectus not
to contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements contained therein
(in the case of any prospectus and any preliminary prospectus, in the light of the circumstances under which they were made) not misleading,
(ii) would not be required to be made at such time if the Registration Statement were not being filed, and (iii) Purchaser has a bona
fide business purpose for not making such information public.
“Board”
shall mean the Board of Directors of Purchaser.
“Merger”
shall have the meaning set forth in the Merger Agreement.
“Business
Day” means a day other than a Saturday, Sunday or other day on which commercial banks in New York or Governmental Authorities
in the Cayman Islands or the United States are authorized or required by Law to close.
“Commission”
shall mean the United States Securities and Exchange Commission.
“Demand
Registration” shall have the meaning given in subsection 2.1.1.
“Demanding
Holder” shall have the meaning given in subsection 2.1.1.
“Exchange
Act” shall mean the Securities Exchange Act of 1934, as it may be amended from time to time.
“Merger
Effective Time” shall have the meaning set forth in the Merger Agreement.
“Form
S-1” shall mean a Registration Statement on Form S-1 or any comparable successor form or forms thereto.
“Form
S-3” shall mean a Registration Statement on Form S-3 or any comparable successor form or forms thereto.
“Holders”
shall have the meaning given in the Preamble.
2
“Legal
Proceeding” means any judicial, administrative or arbitral actions, suits, hearings, inquiries, investigations or other proceedings
(public or private) commenced, brought, conducted or heard before, or otherwise involving, any federal, national, state, foreign, provincial,
local or other government or any governmental, regulatory, administrative or self-regulatory authority, agency, bureau, board, commission,
court, judicial or arbitral body, department, political subdivision, tribunal or other instrumentality thereof or arbitrator.
“Maximum
Number of Securities” shall have the meaning given in subsection 2.1.4.
“Misstatement”
shall mean an untrue statement of a material fact or an omission to state a material fact required to be stated in a Registration Statement
or Prospectus, or necessary to make the statements in a Registration Statement or Prospectus in the light of the circumstances under
which they were made not misleading.
“Merger
Consideration Shares” shall have the meaning set forth in the Merger Agreement.
“Piggyback
Registration” shall have the meaning given in subsection 2.2.1.
“Pro
Rata” shall have the meaning given in subsection 2.1.4.
“Prospectus”
shall mean the prospectus included in any Registration Statement, as supplemented by any and all prospectus supplements and as amended
by any and all post-effective amendments and including all material incorporated by reference in such prospectus.
“Purchaser”
shall have the meaning given in the Preamble.
“Purchaser
Common Stock” shall have the meaning set forth in the Merger Agreement.
“Registrable
Securities” shall mean collectively, (i) any outstanding shares of Purchaser Common Stock held by a Holder immediately following
the Closing, (ii) any shares of Purchaser Common Stock that may be acquired by Holders upon the exercise, conversion or redemption of
any other security of Purchaser or other right to acquire Purchaser Common Stock held by a Holder immediately following the Closing,
including shares of Purchaser Common Stock issued or issuable in respect of the Purchaser Rights included in the Purchaser Private Units,
and (iii) any other equity security of Purchaser issued or issuable with respect to any securities referenced in clause (i) or (ii) above
by way of a stock dividend or stock split or in connection with a combination of shares, recapitalization, merger, consolidation, spin-off,
reorganization or similar transaction; provided, however, that, as to any particular Registrable Security, such securities shall cease
to be Registrable Securities when: (A) a Registration Statement with respect to the sale of such securities shall have become effective
under the Securities Act and such securities shall have been sold, transferred, disposed of or exchanged in accordance with such Registration
Statement; (B) such securities shall have been otherwise transferred, new certificates for such securities not bearing a legend restricting
further transfer shall have been delivered by Purchaser and subsequent public distribution of such securities shall not require registration
under the Securities Act; (C) such securities shall have ceased to be outstanding; (D) such securities may be sold without registration
pursuant to Rule 144 promulgated under the Securities Act (or any successor rule promulgated thereafter by the Commission) (but with
no volume or other restrictions or limitations); or (E) such securities have been sold to, or through, a broker, dealer or underwriter
in a public distribution or other public securities transaction.
3
“Registration”
shall mean a registration effected by preparing and filing a Registration Statement or similar document in compliance with the requirements
of the Securities Act, and the applicable rules and regulations promulgated thereunder, and such registration statement becoming effective.
“Registration
Expenses” shall mean the out-of-pocket expenses of a Registration, including, without limitation, the following:
(A) all
registration and filing fees (including fees with respect to filings required to be made with the Financial Industry Regulatory Authority,
Inc.) and any securities exchange on which the Purchaser Common Stock is then listed;
(B) fees
and expenses of compliance with securities or blue sky laws (including reasonable fees and disbursements of counsel for the Underwriters
in connection with blue sky qualifications of Registrable Securities);
(C) printing,
messenger, telephone and delivery expenses;
(D) reasonable
fees and disbursements of counsel for Purchaser;
(E) reasonable
fees and disbursements of all independent registered public accountants of Purchaser incurred specifically in connection with such Registration;
and
(F) reasonable
fees and expenses of one (1) legal counsel selected by the majority-in-interest of the Demanding Holders initiating a Demand Registration
to be registered for offer and sale in the applicable Registration.
“Registration
Statement” shall mean any registration statement that covers the Registrable Securities pursuant to the provisions of this
Agreement, including the Prospectus included in such registration statement, amendments (including post-effective amendments) and supplements
to such registration statement, and all exhibits to and all material incorporated by reference in such registration statement.
“Requesting
Holder” shall have the meaning given in subsection 2.1.1.
“Sponsor”
shall mean Apex Innovation Acquisition Corp.
4
“Securities
Act” shall mean the United States Securities Act of 1933, as amended from time to time, and the rules and regulations of the
Commission promulgated thereunder.
“Underwriter”
shall mean a securities dealer who purchases any Registrable Securities as principal in an Underwritten Offering and not as part of such
dealer’s market-making activities.
“Underwritten
Registration” or “Underwritten Offering” shall mean a Registration in which securities of Purchaser are
sold to an Underwriter in a firm commitment underwriting for distribution to the public.
ARTICLE
II
REGISTRATIONS
2.1. Demand
Registration.
2.1.1. Request
for Registration. Subject to the provisions of subsection 2.1.4 and Section 2.5 hereof, at any time and from time to time on or after
the date Purchaser consummates the Merger, the Holders of at least a majority in interest of the then-outstanding number of the Registrable
Securities (the “Demanding Holders”) may make a written demand for Registration under the Securities Act of all or
part of their respective Registrable Securities on Form S-3 (or, if Form S-3 is not available to be used by Purchaser at such time, on
Form S-1 or another appropriate form permitting Registration of the relevant Registrable Securities for resale by such Demanding Holders),
which written demand shall describe the amount and type of securities to be included in such Registration and the intended method(s)
of distribution thereof (such written demand a “Demand Registration”). Purchaser shall, within ten (10) days of Purchaser’s
receipt of the Demand Registration, notify, in writing, all other Holders of Registrable Securities of such demand, and each Holder of
Registrable Securities who thereafter wishes to include all or a portion of such Holder’s Registrable Securities in a Registration
pursuant to a Demand Registration (each such Holder that includes all or a portion of such Holder’s Registrable Securities in such
Registration, a “Requesting Holder”) shall so notify Purchaser, in writing, within ten (10) days after the receipt
such notice. Upon receipt by Purchaser of any such written request, such Requesting Holder(s) shall be entitled to have their Registrable
Securities included in a Registration pursuant to a Demand Registration and Purchaser shall effect, as soon thereafter as practicable
after Purchaser’s receipt of the Demand Registration, the Registration of all Registrable Securities requested by the Demanding
Holders and Requesting Holders pursuant to such Demand Registration. Under no circumstances shall Purchaser be obligated to effect more
than one (1) Registration pursuant to a Demand Registration under this subsection 2.1.1.
2.1.2. Effective
Registration. Notwithstanding the provisions of subsection 2.1.1 above or any other part of this Agreement, a Registration pursuant to
a Demand Registration shall not count as a Registration unless and until (i) the Registration Statement filed with the Commission with
respect to a Registration pursuant to a Demand Registration has been declared effective by the Commission, and (ii) Purchaser has complied
with all of its obligations under this Agreement with respect thereto; provided, further, that if, after such Registration Statement
has been declared effective, an offering of Registrable Securities in a Registration pursuant to a Demand Registration is subsequently
interfered with by any stop order or injunction of the Commission, federal or state court or any other governmental agency the Registration
Statement with respect to such Registration shall be deemed not to have been declared effective, unless and until, (i) such stop order
or injunction is removed, rescinded or otherwise terminated, and (ii) a majority-in-interest of the Demanding Holders initiating such
Demand Registration thereafter affirmatively elect to continue with such Registration and accordingly notify Purchaser in writing, but
in no event later than five (5) days, of such election; and provided, further, that Purchaser shall not be obligated or required to file
another Registration Statement until the Registration Statement that has been previously filed with respect to a Registration pursuant
to a Demand Registration becomes effective or is subsequently terminated.
5
2.1.3. Underwritten
Offering. Subject to the provisions of subsection 2.1.4 and Section 2.5 hereof, if a majority-in-interest of the Demanding Holders so
advise Purchaser as part of their Demand Registration that the offering of the Registrable Securities pursuant to such Demand Registration
shall be in the form of an Underwritten Offering, then the right of such Demanding Holder or Requesting Holder (if any) to include its
Registrable Securities in such Registration shall be conditioned upon such Holder’s participation in such Underwritten Offering
and the inclusion of such Holder’s Registrable Securities in such Underwritten Offering to the extent provided herein. All such
Holders proposing to distribute their Registrable Securities through an Underwritten Offering under this subsection 2.1.3 shall enter
into an underwriting agreement in customary form with the Underwriter(s) selected for such Underwritten Offering by the majority-in-interest
of the Demanding Holders initiating the Demand Registration.
2.1.4. Reduction
of Underwritten Offering. If the managing Underwriter or Underwriters in an Underwritten Registration pursuant to a Demand Registration,
in good faith, advises Purchaser, the Demanding Holders and the Requesting Holders (if any) in writing that the dollar amount or number
of Registrable Securities that the Demanding Holders and the Requesting Holders (if any) desire to sell, taken together with all other
shares of Purchaser Common Stock or other equity securities that Purchaser desires to sell and shares of Purchaser Common Stock, if any,
as to which a Registration has been requested pursuant to separate written contractual piggy-back registration rights held by any other
shareholders who desire to sell, exceeds the maximum dollar amount or maximum number of equity securities that can be sold in the Underwritten
Offering without adversely affecting the proposed offering price, the timing, the distribution method, or the probability of success
of such offering (such maximum dollar amount or maximum number of such securities, as applicable, the “Maximum Number of Securities”),
then Purchaser shall include in such Underwritten Offering, as follows: (i) first, the Registrable Securities of the Demanding Holders
and the Requesting Holders (if any) on a pro rata basis based on the respective number of Registrable Securities that each such Holder
has requested be included in such Underwritten Registration and the aggregate number of Registrable Securities that such Holders have
requested to be included in such Underwritten Registration, which can be sold without exceeding the Maximum Number of Securities (such
proportion is referred to herein as “Pro Rata”); (ii) second, to the extent that the Maximum Number of Securities
has not been reached under the foregoing clause (i), shares of Purchaser Common Stock or other equity securities that Purchaser desires
to sell, which can be sold without exceeding the Maximum Number of Securities; and (iii) third, to the extent that the Maximum Number
of Securities has not been reached under the foregoing clauses (i) and (ii), shares of Purchaser Common Stock or other equity securities
of other persons or entities that Purchaser is obligated to register in a Registration pursuant to separate written contractual arrangements
with such persons and that can be sold without exceeding the Maximum Number of Securities.
6
2.1.5. Demand
Registration Withdrawal. A majority-in-interest of the Demanding Holders initiating a Demand Registration or a majority-in-interest of
the Requesting Holders (if any), pursuant to a Registration under subsection 2.1.1 shall have the right to withdraw from a Registration
pursuant to such Demand Registration for any or no reason whatsoever upon written notification to Purchaser and the Underwriter or Underwriters
(if any) of their intention to withdraw from such Registration prior to the effectiveness of the Registration Statement filed with the
Commission with respect to the Registration of their Registrable Securities pursuant to such Demand Registration. Notwithstanding anything
to the contrary in this Agreement, Purchaser shall be responsible for the Registration Expenses incurred in connection with a Registration
pursuant to a Demand Registration prior to its withdrawal under this subsection 2.1.5.
2.2. Piggyback
Registration.
2.2.1. Piggyback
Rights. If, at any time on or after the date Purchaser consummates the Merger, Purchaser proposes to file a Registration Statement under
the Securities Act with respect to an offering of equity securities, or securities or other obligations exercisable or exchangeable for,
or convertible into equity securities, for its own account or for the account of shareholders of Purchaser (or by Purchaser and by the
shareholders of Purchaser including, without limitation, pursuant to Section 2.1 hereof), other than a Registration Statement (i) filed
in connection with any employee stock option or other benefit plan, (ii) for an exchange offer or offering of securities solely to Purchaser’s
existing shareholders, (iii) for an offering of debt that is convertible into equity securities of Purchaser or (iv) for a dividend reinvestment
plan, then Purchaser shall give written notice of such proposed filing to all of the Holders of Registrable Securities as soon as practicable
but not less than ten (10) days before the anticipated filing date of such Registration Statement, which notice shall (A) describe the
amount and type of securities to be included in such offering, the intended method(s) of distribution, and the name of the proposed managing
Underwriter or Underwriters, if any, in such offering, and (B) offer to all of the Holders of Registrable Securities the opportunity
to register the sale of such number of Registrable Securities as such Holders may request in writing within five (5) days after receipt
of such written notice (such Registration a “Piggyback Registration”). Purchaser shall, in good faith, cause such
Registrable Securities to be included in such Piggyback Registration and shall use its commercially reasonable efforts to cause the managing
Underwriter or Underwriters of a proposed Underwritten Offering to permit the Registrable Securities requested by the Holders pursuant
to this subsection 2.2.1 to be included in a Piggyback Registration on the same terms and conditions as any similar securities of Purchaser
included in such Registration and to permit the sale or other disposition of such Registrable Securities in accordance with the intended
method(s) of distribution thereof. All such Holders proposing to distribute their Registrable Securities through an Underwritten Offering
under this subsection 2.2.1 shall enter into an underwriting agreement in customary form with the Underwriter(s) selected for such Underwritten
Offering by Purchaser.
7
2.2.2. Reduction
of Piggyback Registration. If the managing Underwriter or Underwriters in an Underwritten Registration that is to be a Piggyback Registration,
in good faith, advises Purchaser and the Holders of Registrable Securities participating in the Piggyback Registration in writing that
the dollar amount or number of shares of Purchaser Common Stock that Purchaser desires to sell, taken together with (i) shares of Purchaser
Common Stock, if any, as to which Registration has been demanded pursuant to separate written contractual arrangements with persons or
entities other than the Holders of Registrable Securities hereunder, (ii) the Registrable Securities as to which registration has been
requested pursuant to Section 2.2 hereof, and (iii) shares of Purchaser Common Stock, if any, as to which Registration has been requested
pursuant to separate written contractual piggy-back registration rights of other shareholders of Purchaser, exceeds the Maximum Number
of Securities, then:
(a) If
the Registration is undertaken for Purchaser’s account, Purchaser shall include in any such Registration (A) first, shares of Purchaser
Common Stock or other equity securities that Purchaser desires to sell, which can be sold without exceeding the Maximum Number of Securities;
(B) second, to the extent that the Maximum Number of Securities has not been reached under the foregoing clause (A), the Registrable
Securities on a Pro Rata basis, which can be sold without exceeding the Maximum Number of Securities; and (C) third, to the extent that
the Maximum Number of Securities has not been reached under the foregoing clauses (A) and (B), shares of Purchaser Common Stock, if any,
as to which Registration has been requested pursuant to written contractual piggy-back registration rights of other shareholders of Purchaser,
which can be sold without exceeding the Maximum Number of Securities;
(b) If
the Registration is pursuant to a request by persons or entities other than the Holders of Registrable Securities, then Purchaser shall
include in any such Registration (A) first, shares of Purchaser Common Stock or other equity securities, if any, of such requesting persons
or entities, other than the Holders of Registrable Securities, which can be sold without exceeding the Maximum Number of Securities;
(B) second, to the extent that the Maximum Number of Securities has not been reached under the foregoing clause (A), the Registrable
Securities of Holders exercising their rights to register their Registrable Securities pursuant to subsection 2.2.1 on a Pro Rata basis,
which can be sold without exceeding the Maximum Number of Securities; (C) third, to the extent that the Maximum Number of Securities
has not been reached under the foregoing clauses (A) and (B), shares of Purchaser Common Stock or other equity securities that Purchaser
desires to sell, which can be sold without exceeding the Maximum Number of Securities; and (D) fourth, to the extent that the Maximum
Number of Securities has not been reached under the foregoing clauses (A), (B) and (C), shares of Purchaser Common Stock or other equity
securities for the account of other persons or entities that Purchaser is obligated to register pursuant to separate written contractual
arrangements with such persons or entities, which can be sold without exceeding the Maximum Number of Securities.
8
2.2.3. Piggyback
Registration Withdrawal. Any Holder of Registrable Securities shall have the right to withdraw from a Piggyback Registration for any
or no reason whatsoever upon written notification to Purchaser and the Underwriter or Underwriters (if any) of his, her or its intention
to withdraw from such Piggyback Registration prior to the effectiveness of the Registration Statement filed with the Commission with
respect to such Piggyback Registration. Purchaser (whether on its own good faith determination or as the result of a request for withdrawal
by persons pursuant to separate written contractual obligations) may withdraw a Registration Statement filed with the Commission in connection
with a Piggyback Registration at any time prior to the effectiveness of such Registration Statement. Notwithstanding anything to the
contrary in this Agreement, Purchaser shall be responsible for the Registration Expenses incurred in connection with the Piggyback Registration
prior to its withdrawal under this subsection 2.2.3.
2.3. Unlimited
Piggyback Registration Rights. For purposes of clarity, any Registration effected pursuant to Section 2.2 hereof shall not be counted
as a Registration pursuant to a Demand Registration effected under Section 2.1 hereof.
2.4. Registrations
on Form S-3. The Holders of Registrable Securities may at any time, and from time to time, request in writing that Purchaser, pursuant
to Rule 415 under the Securities Act (or any successor rule promulgated thereafter by the Commission), register the resale of any or
all of their Registrable Securities on Form S-3; provided, however, that Purchaser shall not be obligated to effect such request through
an Underwritten Offering. Within five (5) days of Purchaser’s receipt of a written request from a Holder or Holders of Registrable
Securities for a Registration on Form S-3, Purchaser shall promptly give written notice of the proposed Registration on Form S-3 to all
other Holders of Registrable Securities, and each Holder of Registrable Securities who thereafter wishes to include all or a portion
of such Holder’s Registrable Securities in such Registration on Form S-3 shall so notify Purchaser, in writing, within ten (10)
days after the receipt by the Holder of the notice from Purchaser. As soon as practicable thereafter, but not more than thirty (30) days
after Purchaser’s initial receipt of such written request for a Registration on Form S-3, Purchaser shall prepare and file or cause
to be prepared and filed with the Commission a Registration Statement relating to all or such portion of such Holder’s Registrable
Securities as are specified in such written request, together with all or such portion of Registrable Securities of any other Holder
or Holders joining in such request as are specified in the written notification given by such Holder or Holders; provided, however, that
Purchaser shall not be obligated to effect any such Registration pursuant to this Section 2.4 hereof if (i) a Form S-3 is not available
for such offering; or (ii) the Holders of Registrable Securities, together with the Holders of any other equity securities of Purchaser
entitled to inclusion in such Registration, propose to sell the Registrable Securities and such other equity securities (if any) at any
aggregate price to the public of less than $10,000,000.
2.5. Restrictions
on Registration Rights. If (A) during the period starting with the date sixty (60) days prior to Purchaser’s good faith estimate
of the date of the filing of, and ending on a date one hundred and twenty (120) days after the effective date of, a Purchaser initiated
Registration and provided that Purchaser has delivered written notice to the Holders prior to receipt of a Demand Registration pursuant
to subsection 2.1.1 and it continues to actively employ, in good faith, all reasonable efforts to cause the applicable Registration Statement
to become effective; (B) the Holders have requested an Underwritten Registration and Purchaser and the Holders are unable to obtain the
commitment of underwriters to firmly underwrite the offer; or (C) in the good faith judgment of the Board such Registration would be
materially detrimental to Purchaser and the Board concludes as a result that it is essential to defer the filing of such Registration
Statement at such time, then in each case Purchaser shall furnish to such Holders a certificate signed by the Chairman of the Board stating
that in the good faith judgment of the Board it would be materially detrimental to Purchaser for such Registration Statement to be filed
in the near future and that it is therefore essential to defer the filing of such Registration Statement. In such event, Purchaser shall
have the right to defer such filing for a period of not more than sixty (60) days; provided, however, that Purchaser shall not defer
its obligation in this manner more than once in any 12-month period.
9
ARTICLE
III
COMPANY PROCEDURES
3.1. General
Procedures. If at any time on or after the date Purchaser consummates the Merger, Purchaser is required to effect the Registration of
Registrable Securities, Purchaser shall use its commercially reasonable efforts to effect such Registration to permit the sale of such
Registrable Securities in accordance with the intended plan of distribution thereof, and pursuant thereto Purchaser shall, as expeditiously
as possible:
3.1.1. prepare
and file with the Commission as soon as practicable a Registration Statement with respect to such Registrable Securities and use its
commercially reasonable efforts to cause such Registration Statement to become effective and remain effective until all Registrable Securities
covered by such Registration Statement have been sold;
3.1.2. prepare
and file with the Commission such amendments and post-effective amendments to the Registration Statement, and such supplements to the
Prospectus, as may be reasonably requested by the majority-in-interest of the Holders with Registrable Securities registered on such
Registration Statement or any Underwriter of Registrable Securities or as may be required by the rules, regulations or instructions applicable
to the registration form used by Purchaser or by the Securities Act or rules and regulations thereunder to keep the Registration Statement
effective until all Registrable Securities covered by such Registration Statement are sold in accordance with the intended plan of distribution
set forth in such Registration Statement or supplement to the Prospectus;
3.1.3. prior
to filing a Registration Statement or Prospectus, or any amendment or supplement thereto, furnish without charge to the Underwriters,
if any, and the Holders of Registrable Securities included in such Registration, and such Holders’ legal counsel, copies of such
Registration Statement as proposed to be filed, each amendment and supplement to such Registration Statement (in each case including
all exhibits thereto and documents incorporated by reference therein), the Prospectus included in such Registration Statement (including
each preliminary Prospectus), and such other documents as the Underwriters and the Holders of Registrable Securities included in such
Registration or the legal counsel for any such Holders may request in order to facilitate the disposition of the Registrable Securities
owned by such Holders;
10
3.1.4. prior
to any public offering of Registrable Securities, use its commercially reasonable efforts to (i) register or qualify the Registrable
Securities covered by the Registration Statement under such securities or “blue sky” laws of such jurisdictions in the United
States as the Holders of Registrable Securities included in such Registration Statement (in light of their intended plan of distribution)
may request and (ii) take such action necessary to cause such Registrable Securities covered by the Registration Statement to be registered
with or approved by such other governmental authorities as may be necessary by virtue of the business and operations of Purchaser and
do any and all other acts and things that may be necessary or advisable to enable the Holders of Registrable Securities included in such
Registration Statement to consummate the disposition of such Registrable Securities in such jurisdictions; provided, however, that Purchaser
shall not be required to qualify generally to do business in any jurisdiction where it would not otherwise be required to qualify or
take any action to which it would be subject to general service of process or taxation in any such jurisdiction where it is not then
otherwise so subject;
3.1.5. cause
all such Registrable Securities to be listed on each securities exchange or automated quotation system on which similar securities issued
by Purchaser are then listed;
3.1.6. provide
a transfer agent, warrant agent or right agent, as applicable, and registrar for all such Registrable Securities no later than the effective
date of such Registration Statement;
3.1.7. advise
each seller of such Registrable Securities, promptly after it shall receive notice or obtain knowledge thereof, of the issuance of any
stop order by the Commission suspending the effectiveness of such Registration Statement or the initiation or threatening of any proceeding
for such purpose and promptly use its commercially reasonable efforts to prevent the issuance of any stop order or to obtain its withdrawal
if such stop order should be issued;
3.1.8. at
least five (5) days prior to the filing of any Registration Statement or Prospectus or any amendment or supplement to such Registration
Statement or Prospectus or any document that is to be incorporated by reference into such Registration Statement or Prospectus, furnish
a copy thereof to each seller of such Registrable Securities or its counsel;
3.1.9. notify
the Holders at any time when a Prospectus relating to such Registration Statement is required to be delivered under the Securities Act,
of the happening of any event as a result of which the Prospectus included in such Registration Statement, as then in effect, includes
a Misstatement, and then to correct such Misstatement as set forth in Section 3.4 hereof;
3.1.10. permit
a representative of the Holders (such representative to be selected by a majority of the participating Holders), the Underwriters, if
any, and any attorney or accountant retained by such Holders, or Underwriter to participate, at each such person’s own expense,
in the preparation of the Registration Statement, and cause Purchaser’s officers, directors and employees to supply all information
reasonably requested by any such representative, Underwriter, attorney or accountant in connection with the Registration; provided, however,
that such representative or Underwriters enter into a confidentiality agreement, in form and substance reasonably satisfactory to Purchaser,
prior to the release or disclosure of any such information and provided further, Purchaser may not include the name of any Holder or
Underwriter or any information regarding any Holder or Underwriter in any Registration Statement or Prospectus, any amendment or supplement
to such Registration Statement or Prospectus, any document that is to be incorporated by reference into such Registration Statement or
Prospectus, or any response to any comment letter, without the prior written consent of such Holder or Underwriter and providing each
such Holder or Underwriter a reasonable amount of time to review and comment on such applicable document, which comments Purchaser shall
include unless contrary to applicable law;
11
3.1.11. obtain
a “cold comfort” letter from Purchaser’s independent registered public accountants in the event of an Underwritten
Registration, in customary form and covering such matters of the type customarily covered by “cold comfort” letters as the
managing Underwriter may reasonably request, and reasonably satisfactory to a majority-in-interest of the participating Holders;
3.1.12. on
the date the Registrable Securities are delivered for sale pursuant to such Registration, obtain an opinion, dated such date, of counsel
representing Purchaser for the purposes of such Registration, addressed to the Holders, the placement agent or sales agent, if any, and
the Underwriters, if any, covering such legal matters with respect to the Registration in respect of which such opinion is being given
as the Holders, placement agent, sales agent, or Underwriter may reasonably request and as are customarily included in such opinions
and negative assurance letters, and reasonably satisfactory to a majority in interest of the participating Holders;
3.1.13. in
the event of any Underwritten Offering, enter into and perform its obligations under an underwriting agreement, in usual and customary
form, with the managing Underwriter of such offering;
3.1.14. make
available to its security holders, as soon as reasonably practicable, an earnings statement covering the period of at least twelve (12)
months beginning with the first day of Purchaser’s first full calendar quarter after the effective date of the Registration Statement
which satisfies the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder (or any successor rule promulgated thereafter
by the Commission);
3.1.15. if
the Registration involves the Registration of Registrable Securities involving gross proceeds in excess of $50,000,000, use its reasonable
efforts to make available senior executives of Purchaser to participate in customary “road show” presentations that may be
reasonably requested by the Underwriter in any Underwritten Offering; and
3.1.16. otherwise,
in good faith, cooperate reasonably with, and take such customary actions as may reasonably be requested by the Holders, in connection
with such Registration.
3.2. Registration
Expenses. The Registration Expenses of all Registrations shall be borne by Purchaser. It is acknowledged by the Holders that the Holders
shall bear all incremental selling expenses relating to the sale of Registrable Securities, such as Underwriters’ commissions and
discounts, brokerage fees, Underwriter marketing costs and, other than as set forth in the definition of “Registration Expenses,”
all reasonable fees and expenses of any legal counsel representing the Holders.
12
3.3. Requirements
for Participation in Underwritten Offerings. No person may participate in any Underwritten Offering for equity securities of Purchaser
pursuant to a Registration initiated by Purchaser hereunder unless such person (i) agrees to sell such person’s securities on the
basis provided in any underwriting arrangements approved by Purchaser and (ii) completes and executes all customary questionnaires, powers
of attorney, indemnities, lock-up agreements, underwriting agreements and other customary documents as may be reasonably required under
the terms of such underwriting arrangements.
3.4. Suspension
of Sales; Adverse Disclosure. Upon receipt of written notice from Purchaser that a Registration Statement or Prospectus contains a Misstatement,
each of the Holders shall forthwith discontinue disposition of Registrable Securities until he, she or it has received copies of a supplemented
or amended Prospectus correcting the Misstatement (it being understood that Purchaser hereby covenants to prepare and file such supplement
or amendment as soon as practicable after the time of such notice), or until he, she or it is advised in writing by Purchaser that the
use of the Prospectus may be resumed. If the filing, initial effectiveness or continued use of a Registration Statement in respect of
any Registration at any time would (i) require Purchaser to make an Adverse Disclosure, (ii) require the inclusion in such Registration
Statement of financial statements that are unavailable to Purchaser for reasons beyond Purchaser’s control or (iii) in good faith
judgment of the Board, be seriously detrimental to Purchaser, and the majority of the Board concludes as a result that it is essential
to defer such filing, initial effectiveness or continued use at such time, Purchaser may, upon giving prompt written notice of such action
to the Holders (which notice shall specify the nature of the event giving rise to such delay or suspension), delay the filing or initial
effectiveness of, or suspend use of, such Registration Statement for the shortest period of time determined in good faith by Purchaser
to be necessary for such purpose, provided that the filing of such Registration Statement shall not be delayed for more than ninety (90)
days in any 12-month period. In the event Purchaser exercises its rights under the preceding sentence, the Holders agree to suspend,
immediately upon their receipt of the notice referred to above, their use of the Prospectus relating to any Registration in connection
with any sale or offer to sell Registrable Securities. Purchaser shall immediately notify the Holders of the expiration of any period
during which it exercised its rights under this Section 3.4.
3.5. Reporting
Obligations. As long as any Holder shall own Registrable Securities, Purchaser, at all times while it shall be a reporting company under
the Exchange Act, covenants to file timely (or obtain extensions in respect thereof and file within the applicable grace period) all
reports required to be filed by Purchaser after the date hereof pursuant to Sections 13(a) or 15(d) of the Exchange Act and to promptly
furnish the Holders with true and complete copies of all such filings. Purchaser further covenants that it shall take such further action
as any Holder may reasonably request, all to the extent required from time to time to enable such Holder to sell shares of Purchaser
Common Stock held by such Holder without registration under the Securities Act within the limitation of the exemptions provided by Rule
144 promulgated under the Securities Act (or any successor rule promulgated thereafter by the Commission), including providing any legal
opinions. Upon the request of any Holder, Purchaser shall deliver to such Holder a written certification of a duly authorized officer
as to whether it has complied with such requirements.
13
ARTICLE
IV
INDEMNIFICATION AND CONTRIBUTION
4.1. Indemnification.
4.1.1. Purchaser
agrees to indemnify, to the extent permitted by law, each Holder of Registrable Securities, its officers and directors and each person
who controls such Holder (within the meaning of the Securities Act) against all losses, claims, damages, liabilities and expenses (including
reasonable attorneys’ fees) caused by any untrue or alleged untrue statement of material fact contained in any Registration Statement,
Prospectus or preliminary Prospectus or any amendment thereof or supplement thereto or any omission or alleged omission of a material
fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as the same are (i) caused
by or contained in any information furnished in writing to Purchaser by such Holder expressly for use therein, or (ii) caused by sale
of Registrable Securities by such Holder during a period of suspension notified by the Purchaser pursuant to Section 3.4. Purchaser shall
indemnify the Underwriters, their officers and directors and each person who controls such Underwriters (within the meaning of the Securities
Act) to the same extent as provided in the foregoing with respect to the indemnification of the Holder.
4.1.2. In
connection with any Registration Statement in which a Holder of Registrable Securities is participating, such Holder shall furnish to
Purchaser in writing such information and affidavits as Purchaser reasonably requests for use in connection with any such Registration
Statement or Prospectus and, to the extent permitted by law, shall indemnify Purchaser, its directors and officers and agents and each
person who controls Purchaser (within the meaning of the Securities Act) against any losses, claims, damages, liabilities and expenses
(including without limitation reasonable attorneys’ fees) resulting from any untrue statement of material fact contained in the
Registration Statement, Prospectus or preliminary Prospectus or any amendment thereof or supplement thereto or any omission of a material
fact required to be stated therein or necessary to make the statements therein not misleading, but only to the extent that such untrue
statement or omission is contained in any information or affidavit so furnished in writing by such Holder expressly for use therein.
The Holders of Registrable Securities shall indemnify the Underwriters, their officers, directors and each person who controls such Underwriters
(within the meaning of the Securities Act) to the same extent as provided in the foregoing with respect to indemnification of Purchaser.
For the avoidance of doubt, the obligation to indemnify under this Section 4.1.2 shall be several, not joint and several, among the Holders
of Registrable Securities, and the total indemnification liability of a Holder under this Section 4.1.2 shall be in proportion to and
limited to the net proceeds received by such Holder from the sale of Registrable Securities pursuant to such Registration Statement.
14
4.1.3. Any
person entitled to indemnification herein shall (i) give prompt written notice to the indemnifying party of any claim with respect to
which it seeks indemnification (provided that the failure to give prompt notice shall not impair any person’s right to indemnification
hereunder to the extent such failure has not materially prejudiced the indemnifying party) and (ii) unless in such indemnified party’s
reasonable judgment a conflict of interest between such indemnified and indemnifying parties may exist with respect to such claim, permit
such indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the indemnified party. If such defense
is assumed, the indemnifying party shall not be subject to any liability for any settlement made by the indemnified party without its
consent (but such consent shall not be unreasonably withheld). An indemnifying party who is not entitled to, or elects not to, assume
the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such
indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party a conflict of interest may
exist between such indemnified party and any other of such indemnified parties with respect to such claim. No indemnifying party shall,
without the consent of the indemnified party, consent to the entry of any judgment or enter into any settlement which cannot be settled
in all respects by the payment of money (and such money is so paid by the indemnifying party pursuant to the terms of such settlement)
or which settlement does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party
of a release from all liability in respect to such claim or litigation.
4.1.4. The
indemnification provided for under this Agreement shall remain in full force and effect regardless of any investigation made by or on
behalf of the indemnified party or any officer, director or controlling person of such indemnified party and shall survive the transfer
of securities.
4.1.5. If
the indemnification provided under Section 4.1 hereof from the indemnifying party is unavailable or insufficient to hold harmless an
indemnified party in respect of any losses, claims, damages, liabilities and expenses referred to herein, then the indemnifying party,
in lieu of indemnifying the indemnified party, shall contribute to the amount paid or payable by the indemnified party as a result of
such losses, claims, damages, liabilities and expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying
party and the indemnified party, as well as any other relevant equitable considerations. The relative fault of the indemnifying party
and indemnified party shall be determined by reference to, among other things, whether any action in question, including any untrue or
alleged untrue statement of a material fact or omission or alleged omission to state a material fact, was made by, or relates to information
supplied by, such indemnifying party or indemnified party, and the indemnifying party’s and indemnified party’s relative
intent, knowledge, access to information and opportunity to correct or prevent such action; provided, however, that the liability of
any Holder under this subsection 4.1.5 shall be limited to the amount of the net proceeds received by such Holder in such offering giving
rise to such liability. The amount paid or payable by a party as a result of the losses or other liabilities referred to above shall
be deemed to include, subject to the limitations set forth in subsections 4.1.1, 4.1.2 and 4.1.3 above, any legal or other fees, charges
or expenses reasonably incurred by such party in connection with any investigation or proceeding. The parties hereto agree that it would
not be just and equitable if contribution pursuant to this subsection 4.1.5 were determined by pro rata allocation or by any other method
of allocation, which does not take account of the equitable considerations referred to in this subsection 4.1.5. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution pursuant to
this subsection 4.1.5 from any person who was not guilty of such fraudulent misrepresentation.
15
ARTICLE
V
MISCELLANEOUS
5.1. Notices.
All general notices, demands or other communications required or permitted to be given or made hereunder shall be in writing and delivered
personally or sent by courier or sent by registered post or sent by electronic mail to the intended recipient thereof at its address
or at its email address set out below (or to such other address or email address as a party may from time to time notify the other parties).
Any such notice, demand or communication shall be deemed to have been duly served (a) if given personally or sent by courier, upon delivery
during normal business hours at the location of delivery or, if later, then on the next Business Day after the day of delivery; (b) if
sent by electronic mail during normal business hours at the location of delivery, immediately, or, if later, then on the next Business
Day after the day of delivery; (c) the third Business Day following the day sent by reputable international overnight courier (with written
confirmation of receipt); and (d) if sent by registered post, five (5) days after posting. The initial addresses and email addresses
of the parties for the purpose of this Agreement are:
if
to Purchaser:
c/o
APEX TECH ACQUISITION INC.
13501
Katy Fwy
Houston,
TX 77079
840-244-9122
Attn:
Florence Ng, Chief Executive Officer]
if
to a Holder, to the address set forth on such Holder’s signature page hereto, or to such other address as any party may have furnished
to the others in writing in accordance herewith.
5.2. Assignment;
No Third Party Beneficiaries.
5.2.1. This
Agreement and the rights, duties and obligations of Purchaser hereunder may not be assigned or delegated by Purchaser in whole or in
part.
5.2.2. This
Agreement and the provisions hereof shall be binding upon and shall inure to the benefit of each of the parties and its successors and
the permitted assigns of the Holders, which shall include Permitted Transferees (as defined in the Lock-Up Agreement dated concurrent
as to the date of this Agreement), as applicable.
5.2.3. This
Agreement shall not confer any rights or benefits on any persons that are not parties hereto, other than as expressly set forth in this
Agreement and Section 5.2 hereof.
16
5.2.4. No
assignment by any party hereto of such party’s rights, duties and obligations hereunder shall be binding upon or obligate Purchaser
unless and until Purchaser shall have received (i) written notice of such assignment as provided in Section 5.1 hereof and (ii) the written
agreement of the assignee, in a form reasonably satisfactory to Purchaser, to be bound by the terms and provisions of this Agreement
(which may be accomplished by an addendum or certificate of joinder to this Agreement). Any transfer or assignment made other than as
provided in this Section 5.2 shall be null and void.
5.3. Counterparts.
This Agreement may be executed in multiple counterparts (including facsimile or PDF counterparts), each of which shall be deemed an original,
and all of which together shall constitute the same instrument, but only one of which need be produced.
5.4. Governing
Law. This Agreement, and all claims or causes of action based upon, arising out of, or related to this Agreement or the transactions
contemplated hereby, shall be governed by, and construed in accordance with, the laws of the State of New York, without giving effect
to principles or rules of conflict of laws to the extent such principles or rules would require or permit the application of laws of
another jurisdiction.
5.5. Jurisdiction;
Waiver of Jury Trial. Each of the parties hereto irrevocably and unconditionally submits to the exclusive jurisdiction of the state and
federal courts located in New York, New York (or any appellate courts thereof), for the purposes of any Legal Proceeding (a) arising
under this Agreement or the transactions contemplated hereby or (b) in any way connected with or related or incidental to the dealings
of the parties hereto in respect of this Agreement or the transactions contemplated hereby or any of the transactions contemplated hereby
or thereby, and irrevocably and unconditionally waives any objection to the laying of venue of any such Legal Proceeding in any such
court, and further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such Legal Proceeding
has been brought in an inconvenient forum. Each party hereby irrevocably and unconditionally waives, and agrees not to assert, by way
of motion or as a defense, counterclaim or otherwise, in any Legal Proceeding (i) arising under this Agreement or the transactions contemplated
hereby or (ii) in any way connected with or related or incidental to the dealings of the parties in respect of this Agreement or the
transactions contemplated hereby or any of the transactions contemplated hereby or thereby, (A) any claim that it is not personally subject
to the jurisdiction of the courts as described in this Section 5.5 for any reason, (B) that it or its property is exempt or immune from
the jurisdiction of any such court or from any Legal Proceeding commenced in such courts (whether through service of notice, attachment
prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise) and (C) that (x) the Legal Proceeding
in any such court is brought in an inconvenient forum, (y) the venue of such Legal Proceeding is improper or (z) this Agreement, or the
subject matter hereof, may not be enforced in or by such courts. Each party hereto agrees that service of any process, summons, notice
or document by registered mail to such party’s respective address set forth in Section 5.1 shall be effective service of process
for any such Legal Proceeding.
17
EACH
OF THE PARTIES TO THIS AGREEMENT HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND,
ACTION OR CAUSE OF ACTION (A) ARISING UNDER THIS AGREEMENT OR (B) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS
OF THE PARTIES HERETO IN RESPECT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS RELATED HERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER
ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY OR OTHERWISE. EACH OF THE PARTIES TO THIS AGREEMENT HEREBY AGREES AND CONSENTS THAT ANY
SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION WILL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT THE PARTIES TO THIS AGREEMENT MAY
FILE A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO
TRIAL BY JURY.
5.6. Amendments
and Modifications. Upon the written consent of Purchaser and the Holders of at least a majority in interest of the Registrable Securities
at the time in question, compliance with any of the provisions, covenants and conditions set forth in this Agreement may be waived, or
any of such provisions, covenants or conditions may be amended or modified; provided, however, that notwithstanding the foregoing, any
amendment hereto or waiver hereof that adversely affects one Holder, solely in his, her or its capacity as a holder of the shares of
capital stock of Purchaser, in a manner that is materially different from the other Holders (in such capacity) shall require the consent
of the Holder so affected. No course of dealing between any Holder or Purchaser and any other party hereto or any failure or delay on
the part of a Holder or Purchaser in exercising any rights or remedies under this Agreement shall operate as a waiver of any rights or
remedies of any Holder or Purchaser. No single or partial exercise of any rights or remedies under this Agreement by a party shall operate
as a waiver or preclude the exercise of any other rights or remedies hereunder or thereunder by such party.
5.7. Other
Registration Rights. Purchaser represents and warrants that except as disclosed in the Purchaser’s IPO prospectus dated February
25, 2026, no person, other than a Holder of Registrable Securities, has any right to require Purchaser to register any securities of
Purchaser for sale or to include such securities of Purchaser in any Registration filed by Purchaser for the sale of securities for its
own account or for the account of any other person. Further, Purchaser represents and warrants that this Agreement supersedes any other
registration rights agreement or agreement with similar terms and conditions and in the event of a conflict between any such agreement
or agreements and this Agreement, the terms of this Agreement shall prevail.
5.8. Term.
This Agreement shall terminate upon the earlier of (i) the fifth anniversary of the date of this Agreement or (ii) the date as of which
(A) all of the Registrable Securities have been sold pursuant to a Registration Statement (but in no event prior to the applicable period
referred to in Section 4(a)(3) of the Securities Act and Rule 174 thereunder (or any successor rule promulgated thereafter by the Commission))
or (B) the Holders of all Registrable Securities are permitted to sell the Registrable Securities under Rule 144 (or any similar provision)
under the Securities Act without limitation on the amount of securities sold or the manner of sale and without compliance with the current
public reporting requirements set forth under Rule 144(i)(2). The provisions of Section 3.5 and ARTICLE IV shall survive any termination.
5.9. Termination
of Prior Agreement. Each Holder that is also a party to the registration rights agreement entered into by and among such Holder, the
Purchaser and certain other parties thereto dated February 25, 2026 (the “Prior Agreement”) hereby consents that upon
such Holder’s execution and delivery of this Agreement, the Prior Agreement shall be automatically terminated without further force
and effect with respect to such Holder.
[SIGNATURE
PAGES FOLLOW]
18
IN
WITNESS WHEREOF, the undersigned have caused this Agreement to be executed as of the date first written above.
PURCHASER:
APEX Tech Acquisition Inc.
By:
Name:
Florence Ng
Title:
Chief Executive Officer
[Signature Page to the
Registration Rights Agreement]
HOLDERS:
APEX INNOVATION ACQUISITION CORP.
By:
Name:
Shaoren
Liu
Title:
Director
[Signature
Page to the Registration Rights Agreement]
EX-99.1
EX-99.1
Filename: ex99-1.htm · Sequence: 7
Exhibit
99.1
Korai
Flix Inc. and APEX Tech Acquisition Inc. Agree to Merge and Create a Publicly Listed, Interactive Online Entertainment Platform
Seoul,
South Korea, and Houston, Texas, October 21, 2026 — Korai Flix Inc. (“Korai”), an interactive online entertainment
platform, and APEX Tech Acquisition Inc. (“APEX”) (NYSE: TRAD), a blank check company organized to acquire or merge with
one or more businesses, today announced that on October 20, 2026, they entered into a definitive agreement and plan of merger
(the “Merger Agreement”). Upon closing of the transaction contemplated by the Merger Agreement (the “Proposed Transaction”),
the combined company will be renamed “Krflix Group Inc.” (the “Combined Company”) and its Class A common stock
is expected to be listed on the New York Stock Exchange (the “NYSE”), subject to the satisfaction of the listing requirements.
The Proposed Transaction is expected to close in the first quarter of 2027, subject to approval by shareholders of APEX and Korai, regulatory
approval and the satisfaction or waiver of certain other customary closing conditions.
Korai
Background
Korai
launched its interactive online entertainment platform in June 2024. Purpose-built and continuously enhanced by artificial intelligence
(“AI”) to meet the evolving entertainment needs of users worldwide, Korai’s platform offers AI-powered interactive
content experiences, including AI short dramas and AI companion avatars, and features a suite of AI-powered content creation tools to
create such content in various visual styles. As of June 30, 2026, Korai had approximately 26.0 million registered users from 15 countries
or regions in Asia, namely India, Indonesia, Bangladesh, Japan, the Philippines, Vietnam, South Korea, Thailand, Malaysia, Myanmar, Singapore,
Laos, Cambodia, Hong Kong, and Taiwan.
Key
Transaction Terms
Under
the terms of the Merger Agreement, upon the closing of the Proposed Transaction, a wholly-owned subsidiary of APEX will merge with and
into Korai, with Korai continuing as the surviving corporation and a wholly-owned subsidiary of APEX (the “Merger”). The
Merger Agreement also provides that prior to the effective time of the Merger, APEX shall continue out of the Cayman Islands and into
the State of Delaware so as to re-domicile as and become a Delaware corporation, and shall change its name to “Krflix Group Inc.”
or such other name as parties may agree.
In
connection with the Proposed Transaction, (i) APEX shareholders will receive the same number of shares of Class A common stock of the
Combined Company, and (ii) all issued and outstanding shares of Korai’s Class A common stock and Class B common stock will be converted
into the right to receive the merger consideration in Class A common stock (“Class A Common Stock”) and Class B common stock
(“Class B Common Stock”) of the Combined Company, respectively, with each Class A Common Stock carrying one vote per share
and each Class B Common Stock carrying twenty (20) votes per share.
The
Proposed Transaction values Korai at $3.5 billion on a pre-money equity basis and contains no minimum cash condition.
The
boards of directors of Korai and APEX have unanimously approved the Proposed Transaction. The closing of the Proposed Transaction is
subject to the approval by shareholders of APEX and Korai, regulatory approval and the satisfaction or waiver of certain other customary
closing conditions. No assurance can be given that the Proposed Transaction will be completed on the terms or timeframe currently contemplated,
or at all.
A
Current Report on Form 8-K, to be filed by APEX with the Securities and Exchange Commission (the “SEC”), will provide additional
information about the Proposed Transaction, including a copy of the Merger Agreement, and will be available on the SEC’s website
at www.sec.gov. In addition, APEX intends to file a registration statement on Form S-4 with the SEC, including a proxy statement/prospectus,
and will file other documents regarding the proposed transaction with the SEC. This press release is not intended to be, and is not,
a substitute for the proxy statement/prospectus or other documents that APEX has filed or that APEX may file with the SEC in connection
with the Proposed Transaction.
About
Korai Flix Inc. (“Korai”)
Headquartered
in South Korea, Korai is an interactive online entertainment platform offering a full spectrum of AI-powered interactive content experiences,
including AI short dramas and AI companion avatars. Through its platform, Korai provides personalized, immersive and interactive entertainment
experience to a growing user base across Asia.
About
APEX Tech Acquisition Inc.
APEX
Tech Acquisition Inc. is a blank check company organized for the purpose of effecting a merger, share exchange, asset acquisition, share
purchase, recapitalization, reorganization, or other similar business combination with one or more businesses or entities. The company
is sponsored by APEX Innovation Acquisition Corp. and is led by Shaoren Liu, Director.
Forward-Looking
Statements
This
press release contains forward-looking statements for purposes of the “safe harbor” provisions under the United States Private
Securities Litigation Reform Act of 1995. Terms such as “anticipate,” “believe,” “continue,” “could,”
“estimate,” “expect,” “intend,” “may,” “might,” “plan,” “possible,”
“potential,” “predicts,” “project,” “should,” “would” as well as similar
terms, are forward-looking in nature. The forward-looking statements contained in this discussion are based on the Korai’s current
expectations and beliefs concerning future developments and their potential effects. There can be no assurance that future developments
affecting Korai will be those that it has anticipated. These forward-looking statements involve a number of risks, uncertainties (some
of which are beyond Korai’s control) or other assumptions that may cause actual results or performance to be materially different
from those expressed or implied by these forward-looking statements. Factors that may cause actual results to differ materially from
current expectations include, but are not limited to: the occurrence of any event, change or other circumstances that could give rise
to the termination of negotiations and any subsequent definitive agreements with respect to the Proposed Transaction; the outcome of
any legal proceedings that may be instituted against Korai, APEX, the Combined Company or others following the announcement of the Proposed
Transaction, and any definitive agreements with respect thereto; the inability to complete the Proposed Transaction due to the failure
to obtain approval of the shareholders of APEX, the possibility that due diligence completed following execution of the principal definitive
transaction documents for the Proposed Transaction will not be satisfactorily concluded, the inability to satisfy other conditions to
closing; changes to the proposed structure of the Proposed Transaction that may be required or appropriate as a result of applicable
laws or regulations or as a condition to obtaining regulatory approval of the Proposed Transaction; the ability to meet stock exchange
listing standards in connection with, and following, the consummation of the Proposed Transaction; the risk that the Proposed Transaction
disrupts current plans and operations of Korai as a result of the announcement and consummation of the Proposed Transaction; the ability
to recognize the anticipated benefits of the Proposed Transaction or to realize estimated pro forma results and underlying assumptions,
including with respect to estimated shareholder redemptions; costs related to the Proposed Transaction; changes in applicable laws or
regulations; the evolution of the markets in which Korai competes; the inability of Korai to defend its intellectual property and satisfy
regulatory requirements; the ability to implement business plans, forecasts, and other expectations after the completion of the Proposed
Transaction, and identify and realize additional opportunities; the risk of downturns and a changing regulatory landscape; and other
risks and uncertainties set forth in the section entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking
Statements” in APEX’s prospectus dated February 25, 2026, and “Risk Factors” indicated in the Registration Statement
and the definitive proxy statement to be delivered to APEX’s shareholders, including those set forth under “Risk Factors”
therein, and other documents filed and to be filed with the SEC by APEX. Each of APEX, Korai and the Combined Company expressly disclaims
any obligation or undertaking to update or revise any forward-looking statements, whether as a result of new information, future events
or otherwise, except as required by law.
Additional
Information and Where to Find It
APEX
intends to file with the SEC a registration statement on Form S-4 (as may be amended from time to time, the “Registration Statement”),
which will include a preliminary proxy statement of APEX and a prospectus in connection with the Proposed Transaction involving APEX
and Korai. After the Registration Statement has been filed and declared effective by the SEC, the definitive proxy statement and other
relevant documents will be mailed to APEX shareholders as of a record date to be established for voting on the Proposed Transaction.
APEX shareholders and other interested persons are advised to read, when available, the preliminary proxy statement/prospectus, and amendments
thereto, and the definitive proxy statement/prospectus in connection with APEX’s solicitation of proxies for the special meetings
to be held to approve the Proposed Transaction because these documents will contain important information about APEX, Korai, and the
Proposed Transaction. APEX shareholders and other interested persons will also be able to obtain copies of the Registration Statement
and the proxy statement/prospectus, without charge, once available, on the SEC’s website at www.sec.gov or by directing
a request to APEX by contacting its Chief Executive Officer, Florence Ng, c/o APEX Tech Acquisition Inc., 13501 Katy Fwy, Houston, TX
77079, at info@apextech-inc.com.
Participants
in the Solicitation
APEX,
and Korai and their respective directors and executive officers, other members of management and employees may be deemed to be participants
in the solicitation of proxies in connection with the Proposed Transaction. APEX shareholders and other interested persons may obtain,
without charge, more detailed information regarding directors and officers of APEX in its prospectus dated February 25, 2026, as such
information has been amended on Form 8-K on July 20, 2026. Information regarding the persons who may, under SEC rules, be deemed participants
in the solicitation of proxies from APEX’s shareholders in connection with the Proposed Transaction will be included in the definitive
proxy statement/prospectus that APEX intends to file with the SEC.
No
Offer or Solicitation
This
press release will not constitute a solicitation of a proxy, consent or authorization with respect to any securities or in respect of
the Proposed Transaction. This press release will also not constitute an offer to sell or the solicitation of an offer to buy 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 offering of securities will be made except by
means of a prospectus meeting the requirements of section 10 of the Securities Act of 1933, as amended, or an exemption therefrom.
Company
contact
Florence
Ng, Chief Executive Officer
info@apextech-inc.com
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