OpenWorld签署收购Blocksight最终合并协议，仅发64.19万股(占摊薄股本4%)，$10亿Meridian与$1.3亿BeyondAI项目仍为无约束力意向书

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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 16, 2026
OpenWorld, Inc.
(Exact name of registrant as specified in its charter)
Nevada
001-39332
23-3023677
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)
801 International Parkway
,
Fifth Floor
,
Lake Mary
,
Florida
32746
(Address of principal executive offices)
(Zip Code)
Registrant’s telephone number, including
area code:
(585)
736-9400
(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:
¨
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))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading
Symbol(s)
Name of each exchange on which registered
Common Stock, par value $0.001 per share
OPNW
The
Nasdaq
Capital Market
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.
¨
1
Item 1.01
Entry into a Material Definitive Agreement.
Agreement
and Plan of Merger
On October 16, 2026,
OpenWorld, Inc., a Nevada corporation (the “Company”) entered into an Agreement and Plan of Merger (the “Merger Agreement”)
with Kim & Associates Advisory., Inc., Patrick Kim, Ryan Yue, and Sungmeen Hong (each a “Seller” and collectively the
“Sellers”), Blocksight Holdings Co., a Delaware corporation (“Legacy Blocksight), and OpenWorld Subco (US) Inc., a Delaware
corporation and wholly owned subsidiary of the Company (“Merger Sub”). Upon the terms and subject to the satisfaction of the
conditions described in the Merger Agreement, Merger Sub will merge with and into Legacy Blocksight, Merger Sub will cease to exist,
and Legacy Blocksight will become a wholly owned subsidiary of the Company (the “Merger”). The surviving corporation and wholly
owned subsidiary of the Company after the Merger is referred to herein as “Blocksight”.
The closing of the Merger
will occur upon the date and time mutually agreed upon by the parties (the “Closing”) and is subject to various customary
closing conditions. At the Closing, the Sellers shall deliver the Company, among other things, (i) the Company’s offers of
employment and standard form of employee agreements and the Company’s standard confidentiality, ownership of inventions agreements
and non-solicitation agreements (the “Employment Offer Letters”) executed by each of Mr. Kim and Mr. Hong and each other employee
of Legacy Blocksight and its subsidiary Blocksight LLC; and (ii) a restricted share subscription agreement executed by each Seller, as
described below.
The Merger shall become
effective at such time as a Certificate of Merger has been duly filed with the Secretary of State of the State of Delaware or at such
later date or time as may be agreed by Legacy Blocksight and the Company in writing and specified in the Certificate of Merger in accordance
with the Delaware General Corporations Law (the “Effective Time”). At the Effective Time: (i) shares of common stock of Legacy
Blocksight (the “Shares”) owned by the Company, Merger Sub, or Legacy Blocksight, or any of their respective direct or indirect
wholly owned subsidiaries shall automatically be cancelled and retired and shall cease to exist, and no consideration shall be delivered
in exchange therefore; (ii) each Share issued and outstanding immediately prior to the Effective Time shall be converted into the right
to receive its pro rata share of the Stock Consideration, as defined below; (iii) each share of common stock of Merger Sub issued and
outstanding immediately prior to the Effective Time shall be converted into and become one newly issued, fully paid and non-assessable
share of common stock of Blocksight; (iv) all Shares outstanding immediately prior to the Effective Time shall automatically be cancelled
and retired and shall cease to exist, and each holder of a certificate formerly representing any Shares shall cease to have any rights
as a stockholder of Legacy Blocksight; and (v) the Stock Consideration paid in accordance with the Merger Agreement shall be deemed to
have been paid or payable in full satisfaction of all rights pertaining to the Shares.
Pursuant to the Merger
Agreement, the aggregate purchase price for the Shares is 641,924 shares of the Company’s common stock (the “Stock Consideration”),
which is equal to 4% of the Company’s fully diluted capitalization effective immediately following the previously completed merger
between the Company (f/k/a VerifyMe, Inc.) and Open World Ltd.
At the Closing, the Company shall deliver to
the Sellers, among other things, (i) evidence of the issuance of the Stock Consideration; (ii) the Employment Offer Letters executed
by the Company or one of its subsidiaries; (iii) the restricted share subscription agreements executed by the Company; and (iv) a
Payoff and Satisfaction Acknowledgement executed by OpenWorld Ltd. confirming all amounts owed by Legacy Blocksight to OpenWorld
Ltd. pursuant to a Loan Deed dated January 16, 2026 and amended July 9, 2026, including all principal and accrued interest, are
deemed repaid, discharged and satisfied in full as of the Closing. Closing is subject to the conditions set forth in the Merger Agreement, except to the extent any such condition is waived by the parties
in accordance with the terms thereof.
Following the Closing,
the Company has agreed to satisfy and pay all fees, expenses and other payables incurred prior to Closing by Legacy Blocksight (and by
the Sellers relating to Legacy Blocksight), including, without limitation, all transaction costs and expenses relating to the negotiation
of the Merger Agreement and consummation of the transactions contemplated therein as well as all filing/assignment fees for IP recordals
(the “Legacy Blocksight Expenses”). If the Legacy Blocksight Expenses exceed $125,000, then the Company will deduct any excess
Legacy Blocksight Expenses from the bonus payments payable to Sellers pursuant to any Employment Offer Letters, as discussed below.
2
The
Merger Agreement contains customary representations, warranties and covenants of the Company and Legacy Blocksight.
The Company
has also irrevocably, absolutely, and unconditionally guaranteed the prompt and full payment and performance by the Company and Blocksight
of all of their respective covenants, agreements, indemnities, liabilities, and obligations under or arising out of the Merger Agreement,
the Employment Offer Letters, the restricted share subscription agreements, and each other
Transaction Document, as defined in the Merger Agreement, including all salary, signing bonus, non-contingent cash installment, retention
bonus, severance, milestone bonus, restricted share, registration, legend-removal, and other payment, issuance, and performance obligations
when due.
The
foregoing description of the Merger Agreement does not purport to be complete and is subject to, and is qualified in its entirety by reference
to, the full text of the Merger Agreement, which is attached as Exhibit 2.1 to this Current Report on Form 8-K and is incorporated herein
by reference.
Restricted
Share Subscription Agreements
Pursuant to the Merger
Agreement, the Company has agreed to enter into a restricted share subscription agreement with each Seller (collectively the “Restricted
Share Subscription Agreements”), pursuant to the Company will issue the Sellers 275,110 shares of common stock, which shares will
form a part of the Stock Consideration (the "Restricted Stock Consideration") and will be subject to vesting restrictions (with
the remaining 366,814 shares of common stock forming the remainder of the Stock Consideration not being subject to any vesting restrictions),
with 6.6667% of the Restricted Stock Consideration to be issued to each Seller vesting monthly starting on the 22 month anniversary of
the Closing and continuing until the 36 month anniversary of the Closing, subject to the continued employment of such Seller (or, in the
case of Kim & Associates Advisory Inc., the continued employment of Mr. Kim) by Blocksight (or by the Company or its affiliates) as
of the applicable vesting date, unless such Seller is terminated by Blocksight or the Company without Cause (as defined in the applicable
Employment Offer Letter), provided, however, that the Restricted Stock Consideration to be issued to Mr. Yue will not be subject to any
repurchase option in favor of the Company.
The
foregoing description of the Restricted Share Subscription Agreement does not purport to be complete and is subject to, and is qualified
in its entirety by reference to, the full text of the form of Restricted Share Subscription Agreement, which is attached as Exhibit 10.1
to this Current Report on Form 8-K and is incorporated herein by reference.
Patrick
Kim Employment Letter
Pursuant
to the Merger Agreement, the Company has agreed to cause Blocksight to enter into an Employment Offer Letter with Patrick Kim (the “Kim
Employment Letter”), whereby Mr. Kim will serve as Blocksight’s Chief Executive Officer. Mr. Kim’s base salary will
be $20,833.33 per month, equivalent to approximately $250,000 annually. In addition to the base salary, Mr. Kim will be entitled to receive
the following cash payments under the Kim Employment Agreement: (i) a one-time signing bonus of $357,350, payable at a time agreed upon
by Mr. Kim and Blocksight, provided that Blocksight and the Company are required to use commercially reasonable efforts to make the payment
as soon as practicable after the effective date of the Kim Employment Letter (the “Kim Effective Date”) and, in any event,
no later than 60 days after the Kim Effective Date, subject to an absolute outside payment deadline of 90 days after the Kim Effective
Date; (ii) a bonus of $357,350 payable on the six-month anniversary of the Kim Effective Date (subject to any adjustments pursuant to
the Merger Agreement); and a bonus of $357,350 payable on the twelve-month anniversary of the Kim Effective Date (subject to any adjustment
pursuant to the Merger Agreement). These bonus payments will not be contingent upon Mr. Kim’s continued employment. The signing
bonus payment obligation is absolute and unconditional and will not be contingent upon the occurrence, timing or amount of proceeds from
any at-the-market equity offering, committed equity facility or other equity or debt financing of the Company.
3
Subject
to Mr. Kim’s continued employment with Blocksight through the applicable payment date, Mr. Kim will also be entitled to receive:
(i) a retention bonus of $536,025 payable on the twenty-four-month anniversary of the Kim Effective Date; and (ii) a retention bonus of
$536,025 payable on the thirty-six-month anniversary of the Kim Employment Effective Date.
Mr.
Kim’s employment will be at-will, and Mr. Kim will be eligible to participate in employee benefit plans made available by Blocksight,
the Company, or their respective affiliates to similarly situated full-time employees, subject to the terms of the applicable plans. He
will also be eligible for paid time off, vacation, and paid sick leave in accordance with applicable law.
Under
the Kim Employment Letter, the Company will agree to irrevocably, absolutely, and unconditionally guaranty to Mr. Kim the prompt, full,
and complete payment and performance by Blocksight of all compensation, signing bonuses, non-contingent cash installments, retention bonuses,
severance, acceleration, and other obligations arising under or relating to the Kim Employment Letter, as and when the same become due
and payable.
The
foregoing description of the Kim Employment Letter does not purport to be complete and is subject to, and is qualified in its entirety
by reference to, the full text of the form of Kim Employment Letter, which is attached as Exhibit 10.2 to this Current Report on Form
8-K and is incorporated herein by reference.
Sungmeen
Hong Employment Letter
Pursuant
to the Merger Agreement, the Company has agreed to cause Blocksight to enter into an Employment Offer Letter with Mr. Hong (the “Hong
Employment Letter”), whereby Mr. Hong will serve as Blocksight’s Chief Product Officer. Mr. Hong’s base salary will
be $29,166.67 per month, equivalent to approximately $350,000 annually. In addition to the base salary, Mr. Kim will be entitled to receive
the following cash payments under the Hong Employment Agreement: (i) a one-time signing bonus of $142,650, payable at a time agreed upon
by Mr. Hong and Blocksight, provided that Blocksight and the Company are required to use commercially reasonable efforts to make the payment
as soon as practicable after the effective date of the Hong Employment Letter (the “Hong Effective Date”) and, in any event,
no later than 60 days after the Hong Effective Date, subject to an absolute outside payment deadline of 90 days after the Hong Effective
Date; (ii) a bonus of $142,650 payable on the six-month anniversary of the Hong Effective Date (subject to any adjustments pursuant to
the Merger Agreement); and a bonus of $142,650 payable on the twelve-month anniversary of the Hong Effective Date (subject to any adjustment
pursuant to the Merger Agreement). These bonus payments will not be contingent upon Mr. Hong’s continued employment. The signing
bonus payment obligation is absolute and unconditional and will not be contingent upon the occurrence, timing or amount of proceeds from
any at-the-market equity offering, committed equity facility or other equity or debt financing of the Company.
Subject
to Mr. Hong’s continued employment with Blocksight through the applicable payment date, Mr. Hong will also be entitled to receive:
(i) a retention bonus of $213,975 payable on the twenty-four-month anniversary of the Hong Effective Date; and (ii) a retention bonus
of $213,975 payable on the thirty-six-month anniversary of the Hong Employment Effective Date.
Mr.
Hong’s employment will be at-will, and Mr. Hong will be eligible to participate in employee benefit plans made available by Blocksight,
the Company, or their respective affiliates to similarly situated full-time employees, subject to the terms of the applicable plans. He
will also be eligible for paid time off, vacation, and paid sick leave in accordance with applicable law.
Under
the Hong Employment Letter, the Company will agree to irrevocably, absolutely, and unconditionally guaranty to Mr. Hong the prompt, full,
and complete payment and performance by Blocksight of all compensation, signing bonuses, non-contingent cash installments, retention bonuses,
severance, acceleration, and other obligations arising under or relating to the Hong Employment Letter, as and when the same become due
and payable.
The
foregoing description of the Hong Employment Letter does not purport to be complete and is subject to, and is qualified in its entirety
by reference to, the full text of the form of Hong Employment Letter, which is attached as Exhibit 10.3 to this Current Report on Form
8-K and is incorporated herein by reference.
4
Important Statement
Regarding the Merger Agreement
The Merger Agreement
and the agreements and forms of agreements contemplated thereunder have been included to provide investors and security holders with information
regarding their terms. They are not intended to provide any other factual information about the parties or their respective subsidiaries
and affiliates.
The Merger Agreement contains representations and warranties by the
Company and Merger Sub, on the one hand, and by Legacy Blocksight on the other hand, made solely for the benefit of the other.
The
Company’s stockholders are not third-party beneficiaries under the Merger Agreement and should not rely on the representations,
warranties, covenants and agreements, or any descriptions of those provisions, as characterizations of the actual state of facts or conditions
of the parties to the Merger Agreement or any of their respective subsidiaries or affiliates.
The assertions embodied in those
representations and warranties are qualified by information in confidential disclosure schedules delivered by each party in connection
with the signing of the Merger Agreement. Moreover, certain representations and warranties in the Merger Agreement were made as of a specified
date, may be subject to a contractual standard of materiality different from what might be viewed as material to stockholders or may have
been used for the purpose of allocating risk between the Company and Merger Sub, on the one hand, and Legacy Blocksight and the Sellers,
on the other hand. Accordingly, the representations and warranties in the Merger Agreement are not necessarily characterizations of the
actual state of facts about the Company, Merger Sub, Legacy Blocksight or the Sellers at the time they were made or otherwise. In addition,
information concerning the subject matter of the representations and warranties may change after the date of the Merger Agreement, which
subsequent information may or may not be fully reflected in the Company’s public disclosures.
No Offer or Solicitation
This Current Report on
Form 8-K shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities
in any jurisdiction 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 shall be made except by means of a prospectus meeting the requirements of Section
10 of the Securities Act.
Item 3.02.
Unregistered Sales of Equity Securities.
The
information included in Item 1.01 of this Form 8-K is incorporated by reference into this Item 3.02 to the extent required.
The
Stock Consideration
issuable pursuant to the Merger Agreement, when and if issued, will be
issued pursuant to an exemption from registration including Section 4(a)(2) and/or Rule 506 of Regulation D of the Securities Act of 1933,
as amended (the “Securities Act”).
Item
7.01.
Regulation FD Disclosure.
Attached as Exhibit 99.1
is a copy of the joint press release issued by the Company and Legacy Blocksight on October 19, 2026, announcing the entry into the Merger
Agreement.
The information in this
Item 7.01, including Exhibit 99.1 attached hereto, is being furnished, shall not be deemed “filed” for any purpose, and
shall not be deemed incorporated by reference in any filing under the Securities Act or the Securities Exchange Act of 1934, as amended
(the “Exchange Act”), except as expressly set forth by specific reference in such a filing.
5
Cautionary Note regarding
Forward-Looking Statements
This Current Report on
Form 8-K includes forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act.
These forward-looking statements generally can be identified by the use of words such as “anticipate,” “expect,”
“plan,” “could,” “may,” “will,” “shall,” “should,” “intend,”
and other words of similar meaning. Examples of forward-looking statements include, among others, statements regarding the closing and
effective time of the Merger, the timing and effectiveness of the Restricted Share Subscription Agreements, and the timing and effectiveness
of the employment agreements with Mr. Kim and Mr. Hong. Each forward-looking statement contained in this Current Report on Form 8-K (and
the associated exhibits attached hereto) is subject to risks and uncertainties that could cause actual results to differ materially from
those expressed or implied by such statement. Forward-looking statements are neither historical facts nor assurances of future performance.
Instead, they are based only on our current beliefs, expectations and assumptions. Because forward-looking statements relate to the future,
they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside
of our control. Actual results and outcomes may differ materially from those indicated in the forward-looking statements. Therefore, you
should not rely on any of these forward-looking statements. Important factors that could cause actual results and outcomes to differ materially
from those indicated in the forward-looking statements include, among others, the following: (1) the occurrence of any event, change,
or other circumstances that could give rise to the termination of the Merger Agreement or could otherwise cause the transaction to fail
to close; (2) the institution or outcome of any legal proceedings that may be instituted against the Company or Legacy Blocksight following
the announcement of the Merger Agreement and the transactions contemplated therein; (3) the inability of the parties to complete the proposed
business combination or satisfy other conditions to closing in the Merger Agreement; (4) the risk that the proposed business combination
disrupts current plans and operations as a result of the announcement and consummation of the proposed business combination; (5) the ability
to recognize the anticipated benefits of the proposed business combination; (6) costs related to the proposed business combination; (7)
changes in applicable laws or regulations; and (8) the risks and uncertainties identified under the headings “Item 1A. Risk Factors”
in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on March 31, 2025, and
“Item 1A. Risk Factors” in the Company’s subsequently filed Quarterly Reports on Form 10-Q, as well as other information
the Company has or may file with the SEC.
We caution investors
not to place considerable reliance on the forward-looking statements contained in this Current Report on Form 8-K (and the associated
exhibits attached hereto). You are encouraged to read our filings with the SEC, available at www.sec.gov, for a discussion of these and
other risks and uncertainties. The forward-looking statements speak only as of the date of this document, and we undertake no obligation
to update or revise any of these statements except as required by applicable law. Our business is subject to substantial risks and uncertainties,
including those referenced above. Investors, potential investors, and others should consider these risks and uncertainties. We do not
give any assurance that the Company will achieve its expectations by the transactions contemplated in the Merger Agreement or otherwise.
Item 9.01
Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No.
Description
2.1*
Agreement and Plan of Merger dated October 16, 2026, by and among OpenWorld, Inc. and Blocksight Holdings Co.
10.1*
Form of Restricted Share Subscription Agreement
10.2*
Form of Kim Employment Letter
10.3*
Form of Hong Employment Letter
99.1
Press Release dated October 19, 2026
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)
* Certain schedules, exhibits and similar attachments
have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company will furnish supplementally a copy of any omitted schedule
or exhibit to the Securities and Exchange Commission or its staff upon request.
6
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.
OpenWorld, Inc.
Date: October 19, 2026
/s/ Jennifer Cola
Name:
Jennifer Cola
Title:
Chief Financial Officer

----- ex10_1.htm -----
EX-10.1
3
ex10_1.htm
EXHIBIT 10.1
Exhibit
10.1
FORM OF OPENWORLD,
INC.
RESTRICTED SHARE
SUBSCRIPTION AGREEMENT
This Agreement is made and
entered into on ______________, 2026 (the “
Effective Date
”) by and between OpenWorld, Inc., a Nevada corporation (the
“
Company
”) and __________________ (the “
Subscriber
”).
1.
SUBSCRIPTION
FOR SHARES
.
On the Effective Date and subject to the terms and conditions of this Agreement, Subscriber hereby subscribes
from the Company, and Company hereby issues to Subscriber, _________ shares of common stock of the Company, having a par value of $0.001
per share (the “
Shares
”). As used in this Agreement, the term “
Shares
” refers to the Shares subscribed
under this Agreement and includes all securities issued as a result of any stock dividend, stock split, stock combination, recapitalization,
reclassification, merger, consolidation, reorganization, spin-off, split-up or other similar transaction or event.
2.
CLOSING
.
2.1
Deliveries
by Subscriber
.
Subscriber hereby delivers to the Company: (a) a duly executed copy of this Agreement, (b) two (2) original blank
undated stock power in favor of the Company in the form set out in
Exhibit 1
attached hereto in respect of Shares acquired by the
Company pursuant to Section 6 of this Agreement (the “
Stock Power
”), executed by Subscriber, (c) such identification
documents and other information as is reasonably requested by the Company.
2.2
Deliveries
by the Company
.
Upon its receipt of all the documents to be executed and delivered by Subscriber to the Company under Section
2.1, the Company will issue the Shares pursuant to the terms of this Agreement.
3.
REPRESENTATIONS
AND WARRANTIES OF SUBSCRIBER
.
Subscriber hereby represents and warrants to the Company as follows.
3.1
For
Own Account
.
Subscriber has no present intention of selling or otherwise disposing of all or any portion of the Shares and no
one other than Subscriber has any beneficial ownership of any of the Shares.
3.2
Access
to Information
.
Subscriber has had access to all information regarding the Company and its present and prospective business, assets,
liabilities and financial condition that Subscriber reasonably considers important in making the decision to acquire the Shares, and Subscriber
has had ample opportunity to ask questions of the Company’s representatives concerning such matters and this investment.
1
3.3
Understanding
of Risks
.
Subscriber is a founder, officer, employee, consultant or independent contractor of the Company and is fully aware of:
(a) the highly speculative nature of the Shares; (b) the financial hazards involved; (c) the qualifications and backgrounds of the management
of the Company; and (d) the tax consequences of receiving the Shares. Subscriber acknowledges that the market price of the Company's Common
Stock may be volatile and that the Company has made no representation or warranty regarding the future value of the Shares or the future
performance of the Company
3.4
Subscriber’s
Qualifications
.
Subscriber has a preexisting personal or business relationship with the Company and/or certain of its officers
and/or directors of a nature and duration sufficient to make Subscriber aware of the character, business acumen and general business and
financial circumstances of the Company and/or such officers and directors.
3.5
No
General Solicitation
.
At no time was Subscriber presented with or solicited by any publicly issued or circulated newspaper, mail,
radio, television or other form of general advertising or solicitation in connection with the offer of the Shares.
3.6
Compliance
with Securities Laws
.
Subscriber understands and acknowledges that, in reliance upon the representations and warranties made by
Subscriber herein, the Shares are not being registered with the U.S. Securities and Exchange Commission (“
SEC
”) under
the 1933 Act or pursuant to any applicable state securities law regulations (the “
Law
”), but instead are being issued
under an exemption or exemptions from the registration and qualification requirements of the 1933 Act and the Law or other applicable
securities laws which impose certain restrictions on Subscriber’s ability to transfer the Shares.
3.7
Restrictions
on Transfer
.
Subscriber understands that Subscriber may not transfer any Shares unless such Shares are registered under the 1933
Act or other applicable state securities laws or unless, in the opinion of counsel to the Company, exemptions from such registration and
qualification requirements are available. Subscriber understands that only the Company may file a registration statement with the SEC
or applicable U.S. state securities commissioners and that the Company is under no obligation to do so with respect to the Shares. Subscriber
has also been advised that exemptions from registration and qualification may not be available or may not permit Subscriber to transfer
all or any of the Shares in the amounts or at the times proposed by Subscriber.
3.8
Rule
144
.
In addition, Subscriber has been advised that SEC Rule 144 promulgated under the 1933 Act, which permits certain limited
sales of unregistered securities, is not presently available with respect to the Shares and, in any event, requires that the Shares be
held for a minimum of six months, and in certain cases one year, after they have been acquired , before they may be sold under Rule 144.
Subscriber understands that Rule 144 may indefinitely restrict transfer of the Shares so long as Subscriber remains an “affiliate”
of the Company and certain information about the Company (as defined in Rule 144) is not publicly available.
2
4.
Lock-UP
AGREEMENT
.
Subscriber agrees in connection with any registration of the Company’s securities under the 1933
Act that, upon the request of the Company or the underwriters managing any registered public offering of the Company’s securities,
Subscriber will enter into a lock-up agreement requested by the underwriter not to sell or otherwise dispose of any Shares without the
prior written consent of the Company or such underwriters, as the case may be, for such period of time (not to exceed one hundred eighty
(180) days) after the effective date of such registration requested by such managing underwriters and subject to all restrictions as the
Company or the managing underwriters may specify for employee-shareholders generally; provided, however, such restriction are no more
restrictive than those applicable to officers, directors, and employees of the Company. For purposes of this Section 4, the term “Company”
shall include any wholly-owned subsidiary of the Company into which the Company merges or consolidates. In order to enforce the foregoing
covenant, the Company shall have the right to place restrictive legends on the certificates representing the Shares subject to this Section
(if any) and to impose stop transfer instructions with respect to the Shares until the end of such period. Subscriber further agrees to
enter into any agreement reasonably required by the underwriters to implement the foregoing and that such underwriters are express third
party beneficiaries of this Section 4.
5.        Reserved.
6.
COMPANY’S
REPURCHASE OPTION
.
The Company and/or its assignees shall have the option to repurchase all or a portion of the
Restricted Shares (defined in Section 6.2 below) on the terms and conditions set forth in this Section (the “
Repurchase Option
”)
if Subscriber ceases to be employed by the Company or its Affiliates (as defined herein) for any reason, including without limitation
Subscriber’s death, disability, voluntary resignation or termination by the Company, provided that the Repurchase Option shall not
apply if Subscriber’s employment is terminated by the Company without Cause (as defined in Subscriber’s Employment Offer Letter).
6.1
Definition
of “Employed by the Company”; “Termination Date”
.
For purposes of this Agreement, Subscriber will be considered
to be “
employed by the Company
” if the Subscriber is rendering services as an officer, employee, consultant or independent
contractor to the Company or to any Affiliate of the Company. Subscriber shall cease to be employed by the Company only upon (a) Subscriber’s
voluntary resignation from such role, (b) written notice of termination delivered to Subscriber by the Company or the applicable Affiliate,
(c) Subscriber’s death or permanent disability, or (d) the mutual written agreement of Subscriber and the Company to terminate such
service. The “
Termination Date
” shall be the effective date specified in such written resignation, termination notice,
or mutual agreement, or, in the case of death or permanent disability, the date such event occurs. In the event of any dispute regarding
whether Subscriber remains employed by the Company or the applicable Termination Date, such dispute shall be resolved based on the existence
and terms of the applicable written notice or agreement described above, and the Board of Directors shall not have authority to unilaterally
determine or retroactively designate the Termination Date absent such written documentation. An “
Affiliate
” means any
entity that owns, directly or indirectly, share representing more than fifty percent (50%) of the total combined voting power of all classes
of share of the Company or any entity in which the Company owns, directly or indirectly, equity interests representing more than fifty
percent (50%) of the voting power of such entity.
3
6.2
Restricted
and Unrestricted Shares
.
Shares that are no longer subject to repurchase by the Company if Subscriber ceases to be employed by
the Company pursuant to the schedule set forth herein are “
Unrestricted Shares
”. Shares that are subject to repurchase
by the Company if Subscriber ceases to be employed by the Company pursuant to the schedule set forth herein are “
Restricted Shares
”.
Restricted Shares may not be sold or otherwise transferred by Subscriber without the Company’s prior written consent. On the Effective
Date all of the Shares will be Restricted Shares. If Subscriber has continuously been employed by the Company or any Affiliate, at all
times from the Effective Date until the corresponding date (and if there is no corresponding date, then the last day of such calendar
month) that is the twenty second (22nd) month after the Effective Date (the “
First Vesting Date
”), then on the First
Vesting Date, 1/15th of the Shares will become Unrestricted Shares; and thereafter, for so long (and only for so long) as Subscriber remains
continuously employed by the Company or any Affiliate or successor (referred to collectively with the Company in this Section 6.2 as the
“
Company
”) at all times after the First Vesting Date, on the same day of each succeeding calendar month after the First
Vesting Date (or if there is no such day in any month, then the last day of such calendar month) an additional 1/15th of the Shares will
become Unrestricted Shares. No Restricted Shares will become Unrestricted Shares after the Termination Date, provided that if Subscriber’s
employment is terminated by the Company without Cause, the Restricted Shares shall continue to become Unrestricted Shares in accordance
with the schedule above notwithstanding such termination.
6.3
Adjustments
.
The number of Shares (whether Unrestricted Shares or Restricted Shares) will be proportionally adjusted to reflect any stock dividend,
stock split, reverse stock split, reclassification or recapitalization of the common stock of the Company occurring after the Effective
Date.
6.4
Exercise
of Repurchase Option at Original Price
.
At any time within ninety (90) days after the Termination Date, the Company may elect
to repurchase any or all of the Restricted Shares by giving Subscriber written notice of exercise of the Repurchase Option. The Company
and/or its assignee(s) will then have the option to repurchase from Subscriber (or from Subscriber’s personal representative as
the case may be) any or all of the Restricted Shares at their nominal or par value of $0.001 per share (the “
Repurchase Price
”).
Notwithstanding anything to the contrary in the foregoing, unless the Company notifies the Subscriber within ninety (90) days from the
Termination Date that it does not intend to exercise its Repurchase Option with respect to some or all of the Restricted Shares, the Repurchase
Option shall be deemed automatically exercised by the Company at the end of such ninety (90) day period from the Termination Date and
the execution of this Agreement shall constitute deemed notice of the Company’s intention to exercise its Repurchase Option with
respect to all Restricted Shares to which its Repurchase Option applies and further operates to appoint and constitute the Company as
the agent for the Subscriber for the purpose of the proposed disposition, with full power to execute, complete and deliver in the name
and on behalf of the Subscriber an instrument of transfer and take all other necessary action to effect the disposition in accordance
with Section 8 (the “
Deemed Notice
”). If the Company neither notifies Subscriber prior to the end of such ninety (90)
day period of the Company’s decision not to exercise its Repurchase Option, nor delivers payment of the aggregate Repurchase Price
to Subscriber after the actual or deemed exercise of the Repurchase Option, then the sole remedy of Subscriber thereafter shall be to
receive the aggregate Repurchase Price from the Company in the manner set forth above for the Restricted Shares that are deemed repurchased,
and in no case shall Subscriber have any claim of ownership as to any of such Restricted Shares.
6.5
Payment
of Repurchase Price
.
The Repurchase Price will be payable, at the option of the Company and/or its assignee(s), as the case may
be, by wire transfer of immediately available US funds or by cancellation of all or a portion of any outstanding indebtedness owed by
Subscriber to the Company (or to such assignee) or by any combination thereof. The Repurchase Price will be paid without interest within
ninety (90) days after the Company gives the Subscriber written notice of the exercise of its Repurchase Option or the effectiveness of
the Deemed Notice.
4
6.6
Right
of Termination Unaffected
.
Nothing in this Agreement will be construed to limit or otherwise affect in any manner whatsoever the
right or power of the Company (or any Affiliate) to terminate Subscriber’s employment with the Company (or any Affiliate) at any
time for any reason or no reason, with or without cause.
6.7
Termination
of Repurchase Option
.
The Repurchase Option will terminate as to all Shares upon the exercise by the Company of its Repurchase
Option for all of the Shares the subject of this Agreement.
7.
RIGHTS
AS OWNER OF SHARES.
7.1
Encumbrances
on Unrestricted Shares
. Subscriber may grant a lien or security interest in, or pledge, charge, hypothecate or encumber Unrestricted
Shares only if each party to whom such lien or security interest is granted, or to whom such pledge, charge, hypothecation or other encumbrance
is made, agrees in a writing satisfactory to the Company that: (a) such lien, security interest, pledge, charge, hypothecation or encumbrance
will not apply to such Unrestricted Shares after they are acquired by the Company and/or its assignees under this Agreement; and (b) the
provisions of this Agreement will continue to apply to such Unrestricted Shares in the hands of such party and any transferee of such
party.
7.2
Rights
over Shares
.
Subject to the terms and conditions of this Agreement, Subscriber will be the record owner of the Shares until
the shares of Common Stock are sold or otherwise disposed of, and shall be entitled to all of the rights of a stockholder of the
Company including, without limitation, the right to vote such shares and receive all dividends or other distributions paid with
respect to such shares. Notwithstanding the foregoing, any dividends or other distributions shall be subject to the same
restrictions on transferability as the shares of Shares with respect to which they were paid, and any such dividends or other
distributions shall vest on the same date as the shares of Restricted Stock to which such dividends or other distributions relate
vest. The Company may issue stock certificates or evidence the Subscriber’s interest by using a restricted book entry account.
Physical possession or custody of any stock certificates that are issued shall be retained by the Company until such time as the
Shares vests. If the Subscriber forfeits any of his rights under this Agreement in accordance with Section 6 hereof, the Subscriber
shall, on the date of such forfeiture, no longer have any rights as a stockholder with respect to the Shares forfeited and shall no
longer be entitled to vote or receive dividends on such shares.
8.
ESCRO
W.
8.1
As
security for Subscriber’s faithful performance of this Agreement, Subscriber agrees to deliver the Stock Power executed by Subscriber
to the Company or other designee of the Company (the “
Escrow Holder
”), who is hereby appointed to hold such Stock Power
in escrow (the “
Escrow
”) and to take all such actions and to effectuate all such transfers and/or releases of such
Shares as are in accordance with the terms of this Agreement. Escrow Holder will act solely for the Company as its agent and not as a
fiduciary. Subscriber and the Company agree that Escrow Holder will not be liable to any party to this Agreement (or to any other party)
for any actions or omissions unless Escrow Holder is grossly negligent (as construed in accordance with Delaware law) or intentionally
fraudulent in carrying out the duties of Escrow Holder under this Agreement. Escrow Holder may rely upon any letter, notice or other document
executed with any signature purported to be genuine and may rely on the advice of counsel and obey any order of any court or arbitration
with respect to the transactions contemplated by this Agreement. The Escrow will terminate upon termination of the Right of First Refusal
and the Repurchase Option and the Stock Power shall be discarded.
5
8.2
By
way of security the Company and every Escrow Holder is hereby irrevocably appointed separately to be the attorney of the Subscriber, for
the purpose of carrying out the provisions set out in Section 8.1 of this Agreement and taking any action and executing any instruments
which the Company may deem necessary or advisable to accomplish the full benefit of Section 6 and this Section 8. The power of attorney
hereby granted is granted irrevocably for full value as part of the security constituted hereby to secure proprietary interests of and
the performance of obligations owed to the Company within the meaning of the Nevada Revised Statutes and the Subscriber hereby acknowledges
the same.
8.3
The
power hereby conferred shall be a general power of attorney and the Subscriber ratifies and confirms, and agrees to ratify and confirm,
anything which any of its attorneys may do in the proper and lawful exercise, or purported exercise, of all or any of the rights, powers,
authorities and discretions referred to in Section 8.2.
9.
U.S.
TAX CONSEQUENCES
. SUBSCRIBER UNDERSTANDS THAT SUBSCRIBER MAY SUFFER ADVERSE TAX CONSEQUENCES AS A RESULT OF SUBSCRIBER’S
DISPOSITION OF THE SHARES. SUBSCRIBER REPRESENTS (a) THAT SUBSCRIBER HAS CONSULTED WITH A TAX ADVISER THAT SUBSCRIBER DEEMS ADVISABLE
IN CONNECTION WITH THE DISPOSITION OF THE SHARES AND (b) THAT SUBSCRIBER IS NOT RELYING ON THE COMPANY FOR ANY TAX ADVICE. Subscriber
hereby acknowledges that Subscriber has been informed that, in addition to receiving taxable income upon the receipt of any Shares paid
for by the cancellation of compensation for services rendered, unless an election is filed by the Subscriber with the Internal Revenue
Service (and, if necessary, the proper state taxing authorities)
within 30 days
to be effective, electing pursuant to Section 83(b)
of the U.S. Internal Revenue Code (and similar state tax provisions, if applicable) to be taxed currently on their fair market value on
the date of receipt, there will be a recognition of taxable income to the Subscriber, measured by the excess, if any, of the fair market
value of the Shares, at the time such Shares are subscribed for. Subscriber represents that Subscriber has consulted any tax advisors
Subscriber deems advisable in connection with Subscriber’s receipt of the Shares and the filing of the election under Section 83(b)
and similar tax provisions. A form of Election under Section 83(b) is attached hereto as
Exhibit 2
for reference. SUBSCRIBER HEREBY
ASSUMES ALL RESPONSIBILITY FOR PROPERLY COMPLETING AND TIMELY FILING SUCH ELECTION AND PAYING ANY TAXES RESULTING FROM SUCH ELECTION OR
FROM FAILURE TO FILE THE ELECTION AND PAYING TAXES RESULTING FROM THE LAPSE OF THE REPURCHASE RESTRICTIONS ON THE RESTRICTED SHARES.
6
10.
RESTRICTIVE
LEGENDS AND STOP-TRANSFER ORDERS
.
10.1
Legends
.
Subscriber understands and agrees that the Company will place the legends set forth below or similar legends on any stock certificate(s)
evidencing the Shares (if any), together with any other legends that may be required by U.S. state or federal securities laws, the Company’s
Articles of Incorporation and Bylaws, any other agreement between Subscriber and the Company or any third party:
THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER
THE SECURITIES LAWS OF CERTAIN STATES. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED
OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. SUBSCRIBERS
SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THE ISSUER
OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED
TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.
THE
SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON PUBLIC RESALE AND TRANSFER, INCLUDING THE RIGHTS OF REPURCHASE
AND FIRST REFUSAL HELD BY THE ISSUER AND/OR ITS ASSIGNEE(S), AND A MARKET STANDOFF RESTRICTION, AS SET FORTH IN A RESTRICTED SHARE SUBSCRIPTION
AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE REGISTERED OFFICE OF THE
ISSUER. SUCH PUBLIC SALE AND TRANSFER RESTRICTIONS, INCLUDING THE RIGHTS OF REPURCHASE AND FIRST REFUSAL, AND THE MARKET STANDOFF RESTRICTION,
ARE BINDING ON TRANSFEREES OF THESE SHARES.
10.2
Stop-Transfer
Instructions
.
Subscriber agrees that, the Company will not be required (a) to record the transfer of any Shares that have been
sold or otherwise transferred in violation of any of the provisions of this Agreement or Articles of Incorporation and Bylaws or (b) to
treat as owner of such Shares, or to accord the right to vote or pay dividends, to any Subscriber or other transferee to whom such Shares
have been so transferred.
11.
COMPLIANCE
WITH LAWS AND REGULATIONS
.
The issuance and transfer of the Shares will be subject to and conditioned upon compliance
by the Company and Subscriber with all applicable laws and regulations and with all applicable requirements of any share exchange or automated
quotation system on which the Company’s ordinary shares may be listed or quoted at the time of such issuance or transfer. Notwithstanding
any other provision of this Agreement, the issuance and/or transfer of any Shares to the Subscriber under this Agreement shall not be
effected (and the Company shall be under no obligation to cause such issuance or transfer to be registered) if the Subscriber has failed
to provide any requisite anti-money laundering or know-your-customer information which the Company has requested. Moreover, the Company
may decline to register the issuance and/or transfer of Shares to the Subscriber under this Plan where such issuance and/or transfer of
Shares would subject the Company to adverse legal, tax or regulatory consequences.
7
12.
GENERAL
PROVISIONS
.
12.1
Notices
.
Any and all notices required or permitted to be given to a party pursuant to the provisions of this Agreement will be in writing and will
be effective and deemed to provide such party sufficient notice under this Agreement on the earliest of the following: (a) at the time
of personal delivery, if delivery is in person; (b) one (1) business day after deposit with an express overnight courier for United States
deliveries, or two (2) business days after such deposit for deliveries outside of the United States; or (c) three (3) business days after
deposit in the United States mail by certified mail (return receipt requested) for United States deliveries. All notices for delivery
outside the United States will be sent by express courier. All notices not delivered personally will be sent with postage and/or other
charges prepaid and properly addressed to the party to be notified at the address set forth below the signature lines of this Agreement
or at such other address as such other party may designate by one of the indicated means of notice herein to the other party hereto. A
“
business day
” shall be a day, other than Saturday or Sunday, when the banks in New York, New York are open for business.
12.2
Further
Assurances
.
The parties agree to execute such further documents and instruments and to take such further actions as may be reasonably
necessary to carry out the purposes and intent of this Agreement.
12.3
Titles
and Headings
.
The titles, captions and headings of this Agreement are included for ease of reference only and will be disregarded
in interpreting or construing this Agreement. Unless otherwise specifically stated, (a) all references herein to “sections”
and “exhibits” will mean “sections” and “exhibits” to this Agreement and (b) all references herein
to “days” will mean “calendar days.”
12.4
Governing
Law
.
This Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware without giving
effect to any choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction). Any legal suit,
action, proceeding, or dispute arising out of or related to this Agreement, the other Transaction Documents, or the transactions contemplated
hereby or thereby may be instituted in the federal courts of the United States of America or the courts of the State of Delaware, and
each party irrevocably submits to the exclusive jurisdiction of such courts in any such suit, action, proceeding, or dispute.
8
12.5
Waiver
of Jury Trial.
EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT OR THE OTHER TRANSACTION
DOCUMENTS IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL ACTION, PROCEEDING, CAUSE OF ACTION,
OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT, INCLUDING ANY EXHIBITS AND SCHEDULES ATTACHED TO THIS AGREEMENT, THE OTHER
TRANSACTION DOCUMENTS, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT: (A) NO REPRESENTATIVE
OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE OTHER PARTY WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE
EVENT OF A LEGAL ACTION; (B) EACH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER; (C) EACH PARTY MAKES THIS WAIVER KNOWINGLY AND
VOLUNTARILY; AND (D) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
IN THIS SECTION.
12.6
Assignments;
Successors and Assigns
.
The Company may assign any of its rights and obligations under this Agreement, including but not limited
to its rights to repurchase Shares under the Repurchase Option. Any assignment of rights and obligations by any other party to this Agreement
requires the Company’s prior written consent. This Agreement, and the rights and obligations of the parties hereunder, will be binding
upon and inure to the benefit of their respective successors, assigns, heirs, executors, administrators and legal representatives.
12.7
Entire
Agreement
.
This Agreement (including its exhibits) and the documents referred to herein constitute the entire agreement and understanding
of the parties with respect to the subject matter of this Agreement, and supersede all prior and contemporaneous understandings and agreements,
whether oral or written, between or among the parties hereto with respect to the specific subject matter hereof.
12.8
Amendment
and Waivers
.
This Agreement may be amended only by a written agreement executed by each of the parties hereto. No amendment of
or waiver of, or modification of any obligation under this Agreement will be enforceable unless set forth in a writing signed by the party
against which enforcement is sought. Any amendment effected in accordance with this Section will be binding upon all parties hereto and
each of their respective successors and assigns. No delay or failure to require performance of any provision of this Agreement shall constitute
a waiver of that provision as to that or any other instance. No waiver granted under this Agreement as to any one provision herein shall
constitute a subsequent waiver of such provision or of any other provision herein, nor shall it constitute the waiver of any performance
other than the actual performance specifically waived.
12.9
Severability
.
If any provision of this Agreement is determined by any court or arbitrator of competent jurisdiction to be invalid, illegal or unenforceable
in any respect, such provision will be enforced to the maximum extent possible given the intent of the parties hereto. If such clause
or provision cannot be so enforced, such provision shall be stricken from this Agreement and the remainder of this Agreement shall be
enforced as if such invalid, illegal or unenforceable clause or provision had (to the extent not enforceable) never been contained in
this Agreement. Notwithstanding the forgoing, if the value of this Agreement based upon the substantial benefit of the bargain for any
party is materially impaired, which determination as made by the presiding court or arbitrator of competent jurisdiction shall be binding,
then both parties agree to substitute such provision(s) through good faith negotiations.
9
12.10
Counterparts;
Signatures
.
This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together
shall be deemed to be one and the same agreement. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic
signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any counterpart
so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.
12.11
Third
Party Rights.
(a) Any Escrow Holder not being a party to this Agreement, may enforce any rights granted to it pursuant to this
Agreement in its own right as if it were a party to this Agreement. (b) Except as expressly provided in paragraph (a) above, a person
who is not a party to this Agreement shall not have any rights to enforce any term of this Agreement.(c) Notwithstanding any term of this
Agreement, the consent of or notice to any person who is not a party to this Agreement shall not be required for any termination, rescission
or agreement to any variation, waiver, assignment, novation, release or settlement under this Agreement at any time.
[
Signature
page follows
]
IN WITNESS WHEREOF
,
the Company has caused this Restricted Share Subscription Agreement to be executed by its duly authorized representative and Subscriber
has executed this Agreement, each as a deed on the Effective Date.
“COMPANY”
“SUBSCRIBER”
OPENWORLD, INC.
____________________
By:
By:
Name:
Name:
Title:
Title:
Witness:
Witness:
Name:
Name:
Address:
Address:
[Signature
Page To Restricted Share Subscription Agreement]
EXHIBIT 1
Stock Power
STOCK POWER
FOR VALUE RECEIVED, the undersigned hereby sells,
assigns and transfers unto OPENWORLD, INC., _________________ (_______) shares of Common Stock of OPENWORLD, INC., a Nevada corporation,
standing in the undersigned's name on the books of such corporation and represented by Certificate No. ________ herewith, and does hereby
irrevocably constitute and appoint the Secretary of the Corporation as attorney-in-fact to transfer such stock on the books of the Corporation,
with full power of substitution in the premises.
Dated: ___________________
_________________________________
(Signature)
_________________________________
(Print Name)
EXHIBIT 2
ELECTION UNDER
SECTION 83(
b
) OF THE
INTERNAL REVENUE CODE

----- ex10_2.htm -----
EX-10.2
4
ex10_2.htm
EXHIBIT 10.2
Exhibit 10.2
FORM
BLOCKSIGHT HOLDINGS CO.
__________________, 2026
Patrick Kim
2600 South Sepulveda Blvd
Los Angeles, CA 90064
Re: Employment Terms
Dear Patrick Kim:
Blocksight Holdings Co. (the
“
Company
”) is pleased to offer you full-time employment in the exempt position of Chief Executive Officer, effective
as of _______ (the "
Effective Date
"), in which you will be responsible for such duties as are normally associated with
such position or as otherwise determined by the Company’s Board of Directors (the “
Board of Directors
”). You
will report to the Board of Directors, and will work remotely, except for such travel as may be necessary to fulfill your responsibilities.
In the course of your employment with Company, you will be subject to and required to comply with all company policies, and applicable
laws and regulations.
You will be paid a base salary
at the monthly rate of $20,833.33 (subject to required tax withholding and other authorized deductions). Your base salary will be payable
in accordance with the Company’s standard payroll policies and subject to adjustment pursuant to the Company’s policies as
in effect from time to time.
In addition to your base salary,
you will receive a one-time signing bonus of $357,350, payable at such time as is agreed upon by you and the Company, provided that the
Company and Parent covenant to use commercially reasonable efforts to pay such signing bonus as soon as practicable following the Effective
Date and in any event no later than sixty (60) days following the Effective Date, with an absolute outside limit not to exceed ninety
(90) days following the Effective Date; and such payment obligation shall be absolute, unconditional, and not contingent upon the occurrence
of, timing of, or amount of proceeds realized from any at-the-market equity offering, committed equity facility, or other equity or debt
financing of Parent), and a bonus of $357,350, payable on the six-month anniversary of the Effective Date, and a bonus of $357,350, payable
on the twelve-month anniversary of the Effective Date. None of the foregoing payments shall be contingent upon your continued employment
with the Company. Except for required tax withholding and any adjustment expressly permitted under Section 1.03 of the Merger Agreement,
neither the Company nor Parent may set off, withhold, recoup, suspend, delay, or otherwise apply any amount payable under this letter
against any alleged claim or obligation of yours.
You will also be entitled
to the following retention bonuses, each contingent upon your continued employment with the Company through the applicable payment date:
●
A bonus of $536,025, payable on the twenty-four-month anniversary of the Effective Date; and
●
A bonus of $536,025, payable on the thirty-six-month anniversary of the Effective Date.
Patrick Kim
_________________, 2026
Page
2
All bonuses are subject to
required tax withholding and other authorized deductions.
In accordance with California
Labor Code Section 2810.5 (the Wage Theft Prevention Act), attached hereto as
Exhibit C
is the applicable notice. This notice provides
you with further information concerning the Company, your compensation and the Company’s paydays. Please sign the notice acknowledging
your receipt of the document at the same time you sign this offer accepting its terms.
In connection with entering
into this offer letter, Open World, Inc. (the “
Parent
”) is issuing to you [●] shares of common stock of the Parent
(the “
Restricted Shares
”) pursuant to the terms of that certain Restricted Share Subscription Agreement entered into
between you and the Parent on the date hereof (the “
Restricted Share Subscription Agreement
”). Subject to your continued
employment with the Company through the applicable vesting date, 1/15th of the Restricted Shares will vest on the twenty-second month
anniversary of the date you commence employment and 1/15th of the total number of Restricted Shares will vest on each monthly anniversary
thereafter.
You will be eligible to participate
in any employee benefits and benefit plans that the Company, the Parent, or their respective affiliates make available to similarly situated
full-time employees from time to time, subject to the terms and conditions of such plans.
You will be eligible for paid
time off, vacation and/or paid sick leave in accordance with applicable law.
The Company requires that,
as a full-time employee, you devote your full business time, attention, skill, and efforts to the tasks and duties of your position as
assigned by the Company. If you wish to request consent to provide services (for any or no form of compensation) to any other person or
business entity while employed by the Company, please discuss that with me in advance of accepting another position.
As a condition of employment,
you will be required (1) to sign and comply with an Employee Proprietary Information and Inventions Assignment Agreement, a copy of which
is attached hereto as
Exhibit A
, which, among other things, prohibits unauthorized use or disclosure of Company proprietary information;
(2) to sign and return a satisfactory I-9 Immigration form attached hereto as
Exhibit B
and provide sufficient documentation establishing
your employment eligibility in the United States of America (enclosed is a list of acceptable INS Form I-9 documentation); and (3) to
provide satisfactory proof of your identity as required by U.S. law. A further condition of your employment is satisfactory completion
of a credit and/or criminal background check.
By signing below, you represent
that your performance of services to the Company will not violate any duty which you may have to any other person or entity (such as a
present or former employer), including obligations concerning providing services (whether or not competitive) to others, confidentiality
of proprietary information and assignment of inventions, ideas, patents or copyrights, and you agree that you will not do anything in
the performance of services hereunder that would violate any such duty.
Patrick Kim
_________________, 2026
Page
3
"
Cause
" shall
mean any of the following, as determined in good faith by the Board of Directors or its designee and subject to the notice and cure provisions
below: (i) your conviction of, or plea of guilty or
nolo contendere
to, any felony or any crime involving fraud, material dishonesty,
embezzlement, or your indictment for any such offense that is not dismissed within thirty (30) days; (ii) your willful misconduct, gross
negligence, insubordination, or material neglect of duties, including any continued failure to substantially perform the duties of your
position (other than due to illness, disability, or approved leave) or your failure or refusal to follow lawful written directives of
the Board of Directors consistent with your position, which failure or refusal continues for thirty (30) days after written notice from
the Company, specifying the conduct giving rise to such failure or refusal; (iii) your material breach of this letter, the Employee Proprietary
Information and Inventions Assignment Agreement, the Restricted Share Subscription Agreement, or any material fiduciary duty owed to the
Company or the Parent; (iv) any act of fraud, embezzlement, or material dishonesty by you in connection with your employment or your relationship
with the Parent or any of their respective affiliates; (v) your material violation of any written policy relating to the code of conduct,
harassment, discrimination, or workplace safety; (vi) your material unauthorized use or disclosure of confidential information or trade
secrets of the Company, the Parent or any of their respective affiliates, or your willful refusal to cooperate with any bona fide internal
or regulatory investigation; or (vii) any other conduct by you that is materially detrimental to the reputation, business, or operations
of the Company, the Parent or any of their respective affiliates.
Notwithstanding any of the
above, your employment with the Company is "at will" and may be terminated without Cause. This means that it is not for any
specified period of time and can be terminated by you or by the Company at any time, with or without advance notice, and for any or no
particular reason or cause. It also means that your job duties, title and responsibility and reporting level, work schedule, compensation
and benefits, as well as the Company's personnel policies and procedures, may be changed with prospective effect, with or without notice,
at any time in the sole discretion of the Company.
If you accept this offer,
this letter and the Employee Proprietary Information and Inventions Assignment Agreement shall constitute the complete agreement between
you and Company with respect to the terms and conditions of your employment. Any prior or contemporaneous representations (whether oral
or written) not contained in this letter or the Employee Proprietary Information and Inventions Assignment Agreement or contrary to those
contained in this letter or the Employee Proprietary Information and Inventions Assignment Agreement, that may have been made to you are
expressly cancelled and superseded by this offer.
This offer letter shall be
interpreted and construed in accordance with the laws of the State of California without regard to any conflicts of laws principles. While
other terms and conditions of your employment may change in the future, the at-will nature of your employment may not be changed, except
in a subsequent letter or written agreement, signed by you and a duly authorized member of the Board of Directors.
(
Signature Page Follows
)
Please sign and date this letter, page 2 of the
“Notice to Employee” and the Employee Proprietary Information and Inventions Assignment Agreement via DocuSign by _________________,
2026 if you wish to accept employment at the Company under the terms described above, after which time this offer of employment will expire.
If you accept our offer, we would like you to commence your employment with us as soon as practicable.
Sincerely,
Blocksight Holdings Co.
By:
Name:
Title:
Accepted by:
Patrick Kim
[SIGNATURES LOCATED ON THE FOLLOWING PAGE]
PARENT JOINDER AND UNCONDITIONAL GUARANTY:
Open World, Inc. (“Parent”) hereby
executes this offer letter agreement solely for purposes of this Parent Joinder and Unconditional Guaranty. Parent hereby irrevocably,
absolutely, and unconditionally guarantees to Employee the prompt, full, and complete payment and performance by the Company of all compensation,
signing bonuses, non-contingent cash installments, retention bonuses, severance, acceleration, and other obligations arising under or
relating to this offer letter agreement, as and when the same become due and payable. This guaranty is a primary obligation and a guaranty
of payment and performance, and not merely of collection, and Employee may enforce this guaranty directly against Parent without first
proceeding against the Company.
Open World, Inc.
By:
Name:
Title:
Date:
Exhibit A
Employee Proprietary Information and Inventions
Assignment Agreement
Exhibit B
INS Form I-9
Exhibit C
California Wage Theft Prevention Act Notice
to Employee (Labor Code § 2810.5)

----- ex10_3.htm -----
EX-10.3
5
ex10_3.htm
EXHIBIT 10.3
Exhibit 10.3
FORM
BLOCKSIGHT HOLDINGS CO.
__________________, 2026
Sungmeen (Peter) Hong
544 Carroll Street
Brooklyn, NY 11215
Re: Employment Terms
Dear Sungmeen Hong:
Blocksight Holdings Co. (the
“
Company
”), is pleased to offer you full-time employment in the exempt position of Chief Product Officer, effective
as of __________ (the "
Effective Date
"), in which you will be responsible for such duties as are normally associated
with such position or as otherwise determined by the Chief Executive Officer of the Company. You will report to Patrick Kim, the Chief
Executive Officer of the Company, or such other individual as the Company may designate, and will work remotely, except for such travel
as may be necessary to fulfill your responsibilities. In the course of your employment with Company, you will be subject to and required
to comply with all company policies, and applicable laws and regulations.
You will be paid a base salary
at the monthly rate of $29,166.67 (subject to required tax withholding and other authorized deductions). Your base salary will be payable
in accordance with the Company’s standard payroll policies and subject to adjustment pursuant to the Company’s policies as
in effect from time to time.
In addition to your base salary,
you will receive a one-time signing bonus of $142,650, payable at such time as is agreed upon by you and the Company, provided that the
Company and Parent covenant to use commercially reasonable efforts to pay such signing bonus as soon as practicable following the Effective
Date and in any event no later than sixty (60) days following the Effective Date, with an absolute outside limit not to exceed ninety
(90) days following the Effective Date; and such payment obligation shall be absolute, unconditional, and not contingent upon the occurrence
of, timing of, or amount of proceeds realized from any at-the-market equity offering, committed equity facility, or other equity or debt
financing of Parent), and a bonus of $142,650, payable on the six-month anniversary of the Effective Date, and a bonus of $142,650, payable
on the twelve-month anniversary of the Effective Date. None of the foregoing payments shall be contingent upon your continued employment
with the Company. Except for required tax withholding and any adjustment expressly permitted under Section 1.03 of the Merger Agreement,
neither the Company nor Parent may set off, withhold, recoup, suspend, delay, or otherwise apply any amount payable under this letter
against any alleged claim or obligation of yours.
Sungmeen Hong
_________________, 2026
Page
2
You will also be entitled
to the following retention bonuses, each contingent upon your continued employment with the Company through the applicable payment date:
●
A bonus of $213,975, payable on the twenty-four-month anniversary of the Effective Date; and
●
A bonus of $213,975, payable on the thirty-six-month anniversary of the Effective Date.
All bonuses are subject to
required tax withholding and other authorized deductions.
In accordance with the New
York Wage Theft Prevention Act, attached hereto as
Exhibit C
is the applicable notice. This notice provides you with further information
concerning the Company, your compensation and the Company’s paydays. Please sign the notice acknowledging your receipt of the document
at the same time you sign this offer accepting its terms.
In connection with entering
into this offer letter, Open World, Inc. (the “
Parent
”) is issuing to you [●] shares of common stock of the Parent
(the “
Restricted Shares
”) pursuant to the terms of that certain Restricted Share Subscription Agreement entered into
between you and the Parent on the date hereof (the “
Restricted Share Subscription Agreement
”). Subject to your continued
employment with the Company through the applicable vesting date, 1/15th of the Restricted Shares will vest on the twenty-second month
anniversary of the date you commence employment and 1/15th of the total number of Restricted Shares will vest on each monthly anniversary
thereafter.
You will be eligible to participate
in any employee benefits and benefit plans that the Company, the Parent, or their respective affiliates make available to similarly situated
full-time employees from time to time, subject to the terms and conditions of such plans.
You will be eligible for paid
time off, vacation and/or paid sick leave in accordance with applicable law.
The Company requires that,
as a full-time employee, you devote your full business time, attention, skill, and efforts to the tasks and duties of your position as
assigned by the Company. If you wish to request consent to provide services (for any or no form of compensation) to any other person or
business entity while employed by the Company, please discuss that with me in advance of accepting another position.
As a condition of employment,
you will be required (1) to sign and comply with an Employee Proprietary Information and Inventions Assignment Agreement, a copy of which
is attached hereto as
Exhibit A
, which, among other things, prohibits unauthorized use or disclosure of Company proprietary information;
(2) to sign and return a satisfactory I-9 Immigration form attached hereto as
Exhibit B
and provide sufficient documentation establishing
your employment eligibility in the United States of America (enclosed is a list of acceptable INS Form I-9 documentation); and (3) to
provide satisfactory proof of your identity as required by U.S. law. A further condition of your employment is satisfactory completion
of a credit and/or criminal background check.
By signing below, you represent
that your performance of services to the Company will not violate any duty which you may have to any other person or entity (such as a
present or former employer), including obligations concerning providing services (whether or not competitive) to others, confidentiality
of proprietary information and assignment of inventions, ideas, patents or copyrights, and you agree that you will not do anything in
the performance of services hereunder that would violate any such duty.
Sungmeen Hong
_________________, 2026
Page
3
"
Cause
" shall
mean any of the following, as determined in good faith by the Board of Directors or its designee and subject to the notice and cure provisions
below: (i) your conviction of, or plea of guilty or
nolo contendere
to, any felony or any crime involving fraud, material dishonesty,
embezzlement, or your indictment for any such offense that is not dismissed within thirty (30) days; (ii) your willful misconduct, gross
negligence, insubordination, or material neglect of duties, including any continued failure to substantially perform the duties of your
position (other than due to illness, disability, or approved leave) or your failure or refusal to follow lawful written directives of
the Board of Directors consistent with your position, which failure or refusal continues for thirty (30) days after written notice from
the Company, specifying the conduct giving rise to such failure or refusal; (iii) your material breach of this letter, the Employee Proprietary
Information and Inventions Assignment Agreement, the Restricted Share Subscription Agreement, or any material fiduciary duty owed to the
Company or the Parent; (iv) any act of fraud, embezzlement, or material dishonesty by you in connection with your employment or your relationship
with the Parent or any of their respective affiliates; (v) your material violation of any written policy relating to the code of conduct,
harassment, discrimination, or workplace safety; (vi) your material unauthorized use or disclosure of confidential information or trade
secrets of the Company, the Parent or any of their respective affiliates, or your willful refusal to cooperate with any bona fide internal
or regulatory investigation; or (vii) any other conduct by you that is materially detrimental to the reputation, business, or operations
of the Company, the Parent or any of their respective affiliates.
Notwithstanding any of the
above, your employment with the Company is "at will" and may be terminated without Cause. This means that it is not for any
specified period of time and can be terminated by you or by the Company at any time, with or without advance notice, and for any or no
particular reason or cause. It also means that your job duties, title and responsibility and reporting level, work schedule, compensation
and benefits, as well as the Company's personnel policies and procedures, may be changed with prospective effect, with or without notice,
at any time in the sole discretion of the Company.
If you accept this offer,
this letter and the Employee Proprietary Information and Inventions Assignment Agreement shall constitute the complete agreement between
you and Company with respect to the terms and conditions of your employment. Any prior or contemporaneous representations (whether oral
or written) not contained in this letter or the Employee Proprietary Information and Inventions Assignment Agreement or contrary to those
contained in this letter or the Employee Proprietary Information and Inventions Assignment Agreement, that may have been made to you are
expressly cancelled and superseded by this offer.
This offer letter shall be
interpreted and construed in accordance with the laws of the State of New York without regard to any conflicts of laws principles. While
other terms and conditions of your employment may change in the future, the at-will nature of your employment may not be changed, except
in a subsequent letter or written agreement, signed by you and a duly authorized member of the Board of Directors.
(
Signature Page Follows
)
Please sign and date this letter, page 2 of the
“Notice to Employee” and the Employee Proprietary Information and Inventions Assignment Agreement via DocuSign or similar
signing software by ________________, 2026 if you wish to accept employment at the Company under the terms described above, after which
time this offer of employment will expire. If you accept our offer, we would like you to commence your employment with us as soon as practicable.
Sincerely,
Blocksight Holdings Co.
By:
Name:
Title:
Accepted by:
Sungmeen (Peter) Hong
[SIGNATURES CONTINUED ON FOLLOWING PAGE]
PARENT JOINDER AND UNCONDITIONAL GUARANTY:
Open World, Inc. (“Parent”) hereby
executes this offer letter agreement solely for purposes of this Parent Joinder and Unconditional Guaranty. Parent hereby irrevocably,
absolutely, and unconditionally guarantees to Employee the prompt, full, and complete payment and performance by the Company of all compensation,
signing bonuses, non-contingent cash installments, retention bonuses, severance, acceleration, and other obligations arising under or
relating to this offer letter agreement, as and when the same become due and payable. This guaranty is a primary obligation and a guaranty
of payment and performance, and not merely of collection, and Employee may enforce this guaranty directly against Parent without first
proceeding against the Company.
Open World, Inc.
By:
Name:
Title:
Date:
Exhibit A
Employee Proprietary Information and Inventions
Assignment Agreement
Exhibit B
INS Form I-9
Exhibit C
New York Wage Theft Prevention Act Notice to
Employee

----- ex2_1.htm -----
EX-2.1
2
ex2_1.htm
EXHIBIT 2.1
Exhibit 2.1
AGREEMENT AND
PLAN OF MERGER
AGREEMENT AND PLAN OF MERGER dated as of October
16, 2026 (this “
Agreement
”), by and among Kim & Associates Advisory Inc., Patrick Kim, Ryan Yue, and Sungmeen Hong
(each a “
Seller
” and collectively the “
Sellers
”), Blocksight Holdings Co., a Delaware corporation
(the “
Company
”), Open World, Inc., a Nevada corporation (“
Buyer
”), and OpenWorld Subco (US) Inc.,
a Delaware corporation (“
Merger Sub
”).
RECITALS
WHEREAS
, Sellers own all the issued and
outstanding shares of common stock (the “
Shares
”), of the Company;
WHEREAS
, the parties intend that Merger
Sub be merged with and into the Company, with the Company surviving that merger on the terms and subject to the conditions set forth herein
(the “
Merger
”);
WHEREAS,
pursuant to the Merger, the Company
will become a wholly owned subsidiary of Buyer following the Closing.
NOW, THEREFORE
, in consideration of the
mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto agree as follows:
ARTICLE 1
THE MERGER
Section 1.01     The Merger Mechanics.
(a)
The
Merger
. On the terms and subject to the conditions set forth in this Agreement, and in accordance with the Delaware General Corporation
Law (“
DGCL
”), at the Effective Time (as defined below), (a) Merger Sub will merge with and into the Company, and (b)
the separate corporate existence of Merger Sub will cease and the Company will continue its corporate existence under the DGCL as the
surviving corporation in the Merger (sometimes referred to herein as the “
Surviving Corporation
”).
(b)
Effective
Time
. Subject to the provisions of this Agreement, at the Closing, the Company, Buyer and Merger Sub shall cause a certificate of
merger (the “
Certificate of Merger
”) to be executed, acknowledged and filed with the Secretary of State of the State
of Delaware in accordance with the relevant provisions of the DGCL and shall make all other filings or recordings required under the DGCL.
The Merger shall become effective at such time as the Certificate of Merger has been duly filed with the Secretary of State of the State
of Delaware or at such later date or time as may be agreed by the Company and Buyer in writing and specified in the Certificate of Merger
in accordance with the DGCL (the effective time of the Merger being hereinafter referred to as the “
Effective Time
”).
(c)
Effects
of the Merger
. At the Effective Time, as a result of the Merger and without any action on the part of Buyer, Merger Sub, the Company
or any Seller:
(i)       The
Merger shall have the effects set forth herein and in the applicable provisions of the DGCL. Without limiting the generality of the foregoing,
and subject thereto, from and after the Effective Time, all property, rights, privileges, immunities, powers, franchises, licenses and
authority of the Company and Merger Sub shall vest in the Surviving Corporation, and all debts, liabilities, obligations, restrictions
and duties of each of the Company and Merger Sub shall become the debts, liabilities, obligations, restrictions and duties of the Surviving
Corporation.
(ii)       Shares
that are owned by Buyer, Merger Sub or the Company (as treasury stock or otherwise) or any of their respective direct or indirect wholly
owned Subsidiaries shall automatically be cancelled and retired and shall cease to exist, and no consideration shall be delivered in exchange
therefor.
(iii)       Each
Share issued and outstanding immediately prior to the Effective Time shall be converted into the right to receive their pro rata share
of the Purchase Price.
(iv)       Each
share of common stock of Merger Sub issued and outstanding immediately prior to the Effective Time shall be converted into and become
one newly issued, fully paid and non-assessable share of common stock of the Surviving Corporation.
(v)       All
Shares outstanding immediately prior to the Effective Time shall automatically be cancelled and retired and shall cease to exist, and
each holder of a certificate formerly representing any Shares shall cease to have any rights as a stockholder of the Company.
(vi)       The
Purchase Price paid in accordance with the terms hereof shall be deemed to have been paid or payable in full satisfaction of all rights
pertaining to the Shares formerly represented by certificates for such Shares, and from and after the Effective Time, there shall be no
further registration of transfers of Shares on the stock transfer books of the Surviving Corporation. If, after the Effective Time, certificates
representing Shares are presented to the Surviving Corporation, they shall be cancelled and exchanged for the Purchase provided for, and
in accordance with the procedures set forth in this Agreement.
(d)
Certificate
of Incorporation; By-laws
. At the Effective Time, (a) the certificate of incorporation of Merger Sub as in effect immediately prior
to the Effective Time shall be the certificate of incorporation of the Surviving Corporation until thereafter amended in accordance with
the terms thereof or as provided by applicable Law, and (b) the by-laws of Merger Sub as in effect immediately prior to the Effective
Time shall be the by-laws of the Surviving Corporation until thereafter amended in accordance with the terms thereof, the certificate
of incorporation of the Surviving Corporation or as provided by applicable law;
provided, however
, in each case, that the name
of the corporation set forth therein shall be changed to the name of the Company.
(e)
Directors
and Officers
. The directors and officers of Merger Sub, in each case, immediately prior to the Effective Time shall, from and after
the Effective Time, be the directors and officers, respectively, of the Surviving Corporation until their successors have been duly elected
or appointed and qualified or until their earlier death, resignation or removal in accordance with the certificate of incorporation and
by-laws of the Surviving Corporation.
2
Section 1.02     Purchase Price.
The aggregate
purchase price for the Shares shall be 641,924 shares of common stock of Buyer, which Sellers and Buyer acknowledge is equal to four percent
(4.0%) of Buyer’s fully diluted capitalization effective immediately following the completion of the reverse takeover transaction
(the "
Business Combination
") between Buyer (formerly known as VerifyMe, Inc.) and Open World Ltd. (rounded down to the
nearest whole share) (the “
Stock Consideration
” and the “
Purchase Price
”).
Section 1.03     Adjustment to Bonus
Payments.
(a)       After
Closing, Buyer will satisfy and pay all fees, expenses and other payables incurred prior to Closing by the Company (and by the Sellers
relating to the Company), including, without limitation, all transaction costs and expenses relating to the negotiation of this Agreement
and consummation of the transactions contemplated hereby as well as all filing/assignment fees for IP recordals (the “
Company
Expenses
”). If the Company Expenses exceed $125,000, then the Buyer will deduct any excess Company Expenses from the bonus payments
payable to Sellers pursuant to their Employment Offer Letters.
(b)       Prior
to the date hereof, Sellers have prepared and delivered to Buyer the statement attached hereto as
Exhibit A
setting forth
an itemized list of the Company Expenses (the “
Estimated Company Expenses
”). If the Estimated Company Expenses exceed
$125,000, then the Buyer will deduct the excess Company Expenses from the signing bonus payments payable to Sellers pursuant to their
Employment Offer Letters.
(c)       If
the actual Company Expenses paid by Buyer or the Company after Closing exceeds the Estimated Company Expenses, and if such actual Company
Expenses exceed $125,000, then Buyer will reduce the amount of any bonus payments payable to Sellers at six (6) months pursuant to their
Employment Offer Letters, by an amount equal to (i) the actual Company Expenses, minus (ii) the greater of the Estimated Company
Expenses or $125,000.
(d)       Any
adjustments made pursuant to this Section 1.03 shall be treated as an adjustment to the Purchase Price by the parties for Tax purposes,
unless otherwise required by Law.
Section 1.04     Withholding Taxes.
Buyer
shall be entitled to deduct and withhold from the Purchase Price all Taxes that Buyer is legally required to deduct and withhold under
any applicable provision of applicable Tax Law; and all such deducted and withheld amounts shall be treated as having been paid to the
Person on whose behalf such amounts were deducted and withheld. Buyer shall (a) use commercially reasonable efforts to provide written
notice to Sellers of any intended withholding, other than with respect to compensatory payments, at least seven (7) calendar days prior
to the Closing Date (or, if such withholding obligation arises after the Closing Date, at least seven (7) calendar days prior to the date
of the applicable payment), which notice shall identify the applicable Law provision, the amount intended to be withheld, and the basis
for such withholding; (b) cooperate in good faith with Sellers’ reasonable requests and take all commercially reasonable steps requested
by Sellers to reduce or eliminate any withholding obligation other than with respect to compensatory payments, including, at the Sellers’
written request, filing any available exemption or reduction forms, applying for a reduced withholding rate, or delaying a payment to
permit Sellers to obtain any applicable exemption certificate; (c) not withhold any amounts unless and until Buyer has received documentation
from Sellers reasonably supporting an obligation to withhold, or Buyer has, acting reasonably and in good faith, determined that withholding
is required notwithstanding the absence of such documentation; and (d) timely remit to the applicable Governmental Authority (as defined
below) all amounts deducted and withheld hereunder.
3
ARTICLE 2
CLOSING
Section 2.01     Closing.
The closing of
the Merger (the “
Closing
”) shall take place simultaneously with the execution of this Agreement on the date of this
Agreement remotely by exchange of documents and signatures (or their electronic counterparts), or at such other time or on such other
date or at such other place as Sellers and Buyer may mutually agree upon in writing (the day on which the Closing takes place being the
“
Closing Date
”).
Section 2.02     Sellers’ Closing Deliverables.
At the Closing, Sellers shall deliver to Buyer the following:
(a)       Share
certificates evidencing the Shares, free and clear of all mortgage, pledge, lien, charge, security interest, claim, community property
interest, option, equitable interest, restriction of any kind (including any restriction on use, voting, transfer, receipt of income,
or exercise of any other ownership attribute), or other encumbrance (each, an “
Encumbrance
”) (other than restrictions
on transfer arising under applicable state or federal securities laws), duly endorsed in blank or accompanied by stock powers or other
instruments of transfer duly executed in blank.
(b)       A
certificate of the Secretary of the Company certifying: (i) that attached thereto are true and complete copies of all resolutions of the
board of directors and the stockholders of the Company authorizing the execution, delivery, and performance of this Agreement, and the
other agreements, instruments, and documents required to be delivered by Sellers and/or the Company in connection with this Agreement
(collectively, the “
Transaction Documents
”) and the consummation of the Merger and the other transactions contemplated
hereby and thereby, and that such resolutions are in full force and effect; (ii) the names, titles, and signatures of the officers of
the Company authorized to sign this Agreement and the other Transaction Documents; and (iii) that attached thereto are true and complete
copies of the governing documents and capitalization table of the Company, including any amendments or restatements thereof, and that
such governing documents are in full force and effect.
(c)       A
good standing certificate for the Company and the Subsidiary from the secretary of state of Delaware and each jurisdiction where the Company
and the Subsidiary is required to be qualified, registered, or authorized to do business. The term “
Governmental Authority
”
means any federal, state, local, or foreign government or political subdivision thereof, or any agency or instrumentality of such government
or political subdivision, or any arbitrator, court, or tribunal of competent jurisdiction.
(d)       A
certificate pursuant to Treasury Regulations Section 1.1445-2(b) that the Sellers are not foreign persons within the meaning of Section
1445 of the Internal Revenue Code of 1986 (as amended, the “
Code
”).
(e)       An
Internal Revenue Service Form W-9 properly completed and signed by each Seller.
(f)       Any
required third-party consents, lien releases, novation or regulatory approvals.
4
(g)       Buyer’s
offers of employment and standard form of employee agreements and as the Buyer’s standard confidentiality, ownership of inventions
agreements and non-solicitation agreements (the “
Employment Offer Letters
”) executed by each of Patrick Kim and Sungmeen
Hong and each other employee of the Company or its Subsidiary (which will include base compensation and benefits similar to their current
offer letters with the Company).
(h)       A
listing of the Estimated Company Expenses.
(i)       A
restricted share subscription agreement, in a form to be agreed upon by Sellers and Buyer (the “
Restricted Share Subscription
Agreements
”), executed by each Seller, pursuant to which an aggregate of 275,110 shares forming part of the Stock Consideration
(the "
Restricted Stock Consideration
") will be subject to vesting restrictions (with the remaining 366,814 shares forming
part of the Stock Consideration not being subject to any vesting restrictions), with 6.6667% of the Restricted Stock Consideration issued
to each Seller vesting monthly starting on the 22 month anniversary of the Closing and continuing until the 36 month anniversary of the
Closing, subject to the continued employment of such Seller (or, in the case of Kim & Associates Advisory Inc., the continued employment
of Patrick Kim) by the Company (or by Buyer or its affiliates) as of the applicable vesting date, unless such Seller is terminated by
the Company or Buyer without Cause (as defined in the applicable Employment Offer Letter), provided, however, that the Restricted Stock
Consideration owned by Ryan Yue will not be subject to any repurchase option in favor of Buyer.
(j)       Letters
reflecting the resignation of the Sellers from the Board of Directors and as officers of the Company and the Subsidiary, effective as
of the Closing.
(k)       A
software bill of materials.
(l)       A
list of third-party license inventory
(m)       An
open-source software policy to remediate any copyleft or prohibited license issues.
(n)       Architecture
diagrams, runbooks, build scripts, deployment configurations, test coverage, roadmaps, and backlog or issue history, verified through
a joint technical acceptance checklist.
(o)       Admin
rights, repo ownership, domain transfers, access tokens.
(p)       An
amendment to the Revenue Milestone Plan in a form agreed upon by the Sellers and the Buyer (the "
Revenue Milestone Plan Amendment
")
signed by each Seller.
Section 2.03     Buyer’s Deliverables.
At the Closing, Buyer shall deliver the following to Sellers:
(a)       Evidence
of the issuance of the Stock Consideration to the Sellers in electronic form, allocated to the Sellers in accordance with
Schedule 1
.
(b)       A
certificate of the Secretary of Buyer certifying: (i) that attached thereto are true and complete copies of all resolutions of the board
of directors of Buyer authorizing the execution, delivery, and performance of this Agreement and the Transaction Documents to which it
is a party and the consummation of the transactions contemplated hereby and thereby, and that such resolutions are in full force and effect;
and (ii) the names, titles, and signatures of the officers of Buyer authorized to sign this Agreement and the other Transaction Documents
to which it is a party.
5
(c)       The
Employment Offer Letters executed by Buyer or one of its subsidiaries.
(d)       The
Restricted Share Subscription Agreements executed by Buyer.
(e)       The
Payoff and Satisfaction Acknowledgment, executed by Open World Ltd. (as Lender), confirming that all amounts outstanding under the Loan
Deed dated January 16, 2026 between Open World Ltd. and the Company, as amended by Amending Agreement No. 1 dated July 9, 2026, including
all principal and accrued interest, are deemed repaid, discharged and satisfied in full as of the Closing.
(f)       An
Officer’s Certificate of Buyer, dated as of the Closing Date, certifying that Schedule 2 is true, correct, and complete in all respects
and setting forth the exact fully diluted share denominator and the calculation confirming that the Stock Consideration equals four percent
(4.0%) of Buyer’s fully diluted capitalization effective immediately following completion of the Business Combination, calculated
in accordance with Schedule 2 and rounded down to the nearest whole share).
(g)       The
Revenue Milestone Plan Amendment signed by Buyer.
ARTICLE 3
REPRESENTATIONS AND WARRANTIES OF SELLERS
Except as set forth in the correspondingly numbered
Section of the Disclosure Schedules attached hereto, Sellers represent and warrant to Buyer that the statements contained in this ARTICLE
III are true and correct as of the date hereof. For purposes of this ARTICLE III, “
Sellers’ knowledge
,” “
knowledge
of Sellers
,” and any similar phrases shall mean the actual or constructive knowledge of Seller, after due inquiry. When used
in this Article III (except Section 3.01 and Section 3.04), the term “
Company
” shall refer collectively to the Company
and the Subsidiary.
Section 3.01     Subsidiaries.
Except for
Blocksight LLC (the “
Subsidiary
”), which is a wholly owned subsidiary of the Company, the Company does not own, or
have any capital stock or other equity, ownership or profit sharing interests in any other Person, or the right or obligation to acquire
any capital stock or other equity, ownership or profit sharing interests in any other Person.
Section 3.02     Organization of the Company
and Authority of Sellers.
Company is a corporation duly organized, validly existing, and in good standing under the Laws (as defined
in Section 3.05) of the state of Delaware. Sellers have full capacity to enter into this Agreement and the other Transaction Documents
to which the Sellers are a party, to carry out their obligations hereunder and thereunder, and to consummate the transactions contemplated
hereby and thereby. The execution and delivery by the Sellers of this Agreement and any other Transaction Document to which Sellers is
a party, the performance by Sellers of their obligations hereunder and thereunder, and the consummation by Sellers of the transactions
contemplated hereby and thereby have been duly authorized by all requisite corporate action on the part of Company. This Agreement and
each Transaction Document to which the Sellers are a party constitute legal, valid, and binding obligations of the Sellers and are enforceable
against Sellers in accordance with their respective terms.
6
Section 3.03     Organization, Authority, and
Qualification of the Company.
Company is a corporation duly organized, validly existing, and in good standing under the Laws of the
state of Delaware and has full corporate power and authority to own, operate, or lease the properties and assets now owned, operated,
or leased by it and to carry on its business as it has been and is currently conducted. Section 3.03 of the Disclosure Schedules sets
forth each jurisdiction in which the Company or its Subsidiary is licensed or qualified to do business, and the Company is duly licensed
or qualified to do business and is in good standing in each jurisdiction in which the properties owned or leased by it or the operation
of its business as currently conducted makes such licensing or qualification necessary.
Section 3.04     Capitalization; Title
to Shares.
(a)       The
authorized shares of the Company consist of 100,000,000 shares of common stock, $0.0001 par value, of which 50,989,819 shares are issued
and outstanding and constitute the Shares. All of the Shares have been duly authorized, are validly issued, fully paid and nonassessable,
and are owned of record and beneficially by the Sellers, free and clear of all Encumbrances. Upon the transfer, assignment, and delivery
of the Shares and payment therefor in accordance with the terms of this Agreement, Buyer shall own all of the Shares, free and clear of
all Encumbrances.
(b)       All
of the Shares were issued in compliance with applicable Laws. None of the Shares were issued in violation of any agreement or commitment
to which Company or the Sellers are a party or subject to or in violation of any preemptive or similar rights of any individual, corporation,
partnership, joint venture, limited liability company, Governmental Authority, unincorporated organization, trust, association, or other
entity (each, a “
Person
”).
(c)       There
are no outstanding or authorized options, warrants, convertible securities, stock appreciation, phantom stock, profit participation, or
other rights, agreements, or commitments relating to the shares of the Company or obligating the Company to issue or sell any shares of,
or any other interest in, the Company. There are no voting trusts, stockholder agreements, proxies, or other agreements in effect with
respect to the voting or transfer of any of the Shares.
Section 3.05     No Conflicts or Consents.
The
execution, delivery, and performance by Sellers of this Agreement and the other Transaction Documents to which they are a party, and the
consummation of the transactions contemplated hereby and thereby, do not and will not: (a) violate or conflict with any provision of the
certificate of incorporation, by-laws, or other governing documents of the Company; (b) violate or conflict with any provision of any
statute, law, ordinance, regulation, rule, code, treaty, or other requirement of any Governmental Authority (collectively, “
Law
”)
or any order, writ, judgment, injunction, decree, determination, penalty, or award entered by or with any Governmental Authority (“
Governmental
Order
”) applicable to the Company; (c) require the consent from, notice to, or filing with or other action by any Person or
governmental authority, or require any Permit, license, or Governmental Order; (d) violate or conflict with, result in the acceleration
of, or create in any party the right to accelerate, terminate, or modify any contract, lease, deed, mortgage, license, instrument, note,
indenture, joint venture, or any other agreement, commitment, or legally binding arrangement, whether written or oral (collectively, “
Contracts
”),
to which the Company is a party or by which the Company is bound or to which any of their respective properties and assets are subject;
or (e) result in the creation or imposition of any Encumbrance on any properties or assets of the Company.
7
Section 3.06     Financial Statements.
Complete
copies of the Company’s unaudited financial statements consisting of the balance sheet of the Company as of December 31, 2025 and
the related statements of income and retained earnings, stockholders’ equity, and cash flow for the years then ended (the “
Financial
Statements
”) have been delivered to Buyer. The Financial Statements have been prepared in accordance with generally accepted
accounting principles in effect in the United States from time to time (“
GAAP
”), applied on a consistent basis throughout
the period involved. The Financial Statements are based on the books and records of the Company and fairly present in all material respects
the financial condition of the Company as of the respective dates they were prepared and the results of the operations of the Company
for the periods indicated. The balance sheet of the Company as of December 31, 2025 is referred to herein as the “
Balance Sheet
”
and the date thereof as the “
Balance Sheet Date
”.
Section 3.07    Undisclosed Liabilities.
The
Company has no liabilities, obligations, or commitments of any nature whatsoever, whether asserted, known, absolute, accrued, matured,
or otherwise (collectively, “
Liabilities
”), except: (a) those which are adequately reflected or reserved against in
the Balance Sheet as of the Balance Sheet Date; and (b) those which have been incurred in the ordinary course of business consistent with
past practice since the Balance Sheet Date and which are not, individually or in the aggregate, material in amount.
Section 3.08    Absence of Certain Changes,
Events, and Conditions.
Since the Balance Sheet Date, the Company has been operating in the ordinary course of business consistent
with past practice and there has not been, with respect to the Company, any change, event, condition, or development that is, or could
reasonably be expected to be, individually or in the aggregate, materially adverse to the business, results of operations, condition (financial
or otherwise), or assets of the Company.
Section 3.09    Material Contracts.
(a)       Section
3.09(a) of the Disclosure Schedules lists each Contract that is material to the Company (such Contracts, together with all Contracts concerning
the occupancy, management, or operation of any Real Property (as defined in Section 3.10(a)), being “
Material Contracts
”),
including the following:
(i)       each
Contract of the Company involving aggregate consideration in excess of $5,000 and which, in each case, cannot be cancelled by the Company
without penalty or without more than 90 days’ notice;
(ii)       all
Contracts that provide for the indemnification by the Company of any Person or the assumption of any Tax (as defined in Section 3.18(a)),
environmental, or other Liability of any Person;
(iii)       all
Contracts relating to Intellectual Property (as defined in Section 3.11(a)), including all licenses, sublicenses, settlements, coexistence
agreements, covenants not to sue, and permissions;
(iv)       except
for Contracts relating to trade payables, all Contracts relating to indebtedness (including, without limitation, guarantees) of the Company;
and
(v)       all
Contracts that limit or purport to limit the ability of the Company to compete in any line of business or with any Person or in any geographic
area or during any period of time.
8
(b)       Each
Material Contract is valid and binding on the Company in accordance with its terms and is in full force and effect. None of the Company
or, to the Sellers’ knowledge, any other party thereto is in breach of or default under (or is alleged to be in breach of or default
under) in any material respect or has provided or received any notice of any intention to terminate, any Material Contract. Complete and
correct copies of each Material Contract (including all modifications, amendments, and supplements thereto and waivers thereunder) have
been made available to Buyer.
Section 3.10    Real Property; Title
to Assets.
(a)       Section
3.10(a) of the Disclosure Schedules lists all real property in which the Company has an ownership or leasehold (or subleasehold) interest
(together with all buildings, structures, and improvements located thereon, the “
Real Property
”), including: (i) the
street address of each parcel of Real Property; (ii) for Real Property that is leased or subleased by the Company, the landlord under
the lease, the rental amount currently being paid, and the expiration of the term of such lease or sublease, and any termination or renewal
rights of any party to the lease; and (iii) the current use of each parcel of Real Property. Sellers delivered or made available to Buyer
true, correct, and complete copies of all Contracts, title insurance policies, and surveys relating to the Real Property.
(b)       The
Company has good and valid (and, in the case of owned Real Property, good and indefeasible fee simple) title to, or a valid leasehold
interest in, all Real Property and personal property and other assets reflected in the Financial Statements or acquired after the Balance
Sheet Date (other than properties and assets sold or otherwise disposed of in the ordinary course of business consistent with past practice
since the Balance Sheet Date). All Real Property and such personal property and other assets (including leasehold interests) are free
and clear of Encumbrances except for those items set forth in Section 3.10(b) of the Disclosure Schedules.
(c)       The
Company is not a sublessor or grantor under any sublease or other instrument granting to any other Person any right to possess, lease,
occupy, or use any leased Real Property. The use of the Real Property in the conduct of the Company’s business does not violate
in any material respect any Law, covenant, condition, restriction, easement, license, permit, or Contract and no material improvements
constituting a part of the Real Property encroach on real property owned or leased by a Person other than the Company.
Section 3.11    Intellectual Property;
Data Privacy.
(a)       The
term “
Intellectual Property
” means any and all of the following in any jurisdiction throughout the world: (i) issued
patents and patent applications; (ii) trademarks, service marks, trade names, and other similar indicia of source or origin, together
with the goodwill connected with the use of and symbolized by, and all registrations, applications for registration, and renewals of,
any of the foregoing; (iii) copyrights, including all applications and registrations; (iv) trade secrets, know-how, inventions (whether
or not patentable), technology, and other confidential and proprietary information and all rights therein; (v) internet domain names,
websites, and social media accounts and pages; and (vi) other intellectual or industrial property and related proprietary rights, interests,
and protections including but not limited to all software, models, algorithms, data, datasets, annotations/labels, schemas, pipelines,
weights, prompts, SDKs/APIs, test suites, documentation, domains/handles, brands, build/CI, repos and issue trackers.
9
(b)       Section
3.11(b) of the Disclosure Schedules lists all issued patents, registered trademarks, domain names and copyrights, and pending applications
for any of the foregoing and all material unregistered Intellectual Property that are owned by the Company (the “
Company IP Registrations
”).
The Company owns or has the valid and enforceable right to use all Intellectual Property used or held for use in or necessary for the
conduct of the Company’s business as currently conducted or as proposed to be conducted (the “
Company Intellectual Property
”),
free and clear of all Encumbrances. All of the Company Intellectual Property is valid and enforceable, and all Company IP Registrations
are subsisting and in full force and effect. The Company has taken all necessary steps to maintain and enforce the Company Intellectual
Property.
(c)       The
conduct of the Company’s business as currently and formerly conducted and as proposed to be conducted has not infringed, misappropriated,
or otherwise violated and will not infringe, misappropriate, or otherwise violate the Intellectual Property or other rights of any Person.
The Company has not received any notices alleging or threatening that the Company’s business or Company Intellectual Property infringes,
misappropriates, or otherwise violates the Intellectual Property or other rights of any Person. No Person has infringed, misappropriated,
or otherwise violated any Company Intellectual Property.
(d)       The
Company has not embedded, used, linked or distributed any open source, software, technologies or other materials that are licensed or
distributed under any license arrangement or other distribution model qualifying for the “Open Source” definition promulgated
by the Open Source Initiative at www.opensource.org/osd or any other public domain or “community” (or similar) materials (collectively
“
Open Source Software
”) in connection with any of its products or services or proprietary materials in any manner that
requires, or purports to require, (i) any material software code owned or authored by or on behalf of the Company (“
Company
Code
”) to be disclosed or distributed in source code form or be licensed for the purpose of making derivative works; (ii) any
restriction on the consideration to be charged for the distribution of any such Company Code; (iii) the grant to any third Person
of any rights or immunities under material Company Intellectual Property; or (iv) any other material limitation, restriction or condition
on the right of the Company with respect to its use or distribution of any material Company Intellectual Property (other than attribution,
warranty and liability disclaimer, and notice delivery conditions). The Company is in compliance with all licenses for Open Source Software
that it embeds, links to, uses or distributes. The Company has made available to the Buyer an accurate and complete list of all items
of Open Source Software that it has embedded, linked, or distributed in connection with any Company Code or any of its products or services
or proprietary materials (whether generally available or in development), including the name of each such item and the license(s) applicable
to each such item.
(e)       In
connection with the collection, storage, use, access, disclosure and/or other processing of any information that constitutes “personal
information,” “personal data,” “personally identifiable information” or analogous term as defined in applicable
laws (collectively, “
Personal Information
”), by or on behalf of the Company, to the Sellers’ knowledge, the Company
is and has been in compliance in all material respects with the following (collectively, “
Privacy Requirements
”): (i)
all applicable laws governing privacy or data security in all relevant jurisdictions relating to data loss, data theft, and security breach
notification obligations, telephone or text message communications, artificial intelligence and automated decision-making, or marketing
by email or other channels, (ii) the Company’s published privacy policies, and (iii) the privacy or data security requirements of
any contracts, codes of conduct, or industry standards by which the Company is legally bound. The Company maintains and has maintained
reasonable physical, technical, and administrative security measures and policies designed to protect all Personal Information owned,
stored, used, maintained or controlled by or on behalf of the Company from and against unlawful, accidental or unauthorized access, destruction,
loss, use, modification, disclosure, and/or other processing. To the Company’s knowledge, there has been no material unlawful, accidental
or unauthorized access to, or destruction, loss, use, modification, disclosure, or other processing of, Personal Information owned, stored,
used, maintained or controlled by or on behalf of the Company. All data collected by the Company will be freely transferrable to the Buyer
after Closing without any legal or contractual restrictions.
10
Section 3.12    Material Customers
and Suppliers.
(a)       Section
3.12(a) of the Disclosure Schedules sets forth each customer who has paid aggregate consideration to the Company for goods or services
rendered in an amount greater than or equal to $5,000 for the most recent fiscal year (collectively, the “
Material Customers
”).
The Company has not received any notice, and has no reason to believe, that any of its Material Customers has ceased, or intends to cease
after the Closing, to purchase or use its goods or services or to otherwise terminate or materially reduce its relationship with the Company.
(b)       Section
3.12(b) of the Disclosure Schedules sets forth each supplier to whom the Company has paid consideration for goods or services rendered
in an amount greater than or equal to $5,000 for the most recent fiscal year (collectively, the “
Material Suppliers
”).
The Company has not received any notice, and has no reason to believe, that any of its Material Suppliers has ceased, or intends to cease,
to supply goods or services to the Company or to otherwise terminate or materially reduce its relationship with the Company.
Section 3.13    Insurance.
Section 3.13
of the Disclosure Schedules sets forth a true and complete list of all current policies or binders of insurance maintained by Company
or its Affiliates (including the Company) and relating to the assets, business, operations, employees, officers, and directors of the
Company (collectively, the “
Insurance Policies
”). Such Insurance Policies: (a) are in full force and effect; (b) are
valid and binding in accordance with their terms; (c) are provided by carriers who are financially solvent; and (d) have not been subject
to any lapse in coverage. Neither Company nor any of its Affiliates (including the Company) has received any written notice of cancellation
of, premium increase with respect to, or alteration of coverage under, any of such Insurance Policies. All premiums due on such Insurance
Policies have been paid. None of Company or any of its Affiliates (including the Company) is in default under, or has otherwise failed
to comply with, in any material respect, any provision contained in any Insurance Policy. The Insurance Policies are of the type and in
the amounts customarily carried by Persons conducting a business similar to the Company and are sufficient for compliance with all applicable
Laws and Contracts to which the Company is a party or by which it is bound. For purposes of this Agreement: (x) “
Affiliate
”
of a Person means any other Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is
under common control with, such Person; and (y) the term “
control
” (including the terms “controlled by”
and “under common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction
of the management and policies of a Person, whether through the ownership of voting securities or other ownership interests, by contract,
or otherwise.
Section 3.14    Legal Proceedings;
Governmental Orders.
(a)       There
are no claims, actions, causes of action, demands, lawsuits, arbitrations, inquiries, audits, notices of violation, proceedings, litigation,
citations, summons, subpoenas, or investigations of any nature, whether at law or in equity (collectively, “
Actions
”)
pending or, to Sellers’ knowledge, threatened against or by the Company or any Affiliate of the Company: (i) relating to or affecting
the Company or any of the Company’s properties or assets; or (ii) that challenge or seek to prevent, enjoin, or otherwise delay
the transactions contemplated by this Agreement. No event has occurred or circumstances exist that may give rise to, or serve as a basis
for, any such Action.
11
(b)       There
are no outstanding, and the Company is in compliance with all, Governmental Orders against, relating to, or affecting the Company or any
of its properties or assets.
Section 3.15    Compliance with Laws;
Permits.
(a)       The
Company has complied, and is now complying, with all applicable Laws, including privacy and export laws applicable to it or its business,
properties, or assets.
(b)       All
permits, licenses, franchises, approvals, registrations, certificates, variances, and similar rights obtained, or required to be obtained,
from Governmental Authorities (collectively, “
Permits
”) in order for the Company to conduct its business, including,
without limitation, owning or operating any of the Real Property, have been obtained and are valid and in full force and effect. Section
3.15(b) of the Disclosure Schedules lists all current Permits issued to the Company and no event has occurred that would reasonably be
expected to result in the revocation or lapse of any such Permit.
Section 3.16    [Reserved
.]
Section 3.17    Employment Matters.
(a)       Section
3.17(a) of the Disclosure Schedules lists: (i) all employees, independent contractors, and consultants of the Company; and (ii) for each
individual described in clause (i), (A) the individual’s title or position, hire date, and compensation, (B) any Contracts entered
into between the Company and such individual, and (C) the fringe benefits provided to each such individual. All compensation payable to
all employees, independent contractors, or consultants of the Company for services performed on or prior to the Closing Date have been
paid in full.
(b)       The
Company is not, and has not been, a party to or bound by any collective bargaining agreement or other Contract with a union or similar
labor organization (collectively, “
Union
”), and no Union has represented or purported to represent any employee of
the Company. There has never been, nor has there been any threat of, any strike, work stoppage, slowdown, picketing, or other similar
labor disruption or dispute affecting the Company or any of its employees.
(c)       The
Company is and has been in compliance with: (i) all applicable employment Laws and agreements
regarding
hiring, employment, termination of employment, plant closings and mass layoffs, employment discrimination, harassment, retaliation, and
reasonable accommodation, leaves of absence, terms and conditions of employment, wages and hours of work, employee classification, employee
health and safety, engagement and classification of independent contractors, payroll taxes, and immigration with respect to all employees,
independent contractors, and contingent workers
; and (ii)
all applicable Laws relating to
the relations between it and any labor organization, trade union, work council, or other body representing employees of the Company
.
12
Section 3.18    Taxes.
(a)       All
returns, declarations, reports, information returns and statements, and other documents relating to Taxes (including amended returns and
claims for refund) (collectively, “
Tax Returns
”) required to be filed by the Company on or before the Closing Date
have been timely filed. Such Tax Returns are true, correct, and complete in all respects. All Taxes due and owed by the Company (whether
or not shown on any Tax Return) have been timely paid. No extensions or waivers of statutes of limitations have been given or requested
with respect to any Taxes of the Company. Sellers have delivered to Buyer copies of all Tax Returns and examination reports of the Company
and statements of deficiencies assessed against, or agreed to by, the Company, for all Tax periods ending after 2025. The term “
Taxes
”
means all federal, state, local, foreign, and other income, gross receipts, sales, use, production, ad valorem, transfer, franchise, registration,
profits, license, lease, service, service use, withholding, payroll, employment, unemployment, estimated, excise, severance, environmental,
stamp, occupation, premium, property (real or personal), real property gains, windfall profits, customs, duties, or other taxes, fees,
assessments, or charges of any kind whatsoever, together with any interest, additions, or penalties with respect thereto.
(b)       The
Company has not been a member of an affiliated, combined, consolidated, or unitary Tax group for Tax purposes. The Company has no Liability
for Taxes of any Person (other than the Company) under Treasury Regulations Section 1.1502-6 (or any corresponding provision of state,
local, or foreign Law), as transferee or successor, by contract, or otherwise.
(c)       There
are no liens for Taxes (other than for current Taxes not yet due and payable) upon the assets of the Company.
(d)       Company
is not a “foreign person” as that term is used in Treasury Regulations Section 1.1445-2. The Company is not, nor has it been,
a United States real property holding corporation (as defined in Section 897(c)(2) of the Code) during the applicable period in Section
897(c)(1)(a) of the Code.
Section 3.19    Books and Records.
The minute
books and share record and transfer books of the Company, all of which are in the possession of the Company and have been made available
to Buyer, are complete and correct.
Section 3.20    Bank Accounts. T
he Disclosure
Schedules sets forth the names of all banks, trust companies, savings and loan associations and other financial institutions at which
the Company maintains any deposit or checking account, the account numbers of all such accounts and the names of all persons authorized
to draw thereon or make withdrawals therefrom.
Section 3.21    Related Party Transactions.
There are no Contracts or other arrangements involving the Company in which Company, its Affiliates, or any of its or their respective
directors, officers, or employees or any immediate family members thereof is a party, has a financial interest, or otherwise owns or leases
any material asset, property, or right which is used by the Company.
Section 3.22    Representations Regarding
Stock Consideration.
(a)       This
Agreement is made with each Seller in reliance upon each Seller’s representation to the Buyer, which by each Seller’s execution
of this Agreement, each Seller hereby confirms, that the Stock Consideration to be acquired by each Seller will be acquired for investment
for each Seller’s own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof,
and that each Seller has no present intention of selling, granting any participation in, or otherwise distributing the same. By executing
this Agreement, each Seller further represents that each Seller does not presently have any contract, undertaking, agreement or arrangement
with any Person to sell, transfer or grant participations to such Person or to any third Person, with respect to any of the Stock Consideration.
13
(b)       Each
Seller has had an opportunity to discuss the Buyer’s business, management, financial affairs and the terms and conditions of the
acquisition of the Stock Consideration with the Buyer’s management and has had an opportunity to review the Buyer’s facilities,
and each Seller believes he has received all the information that he considers necessary or appropriate for deciding whether to enter
into this Agreement and perform the obligations set forth herein. Each Seller has had the opportunity to consult with his, her, or its
financial, legal and tax advisors regarding the transactions contemplated by this Agreement and believes the Purchase Price represents
full and fair value for the Shares.
(c)       Each
Seller: (i) is a sophisticated individual with knowledge and experience in financial and business matters and is familiar with transactions
similar to those contemplated by this Agreement such that Seller is capable of evaluating the merits and risks of Seller’s sale
of the Shares and Seller’s acquisition of the Stock Consideration hereunder; (ii) has adequate information concerning the business
and financial condition of the Buyer to make an informed decision regarding the acquisition of the Stock Consideration; and (iii) has
independently and without reliance upon Buyer or upon any statement, projection, estimate, forecast, data room materials, summaries, diligence
presentations, or other information of any kind, oral or written, express or implied, of Buyer or any of its affiliates or representatives
(except in respect of the reliance on the express representations and warranties made by Buyer below), and based on such information and
the advice of such advisors as Seller has deemed appropriate, made Seller’s own analysis and decision to enter into this Agreement,
sell the Shares, and acquire the Stock Consideration. Without limiting the generality of the foregoing, each Seller has independently
and without reliance upon Buyer or upon any statement, projection, estimate, forecast, data room materials, summaries, diligence presentations,
or other information of any kind, oral or written, express or implied, of Buyer or any of its affiliates or representatives (except in
respect of the reliance on the express representations and warranties made by Buyer below) and based on such information and the advice
of such Tax advisors as Seller has deemed appropriate, made Seller’s own analysis regarding the Intended Tax Treatment, including
the application of Section 367 of the Code. Each Seller acknowledges that neither Buyer, nor its affiliates or agents, is acting as a
fiduciary or financial or investment adviser to Seller, and that neither Buyer, nor its affiliates or agents have given Seller any investment
advice, opinion or other information on whether the sale of the Shares or acquisition of the Stock Consideration is prudent or advisable.
Each Seller acknowledges that: (x) Buyer, or it affiliates or agents currently may have, and later may come into possession of, information
with respect to the Buyer that is not known to Seller and that may be material to a decision to sell the Shares or acquire the Stock Consideration
(“Seller Excluded Information”), (y) Seller has determined to sell the Shares and acquire the Stock Consideration notwithstanding
Seller’s lack of knowledge of the Seller Excluded Information, and (z) neither Buyer, nor any of its affiliates or agents shall
have any liability to Seller whether under applicable securities laws or otherwise, with respect to the nondisclosure of any Seller Excluded
Information in connection with the sale of the Shares or the acquisition of the Stock Consideration and the transactions contemplated
by this Agreement, and Seller hereby waives any claims it may have, or which may arise in the future, with respect thereto. Each Seller
understands that, and its affiliates and agents, will rely on the accuracy and truth of the foregoing representations, and Seller hereby
consents to such reliance.
14
(d)       Each
Seller understands that the Stock Consideration have not been, and will not be, registered under the under the Securities Act of 1933,
as amended (the “Securities Act”), by reason of a specific exemption from the registration provisions of the Securities Act
which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of each Seller’s representations
as expressed herein. Each Seller understands that the Stock Consideration are “restricted securities” under applicable U.S.
federal and state securities laws and that, pursuant to these laws, each Seller must hold the Stock Consideration indefinitely unless
they are registered with the Securities and Exchange Commission and qualified by state authorities, or an exemption from such registration
and qualification requirements is available. Each Seller acknowledges that the Buyer has no obligation to register or qualify the Stock
Consideration, or the Common Stock into which it may be converted, for resale. Each Seller further acknowledges that if an exemption from
registration or qualification is available, it may be conditioned on various requirements including, but not limited to, the time and
manner of sale, the holding period for the Stock Consideration, and on requirements relating to the Buyer which are outside of each Seller’s
control, and which the Buyer is under no obligation and may not be able to satisfy; provided, that Buyer covenants and agrees that (i)
it shall timely file all reports required to be filed by it under the Securities Exchange Act of 1934, as amended, to ensure that the
current public information requirements of Rule 144(c) remain satisfied at all times; (ii) upon the expiration of the six (6) month holding
period under Rule 144 following the Closing Date, Buyer shall, at its sole expense and within two (2) business days of request by any
Seller, cause its legal counsel to issue any required legal opinion and instruct its transfer agent to remove all restrictive legends
from certificates or book-entry records representing the Stock Consideration; and (iii) if Rule 144 is unavailable for the resale of the
Stock Consideration following such six (6) month period, Buyer shall promptly file and maintain an effective resale registration statement
covering all shares of Stock Consideration until all such shares are freely tradeable.
(e)       Each
Seller understands that the Stock Consideration may be notated with one or more legends required by applicable Law or by the Buyer’s
shareholders agreements.
Section 3.23    Brokers.
No broker, finder,
or investment banker is entitled to any brokerage, finder’s, or other fee or commission in connection with the transactions contemplated
by this Agreement or any other Transaction Document based upon arrangements made by or on behalf of the Sellers.
Section 3.24    Full Disclosure.
No representation
or warranty by Sellers in this Agreement and no statement contained in the Disclosure Schedules to this Agreement or any certificate or
other document furnished or to be furnished to Buyer pursuant to this Agreement contains any untrue statement of a material fact, or omits
to state a material fact necessary to make the statements contained therein, in light of the circumstances in which they are made, not
misleading.
Section 3.25    Acknowledgment; Release
.
Each Seller acknowledges that such Seller’s pro rata share of the Stock Consideration, as set forth on Schedule 1, constitutes the
consideration payable to such Seller for such Seller’s Shares. Effective as of the Closing, each Seller releases the Company, Buyer,
each other Seller, and their respective Affiliates and Representatives from claims arising solely from such Seller’s pre-Closing
ownership of the Shares, other than claims or rights arising under any Transaction Document, claims for payment or performance of any
obligation contemplated by the transactions, and claims based on Fraud, intentional misrepresentation, willful misconduct, breach of fiduciary
duty, securities-law violations, or any matter that may not lawfully be waived.
15
ARTICLE 4
REPRESENTATIONS AND WARRANTIES OF BUYER
Buyer represents and warrants to Sellers that the
statements contained in this Article IV are true and correct as of the date hereof. For purposes of this Article IV, “
Buyer’s
knowledge
,” “
knowledge of Buyer
,” and any similar phrases shall mean the actual or constructive knowledge
of any director or officer of Buyer, after due inquiry.
Section 4.01    Organization and Authority of
Buyer.
Buyer is a corporation duly organized, validly existing, and in good standing under the Laws of the State of Nevada. Buyer
has full corporate power and authority to enter into this Agreement and the other Transaction Documents to which Buyer is a party, to
carry out its obligations hereunder and thereunder, and to consummate the transactions contemplated hereby and thereby. The execution
and delivery by Buyer of this Agreement and any other Transaction Document to which Buyer is a party, the performance by Buyer of its
obligations hereunder and thereunder, and the consummation by Buyer of the transactions contemplated hereby and thereby (including the
issuance of the Stock Consideration) have been duly authorized by all requisite corporate action on the part of Buyer. This Agreement
and each Transaction Document constitute legal, valid, and binding obligations of Buyer enforceable against Buyer in accordance with their
respective terms.
Section 4.02    No Conflicts; Consents.
The
execution, delivery, and performance by Buyer of this Agreement and the other Transaction Documents to which it is a party, and the consummation
of the transactions contemplated hereby and thereby, do not and will not: (a) violate or conflict with any provision of the certificate
of incorporation, by-laws, or other governing documents of Buyer; (b) violate or conflict with any provision of any Law or Governmental
Order applicable to Buyer; or (c) require the consent, notice, declaration, or filing with or other action by any Person or require any
Permit, license, or Governmental Order.
Section 4.03    Investment Purpose.
Buyer
is acquiring the Shares solely for its own account for investment purposes and not with a view to, or for offer or sale in connection
with, any distribution thereof or any other security related thereto within the meaning of the Securities Act. Buyer acknowledges that
Sellers have not registered the offer and sale of the Shares under the Securities Act or any state securities laws, and that the Shares
may not be pledged, transferred, sold, offered for sale, hypothecated, or otherwise disposed of except pursuant to the registration provisions
of the Securities Act or pursuant to an applicable exemption therefrom and subject to state securities laws and regulations, as applicable.
Section 4.04    Brokers.
No broker, finder,
or investment banker is entitled to any brokerage, finder’s, or other fee or commission in connection with the transactions contemplated
by this Agreement or any other Transaction Document based upon arrangements made by or on behalf of Buyer.
Section 4.05    Stock Consideration.
The
Stock Consideration has been duly authorized, and when issued and delivered in accordance with the terms set forth in this Agreement,
will be validly issued, fully paid and nonassessable and free of restrictions on transfer other than restrictions on transfer under the
Transaction Documents, applicable state and federal securities laws and the rules of any applicable stock exchange, and liens or encumbrances
created by or imposed by a Seller. Assuming the accuracy of the representations of the Sellers above, the Stock Consideration will be
issued in compliance with all applicable federal and state securities laws.
Section 4.06    Capitalization.
(a)       The
authorized shares of the Buyer consist of 675,000,000 shares of common stock, par value $0.001 per share, of which 13,454,250 shares of
common stock are issued and outstanding as of the date of this Agreement. All of the Buyer’s outstanding shares have been duly authorized,
are validly issued, fully paid and nonassessable.
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(b)       All
of the Shares were issued in compliance with applicable Laws. None of the Shares were issued in violation of any agreement or commitment
to which Company or the Sellers are a party or subject to or in violation of any preemptive or similar rights of any individual, corporation,
partnership, joint venture, limited liability company, Governmental Authority, unincorporated organization, trust, association, or other
entity (each, a “
Person
”).
(c)       Schedule
2 sets forth a true, correct and complete statement of the fully diluted capitalization of Buyer effective immediately following the completion
of the Business Combination, including (i) all shares of common stock of Buyer issued and outstanding, (ii) all shares of common stock
of Buyer issuable upon the exercise, conversion or settlement of all outstanding options, warrants, restricted stock units, convertible
securities and other rights to acquire shares of Buyer, and (iii) all shares of common stock of Buyer reserved for issuance under any
equity incentive plan of Buyer.
Section 4.07    Accuracy of Information
.
To the knowledge of Buyer, no representation or warranty by Buyer in this Agreement, and no document, certificate, or written statement
furnished or to be furnished to Sellers by or on behalf of Buyer in connection with this Agreement, contains or will contain any untrue
statement of a material fact or omits to state a material fact necessary to make the statements contained therein, in light of the circumstances
under which they were made, not misleading. Buyer makes no representation or warranty regarding the completeness of disclosures beyond
those expressly set forth in this Agreement.
ARTICLE 5
COVENANTS
Section 5.01    Confidentiality.
From and
after the Closing, Sellers and the Company shall cause their Affiliates and their directors, officers, employees, consultants, counsel,
accountants, and other agents (collectively, “
Representatives
”) to, hold in confidence any and all information, in
any form, concerning the Company, except to the extent that Sellers can show that such information: (a) is generally available to and
known by the public through no fault of Sellers or their respective Representatives; or (b) is lawfully acquired by Sellers or their respective
Representatives from and after the Closing from sources which are not prohibited from disclosing such information by any obligation. If
Sellers or any of their respective Representatives are compelled to disclose any information by Governmental Order or Law, Sellers shall
promptly notify Buyer in writing and shall disclose only that portion of such information which is legally required to be disclosed;
provided,
however
, Sellers shall use reasonable best efforts to obtain as promptly as possible an appropriate protective order or other reasonable
assurance that confidential treatment will be accorded such information.
Section 5.02    Post-Closing Covenants.
For
ninety (90) days after Closing, each Seller who remains employed by Buyer or the Surviving Corporation shall, in the course of and subject
to the terms of such employment, provide reasonable transition assistance concerning third-party agreements and known pre-Closing security
matters, in each case upon reasonable written request, during normal business hours, and only to the extent within such Seller’s
knowledge and control. No Seller shall be required to incur unreimbursed out-of-pocket costs, provide services after termination of employment,
establish or maintain Buyer’s or the Surviving Corporation’s security-control environment, or remediate matters arising from
post-Closing changes, integrations, personnel, systems, or operations. Buyer shall retain sole responsibility and control for all post-Closing
security, compliance, development, and remediation programs.
Section 5.03    Subsidiary Governance; Technical
Product Owner.
Following the Closing, Buyer will appoint a representative (the “
Technical Product Owner
”) to the
Company who will review and approve monthly product metrics, quarterly roadmaps, operating budgets and any major contracts that the Company
may enter into.
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Section 5.04    Further Assurances.
Following
the Closing, each of the parties hereto shall, and shall cause their respective Affiliates to, execute and deliver such additional documents
and instruments and take such further actions as may be reasonably required to carry out the provisions hereof and give effect to the
transactions contemplated by this Agreement and the other Transaction Documents.
ARTICLE 6
TAX MATTERS
Section 6.01    Tax Covenants.
(a)       Without
the prior written consent of Buyer, Sellers shall not, to the extent it may affect or relate to the Company: (i) make, change, or rescind
any Tax election; (ii) amend any Tax Return; (iii) take any position on any Tax Return; or (iv) take any action, omit to take any action,
or enter into any other transaction that would have the effect of increasing the Tax liability or reducing any Tax asset of Buyer or the
Company, in respect of any taxable period that begins after the Closing Date or, in respect of any taxable period that begins before and
ends after the Closing Date (each such period, a “
Straddle Period
”), the portion of any Straddle Period beginning after
the Closing Date.
(b)       All
transfer, documentary, sales, use, stamp, registration, value added, and other such Taxes and fees (including any penalties and interest)
incurred in connection with this Agreement and the other Transaction Documents shall be borne and paid equally by Buyer, on the one hand,
and Sellers, on the other hand. Buyer and Sellers shall each be responsible for fifty percent (50%) of such Taxes and fees when due. The
parties shall cooperate in good faith to determine the appropriate party to timely file any Tax Return or other document with respect
to such Taxes or fees, and the filing party shall provide reasonable cooperation and documentation to the other party as necessary to
evidence such shared payment obligations.
(c)       Buyer
shall prepare, or cause to be prepared, all Tax Returns required to be filed by the Company after the Closing Date with respect to any
taxable period or portion thereof ending on or before the Closing Date and all Straddle Period Tax Returns. Any such Tax Return shall
be prepared in a manner consistent with past practice (unless otherwise required by Law) and without a change of any election or any accounting
method.
Section 6.02    Straddle Period.
In the
case of Taxes that are payable with respect to a Straddle Period, the portion of any such Taxes that are allocated to Pre-Closing Tax
Periods (as defined in Section 6.04) for purposes of this Agreement shall be: (a) in the case of Taxes: (i) based upon, or related to,
income, receipts, profits, wages, capital, or net worth; (ii) imposed in connection with the sale, transfer, or assignment of property;
or (iii) required to be withheld, the amount of Taxes which would be payable if the taxable year ended with the Closing Date; and (b)
in the case of other Taxes, the amount of such Taxes for the entire period multiplied by a fraction, the numerator of which is the number
of days in the period ending on the Closing Date and the denominator of which is the number of days in the entire period.
Section 6.03    Termination of Existing Tax
Sharing Agreements.
Any and all existing Tax sharing agreements (whether written or not) binding upon the Company shall be terminated
as of the Closing Date. After such date neither the Company, Sellers, nor any of their respective Representatives shall have any further
rights or liabilities thereunder.
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Section 6.04    Tax Indemnification
. Sellers
shall indemnify the Company, Buyer, and each Buyer Indemnitee (as defined in Section 7.01) and hold them harmless from and against (a)
any loss, damage, liability, deficiency, Action, judgment, interest, award, penalty, fine, cost or expense of whatever kind (collectively,
including reasonable attorneys’ fees and the cost of enforcing any right to indemnification under this Agreement, “
Losses
”)
attributable to any breach of or inaccuracy in any representation or warranty made in Section 3.18; (b) any Loss attributable to any breach
or violation of, or failure to fully perform, any covenant, agreement, undertaking, or obligation in ARTICLE VI; (c) all Taxes of the
Company or relating to the business of the Company for all Pre-Closing Tax Periods; (d) all Taxes of any member of an affiliated, consolidated,
combined, or unitary group of which the Company (or any predecessor) was a member on or before the Closing Date by reason of Treasury
Regulation Section 1.1502-6 or any comparable Law; and (e) Taxes of any Person imposed on the Company under transferee or successor liability
principles or by contract relating to a pre-Closing event or transaction. In each case, together with reasonable out-of-pocket fees and
expenses incurred in connection therewith, Sellers shall reimburse Buyer for Taxes for which Sellers are responsible under this Section
6.04 within ten (10) Business Days after final resolution and payment by Buyer or the Company. No Seller shall be liable for another Seller’s
separate breach, fraud, or act or omission. “Pre-Closing Tax Period” means any taxable period ending on or before the Closing
Date and, for a Straddle Period, the portion ending on and including the Closing Date.
Section 6.05    No Section 336(e) Election.
Sellers shall not make an election under Section 336(e) of the Code with respect to the transactions contemplated by this Agreement.
Section 6.06    Cooperation and Exchange of
Information.
Sellers and Buyer shall provide each other with such cooperation and information as either of them reasonably may request
of the other in filing any Tax Return pursuant to this ARTICLE VI or in connection with any proceeding in respect of Taxes of the Company,
including providing copies of relevant Tax Returns and accompanying documents. Each of Sellers and Buyer shall retain all Tax Returns
and other documents in its possession relating to Tax matters of the Company for any Pre-Closing Tax Period (collectively, “
Tax
Records
”) until the expiration of the statute of limitations of the taxable periods to which such Tax Records relate.
Section 6.07    Survival.
Notwithstanding
anything in this Agreement to the contrary, the provisions of Section 3.18 and this ARTICLE VI shall survive for the full period of all
applicable statutes of limitations (giving effect to any waiver, mitigation, or extension thereof).
Section 6.08    Intended Tax Treatment
.
The parties intend for the Merger to qualify as a reorganization under Section 368(a) of the Code, specifically under Section 368(a)(2)(E)
of the Code (the “
Intended Tax Treatment
”), and hereby adopt this Agreement as a “plan of reorganization”
within the meaning of Treasury Regulations Section 1.368-2(g). The Stock Consideration issued to Sellers in the Merger constitutes solely
“voting stock” of Buyer within the meaning of Section 368(a)(2)(E) of the Code. Each party shall (a) not take any position
on any Tax Return or in any Tax proceeding that is inconsistent with the Intended Tax Treatment unless otherwise required by applicable
Tax Law , and (b) promptly notify the other parties if it becomes aware of any facts or circumstances that could reasonably be expected
to cause the Merger to fail to qualify for the Intended Tax Treatment.
Section 6.09    Tax-Free Reorganization Covenants.
In order to preserve the Intended Tax Treatment, each of the parties hereby covenants and agrees as follows:
(a)
Continuity
of Interest.
Prior to the Closing, neither Buyer nor any Person related to Buyer shall make or have made any direct or indirect acquisition
of shares of the Company (or commitments to do so) that would jeopardize the continuity of interest requirement.
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(b)
Continuity
of Business Enterprise.
For a period of at least twelve (12) months following the Closing (the “
COBE Period
”),
Buyer shall cause the Surviving Corporation to either (i) continue the Company’s historic business, or (ii) use a significant portion
of the Company’s historic business assets in a business, in each case as required under Treasury Regulations Section 1.368-1(d).
During the COBE Period, Buyer shall not take, and shall not cause or permit the Surviving Corporation to take, any action that would cause
the Merger to fail to satisfy the continuity of business enterprise requirement under Treasury Regulations Section 1.368-1(d).
(c)
Substantially
All Assets.
The Surviving Corporation shall retain “substantially all” of the properties and assets of the Company and
Merger Sub held immediately prior to the Effective Time, within the meaning of Section 368(a)(2)(E) of the Code and the Treasury Regulations
thereunder. Without limiting the foregoing, for a period of at least twelve (12) months following the Closing, Buyer shall not cause or
permit the Surviving Corporation to sell, transfer, distribute, or otherwise dispose of any assets of the Company or Merger Sub that were
held immediately prior to the Effective Time if such sale, transfer, distribution, or disposal would cause the “substantially all”
requirement of Section 368(a)(2)(E) not to be satisfied.
(d)
No
Inconsistent Actions.
None of Buyer, Merger Sub, the Company, or any Seller has taken, and shall use commercially reasonable efforts
not to take, or permit any of its Affiliates to take, any action (including any extraordinary dividend or distribution other than distributions
expressly permitted by this Agreement, any acquisition of Company stock outside of this Agreement, any pre-arranged plan to dispose of
the Stock Consideration, any post-Closing liquidation of the Surviving Corporation, or any other restructuring transaction) that would
(or could reasonably be expected to) (i) prevent the Merger from qualifying for the Intended Tax Treatment; (ii) be inconsistent with
the Intended Tax Treatment; (iii) cause any of the representations or warranties in this Agreement relating to the Intended Tax Treatment
to be inaccurate; or (iv) cause any of the covenants in this Section 6.09 to be violated.
ARTICLE 7
INDEMNIFICATION
Section 7.01    Indemnification by Sellers
.
Subject to the other terms and conditions of this ARTICLE VII, Sellers shall indemnify and defend Buyer and its Affiliates (including
the Company) and their respective Representatives (collectively, the “Buyer Indemnitees”) against, and shall hold each of
them harmless from and against, and shall pay and reimburse each of them for, any and all Losses incurred or sustained by, or imposed
upon, the Buyer Indemnitees based upon, arising out of, with respect to, or by reason of:
(a)       any
inaccuracy in or breach of any of the representations or warranties of Sellers contained in this Agreement or the other Transaction Documents;
or
(b)       any
breach or non-fulfillment of any covenant, agreement, or obligation to be performed by Sellers pursuant to this Agreement or the other
Transaction Documents.
Section 7.02    Indemnification by Buyer.
Subject
to the other terms and conditions of this ARTICLE VII, Buyer shall indemnify and defend each of Sellers and their respective Representatives
(collectively, the “
Sellers’ Indemnitees
”) against, and shall hold each of them harmless from and against, and
shall pay and reimburse each of them for, any and all Losses incurred or sustained by, or imposed upon, the Sellers’ Indemnitees
based upon, arising out of, with respect to, or by reason of:
(a)       any
inaccuracy in or breach of any of the representations or warranties of Buyer contained in this Agreement or the other Transaction Documents;
or
(b)       any
breach or non-fulfillment of any covenant, agreement, or obligation to be performed by Buyer pursuant to this Agreement.
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Section 7.03    Indemnification Procedures
.
Whenever any claim shall arise for indemnification hereunder, the party entitled to indemnification (the “Indemnified Party”)
shall promptly provide written notice of such claim to the other party (the “Indemnifying Party”). In connection with any
claim giving rise to indemnity hereunder resulting from or arising out of any Action by a Person who is not a party to this Agreement,
the Indemnifying Party, at its sole cost and expense and upon written notice to the Indemnified Party, may assume the defense of any such
Action with counsel reasonably satisfactory to the Indemnified Party. The Indemnified Party shall be entitled to participate in the defense
of any such Action, with its counsel and at its own cost and expense. If the Indemnifying Party does not assume the defense of any such
Action, the Indemnified Party may, but shall not be obligated to, defend against such Action in such manner as it may deem appropriate,
including settling such Action, after giving notice of it to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate
and no action taken by the Indemnified Party in accordance with such defense and settlement shall relieve the Indemnifying Party of its
indemnification obligations herein provided with respect to any damages resulting therefrom. The Indemnifying Party shall not settle any
Action without the Indemnified Party’s prior written consent (which consent shall not be unreasonably withheld or delayed).
Section 7.04    Survival
. Subject to the
limitations and other provisions of this Agreement, the representations and warranties contained herein (other than any representations
or warranties contained in Section 3.18 which are subject to ARTICLE VI) and all related rights to indemnification shall survive the Closing
and shall remain in full force and effect until the date that is 18 months from the Closing Date; provided, however, the representations
and warranties in Section 3.02, Section 3.03, Section 3.04, Section 3.11, and Section 4.01 shall survive until the date that is five years
from the Closing Date. Subject to ARTICLE VI, all covenants and agreements of the parties contained herein shall survive the Closing indefinitely
unless another period is explicitly specified herein. Notwithstanding the foregoing, any claims which are timely asserted in writing by
notice from the non-breaching party to the breaching party prior to the expiration date of the applicable survival period shall not thereafter
be barred by the expiration of the relevant representation or warranty and such claims shall survive until finally resolved.
Section 7.05    Tax Claims.
Notwithstanding
any other provision of this Agreement, the control of any claim, assertion, event, or proceeding in respect of Taxes of the Company (including,
but not limited to, any such claim in respect of a breach of the representations and warranties in Section 3.18 hereof or any breach or
violation of or failure to fully perform any covenant, agreement, undertaking, or obligation in ARTICLE VI) shall be governed exclusively
by Article VI hereof.
Section 7.06    Cumulative Remedies.
The
rights and remedies provided for in this ARTICLE VII (and in Article VI) are cumulative and are in addition to and not in substitution
for any other rights and remedies available at Law or in equity or otherwise.
21
Section 7.07    Indemnification Limitations.
Notwithstanding anything in this ARTICLE VII to the contrary, the indemnification obligations of Sellers and Buyer shall be subject
to the following limitations:
(a)       Basket.
No Indemnifying Party shall have any liability to any Indemnitee of the other Party for indemnification under Section 7.01(a) (in the
case of Sellers) or Section 7.01(b) (in the case of Buyer) with respect to breaches of representations and warranties (other than Fundamental
Representations) unless and until the aggregate amount of all Losses for which such Indemnitees would otherwise be entitled to indemnification
under Section 7.01(a) or Section 7.01(b), as applicable, exceeds $75,000 (the "Basket"), in which event the Indemnifying Party
shall be liable only for Losses in excess of the Basket. For the avoidance of doubt, the Basket shall not apply to (i) any breach of a
Fundamental Representation, or (ii) any claim arising from fraud. The term "Fundamental Representations" means (a) with respect
to Sellers, the representations and warranties set forth in Section 3.02 (Organization of the Company and Authority of Sellers), Section
3.03 (Organization, Authority, and Qualification of the Company), Section 3.04 (Capitalization; Title to Shares), Section 3.18 (Taxes),
and Section 3.21 (Related Party Transactions), and (b) with respect to Buyer, the representations and warranties set forth in Section
4.01 (Organization and Authority of Buyer), Section 4.02 (No Conflicts; Consents), and Section 4.05 (Stock Consideration) and Section
4.06 (Capitalization).
(b)
Cap
on General Representations.
The aggregate liability of any Indemnifying Party to any Indemnitee of the other Party for indemnification
with respect to breaches of representations and warranties that are not Fundamental Representations shall not exceed $500,000 (the "General
Cap"). For the avoidance of doubt, the General Cap shall not apply to (i) any breach of a Fundamental Representation, or (ii) any
claim arising from fraud.
(c)
Cap
on Fundamental Representations.
The aggregate liability of any Indemnifying Party to any Indemnitee of the other Party for indemnification
with respect to breaches of Fundamental Representations shall not exceed $1,000,000 (the "Fundamental Cap"). For the avoidance
of doubt, the Fundamental Cap shall not apply to any claim arising from fraud.
Section 7.08    Sole Remedy.
Except in the
case of fraud or a claim made pursuant to Section 6.04, the indemnification provisions set forth in this Article VII shall be the sole
and exclusive remedy of each Party and its respective Indemnitees for any and all claims, whether in contract, tort or otherwise, arising
out of or relating to this Agreement or the transactions contemplated hereby. Except solely for an adjustment expressly permitted under
Section 1.03, no Buyer Indemnitee may set off, withhold, recoup, suspend, delay, or otherwise satisfy any alleged claim, Loss, or indemnification
obligation from or against any salary, signing bonus, non-contingent cash installment, retention bonus, Restricted Shares, Milestone Bonus,
or other compensation payable or issuable to any Seller under any Transaction Document.
Section 7.09    No Sandbagging.
No Party
shall be entitled to indemnification under this Article VII with respect to any breach of any representation, warranty, covenant, or obligation
of the other Party if the Party seeking indemnification had knowledge of such breach prior to or as of the Closing Date..
ARTICLE 8
MISCELLANEOUS
Section 8.01    Expenses.
Except as set
forth in Section 1.03, all costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall
be paid by the party incurring such costs and expenses.
22
Section 8.02    Notices.
All notices, claims,
demands, and other communications hereunder shall be in writing and shall be deemed to have been given: (a) when delivered by hand (with
written confirmation of receipt); (b) when received by the addressee if sent by a nationally recognized overnight courier (receipt requested);
(c) on the date sent by email of a PDF document (with confirmation of transmission) if sent during normal business hours of the recipient,
and on the next Business Day if sent after normal business hours of the recipient; or (d) on the third day after the date mailed, by certified
or registered mail, return receipt requested, postage prepaid, if sent to the respective parties at the following addresses (or at such
other address for a party as shall be specified in a notice given in accordance with this Section 8.02):
If to Sellers:
2600 South Sepulveda Blvd, Los Angeles, CA 90064
Email: [***]
Attention: Patrick Kim
with a copy (which shall not
constitute notice) to:
Day One Law Corporation
1235 Puerta Del Sol, Suite 600
San Clemente, California 92673
Email: [***]
Attention: Nima Maleki
If to Buyer:
Open World, Inc.
Email: [***]
Attention: The Directors
with a copy (which shall not
constitute notice) to:
Harter Secrest & Emery LLP
1600 Bausch & Lomb Place
Rochester, NY 14604
Attention: Alexander R. McClean
Email: [***]
Section 8.03    Interpretation; Headings.
This
Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting
an instrument or causing any instrument to be drafted. The headings in this Agreement are for reference only and shall not affect the
interpretation of this Agreement.
Section 8.04    Severability.
If any term
or provision of this Agreement is invalid, illegal, or unenforceable in any jurisdiction, such invalidity, illegality, or unenforceability
shall not affect any other term or provision of this Agreement.
Section 8.05    Entire Agreement.
This Agreement
and the other Transaction Documents constitute the sole and entire agreement of the parties to this Agreement with respect to the subject
matter contained herein and therein, and supersede all prior and contemporaneous understandings and agreements, both written and oral,
with respect to such subject matter. In the event of any inconsistency between the statements in the body of this Agreement and those
in the other Transaction Documents, any exhibits, and the Disclosure Schedules (other than an exception expressly set forth as such in
the Disclosure Schedules), the statements in the body of this Agreement will control.
Section 8.06    Successors and Assigns.
This
Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns.
Neither party may assign its rights or obligations hereunder without the prior written consent of the other party, which consent shall
not be unreasonably withheld or delayed. No assignment shall relieve the assigning party of any of its obligations hereunder.
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Section 8.07    Amendment and Modification;
Waiver.
This Agreement may only be amended, modified, or supplemented by an agreement in writing signed by each party hereto. No waiver
by any party of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the party so waiving.
No failure to exercise, or delay in exercising, any right or remedy arising from this Agreement shall operate or be construed as a waiver
thereof. No single or partial exercise of any right or remedy hereunder shall preclude any other or further exercise thereof or the exercise
of any other right or remedy.
Section 8.08    Governing Law; Submission
to Jurisdiction; Waiver of Jury Trial.
(a)       This
Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware without giving effect to any
choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction). Any legal suit, action, proceeding,
or dispute arising out of or related to this Agreement, the other Transaction Documents, or the transactions contemplated hereby or thereby
may be instituted in the federal courts of the United States of America or the courts of the State of Delaware, and each party irrevocably
submits to the exclusive jurisdiction of such courts in any such suit, action, proceeding, or dispute.
(b)       EACH
PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT OR THE OTHER TRANSACTION DOCUMENTS IS LIKELY TO
INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL ACTION, PROCEEDING, CAUSE OF ACTION, OR COUNTERCLAIM ARISING
OUT OF OR RELATING TO THIS AGREEMENT, INCLUDING ANY EXHIBITS AND SCHEDULES ATTACHED TO THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS,
OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT: (I) NO REPRESENTATIVE OF THE OTHER PARTY
HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE OTHER PARTY WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE EVENT OF A LEGAL ACTION;
(II) EACH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER; (III) EACH PARTY MAKES THIS WAIVER KNOWINGLY AND VOLUNTARILY; AND (IV)
EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.
Section 8.09    Counterparts.
This Agreement
may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the
same agreement. A signed copy of this Agreement delivered by email or other means of electronic transmission shall be deemed to have the
same legal effect as delivery of an original signed copy of this Agreement.
Section 8.10    Specific Performance.
The
Parties agree that irreparable damage would occur if any provision of this Agreement were not performed in accordance with the specific
terms hereof or were otherwise breached, and that monetary damages would be an inadequate remedy therefor. Accordingly, each Party shall
be entitled to seek an injunction or injunctions, or any other appropriate form of specific performance or equitable relief, to prevent
breaches of this Agreement and to enforce specifically the terms and provisions hereof. The right to seek specific performance includes,
without limitation, the right of either Party to compel the other Party to (a) perform and deliver all consideration and obligations required
under this Agreement, including the issuance and delivery of the Stock Consideration, and (b) honor all covenants and obligations under
this Agreement, including obligations with respect to the Employment Offer Letters and Restricted Share Subscription Agreements. The right
to specific performance set forth in this Section is an integral part of the transactions contemplated by this Agreement and each Party
hereby waives any objection to the granting of specific performance as a remedy.
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Section 8.11    Parent Guarantee.
Buyer
hereby irrevocably, absolutely, and unconditionally guarantees the prompt and full payment and performance by the Company and the Surviving
Corporation of all of their respective covenants, agreements, indemnities, liabilities, and obligations under or arising out of this Agreement,
the Employment Offer Letters, the Restricted Share Subscription Agreements, the Revenue Milestone Plan (as amended), and each other Transaction
Document, including all salary, signing bonus, non-contingent cash installment, retention bonus, severance, Milestone Bonus, Restricted
Share, registration, legend-removal, and other payment, issuance, and performance obligations when due. This is a continuing guaranty
of payment and performance, not merely of collection, and may be enforced directly against Buyer without first proceeding against the
Company, the Surviving Corporation, or any other Person.
[SIGNATURE PAGE FOLLOWS]
25
IN WITNESS WHEREOF
, the parties hereto have
caused this Agreement to be executed as of the date first written above by their duly authorized officers.
SELLERS
KIM & ASSOCIATES ADVISORY INC.
By:
/s/ Patrick Kim
Name:  Patrick Kim
Title:    President
/s/ Patrick Kim
Patrick Kim
/s/ Ryan Yue
Ryan Yue
/s/ Sungmeen Hong
Sungmeen Hong
BLOCKSIGHT HOLDINGS CO.
By:
/s/ Patrick Kim
Name:  Patrick Kim
Title:
OPENWORLD SUBCO (US) INC.
By:
/s/ Russel McMeekin
Name:   Russel McMeekin
Title:     President
BUYER
OPEN WORLD, INC.
By:
/s/ Matthew Shaw
Name:  Matthew Shaw
Title:    Chief Executive Officer
26
SCHEDULE
1
Ownership of Shares
and Allocation of Purchase Price
27
SCHEDULE
2
Capitalization
of Buyer
28
EXHIBIT
A
List of the Company Expenses
29

----- ex99_1.htm -----
EX-99.1
6
ex99_1.htm
EXHIBIT 99.1
Exhibit 99.1
OpenWorld (NASDAQ: OPNW): Announces Signing of Definitive Merger
Agreement to Acquire Blocksight to Serve as the Agentic Foundation for Its Up to $1 Billion Tokenized Solar and AI Computing Program with
Meridian and Up to $130 Million IP-Backed Transaction with BeyondAI
Blocksight's AI agents are expected to handle deal structuring,
asset verification, investor onboarding and daily reporting across more than $1.1 billion in recently announced tokenized financing programs
on the OpenWorld Enterprise platform
LAKE MARY, Fla., October 19, 2026--(BUSINESS WIRE)--OpenWorld, Inc.
(“OpenWorld” or the “Company”) (NASDAQ: OPNW), an innovation company advancing global real-world asset (“RWA”)
tokenization, today announced the signing of a definitive merger agreement to acquire Blocksight and outlined how its acquisition of Blocksight
Holdings Co. (“Blocksight”), announced on October 1, 2026, is intended to serve as the operating foundation for the Company’s
tokenized financing programs in infrastructure and energy. Blocksight builds AI agents that bring real-world assets on-chain, automating
deal structuring, asset data verification, investor onboarding, daily investor reporting and ongoing investment servicing, with human
approval required at key decision points. Upon completion of the acquisition, these agents are expected to be integrated into OpenWorld
Enterprise, the platform through which OpenWorld structures, administers and reports on tokenized RWA programs.
In the two weeks since the Blocksight announcement, OpenWorld has announced
two tokenized financing programs that OpenWorld Enterprise is expected to structure and service. On October 7, 2026, the Company entered
into a non-binding term sheet with BeyondAI for a proposed intellectual property-backed transaction of up to $130 million, under which
digital tokens would represent investors’ rights to payments backed by eligible BeyondAI intellectual property. On October 15, 2026,
the Company entered into a non-binding term sheet with Meridian to establish a tokenized financing program of up to $1 billion to fund
a distributed AI computing network powered by on-site solar energy and residential battery storage, with an expected initial deployment
planned for 10,000 homes. Together, the three announcements describe a single model: one platform, one agentic workflow, applied across
asset classes.
Key Highlights
●
One platform, one repeatable model:
OpenWorld Enterprise is the structuring, administration and reporting layer for each program.
Blocksight’s agents are intended to become the orchestration layer inside that platform, so that each new program reuses the same
verification, onboarding and reporting infrastructure rather than rebuilding it.
●
Agentic workflow with human approval:
Blocksight’s agents are expected to cover five stages of a tokenized financing:
deal structuring, asset data verification, investor onboarding, daily investor reporting and ongoing servicing. People approve the decisions
that matter at each stage.
●
Applied to intellectual property (BeyondAI):
In an IP-backed structure, the agents are expected to verify eligible patents
and software rights, onboard investors and report daily on the payment streams that back the tokens, while BeyondAI retains control of
its technology.
●
Applied to energy and computing infrastructure (Meridian):
In a distributed network of residential battery storage, solar panels
and AI computing equipment across thousands of properties, the agents are expected to ingest equipment performance data via IOT devices,
reconcile hosting payments and AI inference revenue, and deliver investor reporting on the underlying assets.
●
Team:
The Blocksight co-founders Patrick Kim and Peter Hong are expected to join OpenWorld upon closing of the merger.
“We want to build a model in which the Blocksight acquisition
provides the foundation for our tokenization work in infrastructure and energy,” said Matt Shaw, CEO of OpenWorld. “We expect
our proposed transaction with BeyondAI to demonstrate that industrial AI intellectual property can be structured as financeable collateral.
Our term sheet with Meridian extends that same model to physical assets: Tesla Powerwall residential battery storage, solar generation
and AI compute nodes across thousands of properties. Programs of that size cannot be verified, onboarded and reported on by hand. Blocksight’s
agents are how we intend to do it at scale, with people approving every decision that matters.”
From Transaction to Platform
Tokenizing a real-world asset is not a single event. Each program requires
the underlying assets to be structured into a financeable form, the data behind those assets to be verified, investors to be onboarded
and documented, performance to be reported on a continuing basis, and payments to be serviced over the life of the structure. Performed
manually, each of these steps limits how many programs a platform can run and how large each program can be.
Blocksight was built to automate that lifecycle. Its agents structure
deals, verify asset data, onboard investors, produce daily investor reporting and service investments on an ongoing basis, with humans
required for key decisions. After the closing of the merger, OpenWorld intends to make this workflow the standard operating layer of OpenWorld
Enterprise, so that the Company can take on larger programs, across more asset classes, with consistent verification and reporting for
investors.
Applying the Model: BeyondAI
Under the October 7, 2026 term sheet, OpenWorld would provide transaction
structuring, tokenization, technology integration, reporting infrastructure and operational services for a proposed IP-backed transaction
of up to $130 million. Each token would represent an investor’s rights to payments backed by eligible BeyondAI intellectual property,
such as patents and software rights. The proposed arrangement is a financing backed by IP rights, not a sale of BeyondAI’s technology,
and BeyondAI would retain control of its technology.
Within this structure, Blocksight’s agents are expected to support
the verification of eligible intellectual property, the onboarding of investors and the daily reporting on the payment streams that back
the tokens.
Applying the Model: Meridian
Under the October 15, 2026 term sheet, OpenWorld would serve as advisor,
structuring agent and services provider for a tokenized financing program of up to $1 billion, and OpenWorld Enterprise would finance
and operate the orchestration of a distributed AI computing network. Meridian holds purchase rights to Tesla Powerwall residential battery
storage systems for the program and would own the storage assets within the structure. Residential battery storage, solar panels and AI
computing equipment form the asset base. The initial deployment is planned for 10,000 homes, with larger installations at local schools,
hospitals and commercial campuses. Initial installations are scheduled to begin in the fourth quarter of 2026, with the first commercial
site targeted for the first quarter of 2027.
A program of this kind produces a continuous stream of operating data
from thousands of sites: equipment performance, energy generated and stored, computing capacity delivered to AI inference providers, and
payments owed to participating hosts. Blocksight’s agents are expected to ingest that data, reconcile it against the financing structure
and provide investors with reporting on the underlying assets through OpenWorld Enterprise.
Transaction Status
The term sheets with BeyondAI and Meridian are non-binding, except
for the provisions expressly stated to be binding, and each proposed transaction remains subject to the completion of confirmatory due
diligence, negotiation and execution of definitive documentation, satisfaction of applicable conditions and completion of the contemplated
transaction. In addition, the acquisition of Blocksight remains subject to the satisfaction or waiver of customary closing conditions.
There can be no assurance that any of these transactions will be consummated on the terms described or at all.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended. These forward-looking
statements generally can be identified by the use of words such as “anticipate,” “believes,” “continue,”
“expect,” “plan,” “could,” “contemplate,” “may,” “will,” “should,”
“would,” “intend,” “potential,” “designed,” and other words of similar meaning. Examples
of forward-looking statements include, among others, statements regarding the acquisition of Blocksight, whether the OpenWorld Board of
Directors will approve the acquisition, whether definitive transaction documentation will be executed, the anticipated timing, structure
and benefits of the acquisition, the satisfaction or waiver of any closing conditions, the integration of Blocksight and its technology
into OpenWorld Enterprise, the expected roles of Blocksight’s founders following closing, the integration of Blocksight’s
technology into OpenWorld Enterprise, the proposed transactions with BeyondAI and Meridian, and the size, timing and structure of those
programs and the ability of OpenWorld to realize the anticipated strategic and operational benefits of the proposed acquisition and proposed
transactions. Each forward-looking statement contained in this press release is subject to risks and uncertainties that could cause actual
results to differ materially from those expressed or implied by such statement. Forward-looking statements are neither historical facts
nor assurances of future performance. Instead, they are based only on OpenWorld’s current beliefs, expectations and assumptions.
Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances
that are difficult to predict and many of which are outside OpenWorld’s control. Actual results and outcomes may differ materially
from those indicated in the forward-looking statements. Therefore, you should not place undue reliance on any of these forward-looking
statements. Important factors that could cause actual results and outcomes to differ materially from those indicated in the forward-looking
statements include, among others, the following: (1) the possibility that the OpenWorld Board of Directors does not approve the proposed
transactions that the parties do not execute definitive transaction documentation; (2) the occurrence of any event, change or other circumstance
that could cause the proposed transactions not to be completed, including the failure to obtain any necessary approvals or satisfy or
waive applicable closing conditions; (3) the institution or outcome of any legal proceedings that may be instituted against OpenWorld,
Blocksight, Meridian or BeyondAI following the announcement of the proposed transactions; (4) the risk that the proposed transactions
disrupts current plans and operations as a result of the time it diverts from management; (5) OpenWorld’s ability to realize the
anticipated benefits of the proposed transactions and successfully integrate Blocksight’s, Meridian or BeyondAI’s business,
personnel and technology if the transactions are completed; (6) the risk that tokenized securities may face increased regulatory scrutiny
and may not be broadly accepted by the market; (7) costs related to the proposed transaction; (8) changes in applicable laws or regulations;
and (9) the risks and uncertainties described in OpenWorld’s Annual Report and Quarterly Reports filed with the SEC, including under
the heading titled “Risk Factors.”
OpenWorld cautions investors not to place undue reliance on the forward-looking
statements contained in this press release. You are encouraged to read OpenWorld’s filings with the SEC, available at www.sec.gov,
for a discussion of these and other risks and uncertainties. The forward-looking statements speak only as of the date of this press release,
and OpenWorld undertakes no obligation to update or revise any of these statements except as required by applicable law. OpenWorld’s
business is subject to substantial risks and uncertainties, including those referenced above. Investors, potential investors, and others
should consider these risks and uncertainties. OpenWorld does not give any assurance that definitive transaction documentation relating
to the acquisition of Blocksight or the proposed transactions with Meridian and BeyondAI will be executed, that the acquisition or transactions
will be completed or that OpenWorld will achieve its expectations and objectives, financial or otherwise, even if the proposed acquisition
or transactions are completed.
About OpenWorld
OpenWorld, Inc. (NASDAQ: OPNW) is a technology-powered digital assets
and blockchain innovation company that co-architects and takes principal positions in enterprise blockchain initiatives alongside sovereign
governments, institutional partners and major enterprises. Since its founding in 2023, OpenWorld has advised on projects representing
over $66 billion in aggregate network value and supported more than 20 companies backed by leading global venture firms, including a16z,
Multicoin Capital, Dragonfly and Founders Fund. OpenWorld’s capabilities span real-world asset tokenization, stablecoin infrastructure,
capital markets advisory, governance structuring and public markets strategy, with active engagements across the United States, Gulf,
Europe, Southeast Asia and Africa. To learn more, visit openworld.dev and follow OpenWorld on X at @_openworld.
About Blocksight
Blocksight Holdings Co. builds AI agents that bring real-world assets
on-chain. Its agents automate deal structuring, asset data verification, investor onboarding, daily investor reporting and ongoing investment
servicing, with human approval required at key decisions. Blocksight was co-founded by Patrick Kim and Peter Hong.
Contacts
Investors
ir@openworld.dev
Media
Gasthalter & Co.
Phone: (212) 257-4170
Email: openworld@gasthalter.com