REIMBURSEMENT AGREEMENT


 


This Reimbursement
Agreement (this “Agreement”) is entered into this 29th day of January, 2014, by and between Loton Corp., a Nevada corporation
(“Loton”) and JJAT Corp., a Delaware corporation (“JJAT”). Each of Loton and JJAT may be referred to as
a Party and collectively as the Parties.


 


RECITALS


 


WHEREAS, Loton entered
into negotiations with the shareholders of OBAR Camden Holdings Limited (the “Company”) for the purposes of acquiring
all of the capital stock of the Company (the “Transaction”);


 


WHEREAS, as a result
of the negotiations, Loton has incurred, and is expected to incur various transaction costs and expenses, including the costs and
expenses as reflected on Exhibit A, attached hereto (the costs and expenses set forth on Exhibit A and all other costs and expenses
now or hereafter incurred by Loton with respect to the Transaction are referred to as the “Transaction Expenses”);


 


WHEREAS, Loton has
determined that it will be unable to complete the Transaction on a timely basis due to a number of reasons, including its inability
to raise enough financing to close the Transaction;


 


WHEREAS, JJAT, a company
wholly owned by Robert Ellin, who is also a director and shareholder of Loton, has agreed to undertake to complete the Transaction
in the place of Loton, which undertaking includes the obligation on the part of JJAT to pay for and reimburse Loton for all Transaction
Expenses it has paid or incurred, or will pay or incur, with respect to the Transaction;


 


NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:


 


AGREEMENT


 


1.            Transaction.
Loton hereby authorizes JJAT to pursue and close the Transaction for its own account on the terms and conditions set forth in this
Agreement. Except for the obligations incurred by JJAT under this Agreement, Loton hereby waives any claim against either JJAT
or Robert Ellin in connection with the Transaction, including, without limitation, under any theory relating to the “corporate
opportunity doctrine” or otherwise.


 


2.            Undertaking
to Reimburse Loton. In consideration of the terms and conditions of this Agreement, JJAT agrees to pay and reimburse Loton
for all Transaction Expenses it has paid or incurred, or hereafter may pay or incur, in connection with the Transaction, including,
without limitation, the Transaction Expenses set forth on Exhibit A. The foregoing obligation shall not require JJAT to pay Loton’s
costs and expenses in connection with any future acquisition by Loton of JJAT or any acquisition of the Company from JJAT, except
as provided in any written definitive agreement, if any, executed in connection therewith,


 


 






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3.            Representations
and Warranties. Each Party represents and warrants to the other Party as follows: 


 


		A.	Such Party is duly organized, validly existing and in good standing under the laws of the state of its jurisdiction of organization,
with full power and authority to conduct its business as now conducted, own its assets and enter into and perform its obligations
under this Agreement. The execution, delivery and performance of this Agreement by such Party, has been duly authorized by all
requisite entity action on the part of such Party, and this Agreement constitutes, the legal, valid and binding obligations of
such Party, enforceable against such Party in accordance with its terms; and



 


		B.	The execution and delivery of this Agreement by such Party does not, and the performance of this Agreement will not, (a) conflict
with or violate any United States federal, state, local or foreign law, statute, ordinance, rule, regulation, order, judgment or
decree applicable to such Party or by or to which or to which such Party’s properties or assets is bound or subject, or (b)
conflict with, violate or result in any default under such Party’s charter documents.



 


4.            Confidentiality.
Unless consented to by the other Party, which consent will not be unreasonably withheld, each Party hereto will hold and will cause
its agents, officers, directors, attorneys, employees, consultants and advisors to hold in strict confidence, unless compelled
to be disclosed by judicial or administrative process or, in the opinion of its counsel, by other requirements of law, all documents
and information concerning any other Party furnished it by such other Party or its representatives in connection with the subject
matter hereof (except to the extent that such information can be shown to have been (i) previously known by the Party to which
it was furnished, (ii) in the public domain through no fault of such Party, or (iii) later lawfully acquired from other sources
by the Party to which it was furnished), and each Party will not release or disclose such information to any other person, except
its auditors, attorneys, financial advisors, bankers and other consultants and advisors in connection with this Agreement. JJAT
acknowledges that Loton may disclose this Agreement as part of its normal material agreement disclosure obligations under applicable
securities laws and under the rules of securities marketplace where its common stock trades, and in press releases and investor
presentations describing the business activities of Loton.


 


5.            Miscellaneous.


 


A.            This Agreement
sets forth the entire understanding of the Parties and supersedes any prior agreement or understanding relating to the subject
matter hereof. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by all the
Parties. No waiver of any of the provisions of this Agreement shall be deemed, or shall constitute, a waiver of any other provision,
whether or not similar, nor shall any waiver constitute a continuing waiver. No waiver shall be binding unless executed in writing
by the Party making the waiver.


 


 






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B.            Neither Party may
assign, sell, transfer or otherwise convey, pledge or encumber any of its rights, obligations or interests under this Agreement
without the prior written consent of the Party. In the event of any reorganization of JJAT, or JJAT shall consolidate with or merge
into another person or entity or convey all or substantially all of its assets to another person or entity, then and in each such
case the buyer or surviving entity in said transaction shall assume the obligation of JJAT under this Agreement.


 


C.            Except as otherwise
provided herein, the provisions hereof shall insure to the benefit of, and be binding upon, the successor, assigns, heirs, executors
and administrators of the Parties hereto.


 


D.            This Agreement
shall be governed by and construed in accordance with the laws of the State of California. In the event that any provision of this
Agreement is held by a court of competent jurisdiction to be unenforceable or void in any jurisdiction to be unenforceable or void
in any jurisdiction, the other provisions of this Agreement shall remain in full force and effect under applicable law and shall
be construed in order to effectuate the purpose and intent of this Agreement. Any action brought by any Party hereto shall be brought
in the courts located in Los Angeles County California.


 


E.            Except as otherwise
provided herein, if a dispute should arise between the Parties including, but not limited to arbitration, the prevailing Party
shall be reimbursed by the non-prevailing Party for all reasonable expenses incurred in resolving such dispute, including reasonable
attorneys’ fees.


 


 


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IN WITNESS WHEREOF,
the Parties hereto have caused this Agreement to be duly executed as of the date first written above.


 


 


	“Loton”	 	 	“JJAT”	 
	 	 	 	 	 
	Loton Corp.,	 	 	JJAT Corp.	 
	a Nevada corporation	 	 	a Delaware corporation	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	By: Jay Krigsman	 	 	By: Rob Ellin	 
	Its: Director, Authorized Signatory	 	 	Its: Director, Authorized Signatory	 



 


 



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Exhibit A


 


 



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