Exhibit 10.1


 





SHARE EXCHANGE AGREEMENT


 


This Share Exchange
Agreement (the “Agreement”), is made and entered into as of May 31, 2016, by and among 3DIcon Corporation, an
Oklahoma corporation (“Parent”), Coretec Industries, LLC, a North Dakota limited liability company (the “Company”),
and the members of the Company (each a “Member” and collectively the “Members”). Certain
other capitalized terms used in this Agreement are defined in Exhibit A, attached hereto.


 


RECITALS


 


WHEREAS, the Company
has One Hundred (100) Membership Interest Units (the “Membership Interests”) outstanding, 100% of which are
held by the Members. The Parent agreed to issue Four Million Four Hundred Eleven Thousand Seven Hundred Ten (4,411,710) share of
Series B Convertible Preferred Stock, par value $0.0002 per share, of Parent (the “Parent Preferred Stock”),
for the Membership Interests so transferred by the Members (the “Exchange”);


 


WHEREAS, the Board
of Directors of the Parent and Members of the Company have determined that it is desirable and in the best interests of the shareholders
and members of their respective companies to effect this plan of reorganization and share exchange.


 


AGREEMENT


 


NOW, THEREFORE, in
consideration of the foregoing and the mutual promises, representations, warranties, covenants and agreements herein contained,
the parties hereto, intending to be legally bound, hereby agree as follows:


 


ARTICLE 1


EXCHANGE OF SHARES


 


1.1.         Terms
of the Exchange. At the Closing, the Members shall sell, transfer, convey, assign and deliver to the Parent their Membership
Interests, representing all outstanding Membership Interests, free and clear of all Liens, and, in exchange and consideration therefor,
the Parent will transfer, convey, assign, and deliver an aggregate of Four Million Four Hundred Eleven Thousand Seven Hundred Ten
(4,411,710) shares of the Parent’s Series B Convertible Preferred Stock to the Members or to the Members’ designees,
and in the amounts, set forth on Schedule 1.1 (the “Exchange Consideration”).


 


1.2.         Closing.
The closing (the “Closing”) of the transactions contemplated by this Agreement (the “Transactions”)
shall take place at the offices of Sichenzia Ross Friedman Ference LLP in New York, New York, commencing upon the satisfaction
or waiver of all conditions and obligations of the parties to consummate the transactions contemplated hereby (other than conditions
and obligations with respect to the actions that the respective parties will take at Closing) or such other date and time as the
parties may mutually determine (the “Closing Date”).


 


ARTICLE 2


REPRESENTATIONS OF THE MEMBERS


 


Each Member, severally
and not jointly and only as to itself, and its designee(s) as the case may be, represents and warrants to the Parent, as follows:


 


2.1         Good
Title. The Member is the record and beneficial owner, and has good and marketable title to its Membership Interest being exchanged
by such Member pursuant to this Agreement, with the right and authority to sell and deliver such Membership Interest to Parent
as provided herein. Upon registering of the Parent as the new owner of such Membership Interest in the register of the Company,
the Parent will receive good title to such Membership Interest, free and clear of all Liens.


 


2.2         Power
and Authority. All acts required to be taken by the Member to enter into this Agreement and to carry out the Transactions
have been properly taken. The obligations of the Member under this Agreement constitute legal, valid and binding obligations of
the Member, enforceable against such Member in accordance with the terms hereof.


 


2.3         No
Conflicts. The execution and delivery of this Agreement by the Member and the performance by the Member of his obligations
hereunder in accordance with the terms hereof: (i) will not require the consent of any Governmental Entity under any Laws; (ii)
will not violate any Laws applicable to such Member; and (iii) will not violate or breach any contractual obligation to which
such Member is a party.


 


2.4         No
Finder’s Fee. The Member has not created any obligation for any finder’s, investment banker’s or broker’s
fee in connection with the transactions contemplated under this Agreement that the Company or the Parent will be responsible for.


 


2.5         Purchase
Entirely for Own Account. The Parent Preferred Stock proposed to be acquired by the Member or its designee(s) hereunder will
be acquired for investment for its or its designee(s) own account, and not with a view to the resale or distribution of any part
thereof, and the Member has no present intention of selling or otherwise distributing the Parent Preferred Stock or any other
securities of the Parent into which the Parent Preferred Stock are or may be convertible, exercisable or exchangeable (collectively
with the Parent Preferred Stock, the “Parent Securities”), except in compliance with applicable securities
laws.


 






     


     


    

 


2.6         Available
Information. The Member, and its designee(s) as the case may be, has such knowledge and experience in financial and business
matters that it is capable of evaluating the merits and risks of an investment in the Parent. The Member, and its designee(s)
as the case may be, acknowledges that it has had access to the documents filed by Parent under the Exchange Act, since the end
of its most recently completed fiscal year to the date hereof, and has carefully reviewed the same. The Member, and its designee(s)
as the case may be, further acknowledges that Parent has made available to it the opportunity to ask questions of and receive
answers from Parent’s officers and directors concerning the terms and conditions of this Agreement and the business and
financial condition of Parent, and has received to its satisfaction, such information about the business and financial condition
of Parent and the terms and conditions of the Agreement as it has requested. The Member, and its designee(s) as the case may be,
has carefully considered the potential risks relating to Parent and investing in the Exchange Consideration, and fully understands
that such securities are speculative investments, which involve a high degree of risk of loss of the Company and its Members’
entire investment. Among others, the Member, and its designee(s) as the case may be, has carefully considered each of the risks
identified under the caption “Risk Factors” in the Parent SEC Documents, which are incorporated herein by reference.
The foregoing, however, does not limit or modify the representations and warranties of the Company and the Parent in Articles 3
and 4 of this Agreement, respectively, or the right of the Member to rely thereon.


 


2.7         Non-Registration.
The Member understands that, and that its designee(s) must understand that, the Parent Securities have not been registered
under the Securities Act of 1933, as amended and, if issued in accordance with the provisions of this Agreement, will be issued
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 the Member’s representations as expressed herein. The
non-registration shall have no prejudice with respect to any rights, interests, benefits and entitlements attached to the Parent
Securities in accordance with the Parent charter documents or the laws of its jurisdiction of incorporation.


 


2.8         Restricted
Securities. The Member understands, and that its designee(s) must understand that, that the Parent Securities are characterized
as “restricted securities” under the Securities Act inasmuch as this Agreement contemplates that, if acquired by the
Member pursuant hereto, the Parent Securities would be acquired in a transaction not involving a public offering. The Member further
acknowledges that if the Parent Securities are issued to the Member in accordance with the provisions of this Agreement, such
Parent Securities may not be resold without registration under the Securities Act or the existence of an exemption therefrom.


 


2.9         Legends.
The Member understands that, and that its designee(s) must understand that, the Parent Securities will bear the following
legend or another legend that is similar to the following:


 


THESE SECURITIES HAVE
NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION
FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE
OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE
STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL
BE REASONABLY ACCEPTABLE TO THE COMPANY. THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT SECURED
BY SUCH SECURITIES.


 


and any legend required by the “blue
sky” laws of any state to the extent such laws are applicable to the securities represented by the certificate so legended.


 


2.10       Accredited
Investor. Except as set forth on the signature page to this Agreement, the Member or the Member’s designee(s) or the
Member’s purchaser representative, or the purchase representative of the Member’s designee(s) is an “accredited
investor” within the meaning of Rule 501, as promulgated under the Securities Act.


 


2.11       Member Representation
Letter. The Member represents and warrants that the information provided to the Parent in the member representation letter
(the “Member Representation Letter”), attached hereto as Exhibit B, is in all respects true and correct
with regard to the Member or the Member’s designee(s) or the Member’s purchaser representative, or the purchase representative
of the Member’s designee(s). The Member also acknowledges that the Parent will rely on the information contained in the Member
Representation Letter in assessing the suitability of such Member for the Exchange in compliance with applicable state and federal
law.


 






     


     


    

 


2.12       Acknowledgement
of Inability to Convert Parent Preferred Shares and Current Capitalization. The Member represents, acknowledges, and confirms
its understanding that, and that its designee(s) must understand that, due to the Parent’s current number of authorized common
stock and its issued and outstanding shares of common stock or reservation for future issuances of common stock, the Company does
not have enough authorized but unissued common stock to issue any shares of its common stock upon conversion of the Parent Preferred
Shares and that the Parent Preferred Shares may not be able to convert into shares of the Parent’s common stock upon initial
receipt or ever, unless the Company is able to get the proper authorization to initiate the corporate actions that would enable
it to issue such shares. The Member further represents, acknowledges and confirms its understanding, and that its designee(s) must
have an understanding, of and ramifications of the Parent’s current capitalization, as set forth on Schedule 4.3, and the
anticipated capitalization of the Parent after the Exchange and that the Member and the Member’s designee accepts the Exchange
Consideration acknowledging that the Parent Preferred Shares may not be able to convert into shares of the Parent’s common
stock upon initial receipt or ever.


 


ARTICLE 3


REPRESENTATIONS
AND WARRANTIES OF THE COMPANY


 


The Company represents
and warrants to Parent that, except as set forth in the disclosure schedules delivered by the Company to Parent (the “Company
Disclosure Schedule”) which have been provided to Parent prior to the date hereof.


 


3.1.         Organization,
Standing and Corporate Power. The Company is duly organized, validly existing and in good standing under the Laws of the State
of North Dakota and has the requisite corporate power and authority and all government licenses, authorizations, Permits, consents
and approvals required to own, lease and operate its properties and carry on its business as now being conducted. The Company is
duly qualified or licensed to do business and is in good standing in each jurisdiction in which the nature of its business or the
ownership or leasing of its properties makes such qualification or licensing necessary, other than in such jurisdictions where
the failure to be so qualified or licensed (individually or in the aggregate) would not have a Material Adverse Effect.


 


3.2.         Subsidiaries.
Except as set forth on Schedule 3.2, the Company does not own directly or indirectly, any equity or other ownership interest in
any company, corporation, partnership, joint venture or otherwise.


 


3.3.         Capital
Structure of the Company. As of the date of this Agreement, the number of shares and type of all authorized, issued and outstanding
capital stock of the Company, and all shares of capital stock reserved for issuance under the Company’s various option and
incentive plans is specified on Schedule 3.3. Except as set forth in Schedule 3.3, no shares of capital stock or other equity securities
of the Company are issued, reserved for issuance or outstanding. All outstanding shares of capital stock of the Company are duly
authorized, validly issued, fully paid and nonassessable and not subject to preemptive rights. Except as set forth on Schedule
3.3, there are no outstanding bonds, debentures, notes or other indebtedness or other securities of the Company having the right
to vote (or convertible into, or exchangeable for, securities having the right to vote) on any matters. Except as set forth in
Schedule 3.3, there are no outstanding securities, options, warrants, calls, rights, commitments, agreements, arrangements or undertakings
of any kind to which the Company is a party or by which it is bound obligating the Company to issue, deliver or sell, or cause
to be issued, delivered or sold, additional shares of capital stock or other equity or voting securities of the Company or obligating
the Company to issue, grant, extend or enter into any such security, option, warrant, call, right, commitment, agreement, arrangement
or undertaking. Except on Schedule 3.3, there are no outstanding contractual obligations, commitments, understandings or arrangements
of the Company to repurchase, redeem or otherwise acquire or make any payment in respect of any shares of capital stock of the
Company. Except as set forth on Schedule 3.3, there are no agreements or arrangements pursuant to which the Company is or could
be required to register shares of Company Common Stock or other securities under the Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder (the “Securities Act”) or other agreements or arrangements with
or among any security holders of the Company with respect to securities of the Company.


 


3.4.         Corporate
Authority; Noncontravention. The Company has all requisite corporate and other power and authority to enter into this Agreement
and to consummate the Transactions, the execution and delivery of this Agreement by the Company and the consummation by the Company
of the Transactions have been (or at Closing will have been) duly authorized by all necessary corporate action on the part of the
Company. This Agreement has been duly executed and when delivered by the Company shall constitute a valid and binding obligation
of the Company, enforceable against the Company in accordance with its terms, except as such enforcement may be limited by bankruptcy,
insolvency or other similar Laws affecting the enforcement of creditors’ rights generally or by general principles of equity.
The execution and delivery of this Agreement do not, and the consummation of the Transactions and compliance with the provisions
hereof will not, conflict with, or result in any breach or violation of, or Default (with or without notice or lapse of time, or
both) under, or give rise to a right of termination, cancellation or acceleration of or “put” right with respect to
any obligation or to a loss of a material benefit under, or result in the creation of any Lien upon any of the properties or Assets
of the Company under, (i) the Certificate of Incorporation, Bylaws or other organizational or charter documents of the Company
(the “Company Charter Documents”), (ii) any loan or credit agreement, note, bond, mortgage, indenture, lease
or other agreement, instrument, Permit, concession, franchise or license applicable to the Company, its properties or Assets, or
(iii) subject to the governmental filings and other matters referred to in the following sentence, any judgment, Order, decree,
statute, Law, ordinance, rule, regulation or arbitration award applicable to the Company, its properties or Assets, other than,
in the case of clauses (ii) and (iii), any such conflicts, breaches, violations, Defaults, rights, losses or Liens that individually
or in the aggregate could not have a Material Adverse Effect with respect to the Company or could not prevent, hinder or materially
delay the ability of the Company to consummate the Transactions.


 






     


     


    

 


3.5.        Governmental
Authorization. No consent, approval, Order or authorization of, or registration, declaration or filing with, or notice to,
any Governmental Entity, is required by or with respect to the Company in connection with the execution and delivery of this Agreement
by the Company or the consummation by the Company of the transactions contemplated hereby, except, with respect to this Agreement,
any filings under the Securities Act or Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated
thereunder (the “Exchange Act”).


 


3.6.        Financial
Statements.


 


(a)         The
Company has provided Parent a copy of the audited consolidated financial statements of the Company for the period ended December
31, 2015 (the “Company Financial Statements”). The Company Financial Statements fairly present the financial
condition of the Company at the dates indicated and its results of operations and cash flows for the periods then ended and, except
as indicated therein, reflect all claims against, debts and liabilities of the Company, fixed or contingent, and of whatever nature,
as of the dates indicated.


 


(b)         Since
December 31, 2015 (the “Company Balance Sheet Date”), there has been no Material Adverse Effect with respect
to the Company.


 


(c)         Except
as set forth on Schedule 3.6, since the Company Balance Sheet Date, the Company has not suffered any damage, destruction or loss
of physical property (whether or not covered by insurance) affecting its condition (financial or otherwise) or operations (present
or prospective), nor has the Company issued, sold or otherwise disposed of, or agreed to issue, sell or otherwise dispose of, any
capital stock or any other security of the Company and has not granted or agreed to grant any option, warrant or other right to
subscribe for or to purchase any capital stock or any other security of the Company or has incurred or agreed to incur any indebtedness
for borrowed money.


 


3.7.         Absence
of Certain Changes or Events. Except as set forth on Schedule 3.7, since the Company Balance Sheet Date, the Company has conducted
its business only in the ordinary course consistent with past practice, and there is not and has not been any:


 


(a)         Material
Adverse Effect with respect to the Company;


 


(b)         event
which, if it had taken place following the execution of this Agreement, would not have been permitted by Section 5.1 without prior
consent of Parent;


 


(c)         condition,
event or occurrence which could reasonably be expected to prevent, hinder or materially delay the ability of the Company to consummate
the Transactions;


 


(d)         incurrence,
assumption or guarantee by the Company of any indebtedness for borrowed money other than in the ordinary course and in amounts
and on terms consistent with past practices;


 


(e)         creation
or other incurrence by the Company of any Lien on any asset other than in the ordinary course consistent with past practices;


 


(f)         labor
dispute, other than routine, individual grievances, or, to the Knowledge of the Company, any activity or proceeding by a labor
union or representative thereof to organize any employees of the Company or any lockouts, strikes, slowdowns, work stoppages or
threats by or with respect to such employees;


 


(g)         payment,
prepayment or discharge of liability other than in the ordinary course of business or any failure to pay any liability when due;


 


(h)         material
write-offs or write-downs of any Assets of the Company;


 


(i)         damage,
destruction or loss having, or reasonably expected to have, a Material Adverse Effect on the Company;


 


(j)         other
condition, event or occurrence which individually or in the aggregate could reasonably be expected to have a Material Adverse Effect
or give rise to a Material Adverse Effect with respect to the Company;


 


(k)         transaction
or commitment made, or any Contract or agreement entered into, by the Company relating to its Assets or business (including the
acquisition or disposition of any Assets) or any relinquishment by the Company or any Contract or other right, in either case,
material to the Company, other than transactions and commitments in the ordinary course consistent with past practices and those
contemplated in this Agreement; or


 






     


     


    

 


(l)         agreement
or commitment to do any of the foregoing.


 


3.8.        Certain
Fees. Except as set forth on Schedule 3.8, no brokerage or finder’s fees or commissions are or will be payable by the
Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other person with respect
to the Transactions.


 


3.9.        Litigation;
Labor Matters; Compliance with Laws.


 


(a)         There
is no suit, action or proceeding or investigation pending or, to the Knowledge of the Company, threatened against or affecting
the Company or any basis for any such suit, action, proceeding or investigation that, individually or in the aggregate, could reasonably
be expected to have a Material Adverse Effect with respect to the Company or prevent, hinder or materially delay the ability of
the Company to consummate the Transactions, nor is there any judgment, decree, injunction, rule or Order of any Governmental Entity
or arbitrator outstanding against the Company having, or which, insofar as reasonably could be foreseen by the Company, in the
future could have, any such effect.


 


(b)         The
Company is not a party to, or bound by, any collective bargaining agreement, Contract or other agreement or understanding with
a labor union or labor organization, nor is it the subject of any proceeding asserting that it has committed an unfair labor practice
or seeking to compel it to bargain with any labor organization as to wages or conditions of employment nor is there any strike,
work stoppage or other labor dispute involving it pending or, to its Knowledge, threatened, any of which could have a Material
Adverse Effect with respect to Company.


 


(c)         The
conduct of the business of the Company complies with all statutes, Laws, regulations, ordinances, rules, judgments, Orders, decrees
or arbitration awards applicable thereto, except as would not have a Material Adverse Effect with respect to the Company.


 


3.10.      Benefit
Plans. The Company is not a party to any Benefit Plan under which the Company currently has an obligation to provide benefits
to any current or former employee, officer or director of the Company, other than as required by North Dakota law. As used herein,
“Benefit Plan” shall mean any employee benefit plan, program, or arrangement of any kind, including any defined
benefit or defined contribution plan, stock ownership plan, executive compensation program or arrangement, bonus plan, incentive
compensation plan or arrangement, profit sharing plan or arrangement, deferred compensation plan, agreement or arrangement, supplemental
retirement plan or arrangement, vacation pay, sickness, disability, or death benefit plan (whether provided through insurance,
on a funded or unfunded basis, or otherwise), medical or life insurance plan providing benefits to employees, retirees, or former
employees or any of their dependents, survivors, or beneficiaries, employee stock option or stock purchase plan, severance pay,
termination, salary continuation, or employee assistance plan.


 


3.11.      Tax
Returns and Tax Payments.


 


(a)         The
Company has timely filed with the appropriate taxing authorities all Tax Returns required to be filed by it (taking into account
all applicable extensions). All such Tax Returns are true, correct and complete in all respects. All Taxes due and owing by the
Company have been paid (whether or not shown on any Tax Return and whether or not any Tax Return was required). Except as set forth
on Schedule 3.11, the Company is not currently the beneficiary of any extension of time within which to file any Tax Return or
pay any Tax. No claim has ever been made in writing or otherwise addressed to the Company by a taxing authority in a jurisdiction
where the Company does not file Tax Returns that it is or may be subject to taxation by that jurisdiction. The unpaid Taxes of
the Company did not, as of the Company Balance Sheet Date, exceed the reserve for Tax liability (excluding any reserve for deferred
Taxes established to reflect timing differences between book and Tax income) set forth on the face of the financial statements
(rather than in any notes thereto). Since the Company Balance Sheet Date, neither the Company nor any of its subsidiaries has incurred
any liability for Taxes outside the ordinary course of business consistent with past custom and practice. As of the Closing Date,
the unpaid Taxes of the Company and its subsidiaries will not exceed the reserve for Tax liability (excluding any reserve for deferred
Taxes established to reflect timing differences between book and Tax income) set forth on the books and records of the Company.


 


(b)         No
material claim for unpaid Taxes has been made or become a Lien against the property of the Company or is being asserted against
the Company, no audit of any Tax Return of the Company is being conducted by a tax authority, and no extension of the statute of
limitations on the assessment of any Taxes has been granted by the Company and is currently in effect. The Company has withheld
and paid all Taxes required to have been withheld and paid in connection with amounts paid or owing to any employee, independent
contractor, creditor, shareholder or other third party.


 






     


     


    

 


(c)         As
used herein, “Taxes” shall mean all taxes of any kind, including, without limitation, those on or measured by
or referred to as income, gross receipts, sales, use, ad valorem, franchise, profits, license, withholding, payroll, employment,
excise, severance, stamp, occupation, premium, value added, property or windfall profits taxes, customs, duties or similar fees,
assessments or charges of any kind whatsoever, together with any interest and any penalties, additions to tax or additional amounts
imposed by any governmental authority, domestic or foreign. As used herein, “Tax Return” shall mean any return,
report or statement required to be filed with any governmental authority with respect to Taxes.


 


3.12.      Environmental
Matters. The Company is in compliance with all Environmental Laws in all material respects. The Company has not received any
written notice regarding any violation of any Environmental Laws, including any investigatory, remedial or corrective obligations
which, if determined adversely to the Company, would reasonably be expected to have, either individually or in the aggregate, a
Material Adverse Effect. The Company holds all Permits and authorizations required under applicable Environmental Laws, unless
the failure to hold such Permits and authorizations would not have a Material Adverse Effect on the Company, and is in compliance
with all terms, conditions and provisions of all such Permits and authorizations in all material respects. No releases of Hazardous
Materials have occurred at, from, in, to, on or under any real property currently or formerly owned, operated or leased by the
Company or any predecessor thereof and no Hazardous Materials are present in, on, about or migrating to or from any such property
which could result in any liability to the Company. The Company has not transported or arranged for the treatment, storage, handling,
disposal, or transportation of any Hazardous Material to any off-site location which could result in any liability to the Company.
The Company has no liability, absolute or contingent, under any Environmental Law that if enforced or collected would have a Material
Adverse Effect on the Company. There are no past, pending or threatened claims under Environmental Laws against the Company and
Company is not aware of any facts or circumstances that could reasonably be expected to result in a liability or claim against
the Company pursuant to Environmental Laws.


 


3.13.      Material
Agreements.


 


(a)         Schedule
3.13 lists the following contracts and other agreements (“Material Agreements”) to which the Company is
a party: (i) any agreement (or group of related agreements) for the lease of real or personal property, including capital leases,
to or from any person providing for annual lease payments in excess of $25,000; (ii) any licensing agreement, or any agreement
forming a partnership, strategic alliances, profit sharing or joint venture; (iii) any agreement (or group of related agreements)
under which it has created, incurred, assumed, or guaranteed any indebtedness for borrowed money in excess of $25,000, or under
which a security interest has been imposed on any of its Assets, tangible or intangible; (iv) any profit sharing, deferred compensation,
severance, or other material plan or arrangement for the benefit of its current or former officers, directors and managers or any
of the Company’s employees; (v) any employment or independent contractor agreement providing annual compensation in excess
of $25,000 or providing post-termination or severance payments or benefits or that cannot be cancelled without more than thirty
(30) days’ notice; (vi) any agreement with any current or former officer, director, shareholder, members, manager or affiliate
of the Company; (vii) any agreements relating to the acquisition (by merger, purchase of units or assets or otherwise) by the Company
of any operating business or material assets or the capital stock of any other person; (viii) any agreements for the sale of any
of the Assets of the Company, other than in the ordinary course of business; (ix) any outstanding agreements of guaranty, surety
or indemnification, direct or indirect, by the Company; (x) any royalty agreements, licenses or other agreements relating
to Intellectual Property (excluding licenses pertaining to “off-the-shelf” commercially available software used pursuant
to shrink-wrap or click-through license agreements on reasonable terms for a license fee of no more than $10,000); and (xi) any
other agreement under which the consequences of a default or termination could reasonably be expected to have a Material Adverse
Effect on the Company.


 


(b)         The
Company has made available to Parent either an original or a correct and complete copy of each written Material Agreement. Except
as set forth on Schedule 3.13 , with respect to each Material Agreement to which the Company is a party thereto: (i) the
agreement is the legal, valid, binding, enforceable obligation of the Company and is in full force and effect in all material respects,
subject to bankruptcy and equitable remedies exceptions; (ii) (A) the Company is not in material breach or default thereof and
(B) no event has occurred which, with notice or lapse of time, would constitute a material breach or default of, or permit termination,
modification, or acceleration under, the Material Agreement; and (iii) the Company has not repudiated any material provision of
the agreement.


 


3.14.      Material
Contract Defaults. The Company is not, or has not received any notice or has any Knowledge that any other party is, in Material
Contract Default under any Company Material Contract; and there has not occurred any event that with the lapse of time or the giving
of notice or both would constitute such a Material Contract Default. For purposes of this Agreement, a “Company Material
Contract” means any Contract that is effective as of the Closing Date to which the Company is a party (i) with expected
receipts or expenditures in excess of $25,000, (ii) requiring the Company to indemnify any person, (iii) granting exclusive
rights to any party, or (iv) evidencing indebtedness for borrowed or loaned money in excess of $25,000, including guarantees
of such indebtedness.


 


3.15.      Accounts
Receivable. All of the accounts receivable of the Company that are reflected on the Company Financial Statements or the accounting
records of the Company as of the Closing (collectively, the “Accounts Receivable”) represent or will represent
valid obligations arising from sales actually made or services actually performed in the ordinary course of business and are not
subject to any defenses, counterclaims, or rights of set off other than those arising in the ordinary course of business and for
which adequate reserves have been established. The Accounts Receivable are fully collectible to the extent not reserved for on
the balance sheet on which they are shown.


 






     


     


    

 


3.16.      Reserved.


 


3.17.      Intellectual
Property.


 


(i)         As
used in this Agreement, “Intellectual Property” means all right, title and interest in or relating to all intellectual
property, whether protected, created or arising under the laws of the United States or any other jurisdiction or under any international
convention, including, but not limited to the following: (a) service marks, trademarks, trade names, trade dress, logos and corporate
names (and any derivations, modifications or adaptations thereof), Internet domain names and Internet websites (and content thereof),
together with the goodwill associated with any of the foregoing, and all applications, registrations, renewals and extensions thereof
(collectively, “Marks”); (b) patents and patent applications, including all continuations, divisionals, continuations-in-part
and provisionals and patents issuing thereon, and all reissues, reexaminations, substitutions, renewals and extensions thereof
(collectively, “Patents”); (c) copyrights, works of authorship and moral rights, and all registrations, applications,
renewals, extensions and reversions thereof (collectively, “Copyrights”); (d) confidential and proprietary information,
trade secrets and non-public discoveries, concepts, ideas, research and development, technology, know-how, formulae, inventions
(whether or not patentable and whether or not reduced to practice), compositions, processes, techniques, technical data and information,
procedures, designs, drawings, specifications, databases, customer lists, supplier lists, pricing and cost information, and business
and marketing plans and proposals, in each case excluding any rights in respect of any of the foregoing that comprise or are protected
by Patents (collectively, “Trade Secrets”); and (e) Technology. For purposes of this Agreement, “Technology”
means all Software, information, designs, formulae, algorithms, procedures, methods, techniques, ideas, know-how, research and
development, technical data, programs, subroutines, tools, materials, specifications, processes, inventions (whether or not patentable
and whether or not reduced to practice), apparatus, creations, improvements and other similar materials, and all recordings, graphs,
drawings, reports, analyses, and other writings, and other embodiments of any of the foregoing, in any form or media whether or
not specifically listed herein. Further, for purposes of this Agreement, “Software” means any and all computer
programs, whether in source code or object code; databases and compilations, whether machine readable or otherwise; descriptions,
flow-charts and other work product used to design, plan, organize and develop any of the foregoing; and all documentation, including
user manuals and other training documentation, related to any of the foregoing.


 


(ii)        Schedule
3.17 sets forth a list and description of the Intellectual Property required for the Company to operate, or used or held for
use by the Company, in the operation of its business, including, but not limited to (a) all issued Patents and pending Patent applications,
registered Marks, pending applications for registration of Marks, unregistered Marks, registered Copyrights of the Company and
the record owner, registration or application date, serial or registration number, and jurisdiction of such registration or application
of each such item of Intellectual Property, (b) all Software developed by or for the Company and (c) any Software not exclusively
owned by the Company and incorporated, embedded or bundled with any Software listed in clause (b) above (except for commercially
available software and so-called “shrink wrap” software licensed to the Company on reasonable terms through commercial
distributors or in consumer retail stores for a license fee of no more than $10,000).


 


(iii)       The
Company is the exclusive owner of or has a valid and enforceable right to use all Intellectual Property listed for the Company
in Schedule 3.17 (and any other Intellectual Property required to be listed in  Schedule 3.17 ) as the same are used,
sold, licensed and otherwise commercially exploited by the Company, free and clear of all Liens, security interests, encumbrances
or any other obligations to others (other than obligations under the license agreements pursuant to which such Intellectual Property
is licensed to the Company), and no such Intellectual Property has been abandoned. The Intellectual Property owned by the Company
and the Intellectual Property licensed to it pursuant to valid and enforceable written license agreements include all of the Intellectual
Property necessary and sufficient to enable the Company to conduct its business in the manner in which such business is currently
being conducted. The Intellectual Property owned by the Company and its rights in and to such Intellectual Property are valid and
enforceable.


 


(iv)        The
Company has not received, and is not aware of, any written or oral notice of any reasonable basis for an allegation against the
Company of any infringement, misappropriation, or violation by the Company of any rights of any third party with respect to any
Intellectual Property, and the Company is not aware of any reasonable basis for any claim challenging the ownership, use, validity
or enforceability of any Intellectual Property owned, used or held for use by the Company. The Company does not have any knowledge
(a) of any third-party use of any Intellectual Property owned by or exclusively licensed to the Company, (b) that any third-party
has a right to use any such Intellectual Property, or (c) that any third party is infringing, misappropriating, or otherwise violating
(or has infringed, misappropriated or violated) any such Intellectual Property.


 


(v)         To
the Company’s Knowledge, the Company has not infringed, misappropriated or otherwise violated any Intellectual Property rights
of any third parties, and the Company is not aware of any infringement, misappropriation or violation of any third party rights
which will occur as a result of the continued operation of the Company as presently operated and/or the consummation of the Transactions.


 






     


     


    

 


(vi)        The
Company has taken adequate security measures to protect the confidentiality and value of its Trade Secrets (and any confidential
information owned by a third party to whom the Company has a confidentiality obligation).


 


(vii)       The
consummation of the Transactions will not adversely affect the right of the Company to own or use any Intellectual Property owned,
used or held for use by it.


  


3.18.      Manager
Recommendation. The Manager(s) of the Company has determined that the terms of the Transactions are fair to and in the best
interests of the shareholders of the Company.


 


3.19.      Undisclosed
Liabilities. The Company has no liabilities or monetary obligations of any nature (whether fixed or unfixed, secured or unsecured,
known or unknown and whether absolute, accrued, contingent, or otherwise) except for such liabilities or obligations reflected
or reserved against in the Company Financial Statements, incurred in the ordinary course of business after the Company Balance
Sheet Date, or disclosed in Schedule 3.19.


 


3.20.      No
Registration of Securities. The Company understands and acknowledges that except as set forth in this Agreement, the offering,
exchange and issuance of Exchange Consideration pursuant to this Agreement will not be registered under the Securities Act on the
grounds that the offering, sale, exchange and issuance of securities contemplated by this Agreement are exempt from registration
pursuant to Section 4(a)(2) of the Securities Act, and that Parent’s reliance upon such exemption is predicated in part
upon the Company’s and the Members’ representations herein and upon the representations contained in the Member Representation
Letters, the form of which is attached as Exhibit B to this Agreement.


 


3.21.      Parent
Information. The Company acknowledges that it has had access to the documents filed by Parent under the Exchange Act, since
the end of its most recently completed fiscal year to the date hereof, and has carefully reviewed the same. The Company further
acknowledges that Parent has made available to it the opportunity to ask questions of and receive answers from Parent’s officers
and directors concerning the terms and conditions of this Agreement and the business and financial condition of Parent, and the
Company has received to its satisfaction, such information about the business and financial condition of Parent and the terms and
conditions of the Agreement as it has requested. The Company has carefully considered the potential risks relating to Parent and
investing in the Exchange Consideration, and fully understands that such securities are speculative investments, which involve
a high degree of risk of loss of the Company and its Members’ entire investment. Among others, the Company has carefully
considered each of the risks identified under the caption “Risk Factors” in the Parent SEC Documents, which are incorporated
herein by reference.


 


3.22.      Full
Disclosure. All of the representations and warranties made by the Company in this Agreement, including the Company Disclosure
Schedules attached hereto, and all statements set forth in the certificates delivered by the Company at the Closing pursuant to
this Agreement, are true, correct and complete in all material respects and do not contain any untrue statement of a material fact
or omit to state any material fact necessary in order to make such representations, warranties or statements, in light of the circumstances
under which they were made, misleading. The copies of all documents furnished by the Company pursuant to the terms of this Agreement
are complete and accurate copies of the original documents. The schedules, certificates, and any and all other statements and information,
whether furnished in written or electronic form, to Parent or its representatives by or on behalf of any of the Company or its
Affiliates in connection with the negotiation of this Agreement and the transactions contemplated hereby do not contain any material
misstatement of fact or omit to state a material fact or any fact necessary to make the statements contained therein not misleading.


 


ARTICLE 4


REPRESENTATIONS
AND WARRANTIES OF PARENT


 


Parent represents
and warrants to the Company and the Members that, except as set forth in Parent Disclosure Schedule:


 


4.1.         Organization,
Standing, Corporate Power and Quotation of Common Stock. Parent and each of its Subsidiaries is duly organized, validly existing
and in good standing under the laws of the jurisdiction of its incorporation, and has the requisite corporate power and authority
and all government licenses, authorizations, Permits, consents and approvals required to own, lease and operate its properties
and carry on its business as now being conducted. Parent and each of its Subsidiaries is duly qualified or licensed to do business
and is in good standing in each jurisdiction in which the nature of its business or the ownership or leasing of its properties
makes such qualification or licensing necessary, other than in such jurisdictions where the failure to be so qualified or licensed
(individually or in the aggregate) would not have a Material Adverse Effect with respect to Parent. Parent has taken all steps
required to qualify shares of common stock of Parent, par value $0.002 (“Parent Common Stock”), to become quoted
on the OTC PINK under the corporate name and symbol described in Section 8.3(i), including filing of Form 211, establishment of
DTC eligibility and submission of all materials required by the OTC Markets Group for such quotation. If the Parent has no Subsidiaries,
all other references to the Subsidiaries or any of them in this Agreement, shall be disregarded.


 






     


     


    

 


4.2.         Subsidiaries.
The Subsidiaries of the Parent, and the authorized and outstanding capital stock of each are set forth on Schedule 4.2. All of
the outstanding capital stock of the Parent’s Subsidiaries are owned by Parent free and clear of all Liens. Other than as
set forth on Schedule 4.2, Parent does not own directly or indirectly, any equity or other ownership interest in any company, corporation,
partnership, joint venture or otherwise.


 


4.3.         Capital
Structure of Parent


 


As of the date of
this Agreement, the Parent’s authorized capital stock, the issued and outstanding shares of Parent Common Stock, issued and
outstanding shares of the Parent’s preferred stock and outstanding convertible notes, options, and warrants are set forth
on Schedule 4.3 and in the Parent SEC Documents, as defined below. Except as set forth on Schedule 4.3, all outstanding shares
of capital stock of Parent and its Subsidiaries are, and all shares which may be issued pursuant to this Agreement will be, when
issued, duly authorized, validly issued, fully paid and nonassessable, not subject to preemptive rights, and issued in compliance
with all applicable state and federal Laws concerning the issuance of securities. Except as set forth on Schedule 4.3 and the Parent
SEC Documents, (i) there are no outstanding securities, options, warrants, calls, rights, commitments, agreements, arrangements
or undertakings of any kind to which Parent or any of its Subsidiaries is a party or by which Parent or any of its Subsidiaries
is bound obligating Parent or any of its Subsidiaries to issue, deliver or sell, or cause to be issued, delivered or sold, additional
shares of capital stock or other equity securities of Parent or any of its Subsidiaries or obligating Parent or any of its Subsidiaries
to issue, grant, extend or enter into any such security, option, warrant, call, right, commitment, agreement, arrangement or undertaking;
(ii) there are no outstanding contractual obligations, commitments, understandings or arrangements of Parent or any of its Subsidiaries
to repurchase, redeem or otherwise acquire or make any payment in respect of any shares of capital stock of Parent or any of its
Subsidiaries; and (iii) there are no agreements or arrangements pursuant to which the Parent is or could be required to register
shares of Parent Preferred Stock or other securities under the Securities Act or other agreements or arrangements with or among
any security holders of the Parent with respect to securities of the Parent.


 


4.4.        Corporate
Authority; Noncontravention. Parent has all requisite corporate and other power and authority to enter into this Agreement
and to consummate the Transactions. The execution and delivery of this Agreement by Parent and the consummation by Parent of the
transactions contemplated hereby have been (or at Closing will have been) duly authorized by all necessary corporate action on
the part of Parent. This Agreement has been duly executed and when delivered by Parent, shall constitute a valid and binding obligation
of Parent, enforceable against Parent in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency
or other similar Laws affecting the enforcement of creditors’ rights generally or by general principles of equity. The execution
and delivery of this Agreement does not, and the consummation of the Transactions and compliance with the provisions hereof will
not, conflict with, or result in any breach or violation of, or Default (with or without notice or lapse of time, or both) under,
or give rise to a right of termination, cancellation or acceleration of or “put” right with respect to any obligation
or to loss of a material benefit under, or result in the creation of any Lien upon any of the properties or Assets of Parent under,
(i) the Certificate of Incorporation, Bylaws, or other charter documents of Parent, (ii) any loan or credit agreement, note, bond,
mortgage, indenture, lease or other agreement, instrument, Permit, concession, franchise or license applicable to Parent, its properties
or Assets, or (iii) subject to the governmental filings and other matters referred to in the following sentence, any judgment,
Order, decree, statute, Law, ordinance, rule, regulation or arbitration award applicable to Parent, its properties or Assets, other
than, in the case of clauses (ii) and (iii), any such conflicts, breaches, violations, Defaults, rights, losses or Liens that individually
or in the aggregate could not have a Material Adverse Effect with respect to Parent or could not prevent, hinder or materially
delay the ability of Parent to consummate the Transactions.


 


4.5.        Government
Authorization. No consent, approval, Order or authorization of, or registration, declaration or filing with, or notice to,
any Governmental Entity, is required by or with respect to Parent in connection with the execution and delivery of this Agreement
by Parent, or the consummation by Parent of the transactions contemplated hereby, except, with respect to this Agreement, any filings
under the Securities Act or the Exchange Act.


 


4.6.        SEC
Documents; Undisclosed Liabilities; Financial Statements.


 


(a)         Parent
has filed with the Securities and Exchange Commission (the “SEC”) all reports, schedules, forms, statements
and other documents as required under the Exchange Act and Parent has delivered or made available to the Company all reports, schedules,
forms, statements and other documents filed with the SEC (collectively, and in each case including all exhibits and schedules thereto
and documents incorporated by reference therein, the “Parent SEC Documents”). As of their respective dates,
the Parent SEC Documents complied in all material respects with the requirements of the Securities Act or the Exchange Act, as
the case may be, and the rules and regulations of the SEC promulgated thereunder applicable to such Parent SEC Documents. Except
to the extent revised or superseded by a subsequent filing with the SEC (a copy of which has been provided to the Company prior
to the date of this Agreement), none of the Parent SEC Documents contained any untrue statement of a material fact or omitted to
state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances
under which they were made, not misleading. The consolidated financial statements of Parent included in such Parent SEC Documents
comply as to form in all material respects with applicable accounting requirements and the published rules and regulations of the
SEC with respect thereto, have been prepared in accordance with GAAP (except, in the case of unaudited consolidated quarterly statements,
as permitted by Form 10-Q of the SEC) applied on a consistent basis during the periods involved (except as may be indicated in
the notes thereto) and fairly present the financial position of Parent as of the dates thereof and the results of operations and
changes in cash flows for the periods then ended (subject, in the case of unaudited quarterly statements, to normal year-end audit
adjustments as determined by Parent’s independent accountants). Except as set forth in the Parent SEC Documents, at the date
of the most recent financial statements of Parent included in the Parent SEC Documents, Parent has not incurred any liabilities
or monetary obligations of any nature (whether accrued, absolute, contingent or otherwise), which, individually, or in the aggregate,
could reasonably be expected to have a Material Adverse Effect on Parent.


 






     


     


    

 


(b)         Except
as disclosed in the Parent SEC Documents filed prior to the date hereof or as set forth in this Agreement, since December 31, 2015
(the “ Parent Balance Sheet Date ”), there has been no Material Adverse Effect with respect to Parent.


 


(c)         Except
as disclosed in the Parent SEC Documents filed prior to the date hereof or as provided in this Agreement, since the Parent Balance
Sheet Date, Parent has not issued, sold or otherwise disposed of, or agreed to issue, sell or otherwise dispose of, any capital
stock or any other security of Parent and, has not granted or agreed to grant any option, warrant or other right to subscribe for
or to purchase any capital stock or any other security of Parent or has incurred or agreed to incur any indebtedness for borrowed
money.


 


4.7.        Absence
of Certain Changes. Except as disclosed in the Parent SEC Documents filed prior to the date hereof or as set forth on Schedule
4.7, since the Parent Balance Sheet Date, Parent has conducted its business only in the ordinary course consistent with past practice
in light of its current business circumstances, and there is not and has not been any:


 


(a)         Material
Adverse Effect with respect to Parent;


 


(b)         event
which, if it had taken place following the execution of this Agreement, would not have been permitted by Section 6.1 without prior
consent of the Company;


 


(c)         condition,
event or occurrence which could reasonably be expected to prevent, hinder or materially delay the ability of Parent to consummate
the Transactions;


 


(d)         incurrence,
assumption or guarantee by Parent of any indebtedness for borrowed money other than in the ordinary course and in amounts and on
terms consistent with past practices;


 


(e)         creation
or other incurrence by Parent of any Lien on any asset other than in the ordinary course consistent with past practices;


 


(f)         labor
dispute, other than routine, individual grievances, or, to the Knowledge of Parent, any activity or proceeding by a labor union
or representative thereof to organize any employees of Parent or any lockouts, strikes, slowdowns, work stoppages or threats by
or with respect to such employees;


 


(g)         payment,
prepayment or discharge of liability other than in the ordinary course of business or any failure to pay any liability when due;


 


(h)         material
write-offs or write-downs of any Assets of Parent;


 


(i)         damage,
destruction or loss having, or reasonably expected to have, a Material Adverse Effect on Parent;


 


(j)         other
condition, event or occurrence which individually or in the aggregate could reasonably be expected to have a Material Adverse Effect
or give rise to a Material Adverse Effect with respect to Parent;


 


(k)         transaction
or commitment made, or any Contract or agreement entered into, by the Parent relating to its Assets or business (including the
acquisition or disposition of any Assets) or any relinquishment by the Parent or any Contract or other right, in either case, material
to the Parent, other than transactions and commitments in the ordinary course consistent with past practices and those contemplated
in this Agreement; or


 


(l)         agreement
or commitment to do any of the foregoing.


 


4.8.        Certain
Fees. No brokerage or finder’s fees or commissions are or will be payable by Parent to any broker, financial advisor
or consultant, finder, placement agent, investment banker, bank or other person with respect to the Transactions.


 


4.9.        Litigation;
Labor Matters; Compliance with Laws.


 






     


     


    

 


(a)         There
is no suit, action or proceeding or investigation pending or, to the Knowledge of Parent, threatened against or affecting Parent
or any basis for any such suit, action, proceeding or investigation that, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect with respect to Parent or prevent, hinder or materially delay the ability of Parent
to consummate the Transactions, nor is there any judgment, decree, injunction, rule or Order of any Governmental Entity or arbitrator
outstanding against Parent having, or which, insofar as reasonably could be foreseen by Parent, in the future could have, any such
effect.


 


(b)         Parent
is not a party to, or bound by, any collective bargaining agreement, Contract or other agreement or understanding with a labor
union or labor organization, nor is it the subject of any proceeding asserting that it has committed an unfair labor practice or
seeking to compel it to bargain with any labor organization as to wages or conditions of employment nor is there any strike, work
stoppage or other labor dispute involving it pending or, to its Knowledge, threatened, any of which could have a Material Adverse
Effect with respect to Parent.


 


(c)         The
conduct of the business of Parent complies with all statutes, Laws, regulations, ordinances, rules, judgments, Orders, decrees
or arbitration awards applicable thereto.


 


4.10.      Benefit
Plans


 


Except as disclosed
in the Parent SEC Documents, Parent is not a party to any Benefit Plan under which Parent currently has an obligation to provide
benefits to any current or former employee, officer or director of Parent.


 


4.11.      Tax
Returns and Tax Payments.


 


(a)         Parent
and each of its Subsidiaries has timely filed with the appropriate taxing authorities all Tax Returns required to be filed by it
(taking into account all applicable extensions). All such Tax Returns are true, correct and complete in all respects. All Taxes
due and owing by Parent and each of its Subsidiaries has been paid (whether or not shown on any Tax Return and whether or not any
Tax Return was required). Neither Parent nor any of its Subsidiaries is currently the beneficiary of any extension of time within
which to file any Tax Return or pay any Tax. No claim has ever been made in writing or otherwise addressed to Parent or any of
its Subsidiaries by a taxing authority in a jurisdiction where Parent does not file Tax Returns that it is or may be subject to
taxation by that jurisdiction. The unpaid Taxes of Parent did not, as of the Parent Balance Sheet Date, exceed the reserve for
Tax liability (excluding any reserve for deferred Taxes established to reflect timing differences between book and Tax income)
set forth on the face of the financial statements (rather than in any notes thereto). Since the Parent Balance Sheet Date, Parent
has not incurred any liability for Taxes outside the ordinary course of business consistent with past custom and practice. As of
the Closing Date, the unpaid Taxes of Parent and its Subsidiaries will not exceed the reserve for Tax liability (excluding any
reserve for deferred Taxes established to reflect timing differences between book and Tax income) set forth on the books and records
of Parent.


 


(b)         No
material claim for unpaid Taxes has been made or become a Lien against the property of Parent or any of its Subsidiaries or is
being asserted against Parent or any of its Subsidiaries, no audit of any Tax Return of Parent or any of its Subsidiaries is being
conducted by a tax authority, and no extension of the statute of limitations on the assessment of any Taxes has been granted by
Parent or any of its Subsidiaries and is currently in effect. Parent has withheld and paid all Taxes required to have been withheld
and paid in connection with amounts paid or owing to any employee, independent contractor, creditor, stockholder or other third
party.


 


4.12.      Environmental
Matters. Parent and each of its Subsidiaries is in compliance with all requisite Environmental Laws in all material respects.
Neither Parent nor any of its Subsidiaries has received any written notice regarding any violation of any Environmental Laws, including
any investigatory, remedial or corrective obligations, which, if determined adversely to Parent or any of its Subsidiaries, would
reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect. Parent and each its Subsidiaries
holds all Permits and authorizations required under applicable Environmental Laws, unless the failure to hold such Permits and
authorizations would not have a Material Adverse Effect on Parent, and is compliance with all terms, conditions and provisions
of all such Permits and authorizations in all material respects. No releases of Hazardous Materials have occurred at, from, in,
to, on or under any real property currently or formerly owned, operated or leased by Parent or any of its Subsidiaries or any predecessor
thereof and no Hazardous Materials are present in, on, about or migrating to or from any such property which could result in any
liability to Parent or any of its Subsidiaries. Neither Parent nor any of its Subsidiaries has transported or arranged for the
treatment, storage, handling, disposal, or transportation of any Hazardous Material to any off-site location which could result
in any liability to Parent or any of its Subsidiaries. Neither Parent nor any of its Subsidiaries has any liability, absolute or
contingent, under any Environmental Law that if enforced or collected would have a Material Adverse Effect on Parent or any of
its Subsidiaries. There are no past, pending or threatened claims under Environmental Laws against Parent or any of its Subsidiaries
and neither Parent nor any of its Subsidiaries is aware of any facts or circumstances that could reasonably be expected to result
in a liability or claim against Parent or any of its Subsidiaries pursuant to Environmental Laws.


 


4.13.      Material
Contract Defaults. The Annual Report on Form 10-K for the Parent for the year ended December 31, 2015 lists the Parent’s
Material Contracts. Parent is not, or has not received any notice or has any Knowledge that any other party is, in Material Contract
Default under any Parent Material Contract; and there has not occurred any event that with the lapse of time or the giving of notice
or both would constitute such a Material Contract Default. For purposes of this Agreement, a “Parent Material Contract”
means any Contract that is effective as of the Closing Date to which the Parent is a party (i) with expected receipts or expenditures
in excess of $5,000, (ii) requiring the Parent to indemnify any person, (iii) granting exclusive rights to any party, (iv) evidencing
indebtedness for borrowed or loaned money in excess of $5,000, including guarantees of such indebtedness, or under which a security
interest has been imposed on any of its Assets, tangible or intangible; (v) any agreement (or group of related agreements) for
the lease of real or personal property, including capital leases; (vi) any licensing agreement, or any agreement forming a partnership,
strategic alliances, profit sharing or joint venture; (vii) any profit sharing, deferred compensation, severance, or other material
plan or arrangement for the benefit of its current or former officers, directors and managers or any of the Parent’s employees;
(viii) any employment or independent contractor agreement providing post-termination or severance payments or benefits or that
cannot be cancelled without more than thirty (30) days’ notice; (ix) any agreement with any current or former officer, director,
shareholder, members, manager or affiliate of the Parent; (x) any agreements relating to the acquisition (by merger, purchase of
units or assets or otherwise) by the Parent of any operating business or material assets or the capital stock of any other person;
(xi) any agreements for the sale of any of the Assets of the Parent, other than in the ordinary course of business; (xii) any outstanding
agreements of guaranty, surety or indemnification, direct or indirect, by the Parent; (xiii) any royalty agreements, licenses
or other agreements relating to Intellectual Property (excluding licenses pertaining to “off-the-shelf” commercially
available software used pursuant to shrink-wrap or click-through license agreements on reasonable terms for a license fee of no
more than $5,000); and (xiv) any other agreement under which the consequences of a default or termination could reasonably be expected
to have a Material Adverse Effect on the Parent.


 






     


     


    

 


4.14.      Accounts
Receivable. All of the accounts receivable of Parent that are reflected in the Parent SEC Documents or the accounting records
of Parent as of the Closing (collectively, the “Parent Accounts Receivable”) represent or will represent valid
obligations arising from sales actually made or services actually performed in the ordinary course of business and are not subject
to any defenses, counterclaims, or rights of set off other than those arising in the ordinary course of business and for which
adequate reserves have been established. The Parent Accounts Receivable are fully collectible to the extent not reserved for on
the balance sheet on which they are shown.


 


4.15.      Properties.
Parent and each its Subsidiaries has valid land use rights for all real property that is material to its business and good, clear
and marketable title to all the tangible properties and tangible Assets reflected in the latest balance sheet as being owned by
Parent or acquired after the date thereof which are, individually or in the aggregate, material to Parent’s business (except
properties sold or otherwise disposed of since the date thereof in the ordinary course of business), free and clear of all Material
Liens, encumbrances, claims, security interest, options and restrictions of any nature whatsoever. Any real property and facilities
held under lease by Parent or its Subsidiaries are held by them under valid, subsisting and enforceable leases of which Parent
and each of its Subsidiaries is in compliance, except as could not, individually or in the aggregate, have or reasonably be expected
to result in a Material Adverse Effect.


 


4.16.      Intellectual
Property. Parent and each of its Subsidiaries owns or has valid rights to use the Trademarks, trade names, domain names, copyrights,
patents, logos, licenses and computer software programs (including, without limitation, the source codes thereto) that are necessary
for the conduct of its business as now being conducted. All of Parent’s and its Subsidiaries’ licenses to use Software
programs are current and have been paid for the appropriate number of users. To the Knowledge of Parent, none of Parent’s
or its Subsidiaries’ Intellectual Property infringe upon the rights of any third party that may give rise to a cause of action
or claim against Parent or each of its successors.


 


4.17.      Board
Determination. The Board of Directors of Parent has unanimously determined as of the Closing Date that the terms of the Transactions
are fair to and in the best interests of Parent and its stockholders.


 


4.18.      Due
Authorization. Parent represents that the issuance of the Exchange Consideration will be in compliance with the Corporations
Law of the Oklahoma Code and the Certificate of Incorporation and Bylaws of Parent. Except as set forth on Schedule 4.3, the Exchange
Consideration has been duly and validly authorized and, upon issuance in accordance with this Agreement, will be duly issued, fully
paid and nonassessable and free (and not issued or sold in violation) of statutory and contractual preemptive rights, resale rights,
rights of first refusal and similar rights, taxes, claims, liens, charges, encumbrances or other restrictions (other than as provided
herein and restrictions under federal and applicable state securities laws).


 


4.19.      Undisclosed
Liabilities. Other than as disclosed in the Parent SEC Documents, Parent has no liabilities or obligations of any nature (whether
fixed or unfixed, secured or unsecured, known or unknown and whether absolute, accrued, contingent, or otherwise).


 


4.20.      Full
Disclosure. All of the representations and warranties made by Parent in this Agreement, including the Parent Disclosure Schedules
attached hereto, and all statements set forth in the certificates delivered by Parent at the Closing pursuant to this Agreement,
are true, correct and complete in all material respects and do not contain any untrue statement of a material fact or omit to state
any material fact necessary in order to make such representations, warranties or statements, in light of the circumstances under
which they were made, misleading. The copies of all documents furnished by Parent pursuant to the terms of this Agreement are complete
and accurate copies of the original documents. The schedules, certificates, and any and all other statements and information, whether
in written or electronic form, to the Company or its representatives by or on behalf of Parent or their Affiliates in connection
with the negotiation of this Agreement and the transactions contemplated hereby do not contain any material misstatement of fact
or omit to state a material fact or any fact necessary to make the statements contained therein not misleading.


 






     


     


    

 


4.21 Capital Structure
of the Parent. The Parent confirms that the capital structure of the Parent, as is set forth on Schedule 4.3 attached
hereto, on a fully diluted basis, is in all respects true and correct.


 


ARTICLE 5


COVENANTS OF THE
COMPANY


 


5.1.        Conduct
of the Company Business. From the date of this Agreement and until the Closing Date, or until the prior termination of this Agreement,
the Company shall not, unless agreed to in writing by Parent:


 


(a)         engage
in any transaction, except in the normal and ordinary course of business, or create or suffer to exist any lien or other encumbrance
upon any of its assets or which will not be discharged in full prior to the Closing Date;


 


(b)         sell,
assign or otherwise transfer any of its assets, or cancel or compromise any debts or claims relating to its assets, other than
for fair value, in the ordinary course of business, and consistent with past practice;


 


(c)         fail
to use reasonable efforts to preserve intact its present business organizations, keep available the services of its employees and
preserve its material relationships with customers, suppliers, licensors, licensees, distributors and others, to the end that its
good will and ongoing business not be impaired prior to the Closing Date;


 


(d)         intentionally
permit any Material Adverse Effect to occur with respect to the Company;


 


(e)         make
any material change in its accounting or bookkeeping methods, principles or practices, except as required by GAAP; or


 


(f)         authorize
any, or commit or agree to take any of, the foregoing actions.


 


5.2.        Satisfaction
of Conditions Precedent. From and after the date of this Agreement until the earlier of the Closing Date or the termination of
this Agreement in accordance with its terms, the Company will use its commercially reasonable efforts to satisfy or cause to be
satisfied all the conditions precedent that are set forth in Article 8, and the Company will use its commercially reasonable
efforts to cause the Transactions to be consummated.


 


5.3.        No
Other Negotiations. As of the date of this Agreement, the Company has not entered into any agreement or understanding with, and
is not engaging in any discussions with any third party concerning an Alternative Acquisition including, without limitation, any
agreement or understanding that would require the Company to notify any third party of the terms of this Agreement. From and after
the date of this Agreement until the earlier of the Closing Date or the termination of this Agreement in accordance with its terms,
the Company shall not, directly or indirectly, (a) initiate, solicit, encourage, negotiate, accept or discuss any transaction
or series of transactions with any Person, other than Parent and its Affiliates involving any Alternative Acquisition, (b) provide
information with respect to the Company to any Person, other than Parent and its Affiliates, relating to a possible Alternative
Acquisition by any Person, other than Parent and its Affiliates, (c) enter into an agreement with any Person, other than Parent
and its Affiliates, providing for a possible Alternative Acquisition, or (d) make or authorize any statement, recommendation
or solicitation in support of any possible Alternative Acquisition by any Person, other than by Parent and its Affiliates.


 


If the Company receives
any unsolicited offer, inquiry or proposal to enter into discussions or negotiations relating to an Alternative Acquisition, or
that could reasonably expected to lead to an Alternative Acquisition, or any request for nonpublic information relating to the
Company, the Company shall promptly notify Parent thereof, including information as to the identity of the party making any such
offer, inquiry or proposal and the specific terms of such offer, inquiry or proposal, as the case may be, and shall keep Parent
promptly informed of any developments with respect to same.


 


5.4.        Access.
The Company shall afford to Parent, and to the officers, employees, accountants, counsel, financial advisors and other representatives
of Parent, reasonable access during normal business hours during the period prior to the Closing Date or the termination of this
Agreement to all of the Company’s properties, books, contracts, commitments, personnel and records and, during such period,
the Company shall furnish promptly to Parent, (a) a copy of each report, schedule, and other documents filed by it during
such period pursuant to the requirements of federal or state securities Laws and (b) all other information concerning its
business, properties and personnel as Parent or its representatives may reasonably request.


 






     


     


    

 


5.5.        Notification
of Certain Matters. The Company shall give prompt notice to Parent of (i) the occurrence or non-occurrence of any event the
occurrence or non-occurrence of which would cause any Company representation or warranty contained in this Agreement to be untrue
or inaccurate at or prior to the Closing Date and (ii) any failure of the Company to comply with or satisfy any covenant,
condition or agreement to be complied with or satisfied by it hereunder; provided, however, that the delivery of any notice pursuant
to this Section 5.5 shall not limit or otherwise affect the remedies available hereunder to Parent.


 


ARTICLE 6


COVENANTS OF THE PARENT


 


6.1.        Conduct
of the Parent Business. From the date of this Agreement and until the Closing Date, or until the prior termination of this Agreement,
Parent shall not, unless agreed to in writing by the Company:


 


(a)         engage
in any transaction, except in the normal and ordinary course of business, or create or suffer to exist any lien or other encumbrance
upon any of its assets or which will not be discharged in full prior to the Closing Date;


 


(b)         sell,
assign or otherwise transfer any of its assets, or cancel or compromise any debts or claims relating to its assets, other than
for fair value, in the ordinary course of business, and consistent with past practice;


 


(c)         fail
to use reasonable efforts to preserve intact its present business organizations, keep available the services of its employees and
preserve its material relationships with customers, suppliers, licensors, licensees, distributors and others, to the end that its
good will and ongoing business not be impaired prior to the Closing Date;


 


(d)         intentionally
permit any Material Adverse Effect to occur with respect to the Parent;


 


(e)         make
any material change with respect in its accounting or bookkeeping methods, principles or practices, except as required by GAAP;
or


 


(f)         authorize
any, or commit or agree to take any of, the foregoing actions.


 


6.2.        Access.
Parent shall afford to the Company, and to the officers, employees, accountants, counsel, financial advisors and other representatives
of the Company, reasonable access during normal business hours during the period prior to the Closing Date or the termination of
this Agreement to all of the Parent’s properties, books, contracts, commitments, personnel and records and, during such period,
the Parent shall furnish promptly to the Company, (a) a copy of each report, schedule, registration statements and other documents
filed by it during such period pursuant to the requirements of federal or state securities Laws and (b) all other information
concerning its business, properties and personnel as the Company or its representatives may reasonably request.


 


6.3.        Notification
of Certain Matters. Parent shall give prompt notice to the Company of (i) the occurrence or non-occurrence of any event the
occurrence or non-occurrence of which would cause any Parent representation or warranty contained in this Agreement to be untrue
or inaccurate at or prior to the Closing Date and (ii) any failure of Parent to comply with or satisfy any covenant, condition
or agreement to be complied with or satisfied by it hereunder; provided, however, that the delivery of any notice pursuant to this
Section 6.3 shall not limit or otherwise affect the remedies available hereunder to the Company.


 


6.4.        Director
and Officer Appointments. As of the Closing Date, Parent shall have taken all action to cause (a) the persons as set forth on Schedule
6.4 to be appointed Parent’s directors and officers, and (b) the current officers and directors of Parent as set forth on
Schedule 6.4 to resign from Parent.


 


6.5.        Satisfaction
of Conditions Precedent. During the term of this Agreement, Parent will use its commercially reasonable efforts to satisfy or cause
to be satisfied all the conditions precedent that are set forth in Article 8, and Parent will use its commercially reasonable
efforts to cause the Transactions to be consummated.


 


6.6         Delivery
of Certificates for Exchange Consideration. Within 10 business days of the Closing, the Parent shall deliver or cause to be
delivered to the Members certificates for the Exchange Consideration.


 


6.7         No
Other Negotiations. As of the date of this Agreement, the Parent has not entered into any agreement or understanding with,
and is not engaging in any discussions with any third party concerning an Alternative Acquisition including, without limitation,
any agreement or understanding that would require the Parent to notify any third party of the terms of this Agreement. From and
after the date of this Agreement until the earlier of the Closing Date or the termination of this Agreement in accordance with
its terms, the Parent shall not, directly or indirectly, (a) initiate, solicit, encourage, negotiate, accept or discuss any Alternative
Acquisition, (b) provide information with respect to the Parent to any Person, other than Company and its Affiliates, relating
to a possible Alternative Acquisition by any Person, other than Company and its Affiliates, (c) enter into an agreement with any
Person, other than Company and its Affiliates, providing for a possible Alternative Acquisition, or (d) make or authorize any
statement, recommendation or solicitation in support of any possible Alternative Acquisition by any Person, other than by Company
and its Affiliates.


 






     


     


    

 


If the Parent receives
any unsolicited offer, inquiry or proposal to enter into discussions or negotiations relating to an Alternative Acquisition, or
that could reasonably expected to lead to an Alternative Acquisition, or any request for nonpublic information relating to the
Parent, the Parent shall promptly notify Company thereof, including information as to the identity of the party making any such
offer, inquiry or proposal and the specific terms of such offer, inquiry or proposal, as the case may be, and shall keep Company
promptly informed of any developments with respect to same.


 


ARTICLE 7


COVENANTS OF PARENT
AND THE COMPANY


 


7.1.        Notices
of Certain Events. The Company and Parent shall promptly notify each party of:


 


(a)         any
notice or other communication from any Person alleging that the consent of such Person is or may be required in connection with
the Transactions;


 


(b)         any
notice or other communication from any Governmental Entity in connection with the Transactions; and


 


(c)         any
actions, suits, claims, investigations or proceedings commenced or, to its Knowledge, threatened against, relating to or involving
or otherwise affecting such party that, if pending on the date of this Agreement, would have been required to be disclosed pursuant
to Articles 3 or 4 or that relate to the consummation of the Transactions or any other development causing a breach of any
representation or warranty made by a party hereunder. Delivery of notice pursuant to this Section 7.1 shall not limit or otherwise
affect remedies available to any party hereunder.


 


7.2.        Public
Announcements. No party shall have the right to issue any press release or other public statement with respect to this Agreement
or the transactions contemplated herein without the prior written consent of each other party (not to be unreasonably withheld,
delayed, denied or conditioned), except as required by Law.


 


7.3.        Transfer
Taxes. Parent and the Company shall cooperate in the preparation, execution and filing of all returns, questionnaires, applications
or other documents regarding any real property transfer or gains, sales, use, transfer, value added, stock transfer and stamp taxes,
any transfer, recording, registration and other fees, and any similar taxes which become payable in connection with the transactions
contemplated hereby that are required or permitted to be filed on or before the Closing Date. Parent and the Company agree that
the Company will pay any real property, transfer or gains tax, stamp tax, stock transfer tax, or other similar tax imposed on the
Transactions or the surrender of the Membership Interests pursuant thereto (collectively, “Transfer Taxes”), excluding
any Transfer Taxes as may result from the transfer of beneficial interests in the Membership Interests other than as a result of
the transactions contemplated under this Agreement, and any penalties or interest with respect to the Transfer Taxes. The Company
agrees to cooperate with Parent in the filing of any returns with respect to the Transfer Taxes.


 


7.4.        Reasonable
Efforts. Without derogating from Section 10.16 below, the parties further agree to use commercially reasonable efforts to
take, or cause to be taken, all actions, and to do, or cause to be done, and to assist and cooperate with the other parties in
doing, all things necessary, proper or advisable to consummate and make effective, and to satisfy all conditions to, in the most
expeditious manner practicable, the Transactions, including (i) the obtaining of all other necessary actions or nonactions,
waivers, consents, licenses, Permits, authorizations, Orders and approvals from Governmental Entities and the making of all other
necessary registrations and filings, (ii) the obtaining of all consents, approvals or waivers from third parties related to
or required in connection with the Transactions or required to prevent a Material Adverse Effect on the Company from occurring
prior to or after the Closing Date, (iii) the satisfaction of all conditions precedent to the parties’ obligations hereunder,
and (iv) the execution and delivery of any additional instruments necessary to consummate the Transactions contemplated by,
and to fully carry out the purposes of, this Agreement.


 


7.5.        Fees
and Expenses. Each party will be responsible for all of the legal, accounting and other expenses incurred by such party hereto
in connection with the Transactions.


 


7.6.        Regulatory
Matters and Approvals. Each of the Members, the Company and the Parent will give any notices to, make any filings with, and use
its commercially reasonable efforts to obtain any authorizations, consents, and approvals of governments and governmental agencies
in connection with the matters referred to in Sections 2.3(i), 3.5 and 4.5 above, respectively.


 


7.7.        Transfer
Restrictions.


 


(a)         The
Company realizes that the Exchange Consideration is not registered under the Securities Act, or any foreign or state securities
Laws. The Company agrees that the Exchange Consideration will and may not be sold, offered for sale, pledged, hypothecated, or
otherwise transferred (collectively, a “Transfer”) except in compliance with the Securities Act, if applicable,
and applicable foreign and state securities Laws. The Company understands that the Exchange Consideration can only be Transferred
pursuant to registration under the Securities Act or pursuant to an exemption therefrom. The Company understands that to Transfer
the Exchange Consideration may require in some jurisdictions specific approval by the appropriate governmental agency or commission
in such jurisdiction.


 






     


     


    

 


(b)         To
enable Parent to enforce the transfer restrictions contained in Section 7.7(a), the Company hereby consents to the placing
of legally required legends upon, and stop-transfer orders with the transfer agent of the Common Stock with respect to the Exchange
Consideration, including, without limitation, the following:


 


THESE SECURITIES HAVE NOT BEEN
REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION
FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE
OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE
STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL
BE REASONABLY ACCEPTABLE TO THE COMPANY. THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT SECURED
BY SUCH SECURITIES.


 


7.8.        Current
Report. Parent shall file a Current Report on Form 8-K with the SEC within four (4) business days of the Closing Date containing
information about the Transactions and pro forma financial statements of Parent and the Company and audited financial statements
of the Company as required by Regulation S-K under the Securities Act (the “8-K Report”). The Company agrees
to provide any necessary information for preparation of 8-K Report.


 


ARTICLE 8


CONDITIONS TO CLOSING


 


8.1.        Condition
to Obligation of Each Party to Effect the Transactions. The respective obligations of Parent, each Member and the Company to consummate
the transactions contemplated herein are subject to the satisfaction or waiver in writing at or prior to the Closing Date of the
following conditions.


 


(a)         No
Injunctions. No temporary restraining Order, preliminary or permanent injunction issued by any court of competent jurisdiction
preventing or prohibiting the consummation of the Transactions contemplated herein shall be in effect; provided, however, that
each of Parent and the Company shall have used its commercially reasonable efforts to prevent the entry of such Orders or injunctions
and to appeal as promptly as possible any such Orders or injunctions and to appeal as promptly as possible any such Orders or injunctions
that may be entered.


 


(b)         Member
Representation Letters. Except those Members set forth on the signature page to this Agreement who have indicated that they
are not an “accredited investor,” each Member, or its designee(s) as the case may be, shall have executed and delivered
to Parent and Company a member representation letter in substantially the form attached hereto as Exhibit B, and Parent
and Company shall be reasonably satisfied that the issuance of Parent Preferred Stock pursuant to the Transactions is exempt from
the registration requirements of the Securities Act.


 


(c)Conversion
Agreement of Holders of Parent Preferred Shares. All holders of the Parent Preferred Stock and the Members, and/or their designees,
shall have executed an agreement with the Parent, in substantially the form attached hereto as Exhibit C, pursuant to which
all shares of Parent Preferred Stock, including the Parent Preferred Stock to be acquired by Members pursuant to this Agreement,
will automatically convert to Parent Common Stock upon the Parent’s effectuation of any corporate action (the “Capitalization
Adjustment”) that has the effect of allowing the Parent to issue Parent Common Stock, on a fully diluted basis, all shares
of Parent Common Stock into which all Parent Preferred Stock are convertible.


 


(d)Concurrent
Required Agreements. Company will have entered into a binding letter of intent or licensing agreement between the Company and
North Dakota State University (“NDSU”) concerning an exclusive or nonexclusive license to certain intellectual
property concerning cyclohexasilane or other silicon-based materials created by NDSU. The Company will also have made mutually
agreeable, satisfactory progress on a joint development agreement (the “Joint Development Agreement”) toll manufacturing
agreement, or other contract by and between the Company and one or more companies that may lead to further commercialization of
cyclohexasilane or other silicon-based materials.


 






     


     


    

 


8.2        Additional
Conditions to Obligations of Parent. The obligations of Parent to consummate the Transactions are also subject to the satisfaction
or waiver in writing at or prior to the Closing Date of the following conditions.


 


(a)         Representations
and Warranties. The representations and warranties of the Company and each Member contained in this Agreement and in any certificate
or other writing delivered to Parent pursuant hereto shall be true and correct on and as of the Closing Date with the same force
and effect as if made on and as of the Closing Date, and Parent shall have received a certificate to such effect signed by the
President and the Chief Executive Officer of the Company.


 


(b)         Agreements
and Covenants. The Company and each Member shall have performed or complied with all agreements and covenants required by this
Agreement to be performed or complied with by them on or prior to the Closing Date, and Parent shall have received a certificate
to such effect signed by the President and Chief Executive Officer of the Company.


 


(c)         Certificate
of Manager The Company shall have delivered to Parent a certificate executed by the Manager(s) of the Company certifying: (i) actions
duly adopted by the Manager(s) of the Company authorizing entrance into this Agreement and the Transactions; (ii) the Company
Organization Documents as in effect immediately prior to the Closing Date, including all amendments thereto; and (iii) the
incumbency of the managers of the Company executing this Agreement and all agreements and documents contemplated hereby.


 


(d)         Consents
Obtained. All consents, waivers, approvals, authorizations or Orders required to be obtained, and all filings required to be
made, by the Company for the authorization, execution and delivery of this Agreement and the consummation by it of the transactions
contemplated hereby shall have been obtained and made by the Company, except for such consents, waivers, approvals, authorizations
and Orders, and such filings, which would not be reasonably likely to have a Material Adverse Effect on the Company.


 


(e)         Absence
of Material Adverse Effect. Since the date of this Agreement, there shall not have been any Material Adverse Effect on the
Company other than any change that shall result from general economic conditions or conditions generally affecting the industry
in which the Company conducts operations.


 


(f)         Company
Financial Statements. Parent shall have received from the Company the Company Financial Statements and pro forma financial
statements for the periods and in form and content required to be included in the 8-K Report.


 


(g)         Delivery
of Stock Certificates. Each Member shall have delivered to the Parent (i) certificates representing the Membership Interests,
together with a stock power (or other proof of signature reasonably acceptable to the Company’s transfer agent or the Company)
for the transfer of the Membership Interests to the Parent or (ii) such other proof of ownership as shall be reasonably acceptable
to the Parent;


 


(h)        Reserved.


 


(i)         Reserved.


 


(j)         Membership
Interests Lockup. As of the Closing Date, the holders of One Hundred (100) Membership Interests (which are exchangeable into
Parent Preferred Stock pursuant to the terms of this Agreement) as set forth on Schedule 8.2(J) shall have entered into
a lockup agreement in substantially the form attached hereto as Exhibit D and which shall terminate after the 1st
anniversary of the Closing Date.


 


8.3         Additional
Conditions to Obligations of the Company and the Members. The obligations of the Company and each Member to consummate the Transactions
are also subject to the satisfaction or waiver in writing at or prior to the Closing Date of the following conditions.


 


(a)         Representations
and Warranties. The representations and warranties of Parent contained in this Agreement and in any certificate or other writing
delivered to the Company pursuant hereto shall be true and correct on and as of the Closing Date with the same force and
effect as if made on and as of the Closing Date, and the Company shall have received a certificate to such effect signed by the
President and the Chief Executive Officer of Parent.


 


(b)         Agreements
and Covenants. Parent shall have performed or complied with all agreements and covenants required by this Agreement to be performed
or complied with by them on or prior to the Closing Date, and the Company shall have received a certificate to such effect signed
by the President and Chief Executive Officer of Parent.


 


(c)         Certificate
of Parent Officer. Parent shall have delivered to the Company a certificate executed by an Officer of Parent certifying:
(i) resolutions duly adopted by the Board of Directors of Parent authorizing this Agreement and the Transactions (including the
authorizations described in Section 4.18 above); (ii) the Certificate of Incorporation and Bylaws of Parent as in effect immediately
prior to the Closing Date, including all amendments thereto; and (iii) the incumbency of the officers of Parent executing this
Agreement and all agreements and documents contemplated hereby.


 






     


     


    

 


(d)         Consents
Obtained. All consents, waivers, approvals, authorizations or Orders required to be obtained, and all filings required to be
made, by Parent for the authorization, execution and delivery of this Agreement and the consummation by it of the transactions
contemplated hereby shall have been obtained and made by Parent, except for such consents, waivers, approvals, authorizations and
Orders, and such filings, which would not be reasonably likely to have a Material Adverse Effect on Parent.


 


(e)         Absence
of Material Adverse Effect. Since the date of the this Agreement, there shall not have been any Material Adverse Effect on
Parent, other than any change that shall result from general economic conditions or conditions generally affecting the industry
in which Parent conducts operations.


 


(f)         Reserved.


 


(g)         Officers
and Directors. Parent shall have delivered to the Company, in evidence of appointment of those new directors and officers as
further described in Section 6.4. Parent shall also have delivered to the Company a letter of resignation executed by each Parent
officer and director further described in Section 6.4 to be effective upon the Closing Date.


 


(h)         No
Liabilities. As of the Closing Date, except as disclosed in the Parent SEC Documents, Parent shall have no actual or contingent
liabilities, and Parent will have no other obligations of any nature (whether fixed or unfixed, secured or unsecured, known or
unknown and whether absolute, accrued, contingent, or otherwise) (including, without limitation, any Contracts), except for its
obligations incurred under this Agreement.


 


(i)         Common
Stock. As of the Closing Date, the Parent Common Stock shall be eligible for clearance through the book-entry system of The
Depository Trust Corporation and Parent will have filed all materials and fulfilled all requirements for the Parent Common Stock
to be quoted on the OTC PINK under the name “3DIcon Corporation” under the symbol “TDCP” or such other
symbol that is acceptable to the Company.


 


(j)         Exchange
Act Reporting. Parent will have made all required filings with the SEC under the Exchange Act, and such filings will have complied
in all material respects with applicable requirements under the Exchange Act.


  


(k)         Additional
Deliveries. Parent will have delivered to the Company, on or prior to the Closing Date, (i) a good standing certificates
for Parent from the State of Oklahoma, dated within 5 days of the Closing Date, and (ii) such other documents as the Company
may reasonably request.


 


(l)Management
Lockup. As of the Closing Date, certain members of the Parent’s management identified on Schedule 8.2(j) shall
have entered into a lockup agreement in substantially the form attached hereto as Exhibit D and which shall terminate on
the 1st anniversary of the Closing Date.


 


ARTICLE 9


TERMINATION


 


9.1.        Termination.
This Agreement may be terminated at any time prior to the Closing Date:


 


(a)         by
mutual written agreement of the Company and Parent duly authorized by the Boards of Directors of the Company and Parent;


 


(b)         by
either the Company or Parent, if the other party (which, in the case of Company, shall mean Company or any Member) has breached
any representation, warranty, covenant or agreement of such other party set forth in this Agreement and such breach has resulted
or can reasonably be expected to result in a Material Adverse Effect on such other party or would prevent or materially delay the
consummation of the Transactions;


 


(c)         by
any party, if all the conditions to the obligations of such party for Closing the Transactions shall not have been satisfied or
waived on or before the Final Date (as defined below) other than as a result of a breach of this Agreement by the terminating party;
or


 


(d)         by
any party, if a permanent injunction or other Order by any Federal or state court which would make illegal or otherwise restrain
or prohibit the consummation of the Transactions shall have been issued and shall have become final and nonappealable;


 


As used
herein, the “Final Date” shall be August 31, 2016.


 






     


     


    

 


9.2.        Notice
of Termination. Any termination of this Agreement under Section 9.1 above will be effective immediately upon by the delivery
of written notice of the terminating party to the other parties hereto specifying with reasonable particularity the reason for
such termination.


 


9.3.        Effect
of Termination. In the case of any termination of this Agreement as provided in this Section 9, this Agreement shall be of
no further force and effect and nothing herein shall relieve any party from liability for any breach of this Agreement.


 


9.4.        Termination
and Rescission Option. So long as all parties hereto cooperate in good faith to take all actions necessary to effectuate the Capitalization
Adjustment, which by execution hereof all parties agree to do, in the event the Capitalization Adjustment is not completed by March
31, 2017, which date shall be automatically extended by sixty (60) days in the event Parent is actively proceeding with the SEC
or any other applicable regulatory body to effectuate the Capitalization Adjustment, at the sole option of the majority holders
of the Exchange Consideration, this Agreement will be terminated and rescinded. Upon exercise of the option to terminate and rescind,
the Members shall surrender for cancellation all Exchange Consideration and Parent shall surrender and return Membership Interests
to the Members. All actions taken pursuant to this Agreement, including the appointment of officers and directors shall also become
void, ab initio, and the Company and Parent shall cease to be a consolidated company.


 


ARTICLE 10


GENERAL PROVISIONS


 


10.1.      Notices.
All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (a) upon personal delivery
to the party to be notified; (b) when sent by confirmed facsimile if sent during normal business hours of the recipient, if
not, then on the next business day; (c) five days after having been sent by registered or certified mail, return receipt requested,
postage prepaid; or (d) two days after deposit with a nationally recognized overnight courier, specifying not later than two
day delivery, with written verification of receipt. All communications shall be sent to the parties at the following addresses
or facsimile numbers specified below (or at such other address or facsimile number for a party as shall be designated by ten days
advance written notice to the other parties hereto):


 


		(a)	If to Parent:



 


3DICON CORPORATION


6804 South Canton Avenue, Suite 150


Tulsa, Oklahoma 74136


 


		(b)	If to the Company or any Member:



 


CORETEC INDUSTRIES LLC


505 Broadway North, Suite 208


Fargo, North Dakota 58102


 


With copies to (which shall
not constitute notice):


 


Sichenzia Ross Friedman Ference LLP


61 Broadway


New York, New York 10006


Attn: Gregory Sichenzia, Esq.


Fax: (212) 930-9725


 


The Company hereby
undertakes to forward immediately (by the means set forth in Section 10.1(a), (b), (c) or (d) above) to any Member any notice
provided to it by the Parent to such Member in accordance with this Section 10.1 to the address of such Member as appears on the
Company’s shareholder register, provided that any such delivery by the Parent to such Member shall be deemed effective on
the day that is twice the number of days (or business days, as applicable) set forth in Section 10.1(b), (c) or (d) above.


 


10.2.      Amendment.
To the extent permitted by law, this Agreement may be amended by a subsequent writing signed by each of the parties upon the approval
of the Boards of Directors of the Parent and the Managing Members of the Company.


 


10.3.      Waiver.
At any time prior to the Closing, any party hereto may with respect to any other party hereto (a) extend the time for performance
of any of the obligations or other acts, (b) waive any inaccuracies in the representations and warranties contained herein
or in any document delivered pursuant hereto, or (c) waive compliance with any of the agreements or conditions contained herein.
Any such extension or waiver shall be valid if set forth in an instrument in writing signed by the party or parties to be bound
thereby.


 






     


     


    

 


10.4.      Failure
or Indulgence Not Waiver; Remedies Cumulative. No failure or delay on the part of any party hereto in the exercise of any right
hereunder shall impair such right or be construed to be a waiver of, or acquiescence in, any breach of any representation, warranty
or agreement herein, nor shall any single or partial exercise of any such right preclude other or further exercise thereof or of
any other rights. Except as otherwise provided hereunder, all rights and remedies existing under this Agreement are cumulative
to, and not exclusive of, any rights or remedies otherwise available.


 


10.5.      Headings.
The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation
of this Agreement.


 


10.6.      Severability.
If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of Law, or public
policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the
economic or legal substance of the transactions contemplated hereby is not affected in any manner adverse to any party. Upon such
determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate
in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible, in a mutually
acceptable manner, to the end that transactions contemplated hereby are fulfilled to the extent possible.


 


10.7.      Entire
Agreement. This Agreement (including the Company Disclosure Schedule and the Parent Disclosure Schedule together with the Transaction
Documents and the exhibits and schedules attached hereto and thereto and the certificates referenced herein) constitutes the entire
agreement and supersedes all prior agreements and undertakings both oral and written, among the parties, or any of them, with respect
to the subject matter hereof and, except as otherwise expressly provided herein.


 


10.8.      Assignment.
No party may assign this Agreement or assign its respective rights or delegate their duties (by operation of Law or otherwise),
without the prior written consent of the other parties. This Agreement will be binding upon, inure to the benefit of and be enforceable
by the parties and their respective successors and permitted assigns.


 


10.9.      Parties
In Interest. This Agreement shall be binding upon and inure solely to the benefit of each party hereto and their permitted assigns
and respective successors, and nothing in this Agreement, express or implied, is intended to or shall confer upon any other Person
any right, benefit or remedy of any nature whatsoever under or by reason of this Agreement, including, without limitation, by way
of subrogation.


 


10.10.   Governing
Law. This Agreement will be governed by, and construed and enforced in accordance with the Laws of the State of New York as applied
to Contracts that are executed and performed in New York, without regard to the principles of conflicts of Law thereof. Each party
agrees that all legal proceedings concerning the interpretations, enforcement and defense of the Transactions and any other Transaction
Documents shall be commenced exclusively in the state and federal courts sitting in the County of New York.


 


10.11.   Counterparts.
This Agreement may be executed simultaneously in two or more counterparts, any one of which need not contain the signatures of
more than one party, but all such counterparts taken together will constitute one and the same Agreement. This Agreement, to the
extent delivered by means of a facsimile machine or electronic mail (any such delivery, an “Electronic Delivery”),
shall be treated in all manner and respects as an original agreement or instrument and shall be considered to have the same binding
legal effect as if it were the original signed version thereof delivered in person. At the request of any party hereto, each other
party hereto shall re-execute original forms hereof and deliver them in person to all other parties. No party hereto shall raise
the use of Electronic Delivery to deliver a signature or the fact that any signature or agreement or instrument was transmitted
or communicated through the use of Electronic Delivery as a defense to the formation of a contract, and each such party forever
waives any such defense, except to the extent such defense related to lack of authenticity.


 


10.12.   Attorneys’
Fees. If any action or proceeding relating to this Agreement, or the enforcement of any provision of this Agreement is brought
by a party hereto against any party hereto, the prevailing party shall be entitled to recover reasonable attorneys’ fees,
costs and disbursements (in addition to any other relief to which the prevailing party may be entitled).


 


10.13.   Representation.
Each party to this Agreement, severally, and not jointly and only as to itself, represents that it: (a) has been represented in
connection with the negotiation and preparation of this Agreement by counsel of that party’s choosing; (b) has authority
to enter into and sign the Agreement; and (c) enters into and signs the same by its own free will.


 


10.14.   Interpretation.
For purposes of this Agreement, references to the masculine gender shall include feminine and neuter genders and entities. Where
a reference in this Agreement is made to a Section, Exhibit or Schedule, such reference shall be to a Section of, Exhibit to or
Schedule of this Agreement unless otherwise indicated. Whenever the words “include,” “includes” or “including”
are used in this Agreement, they shall be deemed to be followed by the words “without limitation.” References to a
“party” or “parties” shall mean Parent, the Company and/or Members, as applicable. The words “hereof,”
“herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement
as a whole and not to any particular provision of this Agreement. References to “this Agreement” shall include the
Company Disclosure Schedule and the Parent Disclosure Schedule.


 






     


     


    

 


10.15    Remedies.
In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each Member,
Parent and the Company will be entitled to specific performance under this Agreement. Each of the parties hereto agree that monetary
damages may not be adequate compensation for any loss incurred by reason of any breach of obligations described in the foregoing
sentence and hereby agrees to waive in any action for specific performance of any such obligation the defense that a remedy at
law would be adequate.


 


10.16    Independent
Nature of Each Member's Obligations and Rights. The obligations of each Member under this Agreement are several and not joint with
the obligations of any other Member (or, for the avoidance of doubt, with the obligations of the Company or the Parent under this
Agreement), and each Member shall not be responsible in any way for the performance of the obligations of any other Member party
to this Agreement (or, for the avoidance of doubt, the performance of the obligations of the Company or the Parent under this Agreement).
Nothing contained herein and no Member action taken by any Member pursuant hereto, shall be deemed to constitute such Member as
a party to or member of a partnership, an association, a joint venture, or any other kind of entity, or create a presumption that
any Member is in any way acting in concert or as a group with any of the other parties hereto with respect to such obligations
or the transactions contemplated by this Agreement. No party is in any way whatsoever authorized to bind any other party hereto.
Each Member shall be entitled to independently protect and enforce its rights, including without limitation the rights arising
out of this Agreement, and it shall not be necessary for any other Member to be joined as an additional party in any proceeding
for such purpose.


 


 


 


[SIGNATURE PAGES FOLLOW]


 




     


     


    

 


IN WITNESS WHEREOF,
each of the parties has executed or caused this Share Exchange Agreement to be executed as of the date first written above.


 





	PARENT:	 
	 	 	 
	3DICON CORPORATION	 
	 	 	 
	By:	/s/ Victor Keen	 
	 	 	 
	Name: 	Victor Keen	 
	 	 	 
	Title:	Chief Executive Officer	 
	 	 	 
	 	 	 
	COMPANY:	 
	 	 	 
	CORETEC INDUSTRIES LLC	 
	 	 	 
	By:	/s/ Simon Calton	 
	 	 	 
	Name:	Simon Calton	 
	 	 	 
	Title:	Board Member	 
	 	 	 
	 	 	 
	MEMBERS:	 
	 	 	 
	EOS MANAGEMENT LLC	 
	 	 	 
	By:	/s/ Simon Calton	 
	 	 	 
	Name:	Simon Calton	 
	 	 	 
	Title:	Board Member	 
	 	 	 
	 	 	 
	CARLTON JAMES NORTH DAKOTA LTD	 
	 	 	 
	By:	/s/ Simon Calton	 
	 	 	 
	Name:	Simon Calton	 
	 	 	 
	Title:	Board Member	 
	 	 	 
	 	 	 
	RYCAL DEVELOPMENTS LLC	 
	 	 	 
	By:	/s/ Simon Calton	 
	 	 	 
	Name:	Simon Calton	 
	 	 	 
	Title:	Board Member	 
	 	 	 
	 	 	 
	CHYMATEK ENERGY SOLUTIONS LLC	 
	 	 	 
	By:	/s/ Dennis Anderson	 
	 	 	 
	Name:	Dennis Anderson	 
	 	 	 
	Title:	Member, President & CEO	 




 







     


     


    

 


EXHIBIT A


 


CERTAIN DEFINITIONS


 


The following terms,
as used in the Agreement, have the following meanings:


 


“Accounts
Receivable” shall have the meaning set forth in Section 3.15 of the Agreement.


 


“Affiliate(s)”
shall have the meaning set forth in Rule 12b-2 of the regulations promulgated under the Exchange Act.


 


“Alternative
Acquisition” means any recapitalization, restructuring, financing, merger, consolidation, sale, license or encumbrance
or other business combination transaction or extraordinary corporate transaction of the Company or the Parent (as applicable) which
would or could reasonably be expected to impede, interfere with, prevent or materially delay the Transactions, including a firm
proposal to make such an acquisition.


 


“Agreement”
shall have the meaning set forth in the Preamble.


 


“Assets”
of a Person shall mean all of the assets, properties, businesses and rights of such Person of every kind, nature, character and
description, whether real, personal or mixed, tangible or intangible, accrued or contingent, or otherwise relating to or utilized
in such Person’s business, directly or indirectly, in whole or in part, whether or not carried on the books and records of
such Person, and whether or not owned in the name of such Person or any Affiliate of such Person and wherever located.


 


“Benefit
Plans” shall have the meaning set forth in Section 3.10 of the Agreement.


 


“Closing”
shall have the meaning set forth in Section 1.2 of the Agreement.


 


“Closing
Date” shall have the meaning set forth in Section 1.2 of the Agreement.


 


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


 


“Company”
shall have the meaning set forth in the Preamble.


 


“Company
Balance Sheet Date” shall have the meaning set forth in Section 3.6(b) of the Agreement.


 


“Company
Disclosure Schedule” shall have the meaning set forth in the opening paragraph of Article 3 of the Agreement.


 


“Company
Financial Statements” shall have the meaning set forth in Section 3.6(a) of the Agreement.


 


“Company
Material Contract” shall have the meaning set forth in Section 3.14 of the Agreement.


 


“Company
Stock” means the total outstanding capital stock of the Company as of the Closing Date.


 


“Contract”
means any written or oral agreement, arrangement, commitment, contract, indenture, instrument, lease, obligation, plan, restriction,
understanding or undertaking of any kind or character, or other document to which any Person is a party or by which such Person
is bound or affecting such Person’s capital stock, Assets or business.


 


“Copyrights”
shall have the meaning set forth in Section 3.17(i) of the Agreement.


 


“Default”
means (i) any breach or violation of or default under any Contract, Order or Permit, (ii) any occurrence of any event
that with the passage of time or the giving of notice or both would constitute a breach or violation of or default under any Contract,
Order or Permit, or (iii) any occurrence of any event that with or without the passage of time or the giving of notice would
give rise to a right to terminate or revoke, change the current terms of, or renegotiate, or to accelerate, increase, or impose
any liability under, any Contract, Order or Permit.


 


“Electronic
Delivery” shall have the meaning set forth in Section 10.11 of the Agreement.


 


“Environmental
Laws” mean any and all federal, state, local and foreign statutes, laws, judicial decisions, regulations, ordinances,
rules, judgments, orders, decrees, codes, plans, injunctions, Permits, concessions, grants, franchises, licenses, agreements and
governmental restrictions, relating to human health, the environment or to emissions, discharges or releases of pollutants, contaminants
or other Hazardous Material or wastes into the environment, including without limitation ambient air, surface water, ground water
or land, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling
of pollutants, contaminants or other Hazardous Material or wastes or the clean-up or other remediation thereof.


 






     


     


    

 


“Exchange
Act” has the meaning set forth in Section 3.5 of the Agreement.


 


“Exchange
Act Documents” has the meaning set forth in Section 3.21 of the Agreement.


 


“Exchange
Consideration” shall have the meaning as set forth in Section 1.1 of the Agreement.


 


“Final Date”
shall have the meaning set forth in Section 9.1 of the Agreement.


 


“FINRA”
means Financial Industry Regulatory Authority, Inc. .


 


“GAAP”
means U.S. generally accepted accounting principles.


 


“Governmental
Entity” shall mean any government or any agency, bureau, board, directorate, commission, court, department, official,
political subdivision, tribunal, or other instrumentality of any government, whether federal, state or local, domestic or foreign.


 


“Hazardous
Material” means any toxic, radioactive, corrosive or otherwise hazardous substance, including petroleum, its derivatives,
by-products and other hydrocarbons, or any substance having any constituent elements displaying any of the foregoing characteristics,
which in any event is regulated under any Environmental Law.


 


“Intellectual
Property” shall have the meaning as set forth in Section 3.17(i) of the Agreement.


 


“Knowledge”
means the actual knowledge of the officers of a party, and knowledge that a reasonable person in such capacity should have after
due inquiry.


 


“Law”
means any code, law, ordinance, regulation, reporting or licensing requirement, rule, or statute applicable to a Person or its
Assets, liabilities or business, including those promulgated, interpreted or enforced by any Governmental Entity.


 


“Lien”
means, with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind in respect to
such asset.


 


“Marks”
shall have the meaning set forth in Section 3.17(i) of the Agreement.


 


“Material”
and “Materially” for purposes of this Agreement shall be determined in light of the facts and circumstances
of the matter in question; provided that any specific monetary amount stated in this Agreement shall determine materiality in that
instance.


 


“Material
Agreement” shall have the meaning set forth in Section 3.13 of the Agreement.


 


“Material
Adverse Effect” means, with respect to any Person, a material adverse effect on the condition (financial or otherwise),
business, Assets, liabilities or the reported or reasonably anticipated future results or prospects of such Person and its Subsidiaries
taken as a whole; provided, however, that any adverse change, event, development or effect arising from or relating to any of the
following shall not be taken into account in determining whether there has been a Material Adverse Effect: (a) general business
or economic conditions, (b) national or international political or social conditions, including the engagement by the United States
in hostilities, whether or not pursuant to the declaration of a national emergency or war, or the occurrence of any military or
terrorist attack upon the United States, or any of its territories, possessions, or diplomatic or consular offices or upon any
military installation, equipment or personnel of the United States, (c) financial, banking, or securities markets (including any
disruption thereof and any decline in the price of any security or any market index), (d) changes in United States generally accepted
accounting principles, (e) changes in laws, rules, regulations, orders, or other binding directives issued by any Governmental
Entity or (f) the taking of any action required by this Agreement and the other agreements contemplated hereby.


 


“Material
Contract Default” means a default under any Material Agreement which would (A) permit any other party to cancel or terminate
the same (with or without notice of passage of time) or (B) provide a basis for any other party to claim money damages in excess
of $50,000 (either individually or in the aggregate with all other such claims under that Material Agreement) or (C) give rise
to a right of acceleration of any material obligation or loss of any material benefit under any such Material Agreement.


 


“Order”
means any administrative decision or award, decree, injunction, judgment, order, quasi-judicial decision or award, ruling, or writ
of any federal, state, local or foreign or other court, arbitrator, mediator, tribunal, administrative agency or Governmental Entity.


 


“Parent”
shall have the meaning set forth in the Preamble.


 






     


     


    

 


“Parent Accounts
Receivable” shall have the meaning set forth in Section 4.14 of the Agreement.


 


“Parent Balance
Sheet Date” shall have the meaning set forth in Section 4.6(b) of the Agreement.


 


“Parent Preferred
Stock” shall have the meaning set forth in Section 4.1 of the Agreement.


 


“Parent Disclosure
Schedule” shall mean the written disclosure schedule delivered on or prior to the date hereof by Parent to the Company
that is arranged in paragraphs corresponding to the numbered and lettered paragraphs corresponding to the numbered and lettered
paragraphs contained in the Agreement.


 


“Parent Material
Contract” shall have the meaning set forth in Section 4.13 of the Agreement.


 


“Parent SEC
Documents” shall have the meaning set forth in Section 4.6(a) of the Agreement.


 


“Patents”
shall have the meaning set forth in Section 3.17(i) of the Agreement.


 


“Person”
means an individual, a corporation, a partnership, an association, a trust, a limited liability company or any other entity or
organization, including a government or political subdivision or any agency or instrumentality thereof.


 


“Permit”
shall mean any federal, state, local, and foreign governmental approval, authorization, certificate, consent, easement, filing,
franchise, letter of good standing, license, notice, permit, qualification, registration or right of or from any Governmental Entity
(or any extension, modification, amendment or waiver of any of these) to which any Person is a party or that is or may be binding
upon or inure to the benefit of any Person or its securities, Assets or business, or any notice, statement, filing or other communication
to be filed with or delivered to any Governmental Entity.


 


“SEC”
shall have the meaning set forth in Section 4.6(a) of the Agreement.


 


“Securities
Act” shall have the meaning set forth in Section 3.3 of the Agreement.


 


“Share”
or “Membership Interests” shall have the meaning set forth in the Recitals of the Agreement.


 


“Members”
shall have the meaning set forth in the Preamble.


 


“Software”
shall have the meaning set forth in Section 3.17(i) of the Agreement.


 


“Subsidiary”
means, with respect to any Person, (i) any corporation, limited liability company, association or other business entity of
which more than 50% of the total voting power of shares of capital stock entitled (without regard to the occurrence of any contingency)
to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly,
by such Person or one or more of the other Subsidiaries of that Person (or a combination thereof) and (ii) any partnership
(a) the sole general partner or managing general partner of which is such Person or a Subsidiary of such Person or (b) the
only general partners of which are such Person or of one or more Subsidiaries of such Person (or any combination thereof).


 


“Tax”
or “Taxes” shall have the meaning set forth in Section 3.11(c) of the Agreement.


 


“Tax Return”
shall have the meaning set forth in Section 3.11(c) of the Agreement.


 


“Technology”
shall have the meaning set forth in Section 3.17(i) of the Agreement.


 


“Trade Secrets”
shall have the meaning set forth in Section 3.17(i) of the Agreement.


 


“Transaction
Documents” means the Agreement, and any other document executed and delivered pursuant hereto together with any exhibits
or schedules to such documents.


 


“Transactions”
shall have the meaning as set forth in Section 1.2 of the Agreement.


 


“Transfer”
shall have the meaning as set forth in Section 7.7(a) of the Agreement.


 


“Transfer
Taxes” shall have the meaning as set forth in Section 7.3 of the Agreement.


 


“8-K Report”
shall have the meaning as set forth in Section 7.8 of the Agreement.


 




     


     


    

 


EXHIBIT B


 


______, 2016


 


Coretec Industries LLC


505 Broadway North, Suite 208


Fargo, North Dakota 58102 


 


Member Representation Letter


 


Ladies and Gentlemen:


 


Pursuant to the Exchange
Agreement (the “Agreement”) dated as of _______, 2016 (the “Agreement Date”), the undersigned
(the “Member”) expects to receive from 3DIcon Corporation, an Oklahoma corporation (“Parent”),
shares of Parent Preferred Stock (the “Securities”) in exchange for the Member’s ownership of interest
in Coretec Industries, LLC, an North Dakota limited liability company (the “Company”). Capitalized terms used
herein but not defined will have the meanings ascribed to them in the Agreement. Stockholder whose signature appears below, represents
and warrants to Parent that, as of the date first written above and as of the Closing Date, the statements contained in this Representation
Letter are, and will be, correct and complete:


 


	 	1.	REPRESENTATIONS AND WARRANTIES OF STOCKHOLDER.


 


1.1.         “Accredited”
Investor. The distribution of the Securities to the Stockholder at the Closing is intended to be exempt from registration
under the Securities Act of 1933, as amended (the “Act”). Unless Stockholder checks the “no” box
on the signature page hereof indicating that Member is not an Accredited Investor, Stockholder represents and warrants that
Stockholder falls within one of the following definitions of Accredited Investor:


 


(Please initial
the category that applies)


 


	 	_______	 	(a)	Stockholder is a natural person whose individual net worth, or joint net worth with spouse, exceeds US$1,000,000 (including homes (excluding value of your primary residence), home furnishings and automobiles).
	 	 	 	 	 
	 	 	 	 	Explanation.  In calculating net worth, you include all of your assets (other than your primary residence) whether liquid or illiquid, such as cash, stock, securities, personal property and real estate based on the fair market value of such property MINUS all debts and liabilities (other than a mortgage or other debt secured by your primary residence).
	 	 	 	 	 
	 	 	 	 	In the event that the amount of any mortgage or other indebtedness secured by your primary residence exceeds the fair market value of the residence, that excess liability should also be deducted from your net worth.  Any mortgage or indebtedness secured by your primary residence incurred within 60 days before the time of the sale of the securities offered hereunder, other than as a result of the acquisition of the primary residence, shall also be deducted from your net worth.


 


	 	_______	 	(b)	Stockholder is a natural person who had an individual income in excess of US$200,000 in each of the last two years or joint income with spouse in excess of US$300,000 in each of those years and reasonably expects to reach the same income level in the current year.
	 	 	 	 	 
	 	_______	 	(c)	Stockholder is either a director or executive officer of Parent.
	 	 	 	 	 
	 	_______	 	(d)	Stockholder is a corporation or other entity with total assets in excess of US$5,000,000, not formed for the specific purpose of acquiring the Securities.
	 	 	 	 	 
	 	_______	 	(e)	Stockholder is an entity, all of the equity owners of which are as specified in (a) or (b) above.


 


[SIGNATURE PAGE FOLLOWS]


 




     


     


    

  


	 	MEMBER
	 	 
	 	 
	 	 
	 	 
	 	Name (Please Type or Print)
	 	 
	 	 
	 	Title (Please Type or Print) (if applicable)
	 	 
	 	 
	 	Street Address
	 	 
	 	 
	 	City, State, Zip Code
	 	 
	 	 
	 	Country
	 	 
	 	 
	 	Social Security Number
	 	(or tax I.D. Number, if an entity)
	 	 
	 	Accredited Investor:
	 	 
	 	(Please Check One of the Following Boxes)
	 	 
	 	 ̈ Yes                 ̈ No


 




     


     


    

 


Exhibit C


 


Capital Adjustment Conversion Agreement


 


3DIcon
Corporation


6804 South Canton Avenue, Suite 150


Tulsa, Oklahoma 74136


_______, 2016






VIA ELECTRONIC MAIL






RE: Series B Convertible Preferred Shares






Ladies and Gentlemen:


 


This letter confirms
the agreement (this “Agreement”) between 3DIcon Corporation, an Oklahoma corporation (the “Company”
or “Corporation”), and all holders of the Company’s Series B Convertible Preferred Stock (the “Holders”),
whose signatures appear on the signature page herein. Upon execution by all parties hereto, this Agreement will constitute a binding
agreement among the parties hereto that may not be amended without such parties’ written consent.


 


Notwithstanding the
Certificate of Designation for the Company’s Series B Convertible Preferred Stock (the “Series B Preferred”),
the Parties hereby agree to the following:


 


1.                  
Conversion or Redemption. Shares of Series B Preferred shall be subject to the following discretionary and mandatory conversion
and redemption provisions:


 


(a)                
Discretionary Conversion. At any time after its issuance the holder of such Series B Preferred, at its option, may convert
all or part of its Series B Preferred into One Thousand Nine Hundred Fourteen (1,914) shares of Common Conversion Shares per share
of Series B Preferred (a “Discretionary Conversion”).


 


(b)                
Mandatory Conversion Event.


 


(i)                  
Notwithstanding anything to the contrary herein, upon the Mandatory Conversion Event, all outstanding shares of Series B Preferred
shall, at the option of the Corporation, be converted automatically into such number of shares of Common Stock determined
by the same method as a Discretionary Conversion.


 


(ii)                
“Capitalization Adjustment” means any corporate action that has the effect of allowing the Company to
issue, on a fully diluted basis, all shares of Common Stock into which all Series B Preferred are convertible.


 


(iii)               
“Mandatory Conversion Event” means any time after the occurrence of both (i) a Capitalization Adjustment;
and (ii) the closing of a Share Exchange or Merger Transaction.


 


(iv)              
“Share Exchange or Merger Transaction” means any transaction for which the Company
enters into a share exchange agreement or agreement and plan of merger, which agreement is executed within ninety (90) days after
the date hereof and pursuant to which the Company thereafter becomes a consolidated company with another entity, and the Company
issues equity securities of the Company, even if such issuance would be deemed a Change of Control.


 


(c)                
Mechanics of Conversion. The conversion of Series B Preferred shall be conducted in the following manner:


 


(i)                  
Holder’s Delivery Requirements. To convert Series B Preferred into full shares of securities of the Corporation on
any date the shares are available (the “Conversion Date”), the holder thereof shall (A) transmit by facsimile
(or otherwise deliver), for receipt on or prior to 5:00 p.m., New York time on such date, a copy of a fully executed notice of
conversion, to the Corporation(the “Conversion Notice”), and (B) with respect to the final conversion
of shares of Series B Preferred held by any holder, such holder shall surrender to a common carrier for delivery to the Corporation
as soon as practicable following such Conversion Date but in no event later than six (6) business days after such date the original
certificates representing the shares of Series B Preferred being converted (or an indemnification undertaking with respect to such
shares in the case of their loss, theft or destruction) (the “Series B Preferred Certificates”). Upon
the Conversion Date, the rights of the holder as holder of the shares of Series B Preferred shall cease and the person or persons
in whose name or names any certificate or certificates for shares of securities of the Corporation shall be issuable upon such
conversion shall be deemed to have become the holder or holders of record of the shares of such securities represented thereby.
The Corporation shall not be obligated to issue certificates evidencing the shares of securities issuable upon such conversion
unless certificates evidencing such shares of Series B Preferred so converted are either delivered to the Corporation or any such
transfer agent.


 






     


     


    

 


(ii)                
Corporation’s Response. Upon receipt by the Corporation of a facsimile copy of a Conversion Notice, the Corporation
shall immediately send, via facsimile, a confirmation of receipt of such Conversion Notice to such holder and the Corporation or
its designated transfer agent, as applicable, shall, within three (3) business days following the date of receipt by the Corporation
of the executed Conversion Notice, issue and deliver or cause to be delivered a certificate or certificates registered in the name
of the holder or its designee, for the number of common shares of securities to which the holder shall be entitled.


 


(iii)               
Record Holder. The person or persons entitled to receive the shares of securities of the
Corporation issuable upon a conversion of the Series B Preferred shall be treated for all purposes as the record holder or holders
of such shares of securities on the Conversion Date.


 


2.                  
Conversion Limitation. The Holders acknowledges that the Series B Preferred Stock is governed
by a beneficial ownership blocker whereby each Holder, unless such holder is an officer or director of the Company, is prohibited
from effecting a conversion of the Series B Preferred Stock and receiving shares of Common Stock upon such conversion, such that
the number of shares of Common Stock held by the Holder and its affiliates after such conversion exceeds 4.99% of the issued and
outstanding Common Stock of the Company.


 


3.                  
Assignment. The rights provided in this Agreement may not be assigned or transferred by the Holders without the Company's
written consent; provided that, an Holders that is not an individual may assign or transfer such rights to an affiliate of the
Holders without the Company's consent in connection with the transfer of the Note to such affiliate. This Agreement is for the
sole benefit of the parties hereto and their respective successors and permitted assigns, and nothing herein, express or implied,
is intended to or will confer upon any other person or entity any legal or equitable right, benefit or remedy of any nature whatsoever
under or by reason of this Agreement.


 


4.                  
Termination. This Agreement and the rights and obligations described herein will terminate and be of no further force or
effect upon the earliest to occur of: (a) the conversion or cancellation of the Note; (b) the transfer of the Note without
the written consent of the Company to a third party that is not an affiliate of the Holders; (c) the consummation of a sale of
the Company's securities pursuant to a registration statement filed by the Company under the Securities Act, in connection with
a firm commitment underwritten offering of its securities to the general public; and (d) the consummation of a merger or consolidation
of the Company that is effected (i) for independent business reasons unrelated to extinguishing such rights; and (ii) for
purposes other than (A) the reincorporation of the Company in a different state; or (B) the formation of a holding company
that will be owned exclusively by the Company's stockholders and will hold all of the outstanding shares of capital stock of the
Company or its successor. The confidentiality obligations of the Holders referenced herein will survive any such termination.


 


5.                  
Counterparts. This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which
together will 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 will be deemed to have been duly and validly delivered and be valid and effective for
all purposes.


 


[signature page follows]


 






     


     


    

 


Exhibit D


 


LOCKUP AGREEMENT


  


Ladies and Gentlemen:


 


The undersigned is
a beneficial owner of shares of capital stock, or securities convertible into or exercisable or exchangeable for the capital stock
(collectively “Company Securities”) of 3DIcon Corporation, an Oklahoma corporation (the “Company”).
This Lock-Up Agreement is being executed pursuant to that certain Share Exchange Agreement (the “Share Exchange Agreement”)
between the Company, Coretec Industries, LLC, a North Dakota limited liability company, and the members of Coretec Industries,
LLC set forth on the signature page to the Share Exchange Agreement. This Agreement shall be entered into by all Officers and Directors
of the Company as of the Closing (as defined in the Share Exchange Agreement).


 


1.           Lockup.
For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the undersigned agrees, for
the benefit of the Company, that, during the period beginning on the date hereof and ending on the one year anniversary of the
date hereof (the “Lockup Period”), the undersigned will not directly or indirectly, (i) offer, sell, offer to
sell, contract to sell, hedge, pledge, sell any option or contract to purchase, purchase any option or contract to sell, grant
any option, right or warrant to purchase or sell (or announce any offer, sale, offer of sale, contract of sale, hedge, pledge,
sale of any option or contract to purchase, purchase of any option or contract of sale, grant of any option, right or warrant to
purchase or other sale or disposition), or otherwise transfer or dispose of (or enter into any transaction or device that is designed
to, or could be expected to, result in the disposition by any person at any time in the future), any Company Security, beneficially
owned, within the meaning of Rule 13d-3 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
by the undersigned on the date hereof or hereafter acquired or (ii) enter into any swap or other agreement or any transaction that
transfers, in whole or in part, directly or indirectly, the economic consequence of ownership of any Company Security, whether
or not any such swap or transaction described in clause (i) or (ii) above is to be settled by delivery of any Company Security.


 


2.           Permitted
Transfer. Notwithstanding the foregoing, after the sixth month following the Closing (as defined in the Share Exchange Agreement)
the undersigned (and any transferee of the undersigned) may transfer any Company Securities such that in the preceding three months
such transfer of the Company’s common stock (“Common Stock”), or the as converted, exercised or exchanged equivalent
of Company Securities, shall not exceed the greater of: (i) 1% of Common Stock issued and outstanding; or (ii) the average weekly
reported volume of trading in Common Stock reported on the automated quotation system of a registered securities association for
the four calendar weeks preceding the transfer.


 


3.           Governing
Law. This Letter Agreement shall be governed by and construed in accordance with the laws of the State of New York.


 


4.           Miscellaneous.
This Letter Agreement will become a binding agreement among the undersigned as of the date hereof. This Letter Agreement (and the
agreements reflected herein) may be terminated by the mutual agreement of the Company and the undersigned, and if not sooner terminated,
will terminate upon the expiration date of the Lockup Period. This Letter Agreement may be duly executed by facsimile and in any
number of counterparts, each of which shall be deemed an original, and all of which together shall be deemed to constitute one
and the same instrument. Signature pages from separate identical counterparts may be combined with the same effect as if the parties
signing such signature page had signed the same counterpart. This Letter Agreement may be modified or waived only by a separate
writing signed by each of the parties hereto expressly so modifying or waiving such agreement.


 


[SIGNATURE PAGES FOLLOW]