Document:

Unassociated Document

    EXCHANGE
      AGREEMENT

    

    By
      and Between

    

    Aussie
      Soles International LLC

    

    K-9
      Concepts, Inc.

    

    and

    

    The
      Aussie Soles Equity Owner

    

    as
      of February 15, 2008 

    

    THIS
      EXCHANGE AGREEMENT (“Agreement”)
      is
      made as of February 15, 2008, by and between K-9
      Concepts, Inc.,
      a
      Nevada corporation, or its designee (including a wholly owned subsidiary
      thereof) (“K-9” or the “Buyer”
or
      the
“Company”);
      Aussie
      Soles International LLC,
      a
      limited liability company incorporated under the laws of the state of Nevada
      (“Aussie
      Soles”);
      and
      the person who has executed this Agreement on the signature page hereof (the
      “Aussie
      Soles Equity Owner”)
      or his
      designee, with reference to the following facts:

    

    The
      Parties hereto desire to enter into an agreement under the terms of which the
      Aussie Soles Equity Owner will contribute and exchange the “Aussie Soles Equity”
(as hereinafter defined) to the capital of the Buyer, solely in exchange for
      the
“Exchange Shares” (as hereinafter defined). Immediately after the contribution
      and exchange of the Aussie Soles Equity for the Exchange Shares, as contemplated
      hereby, Aussies Soles will become a direct subsidiary of the Buyer.

    

    NOW,
      THEREFORE, in consideration of the promises and the mutual covenants and
      agreements herein contained, the Parties do hereby agree as
      follows:

    

    

    ARTICLE
      I

    DEFINITIONS

     

    1.1 Definitions.
      As used
      in this Agreement, the Schedules and Exhibits hereto, the following terms shall
      have the meanings set forth below: 

     

    “Agreement”
means
      this Agreement, including all amendments and modifications thereof (if any),
      and
      all Exhibits and Schedules, which are fully incorporated herein by reference.
      

     

    “Applicable
      Law”
means
      all applicable international, national/federal, state, provincial, local and
      other governmental or judicial laws (including, without limitation, common
      law),
      statutes, codes, rules, regulations, ordinances, and, to the extent promulgated
      or issued, decrees and orders.

     

    “Assets”
means
      the Properties and all other real and personal property, tangible and
      intangible, wherever located, that are held or owned from time to time by Aussie
      Soles,
      and
      used in connection with the operation of the Aussie Soles Businesses, listed
      on
Schedule
      1.1,
      including, without limitation, all of the following:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	 	
              (a)

            	
              all
                patents, patent rights, trademarks, trademark rights, trade names,
                domain
                names, trade name rights, service marks, copyrights, and any applications
                for any of the foregoing, designs, maskworks, net lists, schematics,
                industrial models, inventions, technology, know-how, trade secrets,
                inventory, ideas, algorithms, processes, computer software programs
                or
                applications (in both source code and object code form), and tangible
                or
                intangible proprietary information or material, and other intellectual
                property relating to the Aussie Soles Businesses, including, but
                not
                limited to those set forth on Schedule
                1.1
                annexed hereto (collectively, “Intellectual
                Property”);

            

    

    

    
      	 	
              (b)

            	
              all
                leases, certificates, governmental approvals, registrations, permits,
                register of rights, contracts, agreements, licenses, sales agreements,
                purchase orders and other documentation and other legal rights relating
                to
                the Aussie Soles Businesses (the “Contract
                Rights and Permits”);

            

    

    

    
      	 	
              (c)

            	
              all
                machinery and equipment, real estate (owned or leased) and improvements
                (collectively, ‘Fixed
                Assets”);

            

    

     

    
      	 	
              (d)

            	
              all
                tools, molds, dyes, spare parts, material handling equipment, and
                other
                related items of personal property; and certain scheduled office
                equipment, including furniture and computers, including but not limited
                to
                those set forth on Schedule
                1.1
                (the “Personal
                Property”);

            

    

    

    
      	 	
              (e)

            	
              all
                computer programs, software, customer and vendor lists, billing and
                materials records and other written and computer data and information
                (collectively, “Business
                Data”);

            

    

    

    
      	 	
              (f)

            	
              all
                inventories of raw materials, work in progress and finished goods,
                including but not limited to those set forth on Schedule
                1.1
                (the “Inventory”);
                

            

    

    

    “Aussie
      Soles Business(es)”
means
      the business(es) engaged in by Aussie Soles.

     

    “Aussie
      Soles Equity”
means
      100%
      of
      the equity capital, member interest and all other equity interests of Aussie
      Soles.

     

    “Aussie
      Soles Equity Owner”
means
      the owner of the Aussie Soles Equity on the Effective Date of this Agreement;
      such Person being: Craig Taplin. 

     

    “Closing”
means
      the closing of the Exchange Agreement pursuant to Article VI of this
      Agreement.

     

    “Closing
      Date”
means
      the date upon which this Agreement is executed. 

     

    “Consent”
means
      any consent, authorization, approval, ratification or waiver.

     

    “Contract”
means
      any legally binding agreement, contract, obligation, promise, arrangement or
      undertaking (whether written or oral and whether express or
      implied).

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    “Effective
      Date”
means
      12:01 a.m., local
      time in New York, NY on
      February 15, 2008

     

    “Employment
      Agreement”
means
      the Employment Agreement to be entered into between Aussie Soles and Craig
      Taplin containing
      the terms and conditions customary for a company of the size and development,
      and in the industry, of Aussie Soles,
      pursuant
      to Section 7.3 of this Agreement. 

     

    “Escrow
      Shares”
means
      ten percent (10%) of the Exchange Shares, or 2,100,000 shares of K-9 Common
      Stock, which shall be held in escrow and distributed in accordance with Section
      7.1 of this Agreement. 

     

    “Exchange”
means
      the transaction by which the Aussie Soles Equity shall be exchanged for the
      Exchange Shares, all as contemplated by this Agreement.

     

    “Exchange
      Shares”
means
      21,000,000
      shares of K-9 Common Stock. 

     

    “K-9
      Common Stock”
means
      the common stock of Buyer, par value $0.001 per
      share. 

     

    “License”
means
      all licenses, permits and other rights, as required, to conduct the Aussie
      Soles
      Business.

     

    “Liens”
means
      any and all liens, encumbrances, mortgages, pledges, charges, royalties, claims,
      demands, leases, options, security interests, rights of first refusal, equitable
      interests, rights, titles, interests and restrictions of any kind, including
      any
      restriction on use.

     

    “Material
      Adverse Effect”
means
      a
      material adverse effect on the business, results of operation, financial
      condition or prospects of Aussie Soles, the Aussie Soles Businesses and/or
      the
      Assets.

     

    “Milestone
      Shares”
means
      six million (6,000,000) of the Exchange Shares, which shall be held in escrow
      and issued to the Aussie Soles Equity Owner in accordance with Section 7.2
      of
      this Agreement.

     

    “Organizational
      Documents”
means
      those documents under which a Party has been organized or which otherwise
      evidence its organization under applicable law.

     

    “Parties”
      means
      the
      collective reference to the Buyer, Aussie Soles and the Aussie Soles Equity
      Owner, and“Party”
      means the reference to one of the Parties.

     

    “Securities
      Act”
means
      the United States Securities Act of 1933, as amended.

     

    “Securities
      Laws”
means
      the Securities Act, the United States Securities Exchange Act of 1934, as
      amended, or any state securities laws of the United States and the rules and
      regulations promulgated thereunder.

     

    “Taxes”
means
      any and all governmental, national, state, provincial, local, or foreign income,
      gross receipts, license, payroll, employment, excise, severance, stamp duty,
      occupation, premium, windfall profits, environmental, customs duties, capital
      stock, franchise, profits, withholding, social security (or similar),
      unemployment, disability, real property, personal property, sales, transfer,
      registration, value added, alternative or other tax of any kind whatsoever
      in
      each case whether of the United States, Canada, or elsewhere in the world,
      including any interest, penalty, or addition thereto, whether disputed or
      not.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    “Transfer”
means
      sell, grant, option, assign, mortgage, hypothecate, encumber, pledge, or
      otherwise commit or dispose of in any manner.

     

    1.2 Currency.
      Unless
      otherwise expressly specified, all currency amounts set forth herein are stated
      in the lawful currency of the United States of America.

    

    ARTICLE
      II

    REPRESENTATIONS,
      WARRANTIES, DISCLOSURES AND AGREEMENTS

    

    2.1 Representations
      and Warranties of Aussie Soles and Aussie Soles Equity Owner.
      Aussie
      Soles and the Aussie Soles Equity Owner jointly and severally represent and
      warrant to the Buyer that the statements contained in this Section 2.1 are
      correct and complete as of the date of the Closing Date.

     

    2.1.1 Capacity
      and Authorization.
      Aussie
      Soles and the Aussie Soles Equity Owner each has the legal right and full power
      and authority to enter into, deliver and perform this Agreement; all actions
      required to be taken in order to permit Aussie Soles and the Aussie Soles Equity
      Owner to enter into, deliver and perform this Agreement have been properly
      and
      validly taken; and all Consents, if any, currently required to be obtained
      for
      such purposes have been obtained and remain in effect. 

     

    2.1.2 Notices
      and Consents.
      Aussie
      Soles and the Aussie Soles Equity Owner is not and will not be required to
      give
      any notice to or obtain any Consent from any person or entity in connection
      with
      the execution, delivery and performance of this Agreement,
      except
      for the notices and consents set forth on Schedule
      2.1.2
      annexed
      hereto.

     

    2.1.3 Valid
      and Binding Obligations.
      This
      Agreement has been duly executed and delivered by Aussie Soles and the Aussie
      Soles Equity Owner and is valid, binding and enforceable against Aussie Soles
      and the Aussie Soles Equity Owner in accordance with its terms, except as may
      be
      limited by bankruptcy, insolvency, reorganization, moratorium or other similar
      laws relating to or affecting creditors’ rights generally, and except as may be
      limited by general principles of equity, regardless of whether such
      enforceability is considered in a proceeding at law or in equity.

     

    2.1.4 Organization
      and Good Standing of Aussie Soles.
      Aussie
      Soles is duly organized and validly existing under the laws of Nevada and is
      qualified to conduct business and is in good standing in those jurisdictions
      where necessary to carry on its business where conducted.  Aussie
      Soles has all requisite legal rights and full power and authority to own and
      operate its assets as currently owned and operated and to carry on its business
      as now being conducted. 

     

    2.1.5 Organizational
      Documents and Ownership Interests.
      

     

    (a) Aussie
      Soles has delivered to the Buyer a true and correct copy of its Articles of
      Organization or other charter documents of Aussie Soles as amended to date.
      Aussie Soles is not in violation of any of the provisions of Article of
      Organization or equivalent Organizational Documents.
      There is
      no operating agreement in effect which governs the operations of Aussie Soles.
      

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (b) Craig
      Taplin is the sole Aussie Soles Equity Owner, the sole manager and the sole
      member of Aussie Soles as of the date of this Agreement. There are no
      certificates representing the membership interest of the Aussie Soles Equity
      Owner in Aussie Soles. The execution, delivery and performance of this Agreement
      and the Closing shall be the effective transfer of the Aussie Soles Equity
      by
      the Aussie Soles Equity Owner to the Buyer, and following the Closing, the
      Aussie Soles Equity Owner shall have no further claim or interest in Aussie
      Soles, the Assets or the Aussie Soles Businesses other than as contemplated
      by
      this Agreement. 

     

    2.1.6 Registered
      and Principal Office.
      Aussie
      Sole’s registered
      office
      and principal office
      is
      located at 1000 E. William Street, Suite 204, Carson City, NV 89701.

     

    2.1.7 No
      Conflicts.
      The
      execution,
      delivery or performance of this Agreement by Aussie Soles and the Aussie Soles
      Equity Owner will not contravene,
      conflict with or result in a violation or breach of any of the following: (a)
      any provision of the Organizational Documents of Aussie Soles; (b) any existing
      legal requirements, order, decree or Contract to which Aussie Soles or the
      Aussie Soles Equity Owner may be subject; or (c) any existing governmental
      Consent
      or
      License.
      Other
      than this Agreement, there are no preemptive rights, rights of first refusal,
      commitments or agreements by Aussie Soles or the Aussie Soles Equity Owner
      to
      sell or transfer any of the Aussie Soles Equity or Assets to any person or
      entity. Other than this Agreement, there are no outstanding or authorized
      options, warrants, purchase rights, subscription rights, conversion rights,
      exchange rights, or other contracts or commitments that could require the Aussie
      Soles Equity Owner to issue, sell, or otherwise cause to become outstanding
      any
      additional participating interest or that could directly or indirectly affect
      their ability to perform its obligations to the Buyer under this Agreement.
      There are no outstanding or authorized equity appreciation, phantom equity,
      profit appreciation, or similar rights as applied to and understood in the
      context of limited liability companies with respect to Aussie Soles. There
      are
      no voting trusts, proxies, or other agreements or understandings with respect
      to
      the ownership or operation of any of the Aussie Soles Equity or the Assets.
      Upon
      the sale of the Aussie Soles Equity to Buyer pursuant to this Agreement, Buyer
      will own one hundred percent (100%) of the Assets, and no other person or entity
      shall have any right, title or interest whatsoever in the Assets.

     

    2.1.8 Capitalization.
      The
      issued and outstanding indebtedness for borrowed money and equity capital or
      other equity of Aussie Soles is set forth on Schedule
      2.1.8 hereto.
      

     

    2.1.9 Financial
      Records. 
      Aussie Soles has delivered to the Buyer its financial records to date (the
      “Financial Records”), and such Financial Records fairly and accurately in all
      material respects present the financial condition of Aussie Soles as of such
      dates are correct and complete in all material respects.  None of the
      Financial Records contains, as of its date, any untrue statement of a material
      fact or any omission 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.  Buyer understands that Aussie
      Soles is an early stage company with little or no operating history.

     

    2.1.10 Taxes.
      Aussie
      Soles has filed or caused to be filed all tax returns that are or were required
      to be filed by it pursuant to Applicable Law; all such tax returns are true,
      correct and complete in all material respects; Buyer has received copies of
      all
      such tax returns; Aussie Soles has paid all Taxes, levies, fines and assessments
      required to have been paid by it as of the date of this Agreement; and there
      exists no Tax inquiry, audit or assessment involving Aussie Soles or any of
      its
      Assets.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    2.1.11 Books
      and Records.
      The
      books of account, minute books, and similar or related records of Aussie Soles
      have been made available to the Buyer, are correct and complete in all material
      respects and have been maintained in all material respects in accordance with
      sound business practices and the requirements of Applicable Law. To the best
      knowledge and belief of the Aussie Soles Equity Owner, such minute books contain
      accurate and complete records of all meetings held, and action taken by, the
      participants and/or other governing body, and no meeting of any participants
      or
      other governing body has been held for which minutes have not been prepared
      and
      are not contained in such minute books. 

     

    2.1.12 Licenses.
      Aussie
      Soles has obtained and currently hold all licenses, permits, and authorizations
      required for the conduct of the Aussie Soles Businesses, including any and
      all
      approvals and permits necessary to conduct its business under all applicable
      federal, state, and local laws, except as would not have a Material Adverse
      Effect on Aussie Soles or operations of the Aussie Soles
      Businesses.

     

    2.1.13 Contract
      Rights and Permits.
      Schedule
      2.1.13
      lists
      all of the material Contract Rights and Permits. All amounts
      required to have been paid and all obligations required to have been performed
      by it under such Contract Rights and Permits have been paid or performed by
      Aussie Soles, and neither the Aussie Soles Equity Owner nor Aussie Soles has
      received any notice of any default or adverse claim with respect to any such
      Contract
      Rights
      or Permits and no event has occurred which, with the passage of time or the
      giving of notice or both, would result in a default, breach or event of
      noncompliance under any such Contract Rights and Permits.
      Neither
      the Aussie Soles Equity Owner nor Aussie Soles has any present expectation
      or
      intention of not fully performing on a timely basis all such obligations
      required to be performed by it under any Contract Rights and Permits to which
      it
      or they are subject and there has been no breach or cancellation by the other
      Parties to any Contract Rights and Permits. Neither the Aussie Soles Equity
      Owner nor Aussie Soles is a party to any oral contract, agreement or other
      arrangement, which, if reduced to written form, would be required to be listed
      under the terms of this Subsection.

     

    2.1.14 Legal
      Compliance.
      To the
      best of the knowledge and belief of the Aussie Soles Equity Owner, Aussie Soles
      has complied with Applicable Law, except where the failure to so comply would
      not have a Material Adverse Effect.

     

    2.1.15 Litigation
      and Claims.
      Except
      as set forth on Schedule
      2.1.15,
      Aussie
      Soles is not subject to any pending or
      threatened litigation,
      lawsuits, claims, actions, demands, arbitrations or proceedings, nor to the
      best
      knowledge and belief of the Aussie Soles Equity Owner, is there any pending
      or
      threatened litigation, lawsuit, claim, action, demand, arbitration or proceeding
      that relates to
      the
      Aussie Soles, the Aussie Soles Businesses or the Assets.

     

    2.1.16 Liens.
      Except
      as set forth on Schedule
      2.1.16 annexed
      hereto, Aussie Soles owns the Assets free and clear of all Liens. Furthermore,
      each Aussie Soles Equity Owner’s ownership interest in Aussie Soles is owned
      free and clear of all Liens.

     

    2.1.17 Full
      Disclosure.
      To the
      best knowledge and belief of the Aussie soles Equity Owner, there exist no
      material facts or circumstances which have not been disclosed to Buyer and
      which
      should be disclosed to prevent the representations and warranties set forth
      in
      this Section 2.1 from being materially misleading. 

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    2.1.18 Restrictions
      on Business Activities.
      There
      is no agreement, judgment, injunction, order or decree binding upon Aussie
      Soles
      that has or could reasonably be expected to have the effect of prohibiting
      or
      materially impairing any current or future business practice of Aussie Soles,
      any acquisition of property by Aussie Soles or the overall conduct of the Aussie
      Soles Businesses as currently conducted or as proposed to be conducted by Aussie
      Soles. Aussie Soles has not entered into any agreement under which Aussie Soles
      is restricted from selling, licensing or otherwise distributing any of its
      products to any class of customers, in any geographic area, during any period
      of
      time or in any segment of the market.

     

    2.1.19 Subsidiaries;
      Affiliates. Aussie
      Soles has no subsidiaries and has the following affiliates: Aussie Soles
      Footwear and Aussie Soles Australia Pty Ltd. (each, an “Affiliate,” and
      collectively, the “Affiliates”). Each Affiliate
      is duly organized and validly existing under the laws of its organization and
      is
      qualified to conduct business and is in good standing in those jurisdictions
      where necessary to carry on its business where conducted. Each Affiliate has
      all
      requisite legal rights and full power and authority to own and operate its
      assets as currently owned and operated and to carry on its business as now
      being
      conducted.

     

    2.1.20 The
      Assets.
      Aussie
      Soles has good title to, or a valid leasehold interest in, all of the Assets
      utilized in the Aussie Soles Businesses, except for any such properties or
      assets sold or otherwise disposed of in the ordinary course of the Aussie Soles
      Businesses or with respect to which such failure of title or validity of a
      leasehold interest would not have a Material Adverse Effect on Aussie Soles
      or
      operations of the Aussie Soles Businesses.

     

    2.1.21 The
      Inventory.
      Schedule
      1.1
      contains
      a complete and accurate list of all Inventory owned by Aussie Soles and its
      Affiliates as of the date of this Agreement, and there is no other Inventory
      other than as so disclosed. 

     

    2.1.22 Equipment. All
      equipment (the “Equipment”)
      owned
      or leased by Aussie Soles, and such Equipment is, taken as a whole,
      (i) adequate for the conduct of Aussie Soles’ Business, consistent with its
      past practice, and (ii) in good operating condition (except for ordinary
      wear and tear).

     

    2.1.23 Absence
      of Material Changes in the Assets.
      Except
      as previously disclosed to the Buyer, there has not been: (i) any Material
      Adverse Event,
      except
      as disclosed on Schedule
      2.1.23;
      (ii)
      any change in the Aussie Soles Equity Owner or its membership interest in Aussie
      Soles or in the Assets; or (iii) any damage, destruction or casualty loss
      materially and adversely affecting the Assets or the Aussie Soles Businesses,
      liabilities, operations or financial or other conditions of the Assets whether
      or not insured. 

     

    2.1.24 Intellectual
      Property Rights. 

     

    (a) Aussie
      Soles owns, or is licensed or otherwise possesses legally enforceable rights
      to
      use all Intellectual
      Property (the “Intellectual
      Property Rights”)
      that
      are used or proposed to be used in the Aussie Soles Businesses as currently
      conducted or as proposed to be conducted by Aussie Soles, except to the extent
      that the failure to have such rights have not had and could not reasonably
      be
      expected to have a Material Adverse Effect on Aussie Soles.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (b) There
      is
      no material unauthorized use, disclosure, infringement or misappropriation
      of
      any Intellectual Property Rights of Aussie Soles, any trade secret material
      to
      Aussie Soles or any intellectual property right of any third party to the extent
      licensed by or through Aussie Soles, by any third party, including any employee
      or former employee of Aussie Soles. Aussie Soles has not entered into any
      agreement to indemnify any other person against any charge of infringement
      of
      any Intellectual Property Right, other than indemnification provisions contained
      in purchase orders arising in the ordinary course of business.

     

    (c) Aussie
      Soles is not or will not be as a result of the execution and delivery of this
      Agreement or the performance of its obligations under this Agreement, in breach
      of any license, sublicense or other agreement relating to the Intellectual
      Property Rights or third party intellectual property rights, the breach of
      which
      would have a Material Adverse Effect on Aussie Soles.

     

    2.1.25 Acquisition
      of Exchange Shares For Own Account.
      The
      Aussie Soles Equity Owner is acquiring the Exchange Shares pursuant to this
      Agreement for its own account, not as a nominee or agent, and not with a view
      toward the immediate distribution or resale thereof. 

     

    2.1.26 Restricted
      Nature Of Exchange Shares.
      The
      Aussie Soles Equity Owner is able to bear the economic risk of its investment
      in
      the Exchange Shares and is aware that he must be prepared to hold the Exchange
      Shares for an indefinite period and that the Exchange Shares have not been
      registered under the United States Securities Act of 1933, as amended (the
      “Securities
      Act”),
      or
      any other securities law, on the ground, among others, that no distribution
      or
      public offering of Exchange Shares is to be effected and Exchange Shares are
      being issued by the Buyer without any public offering within the meaning of
      section 4(2) of the Act and Regulation D thereunder, and comparable provisions
      of the Securities Act and other Securities Laws.

     

    2.1.27 Sophistication.
      Each
      Aussie Soles Equity Owner has such knowledge and experience in financial and
      business matters that he or she is capable of evaluating the merits and risks
      of
      the investment in the Exchange Shares contemplated by this Agreement and has
      the
      capacity to protect the interests of such Aussie Soles Equity Owner,
      respectively.

     

    2.1.28 Agreement
      To Refrain From Resales.
      The
      Aussie Soles Equity Owner further agrees that he shall not encumber, pledge,
      hypothecate, sell, transfer, assign or otherwise dispose of, or receive any
      consideration for, any Exchange Shares or any interest in any Exchange Shares,
      unless and until prior to any proposed encumbrance, pledge, hypothecation,
      sale,
      transfer, assignment or other disposition, either (a) a registration statement
      on Form S-1 (or any other form appropriate for the purpose or replacing such
      form) under the Securities Act with respect to the Exchange Shares proposed
      to
      be transferred or otherwise disposed of shall be then effective or (b) after
      furnishing the Buyer and its counsel with a detailed statement of the
      circumstances of the proposed disposition, (i) the Aussie Soles Equity Owner
      shall have furnished the Buyer with an opinion of counsel (obtained at their
      expense) in form and substance satisfactory to the Buyer to the effect that
      such
      disposition will not require registration of such Exchange Shares under the
      Securities Act or registration or qualification of such Exchange Shares under
      the Securities Act or any other securities law and (ii) counsel for the Buyer
      shall have concurred in such opinion of counsel.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    2.1.29 Certificates
      To Be Legended.
      Each
      Aussie Soles Equity Owner understands and agrees that each certificate
      representing Exchange Shares will bear a legend on the face thereof (or on
      the
      reverse thereof with a reference to such legend on the face thereof) in
      substantially the form set forth below, which legend restricts the sale,
      transfer or other disposition of Exchange Shares otherwise than in accordance
      with this Agreement:

     

    THE
      SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED. THESE SHARES MAY NOT BE ENCUMBERED, PLEDGED,
      HYPOTHECATED, SOLD, ASSIGNED, TRANSFERRED OR OTHERWISE DISPOSED OF IN THE
      ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SHARES UNDER SAID ACT
      OR
      AN OPINION OF COUNSEL SATISFACTORY IN FORM AND SUBSTANCE TO THE CORPORATION
      AND
      CONCURRED IN BY THE CORPORATION’S COUNSEL TO THE EFFECT THAT SUCH REGISTRATION
      IS NOT REQUIRED UNDER SAID ACT OR SUCH TRANSACTION COMPLIES WITH RULES
      PROMULGATED BY THE SECURITIES AND EXCHANGE COMMISSION UNDER SAID
      ACT.

     

    2.1.30 Complete
      Copies of Materials.
      Aussie
      Soles has delivered or made available true and copies of each document that
      has
      been requested by the Buyer or their counsel in connection with their legal
      and
      accounting review of Aussie Soles.

     

    2.1.31 Brokers’
      and Finders’ Fees.
      Aussie
      Soles has not incurred, nor will it incur, directly or indirectly, any liability
      for brokerage or finders’ fees or agents’ commissions or investment bankers’
fees or any similar charges in connection with this Agreement or any transaction
      contemplated hereby.

     

    2.1.32 No
      Vote Required.
      Upon
      the execution of this Agreement by Aussie Soles, no other vote of the holders
      of
      Aussie Soles membership interests is necessary to approve this Agreement and
      the
      transactions contemplated hereby.

     

    2.2 Representations
      and Warranties of the Buyer.
      The
      Buyer represents and warrants to Aussie Soles and the Aussie Soles Equity Owner
      that the statements contained in this Section 2.2
      are
      correct and complete as of the date of the Closing Date.

     

    2.2.1 Organization
      and Good Standing.
      The
      Buyer is a company duly incorporated and validly existing under the laws of
      Nevada and is qualified to conduct business in those jurisdictions where
      necessary to carry out the purposes of this Agreement; and it has all requisite
      legal rights, full power and authority to own and operate its assets and
      properties as currently owned and operated and to carry on its business as
      now
      being conducted. 

     

    2.2.2 Capacity
      and Authorization.
      The
      Buyer has the legal rights and full power and authority to enter into, deliver
      and perform this Agreement; all actions required to be taken in order to permit
      it to enter into, deliver and perform this Agreement have been properly and
      validly taken; and all government, shareholder and other Consents, if any,
      currently required to be obtained for such purposes have been obtained and
      remain in effect.

     

    2.2.3 No
      Conflicts.
      Neither
      the execution, delivery nor performance of this Agreement by the Buyer will
      contravene, conflict with or result in a violation or breach of any of the
      following: (a) any provision of its Organizational Documents or of any
      resolution of its shareholders or any other governing body; (b) any existing
      legal requirements, order, decree or Contract to which it may be subject; or
      (c)
      any existing governmental Consent.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    2.2.4 Consents.
      Except
      as otherwise disclosed with respect to shareholder approval of this Agreement,
      the Buyer is not and will not be required to give any notice to or obtain any
      Consent from any person or entity in connection with the execution, delivery,
      and performance of this Agreement.

     

    2.2.5 Valid
      and Binding Obligations.
      This
      Agreement has been duly executed and delivered by the Buyer and is valid,
      binding and enforceable against it in accordance with its terms, except as
      may
      be limited by bankruptcy, insolvency, reorganization, moratorium or other
      similar laws relating to or affecting creditors’ rights generally, and except as
      may be limited by general principles of equity, regardless of whether such
      enforceability is considered in a proceeding at law or in equity.

     

    2.2.6 Brokers.
      The
      Buyer represents and warrants that it has not retained the services of a broker
      or finder in this transaction, and each indemnifies and holds harmless the
      other
      against and in respect of any and all claims, suits, actions and proceedings
      as
      and when incurred arising out of or based upon any claim to a fee, commission
      or
      other compensation on account of alleged employment of a broker or
      finder.

     

    2.3 Survival.
      All of
      the representations and warranties set forth in this Section 2 shall survive
      the
      execution of this Agreement and the Closing and shall remain in full force
      and
      effect thereafter. 

     

    2.4 Exchange
      Shares Will Be “Restricted Securities”.
      The
      Aussie Soles Equity Owner understands and agrees that the Exchange Shares will
      be “restricted securities” as that term is defined in Rule 144 under the Act
      and, accordingly, that the Exchange Shares must be held indefinitely unless
      they
      are subsequently registered under the Act or an exemption from such registration
      is available.

     

    2.5  Buyer
      May Refuse To Transfer.
      If at
      any time, in the opinion of counsel for the Buyer, Aussie Soles or the Aussie
      Soles Equity Owner has acted or acts in any manner not consistent with its
      representations and agreements, the Buyer may refuse to transfer Exchange Shares
      until such time as counsel for the Buyer is of the opinion that such transfer
      is
      in all respects in compliance with this Agreement and will not require
      registration of such Exchange Shares under the Securities Act or registration
      or
      qualification of such Exchange Shares under any other securities
      law.

     

    2.6 No
      Additional Representations or Warranties.
      Anything in this Agreement to the contrary notwithstanding, neither the Aussie
      Soles Equity Owner nor Aussie Soles is making nor will it or they make any
      representation or warranty with respect to any matter except as expressly set
      forth in this Agreement. 

     

    2.7 Representations
      Complete.
      None of
      the representations or warranties made by Aussie Soles or the Aussie Soles
      Equity Owner herein or in any Schedule or Exhibit hereto, or certificate(s)
      furnished by Aussie Soles or the Aussie Soles Equity Owner pursuant to this
      Agreement, when all such documents are read together in their entirety, contains
      any untrue statement of a material fact, or omits to state any material fact
      necessary in order to make the statements contained herein or therein, in the
      light of the circumstances under which made, not misleading.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    2.8 Limitation
      on Damage and Claims.
      NOTWITHSTANDING ANYTHING CONTAINED TO THE CONTRARY IN ANY OTHER PROVISION OF
      THIS AGREEMENT, EACH OF THE PARTIES HERETO DO HEREBY AGREE THAT THE RECOVERY
      OF
      ANY DAMAGES SUFFERED OR INCURRED AS A RESULT OF ANY BREACH BY ANY PARTY OF
      ANY
      OF ITS OR THEIR REPRESENTATIONS, WARRANTIES OR OBLIGATIONS UNDER THIS AGREEMENT
      SHALL BE LIMITED TO THE ACTUAL DAMAGES SUFFERED OR INCURRED BY THE NON-BREACHING
      PARTY OR PARTIES AS A RESULT OF THE BREACH BY THE BREACHING PARTY OR PARTIES
      OF
      SUCH REPRESENTATIONS, WARRANTIES OR OBLIGATIONS HEREUNDER AND IN NO EVENT SHALL
      THE BREACHING PARTY OR PARTIES BE LIABLE TO THE NON-BREACHING PARTY OR PARTIES
      FOR ANY INDIRECT, CONSEQUENTIAL, SPECIAL, EXEMPLARY OR PUNITIVE DAMAGES
      (INCLUDING, WITHOUT LIMITATION, ANY DAMAGES ON ACCOUNT OF LOST PROFITS OR
      OPPORTUNITIES) SUFFERED OR INCURRED BY THE NON-BREACHING PARTY AS A RESULT
      OF
      THE BREACH BY THE BREACHING PARTY OR PARTIES OF ANY OF ITS OR THEIR
      REPRESENTATIONS, WARRANTIES OR OBLIGATIONS HEREUNDER. ADDITIONALLY, NO CLAIM
      SHALL BE MADE FOR BREACH OF ANY REPRESENTATIONS OR WARRANTIES UNDER THIS
      AGREEMENT UNLESS AND UNTIL THE CLAIMANT HAS INCURRED IN EXCESS OF $25,000
      IN
      AGGREGATE DAMAGES AS A RESULT OF SUCH BREACHES.
      THE
      PARITES SPECIFICALLY AGREE THAT, UPON THE SIX
      (6)
      MONTH ANNIVERSARY
      OF THE CLOSING DATE, AUSSIE SOLES AND THE BUYER WILL ASSUME AND BECOME LIABLE
      FOR AND WILL ACCORDINGLY RELEASE THE AUSSIE SOLES EQUITY OWNERS AND AUSSIE
      SOLES
      FROM ALL OBLIGATIONS AND LIABILITIES RELATED TO THE ASSETS, THE AUSSIE SOLES
      BUSINESSES, OR AUSSIE SOLES ATTRIBUTABLE TO ANY PERIOD OF TIME BEFORE OR AFTER
      THE CLOSING DATE, AND THE ESCROW SHARES SHALL BE RELEASED TO THE AUSSIE SOLES
      EQUITY OWNERS.

     

    This
      Section 2.8 shall operate only to limit a Party’s liability and shall not
      operate to increase or expand any contractual obligation of a Party hereunder
      or
      cause any contractual obligation of a Party hereunder to survive longer than
      provided in Section 2.8.

     

    ARTICLE
      III

    BASIC
      TRANSACTION

     

    3.1 Sale
      and Transfer of Aussie Soles Equity.
      The
      Aussie Soles Equity Owner hereby agree to assign, transfer, and deliver to
      the
      Buyer, free and clear of all Liens, pledges, encumbrances, charges, restrictions
      or known claims of any kind, nature, or description, all of the Aussie Soles
      Equity, and the Buyer hereby agrees to acquire such Aussie Soles Equity by
      issuing and delivering to the Aussie Soles Equity Owner in exchange therefor
      the
      Exchange Shares. Accordingly, on
      and
      subject to the terms and conditions of this Agreement, on the Closing Date,
      the
      Buyer shall acquire from the Aussie Soles Equity Owner and the Aussie Soles
      Equity Owner shall sell, transfer, convey and deliver to Buyer, 100% of the
      Aussie Soles Equity, solely in exchange for the Exchange Shares, to be issued
      and delivered by the Buyer to the Aussie Soles Equity Owner or its designee(s)
      allocated in the manner set forth on Schedule
      3.1 annexed
      hereto and subject to subject to Sections 6.2.1, 7.1 and 7.2 of this Agreement.
      

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      IV

    INDEMNIFICATION

     

    4.1 Indemnification.

     

    4.1.1 The
      Aussie Soles Equity Owner agrees to defend, indemnify and hold harmless, the
      Buyer and its respective officers, directors, employees and agents, from and
      against any and all loss, claims, liabilities, damages, costs and expenses,
      including attorneys fees (“Damages”)
      incurred with respect to or resulting from, based upon, or arising out of the
      breach by Aussie Soles or the Aussie Soles Equity Owner’s representations and
      warranties set forth in Section 2.1, or the failure by the Aussie Soles Equity
      Owner to perform any of its covenants and agreements contained herein.

     

    4.1.2 The
      Buyer
      agrees to save, defend, indemnify and hold harmless the Aussie Soles Equity
      Owner and the officers, directors, employees and agents of Aussie Soles from
      and
      against any Damages incurred with respect to or resulting from, based upon,
      or
      arising out of the breach by the Buyer of its representations and warranties
      set
      forth in Section 2.2, or the failure by the Buyer to perform any of their
      covenants and agreement contained herein. 

     

    4.2 Determination
      of Damages; Claims.
      In
      calculating any amounts payable to the Buyer pursuant to Section 4.1.1 or
      payable to the Aussie Soles Equity Owner pursuant to Section 4.1.2, the
      indemnifying party or parties, as the case may be, shall receive credit for
      any
      insurance recoveries.

     

    4.3 Defense
      of Claims by Third Parties.
      If any
      claim is made by any third party against any Party or Parties that, if
      sustained, would give rise to indemnification under this Agreement, the
      indemnified Party or Parties, as the case may be, shall promptly cause notice
      of
      the claim to be delivered to the indemnifying Party or Parties and shall afford
      the indemnifying Party or Parties and its counsel, at their sole expense, the
      opportunity to defend, with counsel reasonably satisfactory to the indemnified
      Party or Parties against which such claim is made, or settle the claim. If
      any
      Party or Parties takes said opportunity to settle the claim, such Party shall
      obtain a release of the other Party or Parties in any settlement agreement
      with
      the third party.

     

    4.4 Limitations
      on Indemnification. Notwithstanding
      anything to the contrary, express or implied, contained herein, the provisions
      of Section 2.8 of this Agreement shall apply at all times with respect to any
      claims for indemnification hereunder. 

     

    ARTICLE
      V

    CONDITIONS
      PRECEDENT TO CLOSING 

     

    5.1 Conditions
      Precedent to Buyer’s Obligations. The
      obligations of the Buyer under this Agreement are subject to the satisfaction,
      at or before the Closing Date, of the following conditions. 

     

    5.1.1 Accuracy
      of Representations
      The
      representations and warranties made by Aussie Soles and the Aussie Soles Equity
      Owner in this Agreement shall have been true at and as of the Closing Date,
      and
      Aussie Soles shall have performed and complied with all covenants and conditions
      required by this Agreement to be performed or complied with by Aussie Soles
      and
      the Aussie Soles Equity Owner prior to or at the Closing.

     

    5.1.2 Preferential
      Rights. There
      shall exist no preferential right with respect to any of the Properties or
      Assets of Aussie Soles (or in the event that such preferential rights exist,
      such third party shall not have exercised its preferential right and have closed
      (or be proceeding to closing) its purchase thereunder) and any and all
      preferential rights with respect to any of the Properties or Assets of Aussie
      Soles shall have been waived in writing. 

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    5.1.3 Consents. All
      necessary consents of the partners, licensees or licensors of Aussie Soles
      and/or the Aussie Soles Equity Owner shall have been obtained.
      

     

    5.1.4 No
      Material Adverse Effect.
      Prior
      to the Closing Date, there shall not have occurred any Material Adverse Effect
      with respect to Aussie Soles or its Assets.

     

    5.1.5 Due
      Diligence.
      The
      Buyer shall have completed to its own satisfaction its due diligence
      investigation in relation to Aussie Soles and the Assets.

     

    5.1.6 Access
      to Information.
      Prior
      to the Closing Date, Aussie Soles and the Aussie Soles Equity Owner shall have
      (i)  given the Buyer and its authorized representatives reasonable access
      to all employees, offices, and other facilities regarding the Aussie Soles
      Businesses and all books and records of Aussie Soles regarding the Aussie Soles
      Businesses, (ii)  permitted the Buyer and its authorized representatives to
      make such inspection(s) as it may reasonably require, and (iii)  caused
      Aussie Soles’ officers to provide the Buyer with such financial and operating
      data with respect to the Aussie Soles Businesses as Buyer requested from time
      to
      time. 

     

    5.1.7 Reasonableness
      Letter.
      The
      Buyer shall have obtained to a letter from Pickwick Capital Partners LLC
      providing guidance as to whether the proposed exchange of the Exchange Shares
      for the Assets of Aussie Soles is reasonable consideration.

     

    5.2 Conditions
      Precedent to Aussie Soles Equity Owner’s Obligations. The
      obligations of the Aussie Soles Equity Owner under this Agreement are subject
      to
      the satisfaction, at or before the Closing Date, of the following conditions.
      

     

    5.2.1 Accuracy
      of Representations
      The
      representations and warranties made by the Buyer in this Agreement shall have
      been true at and as of the Closing Date, and the Buyer shall have performed
      and
      complied with all covenants and conditions required by this Agreement to be
      performed or complied with by the Buyer prior to or at the Closing.

     

    5.3 Waiver. Any
      Party
      may waive a condition precedent to its obligations, as set forth in this
Article
      5
      by
      executing a writing so stating at or prior to the Closing. In the event that
      the
      conditions precedent to Closing described in this Article 5
      are not
      satisfied or waived on or before the Closing Date, then, unless the Closing
      Date
      is extended by the mutual written agreement of the Parties, this Agreement
      and
      all rights and obligations of the Parties hereunder shall terminate and be
      of no
      further force or effect.

     

    ARTICLE
      VI

    CLOSING

     

    6.1 The
      Closing.
      The
      Closing of the Exchange and the other transactions contemplated by this
      Agreement shall occur simultaneously with the signing of this Agreement, at
      the
      offices of Gersten Savage LLP, 600 Lexington Avenue, New York, New York 10022,
      on the Closing Date or at such earlier time and place as the Parties may
      mutually agree.

     

    6.2 Closing
      Events.
      At the
      Closing, each of the respective Parties hereto shall execute, acknowledge,
      and/or deliver, as applicable, or shall ensure to be executed, acknowledged,
      and
      delivered, as applicable, the following:

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    6.2.1 The
      Aussie Soles Equity Owner or its designee(s) shall have received certificate(s)
      representing 12,900,000 of K-9 Common Stock of the Buyer, representing the
      Exchange Shares less the Escrow Shares and the Milestone Shares, which shall
      be
      held by the Buyer in accordance with Sections 7.1 and 7.2, respectively, of
      this
      Agreement. 

     

    6.2.2 Each
      of
      the parties shall have received all other certificates, agreements and items
      contemplated by this Agreement, or as may otherwise be reasonably requested
      by
      the Parties and their respective legal counsel in order to effectuate or
      evidence the transactions contemplated hereby.

     

    ARTICLE
      VII

    COVENANTS,
      AGREEMENTS AND UNDERTAKINGS

     

    7.1 Escrow
      Shares. The
      Parties agree that the Escrow Shares shall be held by Buyer in escrow for a
      period of six (6) months after the Closing Date (the “Escrow
      Period”),
      and
      shall be forfeited by Aussie Soles and the Aussie Soles Equity Owner in the
      event of Damages incurred with respect to or resulting from, based upon, or
      arising out of the breach by Aussie Soles or the Aussie Soles Equity Owner’s
      representations and warranties set forth in Section 2.1, or the failure by
      the
      Aussie Soles Equity Owner to perform any of its covenants and agreements
      contained in this Agreement. At the end of the Escrow Period, if no damages
      have
      been claimed by the Buyer as set forth herein, then the Escrow Shares shall
      be
issued
      and delivered by the Buyer to the Aussie Soles Equity Owner or its designee(s)
      allocated in the manner set forth on Schedule
      7.1 annexed
      hereto.

     

    7.2 Milestone
      Shares. The
      Parties agree that the Milestone Shares shall be held by Buyer, in escrow,
      following the Closing Date, and shall be issued and released to the Aussie
      Soles
      Equity Owner in three
      tranches of two million (2,000,000) shares of K-9 Common Stock each upon
      satisfaction of three milestones (each, a “Milestone”) as set forth on
Schedule
      7.2
      annexed
      hereto. In the event that the Milestones are not reached then the Parties agree
      that such Milestone Shares shall be forfeited by Aussie Soles and the Aussie
      Soles Equity Owner. 

     

    7.3 Employment
      Agreement. The
      Parties agree to use their best efforts to negotiate and enter into the
      Employment Agreement within ninety (90) days of the Closing Date.

     

    ARTICLE
      VIII

    MISCELLANEOUS

     

    8.1 Notices.
      Any
      notices, request, consents, demands, approvals or other communications required
      or permitted hereunder shall be given in writing (unless otherwise specified
      herein) and shall be deemed effectively given upon (i) personal delivery, (ii)
      two business days after deposit with Federal Express or another nationally
      recognized overnight courier service, (iii) five business days after deposit
      in
      the United States Postal Service, sent certified mail return receipt requested,
      addressed to each of the other parties thereunto entitled at the following
      addresses, or at such other addresses as a party may designate by ten days
      advance written notice to each of the other parties hereto, or (iv) the same
      day
      upon transmission by means of facsimile transmission or electronic mail (if
      attached in a commonly readable format and the sender has received no generated
      notice that the email message has not been successfully delivered).

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    If
      to
      Aussie Soles:

     

    477
      Clifton Road

    Kelowna,
      BC V1V 1A6, Canada

    Attention:
      Craig Taplin 

    Facsimile:
      250-448-7657 

    Email:
      craig@aussiesoles.com

    

    If
      to the
      Aussie Soles Equity Owner:

    

    Craig
      Taplin

    1000
      E.
      William Street, Suite 204

    Carson
      City, NV 89701

    Facsimile:
      250-448-7657

    Email:
      craig@aussiesoles.com

    

    If
      to the
      Buyer: 

    

    K-9
      Concepts, Inc.

    c/o
      Gersten Savage LLP

    600
      Lexington Avenue, 9th
      Floor

    New
      York,
      New York

    Attn:
      David E. Danovitch, Esq.

    Facsimile:
      212-980-5192

    Email:
      ddanovitch@gerstensavage.com

     

    The
      designation of any such address may be changed at any time by any party upon
      written notice given pursuant to the requirements of this Section
      8.1.

     

    8.2 Waiver.
      The
      failure of a Party to insist on the strict performance of any provision of
      this
      Agreement or to exercise any right, power or remedy upon a breach hereof shall
      not constitute a waiver of any provision of this Agreement or limit the Party’s
      right thereafter to enforce any provision or exercise any right. 

     

    8.3 Modification.
      No
      modification of this Agreement shall be valid unless made in writing and duly
      executed after the date of this Agreement by all of the Parties. 

     

    8.4 Governing
      Law; Arbitration.
      This
      Agreement is made pursuant to and shall be governed by and construed in
      accordance with the laws of the State of Nevada, without regard to its
      provisions as to conflicts or choice of laws. Any controversy or claim arising
      out of or relating to this Agreement, or the breach thereof shall be settled
      by
      arbitration, using three (3) arbitrators, in accordance with the rules of the
      American Arbitration Association. The arbitrators shall have authority to award
      interest and costs, and attorneys’ fees and expenses to the prevailing party.
      Judgment upon the award rendered by the arbitrators may be entered in any court
      having jurisdiction thereof. The arbitrators may only award compensatory damages
      and may not award punitive damages.

     

    8.5 Headings.
      The
      headings inserted in this Agreement are inserted only for convenience and in
      no
      way define, limit, or describe the scope or intent of this Agreement or affect
      its terms and provisions. 

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    8.6 No
      Implied Covenants.
      There
      are no implied covenants contained in this Agreement. The Parties expressly
      acknowledge obligations of good faith and fair dealing in their relations with
      each other pursuant to this Agreement. The Parties expressly disclaim any
      fiduciary duty to each other. 

     

    8.7 Further
      Assurances.
      Each of
      the Parties shall take from time to time such actions and execute such
      additional instruments as may be reasonably necessary or convenient to implement
      and carry out the intent and purpose of this Agreement. 

     

    8.8 Severability.
      Any
      provision or provisions of this Agreement that in any way contravenes the laws
      of any state or country in which this Agreement is effective shall, in such
      state or country as the case may be, and to the extent of such contravention
      of
      local law, be deemed separable and shall not affect any other provision or
      provisions of this Agreement.

     

    8.9 Entire
      Agreement.
      This
      Agreement contains the entire understanding of the Parties and supersedes all
      prior agreements and understandings between the Parties relating to the subject
      matter hereof. The Exhibits to this Agreement shall be construed with and as
      an
      integral part of this Agreement to the same extent as if they were set forth
      verbatim herein. In the event of any conflict between this Agreement and any
      Schedule attached hereto, the terms of this Agreement shall be controlling.
      

     

    8.10 Counterparts,
      Successors and Assigns.
      This
      Agreement may be executed in one or more original counterparts (including
      by way of fax transmission or electronic transmission),
      all of
      which shall constitute one and the same instrument. Evidence of execution of
      this Agreement may be provided by facsimile transmission. This Agreement shall
      be binding upon and inure to the benefit of the respective successors and
      permitted assigns of the Parties. 

     

    8.11 Non-Reliance.
      Each of
      the Parties acknowledges that it has not been induced to enter into this
      Agreement by any representation, warranty or undertaking not expressly set
      forth
      in this Agreement. 

     

    8.12 Legal
      Advice.
      Each of
      the Parties acknowledges and confirms that it has obtained its own independent
      legal advice with respect to this Agreement and the negotiation thereof and
      the
      transactions contemplated thereunder. 

     

    8.13 Expenses.
      Each of
      the Parties shall bear its own costs and expenses incurred in connection with
      the negotiation, execution and performance of this Agreement and the
      transactions contemplated hereby.

     

    8.14 Assignment.
      Neither
      of the Parties shall assign any of their rights or obligations under this
      Agreement without the express prior written consent of the other Party;
      provided, however, that Buyer may assign its rights and obligations hereunder
      to
      an entity wholly owned by Buyer.

     

    [Reminder
      of page intentionally left blank.]

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, this Agreement has been duly executed by or on behalf of the
      Parties hereto as of the date first above written. 

    

    
      	AUSSIE SOLES INTERNATIONAL
              LLC	 	 	K-9 CONCEPTS, INC.
              
	 	 	 	 
	 	 	 	 
	By:
              /s/ Craig
              Taplin	 	 	By:
              /s/ Albert
              Au
	
              
Name: Craig
              Taplin	 	 	
              
Name: Albert
              Au
	Title:  
Manager	 	 	Title:  President

     
      
      	AUSSIE SOLES EQUITY
              OWNER:	 	 	 
	 	 	 	 
	/s/ Craig Taplin	 	 	 
	
              
Name:
              Craig Taplin	 	 	
            

    

    

     

    
      
        
        

      

      
        17Unassociated Document

    FORM
      OF
      RESTRICTED STOCK UNIT AGREEMENT

     

    UNDER
      THE
      EPIX PHARMACEUTICALS, INC.

    AMENDED
      AND RESTATED 1992 INCENTIVE PLAN

     

    Name
      of
      Grantee: _____________________

    No.
      of
      Restricted Stock Units Granted: ________________________

    Grant
      Date: ____________________________

     

    Pursuant
      to the EPIX Pharmaceuticals, Inc. 1992 Amended and Restated Incentive Plan
      (the
“Plan”) as amended through the date hereof, EPIX Pharmaceuticals, Inc. (the
“Company”) hereby grants a deferred stock award consisting of the number of
      Restricted Stock Units listed above (an “Award”) to the Grantee named above.
      Each Restricted Stock Unit shall relate to one share of Common Stock, par value
      $0.01 per share (the “Stock”) of the Company specified above, subject to the
      restrictions and conditions set forth herein and in the Plan.

     

    1. Acceptance
      of Award.
      The
      Grantee shall have no rights with respect to this Award unless he or she shall
      have accepted this Award by signing and delivering to the Company a copy of
      this
      Award Agreement.

     

    2. Restrictions
      on Transfer of Award.

     

    (a) The
      Award
      may not be sold, transferred, pledged, assigned or otherwise encumbered or
      disposed of by the Grantee until (i) the Restricted Stock Units have vested
      as
      provided in Section 3 of this Agreement and (ii) shares of Stock have been
      issued to the Grantee.

     

    (b) If
      the
      Grantee’s employment with the Company and its Subsidiaries is voluntarily or
      involuntarily terminated for any reason prior to the satisfaction of the vesting
      conditions set forth in Section 3 below, any Restricted Stock Units that have
      not vested as of such date shall automatically and without notice terminate,
      be
      forfeited and be and become null and void, and neither the Grantee nor any
      of
      his or her successors, heirs, assigns, or personal representatives will
      thereafter have any further rights or interests in such unvested Restricted
      Stock Units. 

     

    3. Vesting
      of Restricted Stock Units.
      The
      restrictions and conditions in Section 2 of this Agreement shall lapse on
      the Vesting Date or Dates specified in the following schedule so long as the
      Grantee remains an employee of the Company or a Subsidiary on such Dates. If
      a
      series of Vesting Dates is specified, then the restrictions and conditions
      in
      Section 2 shall lapse only with respect to the number of Restricted Stock
      Units specified as vested on such date. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              Number
                of

              Units
                Vested

            	
              Vesting
                Date

            
	 	 
	
              _____________    (___%)

            	
              ____________

            
	
              _____________    (___%)

            	
              ____________

            
	
              _____________    (___%)

            	
              ____________

            
	
              _____________    (___%)

            	
              ____________

            
	
              _____________    (___%)

            	
              ____________

            

    

     

    The
      Committee may at any time accelerate the vesting schedule specified in this
      Section 3.

     

    4. Dividend
      Equivalents.
      

     

    (a) If
      on any
      date the Company shall pay any dividend on shares of Stock of the Company,
      the
      number of Restricted Stock Units credited to the Grantee shall, as of such
      date,
      be increased by an amount determined by the following formula:

     

    W
      = (X
      multiplied by Y) divided by Z, where:

     

    W
      = the
      number of additional Restricted Stock Units to be credited to the Grantee on
      such dividend payment date;

     

    X
      = the
      aggregate number of Restricted Stock Units (whether vested or unvested) credited
      to the Grantee as of the record date of the dividend;

     

    Y
      = the
      cash dividend per share amount; and 

     

    Z
      = the
      Fair Market Value per share of Stock (as determined under the Plan) on the
      dividend payment date.

     

    (b) 
      In the
      case of a dividend paid on Stock in the form of Stock, including without
      limitation a distribution of Stock by reason of a stock dividend, stock split
      or
      otherwise, the number of Restricted Stock Units credited to the Grantee shall
      be
      increased by a number equal to the product of (i) the aggregate number of
      Restricted Stock Units that have been awarded to the Grantee through the related
      dividend record date, and (ii) the number of shares of Stock (including any
      fraction thereof) payable as dividend on one share of Stock. Any additional
      Restricted Stock Units shall be subject to the vesting and restrictions of
      this
      Agreement in the same manner and for so long as the Restricted Stock Units
      granted pursuant to this Agreement to which they relate remain subject to such
      vesting and restrictions, and shall be promptly forfeited to the Company if
      and
      when such Restricted Stock Units are so forfeited.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    5. Receipt
      of Shares of Stock.
      

     

    (a) As
      soon
      as practicable following each Vesting Date, the Company shall issue to the
      Grantee a certificate representing the number of shares of Stock equal to the
      aggregate number of Restricted Stock Units credited to the Grantee that have
      vested pursuant to Section 3 of this Agreement on such date and the Grantee
      shall thereafter have all the rights of a stockholder of the Company with
      respect to such shares, including voting and dividend rights, and such shares
      of
      Stock shall not be restricted by the provisions hereof.

     

    (b) In
      the
      event that the Board of Directors in its discretion determines that any stock
      dividend, split-up, combination or reclassification of shares, recapitalization
      or other similar capital change affects the Stock of the Company such that
      adjustment is required in order to preserve the benefits or potential benefits
      of the Restricted Stock Units granted under this Agreement, the number of
      Restricted Stock Units subject to this Agreement shall be appropriately adjusted
      by the Committee (whose determination shall be conclusive).

     

    (c) Upon
      the
      occurrence of an Acquisition Event (as defined below) (regardless of whether
      such event also constitutes a Change in Control (as defined below)), the
      Committee shall provide that the Restricted Stock Units granted under this
      Agreement shall be assumed, or equivalent restricted stock units shall be
      substituted, by the acquiring or succeeding corporation (or an affiliate
      thereof) provided that if such Acquisition Event also constitutes a Change
      in
      Control, except to the extent specifically provided to the contrary in this
      Agreement or any other agreement between the Grantee and the Company, the
      restrictions and conditions of such assumed or substituted Restricted Stock
      Units shall immediately lapse in full if, on or prior to eighteen (18) months
      following the date of the consummation of the Change in Control, a Termination
      Event (as defined below) occurs.

     

    (d) Notwithstanding
      the foregoing, if the acquiring or succeeding corporation (or an affiliate
      thereof) does not agree to assume, or substitute for, the Restricted Stock
      Units
      granted under this Agreement, then the Committee shall issue to the Grantee
      the
      number of shares of Stock equal to the aggregate number of Restricted Stock
      Units credited to the Grantee on such date in full satisfaction of such
      Restricted Stock Units; provided, however, that in the event the Company is
      involved in a transaction in which shares of Stock will be exchanged for cash
      or
      other consideration, the Grantee shall receive cash or other consideration
      equal
      in value to the aggregate number of Restricted Stock Units credited to the
      Grantee on the date of the Acquisition Event.

     

    (e) Following
      the occurrence of a Change in Control that does not also constitute an
      Acquisition Event, except to the extent specifically provided to the contrary
      in
      this Agreement or any other agreement between the Grantee and the Company,
      the
      restrictions and conditions of the Restricted Stock Units granted under this
      Agreement shall immediately lapse in full if, on or prior to eighteen (18)
      months following the date of the consummation of the Change in Control, a
      Termination Event occurs.

     

    (f) An
      “Acquisition Event” shall mean:

     

    (i) any
      merger or consolidation of the Company with or into another entity as a result
      of which the Stock is converted into, or exchanged for, the right to receive
      cash, securities or other property;

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (ii) any
      exchange of shares of the Company for cash, securities or other property
      pursuant to a statutory share exchange transaction;

     

    (iii) any
      sale
      or exchange of all or substantially all of the assets of the Company in one
      (1)
      transaction or in a series of transactions; or

     

    (iv) a
      reorganization or liquidation of the Company.

     

    (g) “Change
      in Control” means the occurrence of any of the following events:

     

    (i) Merger/Sale
      of Assets. (A) A merger or consolidation of the Company whether or not approved
      by the Board of Directors, other than a merger or consolidation which would
      result in the voting securities of the Company outstanding immediately prior
      thereto continuing to represent (either by remaining outstanding or by being
      converted into voting securities of the surviving entity or the parent of such
      corporation) at least 50% of the total voting power represented by the voting
      securities of the Company or such surviving entity or parent of such corporation
      outstanding immediately after such merger or consolidation, or (B) the
      stockholders of the Company approve an agreement for the sale or disposition
      by
      the Company of all or substantially all of the Company’s assets; or

     

    (ii) Ownership.
      Any “Person” (as such term is used in Sections 13(d) and 14(d) of the Securities
      Exchange Act of 1934, as amended) becomes the “Beneficial Owner” (as defined in
      Rule 13d-3 under said Act), directly or indirectly, of securities of the Company
      representing 50% or more of the total voting power represented by the Company’s
      then outstanding voting securities (excluding for this purpose the Company
      or
      its Affiliates or any employee benefit plan of the Company) pursuant to a
      transaction or a series of related transactions which the Board of Directors
      does not approve.

     

    (h) “Cause”
      shall mean (i) conviction of any felony or any crime involving moral turpitude
      or dishonesty; (ii) participation in a fraud or act of dishonesty against the
      Company (or, if applicable, a successor corporation to the Company); (iii)
      willful and material breach of the Company’s policies (or, if applicable, a
      successor corporation to the Company); (iv) intentional and material damage
      to
      the Company’s property (or, if applicable, a successor corporation to the
      Company); or (v) material breach of the Grantee’s confidentiality obligations or
      duties under the Grantee’s nondisclosure, noncompetition or other similar
      agreement with the Company (or, if applicable, a successor corporation to the
      Company).

     

    (i) “Termination
      Event” shall mean the termination of the Grantee’s employment (i) by the Company
      or the acquiring or succeeding corporation without Cause; or (ii) by the Grantee
      upon written notice given promptly after the Company’s or the acquiring or
      succeeding corporation’s taking any of the following actions, which actions
      shall not have been cured within a 30-day period following such notice: (A)
      the
      principal place of the performance of the Grantee’s responsibilities (the
“Principal Location”) is changed to a location outside of a 30-mile radius from
      the Principal Location immediately prior to the Change in Control event;
      (B) there is a material reduction in the Grantee’s salary; or (C) there is
      a material diminution in the scope of the Grantee’s responsibilities without the
      Grantee’s agreement or without Cause (excluding increases in responsibility and
      lateral moves to jobs with similar descriptions).

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    6. Incorporation
      of Plan.
      Notwithstanding anything herein to the contrary, this Agreement shall be subject
      to and governed by all the terms and conditions of the Plan. Capitalized terms
      in this Agreement shall have the meaning specified in the Plan, unless a
      different meaning is specified herein.

     

    7. Tax
      Withholding.
      The
      Grantee shall, not later than the date as of which the receipt of this Award
      becomes a taxable event for Federal income tax purposes, pay to the Company
      or
      make arrangements satisfactory to the Administrator for payment of any Federal,
      state, and local taxes required by law to be withheld on account of such taxable
      event. The Grantee may elect to have such minimum tax withholding obligation
      satisfied, in whole or in part, by authorizing the Company to withhold from
      shares of Stock to be issued.

     

    8. No
      Obligation to Continue Employment.
      Neither
      the Company nor any Subsidiary is obligated by or as a result of the Plan or
      this Agreement to continue the Grantee in employment and neither the Plan nor
      this Agreement shall interfere in any way with the right of the Company or
      any
      Subsidiary to terminate the employment of the Grantee at any time.

     

    9. Notices.
      Notices
      hereunder shall be mailed or delivered to the Company at its principal place
      of
      business and shall be mailed or delivered to the Grantee at the address on
      file
      with the Company or, in either case, at such other address as one party may
      subsequently furnish to the other party in writing.

     

    
      	 	 	 
	 	EPIX PHARMACEUTICALS, INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
              

            
	 	Title:

    

     

    The
      foregoing Agreement is hereby accepted and the terms and conditions thereof
      hereby agreed to by the undersigned.

     

    
      	 	 	 
	 	 
	 
 	 
 	 
 
	Dated:______________________________	 	 
	 	
              
Grantee's
              Signature
	 	 
	 	 

              Grantee’s
                name and address:

            
	 	 
	 	 
	 	 
	 	 
	 	 

    

     

    
      
         

      

      
        5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}]]