Document:

Exhibit 10.1

 

 

June 21, 2017

 

MAZ Partners LP

1130 Route 46, Suite 22

Parsippany, New Jersey 07054

Attention: Walter Schenker

 

		Re:	Side Letter to extend Maturity Date of Unsecured Convertible
Promissory Note

 

To MAZ Partners LP:

 

Reference is made to that certain First
Amendment to Unsecured Convertible Promissory Note (the “Note Amendment”) dated as of January 17, 2017, by and
among Transgenomic, Inc. (the “Company”) and MAZ Partners LP (“MAZ”) which, among other things,
extended the original Maturity Date of the Unsecured Convertible Promissory Note (the “Note”) issued by the
Company to MAZ on January 20, 2015. All capitalized terms used herein, but not specifically defined herein, shall have the meanings
provided for such terms in the Note Amendment and the Note, as applicable.

 

Pursuant to Section 1(a) of the Note Amendment,
two-thirds of the outstanding principal amount of the Note became due and payable on June 16, 2017 (the “Original Deferred
Maturity Date”). The Company failed to pay the amount due on the Note on the Original Deferred Maturity Date.

Section 4 of the Note provides that if
the Company fails to make any payment (whether principal, interest or otherwise) under the Note within 10 days of when such payment
is due, such failure to pay would constitute an Event of Default thereunder (the “Prospective Event of Default”).
MAZ hereby waives the Prospective Event of Default and agrees that the Company’s failure to make the required payments under
the Note as described above and in accordance with Section 1(a) of the Note Amendment on the Original Deferred Maturity Date shall
not constitute an Event of Default under the Note.

 

MAZ and the Company agree, effective as
of the date hereof, that Sections 2(a) and 2(b) of the Note shall be amended and restated as follows:

 

“2.PAYMENT

 

“(a) Principal. If not otherwise repaid
pursuant to Section 2(e) below or converted pursuant to Section 3 below, (i) two-thirds of the outstanding principal amount of
this Note shall be due and payable on the first to occur of (1) the closing of a public offering by the Company of either common
stock, convertible preferred stock or convertible preferred notes or (2) August 16, 2017 (such applicable date, the “Deferred
Maturity Date”) and (ii) the remaining one-third of the outstanding principal amount of this Note shall be due and payable
on the sixth month anniversary of the Deferred Maturity Date (the “Extended Maturity Date”).

 

     

     

    

 

June 21, 2017

Page 2

 

 

(b)   Interest.
All accrued and unpaid interest on the outstanding principal amount of this Note shall be due and immediately payable on the first
to occur of (1) the Extended Maturity Date or (2) upon the conversion of this Note in accordance with the terms of Section 3 below,
in which case such interest shall be payable solely in shares of Common Stock.

 

This letter shall not be deemed to waive
any other covenant or any other provisions of the Note or any other non-compliance by the Company with the Note, whether or not
the events, facts or circumstances giving rise to such non-compliance existed on or prior to the date hereof. Except as expressly
modified by this letter, the Note shall remain in full force and effect pursuant to its terms. The Company hereby ratifies and
reaffirms its indebtedness, duties and obligations under the Note, as modified or amended by this letter.

 

This letter shall be enforced, governed
and construed in all respects in accordance with the laws of the State of New York, as such laws are applied by the New York courts
to agreements entered into and to be performed in New York by and between residents of New York.

 

 

 

(Signature pages follow)

 

     

     

    

 

 

June 21, 2017

Page 3 

 

 

	 	Very truly yours,	 
	 	 	 	 
	 	Transgenomic, Inc.	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Paul Kinnon	 
	 	 	Paul Kinnon	 
	 	 	President and Chief Executive Officer	 

 

 

ACCEPTED AND AGREED TO:

 

MAZ Partners LP

 

	By:	Walter Schneker	 
	 	Name:	Walter Schneker	 
	 	Title:	PrincipalSTOCK
PURCHASE AGREEMENT 

 

BY
AND AMONG

 

LIFE
CLIPS, INC.,

 

ASCENDA
CORPORATION,

 

HONGKONG
ASCENDA INTERNATIONAL CO., LTD, HONG KONG, and

 

HONGKONG
ASCENDA INTERNATIONAL CO., LTD., SAMOA

 

Dated
as of June 22, 2017

 

 

 

 

 

 

    	 	 	 

    	 	 	 

    

 

TABLE
OF CONTENTS

 

	Article
    I.	DEFINITIONS	1
	 	 	 
	Section
    1.01	Definitions.	1
	Section
    1.02	Interpretive
    Provisions.	8
	 	 	 
	Article
    II.	PURCHASE
    AND SALE; PURCHASE PRICE	9
	 	 	 
	Section
    2.01	Purchase
    and Sale.	9
	Section
    2.02	Purchase
    Price.	9
	Section
    2.03	Promissory
    Note and Deposit.	9
	Section
    2.04	Deliverables
    at Closing.	9
	Section
    2.05	Closing.	9
	Section
    2.06	Registration
    of the Stock Consideration.	9
	 	 	 
	Article
    III.	REPRESENTATIONS
    AND WARRANTIES RELATED TO THE SELLER	10
	 	 	 
	Section
    3.01	Authorization
    of Transactions.	10
	Section
    3.02	Governmental
    Approvals; Non-contravention.	10
	Section
    3.03	The
    Shares.	10
	Section
    3.04	Brokers.	10
	Section
    3.05	Litigation.	11
	Section
    3.06	Name.	11
	 	 	 
	Article
    IV.	REPRESENTATIONS
    AND WARRANTIES RELATED TO THE COMPANIES	11
	 	 	 
	Section
    4.01	Authorization
    of Transactions.	11
	Section
    4.02	Organization
    and History.	11
	Section
    4.03	Capitalization.	11
	Section
    4.04	Subsidiaries.	12
	Section
    4.05	Governmental
    Approvals; Non-contravention.	12
	Section
    4.06	Financial
    Statements; Etc.	12
	Section
    4.07	Absence
    of Certain Developments.	13
	Section
    4.08	Real
    Property.	14
	Section
    4.09	Personal
    Property; Title.	15
	Section
    4.10	Contracts.	16
	Section
    4.11	Customers;
    Suppliers and Sales Representatives.	17
	Section
    4.12	Warranties;
    Product Liability.	18
	Section
    4.13	Permits;
    Registration.	18
	Section
    4.14	Compliance
    with Laws.	18
	Section
    4.15	Litigation.	19
	Section
    4.16	Tax
    Matters.	19
	Section
    4.17	Personnel.	20
	Section
    4.18	Related-Party
    Transactions.	21
	Section
    4.19	Brokers.	21
	Section
    4.20	Export
    and Import Control Laws.	21
	Section
    4.21	Disclosure.	21

 

    	 	i	 

    	 	 	 

    

 

	Article
    V.	REPRESENTATIONS
    AND WARRANTIES OF BUYER	21
	 	 	 
	Section
    5.01	Organization;
    Corporate Power.	22
	Section
    5.02	Authorization
    of Transactions.	22
	Section
    5.03	Governmental
    Approvals; Non-contravention.	22
	Section
    5.04	No
    Consent, Violation or Conflict.	22
	Section
    5.05	Legal
    Proceedings.	22
	Section
    5.06	Knowledge.	22
	Section
    5.07	Validity
    of Stock Consideration; Listing.	23
	Section
    5.08	SEC
    Documents and Compliance.	23
	Section
    5.09	Brokers.	23
	 	 	 
	Article
    VI.	ADDITIONAL
    AGREEMENTS	23
	 	 	 
	Section
    6.01	Further
    Assurances.	23
	Section
    6.02	Confidentiality.	23
	Section
    6.03	Additional
    Covenants of the Parties.	23
	Section
    6.04	Seller’s
    and Companies’ Deliverables.	24
	Section
    6.05	Buyer’s
    Deliverables.	25
	Section
    6.07	At
    the Closing, the Buyer shall deliver:	25
	Section
    6.08	Actions
    Prior to and Following the Closing.	25
	 	 	 
	Article
    VII.	UNWINDING	25
	 	 	 
	Section
    7.01	Unwinding.	25
	Section
    7.02	Remedies
    for Post-Closing Default.	26
	 	 	 
	Article
    VIII.	INDEMNIFICATION	26
	 	 	 
	Section
    8.01	General
    Indemnification.	26
	Section
    8.02	Procedures
    for Indemnification.	26
	Section
    8.03	Payment.	27
	Section
    8.04	Effect
    of Knowledge on Indemnification.	27
	 	 	 
	Article
    IX.	TAX
    MATTERS	27
	 	 	 
	Section
    9.01	Tax
    Returns.	27
	Section
    9.02	Assistance
    and Cooperation.	28
	 	 	 
	Article
    X.	MISCELLANEOUS	28
	 	 	 
	Section
    10.01	Notices.	28
	Section
    10.02	Attorneys’
    Fees	29
	Section
    10.03	Amendments;
    No Waivers; No Third-Party Beneficiaries.	30
	Section
    10.04	Expenses.	30
	Section
    10.05	Successors
    and Assigns; Benefit.	30
	Section
    10.06	Governing
    Law.	30
	Section
    10.07	Survival.	30
	Section
    10.08	Resolution
    of Disputes.	31
	Section
    10.09	Publicity.	31
	Section
    10.10	Severability.	31
	Section
    10.11	Waiver
    of Jury Trial.	31
	Section
    10.12	Entire
    Agreement.	32
	Section
    10.13	Specific
    Performance.	32
	Section
    10.14	Counterparts.	32
	Section
    10.15	Construction.	32

 

Exhibits
and Schedules

 

	Schedule
    A	Seller’
    and Companies’ Disclosure Schedules
	Schedule
    B	Buyer’s
    Disclosure Schedules
	Exhibit
    1	Form
    of Promissory Note
	Exhibit
    2	Form
    of Employment Agreement

 

    	 	ii	 

    	 	 	 

    

 

STOCK
PURCHASE AGREEMENT

 

This
Stock Purchase Agreement (together with all exhibits and schedules hereto, this “Agreement”) is entered into as of
June 22, 2017 (the “Closing Date”), by and among Life Clips, Inc., a Wyoming corporation (“Buyer”), Ascenda
Corporation, a company limited by shares incorporated under the laws of Independent State of Samoa (“Seller”), Hong
Kong Ascenda International Co., Limited, a company limited by shares incorporated under the laws of Hong Kong (“Company
HK”), and Hong Kong Ascenda International Co., Limited, a company limited by shares incorporated under the laws of Independent
State of Samoa (“Company Samoa”, and collectively with Company HK, the “Companies” and each a “Company”
and, collectively, the “Companies”). Buyer, Seller, Company HK and Company Samoa may each be referred to herein individually
as a “Party” and, collectively, as the “Parties.”

 

WHEREAS,
Seller owns 100% of the Equity Interests (as defined below) of Company HK (the “HK Shares”) and of Company Samoa (the
“Samoa Shares” and, together with the HK Shares, the “Shares”); and

 

WHEREAS,
Seller desires to sell, and Buyer desires to purchase, all of the Shares;

 

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

 

Article
I. DEFINITIONS

 

Section 1.01 Definitions. The
following terms, as used herein, have the following meanings:

 

“Action”
means any legal action, suit, claim, investigation, hearing or proceeding, including any audit, claim or assessment for Taxes
or otherwise.

 

“Accounts
Payable” means all accounts payable, trade payables and other payables of the Company.

 

“Accounts
Receivable” means all trade and other accounts and notes receivable owing to the Company.

 

“Affiliate”
means, with respect to a specified Person, any other Person that directly or indirectly Controls, is Controlled by or is under
common Control with, the specified Person.

 

“Agreement”
is defined in the Preamble.

 

“Approvals”
any franchises, grants, permits, licenses, variances, easements, consents, certificates, exemptions, orders and approvals and
other authorizations from, or filing with or notification to, any Governmental Entity.

 

“Assets”
means all of the assets, properties and rights of the Companies of every kind and description, whether real, personal, mixed,
tangible or intangible, wherever situated.

 

“Authority”
means any Governmental Entity and any other governmental, regulatory or administrative body, agency or authority, any court or
judicial authority, any arbitrator, or any public, private or industry regulatory authority, whether international, national,
Federal, state, or local.

 

“Benefit
Plan” means any pension, retirement, deferred compensation, profit-sharing, tax-deferred savings plans (including registered
retirement savings plans, registered educational savings plans, and tax free saving account plans), savings, disability, medical,
dental, health, life, death benefit, stock option, stock purchase, bonus, incentive, vacation entitlement and pay, termination
and severance pay or other employee benefit plan, trust, arrangement, contract, agreement, policy or commitment, whether or not
any of the foregoing is funded or insured, and whether written or oral, formal or informal, which is intended to provide or does
in fact provide benefits to any or all employees or former employees of either Company, and to which either Company is a party
or by which either Company is bound or with respect to which either Company has any liability or potential liability, and for
greater certainty includes plans or programs in which the Corporation is obligated to participate by Law.

 

    	 	1	 

    	 

    

 

“Books
and Records” means all books of account and other books, Accounts Receivable and Accounts Payable information, credit history,
customer records, personnel records, financial records and other business and legal records of every kind whatsoever pertaining
to the Business and the Company.

 

“Business”
means the business of trading, distributing and selling by each of the Companies.

 

“Business
Day” means any day except Saturday, Sunday and any legal holiday or a day on which banking institutions in Aventura, Florida
generally are authorized or required by Law or other governmental actions to close.

 

“Buyer”
is defined in the Preamble.

 

“Buyer
Indemnified Party” and “Buyer Indemnified Parties” are defined in Section 8.01(a).

 

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

 

“Closing”
is defined in Section 2.05.

 

“Closing
Date” is defined in the Preamble.

 

“Code”
means the United States Internal Revenue Code of 1986, as amended from time to time.

 

“Company”
and “Companies” are defined in the Preamble.

 

“Company
Intellectual Property” means all Intellectual Property that is owned or held for use by the Company.

 

“Confidential
Information” means any and all business, technical and non-technical information including patent, copyright, trade secret,
and proprietary information, techniques, sketches, drawings, models, inventions, know-how, processes, apparatus, equipment, algorithms,
software programs, software source documents, and formulae related to the assets, operations, or current, future or proposed products
and services of Buyer, and includes, without limitation, Buyer’s information concerning research, experimental work, development,
design details and specifications, engineering, financial information, procurement requirements, purchasing, manufacturing, customer
lists, business forecasts, sales and merchandising, and marketing plans and information, provided, however, that “Confidential
Information” does not include any information that (a) was in the public domain at or subsequent to the time such portion
was communicated to Seller or either Company by the Buyer through no fault of Seller or either Company, (b) was rightfully in
Seller’s or either Company’s possession free of any obligation of confidence at or subsequent to the time such portion
was communicated to Seller or either Company by the Company, (c) was developed by employees or agents of Seller or either Company
independently of and without reference to any information communicated to Seller or either Company by the Company, or (d) was
disclosed by the Company to an unaffiliated third party free of any obligation of confidence.

 

    	 	2	 

    	 

    

 

“Contract”
means any contract, commitment, understanding or agreement (whether oral or written).

 

“Control”
means (a) the possession, directly or indirectly, of the power to vote 10% or more of the securities or other equity interests
of a Person having ordinary voting power, (b) the possession, directly or indirectly, of the power to direct or cause the direction
of the management and policies of a Person, by contractor otherwise, or (c) being a director, officer, executor, trustee or fiduciary
(or their equivalents) of a Person or a Person that controls such Person.

 

“Employees”
means individuals who are employed by the Company before and up to the Closing.

 

“Equity
Interests” means any capital stock, other equity interest, other ownership interest or any securities or other interests
convertible into or exchangeable or exercisable for capital stock, other equity interests, or other ownership interests, or any
other rights, warrants or options to acquire any of the foregoing securities or interests of or in any Person.

 

“Export
and Import Approvals” shall mean all export licenses, license exceptions, consents, notices, waivers, approvals, orders,
authorizations, registrations, declarations and filings, from or with any Governmental Entity, that are required for compliance
with Export and Import Control Laws.

 

“Export
and Import Control Laws” shall mean any U.S. or applicable non-U.S. law, regulation, or order governing (i) imports, exports,
reexports, or transfers of products, services, software, or technologies from or to or any country; (ii) economic sanctions or
embargoes; or (iii) compliance with unsanctioned foreign boycotts.

 

“Family”
means, with respect to a particular individual, (a) the individual, (b) the individual’s spouse and former spouse(s), (c)
any other natural person who is related to the individual or the individual’s spouse within the second degree and (d) any
other natural person who resides with such individual.

 

“Financial
Statements” is defined in Section 4.06(a).

 

“GAAP”
mean United States generally accepted accounting principles as in effect from time to time.

 

“Governmental
Entity” means any federal, state, municipal, local or foreign (including but not limited to Hong Kong) government and any
court, tribunal, arbitral body, administrative agency, department, subdivision, entity, commission or other governmental, government
appointed, quasi-governmental or regulatory authority, reporting entity or agency, domestic, foreign or supranational.

 

“Improvements”
means all buildings, structures, fixtures and improvements located on the Subleased Real Property.

 

“Indebtedness”
with respect to any Person, means, at any time without duplication, (i) all indebtedness of such Person for borrowed money, (ii)
all obligations of such Person for the deferred purchase price of property or services (other than trade payables not overdue
by more than 90 days incurred in the ordinary course of such Person’s business), (iii) all obligations of such Person evidenced
by notes, bonds, debentures or other similar instruments, (iv)) all obligations of such Person created or arising under any conditional
sale or other title retention agreement with respect to property acquired by such Person, (v) all obligations of such Person as
lessee under leases that are or should be capitalized in accordance with Israeli accounting principles, (vi) all obligations of
such Person under acceptance, letter of credit or similar facilities, all obligations of such Person in respect of interest rate
or currency hedging agreements, (vii) all obligations of such Person to guarantee any Indebtedness, leases, dividends or other
payment obligations, (viii) all indebtedness and other payment obligations referred to in clause (i) through clause (viii) above
of another Person secured by (or for which the holder of such indebtedness has an existing right, contingent or otherwise, to
be secured by) any Lien on property (including, accounts and contract rights) owned by such Person, even though such Person has
not assumed or become liable for the payment of such indebtedness or other payment obligations and (ix) all accrued and unpaid
interest on any of the foregoing.

 

    	 	3	 

    	 

    

 

“Indemnified
Party” and “Indemnifying Party” are defined in Section 8.02.

 

“Intellectual
Property” means all intellectual property and industrial property rights and assets, and all rights, interests and protections
that are associated with, similar to, or required for the exercise of, any of the foregoing, however arising, pursuant to the
Laws of any jurisdiction throughout the world, whether registered or unregistered, including any and all: (i) trademarks, service
marks, trade names, brand names, logos, trade dress, design rights and other similar designations of source, sponsorship, association
or origin, together with the goodwill connected with the use of and symbolized by, and all registrations, applications and renewals
for, any of the foregoing; (ii) internet domain names, whether or not trademarks, registered in any top-level domain by any authorized
private registrar or Governmental Authority, web addresses, web pages, websites and related content, accounts with Twitter, Facebook
and other social media companies and the content found thereon and related thereto, and URLs; (iii) works of authorship, expressions,
designs and design registrations, whether or not copyrightable, including copyrights, author, performer, moral and neighboring
rights, and all registrations, applications for registration and renewals of such copyrights; (iv) inventions, discoveries, trade
secrets, business and technical information and know-how, databases, data collections and other confidential and proprietary information
and all rights therein; (v) patents (including all reissues, divisionals, Provisionals, continuations and continuations-in-part,
re-examinations, renewals, substitutions and extensions thereof), patent applications, and other patent rights and any other Governmental
Authority-issued indicia of invention ownership (including inventor’s certificates, petty patents and patent utility models);
and (vi) software and firmware, including data files, source code, object code, application programming interfaces, architecture,
files, records, schematics, computerized databases and other related specifications and documentation.

 

“Knowledge
of Buyer” means the actual knowledge of the chief executive officer of Buyer, after reasonable inquiry.

 

“Knowledge
of Seller” means the actual knowledge of Seller, after reasonable inquiry.

 

“Latest
Balance Sheet” is defined in Section 4.06(a).

 

“Law”
means any applicable foreign, federal, state or local law (including common law), statute, treaty, rule, directive, regulation,
ordinances and similar provisions having the force or effect of law or an Order of any Governmental Entity.

 

“Liabilities”
means liabilities, obligations or responsibilities of any nature whatsoever, whether direct or indirect, matured or un-matured,
fixed or unfixed, known or unknown, asserted or un asserted, choate or inchoate, liquidated or unliquidated, secured or unsecured,
absolute, contingent or otherwise, including any direct or indirect indebtedness, guaranty, endorsement, claim, loss, damage,
deficiency, cost or expense.

 

“Lien”
means, with respect to any property or asset, any lien, security interest, mortgage, pledge, charge, claim, lease, agreement,
right of first refusal, option, limitation on transfer or use or assignment or licensing, restrictive easement, charge or any
other restriction of any kind, and any conditional sale or voting agreement or proxy, and including any restriction on the ownership,
use, voting, transfer, possession, receipt of income or other exercise of any attributes of ownership, in respect of such property
or asset, and any agreement to give any of the foregoing.

 

    	 	4	 

    	 

    

 

“Losses”
means any losses, damages, deficiencies, Liabilities, assessments, fines, penalties, judgments, actions, claims, costs, disbursements,
fees, expenses or settlements of any kind or nature, including legal, accounting and other professional fees and expenses.

 

“Market
Price” means the highest traded price over the prior five (5) trading-day period on the Over-the-Counter Pink Marketplace,
or applicable trading market as reported by a reliable reporting service or, if the Over-the-Counter Pink Marketplace is not the
principal trading market for such security, on the principal securities exchange or trading market where such security is listed
or traded or, if the highest intraday trading price of such security is not available in any of the foregoing manners, the highest
intraday price of any market makers for such security that are quoted on the Over-the-Counter Marketplace, provided, however,
that if the “Market Price” cannot be calculated for such security on such date in the manner provided above, the “Market
Price” shall be the fair market value as mutually determined by Buyer and Seller.

 

“Material
Adverse Effect” shall mean any event, condition, fact, change, occurrence or effect that, individually or in the aggregate
with other events, conditions, facts, changes, occurrences or effects has had or could reasonably be likely to give rise to a
material impact on the condition (financial or otherwise), earnings, operations, assets or Liabilities of the applicable Person
(taken as a whole), except in each case to the extent such events, conditions, facts, changes, occurrences or effects result from
(a) changes in general economic or political conditions or the securities markets in general, (b) changes in conditions generally
applicable to businesses in the same or similar industries as the Person operates, (c) changes, after the date hereof, in Laws
of any Governmental Entity generally applicable to such businesses or industries, (d) changes, after the date hereof, in GAAP
and/or (e) the taking of any action required by this Agreement; provided, however, the exceptions in clauses (a) through (d) shall
not apply if such events, conditions, facts, changes, occurrences or effects have a disproportionate effect on the applicable
Person relative to other companies operating in similar businesses to those which such Person operates.

 

“Material
Contracts” is defined in Section 4.10(a).

 

“Material
Interest” means direct or indirect beneficial ownership (as defined in Rule 13d-3 under the Securities Exchange Act) of
voting securities or other voting interests representing at least 5% of the outstanding voting power of a Person or equity securities
or other Equity Interests representing at least 5% of the outstanding equity securities or Equity Interests in a Person.

 

“Non-Employee
Workers” is defined in Section 4.17(a).

 

“Notice
of Loss” is defined in Section 8.02.

 

“Order”
means any judgment, writ, decree, determination, award, compliance agreement, settlement agreement, injunction, ruling, charge,
judicial or administrative order, determination or other restriction of any Governmental Entity or arbitrator.

 

“Other
Parties” is defined in Section 4.10(b).

 

“Party”
and “Parties” are defined in the Preamble.

 

“Permits”
means licenses, certificates, consents, Orders, franchises, permits, certificates, approvals or other similar authorizations from
Governmental Entities.

 

    	 	5	 

    	 

    

 

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

 

“Pre-Closing
Partial Tax Period” means the portion of any Straddle Period beginning before and ending on (and including) the Closing
Date.

 

“Pre-Closing
Periods” is defined in Section 9.01(a).

 

“Proceeding”
means any action, suit, proceeding, complaint, claim, charge, demand, hearing, inquiry, audit or investigation by or before any
Governmental Entity or arbitral tribunal.

 

“Purchase
Price” is defined in Section 2.02.

 

“Related
Person” means, (a) with respect to an entity, (i) any Affiliate of such specified Person; (ii) any Person that holds a Material
Interest in such specified Person; (iii) each Person that serves as a director, officer, partner, member, manager, executor, or
trustee of such specified Person (or in a similar capacity); (iv) any Person in which such specified Person holds a Material Interest;
(v) any Person with respect to which such specified Person serves as a general partner or a trustee (or in a similar capacity);
and (vi) any Related Person of any individual described in clause (ii) or (iii) or, (b) with respect to an individual, (i) each
other member of such individual’s Family; (ii) any Person that is directly or indirectly controlled by such individual or
one or more members of such individual’s Family; (iii) any Person in which such individual or members of such individual’s
Family hold (individually or in the aggregate) a Material Interest; and (iv) any Person with respect to which such individual
or one or more members of such individual’s Family serves as a director, officer, partner, member, manager, executor, or
trustee (or in a similar capacity).

 

“Restricted
Party” means Seller.

 

“Restricted
Territory” means the entire world.

 

“Securities
Act” means the United States Securities Act of 1933, as amended, and the rules and regulation promulgated thereunder.

 

“SEC”
is defined in Section 5.08.

 

“SEC
Documents” is defined in Section 5.08.

 

“Securities
Exchange Act” means the United States Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated
thereunder.

 

“Seller”
and “Seller” are defined in the Preamble.

 

“Shares”
is defined in the Recitals.

 

“Stock
Consideration” is defined in Section 2.02.

 

“Straddle
Period” means any taxable period that begins before and ends after the Closing Date.

 

“Sublease”
is defined in Section 4.08.

 

“Subleased
Real Property” is defined in Section 4.08.

 

    	 	6	 

    	 

    

 

“Subsidiary”
or “Subsidiaries” means, with respect to any Person, any other Person of which (a) if a corporation, a majority 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 that Person
or one or more of the other Subsidiaries of that Person or a combination thereof or (b) if a limited liability company, partnership,
association or other business entity (other than a corporation), a majority of partnership or other similar ownership interest
thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more other Subsidiaries of that Person
or a combination thereof and for this purpose, a Person or Persons owns a majority ownership interest in such a business entity
(other than a corporation) if such Person or Persons shall be allocated a majority of such business entity’s gains or losses
or shall be or control any managing director or general partner of such business entity (other than a corporation). For the purposes
hereof, the term Subsidiary shall include all Subsidiaries of such Subsidiary.

 

“Tax”
means (a) any foreign federal, state or local income, earnings, profits, gross receipts, franchise, capital stock, net worth,
sales, use, value added, occupancy, general property, real property, personal property, intangible property, transfer, fuel, excise,
parking, payroll, withholding, unemployment compensation, social security, retirement or other Tax of any nature; (b) any foreign
(including but not limited to Israeli), federal, state or local organization fee, qualification fee, annual report fee, filing
fee, occupation fee, assessment or other fee or charge of any nature imposed by a Governmental Entity; (c) amounts owed pursuant
to Escheat Laws; or (d) any deficiency, interest or penalty imposed with respect to any of the foregoing.

 

“Tax
Claim” means any notice of deficiency, proposed adjustment, assessment, audit, examination or other administrative or court
proceeding, suit, dispute or other claim relating to Taxes.

 

“Tax
Return” means any return, declaration, report, claim for refund or information return or statement relating to Taxes, including
any schedule or attachment thereto, and including any amendment thereof.

 

“Transactions”
means the purchase and sale of the Shares and the other transactions contemplated under the Transaction Documents.

 

“Transaction
Documents” means this Agreement and any other agreement, document, certificate or writing delivered or to be delivered in
connection with this Agreement and any other document related to the Transactions related to the forgoing, including, without
limitations, those delivered at the Closing.

 

“Transaction
Expenses” means (a) any amounts incurred by or on behalf of the Company for investment banking fees, accounting fees, legal
fees and any other costs or expenses of advisors or consultants related to or arising out of the preparation, negotiation, execution,
delivery or performance of the Transaction Documents, or the consummation of the Transactions and (b) all amounts required to
paid by the Company to current or former Employees of the Company in connection with consummation of the Transactions (including
as severance to the extent such Employee’s employment has terminated or such Employee has given notice of an intention to
terminate employment) to the extent such amounts shall not have been paid before Closing.

 

“United
States” means the United States of America, its territories and possessions, any State of the United States and the District
of Columbia.

 

“U.S.
Person” means (i) any natural person resident in the United States; (ii) any partnership or corporation organized or incorporated
under the laws of the United States; (iii) any estate of which any executor or administrator is a U.S. Person; (iv)any trust of
which any trustee is a U.S. Person; (v) any agency or branch of a foreign entity located in the Unites States; (vi) any non-discretionary
account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit or account of a
U.S. Person; (vii) any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary
organized, incorporated or, if an individual, resident in the United States; and (viii) any partnership or corporation if (A)
organized or incorporated under the laws of any foreign jurisdiction; and (B) formed by U.S. Person principally for the purpose
of investing in securities not registered under the Securities Act, unless it is organized and incorporated, and owned, by accredited
investors (as defined in Rule 501(a) under Regulation D promulgated under the Securities Act) who are not natural persons, estates
or trusts.

 

    	 	7	 

    	 

    

 

Section 1.02 Interpretive
Provisions. Unless the express context otherwise requires:

 

	(a)	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;
	 	 
	(b)	terms
    defined in the singular shall have a comparable meaning when used in the plural, and vice versa;
	 	 
	(c)	the
    terms “Dollars” and “$” mean United States Dollars, unless otherwise specified herein;
	 	 
	(d)	references
    herein to a specific Section, Subsection, Recital, Schedule or Exhibit shall refer, respectively, to Sections, Subsections,
    Recitals, Schedules or Exhibits of this Agreement;
	 	 
	(e)	wherever
    the word “include,” “includes,” or “including” is used in this Agreement, it shall be
    deemed to be followed by the words “without limitation”;
	 	 
	(f)	references
    herein to any gender shall include each other gender;
	 	 
	(g)	references
    herein to any Person shall include such Person’s heirs, executors, personal representatives, administrators, successors
    and assigns; provided, however, that nothing contained in this Section 1.02(g) is intended to authorize any assignment or
    transfer not otherwise permitted by this Agreement;
	 	 
	(h)	references
    herein to a Person in a particular capacity or capacities shall exclude such Person in any other capacity;
	 	 
	(i)	references
    herein to any contract or agreement (including this Agreement) mean such contract or agreement as amended, supplemented or
    modified from time to time in accordance with the terms thereof;
	 	 
	(j)	with
    respect to the determination of any period of time, the word “from” means “from and including” and
    the words “to” and “until” each means “to but excluding”;
	 	 
	(k)	references
    herein to any Law or any license mean such Law or license as amended, modified, codified, reenacted, supplemented or superseded
    in whole or in part, and in effect from time to time; and
	 	 
	(l)	references
    herein to any Law shall be deemed also to refer to all rules and regulations promulgated thereunder.

 

    	 	8	 

    	 

    

 

Article
II. PURCHASE AND SALE; PURCHASE PRICE

 

Section 2.01 Purchase
and Sale. Subject to the terms and conditions of this Agreement, at Closing, Seller shall sell, grant, assign, convey, transfer
and deliver to Buyer, and Buyer shall purchase and acquire from Seller, the Shares, free and clear of all Liens. Notwithstanding
anything herein to the contrary, however, it is agreed by the Parties that the actual cash capital in the Companies, other than
$500,000, shall not be part of the Transactions and shall be retained by Seller as set forth in Section 6.08.

 

Section 2.02 Purchase
Price. The purchase price for the Shares shall consist of ten million (10,000,000) shares of Buyer Stock
(the “Stock Consideration”), provided that if, at the end of 12 months after Closing Date, the market value of
Buyer Stock (as determined by the Market Price) does not equal to or exceed US$750,000, additional shares of Buyer Stock
shall be issued to ensure the value received by Seller be no less than US$750,000 (the “Purchase Price”). 

 

Section 2.03 Promissory
Note and Deposit. In connection with the transactions contemplated herein, Buyer shall deliver to Seller a
promissory note, substantially in the form as attached hereto as Exhibit 1, which shall provide for the payment of US$500,000
to Seller by Buyer within the one hundred and eighty (180) days following the Closing Date (the “Note”). The
Parties acknowledge and agree that the Note is not a part of the Purchase Price, but is instead to reimburse Seller for
US$500,000 in cash that is in the accounts of the Companies as of the Closing and which will be remain for the benefit of
Buyer following the Closing.

 

Section 2.04 Deliverables
at Closing.

 

	(a)	At
    the Closing, the Buyer shall deliver:

 

	 	(i)	The
    Stock Consideration to Seller; 
	 	 	 
	 	(ii)	The
    Note to Seller; and
	 	 	 
	 	(iii)	The
    documents and other items as set forth in Section 6.05. 

 

	(b)	At
    the Closing:

 

	 	(i)	Seller
    shall deliver to the Buyer certificates for the Shares, accompanied by stock powers duly endorsed in blank in proper form
    for transfer and with any appropriate transfer tax stamps affixed; and
	 	 	 
	 	(ii)	Seller
    and the Companies shall jointly deliver to Buyer the documents and other items as set forth in Section 6.04.

 

Section 2.05 Closing.
On the terms set forth herein, the closing of the Transactions (the “Closing”) shall take place by conference
call and electronic communication (i.e., emails/pdf) or facsimile, with exchange of original signatures to follow by mail, on
the date hereof and effective as of 11:59 p.m. United States Eastern Standard time, on such date. The Parties intend and desire
that the transactions herein be treated as tax free transactions, provided, however, that Buyer shall have no liability to any
other Party or Person in the event that they are not so treated.

 

Section
2.06 Registration of the Stock Consideration. Following the Closing, Buyer, at its cost, shall utilize its commercially
reasonable efforts to, within 90 days of the Closing, prepare and file with the SEC a registration statement under the Securities
Act registering the Stock Consideration, so as to permit the resale of the Stock Consideration by the Seller without such resale
being subject to the limitations applicable to restricted securities under the Securities Act and the Securities Exchange Act.
The Seller agrees to furnish to the Buyer all information reasonably requested by the Buyer for inclusion in any registration
statement filed pursuant to this Section 2.06. 

 

    	 	9	 

    	 

    

 

Article
III. REPRESENTATIONS AND WARRANTIES RELATED TO THE SELLER

 

Seller
represents and warrants to Buyer that the following representations and warranties contained in this Article III are true and
correct as of the Closing Date, except as set forth in the disclosure schedule of Seller and the Companies attached hereto as
Schedule A (the “Disclosure Schedule”) and therein referencing the Section of this Article III to which such disclosure
relates:

 

Section
3.01 Authorization of Transactions. Seller has the requisite power and capacity to execute and deliver the Transaction
Documents to which it is a party and to perform its obligations hereunder and thereunder. The execution, delivery and performance
by Seller of the applicable Transaction Documents and the consummation of the Transactions have been duly and validly authorized
by all requisite corporate action on the part of Seller. The Transaction Documents to which Seller is a party have been duly and
validly executed and delivered by Seller. Each Transaction Document to which Seller is a party constitutes the valid and legally
binding obligation of Seller, enforceable against Seller in accordance with its terms and conditions, except to the extent enforcement
thereof may be limited by applicable bankruptcy, insolvency or other Laws affecting the enforcement of creditors’ rights
or by the principles governing the availability of equitable remedies.

 

Section 3.02 Governmental
Approvals; Non-contravention. 

 

	(a)	No
    consent, Order, action or non-action of, or filing, notification, declaration or registration with, any Governmental Entity
    or Person is necessary for the execution, delivery or performance by Seller of this Agreement or any other Transaction Document
    to which Seller is a party.
	 	 
	(b)	The
    execution, delivery and performance by Seller of the Transaction Documents to which Seller is a party, and the consummation
    by Seller of the Transactions, do not (i) violate or conflict with any Law or Order to which Seller or any of the Shares may
    be subject, (ii) constitute a violation or breach of, be in conflict with, constitute or create (with or without due notice
    or lapse of time or both) a default (or give rise to any right of termination, modification, cancellation or acceleration)
    of any obligation under any Contract to which Seller is a party or to which Seller or any of the Shares are subject or by
    which the Company’s properties, assets or rights are bound or (iii) result in the creation or imposition of any Lien
    upon any of the rights, properties or assets of Seller or on any of the Shares.

 

Section
3.03 The Shares.

 

	(a)	Seller
    holds of record and owns beneficially all the Shares free and clear of any and all Liens. There are no limitations or restrictions
    on Seller’s right to transfer the Shares to Buyer pursuant to this Agreement. Seller has good and valid title to the
    Shares and the absolute right to deliver such Shares to Buyer in accordance with this Agreement, free and clear of any and
    all Liens.
	 	 
	(b)	Seller
    is not a party to any option, warrant, purchase right, proxy, power of attorney, voting trust or other Contract with respect
    to the voting or dividend rights or the sale, acquisition, issuance, redemption, registration, transfer or other disposition
    of any of the Shares (other than this Agreement). Further, any document purportedly executed by Seller appearing to grant
    an option, warrant, purchase right, proxy, power of attorney, voting trust or other Contract with respect to the disposition
    of any of the Shares or any Assets of the Companies, was not duly executed by Seller or the Company(ies), is null and void
    and has no legal effect.

 

Section 3.04 Brokers.
Seller has not engaged, or caused to be incurred any Liability or obligation to, any investment banker, finder, broker or
sales agent or any other Person in connection with the origin, negotiation, execution, delivery or performance of the Transaction
Documents to which it is a party, or the Transactions.

 

    	 	10	 

    	 

    

 

Section
3.05 Litigation. There is no proceeding pending or, to the Knowledge of Seller, threatened or anticipated, against Seller
relating to or affecting this Agreement or the Transactions. 

 

Section 3.06 Name. Subject
to unwinding under Article VII, Seller warrants that it has granted to Buyer the exclusive right in perpetuity to use the
name of Ascenda International Corporation as part of Buyer’s name for and in connection with all business of whatever
kind and character conducted previously or in the future by Buyer, that it has not granted and will not grant to any other
Person the right to use, and that it will not itself use (except in connection with Buyer), said name as part of the
corporate or firm name of any other Person or business, or as part of any trade name or trademark not belonging to Buyer or
its Subsidiary.

 

Article
IV. REPRESENTATIONS AND WARRANTIES RELATED TO THE COMPANIES

 

Seller
and the Companies jointly and severally represent and warrant to Buyer that the following statements contained in this Article
IV are true and correct as of the Closing Date, except as set forth in the Disclosure Schedule and therein referencing the Section
of this Article IV to which such disclosure relates.

 

Section 4.01 Authorization
of Transactions. Each of the Companies has full power and authority to execute and deliver the Transaction Documents to which
it is a party and to perform its obligations hereunder and thereunder. All necessary corporate action has been taken by each Company
to authorize the execution, delivery and performance of each of the other Transaction Documents to which it is a party and the
Transactions. The execution, delivery and performance by each Company of the Transaction Documents and the consummation of the
Transactions have been duly and validly authorized by all requisite corporate power on the part of each Companies. The Transaction
Documents to which either Company is a party have been duly and validly executed and delivered by such Company. Each Transaction
Document to which a Company is a party constitute the valid and legally binding obligation of such Company, enforceable against
such Company in accordance with its terms and conditions, except to the extent enforcement thereof may be limited by applicable
bankruptcy, reorganization, insolvency or moratorium Laws, or other Laws affecting the enforcement of creditors’ rights
or by the principles governing the availability of equitable remedies.

 

Section 4.02 Organization
and History.

 

	(a)	The
    Companies are currently operating a trading business in good standing in China with the authority and ability to provide import
    and export services globally.
	 	 
	(b)	Seller
    was formed in 2000 based in China and the USA. Original investors in Seller included The China Development Group which was
    the largest investment banker in Taiwan and Donald Ruan who has over 40 years of experience in global trade. Buyer is purchasing
    the shares of the Companies which includes assets of the international trading part of the Companies including, the ability
    to import and export products globally, existing business and clients, executive management, and goodwill. Seller has been
    also operating as trading company in China and operates with all proper authority, registrations, and knowledge required to
    act as a global trading company with its main offices in Shanghai, China. Seller has been in continuous trading operations
    for 17 years with bi-directional trading, import and export capabilities, in China, Taiwan, Korea, Japan, Indonesia, Mexico,
    Brazil, Argentina, United Kingdom, United States, France, Spain, Germany, Italy, and Israel. Seller currently has over 10
    active clients with over $6M in revenue for 2016. Seller operates around the world with a network of hundreds of factories,
    logistics and supply chain suppliers. In 2003 Seller introduced the concept of “Speed Sourcing” for its clients
    offering end to end sourcing at a fraction of the cost and time compared to traditional exporters and export service providers.
    The services include; design, licensing, factory qualifications and negotiating, financial services, import and export, sales,
    and end to end supply chain services. Following the Closing, Donald Ruan will remain as President and CEO of the Companies’
    Sourcing Operations along with his experienced team. Donald brings along extensive experience in executive management, international
    trading and manufacturing. Donald is a native of China, living and managing the Ascenda operations in Shanghai since 2001.
    Donald is key in bridging the West and East. He is respected globally for his integrity and ability. Donald has been an executive
    committee member, and is the founder, and CEO of Seller. Donald has extensive experience running consumer electronics manufacturing
    companies having been CEO of ProView Technology, KDS, Waffer, MAG Innovision, and CTX International. Donald has been a board
    member of Waffer Tech - The world’s largest magnesium injection molder, ARC United and MAG Innovision. He has served
    as a partner in Unico International and as Executive VP at Taiwan and Hong Kong Trading Co - The largest government subsidized
    trading firm in Taiwan. He has also served as Chief Resident Representative in Shanghai for China Development Financial Holdings
    Corporation, an arm of the China Development Group’s investment bank in Asia.
	 	 
	(c)	Company
    HK is a corporation duly organized, validly existing, and in good standing under the Laws of the Hong Kong, with the requisite
    corporate power and authority to own, lease and operate its properties, rights and assets and to carry on its Business as
    now conducted. Company Samoa is a corporation duly organized, validly existing, and in good standing under the Laws of the
    Independent State of Samoa, with the requisite corporate power and authority to own, lease and operate its properties, rights
    and assets and to carry on its Business as now conducted. Each of the Companies is qualified or licensed to do business as
    a foreign corporation and is in good standing in each jurisdiction in which the character of the properties owned, leased
    or operated by such Company or the nature of the Company’s business makes such qualification necessary, each of which
    is set forth in Section 4.02 of the Disclosure Schedules. Correct and complete copies of the articles of association and if
    existing, memorandum of incorporation and bylaws of each of the Companies (each, as amended to date) have been provided to
    Buyer prior to the date hereof.

 

Section
4.03 Capitalization. 

 

	(a)	The
    authorized capital stock of Company HK consists of 10,000 Ordinary Shares, par value at HK$1 per share, of which 10,000 shares
    are issued and outstanding, all of which are owned by Seller. The authorized capital stock of Company Samoa consists of 1,000,000
    Ordinary Shares, par value at US$1 per share, of which 1,000,000 shares are issued and outstanding, all of which are owned
    by Seller. 
	 	 
	(b)	All
    of the HK Shares are duly authorized, validly issued and are held of record and owned beneficially by Seller, and have not
    been issued in violation of any preemptive rights, rights of first refusal, rights of first offer, put or call rights or obligations
    or anti-dilution rights with respect to the issuance, sale or redemption of each Company HK’s share capital or any interests
    therein or similar rights of any Person. All of the Samoa Shares are duly authorized, validly issued, are held of record and
    owned beneficially by Seller, and have not been issued in violation of any preemptive rights, rights of first refusal, rights
    of first offer, put or call rights or obligations or anti-dilution rights with respect to the issuance, sale or redemption
    of each Company Samoa’s share capital or any interests therein or similar rights of any Person. The offer, sale and
    issuance of the HK Shares have been made in compliance with all applicable securities Laws of the Hong Kong. The offer, sale
    and issuance of the Samoa Shares have been made in compliance with all applicable securities Laws of the Independent State
    of Samoa. 

 

    	 	11	 

    	 

    

 

	(c)	Other
    than the Shares, there are no outstanding voting or nonvoting securities of either of the Companies, any stock appreciation,
    profit participation, phantom stock, performance units or similar rights with respect to either of the Companies, any securities
    of either of the Companies convertible into or changeable for voting or nonvoting securities, or options, warrants, purchase
    rights, subscription rights, conversion rights, exchange rights, preemptive rights or other Contracts that could require either
    Company to issue, sell or otherwise cause to become outstanding any Equity Interest in either Company, and no authorization
    therefor has been given. There are no outstanding obligations of each Company to repurchase, redeem or otherwise acquire any
    of the Company’s capital stock. There are no stockholders’ agreements or voting trusts, proxies or other agreements
    or understandings to which either Company is a party or by which either Company is bound with respect to the voting, transfer
    or other disposition of any Equity Interests of either Company or otherwise related to any Equity Interest of either Company
    or relating to the rights of any Person, whether or not an equity holder, to any proceeds, income, revenue or other economic
    entitlement in respect of either Company. No bonds, debentures or other Indebtedness of either Company have the right to vote
    (or are convertible or exchangeable into securities having the right to vote) on any matters on which the equity holders of
    such Company may vote.
	 	 
	(d)	Any
    document purportedly executed by either Company appearing to grant an option, warrant, purchase right, proxy, power of attorney,
    voting trust or other Contract with respect to (i) the issuance of any Equity Interests of such Company was not duly executed
    by such Company or (ii) the disposition of any assets of such Company, is null and void and has no legal effect.

 

Section
4.04 Subsidiaries Neither Company has any Subsidiaries, and neither Company owns, directly or indirectly, any shares
of capital stock or other securities of, or any Equity Interest in, any Person.

 

Section 4.05 Governmental
Approvals; Non-contravention. 

 

	(a)	No
    consent, Order, action or non-action of, or filing, notification, declaration or registration with, any Governmental Entity
    or other Person is necessary for the execution, delivery or performance by either Company of this Agreement or any other Transaction
    Document to which either Company is a party, or of the Transactions.
	 	 
	(b)	The
    execution, delivery and performance by each Company of the Transaction Documents to which either Company is a party, and the
    consummation by the Companies of the Transactions, do not (i) violate, breach or conflict with any provision of either Company’s
    articles of association or memorandum of incorporation or bylaws, or similar document, (ii) violate or conflict with any Laws
    or Orders to which either Company may be subject, (iii) constitute a violation or breach of, be in conflict with, constitute
    or create (with or without due notice or lapse of time or both) a default (or give rise to any right of termination, modification,
    cancellation or acceleration) of any obligation under any Contract to which either Company is a party or to which either Company
    is subject or by which its properties, assets or rights are bound or (iv) result in the creation or imposition of any Lien
    upon either Company or any of its assets, rights or properties.

 

Section
4.06 Financial Statements; Etc.

 

	(a)	Section
    4.06(b) of the Disclosure Schedules sets forth, separately for each Company, true, correct and complete copies of (i) the
    unaudited, reviewed balance sheets of such Company as of December 31, 2016, and the related audited, reviewed statements of
    income and cash flows for the fiscal year then ended, together with all related notes and schedules thereto; (ii) the unaudited,
    un-reviewed trial balance sheet of such Company as of March 31, 2017 and the related unaudited, un-reviewed statements of
    income and cash flows for the three-month period then ended (collectively, the “Financial Statements”). For purposes
    of this Agreement, the “Latest Balance Sheet” means the unaudited, trial balance sheet of each Company as of March
    31, 2017 included in the Financial Statements.

 

    	 	12	 

    	 

    

 

	(b)	Each
    of the Financial Statements (i) have been prepared in accordance with the Books and Records and in accordance with GAAP or
    compatible (subject, in the case of the Latest Balance Sheet, to normal year-end adjustments that will not, individually or
    in the aggregate, be material in nature or amount to the Company and, with respect to the Latest Balance Sheet, and (ii) present
    fairly the financial condition, results of operations and cash flows of the Company as of the dates and for the periods indicated
    therein; provided, however, that the Latest Balance Sheet is subject to normal year-end adjustments, which will not be material
    individually or in the aggregate.
	 	 
	(c)	Each
    of each Company’s Accounts Receivable reflected in the Latest Balance Sheet and all Accounts Receivable relating to
    the Business of such Company (i) represents a bona fide arm’s length sale in the ordinary course of business, (ii) is
    and shall be fully collectible as of the date hereof and after the Closing subject only to applicable reserves set forth in
    the Latest Balance Sheet, (iii) constitutes a valid claim of each Company, free and clear of all Liens and (iv) is not subject
    to any valid claim or setoff or other defense or counterclaim.
	 	 
	(d)	All
    inventory carried in the Financial Statements of each Company has been carried at the lower of cost or market, net of any
    reserve for obsolescence, slow-moving or excess inventory, and has been valued on a consistent basis in each of the Financial
    Statements. No redundant or obsolete inventory is currently held by either Company and all inventory is good and merchantable
    and are of quality and quantity presently usable and salable in the ordinary course of business.
	 	 
	(e)	Neither
    Company has any Liabilities, whether known, unknown, absolute, accrued, contingent or otherwise and whether due or to become
    due, except (i) as disclosed or reserved against in the Latest Balance Sheet for such Company, (ii) pursuant to executory
    obligations under Contracts entered into in the ordinary course of business (but not Liabilities for breaches of any such
    Contracts) of such Company or (iii) as incurred after March 31, 2017 in the ordinary course of business of such Company (none
    of which is a Liability for breach of Contract, breach of warranty, tort, infringement or the subject of any actual or threatened
    Proceeding). Neither Company is not a party to, or has any commitment to become a party to, any joint venture, off-balance
    sheet partnership or any similar Contract (including any structured finance, special purpose or limited purpose vehicle or
    other “off-balance-sheet arrangement”).
	 	 
	(f)	Section
    4.06(f) of the Disclosure Schedules sets forth a true and correct list of all Indebtedness of each Company, including all
    amounts outstanding with respect hereto.

 

Section 4.07 Absence
of Certain Developments. Since December 31, 2016 there has not been any Material Adverse Effect on either Company and, no
event has occurred or circumstances exist that are reasonably expected to result in such a Material Adverse Effect. Except as
expressly contemplated by this Agreement, since December 31, 2016, each Company has conducted its respective Business only in
the ordinary course of business and there has not been any:

 

	(a)	amendment
    to the articles of association or other organizational documents of either Company;
	 	 
	(b)	except
    in the ordinary course of business, payment or increase of any bonuses, salaries or other compensation (including severance)
    to any shareholder, manager, director, officer, Employee, Affiliate or agent of either Company;
	 	 
	(c)	adoption
    of, amendment to or increase in the payments to or benefits under (including by way of acceleration or waiving of any vesting
    or performance criteria), any Benefit Plan or execution of or amendment to any collective bargaining agreement;

 

    	 	13	 

    	 

    

 

	(d)	damage
    to or destruction or loss in excess of $25,000 to any of its Assets or properties (whether or not covered by insurance);
	 	 
	(e)	sale
    (other than sales of inventories in the ordinary course of business), lease or other disposition of any asset of the Company
    or the creation of any Lien on any asset except sales or leases of (A) tangible personal property of under $5,000 in value
    or inventory that is obsolete or no longer used or useful in the conduct of the business or (B) finished goods in the ordinary
    course of business;
	 	 
	(f)	loan
    made to, or transaction with or on behalf of, any Employee, officer, manager, director, member or Affiliate of either Company;
	 	 
	(g)	Contract
    executed in connection with any strategic alliance, joint marketing initiative, joint development agreement, joint venture
    or acquisition of either Company;
	 	 
	(h)	except
    as may be required by applicable Law or GAAP, change by either Company in accounting or Tax reporting principles, methods
    or policies;
	 	 
	(i)	election
    or rescission of an election by either Company relating to Taxes, settlement or compromise of any Proceeding, arbitration
    or controversy relating to Taxes;
	 	 
	(j)	incurrence
    of a single capital expenditure or commitment therefor in excess of $25,000
	 	 
	(k)	conduct
    related to either Company’s cash management customs and practices (including the collection of receivables and payment
    of payables) outside the ordinary course of business.

 

Section
4.08 Real Property. The Companies do not own any real property. Section 4.08 of the Disclosure Schedules describes in reasonable
detail the real property subleased to or by either Company (the “Subleased Real Property”). Each Company has delivered
to Buyer a true, correct and complete copy of each sublease and all amendments, modifications, guarantees, indemnities, assignments,
extensions and agreements relating to any Subleased Real Property (the “Subleases”). With respect to the Sublease:

 

	(a)	Each
    Sublease is in full force and effect and is binding and enforceable against each of the parties thereto in accordance with
    its terms, subject to bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium and other Laws of general
    application affecting the rights and remedies of creditors and general principles of equity.
	 	 
	(b)	The
    applicable Company has not assigned, sublet, transferred or conveyed any interest in any Sublease or any Subleased Real Property
    or any rights of first offer or refusal with respect thereto, and each Sublease constitutes the entire agreement to which
    the applicable Company is a party with respect to such Subleased Real Property.
	 	 
	(c)	The
    applicable Company has good and valid title to the leasehold estate in the Subleased Real Property for the full terms of each
    Sublease, free and clear of any Liens.
	 	 
	(d)	The
    applicable Company is not in default under any Sublease and (A) no other party to any Sublease is in default thereunder, (B)
    to the Knowledge of Seller no party to any Sublease has repudiated any provision thereof and (C) no event has occurred that,
    with notice or lapse of time, would constitute a breach or a material default or permit termination, modification or acceleration
    under any Sublease.
	 	 
	(e)	The
    Subleased Real Property constitutes all real property used or occupied by the Companies in connection with the operation of
    their respective Business.

 

    	 	14	 

    	 

    

 

	(f)	To
    the Knowledge of Seller, the use, occupancy, operation and condition of the Subleased Real Property is not in violation of
    applicable covenants, conditions, restrictions or Contracts and any applicable Laws, including health, safety, zoning and
    other Laws to which it is subject in accordance with current use. 
	 	 
	(g)	All
    applicable permits, licenses and other evidences of compliance that are or were required to be obtained in connection with
    the construction of the Improvements and the occupancy, condition, operation and use thereof have been obtained and complied
    with in all material respects.
	 	 
	(h)	There
    are no repair, replacement or restoration obligations owed under any Sublease.
	 	 
	(i)	There
    are no material defects in design or structure with respect to the Improvements.
	 	 
	(j)	The
    Transactions do not require the consent of any other party to any Sublease and will not result in a breach of or default under
    such Sublease.
	 	 
	(k)	The
    Companies have not collaterally assigned or granted any other Lien in such Sublease or any interest therein and there are
    not Liens on the estate or interest created by such Sublease.
	 	 
	(l)	There
    is no condemnation or appropriation or similar Proceeding pending or, to the Knowledge of Seller, threatened or contemplated
    against the Subleased Real Property or the Improvements thereon. There are no disputes regarding the Subleased Real Property
    or the Improvements, and, to the Knowledge of Seller, there are no facts that are reasonably likely to give rise to such a
    dispute.

 

Section
4.09 Personal Property; Title.

 

	(a)	Each
    Company has good and marketable title to, or a valid leasehold interest in, all of the rights, properties and Assets necessary
    for the conduct of its Business, and holds such properties and Assets free and clear of all Liens. Each Company owns or leases
    or has a valid right to use all rights, properties and assets necessary to conduct its Business. Immediately following the
    Closing, all of such rights, properties and assets shall be owned, leased or available for use by the applicable Company on
    terms and conditions identical to those under which, immediately before the Closing, the applicable Company owns, leases,
    uses or holds available for use such rights, properties and assets.
	 	 
	(b)	To
    the Knowledge of Seller, all of the tangible properties and Assets used or held for use by each Company are in good operating
    condition and repair, ordinary wear and tear excepted. Such tangible properties and assets are free from defects, have been
    maintained in accordance with normal industry practice and are suitable for the purposes for which they are used.
	 	 
	(c)	Section
    4.09(c) of the Disclosure Schedules lists the names and locations of all banks, trust companies, savings and loan associations
    and other financial institutions at which each Company has checking, savings, custodial or other accounts of any nature, lines
    of credit, safety deposit boxes or lock boxes and, with respect to each account, line of credit, safety deposit box and lock
    box, the names of all persons authorized to draw thereon or to have access thereto, as well as the account numbers.
	 	 
	(d)	Each
    Company’s email server is managed and maintained solely by such Company and no other Persons have access to the email
    server.

 

    	 	15	 

    	 

    

 

Section 4.10 Contracts.

	 	(a)	Section 4.10(a) of the Disclosure Schedules contains an accurate and complete list of the following Contracts to which each Company is a party or by which any of its properties, rights or assets are bound (collectively, the “Material Contracts”) and the Companies have either delivered to Buyer or made available for review by Buyer, a true, accurate and complete copy of each such Material Contract which is:

	 	(i)	any Contract that is or is reasonably likely to require expenditures (including capital expenditures) or payments to or from either Company in excess of $25,000 in any calendar year;

	 	(ii)	any Contract under which either Company is obligated to sell or lease as lessor real or personal property;

	 	(iii)	any Contract that contains a covenant not to compete applicable to either Company, binds either Company to any exclusive business arrangements or licenses or contains any requirements, output or “take-or-pay” obligations;

	 	(iv)	any Contract granting a customer of either Company “most favored nation” or similar terms (whether in respect of pricing or otherwise);

	 	(v)	any distributor, consultant, representative or broker Contract;

	 	(vi)	any joint venture, partnership or teaming Contract;

	 	(vii)	any Contract under which either Company has (A) created, incurred, assumed or guaranteed (or may create, incur, assume or guarantee) Indebtedness, (B) granted a Lien on its assets, whether tangible or intangible, to secure Indebtedness or (C) extended credit to any Person;

	 	(viii)	any Contract under which either Company has assumed a capitalized lease obligation in excess of $25,000;

	 	(ix)	any Contract with any Affiliate and any Contract between Seller and any Related Person;

	 	(x)	any collective bargaining, labor, professional employer organization or similar Contract;

	 	(xi)	any Contract related to any Company-owned or Company-licensed Intellectual Property (other than unmodified, commercially available, off-the-shelf, nonexclusive software licenses with an aggregate value of less than $10,000);

	 	(xii)	any Contract with a Governmental Entity (whether as prime contractor, subcontractor or otherwise), including any performance bonds or similar arrangements related thereto;

	 	(xiii)	any stock purchase, asset purchase or other acquisition or divestiture agreement relating to the acquisition, lease, license or disposition by either Company of assets (other than in the ordinary course of business), properties, rights or any Equity Interests of any Person (A) providing for any indemnification, guaranty or surety obligation of the Company or (B) with a fair market value in excess of $25,000;

    	 	16	 

    	 

     

 

	 	(xiv)	any Contract (other than purchase orders entered into in the ordinary course of business) with the 20 largest customers and 20 largest suppliers of either Company for partial fiscal year ended April 19, 2017;

	 	(xv)	any Contract for the purchase or sale of raw materials, commodities, supplies, products, or other person property, or for the furnishing or receipt of services, the performance of which will extend over a period of more than one (1) year;

	 	(xvi)	any written Contract containing indemnification obligations or caps on damages;

	 	(xvii)	any stockholders’ or similar Contract, or any Contract relating to the establishment, management or control of any joint venture or strategic alliance;

	 	(xviii)	any Contract between either Company and any other individual for the employment of such individual on a full-time, part-time, consulting or other basis providing annual compensation;

	 	(xix)	any Contract (A) the termination of which would reasonably be expected to cause material losses to either Company or (B) that is material to the ongoing Business of either Company; and

	 	(xx)	any other Contract the performance of which involves consideration in excess of $25,000.

	 	(b)	Each Material Contract is in full force and effect and is the legal, valid and binding obligation of each Company, and is enforceable against such Company in accordance with its terms, and, to the Knowledge of Seller, is the legal, valid and binding obligation of the other parties thereto (the “Other Parties”), and neither either Company nor, to the Knowledge of Seller, any of the Other Parties to any Material Contract is, or is alleged to be, in breach, violation or default of such Contract, and, to the Knowledge of Seller, no event has occurred that with notice or lapse of time or both would constitute a breach, violation or default by any such party, or permit termination, modification or acceleration by the Other Parties, under such Material Contract.

	 	(c)	Neither Company has waived any right it may have under any Material Contract. No party has provided any written or oral notice of any intention to terminate, modify or accelerate any Material Contract.

Section 4.11 Customers;
Suppliers and Sales Representatives.

	 	(a)	The relationships of each Company with each customer and supplier are good commercial working relationships, and no such customer or supplier has cancelled or otherwise terminated, or, to the Knowledge of Seller, threatened to cancel or otherwise terminate, the relationship with either Company. No such customer or supplier has advised either Company that such customer or supplier intends to stop, decrease, accelerate or delay the rate of purchasing or supplying materials, products or services from or to the applicable Company, as applicable, either as a result of the Transactions or otherwise.

	 	(b)	Section 4.11(b) of the Disclosure Schedules sets forth a complete and accurate list of the names of each Company’s sales representatives. Each applicable Company has a good commercial working relationship with each such sales representative and no sales representative has cancelled or otherwise terminated, or threatened to cancel or otherwise terminate, his or her relationship with the applicable Company. No such sales representative has advised either Company that such sales representative intends to stop selling or promoting such Company’s products or services, either as a result of the Transactions or otherwise. Each Company has provided true and correct copies of each agreement that it has with a sales representative to the Buyer.

    	 	17	 

    	 

    

 

Section 4.12 Warranties;
Product Liability.

	 	(a)	The sale, lease, license and delivery of each product and service sold, leased, licensed or delivered by each Company has been in conformity with all applicable Contracts, all express and implied warranties and applicable Laws, and neither Company has any Liability (nor is there any reasonable basis for any present or future demand, claim or action of any kind against either Company giving rise to any Liability) for replacement or repair thereof or other Losses in connection therewith. No product sold, leased, licensed or delivered by either Company is subject to any guaranty, warranty, or other indemnity beyond the applicable standard terms and conditions of sale or lease.

	 	(b)	There (i) has been no recall or investigation, or, to the Knowledge of Seller, threatened or contemplated recall or investigation, of any product sold by either Company in connection with their respective Business, and (ii) is no pending or, to the Knowledge of Seller, threatened or contemplated, recall or investigation of any product sold by either Company in connection with the Business.

	 	(c)	Neither Company has any Liabilities (and there is no basis for any present or future Proceeding against any of them giving rise to any Liabilities) arising out of any injury to individuals or property as a result of the ownership, possession, or use of any product manufactured, sold, leased, or delivered by such Company.

Section 4.13 Permits;
Registration. Each Company has all Permits required to own and operate its respective International Trading Business and all
such Permits are set forth on in Section 4.13 of the Disclosure Schedules. All such Permits are valid and in full force and effect
and the applicable Company is in compliance in all material respects with respect thereto. There are no Proceedings pending or,
to the Knowledge of Seller, threatened, that, individually or in the aggregate, would reasonably be expected to result in the revocation
or termination of any Permit of either Company. In connection with import and export business in mainland China, each Company is
duly registered to work with entities which are qualified to engage in trading business under the Chinese regulatory regime.

 

Section 4.14 Compliance
with Laws.

	 	(a)	Each Company has been and is now in compliance in all material respects with all Laws applicable to such Company, its properties, rights and assets and the applicable Shares. Neither Company has received any notice alleging any violation of the forgoing is being or may be alleged.

	 	(b)	To the Knowledge of Seller, no officer or director of the Companies (i) has been subject to voluntary or involuntary petition under the federal or foreign bankruptcy laws or any state insolvency law or the appointment of a receiver, fiscal agent or similar officer by a court for his or her business or property or that of any partnership of which he or she was a general partner or any corporation or business association of which he or she was an executive officer; (ii) has been convicted in a criminal proceeding or named as a subject of a pending criminal proceeding (excluding traffic violations and other minor offenses) or been otherwise accused of any act of moral turpitude, all in such person’s capacity as officer or director of either Company; (iii) has been the subject of any order, judgment or decree (not subsequently reversed, suspended or vacated) of any court of competent jurisdiction permanently or temporarily enjoining him or her from, or otherwise imposing limits or conditions on his or her ability to act as an officer or director of either Company; (iv) has been found by a court of competent jurisdiction to have violated any federal or state commodities, securities or unfair trade practices law, in each case in such person’s capacity as officer or director of either Company, which judgment or finding has not been subsequently reversed, suspended, or vacated; or (b) has engaged in other conduct in such person’s capacity as officer or director of either Company that would be required to be disclosed in a prospectus under the Securities Act or under other applicable Law.

    	 	18	 

    	 

     

Section 4.15 Litigation.
There are no Proceedings pending or outstanding or, to the Knowledge of Seller, threatened, in law or in equity or before any
Governmental Entity by or against either Company or any Person that either Company has agreed to defend or indemnify in respect
thereof or by which any of their rights, assets or properties are bound. There are no pending or outstanding or, to the Knowledge
of Seller, threatened, Orders, stipulations or charges to which either Company is a party or by which it or its rights, assets
or properties are bound.

 

Section 4.16 Tax Matters.

	 	(a)	Each of the Companies has filed, within the time and within the manner prescribed by Law (after giving effect to validly obtained extensions of time in which to make such filings), all income and other material Tax Returns that are required to be filed by or with respect to it and such Tax Returns are true, complete and correct in all respects were prepared in compliance with applicable Law, and correctly reflect the liability for Taxes and other information required to be reported thereon. Such tax returns do not contain (and were not required to contain in order to avoid the imposition of a penalty) a disclosure statement related to any Tax shelter or Tax avoidance transaction as identified by notice, regulation, or other form of published guidance under any applicable Law. Each Company has, within the time prescribed by Law, paid (and until the Closing Date shall, within the time prescribed by Law, will pay) all Taxes it is required to have paid (whether or not shown to be due on such Tax Returns).

	 	(b)	Each Company has, in full compliance with applicable Law, withheld and paid all Taxes required to be withheld and paid in connection with any amounts paid, deemed paid, or owing to any Person.

	 	(c)	The unpaid Taxes of each Company do not as of the Closing Date materially exceed that reserve shown on the Latest Balance Sheet of such Company in accordance with the past custom and practice of such Company in filing such Company’s Tax Returns. All material deficiencies for Taxes asserted against or reasonably known to be payable by each Company (x) have been paid or are included in a reserve for Tax Liability set forth on the face of the Financial Statements of the applicable Company (rather than in any notes thereto) and being contested in good faith by proper proceeding.

	 	(d)	Neither either Company nor any Person on either Company’s behalf has (i) granted any extension of the statute of limitations for the assessment or collection of Taxes, or otherwise entered into or filed any extension of time with respect to the assessment or reassessment of Taxes or the filing of any Tax Return, or any payment of Taxes or (ii) granted to any Person any power of attorney that is currently in force with respect to any Tax matter. Neither Company has been requested to give any waiver or extension of any statute of limitations, or any closing agreements or similar agreements with any Governmental Entity, with respect to material Taxes.

	 	(e)	No Proceedings for assessment or collection of Taxes has been or is presently being asserted or is otherwise outstanding against either Company; no rationale underlying a claim for Taxes has been asserted previously that reasonably could be expected to be asserted in any other period against either Company; there are no pending Proceedings or, to the Knowledge of Seller, threatened, against either Company, nor is there any basis for any of the foregoing. In relation to any matter relevant to the applicable Company, neither Company nor any director or officer or any member of either Company has paid or become liable to pay, and there are no circumstances by reason of which it or they may become liable to pay, any penalty, fine, surcharge, inflation indexation, or interest in respect of Tax.

    	 	19	 

    	 

    

	 	(f)	There is no claim or potential claim, which has not been reserved for in the applicable Company’s Latest Balance Sheet, by any Governmental Entity in a jurisdiction where either Company does not file Tax Returns that either Company may be subject to Tax by such jurisdiction. Neither Company has not conducted any business in any jurisdiction in which it did not file Tax Returns.

	 	(g)	There are no Liens for Taxes upon any property or assets of either Company.

	 	(h)	Neither Company is now, not has it ever been, subject to taxation by any Governmental Entity in the United States and has not incurred any Liabilities for Taxes owed to any Governmental Entity in the United States.

	 	(i)	Seller has provided to Buyer (i) complete and accurate copies of all federal, state, local and foreign income Tax Returns of each Company for all periods not closed by the applicable statute of limitations and (ii) complete and accurate information concerning the Tax basis in the assets of each Company.

	 	(j)	Each Company has complied with all applicable Laws relating to the withholding, reporting and payment over of Taxes and have, within the time and in the manner prescribed by applicable Laws, withheld and paid over to the proper Governmental Entities all amounts required to be so withheld and paid over under applicable Laws.

	 	(k)	Neither Company is a party to any joint venture, partnership or other arrangement or Contract that is treated as a partnership for federal income tax purposes.

	 	(l)	Neither Company has been a “United States real property holding corporation” within the meaning of Code Section 897(c)(2) at any time during the time period specified in Section 897(c)(1)(A)(ii) of the Code.

Section 4.17 Personnel.

	 	(a)	Since its formation, each Company has had no Employees, has paid no compensation to any individual for services as an Employee and has incurred no Liabilities to any Employees or non-Employee consultants, officers and/or service providers, of the Company for payment of salaries, wages, bonuses, incentive payments or any other compensation and/or other rights (under contract or applicable Law). No claims were made, and no circumstances exist which may give rise to any claims alleging that any individual or entity (including but not limited to Seller) should be considered or be otherwise entitled to the rights and privileges of an employee of either Company for any services rendered to either Company or otherwise, or that otherwise employer-employee relationship exist or existed in any time between either Company and any entity. Notwithstanding the above, however, since the work of the Companies is managed and operated by the employees of Seller, the non-employee workers (the “Non-Employee Workers”) support provided to the Companies have been paid at cost.

	 	(b)	Schedule 4.19(b) contains a complete and accurate list of the following information for each Non-Employee Worker of each of the Companies as of the Closing Date: The name; primary work location; work being performed; compensation rate; and duration of the agreement.

    	 	20	 

    	 

      

Section 4.18 Related-Party
Transactions. To the Knowledge of Seller, none of Seller nor any director or officer of either Company, or any Related Person
of any such Person (a) is a director, officer or Employee of, or consultant to, or owns, directly or indirectly, any interest in
any Person that is a competitor, vendor, supplier or customer of either Company, (b) owns or has any interest in, directly or indirectly,
in whole or in part, any property, asset or right, whether real, personal or mixed, tangible or intangible (including any of the
Intellectual Property) that is utilized by or in connection with the Business of either Company, (c) is a customer or supplier
of any of either Company, (d) with respect to Persons that are not Employees, receives any benefits under any Benefit Plan of either
of the Companies or (e) directly or indirectly has an interest in or is a party to any Contract with either Company.

 

Section 4.19 Brokers.
Neither Company has engaged any investment banker, finder, broker or sales agent or any other Person in connection with the origin,
negotiation, execution, delivery or performance of any Transaction Document to which it is a party, or the Transactions.

 

Section 4.20 Export and
Import Control Laws.

	 	(a)	Each Company has at all times, conducted its export and import transactions in accordance with all applicable Export and Import Control Laws. Without limiting the foregoing, (i) each Company is in compliance with the terms of all applicable Export and Import Approvals; (ii) there are no pending or, to the Knowledge of Seller, threatened, claims, charges, investigations, violations, settlements, civil or criminal enforcement actions, lawsuits, or other court actions against either Company with respect to any Export and Import Control Laws; (iii) there are no actions, conditions or circumstances pertaining to either Company’s export or import transactions that may give rise to any future claims, charges, investigations, violations, settlements, civil or criminal actions, lawsuits, or other court actions under the Export and Import Control Laws; and (iv) no approval from a Governmental Entity is required for the transfer of Export and Import Approvals to Buyer, or such approvals can be obtained expeditiously without material cost.
	 	 	 
	 	(b)	Each Company has established and maintains a compliance program and reasonable internal controls and procedures appropriate to the requirements of Export and Import Control Laws.
	 	 	 
	 	(c)	Section 4.20 of the Disclosure Schedules sets forth the true, complete and accurate export control classifications, and all other similar relevant information applicable to each Company’s products, services, software and technologies.

Section 4.21 Disclosure. To the Knowledge
of Seller, no representation or warranty contained in this Agreement, including under this Article IV and no statement in the
Disclosure Schedules or any other information provided in writing to the Buyer by either Company or Seller, contains any untrue
statement of material fact or omits to state any material fact necessary to make the statements therein not misleading. To the
Knowledge of Seller and the Companies, there is no material fact directly relating to the Assets, liabilities, Business, operations,
condition (financial or other) or prospects of each Company (including any competitive developments other than facts which relate
to general economic or industry trends or conditions) that materially adversely affects the same.

 

Article V. REPRESENTATIONS
AND WARRANTIES OF BUYER

 

Buyer represents and warrants
to the Companies and Seller that the following statements contained in this Article V are true and correct as of the Closing Date,
except as set forth in the disclosure schedule of the Buyer attached hereto as Schedule B (the “Buyer Disclosure Schedule”)
and therein referencing the Section of this Article V to which such disclosure relates:

 

    	 	21	 

    	 

     

Section 5.01 Organization;
Corporate Power. Buyer is a corporation duly organized, validly existing and in good standing under the Laws of the State of
Wyoming with the requisite power and authority to own, operate and lease Buyer’s properties and to carry out Buyer’s
business as now conducted.

 

Section 5.02 Authorization
of Transactions. Buyer has full power and authority to execute and deliver the Transaction Documents to which Buyer is a party
and to perform Buyer’s obligations hereunder and thereunder. All necessary corporate action, has been taken by Buyer to authorize
the execution, delivery and performance of each of the Transaction Documents to which Buyer is a party and the Transactions. The
execution, delivery and performance by Buyer of the Transaction Documents to which it is a party and the consummation of the Transactions
have been duly and validly authorized by all requisite corporate power on the part of Buyer. The Transaction Documents to which
Buyer is a party have been duly and validly executed and delivered by Buyer. Each Transaction Document to which Buyer is a party
constitute the valid and legally binding obligation of Buyer, enforceable against Buyer in accordance with its terms and conditions,
except to the extent enforcement thereof may be limited by applicable bankruptcy, reorganization, insolvency or moratorium Laws,
or other Laws affecting the enforcement of creditors’ rights or by the principles governing the availability of equitable
remedies.

 

Section 5.03 Governmental
Approvals; Non-contravention.

	 	(a)	No consent, Order, action or non-action of, or filing, notification, declaration or registration with, any Governmental Entity is necessary for the execution, delivery or performance by Buyer of this Agreement or any other Transaction Document to which Buyer is a party.

	 	(b)	The execution, delivery and performance by Buyer of the Transaction Documents to which Buyer is a party, and the consummation by Buyer of the Transactions, do not (i) violate any Laws or Orders to which Buyer is subject or (ii) violate, breach or conflict with any provision of Buyer’s certificate of incorporation or bylaws.

Section 5.04 No
Consent, Violation or Conflict. The execution and delivery of the Transaction Documents by Buyer, the consummation by Buyer
of the transactions contemplated thereby, and compliance by the Buyer with the provisions hereof (a) do not and will not violate
or, if applicable, conflict with any provision of Law, or any provision of Buyer’s amended and restated articles of incorporation
or bylaws; and (b) do not and will not, with or without the passage of time or the giving of notice, result in the breach of, cause
the acceleration of performance or constitute a default or require any consent under, any material instrument or agreement to which
Buyer is a party or by which Buyer or its properties may be bound or affected, other than instruments or agreements as to which
consent shall have been obtained at or prior to the Closing Date or any breaches or defaults which would not affect the Buyer’s
ability to consummate the transactions contemplated thereby.

 

Section 5.05 Legal
Proceedings. There is no action, claim, dispute, suit, investigation or proceeding pending or, to Knowledge of Buyer, threatened,
in writing against Buyer or any of its properties or rights, nor any judgment, order, injunction or decree before any court, arbitrator
or administrative or governmental body which might adversely affect or restrict the ability of Buyer to consummate the transactions
contemplated by the Transaction Documents, or to perform its respective obligations thereunder.

 

Section 5.06 Knowledge.
Buyer has sufficient knowledge, experience and sophistication in business matters, and is capable of evaluating the merits
and risks of its purchase of the Shares and of making an informed investment decision with respect thereto. Other than as set forth
herein, Buyer confirms that this Agreement and the purchase of the Shares hereunder are not and will not be based on a promise
or guarantee by the Companies and Seller or anybody on their behalf as to the future value or marketability of the Shares, and
there is no assurance or guarantee that past performance will be achieved in the future or that forward-looking plans or projections,
or planned products, will materialize or achieve the projected or expected results. Buyer further confirms that Buyer and its advisors
were given the opportunity to examine the financial and business situation of the Companies, and to ask questions and receive answers
from the management of the Companies.

 

    	 	22	 

    	 

     

Section 5.07 Validity
of Stock Consideration; Listing. When issued and delivered in accordance with this Agreement, the Stock Consideration shall
be (a) duly and validly authorized, issued and outstanding, fully paid and non-assessable, and (b) free and clear of any Liens.
The Stock Consideration will, as of the Closing, be subject to securities laws restrictions including limitations on sale, transfer
and disposition applicable to restricted securities under the Securities Act, but the Buyer acknowledges its obligations pursuant
to Section 2.06. Buyer’s Common Stock is quoted on the OTCQB tier of the PTC Markets Group market place.

 

Section 5.08 SEC
Documents and Compliance. Since January 1, 2016, Buyer has filed all reports, schedules, forms, statements and other documents
required to be filed by it with the U.S. Securities and Exchange Commission (“SEC”), pursuant to the reporting requirements
of all applicable U.S. federal securities laws (all of the foregoing, all exhibits included therein and financial statements and
schedules thereto and documents incorporated by reference therein, are hereinafter referred to as the “SEC Documents”).
The SEC Documents comply as to form in all material respects with the requirements of all applicable U.S. federal securities laws,
rules and regulations. The SEC Documents, as of their respective dates of filing with the SEC, did not contain any untrue statement
of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading.

 

Section 5.09 Brokers.
Buyer has not engaged any investment banker, finder, broker or sales agent or any other Person in connection with the origin,
negotiation, execution, delivery or performance of any Transaction Document to which it is a party, or the Transactions.

 

Article VI. ADDITIONAL
AGREEMENTS

 

Section 6.01 Further
Assurances. Following the Closing, each Party shall execute and deliver such documents and other papers and take such further
action as may be reasonably required to carry out the provisions of the Transaction Documents.

 

Section 6.02 Confidentiality.
From and after the Closing Date, Seller shall (and shall cause their Related Persons to) keep confidential and not use in any
manner, any and all Confidential Information relating to the Companies or Buyer or Buyer’s Affiliates that remains in, or
comes into, Seller’s possession in any form. The foregoing shall not preclude Seller from disclosing such Confidential Information
if compelled to disclose the same by judicial or administrative process or by other requirements of any applicable Law (subject
to the provisions of this Section 6.02). If Seller is requested or required (by oral questions, interrogatories, requests for information
or documents in legal, administrative, arbitration or other formal Proceedings, subpoena, civil investigative demand or other similar
process) to disclose any such Confidential Information, Seller shall promptly notify Buyer of any such request or requirement so
that Buyer may seek a protective order or other appropriate remedy and waive compliance with the provisions of this Section 6.02.
If, in the absence of a protective order or other remedy or the receipt of a waiver by Buyer, Seller is required to disclose such
information, Seller, without liability hereunder, may disclose that portion of such Confidential Information that Seller is legally
required to disclose.

 

Section 6.03 Additional
Covenants of the Parties.

	 	(a)	After the Closing Date, except as set forth in Section 6.03(d), Buyer and Seller shall use reasonable commercial efforts to change the authorized signatories of each of the Companies with respect to any bank accounts or other commitments of either of the Companies requiring the designation of authorized signatories.

    	 	23	 

    	 

     

	 	(b)	Upon the Closing, the Board of Directors of Buyer (the “Board”) shall expand the size of the Board by one person, and shall name Donald Su Yo Ruan (“Ruan”) as a Director thereon and as Chairman of the Board.

	 	(c)	Upon the Closing, the Parties shall take such actions as required to name Ruan as President and CEO of each of Company HK and Company Samoa.

	 	(d)	For a period of one (1) year following the Closing Date (or for a period of 13 months in the event that a Post-Closing Default has occurred), until the Buyer has fulfilled its obligations in connection with the Purchase Price under Section 2.02 and the Note under Section 2.03, Ruan shall continue to operate the Companies in substantially the manner as they have been operated prior to the Closing Date. Until the amount under the Note pursuant to Section 2.03 has been paid in full, Ruan remains to be the sole signatory of the company’s bank accounts held by Company HK and Company Samoa post-Closing.

Section 6.04 Seller’s
and Companies’ Deliverables. At the Closing, Seller and the Companies shall deliver to Buyer the following, with the
assistance of Companies’ filing agent, SBC, with the expenses related to the preparation of the following to be paid by Buyer
(although Buyer shall not have any responsibility related to the substance thereof):

	 	(a)	a certificate of good standing for each Company issued by the secretary of state or other appropriate Authority of their state of organization and dated a date that is within ten (10) Business Days of the Closing Date;

	 	(b)	a certificate from Seller and the Companies, in form and substance reasonably acceptable to the Buyer, certifying that all representations and warranties made Seller or the Companies in this Agreement are true and correct at the Closing Date;

	 	(c)	Shares certificates in the name of the Buyer for the Shares, together with a copy of the register of shareholders of each of the Companies, in each case certified by the Chief Executive Officer of each Company, in which the Shares shall have been registered in the name of Buyer, in each case in form and substance as reasonably satisfactory to Buyer;

	 	(d)	an executed copy of the employment agreement in the form as attached hereto as Exhibit 2 (the “Employment Agreement”) executed by Ruan;

	 	(e)	executed resignations, effective as of the Closing Date, of each director and officer of each of the Companies;

	 	(f)	With respect to Seller, such documents as Buyer or its counsel may reasonably request to demonstrate the transfer of ownership of the Shares;

	 	(g)	Duly completed notices to the local Registrar of Companies of any change resulting from the transactions contemplated hereunder;

	 	(h)	Such evidence as the Buyer or its counsel may reasonably request to demonstrate the satisfaction of any notice, consent or waiver requirements under any contract or agreement to which each of the Companies is a party;

	 	(i)	Documentation satisfactory to the Buyer that all banker’s fees, attorney’s fees and other transaction expenses payable by each of the Companies and Seller in connection with the transactions contemplated hereby have been paid in full at or prior to the Closing;

    	 	24	 

    	 

     

	 	(j)	Such other supporting documents and certificates as the Buyer may reasonably request or as may be required pursuant to this Agreement.

Section 6.05 Buyer’s
Deliverables. At the Closing, the Buyer shall deliver:

	 	(a)	To Seller, share certificates in the name of the Seller for ten million (10,000,000) shares of Buyer Stock pursuant to Section 2.02;

	 	(b)	A copy of the register of shareholders of Buyer, in each case certified by the Chief Executive Officer of Buyer, in which the Buyer Stock for ten million shares pursuant to Section 2.02 shall have been registered in the name of Seller, in each case in form and substance as reasonably satisfactory to Seller;

	 	(c)	To Seller, the mutually agreed Note under Section 2.03 satisfactory to Seller;

	 	(d)	To Seller, a certificate from Buyer, in form and substance reasonably acceptable to Seller, certifying that (A) all representations and warranties made by the Buyer in this Agreement are true and correct at the Closing Date with the same force and effect as if such representations and warranties were made at and as of the Closing Date, except for changes therein permitted by this Agreement; and (B) the Buyer has performed or 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;

	 	(e)	To Ruan, the mutually agreed Employment Agreement duly executed by Buyer;

	 	(f)	Such evidence as the Seller or its counsel may reasonably request from Buyer to demonstrate the satisfaction of any notice or filings as required for the transfers of the Buyer Stock; and

	 	(g)	Such other supporting documents and certificates as the Seller may reasonably request or as may be required pursuant to this Agreement.

Section 6.08 Actions
Prior to and Following the Closing. Prior the Closing, Seller shall undertake such actions as required to remove all cash from
the accounts of the Companies other than a balance of $500,000, which the Parties agree shall remain in the account of the Companies
as a whole for purposes of providing working capital following the Closing, and which amount will be repaid to Seller pursuant
to this Agreement and the Note under Section 2.03 within 180 days following the Closing Date.

 

Article VII. UNWINDING

 

Section 7.01 Unwinding.

 

In the event of any of the following that (i)
Buyer does not make the payments as required pursuant to the Note within 180 days following the Closing Date; (ii) Buyer breaches
the covenant set forth in this Agreement or (iii) on the twelve (12) month anniversary of the Closing Date, the market value of
the Stock Consideration (as determined by the Market Price) is not equal to US$750,000 or higher and Buyer does not issue to Seller
additional shares of Buyer Stock to obtain such valuation, and in each or any such case such failure remains uncured for ten (10)
or more Business Days after Seller give written notice of such default to Buyer (each, a “Post-Closing Default”), then
the Parties shall effectuate unwinding of the Transactions and undertake the actions as set forth in Section 7.02.

 

    	 	25	 

    	 

      

Section 7.02 Remedies
for Post-Closing Default.

	 	(a)	In the event of a Post-Closing Default by Buyer, Buyer shall be responsible to pay all the expenses incurred by the Parties for the 180 days of operation post-Closing and for unwinding, and

	 	(i)	The Note shall be deemed void and of no further force and effect;

	 	(ii)	Buyer shall return to Seller all of the Shares, which shall be deemed in their entirety void and of no further force and effect in any event; and

	 	(iii)	Seller shall return to Buyer 90% of the Stock Consideration, and Seller shall be entitled to retain the remaining 10% of the Stock Consideration)

	 	(b)	The Parties covenant and agree to execute such documents and complete such actions as required to effectuate the provisions of this Article VII to the effect sufficiently causing the Companies to return to their original ownership of the Seller and the management control by Ruan.

 

Article VIII.INDEMNIFICATION

 

Section 8.01 General
Indemnification. 

	 	(a)	Subject to the provisions of this Article VIII, Seller hereby agrees to indemnify, defend and hold harmless Buyer, the Companies (following the Closing) and all of Buyer’s Affiliates and each of their respective directors, officers, managers, partners, employees, agents, equity holders, successors and assigns (each, a “Buyer Indemnified Party” and, collectively, the “Buyer Indemnified Parties”), from and against any and all Losses incurred or suffered by any Buyer Indemnified Party arising out of, based upon or resulting from any of the following:

	 	(i)	any breach of any representation or warranty contained in Article III or Article IV;

	 	(ii)	any breach by Seller or the Companies of, or any failure of Seller or the Companies to perform, any of the covenants, agreements or obligations contained in or made pursuant to this Agreement; and

	 	(iii)	all Taxes (or the nonpayment thereof) of (A) either Company or Seller for all Pre-Closing Periods and Pre-Closing Partial Tax Periods and (B) any and all Taxes of any Person (other than the Companies) imposed on any Company as a transferee or successor, by Contract or pursuant to any Law, which Taxes relate to an event or transaction occurring before the Closing.

	 	(b)	Subject to the provisions of this Article VIII, Buyer hereby agrees to indemnify, defend and hold harmless Seller and all of Seller’s Affiliates, from and against any and all Losses incurred or suffered by Seller arising out of, based upon or resulting from any of the following:

	 	(i)	any breach or violation of any of the representations or warranties of the Buyer contained in this Agreement; and

	 	(ii)	any breach or violation of any of the covenants or agreements of Buyer contained in this Agreement.

Section 8.02 Procedures
for Indemnification. In the event that a Person entitled to indemnification under this Article VIII (the “Indemnified
Party”) shall incur or suffer any Losses in respect of which indemnification may be sought under this Article VIII against
the Person(s) required to provide indemnification under this Article VIII (collectively, the “Indemnifying Party”),
the Indemnified Party shall assert a claim for indemnification by providing a written notice (the “Notice of Loss”)
to the Indemnifying Party stating the nature and basis of such indemnification. The Notice of Loss shall be provided to the Indemnifying
Party as soon as practicable after the Indemnified Party becomes aware that it has incurred or suffered a Loss.

 

    	 	26	 

    	 

     

 

Section 8.03 Payment.
Upon a determination of liability under this Article VIII the Indemnifying Party shall pay or cause to be paid to the Indemnified
Party the amount so determined within five (5) Business Days after the date of such determination. If there should be a dispute
as to the amount or manner of determination of any indemnity obligation owed under this Agreement, the Indemnifying Party shall
nevertheless pay when due such portion, if any, of the obligation that is not subject to dispute. Upon the payment in full of any
amounts due under this Article VIII with respect to any claim, the Indemnifying Party shall be subrogated to the rights of the
Indemnified Party against any Person with respect to the subject matter of such claim.

 

Section 8.04 Effect
of Knowledge on Indemnification. The right to indemnification, reimbursement or other remedy based upon any representations,
warranties, covenants and obligations set forth in this Agreement shall not be affected by any investigation conducted with respect
to, or any knowledge acquired (or capable of being acquired) at any time, whether before or after the execution and delivery of
this Agreement, with respect to the accuracy or inaccuracy of or compliance with any such representation, warranty, covenant or
obligation. The waiver of any condition based upon the accuracy of any representation or warranty, or on the performance of or
compliance with any covenant or obligation, shall not affect the right to indemnification, reimbursement or other remedy based
upon such representations, warranties, covenants or obligations.

 

Article IX.TAX
MATTERS

 

Section 9.01 Tax Returns.

	 	(a)	Seller assist the Buyer, at no cost, with the preparation of all Tax Returns for each Company for all taxable periods ending on or before the Closing Date (“Pre-Closing Periods”) that are due after the Closing Date. Such Tax Returns shall be prepared by treating items on such Tax Returns in a manner consistent with the past practices with respect to such items, unless otherwise required by Law. Not less than five (5) days before the filing of any such Pre-Closing Period Tax Return, Seller shall pay to Buyer an amount equal to the Taxes shown as due on such Tax Returns (including any withholding taxes required to be paid by the Company for Seller-level Taxes).

	 	(b)	Buyer shall prepare or cause to be prepared and file or cause to be filed any Tax Returns of each Company for Straddle Periods and Seller assist the Buyer, at no cost, with the preparation of all such Tax Returns. To the extent such Tax Returns relate to the Pre-Closing Partial Tax Period, Buyer shall provide Seller with reasonable opportunity to review and comment on each such Tax Return described in the preceding sentence before filing, and shall make changes to such Tax Returns reasonably requested by Seller. Seller shall be jointly responsible for the payment of the amount equal to the portion of such Taxes, if any, that relates to the Pre-Closing Partial Tax Period, and shall pay to Buyer such amounts not less than five (5) days before the filing of any such Straddle Period Tax Return. For purposes of this Agreement, in the case of any Taxes that are imposed with respect to a Straddle Period, the portion of such Tax which relates to the Pre-Closing Partial Tax Period shall (i) in the case of Taxes imposed on a periodic basis (such as real or personal property Taxes), the amount of such Taxes for the Straddle Period (or, in the case of such Taxes determined on an arrears basis, the amount of such Taxes for the immediately preceding period) multiplied by a fraction, the numerator of which is the number of calendar days in the Straddle Period ending on and including the Closing Date and the denominator of which is the number of calendar days in the entire relevant Straddle Period, and (ii) in the case of any other Tax, be deemed equal to the amount which would be payable if the relevant taxable period ended as of the close of business on the Closing Date. Any credits relating to a Straddle Period shall be taken into account as though the Straddle Period ended on the Closing Date. All determinations necessary to give effect to the foregoing allocations shall be made in a manner consistent with the past practices of the Company.

    	 	27	 

    	 

     

	 	(c)	Seller and Buyer agree to consult and resolve in good faith any disputes arising as a result of the review of the Tax Returns described in Section 9.01(a) and Section 9.01(b)and to mutually consent to the filing as promptly as possible of such Tax Return. In the event Seller and Buyer are unable to resolve any dispute within 10 days following notice of comments to the applicable Tax Return, then the Company may file such Tax Return on or before the due date (including extensions) therefor without such determination having been made and without the consent of Seller.

Section 9.02 Assistance
and Cooperation.

	 	(a)	After the Closing Date, each of Seller, Buyer and the Companies shall:

	 	(i)	assist the other Party (at no expense to such other Party) in preparing any Tax Returns that such other Party is responsible for preparing and filing in accordance with Section 9.01 or in preparing any financial statements, including affording reasonable access to books, records and personnel;

	 	(ii)	keep the other Party fully informed (at no expense of such other Party) of the progress and substance of the preparation of any Tax Returns described in Article IX for which such other Party is not primarily responsible;

	 	(iii)	cooperate fully in preparing for any audits of, or disputes with Governmental Entities regarding, any Taxes or Tax Returns of the Companies and take any actions reasonably requested by the other Party in connection therewith;

	 	(iv)	make available to one another and to any Governmental Entity, as reasonably requested in connection with any Tax Return described in Section 9.01 or any Tax Claim, all information relating to any Taxes or Tax Returns of the Company; and

	 	(v)	furnish one another with copies of all correspondence received from any Governmental Entity in connection with any Tax audit or information request with respect to any such taxable period.

	 	(b)	The Parties agree to report consistently, for all income tax purposes, amounts paid by or on behalf of the Companies to satisfy payments due under any retention agreements to the extent such amounts are included as a payment at Closing, as a compensation expense of the Companies on the income Tax Return of the Companies for the period ending on the Closing Date.

 

Article X.MISCELLANEOUS

 

Section 10.01 Notices. 

	 	(a)	Any notice or other communications required or permitted hereunder shall be in writing and shall be sufficiently given if personally delivered to it or sent by email, overnight courier or registered mail or certified mail, postage prepaid, addressed as follows:

 

    	 	28	 

    	 

     

if to the Companies (before
Closing), to:

 

Ascenda Corporation+

Attention: Donald
Ruan

35J Jia-Li Building

1228 Yan-An Road

Shanghai, China
200052

E-mail: donald.ruan@ascendaintl.com

 

if to Seller, to:

 

Ascenda Corporation

Attention: Ruan
Su Yo

35J Jia-Li Building

1228 Yan-An W.
Road

Shanghai, China
200052

E-mail: donald.ruan@ascendaintl.com

 

If to Ruan:

 

Ascenda Corporation

Attention: Ruan,
Su Yo

35J Jia-Li Building

1228 Yan An W.
Road

Shanghai, China
200052

E-mail: donald.ruan@ascendaintl.com

 

If to Buyer or, following
the Closing, the Companies:

 

Life Clips, Inc.

Attention: Huey
Long, Chief Executive Officer

18851 NE 29th
Ave, Suite 700

Aventura, FL
33180

E-mail: hlong@lifeclips.com

 

With a copy, which shall
not constitute notice, to:

 

Legal & Compliance,
LLC

330 Clematis
Street, Suite 217

West Palm Beach,
FL 33401

	 	(b)	Any Party may change its address for notices hereunder upon notice to each other Party in the manner for giving notices hereunder.

	 	(c)	Any notice hereunder shall be deemed to have been given (i) upon receipt, if personally delivered, (ii) on the day after dispatch, if sent by overnight courier, (iii) upon dispatch, if transmitted by email with return receipt requested and received and (iv) three (3) days after mailing, if sent by registered or certified mail.

Section 10.02 Attorneys’
Fees. In the event that any Party institutes any action or suit to enforce this Agreement or to secure relief from any default
hereunder or breach hereof, the prevailing Party shall be reimbursed by the losing Party for all costs, including reasonable attorney’s
fees, incurred in connection therewith and in enforcing or collecting any judgment rendered therein.

 

    	 	29	 

    	 

     

Section 10.03 Amendments;
No Waivers; No Third-Party Beneficiaries.

	 	(a)	At any time prior to the Closing Date, this Agreement may be amended, modified, superseded, terminated or cancelled, and any of the terms, covenants, representations, warranties or conditions hereof may be waived, only by a written instrument executed by all of the Parties hereto.

	 	(b)	Every right and remedy provided herein shall be cumulative with every other right and remedy, whether conferred herein, at law, or in equity, and may be enforced concurrently herewith, and no waiver by any Party of the performance of any obligation by the other shall be construed as a waiver of the same or any other default then, theretofore, or thereafter occurring or existing.

	 	(c)	Neither any failure or delay in exercising any right or remedy hereunder or in requiring satisfaction of any condition herein nor any course of dealing shall constitute a waiver of or prevent any Party from enforcing any right or remedy or from requiring satisfaction of any condition. No notice to or demand on a Party waives or otherwise affects any obligation of that Party or impairs any right of the Party giving such notice or making such demand, including any right to take any action without notice or demand not otherwise required by this Agreement. No exercise of any right or remedy with respect to a breach of this Agreement shall preclude exercise of any other right or remedy, as appropriate to make the aggrieved Party whole with respect to such breach, or subsequent exercise of any right or remedy with respect to any other breach.

	 	(d)	Notwithstanding anything else contained herein, no Party shall seek, nor shall any Party be liable for, consequential, punitive or exemplary damages, under any tort, contract, equity, or other legal theory, with respect to any breach (or alleged breach) of this Agreement or any provision hereof or any matter otherwise relating hereto or arising in connection herewith.

Section 10.04 Expenses.
Unless otherwise contemplated or stipulated by this Agreement, all costs and expenses incurred in connection with this Agreement
shall be paid by the Party incurring such cost or expense. Notwithstanding anything
herein to the contrary, however, all expenses related to each and every aspect of the Transactions contemplated herein shall be
paid by Buyer. Buyer acknowledges and agrees that Seller shall have no obligation for any Transaction expenses.

 

Section 10.05 Successors
and Assigns; Benefit. The provisions of this Agreement shall be binding upon and inure to the benefit of the Parties and their
respective successors and assigns. No Party may assign (other than by operation of law following the Closing), delegate or otherwise
transfer any of its rights or obligations under this Agreement without the written consent of the other Parties. Nothing in this
Agreement, expressed or implied, shall confer on any Person other than the Parties, and their respective successors and assigns,
any rights, remedies, obligations, or Liabilities under or by reason of this Agreement.

 

Section 10.06 Governing
Law. This Agreement, and all matters based upon, arising
out of or relating in any way to the Transactions or the Transaction
Documents, including all disputes,
claims or causes of action
arising out of or relating to the Transactions or the Transaction
Documents as well as the interpretation,
construction, performance and enforcement of the Transaction Documents, shall be governed by the laws of the United States and
the State of Florida, without regard to any jurisdiction’s conflict-of-laws principles and without regard to the United Nations
Convention on Contracts for the International Sale of Goods.

 

Section 10.07 Survival.
The representations and warranties in this Agreement shall survive the Closing for a period of 12 months from the Closing Date,
and no claim for indemnification may be made after such time; provided, however, that the representations and warranties made in
Section 4.01 (Authorization of Transactions ), Section 4.02 (Organization), Section 4.03 (Capitalization) and Section 4.05 (Governmental
Approvals; shall survive indefinitely. Notwithstanding the foregoing, any representation or warranty (and the indemnification obligations
of the Parties with respect thereto) that would otherwise terminate in accordance with this Section 10.07 will continue to survive
if notice for indemnification shall have been given in accordance with this Article VIII on or before such termination date, until
such claim for indemnification has been satisfied or otherwise resolved as provided herein. All covenants and agreements in this
Agreement will survive until fully performed; provided, however, that, nothing herein shall prevent a Party from making any claim
hereunder, or relieve any other Party from any liability hereunder, after such time for any breach thereof.

 

    	 	30	 

    	 

     

Section 10.08 Resolution
of Disputes. Except as otherwise provided herein, all controversies, disputes or actions between the Parties arising out of
the Transactions or this Agreement, including their respective Affiliates, owners, officers, directors, agents and employees, arising
from or relating to this Agreement shall on demand of either party be submitted for arbitration to the Hong Kong International
Arbitration Center The Parties agree that, in connection with any such arbitration proceeding, each shall submit or file any claim
which would constitute a compulsory counterclaim (as defined by Rule 13 of the Federal Rules of Civil Procedures) within the same
proceeding as the claim to which it relates. Any such claim which is not submitted or filed in such proceeding shall be barred.
The arbitration proceedings shall be conducted in accordance with the then-current commercial arbitration rules, except the Parties
shall be entitled to limited discovery at the discretion of the arbitrator(s) who may, but are not required to, allow depositions.
In no event shall discovery last more than 20 days. Upon the commencement of the arbitration
proceeding, each Party shall have no more than 14 days to present their position in the action and rebut the other Party’s
position. The arbitrator shall be instructed to use every reasonable effort to perform its services within seven days of request,
and, in any case, as soon as practicable. The Parties agree to be bound by the provisions of any limitation on the period of time
by which claims must be brought under Florida law or any applicable federal law. The arbitrator(s) shall have the right to award
the relief which he or she deems proper, consistent with the terms of this Agreement, including compensatory damages (with interest
on unpaid amounts from due date), injunctive relief, specific performance, legal damages and costs. The award and decision of the
arbitrator(s) shall be conclusive and binding on all Parties, and judgment upon the award may be entered in any court of competent
jurisdiction. Any right to contest the validity or enforceability of this award shall be governed exclusively by the United States
Arbitration Act. The provisions of this Section 10.08 shall continue in full force and effect subsequent to and notwithstanding
the expiration or termination of this Agreement.

 

Section 10.09 Publicity.
The parties shall agree to the content of any press release or other public announcement concerning this Agreement or the transactions
contemplated hereby before issuing the same. Nothing contained herein shall prevent any party from at any time furnishing any information
to any Governmental Entity or publicly filing any information with the SEC which it is by law or otherwise so obligated to disclose
or from making any disclosure which its counsel deems necessary or advisable in order to fulfill such party’s disclosure
obligations under applicable U.S. law or the rules of the any stock exchange to which the party is subject.

 

Section 10.10 Severability.
If any 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 is not affected in any manner adverse to any Party. Upon such determination that any provision
is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to
effect the original intent of the Parties as closely as possible in an acceptable manner to the end that the Transactions are fulfilled
to the extent possible.

 

Section 10.11 Waiver
of Jury Trial. 

	 	(a)	EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS, THE PERFORMANCE THEREOF OR THE FINANCINGS CONTEMPLATED THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS Section 10.11(a).

    	 	31	 

    	 

     

	 	(b)	Each of the Parties acknowledge that each has been represented in connection with the signing of this waiver by independent legal counsel selected by the respective Party and that such Party has discussed the legal consequences and import of this waiver with legal counsel. Each of the Parties further acknowledge that each has read and understands the meaning of this waiver and grants this waiver knowingly, voluntarily, without duress and only after consideration of the consequences of this waiver with legal counsel.

Section 10.12 Entire
Agreement. This Agreement constitute the entire agreement between the Parties with respect to the subject matter hereof and
thereof and supersedes all prior agreements and understandings, both oral and written, between the Parties with respect to the
subject matter hereof and thereof.

 

Section 10.13 Specific
Performance. Each Party agrees that irreparable damage would occur if any provision of this Agreement were not performed in
accordance with the terms hereof and that each Party shall be entitled to seek specific performance of the terms hereof in addition
to any other remedy at law or in equity.

 

Section 10.14 Counterparts.
This Agreement may be executed in two or more counterparts, all of which shall be considered one and the same agreement and
shall become effective when counterparts have been signed by each of the Parties and delivered to the other Parties, it being understood
that each Party need not sign the same counterpart. A facsimile copy or electronic transmission of a signature page shall be deemed
to be an original signature page.

 

Section 10.15 Construction.
The table of contents and headings contained in this Agreement are for reference purposes only and will not affect in any way
the meaning or interpretation of this Agreement. In the event of a conflict between language or amounts contained in the body of
this Agreement and language or amounts contained in the Exhibits or Schedules attached hereto, the language or amounts in the body
of the Agreement shall control. Any reference in this Agreement to gender shall include all genders, and words imparting the singular
number only shall include the plural and vice versa. The use of the terms “including” or “include” shall
in all cases herein mean “including, without limitation” or “include, without limitation,” respectively.
Reference to any Person includes such Person’s predecessors, successors and assigns to the extent, in the case of successors
and assigns, such successors and assigns are permitted by the terms of any applicable agreement, and reference to a Person in a
particular capacity excludes such Person in any other capacity or individually. Reference to any agreement (including this Agreement),
document or instrument means such agreement, document or instrument as amended or modified and in effect from time to time in accordance
with the terms thereof and, if applicable, the terms hereof. Reference to any Law means such Law as amended, modified, codified,
replaced or re-enacted, in whole or in part, including rules, regulations, enforcement procedures and any interpretations promulgated
thereunder. Underscored references to Articles, Sections or Schedules shall refer to those portions of this Agreement. The use
of the terms “hereunder,” “hereof,” “hereto” and words of similar import shall refer to this
Agreement as a whole and not to any particular Article, Section or clause of or Exhibit, Annex or Schedule to this Agreement.

 

[Signature page follows]

 

    	 	32	 

    	 

     

IN WITNESS WHEREOF, the Parties have caused
this Agreement to be duly executed as of the Closing Date.

 

	 	Life Clips, Inc.
	 	 	 
	 	By:	/s/
    Huey Long
	 	Name:	Huey Long
	 	Title:	Chief Executive Officer
	 	 	 
	 	Ascenda Corporation
	 	 	 
	 	By:	/s/ Donald Ruan
	 	Name:	Donald Ruan
	 	Title:	Chief Executive Officer
	 	 	 
	 	Hong Kong Ascenda International Co., Limited, Hong Kong
	 	 	 
	 	By:	/s/ Donald Ruan
	 	Name:	Donald Ruan
	 	Title:	Chief Executive Officer
	 	 	 
	 	Hong Kong Ascenda International Co., Limited, Samoa
	 	 	 
	 	By:	/s/ Donald Ruan
	 	Name:	Donald Ruan
	 	Title:	Chief Executive Officer

 

    	 	33

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