Document:

MEMBERSHIP INTEREST PURCHASE AGREEMENT

 

This MEMBERSHIP INTEREST
PURCHASE AGREEMENT (the “Agreement”) is made of as January 14, 2012, by and among POSITRON CORPORATION, a publicly-owned
Texas corporation (“Buyer”), MANHATTAN ISOTOPE TECHNOLOGY LLC, a limited liability company organized under the laws
of New Mexico, (the “Company”), JASON KITTEN (“Jason”) and SUZANNE KITTEN (“Suzanne, together with
Jason, the “Sellers”). Certain other terms used herein are defined below in Article I or elsewhere in this Agreement.

 

RECITALS

 

WHEREAS, the Company
is in the business of refurbishing spent strontium-82/rubidium-82 and other radioisotope generators, recycling strontium-82 and
other radioisotopes from generators, processing of strontium-82 and other radioisotopes, providing expertise in production of radioisotopes
and radioisotopes services(collectively, the “Business”);

WHEREAS,
the Sellers are the owners of all of the membership interests of the Company;

 

Whereas,
Buyer is a publicly-owned Texas corporation with a class of securities registered pursuant to Section 12(g) of the Securities Exchange
Act of 1939, as Amended and is in the business of research, development, design, and manufacture of certain medical equipment,
including, but not limited to devices utilizing positron emission tomography technology;

 

WHEREAS, on and
subject to the terms and conditions of this Agreement, Buyer desires to purchase from Sellers, and Sellers desire to sell to Buyer,
all of the issued and outstanding membership interests of the Company (the “Interests”);

 

NOW, THEREFORE,
in consideration of the foregoing recitals and the mutual promises, representations, warranties and covenants hereinafter set forth
and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

 

 

ARTICLE I

Definitions

 

For convenience, certain
terms used in more than one part of this Agreement are listed in alphabetical order and defined or referred to below (such terms
as well as any other terms defined elsewhere in this Agreement shall be equally applicable to both the singular and plural forms
of the terms defined).

 

"Acquisition Proposal"
is defined in Section 5.3.

 

“Action” is
defined in Article 10.5(a).

 

“Affiliates”
means, with respect to a particular party, persons or entities controlling, controlled by or under common control with that party,
as well as any officers, directors and majority-owned entities of that party or of its Affiliates. For the purposes of the foregoing,
ownership, directly or indirectly, of 10% or more of the voting stock or other equity interest shall be deemed to constitute control.

    	 

    	 

    
 

“Agreement”
means this Agreement and the Exhibits and Disclosure Schedules attached hereto, as each may be amended, restated, supplemented
or modified from time to time.

 

“Assets” means
all of the assets, properties, goodwill and rights of every kind and description, real and personal, tangible and intangible, wherever
situated and whether or not reflected in the most recent Financial Statements, that are owned or possessed by the Company.

 

“Benefit Plan”
means: (i) as to employees employed in the United States, any (a) “employee benefit plan” as defined in Section 3(3)
of ERISA, and (b) supplemental retirement, bonus, deferred compensation, severance, incentive plan, program or arrangement or other
employee fringe benefit plan, program or arrangement; and (ii) as to employees employed outside the United States of America, all
employee benefit, health, welfare, supplemental unemployment benefit, bonus, pension, profit sharing, deferred compensation, stock
compensation, stock purchase, retirement, hospitalization insurance, medical, dental, legal, disability and similar plans or arrangements
or practices.

 

“Business”
means the refurbishment of spent strontium-82/rubidium-82 and other radioisotope generators, recycling strontium-82 and other radioisotopes
from generators, processing of strontium-82 and other radioisotopes, providing expertise in production of radioisotopes and radioisotopes
services currently located at 2301 C 122nd Street, Lubbock, Texas and such other locations that shall be opened by the Company.

 

“Buyer Indemnifiable Damages” is
defined in Article 10.1.

 

“Buyer Indemnified Party” is defined
in Article 10.1.

 

“Cash Consideration”
is defined in Article 2.3.

 

“Charter Documents”
means an entity's certificate or articles of incorporation, certificate defining the rights and preferences of securities, articles
of organization, general or limited partnership agreement, certificate of limited partnership, joint venture agreement or similar
document governing the entity.

 

“Claim Notice” is defined in Article
10.3(a).

 

“Claim Response” is defined in Article
10.3(a).

 

“Closing” is defined in Article
2.4.

 

“Closing Certificates” means the
certificates to be delivered by Sellers under Article 8.3 and any other provisions hereof.

 

“Closing Date” is defined in Article
2.4.

 

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

 

“Company Contracts” is defined in
Article 3.16.

 

“Confidential Information”
means any trade secrets of the Company and any information concerning the businesses and affairs of the Company that is not already
generally available to the public, including personnel information, know-how and other technical information, customer lists, customer
information and supplier information.

 

“Contract”
means any written or oral contract, agreement, lease, instrument, or other commitment that is binding on any person or its property
under applicable law.

 

“Court Order”
means any judgment, decree, injunction, order or ruling of any federal, state, local or foreign court or governmental or regulatory
body or authority that is binding on any person or its property under applicable law.

 

“Damages” is defined in Article
10.1.

 

“Default” means
(a) a breach, default or violation, (b) the occurrence of an event that with or without the passage of time or the giving of notice,
or both, would constitute a breach, default or violation, or (c) with respect to any Contract, the occurrence of an event that
with or without the passage of time or the giving of notice, or both, would give rise to a right of termination, renegotiation
or acceleration or a right to receive damages or a payment of penalties.

 

“Disclosure Schedule”
means any of the schedules referred to herein containing information relating to any of the Sellers that have been provided to
Buyer on the date hereof.

 

“DMF” is defined
in Article 2.3.

 

“EBITDA” means
the earnings before interest, taxes, depreciation and amortization of the Company and their subsidiaries on a consolidated basis
as determined by independent certified public accountants or auditors in accordance with GAAP.

 

“Earn-out Consideration”
is defined in Article 2.3.

 

“Encumbrances”
means any lien, mortgage, security interest, pledge, restriction on transferability, defect of title or other claim, charge or
encumbrance of any nature whatsoever on any property or property interest.

 

“Environmental Condition”
is defined in Article 3.15(b).

 

“Environmental Law”
means all Laws and Court Orders currently applicable to the Company relating to pollution and protection of the public or the environment
as well as any principles of common law under which a party may be held liable for the release or discharge of any Hazardous Substances
into the environment.

 

“ERISA” means
the Employee Retirement Income Security Act of 1974, as amended.

 

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“Exchange Act” means the Securities
Exchange Act of 1934, as amended.

 

“Expiration Date” is defined in Article
10.4.

 

“Financial Statements” is defined
in Article 3.5.

 

“Financial Statement Date” means
the effective date of the applicable Financial Statements.

 

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

 

“Governmental Permits”
means all governmental permits, licenses, registrations, certificates of occupancy, approvals and other governmental authorizations.

 

“Hazardous Substances”
means any toxic or hazardous gaseous, liquid or solid material or waste that may or could pose a hazard to the environment or human
health or safety including (i) any “hazardous substances” as defined by the federal Comprehensive Environmental Response,
Compensation and Liability Act, 42 U.S.C. sec. 9601 et seq., (ii) any “extremely hazardous substance,” “hazardous
chemical,” or “toxic chemical” as those terms are defined by the federal Emergency Planning and Community Right-to-Know
Act, 42 U.S.C. sec. 11001 et seq., (iii) any “hazardous waste,” as defined under the federal Solid Waste Disposal Act,
as amended by the Resource Conservation and Recovery Act, 42 U.S.C. sec. 6901 et seq., (iv) any “pollutant,” as defined
under the federal Water Pollution Control Act, 33 U.S.C. sec. 1251 et seq., as any of such laws in clauses (i) through (iv) as
amended, and (v) any regulated substance or waste under any Environmental Laws or Court Orders that have been enacted, promulgated
or issued by any federal, state or local governmental authorities concerning protection of the environment.

 

“Immaterial Lease” is defined in
Article 3.10.

 

“Indemnifiable Loss” is defined in
Article 10.6.

 

“Indemnified Party" is defined in
Article 10.3(a).

 

“Indemnitor” is defined in Article
10.3(a).

 

“Indemnity Payment” is defined in
Article 10.6.

 

“Intellectual Property”
means any copyrights, patents, trademarks, service marks, trade names, information, proprietary rights, processes, technology rights
and licenses, trade secrets, franchises, know-how, inventions, designs, software, software revisions and other intellectual property.

 

“Interests”
is defined in Article 2.1.

 

“Knowledge” means actual or constructive
knowledge.

 

“Inventory” means all inventory,
including raw materials, supplies, work in process and finished goods.

 

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“Law” means
any statute, law, ordinance, regulation, order or rule of any federal, state, local, foreign or other governmental agency or body
or of any other type of regulatory body, other than an Environmental Law, including those covering energy, safety, health, transportation,
bribery, recordkeeping, zoning, anti-discrimination, antitrust, wage and hour, and price and wage control matters.

 

“Liability”
means any direct or indirect liability, indebtedness, obligation, claim, loss, damage, deficiency, guaranty or endorsement of or
by the Company, absolute or contingent, accrued or unaccrued, due or to become due, liquidated or unliquidated.

 

“Liquidated Claim
Notice” is defined in Article 10.3(a).

 

“Litigation”
means any lawsuit, action, arbitration, administrative or other proceeding, criminal prosecution or governmental investigation
or inquiry.

 

“Material Adverse
Effect” means a material adverse effect on the Business of the Company taken as a whole, including the Assets, financial
condition, results of operations, competitive position and products.

 

“Minor Contract”
means any Contract that is terminable by a party on not more than 30 days' notice without any Liability and/or any Contract under
which the obligation of a party (fulfilled and to be fulfilled) involves an amount of less than $10,000.

 

“Net Income After
Tax” means the residual income for each fiscal year of the Company, which is calculated by subtracting
cost of goods sold, operating expenses, depreciation and amortization, interest and other expenses and income tax from Net Revenue.

 

“Net
Revenue” means the net billed revenue for each fiscal year of the Company, on an accrual basis, that is actually collected
by the Company, net of any fallouts or discounts as determined by the Company’s management and/or the Company’s accountants. 

 

“Ordinary course”
or "ordinary course of business" means the ordinary course of business that is consistent with past custom and practice
(including with respect to quantity and frequency).

 

“Patents” means
all patents, patent applications, and inventions and discoveries that may be patentable.  

 

“Permitted Encumbrances”
shall mean: (a) Encumbrances imposed by Law, such as carriers’, warehousemen’s, mechanics’, materialmen’s,
landlords’, laborers’, suppliers’ and vendors’ liens incurred in the ordinary course of business and securing
obligations which are not yet due or which are being contested in good faith; (b) with respect to Real Property, Encumbrances
which do not impair the use (in the manner currently used) or value of the parcel of real property to which they relate in any
material respect; and (c) the Encumbrances set forth in Schedule 3.7.

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“Person” means
any natural person, corporation, partnership, limited liability company, proprietorship, association, trust or other legal entity.

 

“Personal Property
Leases” is defined in Article 3.10.

 

“Pro Rata Portion”
is defined in Article 2.3.

 

“Purchase Price” is defined in Article
2.3.

 

“Real Estate Leases” is defined
in Article 3.8.

 

“Real Property” is defined in Article
3.8.

 

“Response Period” is defined in
Article 10.3(a).

 

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

 

“Sellers Indemnified Party” is defined
in Article 10.2.

 

“Taxes” means
all taxes, duties, charges, fees, levies or other assessments imposed by any taxing authority including, without limitation, income,
gross receipts, value-added, excise, withholding, personal property, real estate, sale, use, ad valorem, license, lease, service,
severance, stamp, transfer, payroll, employment, customs, duties, alternative, add-on minimum, estimated and franchise taxes (including
any interest, penalties or additions attributable to or imposed on or with respect to any such assessment).

 

“Tax Return”
means any return (including any information return), report, statement, schedule, notice, form, estimate or declaration of estimated
tax relating to or required to be filed with any governmental authority in connection with the determination, assessment, collection
or payment of any Tax.

 

“Trade Secrets”
means all know-how, trade secrets, confidential information, customer lists, software, technical information, data, process technology,
plans, drawings, and blue prints, owned, used or licensed (as licensor or licensee) by the Company, except for any such item that
is (i) generally available to the public, (ii) becomes available to a Person on a non- confidential basis from a source other than
the Company or its representatives, which has represented to the Person (and which the Person has no reason to disbelieve after
due inquiry) that it is entitled to disclose it or (iii) was in the possession of or was known to the Person on a non-confidential
basis prior to the disclosure thereof to the Person by the Company or its representatives.

 

“Transaction Documents” means this
Agreement and the documents contemplated hereby.

 

“Transactions” means the sale of
the Interests, and the other transactions contemplated by the Transaction Documents.

 

“Unliquidated Claim” is defined
in Article 10.3(a).

 

“Welfare Plan” is defined in Article
3.20.

 

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ARTICLE II

Purchase
and Sale

 

2.1 Purchase and
Sale. Subject to the terms and conditions contained in this Agreement, Sellers shall sell, assign, transfer and deliver
to Buyer, and Buyer shall purchase from Sellers, all of the Sellers’ issued and outstanding membership interests of any form,
class or designation of the Company (the “Interests”), in exchange for a purchase price which shall be paid under the
terms and conditions as set forth herein (the “Purchase Price”).

 

2.2 Assumed Liabilities.
Buyer agrees that, on the Closing Date, Buyer will assume and thereafter pay, perform or discharge, as the case may be (collectively,
the “Assumed Liabilities”) the liabilities as set forth in Schedule 2.2.

 

2.3 Purchase Price.
The Purchase Price for the Interests shall be delivered to the Sellers pro rata in accordance with their ownership of the Interests
immediately prior to the Closing, as set forth in Schedule 2.3 (the “Pro Rata Portion”), plus the assumption of Buyer
of the Assumed Liabilities described in Section 2.2 as follows: earn out payments equal to the lesser of: (x) 20 percent (20%)
of the Net Income after Tax generated from sales of the Business of the Sellers, as well as from Sr-82 processed from outside target
irradiators at the Company under the MIT/Positron Drug Master File (“DMF”), as well as from the Buyers generators or
(y) $3,500,000 payable as described below ("Earn-out Consideration"); (iii) including previous advances in the Company
equal to Forty Five Thousand Dollars ($45,000).

 

 

(a) Earn-out Consideration.
Beginning from the Closing Date until the earlier of (a) December 31, 2018 or (b) the end of employment of Jason Kitten, Sellers
shall receive Earn-Out Consideration in an amount equal to the lesser of: (x) 20 percent (20%) of the Net Income after Tax generated
from sales of the Business of the Sellers, as well as from Sr-82 processed from outside target irradiators at the Company under
the MIT/Positron Drug Master File (“DMF”), as well as from the Buyers generators or (y) $3,500,000.

 

(b) Advance Consideration.
At the Closing, the Buyer shall immediately commence advancing the Company funds to pay the following Company expenses: (i) payroll
and (ii) general and administrative expenses. Said advances shall be determined in the maximum monthly amount of Seventy Five
Thousand Dollars ($75,000) for a period of 12 months following the Closing. This maximum may be increased if deemed in the best
interest of the Company.  

 

2.4 Closing.
The closing (the “Closing”) of the transactions contemplated by this Agreement shall occur by telephone with deliveries
of Closing documents by Federal Express and email, or in person at a mutually convenient location, or by such other method as
shall be mutually agreeable to the Parties. Any executed Closing documents sent by a Party or its counsel to the other Party or
its counsel prior to Closing shall be held in escrow by such other Party or its counsel until such executed documents are authorized
to be released by an executive officer of the sending Party or by the sending Party's counsel. The Closing shall occur on or about
January 2, 2011, provided the closing conditions set forth in Article 8 and Article 9 have been satisfied or waived (the “Closing
Date”), and shall be effective as of 11:59 p.m. on such date or such other time and/or date as shall be mutually agreeable
to the Parties.

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2.5 Items to be Delivered
Immediately Prior to or at Closing. At or immediately prior to the Closing:

 

(a) Sellers shall deliver
to Buyer executed originals of the certificate or certificates representing all of the Interests being sold to Buyer hereunder,
duly endorsed in blank or accompanied by powers duly executed in blank; and

 

(b) Sellers shall deliver
to Buyer, and Buyer shall deliver to Sellers, executed originals of the (1) certificates referred to in Articles 8 and 9; and (2)
executed employment agreement by and between Positron Pharmaceutical Company, and Jason; (3) executed employment agreements by
and between Buyer and the existing employees of the Company;

  

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES

OF SELLERS AND THE COMPANY

 

Each of the Sellers and
the Company, jointly and severally, hereby represents and warrants to Buyer, with all such representations and warranties only,
as follows:

 

3.1 Corporate Status.
The Company is a limited liability company duly organized, validly existing and in good standing under the Laws of the State of
Texas. The Company is qualified to do business as a foreign corporation in the jurisdictions where they are required to be so qualified
unless the failure to be so qualified would not have a Material Adverse Effect. The Charter Documents and bylaws of the Company
that have been delivered to Buyer as of the date hereof are effective under applicable Laws and are current, correct and complete.

 

3.2 Authorization
Delivered. Each of the Company and Sellers has the requisite power and authority to execute and deliver the Transaction
Documents to which they are a party and to perform the Transactions performed or to be performed. Each Transaction Document executed
and delivered by the Sellers has been duly executed and delivered by each Sellers and the Company and constitutes a valid and binding
obligation of the Sellers and the Company, enforceable against each Sellers and the Company in accordance with its terms, except
as limited by applicable bankruptcy, creditor, insolvency and other laws of similar effect and by general principles of equity.

 

3.3 Consents and
Approvals. Except as set forth on Schedule 3.3 attached hereto, neither the execution and delivery by the Sellers and the
Company of the Transaction Documents to which it is a party, nor the performance of the Transactions performed or to be performed
by the Sellers and the Company, require any filing, consent or approval, constitute a Default or cause any payment obligation to
arise under (a) Court Order to which Sellers and the Company is subject, (b) the Charter Documents or bylaws of the Company or
(c) any material Contract, Governmental Permit or other document to which Sellers and the Company is a party or by which the properties
or other assets of the Company may be subject.

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3.4 Membership Interest Ownership.

 

(a) The Sellers are the
sole record and beneficial owner of all of the issued and outstanding units and membership interests of any form, class and designation
of the Company. There exists no options, warrants, calls, commitments or other rights of any character (including conversion or
preemptive rights) relating to the acquisition of any issued or unissued common stock or other securities of the Company.

 

(d)The Sellers recognize
that the Buyer would have no adequate remedy at law if Sellers have created, issued or otherwise transferred, any of the membership
interests not set forth herein. Therefore, the Sellers hereby agree and covenant that the existence of any membership interests
not set forth herein shall be retired, cancelled, and dispossessed of any voting, liquidation, dividend or other rights.

 

3.5 Financial Statements.
At the Closing the Sellers shall deliver the Company’s Financial Statements as of December 31, 2010 and December 31, 2009
(each a “Financial Statement”) which shall be prepared in accordance with GAAP and present fairly, in all material
respects, the financial position of the Company, and the results of its operations and its cash flows for the period then ended.

 

3.6 Reserved.

 

3.7 Title to Assets
and Related Matters. The Company has good and marketable title to, valid leasehold interests in or valid licenses to use,
all of its Assets, including but not limited to the Equipment, free from any Encumbrances except Permitted Encumbrances as set
forth in Schedule 3.7.

 

3.8 Real Property.
Schedule 3.8 lists all real estate used in the operation of the Business as well as any other real estate that is owned, in the
possession of or leased by the Company and the improvements (including and other structures) located on such real estate (collectively,
the “Real Property”), and lists any lease agreements to which the Company is a party (the “Real Estate Leases”).

 

3.9 Certain Personal
Property. Schedule 3.9 lists each item of tangible personal property that was reflected in the Financial Statements and
that has a fair market value in excess of $5,000. Except for those items subject to the Personal Property Leases and certain computer
hardware and software owned by the Company’s employees or consultants with an aggregate value of less than $5,000, no Person
other than the Company owns any vehicles, material equipment or other material tangible assets located on the Real Property that
have been used in the Business or that are necessary for the operation of the Business.

 

3.10 Personal Property
Leases. Schedule 3.10 lists all existing lease agreements to which any of the assets or properties (other than Real Property)
used by the Company in the operation of the Business are subject, except those lease agreements under which the aggregate annual
payments are less than $10,000 (each, an “Immaterial Lease”). All such leases (excluding Immaterial Leases) are referred
to herein as the “Personal Property Leases.”

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3.11 Accounts Receivable.
Except as set forth in Schedule 3.11, all accounts receivable of the Company (a) are valid and genuine, (b) arise out of bona fide
sales and deliveries of goods, performance of services or other business transactions, (c) are not subject to valid defenses, set-offs
or counterclaims other than normal returns and allowances, and (d) were generated only in the ordinary course of business.

 

3.12 Equipment.
All equipment reflected on the Financial Statements and all equipment owned by the Company was acquired and has been maintained
in accordance with the regular business practices of the Company, consists of items of a quality and quantity useable in the ordinary
course of the Company’s business consistent with past practice, and is valued in conformity with GAAP applied on a consistent
basis.

 

3.13 Liabilities.
The Company does not have any material Liabilities, other than (a) Liabilities specified in Schedule 3.13, (b) Liabilities specified
its respective Financial Statements (except as heretofore paid or discharged), (c) Liabilities incurred in the ordinary course
of business since the Financial Statement Date that, individually or in the aggregate, are not material to the Business, or (d)
Liabilities under any Contracts that were not required under Schedule 3.13 to have been specifically disclosed or reserved for
on its respective Financial Statements.

 

3.14 Taxes.
Except as set forth on Schedule 3.14, the Company’s Tax matters are described below:

 

(a) The Company has timely
filed all Tax Returns required to be filed. All such Tax Returns are true, correct and complete in all respects. The Company has
paid in full on a timely basis all Taxes owed by it, whether or not shown on any Tax Return, except where the failure to file such
return or pay such taxes would not have a Material Adverse Effect. No claim has ever been made by an authority in a jurisdiction
where the Company does not file Tax Returns that the Company is subject to taxation in that jurisdiction.

 

(b) There are no ongoing
examinations or claims against the Company for Taxes, and no notice of any audit, examination or claim for Taxes, whether pending
or threatened, has been received. The Company has not waived or extended the statute of limitations with respect to the collection
or assessment of any Tax.

 

(c) From its date of formation
or incorporation, the Company has operated pursuant to a taxable year end of December 31 and has utilized the accrual method of
accounting for income Tax purposes.

 

(d) The Company has withheld
and paid all Taxes required to have been withheld and paid, and have complied with all information reporting and backup withholding
requirements, including record maintenance requirements, in connection with amounts paid to any employee, independent contractor,
creditor, or third party.

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(e) Copies of (i) any Tax
examinations, (ii) extensions of statutory limitations for the collection or assessment of Taxes, and (iii) the Tax Returns of
the Company for the last two (2) fiscal years have been made available to Buyer.

 

(f) There are no Liens
on the Assets relating to or attributable to Taxes. There is no basis for the assertion of any claim relating to or attributable
to Taxes, except for taxes not yet due, which, if adversely determined, would result in a Lien on the Assets of the Company or
otherwise have a material adverse effect on the Business and/or the Company.

 

(g) The Company has not
filed a consent under Section 341(f) of the Code. The Company is not and has not been a United States real property holding company
within the meaning of Section 897(c) of the Code during the period specified in Section 897(c)(1)(A)(I) of the Code.

 

(h) The Company has not
been at any time, a party to a tax sharing, tax indemnity or tax allocation agreement, and the Company has not assumed by contract
the tax liability of any other person.

 

3.15 Legal Proceedings
and Compliance with Law.

 

(a) Except as set forth
on Schedule 3.15: (i) there is no Litigation that is pending or threatened against each of the Sellers and/or the Company, (ii)
no Default exists under any Laws or Environmental Laws, and (iii) the Sellers and the Company has not received any notices from
any governmental entity alleging any Defaults under any Laws or Environmental Laws, and the Sellers and the Company are not in
Default of any Court Order.

 

(b) Without limiting the
generality of Article 3.15(a), to each Sellers’s knowledge, there is not any Environmental Condition (i) at the premises
at which the Business has been conducted by the Company, (ii) at any property owned, leased, occupied or operated at any time by
the Company, or (iii) at any property at which wastes have been deposited or disposed of by or at the behest or direction of the
Company, nor has the Company received written notice of any such Environmental Condition. “Environmental Condition”
means any condition or circumstance, including the presence of Hazardous Substances, whether created by the Company or a third
party, at or relating to any such property or premises specified in any of clauses (i) through (iii) above that did, does or may
reasonably be expected to give rise to any civil or criminal liability on the part of the Company under an Environmental Law.

 

(c) The Company has delivered
to Buyer complete copies of any written reports, studies or assessments in the possession or custody of the Company or any Sellers
that relate to any Environmental Condition and Schedule 3.15 lists all other reports, studies and assessments concerning the environment.

 

(d) Except as set forth
on Schedule 3.15, or as otherwise would not be expected to have a Material Adverse Effect, (i) the Company has obtained and is
in substantial compliance with all material Governmental Permits that are required in the operation of the Business as currently
operated or that relate to the Real Property, (ii) all of such Governmental Permits are currently valid and in full force, and
(iii) the Company has timely filed such renewal applications as may be required with respect to its Governmental Permits. No revocation,
cancellation or withdrawal of any Governmental Permit has been threatened.

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3.16 Contracts.

 

(a) Schedule 3.16 lists
all Contracts of the following types to which the Company is a party or by which it is bound, except for Minor Contracts:

 

(i) Any contract with any
present or former Seller, director, officer, employee, partner or consultant of the Company or any Affiliate thereof;

 

(ii) Any contract for the
future purchase of, or payment for, supplies or products, or for the lease of any real or personal property or for the performance
of services by a third party that involves an amount in excess of $10,000;

 

(iii) Any contract to sell
or supply products or to perform services that involves an amount in excess of $10,000;

 

(iv) Any contract to lease
to or to operate for any other party any real or personal property that involves an amount in excess of $10,000;

 

(v) Any notes, debentures,
bonds, conditional sale agreements, equipment trust agreements, letter of credit agreements, reimbursement agreements, loan agreements
or other Contracts for the borrowing or lending of money (including loans to or from officers, directors, partners, Sellers or
Affiliates of the Company or any members of their immediate families), agreements or arrangements for a line of credit or for a
guarantee of, or other undertaking in connection with, the indebtedness of any other Person;

 

(vi) Any Contracts under which any Encumbrances
exist; and

 

(vii) Any other Contracts
(other than Minor Contracts and those described in any of (i) through (vi) above) not made in the ordinary course of business.

 

(b) The Contracts listed
in Schedule 3.16 and the Minor Contracts excluded from Schedule 3.16 based on the term or amount thereof are referred to herein
as the “Company Contracts.” Except as set forth on Schedule 3.16, the Company is not in Default under any Company Contracts
(including any Real Estate Leases and Personal Property Leases) that would have a Material Adverse Effect. The Company has not
received any communication from, or given any communication to, any other party indicating that the Company or such other party,
as the case may be, is in Default under any Company Contract. To the Knowledge of the Sellers, (i) none of the other parties to
any such Company Contract is in Default thereunder, and (ii) each such Company Contract is enforceable against the other parties
thereto in accordance with the terms thereof.

 

3.17 Insurance.
All policies or binders of insurance held by or on behalf of the Company, specifying with respect to each policy the insurer, the
amount of the coverage, the type of insurance, the risks insured, the expiration date, the policy number, and any pending claims
thereunder have previously been delivered to Buyer by the Company and Sellers. Except as set forth on Schedule 3.17, there is no
Default with respect to any such policy or binder, nor has there been any failure to give any notice or present any claim under
any such policy or binder in a timely fashion or in the manner or detail required by the policy or binder. The Company and Sellers
have not received any notice of nonrenewal or cancellation with respect to, or disallowance of any claim under, any such policy
or binder.

    	12

    	 

    
 

 

3.18 Intellectual
Property.

 

(a) Intellectual Property.
The Company [and the Sellers] have good and valid title to and ownership of all Intellectual Property necessary for the Company’s
Business and operations (as now conducted and as proposed to be conducted). A list of all Intellectual Property owned by the Company
is set forth on Schedule 3.18. There are no outstanding options, licenses or agreements of any kind to which the Company is a party
or by which it is bound relating to any Intellectual Property, whether owned by the Company, or another person, except as disclosed
on Schedule 3.18. The Business of the Company as formerly and presently conducted did not and does not conflict with or infringe
upon any Intellectual Property right, owned or claimed by another.

 

(b) Contracts. Schedule
3.18 lists all Contracts relating to Intellectual Property to which the Company is a party or by which the Company is bound, except
for any license implied by the sale of a product and perpetual, paid-up licenses for commonly available software programs having
a value of less than $5,000 under which any Company is a licensee and lists the royalties paid or received by the Company. There
are no outstanding and no threatened disputes or disagreements with respect to any such agreement.

 

(c) Know-How Necessary
for the Business. The Intellectual Property included in the Assets and the Equipment constitutes all of the Intellectual Property
that is necessary for the operation of the Business as it is currently conducted. Except as described on Schedule 3.18, the Company
is the owner of all right, title and interest in and to each item of Intellectual Property, free and clear of any Encumbrances,
and have the right to use without payment to a third party all of the Intellectual Property.

 

3.19 Employees.
 The Company is not (a) a party to, involved in or threatened by, any labor dispute or unfair labor practice charge, or (b)
currently negotiating any collective bargaining agreement. The Company has not experienced during the last three years any work
stoppage. Sellers have delivered to Buyer a complete and correct list of the names and salaries, bonus and other cash compensation
of all employees (including officers) of the Company. Schedule 3.19 lists the directors and officers of the Company.

 

3.20 ERISA.

 

(a) Schedule 3.20 contains
a complete list of all Benefit Plans sponsored or maintained by the Company or under which the Company is obligated. Sellers have
delivered to Buyer (i) accurate and complete copies of all such Benefit Plan documents and all other material documents relating
thereto, including (if applicable) all summary plan descriptions, summary annual reports and insurance contracts, (ii) accurate
and complete detailed summaries of all unwritten Benefit Plans, (iii) accurate and complete copies of the most recent financial
statements and actuarial reports with respect to all such Benefit Plans for which financial statements or actuarial reports are
required or have been prepared, and (iv) accurate and complete copies of all required annual reports for all such Benefit Plans
prepared within the last three years. Schedule 3.20 denotes which such benefit Plans provide benefits that are funded through an
insurance policy by placing the word “insured” next to such Benefit Plan.

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(b) All such Benefit Plans
conform (and at all times have conformed) in all material respects to, and are being administered and operated (and have at all
times been administered and operated) in material compliance with, the requirements of ERISA, the Code and all other applicable
Laws. All returns, reports and disclosure statements required to be made under ERISA and the Code with respect to all such Benefit
Plans have been timely filed or delivered. There have not been any “prohibited transactions,” as such term is defined
in Section 4975 of the Code or Section 406 of ERISA involving any of the Benefit Plans, that would subject and Seller or the Company
to any material penalty or tax imposed under the Code or ERISA.

 

(c) Except as is set forth
in Schedule 3.20, any such Benefit Plan that is intended to be qualified under Section 401(a) of the Code and exempt from tax under
Section 501(a) of the Code has been determined by the Internal Revenue Service to be so qualified or an application for such determination
is pending. Any such determination that has been obtained remains in effect and has not been revoked, and with respect to any application
that is pending, the Company does not have any reason to suspect that such application for determination will be denied. Nothing
has occurred since the date of any such determination that is reasonably likely to affect adversely such qualification or exemption,
or result in the imposition of excise taxes on the Company or income taxes on unrelated business income under the Code or ERISA
with respect to any such Benefit Plan.

 

(d) The Company does not
sponsor a defined benefit plan subject to Title IV of ERISA, nor do they have a current or contingent obligation to contribute
to any multi-employer plan (as defined in Section 3(37) of ERISA). The Company does not have any liability with respect to any
employee benefit plan (as defined in Section 3(3) of ERISA) other than with respect to such Benefit Plans.

 

(e) There are no pending
or any threatened claims by or on behalf of any such Benefit Plans, or by or on behalf of any individual participants or beneficiaries
of any such Benefit Plans, alleging any breach of fiduciary duty on the part of the Company or any of their officers, directors
or employees under ERISA or any other applicable regulations, or claiming benefit payments (other than those made in the ordinary
operation of such plans), nor is there any basis for such claim. The Benefit Plans are not the subject of any pending any threatened
investigation or audit by the Internal Revenue Service or the Department of Labor.

 

(f) Except as is set forth
in Schedule 3.20, the Company does not have any Benefit Plans.

 

(g) With respect to any
such Benefit Plan that is an employee welfare benefit plan (within the meaning of Section 3(1) of ERISA) (a “Welfare Plan”)
and except as specified in Schedule 3.20, (i) each Welfare Plan for which contributions are claimed by the Company as deductions
under any provision of the Code complies with all applicable requirements pertaining to such deduction, (ii) with respect to any
welfare benefit fund (within the meaning of Section 419 of the Code) related to a Welfare Plan, there is no disqualified benefit
(within the meaning of Section 4976(b) of the Code) that would result in the imposition of a tax under Section 4976(a) of the Code,
(iii) any Benefit Plan that is a group health plan (within the meaning of Section 4980B(g)(2) of the Code) complies, and in each
and every case has complied, with all of the applicable requirements of Section 4980B of the Code, ERISA, Title XXII of the Public
Health Service Act and the Social Security Act, and (iv) all Welfare Plans may be amended or terminated at any time on or the Closing
Date. Except as specified in Schedule 3.20, no Benefit Plan provides any health, life or other welfare coverage to employees of
the Company beyond termination of their employment with the Company by reason of retirement or otherwise, other than coverage as
may be required under Section 4980B of the Code or Part 6 of ERISA, or under the continuation of coverage provisions of the laws
of any state or locality.

    	14

    	 

    
 

3.21 Corporate Records.
The minute books of the Company contain complete, correct and current copies of its Charter Documents and bylaws and of all minutes
of meetings, resolutions and other proceedings of their Board of Directors, shareholders, officers, managers and/or members, as
applicable. The record books of the Company are complete, correct and current.

 

3.22 Absence of Certain
Changes. Except as contemplated by this Agreement, the Company has conducted the Business in the ordinary course since
inception. Since the Financial Statement Date, except as set forth on Schedule 3.22, there has not been:

 

(a) any change that has
had or is reasonably likely to have a Material Adverse Effect;

 

(b) any declaration or
payment of any dividend or purchase or redemption of shares;

 

(c) any increase in the
compensation payable or to become payable to any director, officer, employee or agent, except for increases for non-officer employees
made in the ordinary course of business, nor any other change in any employment or consulting arrangement except in the ordinary
course of business;

 

(d) any sale, assignment
or transfer of Assets, or any additions to or transactions involving any Assets, other than those made in the ordinary course of
business;

 

(e) other than in the ordinary
course of business, any waiver or release of any claim or right or cancellation of any debt held;

 

(f) any material decrease
in the Company working capital;

 

(g) other than in the ordinary
course of business, any incurrence of indebtedness for borrowed money or issuance of any debt securities; or

 

(h) any payments to any
Affiliate of the Company.

 

3.23 Customers.
The Company has used reasonable business efforts to maintain, and currently maintains, good working relationships with all of its
customers except where the failure to have such a relationship would not have a Material Adverse Effect on the Business. Schedule
3.23 contains a list of the names of customers of the Company. As of the date hereof, no more than two (2%) of such customers have
given the Company written notice terminating, canceling or threatening to terminate or cancel any Contract or relationship with
the Company or its Affiliates.

    	15

    	 

    
 

3.24 Previous Sales;
Warranties. The Company has not breached any express or implied warranties in connection with the sale or distribution
of goods or the performance of services, except for breaches that, individually and in the aggregate, are not material and are
consistent with the past practices of the Business.

 

3.25 Finder’s
Fees. No Person has been retained by the Sellers that will be entitled to any commission or finders or similar fee in connection
with the Transaction.

 

3.26 Accuracy of
Information. No representation or warranty by the Company or any Seller in any Transaction Document, and no information
contained therein contains any untrue statement of a material fact or omits to state any material fact necessary in order to make
the statements contained herein or therein not misleading in light of the circumstances under which such statements were made.

 

3.27 Additional Information.
Schedule 3.27 accurately lists the following:

 

(a) the names and addresses
of every bank or other financial institution in which the Company maintains an account (whether checking, saving or otherwise),
or lock box or safe deposit box, and the account numbers and names of Persons having signing authority or other access thereto;
and

 

(b) all names under which
the Company has conducted the Business or which it has otherwise used at any time during the past five years.

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF BUYER

 

Buyer hereby represents and warrants to Sellers
as follows:

 

4.1 Organizational
Status. Buyer is a corporation duly organized, validly existing and in good standing under the Laws of the State of Texas
and is qualified to do business in any jurisdiction where it is required to be so qualified. The Charter Documents of Buyer that
have been delivered to Sellers as of the date hereof are effective under applicable Laws and are current, correct and complete.

 

4.2 Authorization.
Buyer has the requisite power and authority to own its assets and to carry on its business. Buyer has the requisite power and authority
to execute and deliver the Transaction Documents to which it is a party and to perform the Transactions performed or to be performed
by it. Such execution, delivery and performance by Buyer have been duly authorized by all necessary corporate action. Each Transaction
Document has been duly executed and delivered by Buyer and constitutes a valid and binding obligation of Buyer, enforceable against
Buyer in accordance with its terms.

    	16

    	 

    
 

4.3 Consents and
Approvals. Except as set forth in Schedule 4.3 hereof, neither the execution and delivery by Buyer of the Transaction Documents
to which it is a party, nor the performance of the Transactions performed or to be performed by Buyer, require any filing, consent
or approval, constitute a Default or cause any payment obligation to arise under (a) any Law or Court Order to which Buyer is subject,
(b) the Charter Documents or bylaws of Buyer or (c) any Contract, Governmental Permit or other document to which Buyer is a party
or by which the properties or other assets of Buyer may be subject.

 

4.4 No Proceedings.
No suit, action or other proceeding is pending or, to Buyer’s knowledge, threatened before any Governmental Authority seeking
to restrain Buyer or prohibit Buyer’s entry into this Agreement or prohibit the Closing, or seeking damages against Buyer
or its properties as a result of the consummation of this Agreement.

 

4.5 Finder’s
Fee. No Person has been retained by Buyer that will be entitled to any commission or finder’s or similar fee in connection
with the Transactions.

 

4.6 Accuracy of Information.
To Buyer’s Knowledge, no representation or warranty by Buyer in any Transaction Document, and no information contained therein
or otherwise delivered by or on behalf of Buyer to any other party in connection with the Transactions contains any untrue statement
of a material fact or omits to state any material fact necessary in order to make the statements contained herein or therein not
misleading in light of the circumstances under which such statements were made.

 

 

ARTICLE V

Covenants
of Sellers and the Company

 

5.1 Conduct of the
Business. Except as contemplated or otherwise consented to by Buyer in writing, after the date of this Agreement, the Company
shall carry on the Business in the ordinary course. In furtherance of and in addition to such restriction, (a) the Company shall
not amend its Charter Documents or bylaws; merge or consolidate with, or purchase substantially all of the assets of, or otherwise
acquire any business of, any corporation, partnership or other business organization or business division thereof; split, combine
or reclassify its outstanding membership interests; enter into any Contract or otherwise incur any Liability outside the ordinary
course of business; discharge or satisfy any Encumbrance or pay or satisfy any material Liability except pursuant to the terms
thereof; compromise, settle or otherwise adjust any material claim or litigation; make any capital expenditure involving in any
individual case more than $10,000; incur any indebtedness for borrowed money or issue any debt securities; declare or pay any dividend
or other distribution on its capital stock; materially decrease its working capital; increase the salaries or other compensation
payable to any employee, or take any action, or fail to take any reasonable action within its control, as a result of which any
of the changes or events listed in Article 3.22 would be likely to occur, and (b) the Company shall maintain and service the Assets
consistent with past custom and practice and preserve intact the current business organization of the Company.

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5.2 Access to Information.
From the date of this Agreement to the Closing, [and at all times after the Closing], the Sellers shall cause the Company to give
to Buyer and its officers, employees, counsel, accountants and other representatives access to and the right to inspect, during
normal business hours, all of the assets, records, contracts and other documents relating to the Company as the Buyer, its managers,
attorneys and advisers may reasonably request so long as such access does not interfere with the normal business operations of
the Company. Buyer shall not use such information for purposes other than in connection with the transactions contemplated by this
Agreement and shall otherwise hold such information in confidence until such time as such information otherwise becomes publicly
available and will sign such standard and customary non-disclosure agreements as are reasonably requested by the Company.

 

5.3 No Solicitation.
From and after the date hereof until the date of termination of this Agreement without the prior written consent of Buyer, each
Seller and the Company will not, and will not authorize or permit any Seller Representative to, directly or indirectly, solicit,
initiate or encourage (including by way of furnishing information) or take any other action to facilitate knowingly any inquiries
or the making of any proposal that constitutes or may reasonably be expected to lead to an Acquisition Proposal from any Person,
or engage in any discussion or negotiations relating thereto or accept any Acquisition Proposal. The Company or any Seller that
receives any such inquiries, offers or proposals shall (a) notify Buyer orally and in writing of any such inquiries, offers or
proposals (including the terms and conditions of any such proposal and the identity of the person making it), within 48 hours of
the receipt thereof, (b) keep Buyer informed of the status and details of any such inquiry, offer or proposal, and (c) give Buyer
five days' advance notice of any agreement to be entered into with, or any information to be supplied to, any Person making such
inquiry, offer or proposal. As used herein, "Acquisition Proposal" means a proposal or offer (other than pursuant to
this Agreement) for a tender or exchange offer, merger, consolidation or other business combination involving any or any proposal
to acquire in any manner a substantial equity interest in, or all or substantially all of the Assets.

  

5.4 Existing Employment
Agreements and Other Liabilities. Each Seller, effective as of the Closing, hereby consents to the cancellation of any
Contract that the Sellers have with the Company, including any employment agreement, and also releases and discharges the Company
and the Buyer from any and all Liabilities other than (a) those arising out of this Agreement or any other Transaction Documents
and (b) those related to wages or expenses due to the Sellers in the ordinary course.

 

5.5 Expenses.
Each party to this Agreement shall pay all of its legal, accounting and other expenses incurred in connection with the Transactions.

 

5.6 Confidentiality.

 

(a) Each Seller recognizes
and acknowledges that by reason of his/her involvement with or employment in the Business [or Company], he/she has or may have
had access to Trade Secrets relating to the Business [or Company]. Each Seller acknowledges that such Trade Secrets are a valuable
and unique asset and covenants that he/she will not disclose any such Trade Secrets to any Person for any reason whatsoever, unless
such information (a) is in the public domain through no wrongful act of such Seller, (b) has been rightfully received from a third
party without restriction and without breach of this Agreement, or (c) except as may be required by law.

    	18

    	 

    
 

(b) The terms of this Article
5.6 shall apply to each Seller, and to any other Person controlled by any Seller, and any of their respective Affiliates that it/he
controls to the same extent as if they were parties hereto, and each such Seller shall take whatever actions may be necessary to
cause any such party or Affiliate to adhere to the terms of this Article 5.6.

 

(c) In the event of any
breach or threatened breach by any party of any provision of Article 5.6, Buyer shall be entitled to injunctive or other equitable
relief, restraining such party from using or disclosing any Trade Secrets in whole or in part, or from engaging in conduct that
would constitute a breach of the obligations of a party under Article 5.7. Such relief shall be in addition to and not in lieu
of any other remedies that may be available, including an action for the recovery of Damages, all of which may be sought only in
accordance with the arbitration provisions of this Agreement.

 

5.7 Non-Compete.

 

(a) Unless the context
or subject matter otherwise requires, the following terms shall have the following meanings:

 

(i) “Restricted Business”
means the business of the refurbishment of strontium/rubidium82 and other generators, recycling strontium-82 and other radioisotopes
from generators, sales of any processed strontium-82 and other radioisotopes, providing expertise in production of radioisotopes
and radioisotopes services.

 

(ii) “Restricted Period”
means from the date of this Agreement until one (1) year years from the later of (a) the Closing and (b) Jason’s termination
and/or resignation as an officer, director, employee and/or member of the Company.

 

(b) Undertakings.
Each Seller hereby undertakes to Buyer that he will not, either alone or jointly with others, whether as principal, agent, manager,
equity holder or in any other capacity, directly or indirectly through any other entity or person, for its own benefit or that
of others:

 

(i) At any time during the
Restricted Period engage in or carry on any Restricted Business in competition with Buyer;

 

(ii) At any time during the
Restricted Period knowingly assist any competitor of the Buyer to a material extent with the primary purpose of carrying on or
developing any Restricted Business; and

 

(iii) At any time during
the Restricted Period provide any financial assistance to any person for the primary purpose of assisting such person to carry
on or develop a Restricted Business in competition with Buyer.

 

Each of the covenants contained
in this Article 5.7 is entirely separate and severable and enforceable accordingly. The Sellers hereby agree that each of such
covenants is fair and reasonable in all circumstances. In the event that any such restriction shall be found to be void and/or
ineffective, but would be valid and effective if some part thereof were deleted or the duration or area of application reduced,
such restriction shall apply with such modification, as may be necessary to make it valid and effective.

    	19

    	 

    
 

Notwithstanding the foregoing,
nothing set forth in this Article 5.7 shall prohibit or in any way limit or restrict either Seller from participating in or funding
any activity or business in which he participates as [an owner], director, officer, Seller or employee as of the date of this Agreement.

 

Notwithstanding the foregoing,
nothing set forth in this Article 5.7 shall prohibit Sellers from owning not more than one percent (1%) in the aggregate of any
class of membership interests, equity or shares of any corporation other than Buyer, if such stock is publicly traded and listed
on any national or regional stock exchange or on the NASDAQ national market.

 

Notwithstanding the foregoing,
in the event this Agreement is terminated in accordance with Article 11.2, this Article 5.7 shall not apply and is therefore null
and void.

 

5.8 Membership Purchase,
Jason Employment Agreement, Employee Agreement and Other Agreements. Sellers shall deliver at the Closing, the (i) certificates
referenced in 9.3, (ii) Agreement, (iii) the employment agreement, a copy of which is attached hereto as Exhibit A, by and between
Positron Pharmaceutical Company and Jason, effective as of the Closing Date, which has been executed by Jason, (iv) employment
agreements, a copy of which is attached hereto as Exhibit B by and between Buyer and the existing employees of the Company effective
as of the Closing Date, which has been executed by the current employees; and (v) other documents required in accordance with Section
2.4 and other applicable sections of this Agreement, which have been executed by Sellers and authorized officers of the Company.

 

5.9 Los Alamos National
Bank Obligations. 

 

(a) Prior to and following
the Closing, Buyer shall use its best efforts to obtain evidence the release of the guarantee obligations owed by Jason Kitten
and Suzanne Kitten (collectively, the “Guarantors”) of the Company’s indebtedness to Los Alamos National Bank
(the “Bank”) and that the Buyer, if necessary, will use its best efforts to provide replacement collateral to the Bank
to obtain such release.

 

(b) Following the Closing,
the Buyer will assume the obligations owed by the Company to the Bank.

 

(c) Following the Closing,
the Buyer agrees to indemnify and hold the Guarantors harmless from any and all loss, cost, damage or expense, including, without
limitation, attorneys’ fees, incurred by the Guarantors solely arising from their guarantee of the Company’s obligations
to the Bank.

    	20

    	 

    

 

 

ARTICLE VI

COVENANTS OF BUYER

 

6.1 Membership Purchase,
Jason Employment Agreement, Employee Agreement and Other Agreements. Buyer shall deliver at the Closing, the (i) certificates
referenced in 8.3, (ii) Agreement, (iii) the employment agreement, a copy of which is attached hereto as Exhibit A, by and between
the Positron Pharmaceutical Company and Jason, effective as of the Closing Date, which has been executed by Buyer, (iv) employment
agreements, a copy of which is attached hereto as Exhibit B by and between Buyer and existing employees of the Company, effective
as of the Closing Date, which has been executed by Buyer and (v) other documents required in accordance with Section 2.4 and other
applicable sections of this Agreement, which have been executed by an authorized officer of the Buyer.

 

 

ARTICLE
VII

Mutual
Covenants

 

7.1 Fulfillment of
Closing Conditions. At and prior to the Closing, the parties shall use commercially reasonable efforts to fulfill the conditions
specified in Article VIII and Article IX, Section 2.4 and other applicable sections of this Agreement,. In connection with the
foregoing, each such party will (a) refrain from any actions that would cause any of its representations and warranties to be inaccurate
in any material respect as of the Closing, (b) execute and deliver the applicable agreements and other documents referred to in
Articles VIII and IX (or elsewhere in this Agreement), (c) comply in all material respects with all applicable Laws in connection
with its execution, delivery and performance of this Agreement and the Transactions, (d) use commercially reasonable efforts to
obtain in a timely manner all necessary waivers, consents and approvals required under any Laws, Contracts or otherwise, and (e)
use commercially reasonable efforts to take, or cause to be taken, all other actions and to do, or cause to be done, all other
things reasonably necessary, proper or advisable to consummate and make effective as promptly as practicable the Transactions.

 

7.2 Disclosure of
Certain Matters. Each Seller will give to Buyer and Buyer will give to each of the Sellers prompt notice of any event or
development that occurs that (a) had it existed or been known on the date hereof would have been required to be disclosed by such
party under this Agreement, (b) would cause any of the representations and warranties of such party contained herein to be inaccurate
or otherwise misleading, except as contemplated by the terms hereof, or (c) gives any such party any reason to believe that any
of the conditions set forth in Articles VIII and IX will not be satisfied prior to the Termination Date (defined below).

 

7.3 Public Announcements.
Sellers and Buyer shall consult with each other before issuing any press release or making any public statement with respect to
this Agreement and the Transactions and, except as may be required by applicable federal or state securities laws, none of such
Parties nor any other parties shall issue any such press release or make any such public statement without the consent of each
of the other parties hereto.

 

7.4 Confidentiality.
If the Transactions are not consummated, each party shall treat all information obtained in its investigation of any other party
or any Affiliate thereof, and not otherwise known to them or already in the public domain, as confidential and shall not use or
otherwise disclose such information to any third party and shall return to such other party or Affiliate all copies made by it
or its representatives of Confidential Information provided by such other party or Affiliate.

 

    	21

    	 

    

 

 

ARTICLE VIII

CONDITIONS PRECEDENT TO OBLIGATIONS OF THE
SELLERS

 

 

The obligations of the
Sellers to consummate the Transactions are subject to the satisfaction prior thereto, of each of the following conditions:

 

8.1 Representations
and Warranties. The representations and warranties of Buyer contained in this Agreement shall be true and correct in all
material respects on the date hereof and (except to the extent such representations and warranties are expressly limited to an
earlier date) shall also be true and correct on and as of the Closing Date with the same force and effect as if made on and as
of the Closing Date.

 

8.2 Agreements, Conditions
and Covenants. Buyer shall have performed or complied with all agreements, conditions and covenants required by this Agreement
to be performed or complied with by it on or before the Closing.

 

8.3 Certificates.
Sellers shall have received a certificate executed by an executive officer of Buyer, dated the Closing Date, to the effect that
the conditions specified in Articles 8.1 and 8.2 have been satisfied, and shall have received any other certificates reasonably
requested by Sellers’s counsel.

 

8.4 Legality.
No Law or Court Order shall have been enacted, entered, promulgated or enforced by any court or governmental authority that is
in effect and has the effect of making the purchase and sale of the Assets illegal or otherwise prohibiting the consummation of
such purchase and sale.

 

8.5 Appointment of
Member to Buyer’s Advisory Board. At the Closing, Buyer shall appoint Jason Kitten to serve as member of the board
of directors of Buyer. (“Buyer Board Member”). Buyer Board Member shall serve for an initial period of two (3) years,
unless removed or resigned pursuant to the Buyer’s By-laws, and shall be re-elected year to year after the initial period.

 

8.6 Other Items.

 

(a)                
Complete and satisfactory due diligence review of the Buyer by the Sellers;

 

(b)                
Approval of the Transaction by the Board of Directors of the Buyer; 

 

(c)                
Assumption of the Assumed Liabilities described in Section 2.2; 

 

    	22

    	 

    

 

(d)                
There shall have been no material adverse changes in the Buyer, financial or otherwise;

 

(e)                
Any necessary third-party consents shall be obtained prior to Closing, including but not limited
to consents necessary from the Buyer’s lenders, creditors; vendors, and lessors.

 

 

ARTICLE
IX

Conditions
Precedent to Obligations of Buyer

 

All obligations of Buyer
to consummate the Transactions are subject to the satisfaction (or waiver) prior thereto of each of the following conditions:

 

9.1 Representations
and Warranties. The representations and warranties of Sellers contained in this Agreement shall be true and correct in
all material respects on the date hereof and (except to the extent such representations and warranties are expressly limited to
an earlier date) shall also be true and correct on and as of the Closing Date, with the same force and effect as if made on and
as of the Closing Date.

 

9.2 Agreements, Conditions
and Covenants. Sellers shall have performed or complied in all material respects with all agreements, conditions and covenants
required by this Agreement to be performed or complied with by them on or before the Closing.

 

9.3 Certificates.
Buyer shall have received a certificate executed by an executive officer of the Company and each Sellers, dated the Closing Date,
to the effect that the conditions specified in Articles 9.1 and 9.2 have been satisfied, and shall have received any other certificates
reasonably requested by Buyer’s counsel.

 

9.4 Legality.
No Law or Court Order shall have been enacted, entered, promulgated or enforced by any court or governmental authority that is
in effect and (a) has the effect of making the purchase and sale of the Assets illegal or otherwise prohibiting the consummation
of such purchase and sale or (b) has a reasonable likelihood of causing a Material Adverse Effect.

 

9.5 Exhibits.
The parties hereto expressly agree that, in the event that all of the exhibits to this Agreement have not been finalized at the
time that this Agreement is executed, Buyer and Sellers shall use their best efforts to negotiate in good faith the terms and conditions
of such exhibits and shall endeavor in good faith to provide any such exhibits as soon as possible.

 

9.6 Other Items.

 

(a)                
Complete and satisfactory due diligence review of the Company by the Buyers;

 

(b)                
Approval of the Transaction by the Company’s Board of Directors and Managers;

 

(c)                
The delivery by the Company of financial statements, in GAAP format for the year ended December
31, 2010, and any subsequent interim periods thereafter;

 

    	23

    	 

    

(d)                
Except as set forth in the Transaction Documents, there shall be no Membership Interest Equivalents
outstanding as of immediately prior to the Closing except those set forth within the Transaction Documents. For purposes of the
foregoing, “Membership Interest Equivalents” shall mean any subscriptions, warrants, options or other rights or commitments
of any character to subscribe for or purchase from the Company, or obligating the Company to issue, any shares of any class of
the capital stock of the Company or any securities convertible into or exchangeable for such shares; and

 

(e)                
Any necessary third-party consents shall be obtained prior to Closing, including but not limited
to consents necessary from the Buyer’s lenders, creditors; vendors, and lessors.

 

 

ARTICLE X

INDEMNIFICATION

 

10.1 By Sellers.
From and after the Closing Date, the Sellers, jointly and severally, shall indemnify and hold harmless Buyer and its successors
and assigns, and their respective officers, directors, employees, Sellers, agents, Affiliates and any Person who controls any of
such Persons within the meaning of the Securities Act or the Exchange Act (each, a “Buyer Indemnified Party”) from
and against any liabilities, claims, demands, judgments, losses, costs, damages or expenses whatsoever (including reasonable attorneys’,
consultants’ and other professional fees and reasonable disbursements of every kind, nature and description incurred by such
Indemnified Party in connection therewith) (collectively, “Damages”) that such Buyer Indemnified Party may sustain,
suffer or incur and that result from, arise out of or relate to (a) any breach of any of the respective representations, warranties,
covenants or agreements of any Seller contained in this Agreement or in the Closing Certificates, (b) any Liability of any Seller
involving Taxes due and payable by, or imposed on the Company with respect to any Seller for any and all taxable periods ending
on or prior to the Closing (whether or not such Taxes have been due and payable), and (c) any Liability of the Company, the Business,
Sellers for any and all periods ending on or prior to the Closing except as disclosed in this Agreement, the Financial Statements
or other Schedule hereto (collectively, “Buyer Indemnifiable Damages”).

 

10.2 By Buyer.
From and after the Closing Date, Buyer shall, or in connection with Section 10.2 (c) shall cause the Company to indemnify and hold
harmless each Seller and its/his respective heirs, legal representatives, successors and assigns, and (if any) their respective
officers, directors, employees, agents, Affiliates and any person who controls such Persons with the meaning of the Exchange Act
(each a “Sellers Indemnified Party”) from and against any Damages that such Sellers Indemnified Party may sustain,
suffer or incur and that result from, arise out of or relate to: (a) any breach of any of the respective representations, warranties,
covenants or agreements of Buyer contained in this Agreement; (b) the nonfulfillment of any covenant, undertaking, agreement or
other obligation of Buyer under this Agreement and (c) Sellers’ capacities as directors and officers of the Company in respect
to any acts or omissions occurring at or prior to the Closing Date, to the fullest extent allowed by applicable law.

    	24

    	 

    
 

10.3 Procedure for Claims.

 

(a) Any Person that desires
to seek indemnification under any part of this Article X (each, an “Indemnified Party”) shall give notice (a “Claim
Notice”) to each party responsible or alleged to be responsible for indemnification hereunder (an “Indemnitor”)
prior to any applicable Expiration Date specified below. Such notice shall explain with specificity the nature of the claim, the
specific Article and section of this Agreement to which the claim relates and the parties known to be involved, and shall specify
the amount of the estimated damages relating thereto. If the matter to which a claim relates shall not have been resolved as of
the date of the Claim Notice, the Indemnified Party shall estimate the amount of the claim in the Claim Notice, but shall also
specify therein that the claim has not yet been liquidated (an “Unliquidated Claim”). If an Indemnified Party gives
a Claim Notice for an Unliquidated Claim, the Indemnified Party shall also give a second Claim Notice (the “Liquidated Claim
Notice”) within 60 days after the matter giving rise to the claim becomes finally resolved, and the Second Claim Notice shall
specify the amount of the claim. Each Indemnitor to which a Claim Notice is given shall respond to any Indemnified Party that has
given a Claim Notice (a “Claim Response”) within 60 days (the “Response Period”) after the later of (i)
the date that the Claim Notice is given or (ii) if a Claim Notice is first given with respect to an Unliquidated Claim, the date
on which the Liquidated Claim Notice is given. Any Claim Notice or Claim Response shall be given in accordance with the notice
requirements hereunder, and any Claim Response shall specify whether or not the Indemnitor giving the Claim Response disputes the
claim described in the Claim Notice. If any Indemnitor fails to give a Claim Response within the Response Period, such Indemnitor
shall be deemed not to dispute the claim described in the related Claim Notice. If any Indemnitor elects not to dispute a claim
described in a Claim Notice, whether by failing to give a timely Claim Response or otherwise, then the amount of such claim shall
be conclusively deemed to be an obligation of such Indemnitor. For the purposes of the immediately preceding sentence, an Indemnitor's
failure to give a timely Claim Response shall not be deemed an election not to dispute a Claim Notice unless the Indemnified Party
shall have given a second Claim Notice after expiration of the Response Period and, another 20 days after the date on which the
Indemnified Party shall have given such second Claim Notice shall have expired without the Indemnitor's having given a Claim Response
within such period.

 

(b) If any Indemnitor shall
be obligated to indemnify an Indemnified Party hereunder, such Indemnitor shall pay to such Indemnified Party within 30 days after
the last day of the Response Period the amount to which such Indemnified Party shall be entitled. In the event of a dispute as
to the amount or manner of indemnification under this Article X, the Indemnified Party may pursue whatever legal remedies may be
available for recovery of the Damages claimed from any Indemnitor in accordance with the arbitration provisions of this Agreement.
If any Indemnitor fails to pay all or part of any indemnification obligation when due, then such Indemnitor Party shall also be
obligated to pay to the applicable Indemnified Party interest on the unpaid amount for each day during which the obligation remains
unpaid at an annual rate equal to the Prime Rate. The Prime Rate in effect on the first business day of each calendar quarter shall
apply to the amount of the unpaid obligation during such calendar quarter.

 

10.4 Claims Period.
Any claim for indemnification under this Article X shall be made by giving a Claim Notice under Article 10.3 on or before the second
anniversary of the Closing (the "Expiration Date"). So long as an Indemnified Party gives a Claim Notice for an Unliquidated
Claim on or before the Expiration Date, such Indemnified Party shall be entitled to pursue its rights of indemnification regardless
of the date on which such Indemnified Party gives the related Liquidated Claim Notice.

 

    	25

    	 

    

 

10.5 Third Party Claims.

 

(a) If any third party
shall notify any Indemnified Party with respect to any actions, suits or other administrative or judicial proceedings (each, an
"Action") which may give rise to a claim for indemnification against any Indemnifying Party under this Article X, then
the Indemnified Party shall promptly (and in any event within five Business Days' after receiving notice of the Action) notify
each Indemnifying Party thereof in writing.

 

(b) Any Indemnifying Party
will have the right to assume and thereafter conduct the defense of the Action with counsel of his or its choice reasonably satisfactory
to the Indemnified Party; provided, however, that the Indemnifying Party will not consent to the entry of any judgment or enter
into any settlement with respect to the Action without the prior written consent of the Indemnified Party (which consent shall
not be unreasonably withheld) unless the judgment or proposed settlement involves only the payment of money damages and does not
impose an injunction or other equitable relief upon the Indemnified Party.

 

(c) Unless and until an
Indemnifying Party assumes the defense of the Action, the Indemnified Party may defend against the Action in any manner he or it
reasonably may deem appropriate.

 

(d) In no event will the
Indemnified Party consent to the entry of any judgment or enter into any settlement with respect to any Action without the prior
written consent of each of the Indemnifying Parties (which consent shall not be unreasonably withheld).

 

10.6 Reduction for
Insurance. The amount which an Indemnifying Party is required to pay to, for, or on behalf of any Indemnified Party pursuant
to this Article X shall be reduced (including, without limitation, retroactively) by any insurance proceeds actually recovered
by or on behalf of the Indemnified Party that reduces the related indemnifiable loss (the "Indemnifiable Loss"). An amount
required to be paid, as so reduced, is hereinafter sometimes referred to as an "Indemnity Payment." If an Indemnified
Party shall have received, or if an Indemnifying Party shall have paid on its behalf, an Indemnity Payment in respect of an Indemnifiable
Loss and shall subsequently receive, directly or indirectly, insurance proceeds in respect of such Indemnifiable Loss, then such
Indemnified Party shall promptly pay to the Indemnifying Party the amount of such insurance proceeds, or, if less, the amount of
the Indemnity Payment. The parties hereto agree that the foregoing shall not affect the subrogation rights of any insurance company
making payments hereunder.

 

10.7 Exclusive
Remedy; Limitation of Liability. Buyer acknowledges and agrees that its sole and exclusive remedy with respect to any and
all claims relating to the subject matter of this Agreement shall be pursuant to the indemnification provisions set forth in this
Article 10. No Seller shall have any liability to Buyer or any Buyer indemnified person for any claim arising out of the negotiation,
execution or delivery of this Agreement, or the transactions provided for herein, whether for defense, indemnification or otherwise,
except as provided for in this Article 10. In furtherance of the foregoing, Buyer hereby waives, to the fullest extent permitted
under applicable law, any and all rights, claims and causes of action it or the Company may have against Sellers arising under
or based upon any Law or Environmental Law, or otherwise except to the extent specifically provided in this Article 10. Notwithstanding
the foregoing, nothing in this Agreement shall limit the rights of and remedies available to Buyer in the event of fraud or intentional
misconduct on the part of the Company or any Seller.

    	26

    	 

    
 

ARTICLE
XI

Termination

 

11.1 Termination
Upon Default. In the event that this Agreement is terminated prior to the Closing Date, the Parties agree that all surviving
obligations, other than those set forth in Article 5 and Sections 7.3, 7.4, Article 10, and this Section 11.2, shall be terminated,
the transactions herein shall be rescinded and the Buyer and Company shall form a joint venture for the purpose of sharing any
and all intellectual property relating to research, development, design, and manufacturing related to the Business. The Company
shall keep all portions of the Advance Consideration paid through the effective date of termination; provided however, the Buyer
shall have no further obligation to pay any advances to the Sellers or the Company.

 

11.2 Grounds for
Termination. This Agreement may be terminated at any time before the Closing:

 

(a) By mutual written consent
of Sellers and Buyer;

 

(b) By Sellers or Buyer:
if a court of competent jurisdiction or governmental, regulatory or administrative agency or commission shall have issued a Court
Order (which Court Order the parties shall use commercially reasonable efforts to lift) that permanently restrains, enjoins or
otherwise prohibits the Transactions, and such Court Order shall have become final and nonappeallable;

 

(c) By Buyer: if any Seller
[or the Company] shall have breached, or failed to comply with, any of its or his obligations under this Agreement or any representation
or warranty made by any Seller, [the Company] shall have been incorrect when made, and such breach, failure or misrepresentation
is not cured within 20 days after notice thereof; or

 

(d) By unanimous agreement
of Sellers: if Buyer shall have breached, or failed to comply with in any material respect, any of its obligations under this Agreement
or any representation or warranty made by it shall have been incorrect when made, and such breach, failure or misrepresentation
is not cured within 20 days after notice thereof.

 

 

ARTICLE XII

GENERAL MATTERS

 

12.1 Venue, Jurisdiction. The
Parties hereby waive all rights to a trial by jury. Any controversy or claim arising out of, or relating to, this Agreement, or
its breach, shall be resolved exclusively by the state or federal courts located in Houston, Texas

 

12.2 Contents of
Agreement. This Agreement, together with all Exhibits, Agreements and Schedules hereto, and the other Transaction Documents,
sets forth the entire understanding of the parties with respect to the Transactions and supersedes all prior agreements or understandings
among the parties regarding those matters.

 

    	27

    	 

    

12.3 Amendment, Parties
in Interest, Assignment. This Agreement may be amended, modified or supplemented only by a written instrument duly executed
by all of the parties hereto. If any provision of this Agreement shall for any reason be held to be invalid, illegal, or unenforceable
in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision hereof, and this Agreement
shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein. This Agreement shall
be binding upon and inure to the benefit of and be enforceable by the respective heirs, legal representatives, successors and permitted
assigns of the parties. Nothing in this Agreement shall confer any rights upon any Person other than Sellers and Buyer and their
respective heirs, legal representatives, successors and permitted assigns. No party hereto shall assign this Agreement or any right,
benefit or obligation hereunder.

 

12.4 Further Assurances.
At and after the Closing, Sellers and Buyer shall execute and deliver any and all documents and take any and all other actions
that may be deemed reasonably necessary by their respective counsel to complete the Transactions.

 

12.5 Interpretation.
Unless the context of this Agreement clearly requires otherwise, (a) references to the plural include the singular, the singular
the plural, and the part the whole, (b) references to any gender include both genders, (c) "or" has the inclusive meaning
frequently identified with the phrase "and/or," (d) "including" has the inclusive meaning frequently identified
with the phrase "but not limited to," and (e) references to "hereunder" or "herein" relate to this
Agreement. The Article and other headings contained in this Agreement are for reference purposes only and shall not control or
affect the construction of this Agreement or the interpretation thereof in any respective. Article, Section, subsection, Schedule
and Exhibit references are to this Agreement unless otherwise specified. Each accounting term used herein that is not specifically
defined herein shall have the meaning given to it under GAAP. Any reference to a party's being satisfied with any particular item
or to a party's determination of a particular item presumes that such standard will not be achieved unless such party shall be
satisfied or shall have made such determination in its sole or complete discretion.

 

12.6 Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be binding as of the date first written above,
and all of which shall constitute one and the same instrument. Each such copy shall be deemed an original.

 

12.7 Waiver.
No failure of any party hereto to require, and no delay by any such party in requiring the other to comply with any provision of
this Agreement shall constitute a waiver of the right to require such compliance. No failure of any party hereto to exercise, and
no delay by such party in exercising any right or remedy under this Agreement shall constitute a waiver of such right or remedy.
No waiver by any party of any right or remedy under this Agreement shall be effective unless made in writing. Any waiver by any
party of any right or remedy under this Agreement shall be limited to such specific instance and shall not constitute a waiver
of such right or remedy in the future.

 

    	28

    	 

    

12.8 Remedies.
The indemnification rights under Article X are independent of and in addition to such rights and remedies as the parties may have
at law or in equity or otherwise (subject to Article XII hereof) for any misrepresentation, breach of warranty or failure to fulfill
any agreement or covenant hereunder on the part of any party hereto, including the right to seek specific performance, rescission
or restitution, none of which rights or remedies shall be affected or diminished by Article X. Buyer acknowledges that Section
10 shall be the exclusive remedy of the Buyer for any breach of the representations and warranties in Section 3 above with respect
to such individuals, except for any willful misrepresentation, willful breach of warranty or willful failure to fulfill any agreement
or covenant

 

12.9 Notices.
All notices that are required or permitted hereunder shall be in writing and shall be sufficient if personally delivered or sent
by mail, Federal Express or other delivery service that confirms receipt of delivery. Any notices shall be deemed given upon the
earlier of the date when received, or the third day after the date when sent by registered or certified mail, or the day after
the date when sent by Express carrier to the address set forth below, unless such address is changed by written notice to the other
party hereto:

 

If to the Sellers:

 

Jason Kitten

4610 87 ST.

Lubbock, Texas 79824

 

If to the Company:

 

Manhattan Isotope Technology LLC

2301 C 122nd Street

Lubbock, Texas 79423

 

If to the Buyer:

 

Positron Corporation

530 Oakmont Lane

Westmont, Illinois 60559

 

 

with a required copy to:

 

Tarter, Krinsky & Drogin, LLP

1350 Broadway, 11th Floor

New York, New York 10018

 

12.10. Governing Law

 

This Agreement shall be
construed and interpreted in accordance with the laws of the State of Texas without regard to its provisions concerning conflict
of laws.

 

    	29

    	 

    

 

  

 

(The remainder of this page intentionally
left blank.)

 

 

 

 

 

 

 

 

 

    	30

    	 

    
 

 

 

IN WITNESS WHEREOF,
this MEMBERSHIP INTEREST PURCHASE AGREEMENT has been executed by the parties hereto as of the day and year first written above.

 

 

 

POSITRON CORPORATION

 

 

_____________________

Patrick G. Rooney

Chairman & CEO

 

 

MANHATTAN ISOTOPE TECHNOLOGY LLC

 

 

_____________________

Jason Kitten

Chairman & CEO

 

 

_____________________

Jason Kitten

 

 

____________________

Suzanne Kitten

 

 

    	31

    	 

    

 

SCHEDULE 2.2

 

 

None.

 

 

 

    	32

    	 

    
 

 

SCHEDULE 2.3

 

 

	
         

        Name
	
         

        Portion of Purchase Price

	 	 
	Jason Kitten	 
	Suzanne Kitten	 

 

    	33

    	 

    

 

SCHEDULE 3.3

 

    	34

    	 

    

 

SCHEDULE 3.7

 

    	35

    	 

    
 

SCHEDULE 3.8

 

    	36

    	 

    

SCHEDULE 3.9

 

    	37

    	 

    

SCHEDULE 3.10

    	38

    	 

    
 

SCHEDULE 3.11

    	39

    	 

    
 

SCHEDULE 3.13

    	40

    	 

    
 

SCHEDULE 3.14

    	41

    	 

    
 

SCHEDULE 3.15

    	42

    	 

    
 

SCHEDULE 3.16

    	43

    	 

    
 

 SCHEDULE 3.17

    	44

    	 

    

SCHEDULE 3.18

    	45

    	 

    

SCHEDULE 3.19

    	46

    	 

    

SCHEDULE 3.20

    	47

    	 

    

SCHEDULE 3.22

    	48

    	 

    

SCHEDULE 3.23

    	49

    	 

    

SCHEDULE 3.27

    	50

    	 

    

SCHEDULE 4.3

    	51Exhibit 10.5

                            SHARE EXCHANGE AGREEMENT

     THIS SHARE EXCHANGE AGREEMENT (this "Agreement"), dated as of the 18th day
of January, 2012 (this "Agreement") is entered into by and among, EARTH DRAGON
RESOURCES INC., a Nevada corporation ("Earth"), and the Owners of PROJECT X,
INC., a Nevada corporation ("Owners"). Earth and the Owners are referred to
singularly as a "Party" and collectively as the "Parties."

                                   WITNESSETH:

     WHEREAS, the Owners own all of the issued and outstanding shares of PROJECT
X, INC., a Nevada corporation ("Project X");

     WHEREAS, PJTX was formed on June 1, 2011, for the purpose of entering in to
a Joint Venture with Deep Marine Salvage Inc., a Nevis Corporation ("DMS"). The
purpose of the Joint Venture is to engage in the business of locating and
recovering valuable cargo from ships lost throughout the world's oceans. On July
20, 2011, PJTX and DMS entered into a Joint Venture Agreement (the "JV
Agreement") to set forth the terms of the parties' agreement to create and
operate such Joint Venture (the "JV"). The JV's business strategy is to
recover/salvage World War I and World War II commodity cargo shipwrecks that
have been identified by the DMS research team that contain valuable bulk high
value cargos that can be profitably recovered using proprietary recovery
equipment, techniques and procedures developed by Deep Marine Salvage.

     WHEREAS, Earth wishes to acquire all of the issued and outstanding shares
and rights to shares of all of the capital stock of Project X (referred to
hereinafter as the "Project X Shares") with the purpose of owning and operating
Project X as its wholly-owned subsidiary; and

     WHEREAS, Earth and the Owners propose to enter into this Agreement which
provides, among other things, the Owners will deliver the Project X Shares to
Earth in exchange for the issuance by Earth of a total Eight Million Five
Hundred Seventy Thousand (8,570,000) shares of Earth's common stock as set forth
in Section 2.01 of this Agreement, on the terms and conditions set forth herein
(the "Share Exchange") and such additional items as more fully described in this
Agreement.

     NOW, THEREFORE, in consideration, of the promises and of the mutual
representations, warranties and agreements set forth herein, the Parties hereto
agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

Section 1.01. Definitions. The following terms shall have the following
respective meanings:

"Affiliate"                    with respect to any Party, a Person that directly
                               or indirectly controls, is controlled by, or is
                               under common control of such Party. For the
                               purpose of this definition, "control" means (i)
                               ownership of more than fifty percent (50%) of the
                               voting shares of a Person or (ii) the right or
                               ability to direct the management or policies of a
                               Person through ownership of voting shares or
                               other securities, pursuant to a written agreement
                               or otherwise;
<PAGE>
"Business                      Day" a day (other than a Saturday) on which banks
                               in Nevada are open for business throughout their
                               normal business hours;

"Closing"                      the closing of the transactions contemplated by
                               this Agreement;

"Completion"                   completion of acquisition of the Project X Shares
                               by Earth in accordance with the terms and
                               conditions of this Agreement;

"Encumbrance"                  any mortgage, charge, pledge, lien, (otherwise
                               than arising by statute or operation of law),
                               equities, hypothecation or other encumbrance,
                               priority or security interest, preemptive right
                               deferred purchase, title retention, leasing,
                               sale-and-repurchase or sale-and-leaseback
                               arrangement whatsoever over or in any property,
                               assets or rights of whatsoever nature and
                               includes any agreement for any of the same and
                               reference to "Encumbrances" shall be construed
                               accordingly;

"Exchange Act"                 the US Securities Exchange Act of 1934;

"Person"                       any individual, firm, company, government, state
                               or agency of a state or any joint venture,
                               association or partnership (whether or not having
                               separate legal personality);

"Securities Act"               the US Securities Act of 1933;

"SEC"                          the US Securities and Exchange Commission;

"US"                           United States of America;

"United States Dollars"        United States dollars;
or "US$"

Section 1.02. Rules of Construction.

     (a) Unless the context otherwise requires, as used in this Agreement: (i)
"including" means "including, without limitation"; (ii) words in the singular
include the plural; (iii) words in the plural include the singular; (iv) words
applicable to one gender shall be construed to apply to each gender; (v) the
terms "hereof," "herein," "hereby," "hereto" and derivative or similar words
refer to this entire Agreement, including the Schedules hereto; (vi) the terms
"Article," "Section" and "Schedule" shall refer to the specified Article,
Section or Schedule of or to this Agreement and references to paragraphs shall

                                       2
<PAGE>
refer to the relevant paragraph of a specified Schedule and (vii) the term "day"
shall refer to calendar days.

     (b) Titles and headings to Articles and Sections are inserted for
convenience of reference only, and are not intended to be a part of or to affect
the meaning or interpretation of this Agreement.

                                   ARTICLE II
                               THE SHARE EXCHANGE

Section 2.01. Share Exchange.

     (a) Subject to and upon the terms and conditions of this Agreement, on the
Closing Date (as defined hereafter), Earth shall acquire all of the Project X
Shares from the Owners with all of such interests acquired being free from all
Encumbrances together with all rights now or hereafter attaching thereto.

     (b) In exchange for the delivery of the Project X Shares, Earth shall
deliver to the Owners a total of Eight Million Five Hundred Seventy Thousand
(8,570,000) restricted shares of Earth's common stock (the "Exchange Shares");
and

     (c) The Share Exchange shall take place upon the terms and conditions
provided for in this Agreement and in accordance with applicable law. If the
Closing does not occur as set forth in Section 2.02 of this Agreement due to one
Party's failure to perform, then the other Party may terminate the Agreement.

Section 2.02. Closing Location. The Closing of the Share Exchange and the other
transactions contemplated by this Agreement will occur as soon as possible (the
"Closing Date"), at the offices of W. Scott Lawler - Attorney at Law, in
Chandler, Arizona.

Section 2.03. Owner's Closing Documents. At the Closing, the Owners will tender
to Earth:

     (a) Original certificates issued in the names of the Owners representing
all of the Project X Shares duly endorsed for transfer by the Owners and marked
"cancelled for transfer" or as otherwise directed by Earth or its counsel, in
accordance with the laws of the State of Nevada;

     (b) One (1) new certificate issued by Project X in the name of Earth
representing the Project X Shares;

     (c) A certified copy of the register of shareholders of Project X showing
Earth as the registered owner of the Project X Shares;

     (d) A certificate executed by each Owner certifying that the conditions in
Section 8.01(a) have been satisfied.

                                       3
<PAGE>
Section 2.04. Earth's Closing Documents. At the Closing, Earth will tender to
the Owners:

     (a) A certified copy(ies) of resolutions of the Board of Directors of Earth
in a form satisfactory to the Owners, acting reasonably, authorizing:

          (i) the execution and delivery of this Agreement by Earth; and

          (ii) the issuance of the Exchange Shares to such entities and in such
allocations as set forth on Schedule A attached hereto;

     (b) Share certificates, registered in the name of the Owners representing
the Exchange Shares; and

     (c) A certificate executed by a duly appointed officer of Earth certifying
that the conditions in Section 9.01(a) have been satisfied.

                                   ARTICLE III
                         REPRESENTATIONS AND WARRANTIES

Section 3.01. Each Party represents and warrants to the other Party that each of
the warranties it makes is accurate in all respects and not misleading as at the
date of this Agreement.

Section 3.02. Each Party undertakes to disclose in writing to the other Party
anything which is or may constitute a breach of or be inconsistent with any of
the warranties immediately upon the same coming to its notice at the time of and
after Completion.

Section 3.03. Each Party agrees that each of the warranties it makes shall be
construed as a separate and independent warranty and (except where expressly
provided to the contrary) shall not be limited or restricted by reference to or
inference from the terms of any other warranty or any other term of this
Agreement.

Section 3.04. Each Party acknowledges that the restrictions contained in Section
11.01 (Public Notices) and Section 11.10 (Confidentiality) shall continue to
apply after the Completion under this Agreement without limit in time.

                                   ARTICLE IV
                     REPRESENTATIONS AND WARRANTIES OF EARTH

Section 4.01. Organization, Standing and Authority; Foreign Qualification. Earth
is a corporation duly organized, validly existing and in good standing under the
laws of the State of Nevada and has all requisite corporate power and authority
to own, lease and operate its properties and to conduct its business as
presently conducted and as proposed to be conducted and is duly qualified or
licensed as a foreign corporation in good standing in each jurisdiction in which
the character of its properties or the nature of its business activities require
such qualification.

                                       4
<PAGE>
Section 4.02. Corporate Authorization. The execution, delivery and performance
by Earth of this Agreement and the consummation of the transactions contemplated
hereby have been duly authorized by all necessary corporate action on the part
of Earth, and this Agreement constitutes a valid and binding agreement of Earth.
The Exchange Shares to be issued in accordance with this Agreement shall be duly
authorized and, upon such issuance, will be validly issued, fully paid and
non-assessable.

Section 4.03. Capitalization. Earth's authorized capital stock, as of January
13, 2012, consists solely of 2,850,000 authorized shares of common stock of
which 510,002 common shares are issued and outstanding, including the Exchange
Shares, and no preferred shares are issued and outstanding. All of such issued
and outstanding shares of Earth's common stock are duly authorized, validly
issued, fully paid and non-assessable. There are no outstanding options,
warrants, agreements or rights to subscribe for or to purchase, or commitments
to issue, shares of Earth's common stock or any other security of Earth or any
plan for any of the foregoing. Earth is not obligated to register the resale of
any of its common stock on behalf of any shareholder of Earth under the
Securities Act.

Section 4.04. Subsidiaries. Earth does not have any subsidiaries.

Section 4.05. SEC Filings.

     (a) Earth has delivered to the Owners Earth's Annual Report on Form 10-K
for the fiscal year ended May 31, 2011, containing Earth's consolidated balance
sheet at May 31, 2011, and consolidated statements of income, changes in
stockholders' deficiency and cash flows of Earth for the period from October 23,
2007 (date of inception) to the fiscal year ended May 31, 2011, along with a
copy of the audit report of Michael T. Studer CPA P.C., of Freeport, New York,
independent auditors ("Earth's Reports"). To the best of Earth's knowledge and
belief, Earth's Reports as of its dates (i) comply in all material respects with
the requirements of the Exchange Act and the rules and regulations of the SEC
thereunder, (ii) do not contain any untrue statement of a material fact, and
(iii) do not omit to state a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading; and

     (b) All documents which Earth is responsible for filing with the SEC or any
regulatory agency in connection with this Agreement will comply as to form in
all material respects with the requirements of applicable law, and all of the
information relating to Earth in any document filed with the SEC or any other
regulatory agency in connection with this Agreement or the transactions
otherwise contemplated hereby shall be true and correct in all material
respects.

Section 4.06. Financial Statements. All consolidated financial statements
included in Earth's Reports, including the related notes, fairly present, in
conformity with generally accepted accounting principles ("GAAP") applied on a
consistent basis (except as indicated therein), the consolidated financial
position of Earth as of the dates thereof and the consolidated results of
operations and changes in shareholders' equity and cash flows of Earth for the
periods then ended, subject, in the case of the interim financial statements, to

                                       5
<PAGE>
normal and recurring year-end audit adjustments and except that the interim
financial statements do not contain all of the notes required by GAAP.

Section 4.07. Articles of Incorporation and Bylaws. Earth has heretofore
delivered to the Owners true, correct and complete copies of its Articles of
Incorporation, certified by the Secretary of State of the State of Nevada and
Bylaws or comparable instruments, certified by the corporate secretary thereof.

Section 4.08. No Conflict. The execution, delivery and performance of this
Agreement and the completion of the transactions contemplated herein will not:

     (a) violate any provision of the Articles of Incorporation, Bylaws or other
charter or organizational document of Earth;

     (b) violate, conflict with or result in the breach of any of the terms of,
result in any modification of the effect of, otherwise give any other
contracting party the right to terminate, or constitute (or with notice or lapse
of time or both constitute) a default under, any contract to which Earth is a
party or by or to which either of its assets or properties, may be bound or
subject;

     (c) violate any order, judgment, injunction, award or decree of any court,
arbitrator or governmental or regulatory body against, or binding upon, or any
agreement with, or condition imposed by, any governmental or regulatory body,
foreign or domestic, binding upon Earth or upon the securities, assets or
business of Earth;

     (d) violate any statute, law or regulation of any jurisdiction as such
statute, law or regulation relates to Earth or to the securities, properties or
business of Earth; or

     (e) result in the breach of any of the terms or conditions of, constitute a
default under, or otherwise cause an impairment of, any permit or license held
by Earth.

Section 4.09. Litigation. There is no litigation, suit, proceeding, action or
claim at law or in equity, pending or to Earth's best knowledge threatened
against or affecting Earth or involving any of Earth's property or assets,
before any court, agency, authority or arbitration tribunal, including, without
limitation, any product liability, workers' compensation or wrongful dismissal
claims, or claims, actions, suits or proceedings relating to toxic materials,
hazardous substances, pollution or the environment. Earth is not subject to or
in default with respect to any notice, order, writ, injunction or decree of any
court, agency, authority or arbitration tribunal.

Section 4.10. Compliance with Laws. To the best knowledge of Earth, it has
complied with all laws, municipal bylaws, regulations, rules, orders, judgments,
decrees and other requirements and policies imposed by any governmental
authority applicable to it, its properties or the operation of its business,
except where the failure to comply will not have a material adverse effect on
the business, properties, financial condition or earnings of Earth.

                                       6
<PAGE>
Section 4.11. Operations of Earth. Since the latest filing date of Earth's
Reports, Earth has not:

     (a) amended its Articles of Incorporation or Bylaws or merged with or into
or consolidated with any other person or entity, subdivided or in any way
reclassified any shares of its capital stock or changed or agreed to change in
any manner the rights of its outstanding capital stock or the character of its
business;

     (b) issued, reserved for issuance, sold or redeemed, repurchased or
otherwise acquired, or issued options or rights to subscribe to, or entered into
any contract or commitment to issue, sell or redeem, repurchase or otherwise
acquire, any shares of its capital stock or any bonds, notes, debentures or
other evidence or indebtedness;

     (c) declared or paid any dividends or declared or made any other
distributions of any kind to its shareholders; or

     (d) made any loan or advance to any of its shareholders or to any of its
directors, officers or employees, consultants, agents or other representatives,
or made any other loan or advance, otherwise than in the ordinary course of
business.

Section 4.12. Material Information. This Agreement, the Schedules attached
hereto and all other information provided, in writing, by Earth or
representatives thereof to the Owners, taken as a whole, do not contain any
untrue statement of a material fact or omit to state a material fact necessary
to make any statement contained herein or therein not misleading. There are no
facts or conditions which have not been disclosed to the Owners in writing
which, individually or in the aggregate, could have a material adverse effect on
Earth or a material adverse effect on the ability of Earth to perform any of its
obligations pursuant to this Agreement.

                                    ARTICLE V
                  REPRESENTATIONS AND WARRANTIES OF THE OWNERS

The Owners represent to Earth as follows:

Section 5.01. Organization, Standing and Authority; Foreign Qualification. (a)
Project X is a corporation duly organized, validly existing and in good standing
under the laws of the State of Nevada and has all requisite corporate power and
authority to own, lease and operate its properties and to conduct its business
as presently conducted and as proposed to be conducted and is duly qualified or
licensed as a foreign corporation in good standing in each jurisdiction in which
the character of its properties or the nature of its business activities require
such qualification.

Section 5.02. Authorization. The execution, delivery and performance by the
Owners of this Agreement and the consummation of the transactions contemplated
hereby have been duly authorized by all necessary corporate or other action, as
the case may be, on the part of each Owner. Each Owner has duly executed and
delivered this Agreement and this Agreement constitutes a valid and binding
agreement of each Owner. The Project X Shares to be transferred to Earth in
accordance with this Agreement have been duly authorized and validly issued,
fully paid and non-assessable. Upon transfer of the Project X Shares, no
Encumbrance shall exist on either.

                                       7
<PAGE>
Section 5.03. Capitalization.

Earth's authorized capital stock, as of January 13, 2012, consists solely of 75
million authorized shares of common stock and 3 million authorized shares of
preferred stock, of which 510,002 common shares of stock are issued and
outstanding, and no preferred shares are issued and outstanding. All of such
issued and outstanding shares of Earth's common stock are duly authorized,
validly issued, fully paid and non-assessable. Except as described on Schedule
4.03, there are no outstanding options, warrants, agreements or rights to
subscribe for or to purchase, or commitments to issue, shares of Earth's common
stock or any other security of Earth or any plan for any of the foregoing. Earth
is not obligated to register the resale of any of its common stock on behalf of
any shareholder of Earth under the Securities Act.

Section 5.04. Subsidiaries. Project X has no subsidiaries.

Section 5.05. Sale of Exchange Shares. Upon completion of the purchase and sale
of the Exchange Shares, the Owners shall be the beneficial and record holder or
holders of the Exchange Shares. Each Owner are acquiring the Exchange Shares as
principal for its own respective account to be held for investment purposes
only, not for the benefit of any other person and not with a view to the resale,
distribution or other disposition of all or any of the Exchange Shares, and each
Owner is delivering concurrently with this Agreement, a certificate in the form
attached to this Agreement as Exhibit A.

Section 5.06. Restriction on Exchange Shares. Each Owner hereby consents to
Earth making a notation on its records or giving instructions to any transfer
agent of the restricted shares portion of the Exchange Shares in order to
implement the restriction on transfer set forth and described herein. The Owners
have been independently advised as to, and are aware of, the restrictions with
respect to trading in the Exchange Shares pursuant to the applicable securities
laws and further agrees that it is solely responsible for compliance with all
such restrictions as set forth in Exhibit A.

Section 5.07. Investment Risk. The Owners understand that an investment in Earth
includes a high degree of risk, have such knowledge and experience in financial
and business matters, investments, securities and private placements as to be
capable of evaluating the merits and risks of their investment in the Exchange
Shares, are in a financial position to hold the Exchange Shares for an
indefinite period of time, and are able to bear the economic risk of, and
withstand a complete loss of such investment in the Exchange Shares.

Section 5.08. Cooperation. If required by applicable securities laws or order of
a securities regulatory authority, stock exchange or other regulatory authority,
the Owners will execute, deliver, file and otherwise assist Earth in filing such
reports, undertakings and other documents as may be required with respect to the
issuance of the Exchange Shares.

                                       8
<PAGE>
Section 5.09. Tax Advice. The Owners are responsible for obtaining such legal,
including tax, advice as it considers necessary or appropriate in connection
with the execution, delivery and performance by it of this Agreement and the
transactions contemplated herein.

Section 5.10. Investment Representations. All of the acknowledgements,
representations, warranties and covenants set out in Exhibit A hereto are true
and correct as of the date hereof and as of the Closing Date as for each Owner.

Section 5.11. No Conflict. The execution, delivery and performance of this
Agreement and the completion of the transactions contemplated herein will not:

     (a) violate any provision of the Articles or Certificate of Incorporation,
Bylaws or other charter or organizational document of Project X;

     (b) violate, conflict with or result in the breach of any of the terms of,
result in any modification of the effect of, otherwise give any other
contracting party the right to terminate, or constitute (or with notice or lapse
of time or both constitute) a default under, any contract to which Project X or
any of the Owners is a party or by or to which either of their assets or
properties, including the Project X Shares, may be bound or subject;

     (c) violate any order, judgment, injunction, award or decree of any court,
arbitrator or governmental or regulatory body against, or binding upon, or any
agreement with, or condition imposed by, any governmental or regulatory body,
foreign or domestic, binding upon Project X or any of the Owners or upon the
securities, assets or business of Project X and/or any of the Owners;

     (d) violate any statute, law or regulation of any jurisdiction as such
statute, law or regulation relates to Project X and/or the Owners or to the
securities, properties or business of Project X and/or any of the Owners; or

     (e) result in the breach of any of the terms or conditions of, constitute a
default under, or otherwise cause an impairment of, any permit or license held
by Project X and/or any of the Owners.

Section 5.12. Articles of Incorporation and Bylaws.

     (a) The Owners have heretofore delivered to Earth true, correct and
complete copies of each of Project X's respective Articles of Organization.

     (b) The minute books of Project X accurately reflect all actions taken at
all meetings and consents in lieu of meetings of its respective members or
owners, and all actions taken at all meetings and consents in lieu of meetings
of its managing members from the date of incorporation to the date hereof.

Section 5.13. Compliance with Laws. To the best of the Owners' knowledge,
neither Project X nor any of the Owners are in violation of any applicable
order, judgment, injunction, award or decree nor are they in violation of any

                                       9
<PAGE>
federal, state, local or foreign law, ordinance or regulation or any other
requirement of any governmental or regulatory body, court or arbitrator, other
than those violations which, in the aggregate, would not have a material adverse
effect on Project X or the Owners and have not received written notice that any
violation is being alleged.

Section 5.14. Material Information. This Agreement, the Schedules attached
hereto and all other information provided in writing by the Owners or
representatives thereof to Earth, taken as a whole, do not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
any statement contained herein or therein not misleading. There are no facts or
conditions which have not been disclosed to Earth in writing which, individually
or in the aggregate, could have a material adverse effect on Project X and/or
the Owners or a material adverse effect on the ability of the Owners to perform
any of their obligations pursuant to this Agreement.

Section 5.15. Actions and Proceedings. There are no outstanding orders,
judgments, injunctions, awards or decrees of any court, governmental or
regulatory body or arbitration tribunal against or involving Project X or the
Owners. There are no actions, suits or claims or legal, regulatory,
administrative or arbitration proceedings pending or, to the knowledge of the
Owners, threatened against or involving Project X or the Project X Shares.

Section 5.16. Operations. Except as contemplated by this Agreement, since their
respective date of organization, Project X has not:

     (a) amended its Certificate or Articles of Organization or merged with or
into or consolidated with any other person or entity, subdivided or in any way
reclassified any of its ownership interests or changed or agreed to change in
any manner the rights of its ownership interests or the character of its
business;

     (b) issued, reserved for issuance, sold or redeemed, repurchased or
otherwise acquired, or issued options or rights to subscribe to, or entered into
any contract or commitment to issue, sell or redeem, repurchase or otherwise
acquire, any ownership interests or any bonds, notes, debentures or other
evidence or indebtedness; or

     (c) made any loan or advance to any manager, officer, director or employee,
consultant, agent or other representative.

                                   ARTICLE VI
                       COVENANTS AND AGREEMENTS OF OWNERS

Section 6.01. Conduct of Businesses in the Ordinary Course. From the date of
this Agreement to the Closing Date, the Owners shall cause Project X to conduct
its business substantially in the manner in which it is currently conducted.

Section 6.02. Preservation of Permits and Services. From the date of this
Agreement to the Closing Date, the Owners shall cause each of Project X to use
its best efforts to preserve any permits and licenses in full force and effect

                                       10
<PAGE>
and to keep available the services, and preserve the goodwill, of its present
managers, officers, employees, agents, and consultants.

Section 6.03. Conduct Pending the Closing Date. From the date of this Agreement
to the Closing Date: (a) the Owners shall cause each of Project X to use its
best efforts to conduct its affairs in such a manner so that, except as
otherwise contemplated or permitted by this Agreement, the representations and
warranties contained in Article V shall continue to be true and correct on and
as of the Closing Date as if made on and as of the Closing Date; and (b) the
Owners shall promptly notify Earth of any event, condition or circumstance that
would constitute a violation or breach of this Agreement by any of the Owners.

Section 6.04. Corporate Examinations and Investigations. Prior to the Closing
Date, Earth shall be entitled, through its employees and representatives, to
make such reasonable investigation of the assets, liabilities, properties,
business and operations of Project X, and such examination of the books,
records, tax returns, results of operations and financial condition of each. Any
such investigation and examination shall be conducted at reasonable times and
under reasonable circumstances and the Owners and its employees and
representatives, including without limitation, their counsel and independent
public accountants, shall cooperate fully with such representatives in
connection with such reasonable review and examination.

                                   ARTICLE VII
                        COVENANTS AND AGREEMENTS OF EARTH

Section 7.01. Conduct of Businesses in the Ordinary Course. From the date of
this Agreement to the Closing Date, Earth shall conduct its businesses
substantially in the manner in which it is currently conducted.

Section 7.02. Preservation of Permits and Services. From the date of this
Agreement to the Closing Date, Earth shall use its best efforts to preserve any
permits and licenses in full force and effect and to keep available the services
of its respective present officers, employees, consultants and agents and to
preserve their goodwill.

Section 7.03. Litigation. From the date of this Agreement to the Closing Date,
Earth shall notify the Owners of any actions or proceedings of the type
described in Section 4.09 that are threatened or commenced against Earth or
against any officer, director, employee, properties or assets of Earth and of
any requests for information or documentary materials by any governmental or
regulatory body in connection with the transactions contemplated hereby.

Section 7.04. Conduct of Earth Pending the Closing. From the date hereof through
the Closing Date:

     (a) Earth shall use its best efforts to conduct its affairs in such a
manner so that, except as otherwise contemplated or permitted by this Agreement,
the representations and warranties contained in Article IV shall continue to be
true and correct on and as of the Closing Date as if made on and as of the
Closing Date; and

                                       11
<PAGE>
     (b) Earth shall promptly notify the Owners of any event, condition or
circumstance occurring from the date hereof through the Closing Date that would
constitute a violation or breach of this Agreement by Earth.

Section 7.05. Corporate Examinations and Investigations. Prior to the Closing
Date, the Owners shall be entitled, through their employees and representatives,
to make any investigation of the assets, liabilities, properties, business and
operations of Earth; and such examination of the books, records, tax returns,
results of operations and financial condition of Earth. Any such investigation
and examination shall be conducted at reasonable times and under reasonable
circumstances and Earth and its employees and representatives shall cooperate
fully with such representatives in connection with such reasonable review and
examination.

                                  ARTICLE VIII
            CONDITIONS PRECEDENT TO THE OBLIGATION OF EARTH TO CLOSE

The obligations of Earth to be performed by it at the Closing pursuant to this
Agreement are subject to the fulfillment on or before the Closing Date, of each
of the following conditions, any one or more of which may be waived by it, to
the extent permitted by law:

Section 8.01. Representations and Covenants.

     (a) The representations and warranties of the Owners contained in this
Agreement shall be true and correct on and as of the Closing Date with the same
force and effect as though made on and as of the Closing Date, except that any
of such representations and warranties that are given as of a particular date
and relate solely to a particular date or period shall be true as of such date
or period; and

     (b) The Owners shall have performed and complied with all covenants and
agreements required by this Agreement to be performed or complied with by them
on or before the Closing Date. The Owners shall have delivered to Earth a
certificate, dated the Closing Date, and signed by each Owner to the foregoing
effect.

Section 8.02. Governmental Permits and Approvals.

     (a) All approvals, authorizations, consents, permits and licenses from
governmental and regulatory bodies required for the transactions contemplated by
this Agreement and to permit the business currently carried on by Project X to
continue to be carried on substantially in the same manner immediately following
the Closing Date shall have been obtained and shall be in full force and effect,
and Earth shall have been furnished with appropriate evidence, reasonably
satisfactory to them, of the granting of such approvals, authorizations,
consents, permits and licenses; and

     (b) There shall not have been any action taken by any court, governmental
or regulatory body then prohibiting or making illegal on the Closing Date the
transactions contemplated by this Agreement.

Section 8.03. Third Party Consents. All consents, permits and approvals from
parties to contracts with Project X that may be required in connection with the
performance by the Owners hereunder or the continuance of such contracts in full
force and effect after the Closing Date, shall have been obtained.

                                       12
<PAGE>
Section 8.04. Litigation. No action, suit or proceeding shall have been
instituted and be continuing or be threatened by any person to restrain, modify
or prevent the carrying out of the transactions contemplated hereby, or to seek
damages in connection with such transactions, or that has or could have a
material adverse effect on Project X or on the Project X Shares.

Section 8.05 Closing Documents. The Owners shall have executed and delivered the
documents described in Section 2.03 above.

                                   ARTICLE IX
          CONDITIONS PRECEDENT TO THE OBLIGATION OF THE OWNERS TO CLOSE

The obligations of the Owners to be performed by them at the Closing pursuant to
this Agreement are subject to the fulfillment, on or before the Closing Date, of
each the following conditions, any one or more of which may be waived by it, to
the extent permitted by law:

Section 9.01. Representations and Covenants.

     (a) The representations and warranties of Earth contained in this Agreement
shall be true and correct on and as of the Closing Date with the same force and
effect as though made on and as of the Closing Date, except that any of such
representations and warranties that are given as of a particular date and relate
solely to a particular date or period shall be true as of such date or period;
and

     (b) Earth shall have performed and complied with all covenants and
agreements required by this Agreement to be performed or complied with by it on
or before the Closing Date. Earth shall have delivered to the Owners a
certificate dated the Closing Date, and signed by an authorized signatory of
Earth to the foregoing effect.

Section 9.02. Governmental Permits and Approvals.

     (a) All approvals, authorizations, consents, permits and licenses from
governmental and regulatory bodies required for the transactions contemplated by
this Agreement and to permit the business currently carried on by Earth to
continue to be carried on substantially in the same manner immediately following
the Closing Date shall have been obtained and shall be in full force and effect,
and the Owners shall have been furnished with appropriate evidence, reasonably
satisfactory to them, of the granting of such approvals, authorizations,
consents, permits and licenses; and

     (b) There shall not have been any action taken by any court, governmental
or regulatory body then prohibiting or making illegal on the Closing Date the
transactions contemplated by this Agreement.

Section 9.03. Litigation. No action, suit or proceeding shall have been
instituted and be continuing or be threatened by any person to restrain, modify
or prevent the carrying out of the transactions contemplated hereby, or to seek
damages in connection with such transactions, or that has or could have a
material adverse effect on Earth.

                                       13
<PAGE>
Section 9.04. Closing Documents. Earth shall have executed and delivered the
documents described in Section 2.04 above.

                                    ARTICLE X
                                   TERMINATION

Section 10.01. Termination.

     (a) Notwithstanding anything to the contrary in this Agreement, this
Agreement may be terminated and the Share Exchange and the other transactions
contemplated by this Agreement shall be abandoned at any time prior to the
Closing:

          (i) by mutual written consent of the Owners and Earth;

          (ii) by either the Owners or Earth in the event that a temporary
restraining order, preliminary or permanent injunction or other judicial order
preventing the consummation of the Share Exchange or any of the other
transactions contemplated hereby shall have become final and non-appealable;
provided, that, the party seeking to terminate this Agreement pursuant to this
clause (ii) shall have used all commercially reasonable efforts to have such
order, injunction or other order vacated;

          (iii) by Earth if Earth is not then in material breach of this
Agreement and if there shall have been any breach by the Owners (which has not
been waived) of one or more of its representations or warranties, covenants or
agreements set forth in this Agreement, which breach or breaches (A) would give
rise to the failure of a condition set forth in Article VIII, and (B) shall not
have been cured within thirty (30) days following receipt by the Owners of
written notice of such breach, or such longer period in the event that such
breach cannot reasonably be expected to be cured within such 30-day period and
the Owners are diligently pursuing such cure;

          (v) by the Owners if the Owners are not then in material breach of
this Agreement and if there shall have been any breach by Earth (which has not
been waived) of one or more of its representations or warranties, covenants or
agreements set forth in this Agreement, which breach or breaches (A) would give
rise to the failure of a condition set forth in Article IX, and (B) shall not
have been cured within thirty (30) days following receipt by Earth of written
notice of such breach; or

     (b) In the event of termination by the Owners or Earth pursuant to this
Section 10.01, written notice thereof shall forthwith be given to the other
Party and the transactions contemplated by this Agreement shall be terminated,
without further action by any Party. If the transactions contemplated by this
Agreement are terminated as provided herein, the Owners shall immediately cause
each of nominees appointed to the Board of Directors of Earth and/or appointed
as officers of Earth to resign from all such positions.

Section 10.02. Effect of Termination. If this Agreement is terminated and the
transactions contemplated hereby are abandoned as described in Section 10.01,
this Agreement shall become null and void and of no further force and effect,
except for the provisions of (i) Section 10.01 and this Section 10.02; (ii)
Section 11.15 relating to certain expenses; and (iii) Section 11.01 relating to

                                       14
<PAGE>
publicity. Nothing in this Section 10.02 shall be deemed to release any Party
from any liability for any breach by such Party of the terms, conditions,
covenants and other provisions of this Agreement or to impair the right of any
Party to compel specific performance by any other Party of its obligations under
this Agreement.

                                   ARTICLE XI
                                  MISCELLANEOUS

Section 11.01. Public Notices. The Parties agree that all notices to third
parties and all other publicity concerning the transactions contemplated by this
Agreement shall be jointly planned and coordinated and no Party shall act
unilaterally in this regard without the prior approval of the others, such
approval not to be unreasonably withheld.

Section 11.02. Time. Time shall be of the essence hereof.

Section 11.03. Notices. Any notice or other writing required or permitted to be
given hereunder or for the purposes hereof shall be sufficiently given if
delivered or faxed to the Party to whom it is given or, if mailed, by prepaid
registered mail addressed to such Party at:

     If to the Owners, at:

     1666 Garnet Ave., Suite 212
     San Diego, CA  92109

     If to Earth, at:

or at such other address as the Party to whom such writing is to be given shall
have last notified to the Party giving the same in the manner provided in this
article. Any notice mailed shall be deemed to have been given and received on
the fifth Business Day next following the date of its mailing unless at the time
of mailing or within five (5) Business Days thereafter there occurs a postal
interruption which could have the effect of delaying the mail in the ordinary
and usual course, in which case any notice shall only be effectively given if
actually delivered or sent by telecopy. Any notice delivered or faxed to the
Party to whom it is addressed shall be deemed to have been given and received on
the Business Day next following the day it was delivered or faxed.

Section 11.04. Governing Law; Venue; Submission to Jurisdiction. This Agreement
shall be governed by and construed and enforced in accordance with, the internal
laws of the State of Nevada without regard to the conflict of laws principles
thereof as the same apply to agreements executed solely by residents of the
State of Nevada and wholly to be performed within the State of Nevada. Each of
the Parties submits to the jurisdiction of any state or federal court sitting in
the State of Nevada in any action or proceeding arising out of or relating to
this Agreement, agrees that all claims in respect of the action or proceeding

                                       15
<PAGE>
may be heard and determined in any such court, and agrees not to bring any
action or proceeding arising out of or relating to this Agreement in any other
court. Each of the Parties waives any defense or inconvenient forum to the
maintenance of any action or proceeding so brought and waives any bond, surety,
or other security that might be required of any other Party with respect
thereto.

Section 11.05. Severability. If a court of competent jurisdiction determines
that any one or more of the provisions contained in this Agreement is invalid,
illegal or unenforceable in any respect in any jurisdiction, the validity,
legality and enforceability of such provision or provisions shall not in any way
be affected or impaired thereby in any other jurisdiction and the validity,
legality and enforceability of the remaining provisions contained herein shall
not in any way be affected or impaired thereby, unless in either case as a
result of such determination this Agreement would fail in its essential purpose.

Section 11.06. Entire Agreement. This Agreement constitutes the entire agreement
between the Parties and supersedes all prior agreements and understandings, oral
or written, by and between any of the Parties with respect to the subject matter
hereof.

Section 11.07. Further Assurances. The Parties shall with reasonable diligence,
do all such things and provide all such reasonable assurances as may be required
to consummate the transactions contemplated by this Agreement, and each Party
shall provide such further documents or instruments required by the other Party
as may be reasonably necessary or desirable to give effect to the purpose of
this Agreement and carry out its provisions whether before or after the Closing
Date.

Section 11.08. Assignment, Successors and Assigns. Neither Party may assign
(directly, or indirectly by way of merger, amalgamation, stock sale or any
similar procedure) any of its rights or obligations hereunder.

Section 11.09. Waiver. Except as provided in this Article, no action taken or
inaction pursuant to this Agreement will be deemed to constitute a waiver of
compliance with any warranties, conditions or covenants contained in this
Agreement and will not operate or be construed as a waiver of any subsequent
breach, whether of a similar or dissimilar nature. No waiver of any right under
this Agreement shall be binding unless executed in writing by the Party to be
bound thereby.

Section 11.10. Counterparts. This Agreement may be executed in as many
counterparts as may be necessary or by facsimile and each such counterpart
agreement or facsimile so executed shall be deemed to be an original and such
counterparts and facsimile copies together shall constitute one and the same
instrument and shall be valid and enforceable.

                                       16
<PAGE>
IN WITNESS WHEREOF the Parties hereto have set their hand and seal as of the day
and year first above written.

EARTH DRAGON RESOURCES INC.,           "OWNERS"
a Nevada corporation

By: /s/ Thomas Herdman                       /s/ J. Michael Johnson
    -----------------------------            -----------------------------------
Name:  Thomas Herdman                  Name: J. Michael Johnson
Title: President

                                             /s/ Jason Sunstein
                                             -----------------------------------
                                       Name: Jason Sunstein

                                             /s/ Ralph Phillips
                                             -----------------------------------
                                       Name: Ralph Phillips

                                             /s/ Scott Heimdal
                                             -----------------------------------
                                       Name: Scott Heimdal, President
                                             Oceanic Research and Recovery, Inc.

                                       17

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