Document:

Exhibit 10.1

 

 

 

 

May 28, 2014

 

Nuvilex, Inc.

12510 Prosperity Drive

Silver Spring, MD 20904-1643

Phone: 917-595-2850

Fax: 917-595-2851

	Attention: 	Kenneth L. Waggoner
	 	Chief Executive Officer and President

 

Re: Financial Advisory, Offering and At the
Market Offering (“ATM”)

 

Dear Mr. Waggoner:

 

This letter will confirm our understanding that the company known
to us as Nuvilex, Inc. (“Company”) has engaged Chardan Capital Markets, LLC (“Chardan”, “Advisor”,
“Placement Agent”) to act as the Company’s sole managing financial advisor and exclusive placement
agent in connection with a planned offering of the Company’s common shares of common stock (“Transaction”).

 

The terms of our appointment are as follows:

 

1.            Engagement
Period. The Company hereby engages Chardan, for the period beginning on the date hereof and ending upon consummation of the
“Offering,” defined below (“Engagement Period”). During the Engagement Period or until the consummation
of the Offering, and as long as Chardan is proceeding in good faith with the Offering, the Company agrees not to solicit, negotiate
with or enter into any agreement with any other source of financing (whether equity, debt or otherwise), any underwriter, potential
underwriter, placement agent, financial advisor, fund, investment vehicle or any other person or entity in connection with an
offering of the Company’s securities or any other financing by the Company, except pursuant to the Mutual Termination and
Release Agreement dated on or about the date hereof between the Company and Lincoln Park Capital Fund, LLC (“Lincoln
Park Agreement”) or as otherwise mutually agreed to by Chardan and the Company. 

 

(a)            Offering. The Offering will consist of the proposed placement (“Offering”)
of up to the total shares and amount (up to $50 million) raised
under the Company’s Form S-3 to be filed with the SEC, less the number of shares and amount relating to the Lincoln Park
Agreement included in such Form S-3 (“Shares”). Shares are sometimes referred to herein as “Securities”.
Chardan will act the exclusive sales agent for the Company, on a “reasonable best efforts” basis, in connection with
the Offering.

 

    	1

    	 

    

 

(b)            Agent Sales. Subject to the terms and conditions and in reliance upon the representations and warranties herein set forth,
the Company will issue and agrees to sell Shares from time to time through Chardan, acting as sales agent, and Chardan agrees to
use its reasonable best efforts to sell, as sales agent for the Company, the Shares on the following terms:

 

(i)            The
Shares are to be sold on a daily basis or otherwise as shall be agreed to by the Company and Chardan on any day that (A) is
a trading day for the OTCQB operated by the OTC Markets Group, Inc. (“OTCQB”), (B) the Company has instructed
Chardan by telephone (confirmed promptly by electronic mail) to make such sales (“Sales Notice”) and (C) the
Company has satisfied its obligations under Section 6 of this Agreement. The Company will designate the maximum amount of the
Shares to be sold by Chardan daily (subject to the limitations set forth in Section 1(a)) and the minimum price per Share at which
such Shares may be sold. Subject to the terms and conditions hereof, Chardan shall use its reasonable efforts to sell on a particular
day all of the Shares designated for the sale by the Company on such day. The gross sales price of the Shares sold under this
Section 1(b) shall be the market price for shares of the Shares sold by Chardan under this Section 1(b) on the OTCQB
at the time of sale of such Shares.

 

(ii)           The
Company acknowledges and agrees that (A) there can be no assurance that Chardan will be successful in selling the Shares,
(B) Chardan will incur no liability or obligation to the Company or any other person or entity if it does not sell Shares
for any reason other than a failure by Chardan to use its reasonable efforts consistent with its normal trading and sales practices
and applicable law and regulations to sell such Shares as required under this Agreement, and (C) Chardan shall be under no
obligation to purchase Shares on a principal basis pursuant to this Agreement. Notwithstanding (ii)(C) above, if Chardan shall
purchase and sell as a principal in any transaction, and not as a sales agent for the Company, Chardan shall only resell to the
public and not through privately negotiated transactions, or to or for its own account.

 

(iii)           The Company shall not authorize the issuance and sale of, and Chardan shall not be obligated to use its reasonable efforts to sell,
any Share at a price lower than the minimum price therefor designated from time to time by the Company’s Board of Directors
(“Board”), or a duly authorized committee thereof, and notified to Chardan in writing. The Company or Chardan
may, upon notice to the other party hereto by telephone (confirmed promptly by electronic mail), suspend the offering of the Shares
for any reason and at any time; provided, however, that such suspension or termination shall not affect or impair the parties’
respective obligations with respect to the Shares sold hereunder prior to the giving of such notice.

 

    	2

    	 

    

 

(iv)            Chardan may sell Shares by any method permitted by law deemed to be an ATM as defined in Rule 415, including without limitation
sales made directly on the OTCQB, on any other existing trading market for the Common Stock or to or through a market maker. Chardan
may also sell Shares in privately negotiated transactions; provided however, that any Shares sold in privately negotiated transactions
must first be approved for sale by the Company.

 

(v)            Chardan shall provide written confirmation (which may be by facsimile or electronic mail) to the Company following the close of
trading on the OTCQB each day in which the Shares are sold under this Section 1(b) setting forth the number of the Shares sold
on such day, the aggregate gross sales proceeds and the net proceeds to the Company, and the compensation payable by the Company
to Chardan with respect to such sales.

 

(vi)            Upon delivery of a Sales Notice, the Company shall issue and deliver the maximum number of Shares to be sold pursuant to the Sales
Notice to Chardan’s account at The Depository Trust Company (“DTC”) via the DWAC system. Chardan shall
have no obligation to attempt to sell Shares prior to the delivery of the Shares. Settlement for sales of the Shares pursuant to
this Section 1(b) will occur on the last day of the month for any sales of Shares with a Settlement Date that occurred before the
last day of such month. For the purposes of this Agreement, the sale of Shares will settle on the third (3rd) Business Day following
the date on which such sales are made (each, a “Settlement Date”).  Chardan shall notify the Company of
each sale of Shares on the date of such sale.  On the last day of each month, Chardan shall notify the Company of the amount
of proceeds to be delivered to the Company (“Net Proceeds”) which will be equal to the aggregate sales price
received by Chardan, after deduction for (i) Chardan’s commission, discount or other compensation for such sales payable
by the Company pursuant to Section 1 hereof, and (ii) any transaction fees imposed by any governmental or self-regulatory
organization in respect of such sales.

 

(vii)            At each Settlement Date, the Company shall be deemed to have affirmed each representation and warranty contained in this Agreement
as if such representation and warranty were made as of such date, modified as necessary to relate to the Registration Statement
and the Prospectus as amended as of such date. Any obligation of Chardan to use its reasonable efforts to sell the Shares on behalf
of the Company shall be subject to the continuing accuracy of the representations and warranties of the Company herein, to the
performance by the Company of its obligations hereunder and to the continuing satisfaction of the additional conditions specified
in Section 6 of this Agreement.

 

    	3

    	 

    

 

2.            Pricing. The terms of such Placement shall be mutually agreed upon by the Company and the purchasers (each, “Purchaser”
and collectively, “Purchasers”) and nothing herein constitutes that Chardan would have the power or authority
to bind the Company or any Purchaser or an obligation for the Company to issue any Shares.

 

3.            Compensation.

 

(a)            In connection with a Transaction structured as an ATM, the Company will pay Chardan a cash fee of 3% (“ATM Placement
Fee”) of the aggregate gross proceeds from the issuance of Securities.

 

(b)            In connection with a Transaction structured as a public offering or private placement of a distinct block or blocks of the
Company’s Securities, the Company will pay Chardan aggregate transaction fee
(“Traditional Placement Fee”) as stated below. All such fees shall be immediately paid by the Company to Chardan
at the closing of the Transaction; however, if such Transaction occurs through multiple closings, then pro rata portion of such
fees shall be paid upon each closing:

 

(i)            Cash Fee. The Company shall pay to Chardan an aggregate cash fee equal to seven percent (7.0%) of the aggregate sales price
of Securities sold or amount drawn on a revolving facility in the Transaction.

 

(ii)          Warrant Fee. The Company shall pay to Chardan or its designee five-year warrants (“Agent Warrants”) to
purchase an aggregate of five percent (5.0%) of the number of such Securities sold by the Company in the Transaction. The Agent
Warrants shall contain customary terms, including, without limitation, provisions for cashless exercise and the same registration
rights afforded to investors in the Transaction.

 

(iii)          For any Transaction involving an investor introduced to Chardan by the Company, the cash compensation described above shall be
reduced by 3%.

 

4.          Expenses. In addition to any fees or other compensation that may be paid to Chardan hereunder, whether or not any
Transaction occurs, the Company will reimburse Chardan promptly upon receipt of an invoice for fees and expenses of Chardan’s
counsel not to exceed $15,000.

 

    	4

    	 

    

 

5.          SEC Filings. The Company represents and warrants
to, and agrees with, the Chardan that:

 

(a)          The Company
will file with the Securities and Exchange Commission (“Commission”) a registration statement on Form S-3 under
the Securities Act of 1933, as amended (“Securities Act”) for the registration under the Securities Act of the
Shares. At the time of such filing, the Company will meet the requirements of Form S-3 under the Securities Act. Such registration
statement will meet the requirements set forth in Rule 415(a)(1)(x) under the Securities Act and comply with said Rule. The Company
will file with the Commission pursuant to Rule 424(b) under the Securities Act, and the rules and regulations (“Rules
and Regulations”) of the Commission promulgated thereunder, a supplement to the form of prospectus included in such registration
statement relating to the placement of the Shares and the plan of distribution thereof and has advised the Chardan of all further
information (financial and other) with respect to the Company required to be set forth therein. Such registration statement, including
the exhibits thereto, as amended at the date of its effectiveness under the Securities Act, is hereinafter called the “Registration
Statement”; such prospectus in the form in which it appears in the Registration Statement is hereinafter called the “Base
Prospectus”; and the supplemented form of prospectus, in the form in which it will be filed with the Commission pursuant
to Rule 424(b) (including the Base Prospectus as so supplemented) is hereinafter called the “Prospectus Supplement.”
Any reference in this Agreement to the Registration Statement, the Base Prospectus or the Prospectus Supplement shall be deemed
to refer to and include the documents incorporated by reference therein (“Incorporated Documents”) pursuant
to Item 12 of Form S-3 which were filed under the Securities Exchange Act of 1934, as amended (“Exchange Act”),
on or before the date of this Agreement, or the issue date of the Base Prospectus or the Prospectus Supplement, as the case may
be; and any reference in this Agreement to the terms “amend,” “amendment” or “supplement” with
respect to the Registration Statement, the Base Prospectus or the Prospectus Supplement shall be deemed to refer to and include
the filing of any document under the Exchange Act after the date of this Agreement, or the issue date of the Base Prospectus or
the Prospectus Supplement, as the case may be, deemed to be incorporated therein by reference. All references in this Agreement
to financial statements and schedules and other information that is “contained,” “included,” “described,”
“referenced,” “set forth” or “stated” in the Registration Statement, the Base Prospectus or
the Prospectus Supplement (and all other references of like import) shall be deemed to mean and include all such financial statements
and schedules and other information that is or is deemed to be incorporated by reference in the Registration Statement, the Base
Prospectus or the Prospectus Supplement, as the case may be. No stop order suspending the effectiveness of the Registration Statement
or the use of the Base Prospectus or the Prospectus Supplement will have been issued, and no proceeding for any such purpose will
be pending or initiated or, to the Company's knowledge, threatened by the Commission. For purposes of this Agreement, “free
writing prospectus” has the meaning set forth in Rule 405 under the Securities Act and the “Time of Sale Prospectus”
means the preliminary prospectus, if any, together with the free writing prospectuses, if any, used in connection with the Placement,
including any documents incorporated by reference therein.

 

    	5

    	 

    

 

(b)            The Registration
Statement (and any further documents to be filed with the Commission) will contain all exhibits and schedules as required by the
Securities Act. Each of the Registration Statement and any post-effective amendment thereto, at the time it became effective, complied
in all material respects with the Securities Act and the Exchange Act and the applicable Rules and Regulations and did not and,
as amended or supplemented, if applicable, will not, contain any untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein not misleading. The Base Prospectus, the Time of
Sale Prospectus, if any, and the Prospectus Supplement, each as of its respective date, comply in all material respects with the
Securities Act and the Exchange Act and the applicable Rules and Regulations. Each of the Base Prospectus, the Time of Sale Prospectus,
if any, and the Prospectus Supplement, as amended or supplemented, did not and will not contain as of the date thereof any untrue
statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading. The Incorporated Documents, when they were filed with the Commission,
conformed in all material respects to the requirements of the Exchange Act and the applicable Rules and Regulations, and none of
such documents, when they were filed with the Commission, contained any untrue statement of a material fact or omitted to state
a material fact necessary to make the statements therein (with respect to Incorporated Documents incorporated by reference in the
Base Prospectus or Prospectus Supplement), in light of the circumstances under which they were made, not misleading; and any further
documents so filed and incorporated by reference in the Base Prospectus, the Time of Sale Prospectus, if any, or Prospectus Supplement,
when such documents are filed with the Commission, will conform in all material respects to the requirements of the Exchange Act
and the applicable Rules and Regulations, as applicable, and will not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.
No post-effective amendment to the Registration Statement reflecting any facts or events arising after the date thereof which represent,
individually or in the aggregate, a fundamental change in the information set forth therein is required to be filed with the Commission.
There are no documents required to be filed with the Commission in connection with the transaction contemplated hereby that (x)
have not been filed as required pursuant to the Securities Act or (y) will not be filed within the requisite time period. There
are no contracts or other documents required to be described in the Base Prospectus, the Time of Sale Prospectus, if any, or Prospectus
Supplement, or to be filed as exhibits or schedules to the Registration Statement, that have not been described or filed as required.

 

(c)            The Company has delivered, or will as promptly as practicable deliver, to Chardan complete conformed copies of the Registration
Statement and of each consent and certificate of experts, as applicable, filed as a part thereof, and conformed copies of the Registration
Statement (without exhibits), the Base Prospectus, the Time of Sale Prospectus, if any, and the Prospectus Supplement, as amended
or supplemented, in such quantities and at such places as Chardan reasonably request. Neither the Company nor any of its directors
and officers has distributed and none of them will distribute, prior to the Closing Date, any offering material in connection with
the offering and sale of the Shares other than the Base Prospectus, the Time of Sale Prospectus, if any, the Prospectus Supplement,
the Registration Statement, copies of the documents incorporated by reference therein and any other materials permitted by the
Securities Act.

 

    	6

    	 

    

 

6.            Representations and Warranties. Except as set forth under the corresponding section of the Disclosure Schedules which
Disclosure Schedules shall be deemed a part hereof, the Company hereby makes the representations and warranties set forth below
to the Chardan.

 

(a)            Organization
and Qualification. All of the direct and indirect subsidiaries (individually, “Subsidiary”) of the Company
are set forth on Schedule 3(A). Except as set forth in Schedule 3(A), the Company owns, directly or indirectly, all of the capital
stock or other equity interests of each Subsidiary free and clear of any “Liens” (which for purposes of this
Agreement shall mean a lien, charge, security interest, encumbrance, right of first refusal, preemptive right or other restriction),
and all the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable
and free of preemptive and similar rights to subscribe for or purchase securities. The Company and each of the Subsidiaries is
an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of
its incorporation or organization (as applicable), with the requisite power and authority to own and use its properties and assets
and to carry on its business as currently conducted. Neither the Company nor any Subsidiary is in violation or default of any of
the provisions of its respective certificate or articles of incorporation, bylaws or other organizational or charter documents.
Each of the Company and the Subsidiaries is duly qualified to conduct business and is in good standing as a foreign corporation
or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification
necessary, except where the failure to be so qualified or in good standing, as the case may be, could not have or reasonably be
expected to result in (i) a material adverse effect on the legality, validity or enforceability of this Agreement, (ii) a material
adverse effect on the results of operations, assets, business, prospects or condition (financial or otherwise) of the Company and
the Subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company’s ability to perform in any material
respect on a timely basis its obligations under this Agreement (any of (i), (ii) or (iii), a “Material Adverse
Effect”) and no “Proceeding” (which for purposes of this Agreement shall mean any action, claim, suit,
investigation or proceeding (including, without limitation, an investigation or partial proceeding, such as a deposition), whether
commenced or threatened) has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit
or curtail such power and authority or qualification.

 

    	7

    	 

    

 

(b)            Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate
the transactions contemplated by each of this Agreement and otherwise to carry out its obligations hereunder. The execution and
delivery of this Agreement this Agreement by the Company and the consummation by it of the transactions contemplated hereby have
been duly authorized by all necessary action on the part of the Company and no further action is required by the Company, its board
of directors or its stockholders in connection therewith other than in connection with the “Required Approvals”
(as defined in subsection 3(D) below). This Agreement has been (or upon delivery will have been) duly executed by the Company and,
when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of the Company enforceable
against the Company in accordance with its terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium
and other laws of general application affecting enforcement of creditors’ rights generally and (ii) as limited by laws relating
to the availability of specific performance, injunctive relief or other equitable remedies.

 

(c)            No Conflicts. The execution, delivery and performance of this Agreement by the Company, the issuance and sale of the
Securities and the consummation by the Company of the other transactions contemplated hereby and thereby do not and will not (i)
conflict with or violate any provision of the Company’s or any Subsidiary’s certificate or articles of incorporation,
bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default (or an event that with notice
or lapse of time or both would become a default) under, result in the creation of any Lien upon any of the properties or assets
of the Company or any Subsidiary, or give to others any rights of termination, amendment, acceleration or cancellation (with or
without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary
debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which any property or asset of
the Company or any Subsidiary is bound or affected, or (iii) subject to the Required Approvals, conflict with or result in a violation
of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to
which the Company or a Subsidiary is subject (including federal and state securities laws and regulations), or by which any property
or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii) and (iii), with respect
to the Lincoln Park Agreement or such as could not have or reasonably be expected to result in a Material Adverse Effect.

 

(d)            Filings,
Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice
to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other
“Person” (defined as an individual or corporation, partnership, trust, incorporated or unincorporated association,
joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity
of any kind, including, without limitation, the OTCQB) in connection with the execution, delivery and performance by the Company
of this Agreement, other than such filings as are required to be made under applicable Federal and state securities laws (collectively,
“Required Approvals”).

 

    	8

    	 

    

 

(e)            Issuance
of the Securities; Registration. The Securities are duly authorized and, when issued and paid for in accordance with this Agreement,
will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company other than restrictions
on transfer provided for in this Agreement. The issuance by the Company of the Securities will be registered under the Securities
Act and all of the Securities will be freely transferable and tradable by the Purchasers without restriction (other than any restrictions
arising solely from an act or omission of a Purchaser). The Securities will be issued pursuant to the Registration Statement and
the issuance of the Securities will be registered by the Company under the Securities Act. Upon its effectiveness under the Securities
Act, the Registration Statement will be available for the issuance of the Securities thereunder and the Company will not have received
any notice that the Commission has issued or intends to issue a stop-order with respect to the Registration Statement or that the
Commission otherwise has suspended or withdrawn the effectiveness of the Registration Statement, either temporarily or permanently,
or intends or has threatened in writing to do so. The "Plan of Distribution" section under the Registration Statement
permits the issuance and sale of the Securities hereunder. Upon receipt of the Securities, the Purchasers will have good and marketable
title to such Securities and the Securities will be freely tradable on the OTCQB. 

 

(f)            Capitalization.
The capitalization of the Company is as set forth on Schedule 3(F). The Company has not issued any capital stock since its most
recently filed periodic report under the Exchange Act, other than pursuant to the exercise of employee stock options under the
Company’s stock option plans, the issuance of shares of Common Stock to employees and pursuant to the conversion or exercise
of securities exercisable, exchangeable or convertible into Common Stock (“Common Stock Equivalents”). No Person
has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions
contemplated by this Agreement, except for Lincoln Park as described above. Except as a result of the purchase and sale of the
Securities or as described in the SEC Reports (as defined below) or disclosed to Chardan, there are no outstanding options, warrants,
scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations
convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire, any shares of
Common Stock, or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become
bound to issue additional shares of Common Stock or Common Stock Equivalents. The issuance and sale of the Securities will not
obligate the Company to issue shares of Common Stock or other securities to any Person (other than the Purchasers) and will not
result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under such securities.
All of the outstanding shares of capital stock of the Company are validly issued, fully paid and nonassessable, have been issued
in compliance with all federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive
rights or similar rights to subscribe for or purchase securities. There are no stockholders agreements, voting agreements or other
similar agreements with respect to the Company’s capital stock to which the Company is a party or, to the knowledge of the
Company, between or among any of the Company’s stockholders, except as otherwise disclosed to Chardan.

 

    	9

    	 

    

 

(g)            SEC
Reports; Financial Statements. The Company has complied in all material respects with requirements to file all reports, schedules,
forms, statements and other documents required to be filed by it under the Securities Act and the Exchange Act, including pursuant
to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (or such shorter period as the Company was required
by law to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference
therein, being collectively referred to herein as the “SEC Reports”) on a timely basis or has received a valid
extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension. As of their
respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange
Act and the rules and regulations of the Commission promulgated thereunder, and none of the SEC Reports, when filed, contained
any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order
to make the statements therein, in the light of the circumstances under which they were made, not misleading. The financial statements
of the Company included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules
and regulations of the Commission with respect thereto as in effect at the time of filing. Such financial statements have been
prepared in accordance with United States generally accepted accounting principles applied on a consistent basis during the periods
involved (“GAAP”), except as may be otherwise specified in such financial statements or the notes thereto and
except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material respects
the financial position of the Company and its consolidated subsidiaries as of and for the dates thereof and the results of operations
and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit
adjustments.

 

(h)            Material
Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial statements included
within the SEC Reports, except as specifically disclosed in the SEC Reports, (i) there has been no event, occurrence or development
that has had or that could reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not incurred any
liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business
consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements pursuant
to GAAP or required to be disclosed in filings made with the Commission, (iii) the Company has not altered its method of accounting,
(iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased,
redeemed or made any agreements to purchase or redeem any shares of its capital stock and (v) the Company has not issued any equity
securities to any officer, director or “Affiliate” (defined as any Person that, directly or indirectly through one
or more intermediaries, controls or is controlled by or is under common control with a Person, as such terms are used in and construed
under Rule 144 under the Securities Act), except pursuant to existing Company stock option plans or as a result of a direct stock
grant. The Company does not have pending before the Commission any request for confidential treatment of information. Except for
the issuance of the Securities contemplated by this Agreement or as set forth on Schedule 3(h), no event, liability or development
has occurred or exists with respect to the Company or its Subsidiaries or their respective business, properties, operations or
financial condition, that would be required to be disclosed by the Company under applicable securities laws at the time this representation
is made that has not been publicly disclosed one trading day prior to the date that this representation is made.

 

    	10

    	 

    

 

(i)            Litigation.
There is no action, suit, inquiry, notice of violation, Proceeding or investigation pending or, to the knowledge of the Company,
threatened against or affecting the Company, any Subsidiary or any of their respective properties before or by any court, arbitrator,
governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”)
which (i) adversely affects or challenges the legality, validity or enforceability of any of this Agreement or the Securities or
(ii) could, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect. Neither
the Company nor any Subsidiary, nor any director or officer thereof, is or has been the subject of any Action involving a claim
of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty. There has not been,
and to the knowledge of the Company, there is not pending or contemplated, any investigation by the Commission involving the Company
or any current or former director or officer of the Company. The Commission has not issued any stop order or other order suspending
the effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange Act or the Securities
Act. None of the Company’s or its Subsidiaries’ employees is a member of a union that relates to such employee’s
relationship with the Company, and neither the Company or any of its Subsidiaries is a party to a collective bargaining agreement,
and the Company and its Subsidiaries believe that their relationships with their employees are good. No executive officer, to the
knowledge of the Company, is, or is now expected to be, in violation of any material term of any employment contract, confidentiality,
disclosure or proprietary information agreement or non-competition agreement, or any other contract or agreement or any restrictive
covenant, and the continued employment of each such executive officer does not subject the Company or any of its Subsidiaries to
any liability with respect to any of the foregoing matters. The Company and its Subsidiaries are in compliance with all U.S. federal,
state, local and foreign laws and regulations relating to employment and employment practices, terms and conditions of employment
and wages and hours, except where the failure to be in compliance could not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect.

 

(j)            Labor
Relations. No material labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees
of the Company which could reasonably be expected to result in a Material Adverse Effect.

 

    	11

    	 

    

 

(k)            Compliance.
Neither the Company nor any Subsidiary (i) is in default under or in violation of (and no event has occurred that has not been
waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has the
Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture,
loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is
bound (whether or not such default or violation has been waived), (ii) is in violation of any order of any court, arbitrator or
governmental body, or (iii) is or has been in violation of any statute, rule or regulation of any governmental authority, including
without limitation all foreign, federal, state and local laws applicable to its business and all such laws that affect the environment,
except in each case as could not have a Material Adverse Effect. 

 

(l)            Regulatory
Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal,
state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the SEC Reports,
except where the failure to possess such permits could not have or reasonably be expected to result in a Material Adverse Effect
(“Material Permits”), and neither the Company nor any Subsidiary has received any notice of proceedings relating
to the revocation or modification of any Material Permit.

 

(m)            Title
to Assets. To the extent possible, the Company and the Subsidiaries have good and marketable title in fee simple to all real
property owned by them that is material to the business of the Company and the Subsidiaries and good and marketable title in all
personal property owned by them that is material to the business of the Company and the Subsidiaries, in each case free and clear
of all Liens, except for Liens as do not materially affect the value of such property and do not materially interfere with the
use made and proposed to be made of such property by the Company and the Subsidiaries and Liens for the payment of federal, state
or other taxes, the payment of which is neither delinquent nor subject to penalties. Any real property and facilities held under
lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases with which the Company
and the Subsidiaries are in compliance.

 

(n)            Patents
and Trademarks. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks,
trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other similar intellectual
property rights necessary or material for use in connection with their respective businesses as described in the SEC Reports and
which the failure to so have could have a Material Adverse Effect (collectively, “Intellectual Property Rights”).
Neither the Company nor any Subsidiary has received notice (written or otherwise) that the Intellectual Property Rights used by
the Company or any Subsidiary violates or infringes upon the rights of any third party. To the knowledge of the Company, all such
Intellectual Property Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual
Property Rights of others. The Company and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality
and value of all of their intellectual properties, except where failure to do so could not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect.

 

    	12

    	 

    

 

(o)            Insurance.
The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and
in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged, including,
but not limited to, directors and officers insurance coverage at least equal to the aggregate subscription amount under this Agreement.
To the best knowledge of the Company, such insurance contracts and policies are accurate and complete. Neither the Company nor
any Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage
expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without a significant
increase in cost. 

 

(p)            Transactions
with Affiliates and Employees. Except as set forth in the SEC Reports, none of the officers or directors of the Company and,
to the knowledge of the Company, none of its employees are presently a party to any transaction with the Company or any Subsidiary
(other than for services as employees, officers and directors), including any contract, agreement or other arrangement providing
for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments
to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director,
or any such employee has a substantial interest or is an officer, director, trustee or partner, other than for (i) payment of salary
or consulting fees for services rendered, (ii) reimbursement of expenses incurred on behalf of the Company and (iii) other employee
benefits, including stock option agreements under any stock option plan of the Company.

 

(q)            Sarbanes-Oxley.
The Company is in material compliance with all provisions of the Sarbanes-Oxley Act of 2002 which are applicable to it as of the
date hereof and of the closing date of the Placement. 

 

(r)            Certain Fees. Except as otherwise provided in this Agreement, no brokerage or finder’s fees or commissions are
or will be payable by the Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank
or other Person with respect to the transactions contemplated by this Agreement. The Purchasers shall have no obligation with respect
to any fees or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this Section
that may be due in connection with the transactions contemplated by this Agreement.

 

(s)            OTCQB
Rules. The issuance and sale of the Securities hereunder will not contravene the rules and regulations of the OTCQB.

 

(t)            Investment
Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities, will
not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940,
as amended. The Company shall conduct its business in a manner so that it will not become subject to the Investment Company Act.

 

    	13

    	 

    

 

(u)            Registration
Rights. Except as disclosed in the SEC Reports and except for Lincoln Park, no Person has any right to cause the Company to
effect the registration under the Securities Act of any Securities of the Company.

 

(v)            Application
of Takeover Protections. The Company and its Board of Directors have taken all necessary action, if any, in order to render
inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement)
or other similar anti-takeover provision under the Company’s Certificate of Incorporation (or similar charter documents)
or the laws of its state of incorporation that is or could become applicable to the Purchasers as a result of the Purchasers and
the Company fulfilling their obligations or exercising their rights under this Agreement, including without limitation as a result
of the Company’s issuance of the Securities and the Purchasers’ ownership of the Securities.

 

(w)            Solvency.
Based on the financial condition of the Company as of the Closing Date after giving effect to the receipt by the Company of the
proceeds from the sale of the Securities hereunder, (i) the fair saleable value of the Company’s assets exceeds the amount
that will be required to be paid on or in respect of the Company’s existing debts and other liabilities (including known
contingent liabilities) as they mature; (ii) the Company’s assets do not constitute unreasonably small capital to carry on
its business for the current fiscal year as now conducted and as proposed to be conducted including its capital needs taking into
account the particular capital requirements of the business conducted by the Company, and projected capital requirements and capital
availability thereof; and (iii) the current cash flow of the Company, together with the proceeds the Company would receive, were
it to liquidate all of its assets, after taking into account all anticipated uses of the cash, would be sufficient to pay all amounts
on or in respect of its debt when such amounts are required to be paid. The Company does not intend to incur debts beyond its ability
to pay such debts as they mature (taking into account the timing and amounts of cash to be payable on or in respect of its debt).
The Company has no knowledge of any facts or circumstances which lead it to believe that it will file for reorganization or liquidation
under the bankruptcy or reorganization laws of any jurisdiction within one year from the Closing Date. The SEC Reports set forth
as of the dates thereof all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which the Company
or any Subsidiary has commitments. For the purposes of this Agreement, “Indebtedness” shall mean (i) any liabilities
for borrowed money or amounts owed in excess of $50,000 (other than trade accounts payable incurred in the ordinary course of business),
(ii) all guaranties, endorsements and other contingent obligations in respect of Indebtedness of others, whether or not the same
are or should be reflected in the Company’s balance sheet (or the notes thereto), except guaranties by endorsement of negotiable
instruments for deposit or collection or similar transactions in the ordinary course of business; and (iii) the present value of
any lease payments in excess of $50,000 due under leases required to be capitalized in accordance with GAAP. Neither the Company
nor any Subsidiary is in default with respect to any Indebtedness.

 

    	14

    	 

    

 

(x)            Tax
Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a
Material Adverse Effect, the Company and each Subsidiary has filed all necessary federal, state and foreign income and franchise
tax returns and has paid or accrued all taxes shown as due thereon, and the Company has no knowledge of a tax deficiency which
has been asserted or threatened against the Company or any Subsidiary.

 

(y)            Foreign
Corrupt Practices. Neither the Company, nor to the knowledge of the Company, any agent or other person acting on behalf of
the Company, has (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful
expenses related to foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic government officials
or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully
any contribution made by the Company (or made by any person acting on its behalf of which the Company is aware) which is in violation
of law, or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended.

 

(z)            Accountants.
To the knowledge of the Company, the Company’s accountants who the Company expects will express their opinion with respect
to the financial statements to be included in the Company’s next Annual Report on Form 10-K, are a registered public accounting
firm as required by the Securities Act.

 

(aa)            Regulation
M Compliance.  The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly,
any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate
the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or, paid any compensation for soliciting purchases
of, any of the Securities (other than for the Chardan’s placement of the Securities), or (iii) paid or agreed to pay to any
person any compensation for soliciting another to purchase any other securities of the Company.

 

(bb)            Approvals.
The issuance and quotation of the Shares on the OTCQB requires no further approvals, including but not limited to, the approval
of shareholders.

 

(cc)            FINRA Affiliations.
There are no affiliations with any FINRA member firm among the Company’s officers, directors or, to the knowledge of the
Company, any five percent (5%) or greater stockholder of the Company, except as set forth in the Base Prospectus.

 

    	15

    	 

    

 

7.            Offering
Conditions. The Offering will be conditioned upon, among other things, the following:

(a)            No
stop order suspending the effectiveness of the Registration Statement shall have been issued and no proceedings for that purpose
shall have been initiated or threatened by the Commission, and any request for additional information on the part of the Commission
(to be included in the Registration Statement, the Base Prospectus or the Prospectus Supplement or otherwise) shall have been
complied with to the reasonable satisfaction of the Placement Agent.

(b)            The
Placement Agent shall not have discovered and disclosed to the Company on or prior to the Settlement Date that the Registration
Statement, the Base Prospectus or the Prospectus Supplement or any amendment or supplement thereto contains an untrue statement
of a fact which, in the opinion of counsel for the Placement Agent, is material or omits to state any fact which, in the opinion
of such counsel, is material and is required to be stated therein or is necessary to make the statements therein not misleading.

 

(c)            All
corporate proceedings and other legal matters incident to the authorization, form, execution, delivery and validity of each of
this Agreement, the Shares, the Registration Statement, the Base Prospectus and the Prospectus Supplement and all other legal matters
relating to this Agreement and the transactions contemplated hereby shall be reasonably satisfactory in all material respects to
counsel for the Placement Agent, and the Company shall have furnished to such counsel all documents and information that they may
reasonably request to enable them to pass upon such matters.

 

(d)            The
Placement Agent shall have received from outside counsel to the Company such counsel’s written opinion, addressed to the
Placement Agent and the Purchasers dated as of the Execution Date, in form and substance reasonably satisfactory to the Placement
Agent, which opinion shall include a “10b-5” representation from such counsel.

 

(e)            (i) Neither the Company nor any of its Subsidiaries shall have sustained since the date of the latest audited financial statements
included or incorporated by reference in the Base Prospectus, any loss or interference with its business from fire, explosion,
flood, terrorist act or other calamity, whether or not covered by insurance, or from any labor dispute or court or governmental
action, order or decree, otherwise than as set forth in or contemplated by the Base Prospectus; and (ii) since such date there
shall not have been any change in the capital stock or long-term debt of the Company or any of its Subsidiaries or any change,
or any development involving a prospective change, in or affecting the business, general affairs, management, financial position,
stockholders’ equity, results of operations or prospects of the Company and its Subsidiaries, otherwise than as set forth
in or contemplated by the Base Prospectus, the effect of which, in any such case described in clause (i) or (ii), is, in the judgment
of the Placement Agent, so material and adverse as to make it impracticable or inadvisable to proceed with the sale or delivery
of the Shares on the terms and in the manner contemplated by the Base Prospectus, the Time of Sale Prospectus, if any, and the
Prospectus Supplement.

 

    	16

    	 

    

 

(f)            The
Common Stock is registered under the Exchange Act and, as of the Settlement Date, the Shares shall be listed and admitted and authorized
for trading on the OTCQB, and satisfactory evidence of such actions shall have been provided to the Placement Agent. The Company
shall have taken no action designed to, or likely to have the effect of terminating the registration of the Common Stock under
the Exchange Act or delisting or suspending from trading the Common Stock from the OTCQB, nor has the Company received any information
suggesting that the Commission is contemplating terminating such registration or the OTCQB is contemplating not quoting the Company’s
Shares on the OTCQB.

 

(g)            Subsequent
to the execution and delivery of this Agreement, there shall not have occurred any of the following: (i) trading in securities
generally on the New York Stock Exchange, the NASDAQ Capital Market, Alternext US or in trading in any securities of the Company
on any exchange or in the over-the-counter market shall have been suspended or minimum or maximum prices or maximum ranges for
prices shall have been established on any such exchange or such market by the Commission, by such exchange or by any other regulatory
body or governmental authority having jurisdiction, (ii) a banking moratorium shall have been declared by federal or state authorities
or a material disruption has occurred in commercial banking or securities settlement or clearance services in the United States,
(iii) the United States shall have become engaged in hostilities in which it is not currently engaged, the subject of an act of
terrorism, there shall have been an escalation in hostilities involving the United States, or there shall have been a declaration
of a national emergency or war by the United States, or (iv) there shall have occurred any other calamity or crisis or any change
in general economic, political or financial conditions in the United States or elsewhere, if the effect of any such event in clause
(iii) or (iv) makes it, in the sole judgment of the Placement Agent, impracticable or inadvisable to proceed with the sale or delivery
of the Shares on the terms and in the manner contemplated by the Base Prospectus and the Prospectus Supplement.

 

    	17

    	 

    

 

(h)            No
action shall have been taken and no statute, rule, regulation or order shall have been enacted, adopted or issued by any governmental
agency or body which would, as of the Settlement Date, prevent the issuance or sale of the Shares or materially and adversely affect
or potentially and adversely affect the business or operations of the Company; and no injunction, restraining order or order of
any other nature by any federal or state court of competent jurisdiction shall have been issued as of the Settlement Date which
would prevent the issuance or sale of the Shares or materially and adversely affect or potentially and adversely affect the business
or operations of the Company.

 

(i)            The Company shall have prepared and furnished to the Commission a Report on Form 8-K with respect to the Placement, including as
an exhibit thereto this Agreement.

 

(j)            The Company shall have entered into subscription agreements with each of the Purchasers and such agreements shall be in full force
and effect and shall contain representations and warranties of the Company as agreed between the Company and the Purchasers.

 

(k)            FINRA shall have raised no objection to the fairness and reasonableness of the terms and arrangements of the Placement Agreement.
In addition, the Company shall, if requested by the Placement Agent, make or authorize Placement Agent’s counsel to make
on the Company’s behalf, an Issuer Filing with FINRA pursuant to NASD Rule 2710 with respect to the Registration Statement
and pay all filing fees required in connection therewith.

 

(l)            Prior to the Settlement Date, the Company shall have furnished to the Placement Agent such further information, certificates and
documents as the Placement Agent may reasonably request.

 

8.            Finders’
Fees and Adjustments. The Company represents to Chardan that the Company is or will be liable for any finder’s fees to
third parties in connection with the introduction of the Company to Chardan. The Company represents and warrants to Chardan that
the entry into this engagement letter or any other action of the Company in connection with the proposed Offering will not violate
any agreement between the Company and any other underwriter and that it has obtained the consent of Lincoln Park to enter into
this letter agreement. 
Chardan reserves the right to reduce any item of their compensation or adjust the terms thereof as specified herein in the event
that a determination and/or suggestion will be made by FINRA to the effect that the underwriters’ aggregate compensation
is in excess of FINRA rules or that the terms thereof require adjustment; provided, however, the
aggregate compensation otherwise to be paid to the underwriters by the Company may not be increased above the amounts stated herein
without the written approval of the Company.

 

9.            Integration.
Other than as previously disclosed or reflected in its public filings, neither the Company nor any of its affiliates has either
prior to the initial filing or the effective date of the Registration Statement, made any offer or sale of any securities which
are required to be “integrated” pursuant to the Securities Act or the regulations thereunder with the offer and sale
of the Shares pursuant to the Registration Statement.

 

    	18

    	 

    

 

10.            Company
Cooperation. During the Engagement Period, the Company agrees to cooperate with Chardan and to furnish, or cause to be furnished,
to Chardan, any and all information and data concerning the Company, and the Offering that Chardan reasonably deems appropriate
(“Information”). The Company will provide Chardan reasonable access during normal business hours from
and after the date of execution of this engagement letter until the date of the Closing to all of the Company’s assets,
properties, books, contracts, commitments and records and to the Company’s officers, directors, employees, appraisers, independent
accountants, legal counsel and other consultants and advisors. The Company represents and warrants to Chardan that all Information
(i) contained in any preliminary or final Prospectus prepared by the Company in connection with the Offering and (ii) contained
in any filing by the Company with any court or governmental regulatory agency, commission or instrumentality will be complete
and correct in all material respects and will not contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements therein not misleading in the light of the circumstances under which such statements are
made. The Company acknowledges and agrees that in rendering its services hereunder, Chardan will be using and relying on such
Information (and information available from public sources and other sources deemed reliable by Chardan) without independent verification
thereof by Chardan or independent appraisal by Chardan of any of the Company’s assets. The Company acknowledges and agrees
that this engagement letter and the terms hereof are confidential and will not be disclosed to anyone other than the officers
and directors of the Company and the Company’s accountants, advisors and legal counsel. Except as contemplated by the terms
hereof or as required by applicable law, Chardan will keep strictly confidential all non-public Information concerning the Company
provided to Chardan. No obligation of confidentiality will apply to Information that (iii) is in the public domain as of the date
hereof or hereafter enters the public domain without a breach by Chardan, (iv) was known or became known by Chardan prior to the
Company’s disclosure thereof to Chardan as demonstrated by the existence of its written records, (v) becomes known to Chardan
from a source other than the Company, and other than by the  breach
of an obligation of confidentiality owed to the Company or (vi) is disclosed by the Company to a third party without restrictions
on its disclosure or (e) is independently developed by Chardan.

 

11.            Administration.
Chardan will select a single law firm in each applicable jurisdiction to serve as counsel to Chardan and will collaborate on the
engagement of all other professionals, background checks and the like to avoid duplication of effort or cost. For administrative
convenience, Chardan will serve to administer such professionals and will pay and submit invoices for expense reimbursement to
the Company related to services and expenses that are for the benefit of the Chardan. Other reimbursable expenses of Chardan will
be submitted directly to the Company for payment in accordance with Section 1 hereof. The allocation of the compensation payable
to Chardan as selling commission to other dealers or for other permitted purposes set forth in Section 1 of this Agreement shall
be determined by Chardan without reference to the Company. Disbursements of such allocations shall be made solely and directly
by Chardan as it determines.

 

12.            Third-Party Rights.
This engagement letter does not create, and shall not be construed as creating rights enforceable by any person or entity not a
party hereto, except those entitled hereto by virtue of the indemnification provisions hereof. The Company acknowledges and agrees
that Chardan is not and shall not be construed as a fiduciary of the Company and shall have no duties or liabilities to the equity
holders or the creditors of the Company or any other person by virtue of this engagement letter or the retention of Chardan hereunder,
all of which are hereby expressly waived.

 

    	19

    	 

    

 

13.            Indemnification.

 

(a)            To the extent permitted by law,
the Company will indemnify Chardan, together with its respective affiliates, stockholders, directors, officers, employees and controlling
persons (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) against all losses, claims,
damages, expenses and liabilities, as the same are incurred (including the reasonable fees and expenses of counsel), relating to
or arising out of its activities hereunder or pursuant to this engagement letter, except to the extent that any losses, claims,
damages, expenses or liabilities (or actions in respect thereof) are found in a final judgment (not subject to appeal) by a court
of law to have resulted primarily and directly from any Chardan’s willful misconduct or gross negligence in performing the
services described in this Agreement.

 

(b)            Promptly after receipt by any Chardan of notice of any claim or the commencement of any action or proceeding with respect to which
such Chardan is entitled to indemnity hereunder, Chardan will notify the Company in writing of such claim or of the commencement
of such action or proceeding, but failure to so notify the Company shall not relieve the Company from any obligation it may have
hereunder, except and only to the extent such failure results in the forfeiture by the Company of substantial rights and defenses.
If the Company so elects or is requested by Chardan, the Company will assume the defense of such action or proceeding and will
employ counsel reasonably satisfactory to such Chardan and will pay the fees and expenses of such counsel. Notwithstanding the
preceding sentence, Chardan will be entitled to employ counsel separate from counsel for the Company and from any other party in
such action if counsel for Chardan reasonably determines that it would be inappropriate under the applicable rules of professional
responsibility for the same counsel to represent both the Company and Chardan. In such event, the reasonable fees and disbursements
of no more than one such separate counsel will be paid by the Company, in addition to local counsel. The Company will have the
exclusive right to settle the claim or proceeding provided that the Company will not settle any such claim, action or proceeding
without the prior written consent of Chardan, which will not be unreasonably withheld.

 

(c)            The Company agrees to notify Chardan promptly of the assertion against it or any other person of any claim or the commencement
of any action or proceeding relating to a transaction contemplated by this engagement letter.

 

(d)            If for any reason the foregoing indemnity is unavailable to Chardan or insufficient to hold Chardan harmless, then the Company
shall contribute to the amount paid or payable by Chardan as a result of such losses, claims, damages or liabilities in such proportion
as is appropriate to reflect not only the relative benefits received by the Company on the one hand and Chardan on the other, but
also the relative fault of the Company on the one hand and Chardan on the other that resulted in such losses, claims, damages or
liabilities, as well as any relevant equitable considerations. The amounts paid or payable by a party in respect of losses, claims,
damages and liabilities referred to above shall be deemed to include any legal or other fees and expenses incurred in defending
any litigation, proceeding or other action or claim. Notwithstanding the provisions hereof, Chardan’s share of the liability
hereunder shall not be in excess of the amount of fees actually received, or to be received, by Chardan under this engagement letter
(excluding any amounts received as reimbursement of expenses incurred by Chardan).

 

    	20

    	 

    

 

(e)            These indemnification provisions shall remain in full force and effect whether or not the transaction contemplated by this engagement
letter is completed and shall survive the termination of this engagement letter, and shall be in addition to any liability that
the Company might otherwise have to any indemnified party under this engagement letter or otherwise.

 

13.            Miscellaneous.
The Company represents that it is free to enter into this engagement letter and the transactions contemplated hereby, that
it will act in good faith and that it will not hinder Chardan’s efforts hereunder. This engagement letter will be deemed
to have been made and delivered in New York City and both the binding provisions of this engagement letter and the transactions
contemplated hereby will be governed as to validity, interpretation, construction, effect and in all other respects by the internal
laws of the State of New York, without regard to the conflict of laws principles thereof. Each of Chardan and the Company: (i)
agrees that any lawsuit, action or proceeding arising out of or relating to this engagement letter and/or the transactions contemplated
hereby will be instituted exclusively in New York Supreme Court, County of New York, or in the United States District Court for
the Southern District of New York, (ii) waives any objection which it may have or hereafter to the venue of any such suit, action
or proceeding, and (iii) irrevocably consents to the jurisdiction of the New York Supreme Court, County of New York, and the United
States District Court for the Southern District of New York in any such suit, action or proceeding. Each of the Placement Agent
and the Company further agrees to accept and acknowledge service of any and all process which may be served in any such suit,
action or proceeding in the New York Supreme Court, County of New York, or in the United States District Court for the Southern
District of New York and agrees that service of process upon the Company mailed by certified mail to the Company’s address
will be deemed in every respect effective service of process upon the Company, in any such suit, action or proceeding, and service
of process upon Chardan mailed by certified mail to Chardan’s address will be deemed in every respect effective service
process upon Chardan, in any such suit, action or proceeding.

 

 

 

 

 

 

 

 

 

 

    	21

    	 

    

 

We are delighted at the prospect of working with you and look
forward to a successful Offering. If you are in agreement with the foregoing, please sign and return to us one copy of this engagement
letter. This engagement letter may be executed in counterparts (including facsimile or .pdf counterparts), each of which shall
be deemed an original but all of which together shall constitute one and the same instrument.

 

 

 

 

 

Very truly yours,

 

CHARDAN CAPITAL MARKETS, LLC

 

By    /s/ Kerry
Propper

        Kerry Propper

        CEO

 

 

 

Accepted and agreed as of the date first written
above:

 

NUVILEX, INC.

 

By /s/ Kenneth L. Waggoner

       Kenneth
L. Waggoner

       Chief Executive Officer and President

 

 

    	22EXHIBIT 10.1

 

 

 

 

AGREEMENT AND PLAN OF MERGER

 

 

BY AND AMONG

 

 

INDIGO-ENERGY, INC.,

 

 

FETOPOLIS ACQUISITION CORPORATION, INC.

 

 

AND

 

 

FETOPOLIS INC.

 

 

May 25, 2014

 

 

 

 

    	 

    	 

    

 

AGREEMENT AND PLAN OF MERGER

 

This Agreement and
Plan of Merger (this “Agreement”) is effective as of May 25, 2014, by and among INDIGO-ENERGY, INC., a corporation
formed under the laws of the State of Nevada, United States of America (“Buyer”), FETOPOLIS ACQUISITION CORPORATION,
INC., a corporation formed under the laws of the State of Nevada, United States of America (“Acquisition Corp.”),
FETOPOLIS INC., a corporation formed under the Canada Business Corporations Act in the Province of Ontario, Canada (“Seller”)
and with respect to Article VIII only, New Hope Partners LLC, a Nevada limited liability company (“Buyer Principal Stockholders”).
Certain capitalized terms used in this Agreement are defined in the text or on Exhibit A attached hereto.

 

RECITALS

 

A.         The Boards of Directors of Seller, Buyer and Acquisition Corp. believe it is in the best interests of their respective companies
and the stockholders of their respective companies that Seller and Acquisition Corp. combine into a single company through the
merger of Acquisition Corp. with and into Seller (the “Merger”) and, in furtherance thereof, have approved the
Merger.

 

B.         Pursuant to the Merger, among other things, the outstanding shares of Seller’s common stock (“Seller Common
Stock”) will be exchanged for shares of Buyer’s Common Stock (“Buyer Common Stock”), as set
forth herein.

 

C.         Seller, Buyer and Acquisition Corp. desire to make certain representations and warranties and other agreements in connection
with the Merger.

 

D.         The parties intend, by executing this Agreement, to adopt a plan of reorganization within the meaning of Section 368
of the Code and to cause the Merger to qualify as a reorganization under the provisions of Sections 368(a)(1)(A) and 368(a)(2)(E)
of the Code.

 

E.         The parties intend to cause the Merger to be accounted for as a purchase that is intended not to cause adverse tax implications.

 

The parties agree as
follows:

 

ARTICLE I

THE MERGER

 

1.1.         The Merger.

 

(a)         Constituents of the Merger. The constituent entities of the Merger are Acquisition Corp. and Seller. The name, address,
place of organization, governing law and kind of entity of Acquisition Corp. are as follows:

 

	Name:	 	FETOPOLIS ACQUISITION CORPORATION, INC.	 	 
	Address:	 	74 N. Pecos Road, Suite D	 	 
	 	 	Henderson, Nevada 89074	 	 
	 	 	USA	 	 
	 	 	 	 	 
	Place of Organization:	 	Nevada	 	 
	Governing Law:	 	Nevada	 	 
	Kind of Entity:	 	Corporation	 	 

 

    	1

    	 

    

 

The name, address, place
of organization, governing law and kind of entity of Seller are as follows:

 

	Name:	 	FETOPOLIS INC.	 	 
	Address:	 	3650 Langstaff
Road, Suite 243	 	 
	 	 	Woodbridge, ON L4L 9A8	 	 
	 	 	Canada	 	 
	 	 	 	 	 
	Place of Organization:	 	Ontario,
Canada	 	 
	Governing Law:	 	Ontario,
Canada	 	 
	Kind of Entity:	 	Corporation	 	 

  

(b)         The Merger. At the Effective Time (as defined below) and subject to and upon the terms and conditions of this Agreement
and the applicable provisions of the Nevada Revised Statutes (the Nevada Revised Statutes, including Chapters 78 and 92A thereof,
hereinafter referred to as the “Nevada Law”), Acquisition Corp. will be merged with and into Seller, the separate
corporate existence of Acquisition Corp. will cease, and Seller will continue as the surviving corporation. Seller as the surviving
corporation after the Merger is referred to in this Agreement from time to time as the “Surviving Corporation.”

 

(c)         Closing; Effective Time. The closing of the transactions contemplated by this Agreement (the “Closing”)
will take place as soon as practicable after the satisfaction or waiver of each of the conditions set forth in ARTICLE VI
but no later than December 31, 2014 (the “Closing Date”). The Closing will take place at the offices of Wilson
& Oskam, LLP, 9110 Irvine Center Drive, Irvine, California 92618, or at such other place as the parties agree in writing. In
connection with the Closing, the parties will cause the Merger to be consummated by filing with the Nevada Secretary of State Articles
of Merger (“Articles of Merger”) as required by Section 92A.200 of the Nevada Law (the time of such filing
being the “Effective Time”).

 

(d)         Effect of the Merger. At the Effective Time, the effect of the Merger will be as provided in this Agreement and the
applicable provisions of the Nevada Law. Without limiting the generality of the foregoing, and subject thereto, at the Effective
Time, all property, rights, privileges, powers and franchises of Seller and Acquisition Corp. will vest in the Surviving Corporation,
and all debts, liabilities and duties of Seller and Acquisition Corp. will become the debts, liabilities and duties of the Surviving
Corporation.

 

    	2

    	 

    

 

(e)         Articles of Incorporation and Bylaws of the Surviving Corporation. The Articles of Incorporation and bylaws of Seller,
in effect at the Effective Time will be the Articles of Incorporation and bylaws of the Surviving Corporation until amended in
accordance with applicable Law.

 

(f)         Board of Directors of Surviving Corporation and Buyer. From and after the Effective Time, until successors are duly
elected or appointed and qualified in accordance with applicable Law:

 

(i)         Raaj Kapur Brar and others as appointed by the directors will be the directors of the Surviving Corporation (with Raaj Kapur
Brar being the Chairman of the Board), and

 

(ii)         Raaj
Kapur Brar will be the Chief Executive Officer and President of the Surviving Corporation.

 

1.2.         Effect on Capital Stock. By virtue of the Merger and without any action on the part of Seller or the holders of any
of the following securities at the Effective Time:

 

(a)         Conversion of Seller Common Stock. All of the Seller Common Stock shall be converted into a number of shares of Buyer
Common Stock that will represent ninety five percent (95%) of the outstanding shares of Buyer immediately after the Effective Time,
on a fully diluted basis after giving effect to the Reverse Stock Split (the “Acquisition Shares”). The number
of Acquisition Shares shall be approximately 712,500,000 shares of Buyer Common Stock (on a post Reverse Stock Split basis). Each
issued and outstanding share of Seller Common Stock at the Effective Time will be converted into the right to receive a number
of Acquisition Shares equal to (i) the total number of Acquisition Shares, divided by (ii) the number of Common shares of Seller
outstanding immediately prior to Effective Time.

 

(b)         No Fractional Shares. Notwithstanding any other provision of this Agreement, no fractional shares of Buyer Common
Stock will be issued in connection with the Merger. Any Stockholder of Seller who in connection with the Merger is entitled to
receive a fractional share of Buyer Common Stock shall receive the next whole number of shares of Buyer Common Stock.

 

(c)         Shares Subject to Repurchase Options. If shares of Seller Common Stock outstanding immediately before the Effective
Time are unvested or are subject to a repurchase option, risk of forfeiture or other condition under any applicable restricted
stock purchase agreement, stock option exercise agreement or other agreement with Seller, then the shares of Buyer Common Stock
issued in exchange for such shares of Seller Common Stock also will be unvested and subject to the same repurchase option, risk
of forfeiture or other condition, and the certificates representing such shares of Buyer Common Stock shall be marked accordingly
with appropriate legends.

 

    	3

    	 

    

 

(d)         Dissenters’ Rights of Stockholders of Seller. Seller Dissenting Shares (if any) will not be converted into
shares of Buyer Common Stock but instead will be converted into the right to receive such consideration as may be determined to
be due with respect to such Seller Dissenting Shares pursuant to the Nevada Law. Seller will give Buyer prompt notice of any demand
received by Seller to require Seller to purchase shares of Seller Common Stock, and Buyer will have the right to direct and participate
in all negotiations and proceedings with respect to such demand. Except with the prior written consent of Buyer, or as required
under the Nevada Law, Seller will not voluntarily make any payment with respect to, or settle or offer to settle, any such purchase
demand. Each holder of Seller Dissenting Shares (a “Seller Dissenting Stockholder”) who, pursuant to the provisions
of the Nevada Law, becomes entitled to payment of the fair value for shares of Seller Common Stock will receive payment therefor
(but only after the value therefor has been agreed on or finally determined pursuant to such provisions). If, after the Effective
Time, Seller Dissenting Shares held by any Stockholder of Seller lose their status as Seller Dissenting Shares, then Buyer will
issue and deliver, upon surrender by such Stockholder of Seller of a certificate or certificates representing shares of Seller
Common Stock, the number of shares of Buyer Common Stock to which such Stockholder of Seller otherwise would be entitled under
this ARTICLE I.

 

(e)         Certificate Legends. The shares of Buyer Common Stock to be issued pursuant to this ARTICLE I will not be
registered and will be characterized as “restricted securities” under the federal securities laws, and under such laws
such shares may be resold without registration under the Securities Act only in certain limited circumstances. Each certificate
evidencing shares of Buyer Common Stock to be issued pursuant to this ARTICLE I will bear the following legend:

 

THESE SECURITIES HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY APPLICABLE STATE SECURITIES LAW.
THESE SECURITIES MAY NOT BE SOLD, OFFERED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED EXCEPT (i) PURSUANT TO REGISTRATION UNDER
THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION AND (ii) IN ACCORDANCE WITH THE RESTRICTIONS AND CONDITIONS
SET FORTH IN A STOCKHOLDER CERTIFICATE BY AND BETWEEN THE HOLDER OF THESE SECURITIES AND THE ISSUER. A COPY OF SUCH STOCKHOLDER
CERTIFICATE SHALL BE FURNISHED BY THE ISSUER TO THE HOLDER HEREOF UPON WRITTEN REQUEST. THE ISSUER OF THESE SECURITIES MAY REQUIRE
AN OPINION OF LEGAL COUNSEL, IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE ISSUER, TO THE EFFECT THAT ANY SALE OR TRANSFER
OF THESE SECURITIES WILL BE IN COMPLIANCE WITH THE SECURITIES ACT AND ALL APPLICABLE STATE SECURITIES LAWS.

 

1.3.         Surrender of Certificates.

 

(a)         Exchange Agent. Buyer’s transfer agent and registrar will act as the exchange agent (the “Exchange
Agent”) in the Merger.

 

(b)         Buyer to Provide Buyer Common Stock. Promptly after the Effective Time, Buyer will make available to the Exchange
Agent for exchange in accordance with this ARTICLE I through such reasonable procedures as Buyer may adopt (i) the
shares of Buyer Common Stock issuable pursuant to Sections 1.2(a) and 1.2(b) in exchange for shares of Seller
Common Stock outstanding immediately before the Effective Time.

 

    	4

    	 

    

 

(c)         Exchange Procedures. Promptly after the Effective Time, the Surviving Corporation will cause to be mailed or otherwise
delivered to each holder of record of a certificate or certificates (the “Certificates”) that immediately before
the Effective Time represented outstanding shares of Seller Common Stock, whose shares were converted into the right to receive
shares of Buyer Common Stock pursuant to Sections 1.2(a) and 1.2(b), (i) a letter of transmittal (which
will specify that delivery will be effected, and risk of loss and title to the Certificates will pass, only upon receipt of the
Certificates by the Exchange Agent and will be in such form and have such other provisions as Buyer may reasonably specify) and
(ii) instructions for use in effecting the surrender of the Certificates in exchange for certificates representing shares
of Buyer Common Stock. Upon surrender of a Certificate for cancellation to the Exchange Agent, together with such letter of transmittal,
duly completed and validly executed in accordance with the instructions thereto, the holder of such Certificate will be entitled
to receive in exchange therefor a certificate representing the number of whole shares of Buyer Common Stock that such holder has
the right to receive pursuant to Sections 1.2(a) and 1.2(b), and the Certificate so surrendered will forthwith
be canceled. Until so surrendered, each outstanding Certificate that, before the Effective Time, represented shares of Seller Common
Stock will be deemed from and after the Effective Time, for all corporate purposes, other than the payment of dividends, to evidence
the ownership of the number of full shares of Buyer Common Stock into which such shares of Seller Common Stock will have been so
converted in accordance with Sections 1.2(a) and 1.2(b).

 

(d)         Distributions With Respect to Unexchanged Shares. No dividends or other distributions with respect to Buyer Common
Stock with a record date after the Effective Time will be paid to the holder of any unsurrendered Certificate with respect to the
shares of Buyer Common Stock represented thereby until the holder of record of such Certificate has surrendered such Certificate.
Subject to applicable Law, following surrender of any such Certificate, there will be paid to the record holder of the certificates
representing whole shares of Buyer Common Stock issued in exchange therefor, without interest at the time of such surrender, the
amount of any such dividend or other distribution with a record date after the Effective Time theretofore payable (but for the
provisions of this Section 1.3(d)) with respect to such shares of Buyer Common Stock.

 

(e)         Transfer of Ownership. If any certificate for shares of Buyer Common Stock is to be issued in a name other than that
in which the Certificate surrendered in exchange therefor is registered, then it will be a condition of the issuance thereof that
the Certificate so surrendered will be properly endorsed and otherwise in proper form for transfer and that the Person requesting
such exchange will have paid to Buyer or any agent designated by Buyer all transfer or other taxes required by reason of the issuance
of a certificate for shares of Buyer Common Stock in any name other than that of the registered holder of the Certificate surrendered
or established to the satisfaction of Buyer or any agent designated by Buyer that such tax has been paid or is not payable.

 

(f)         Termination of Exchange. Any portion of the shares of Buyer Common Stock that remains undistributed to the Stockholders
of Seller two (2) years after the Effective Time will be delivered to Buyer, upon demand, and all Stockholders of Seller who have
not complied previously with this Section 1.3 thereafter will look only to Buyer for payment of their claim for shares
of Buyer Common Stock and any dividend or distribution with respect to such shares of Buyer Common Stock.

 

    	5

    	 

    

 

(g)         Seller Dissenting Shares. The provisions of this Section 1.3 also will apply to Seller Dissenting Shares
that lose their status as such, except that the obligations of Buyer under this Section 1.3 will commence on the date
of loss of such status, and the holder of such shares will be entitled to receive in exchange for such shares the number of shares
of Buyer Common Stock to which such holder is entitled pursuant to Section 1.2.

 

1.4.         No Further Ownership Rights in Seller Common Stock. All shares of Buyer Common Stock issued upon the surrender for
exchange of shares of Seller Common Stock in accordance with the terms of this Agreement will be deemed to have been issued in
full satisfaction of all rights pertaining to such shares of Seller Common Stock, and there will be no further registration of
transfers on the records of the Surviving Corporation of shares of Seller Common Stock that were outstanding immediately before
the Effective Time. If, after the Effective Time, Certificates are presented to the Surviving Corporation for any reason, they
will be canceled and exchanged as provided in this ARTICLE I.

 

1.5.         Lost, Stolen or Destroyed Certificates. In the event Certificates have been lost, stolen or destroyed, the Exchange
Agent will issue in exchange for such lost, stolen or destroyed Certificates, upon the making of an affidavit of that fact by the
holder thereof, such shares of Buyer Common Stock as may be required pursuant to Section 1.3; provided, however,
that Buyer, in its discretion and as a condition precedent to the issuance thereof, may require the owner of such lost, stolen
or destroyed Certificates to deliver a bond in such sum as Buyer may reasonably direct as indemnity against any claim that may
be made against Buyer, the Surviving Corporation or the Exchange Agent with respect to the Certificates alleged to have been lost,
stolen or destroyed.

 

1.6.         Tax Consequences. The parties intend that the Merger will constitute a reorganization within the meaning of Section
368(a) of the Code.

 

1.7.         Taking of Necessary Action; Further Action. If at any time after the Effective Time any further action is necessary
or desirable to carry out the purposes of this Agreement, then the officers and directors of Buyer and Seller are fully authorized
in the name of their respective corporations or otherwise to take, and will take, all such lawful and necessary action, so long
as such action is not inconsistent with this Agreement.

 

ARTICLE II

REPRESENTATIONS AND WARRANTIES OF SELLER

 

Seller hereby represents
and warrants to Buyer that the statements contained in this ARTICLE II are true and correct as of the date of this Agreement
and as of the Effective Time (except for any such representation and warranty that expressly is made as of a specific date, in
which case such representation and warranty shall be true and correct as of such date), subject to such qualifications as are set
forth in the disclosure schedule delivered by Seller to Buyer concurrently with the execution of this Agreement (the “Seller
Disclosure Schedule”). The Seller Disclosure Schedule shall be arranged according to specific Sections in this ARTICLE
II and shall provide exceptions to, or otherwise qualify in reasonable detail, only the corresponding Section in this ARTICLE
II.

 

    	6

    	 

    

 

2.1.         Organization and Related Matters.

 

(a)         Seller is a corporation duly organized, validly existing and in good standing under the law of Ontario, Canada. Seller has
all corporate power, Permits and Approvals necessary to own its properties and assets and to carry on its business as now conducted
and is duly qualified or licensed to do business as a foreign corporation in good standing in all jurisdictions in which the character
or the location of the assets owned or leased by Seller or the nature of the business conducted by Seller requires licensing or
qualification and where the failure to be so licensed or qualified would have a Seller Material Adverse Effect. Section 2.1
of the Seller Disclosure Schedule correctly lists the current directors and executive officers of Seller. Seller is not a registered
or reporting company under the Exchange Act.

 

(b)         Seller has delivered to Buyer true, correct and complete copies of the Organizational Documents of Seller and of the Seller
Subsidiary, as currently in effect.

 

2.2.         Capitalization.

 

(a)         The authorized capital stock of Seller is as set forth under Schedule 2.2 hereof. Currently and at the Closing Date and
immediately before the Effective Time, there will be outstanding only those shares of Seller Capital Stock held by the sole owner
set forth under Schedule 2.2. All outstanding capital stock of Seller has been duly authorized and validly issued and is fully
paid and non-assessable.

 

(b)         As of the date hereof and as of the Closing, Seller has and shall have reserved no capital stock for issuance pursuant to
outstanding options, warrants and rights, and Seller has no stock incentive plan. 

 

(c)         Except as set forth in this Section and in Section 2.2 of the Seller Disclosure Schedule, there are no outstanding
(i) shares of capital stock or voting securities of Seller, (ii) securities of Seller convertible into or exchangeable for shares
of capital stock or voting securities of Seller or (iii) options, warrants, restricted stock, other stock-based compensation awards
or other rights to acquire from Seller or other obligations of Seller to issue any capital stock, voting securities or securities
convertible into or exchangeable for capital stock or voting securities of Seller. There are no outstanding obligations of Seller
to repurchase, redeem or otherwise acquire any of the securities referred to in clauses (i), (ii) or (iii) above in this paragraph.

 

2.3.         Financial Statements.

 

(a)         Seller has delivered to Buyer (a) an unaudited balance sheet of Seller as of March 31, 2014 (the “Seller Interim
Balance Sheet,” and, such date, the “Seller Interim Balance Sheet Date”), (b) unaudited balance sheets
of Seller for the two most recent fiscal years (or since inception if less than two years) and the related audited statements of
operations, changes in stockholder’s equity and cash flow of Seller, together with the audit report thereon of Seller’s
independent certified public accountants (the “Seller Financial Statements”) and Seller will deliver to Buyer
(c) an unaudited balance sheet as of the Closing Date (the “Seller Closing Date Balance Sheet”) and the related
unaudited statement of operations for the period from December 31, 2013 through the Closing Date. Such financial statements and
notes thereto fairly present the financial condition and the results of operations, changes in stockholder’s equity and cash
flow of Seller as at the respective dates of and for the periods referred to in such financial statements, subject in the case
of interim financial statements to normal recurring year-end adjustments (the effect of which will not, individually or in the
aggregate, be materially adverse) and the absence of notes (that, if presented, would not differ materially from those included
in the Seller Interim Balance Sheet).

 

    	7

    	 

    

 

(b)         Except as set forth in Section 2.3 of the Seller Disclosure Schedule, since the Seller Interim Balance Sheet
Date, whether or not in the Ordinary Course of Business, there has not been, occurred or arisen:

 

(i)         any event, occurrence, development or state of circumstances or facts that would, individually or in the aggregate, have
a material adverse effect on the Business;

 

(ii)        any declaration,
setting aside or payment of any dividend or other distribution with respect to any shares of Seller Capital Stock, or any repurchase,
redemption or other acquisition by Seller of any outstanding shares of capital stock or other securities of, or other ownership
interests in, Seller;

 

(iii)       any incurrence,
assumption or guarantee by Seller of any indebtedness for borrowed money;

 

(iv)       any creation or other incurrence by Seller of any Encumbrance on any material asset;

 

(v)         any making of any material loan, advance or capital contribution to or investment in any Person;

 

(vi)        any damage, destruction or other casualty loss (whether or not covered by insurance) affecting the Business;

 

(vii)       any transaction or commitment made, or any Contract entered into by Seller, involving the acquisition or disposition of
any material asset of Seller;

 

(viii)     
(i) any grant of any severance or termination pay to any current or former independent contractor, employee, officer or
director of Seller, (ii) any increase in benefits payable under any existing severance or termination pay policies or
employment Contract to which Seller is party, (iii) the entering into of any employment, deferred compensation or other
similar Contract (or any amendment to any such existing Contract) by Seller with any current or former independent
contractor, director, officer or employee of Seller, (iv) the establishment, adoption or material amendment (except as
required by applicable Law or Legal Requirement) by Seller of any collective bargaining, bonus, profit-sharing, thrift,
pension, retirement, deferred compensation, compensation, stock option, restricted stock or other benefit plan or arrangement
covering any current or former director, officer or employee of Seller or (v) any increase in compensation, bonus or
other benefits payable to any current or former director, officer or employee of Seller;

 

    	8

    	 

    

 

(ix)        amendment to the Organizational Documents of Seller;

 

(x)         payment or increase by Seller of any bonus, salary or other compensation to any independent contractor, stockholder, director,
officer or (except in the Ordinary Course of Business) employee or entry into any employment, severance or similar Contract with
any director, officer or employee; or

 

(xi)        sale (other than sales of inventory in the Ordinary Course of Business), lease or other disposition of any asset or property
of Seller or mortgage, pledge or imposition of any lien or other encumbrance on any material asset or property of Seller, including
the sale, lease or other disposition of any Intellectual Property.

 

2.4.         Absence of Certain Changes or Events. Since the Seller Interim Balance Sheet Date, except as contemplated by or as
disclosed in this Agreement, Seller has conducted its business only in the Ordinary Course of Business, and, since the Seller Interim
Balance Sheet Date, there has not been any Seller Material Adverse Effect.

 

2.5.         Taxes. Except as set forth in Section 2.5 of the Seller Disclosure Schedule:

 

(a)         All Tax Returns required to be filed by or with respect to Seller have been timely filed, and all such Tax Returns are complete
and correct in all material respects. Seller has paid all Taxes that are due from or with respect to Seller for the periods covered
by such Tax Returns and has made all required estimated Tax payments sufficient to avoid penalties for underpayment. The accrual
for Taxes in the Interim Balance Sheet is adequate to cover all unpaid Taxes (whether or not disputed and whether or not due) of
Seller with respect to all taxable periods ending on or before December 31, 2013. Seller has not incurred any Tax after December
31, 2013, except for Taxes incurred in the Ordinary Course of Business.

 

(b)         (i) the Tax Returns referred to in clause (a) above have not been examined by the IRS or other appropriate Governmental
Entity, or the period for assessment of the Taxes in respect of which such Tax Returns were required to be filed has expired, (ii) there
is no audit, examination, suit, investigation or similar proceeding pending or, to the Knowledge of Seller, proposed or threatened
with respect to Taxes of Seller, and, to the Knowledge of Seller, no basis exists therefor; and (iii) there are no outstanding
waivers extending the statutory period of limitation relating to the payment of Taxes due from Seller.

 

(c)         Section 2.6(c) of the Seller Disclosure Schedule sets forth the amount of net operating losses, net capital
losses, foreign Tax credits and investment and other Tax credits of Seller as of the date of the Interim Balance Sheet.

 

(d)         All Taxes that Seller has been required by Law or Legal Requirement to withhold or to collect for payment have been duly
withheld and collected and have been paid or accrued, reserved against and added on the books of Seller. Seller has complied in
all material respects with all information reporting and backup withholding requirements, including maintenance of required records
with respect thereto, in connection with amounts paid or owing to any employee, independent contractor, creditor, stockholder or
other third party.

 

    	9

    	 

    

 

(e)         There are no liens for Taxes on the assets of Seller, except for liens relating to current Taxes not yet due and payable.

 

(f)         All Tax Returns filed by (or that include on a consolidated basis) Seller are true, correct and complete. There is no tax
sharing agreement that will require any payment by Seller after the date of this Agreement. Seller is not, and within the five-year
period preceding the Closing Date has not been, an “S” corporation.

 

2.6.         Contracts; No Defaults.

 

(a)         Section 2.6 of the Seller Disclosure Schedule lists each Contract to which Seller is a party or to which Seller
or any of Seller’s properties is subject or by which any thereof is bound that is deemed a Material Contract under this Agreement.
Unless otherwise so noted in Section 2.6 of the Seller Disclosure Schedule, each such Seller Material Contract was
entered into in the Ordinary Course of Business. Each Seller Material Contract that (a) after the Balance Sheet Date obligates
Seller to pay or receive an amount of $50,000 or more, (b) has an unexpired term as of the date of this Agreement in excess
of one year, (c) represents a Contract upon which the Business is substantially dependent or which otherwise could be material
to the Business, (d) relates to indebtedness for money borrowed or provides for an extension of credit, (e) limits or
restricts the ability of Seller to compete or otherwise to conduct its business in any manner or place, (f) provides for a
guaranty or indemnity by Seller, (g) grants a power of attorney, agency or similar authority to another Person, (h) contains
a right or obligation of any Associate, Affiliate, officer or director of Seller to Seller, (i) is an employment contract,
consulting agreement, stockholder agreement or voting trust or (j) was not made in the Ordinary Course of Business will be
deemed to be a Material Contract and has been identified in Section 2.6 of the Seller Disclosure Schedule. True copies
of the Seller Material Contracts appearing in Section 2.6 of the Seller Disclosure Schedule, including all amendments
and supplements thereto, and a written description of the terms of all oral Seller Material Contracts, have been delivered to Buyer.

 

(b)         Section 2.6 of the Seller Disclosure Schedule lists (under the appropriate subsection) all of the Seller Material
Contracts (if any). In addition (as applicable), Section 2.6(b) of the Seller Disclosure Schedule sets forth reasonably
complete details about such Seller Material Contracts, including the parties to such Seller Material Contracts, the amount of the
remaining commitment of Seller under such Seller Material Contracts and the Seller offices where details relating to the Seller
Material Contracts are located.

 

(c)         Except as set forth in Section 2.6(c) of the Seller Disclosure Schedule, each Seller Material Contract identified
or required to be identified in Section 2.6 of the Seller Disclosure Schedule is in full force and effect and is valid
and enforceable in accordance with its terms.

 

(d)         Each Seller Material Contract is valid and subsisting; Seller has duly performed all of Seller’s obligations thereunder
to the extent that such obligations to perform have accrued; and no breach or default, alleged breach or default, or event that
would (with the passage of time, notice or both) constitute a material breach or default, thereunder by Seller or, to the Knowledge
of Seller, any other party or obligor with respect thereto, has occurred or as a result of this Agreement or performance hereof
will occur. Consummation of the transactions contemplated by this Agreement will not (and will not give any Person a right to)
terminate or modify any right of, or accelerate or augment any obligation of, Seller under any of the Contracts listed in Section 2.6
of the Seller Disclosure Schedule, except as set forth in Section 2.6(e) of the Seller Disclosure Schedule

 

    	10

    	 

    

 

2.7.         Assets; Absence of Liens and Encumbrances. Except as set forth in Section 2.7 of the Seller Disclosure Schedule,
Seller owns, leases or has the legal right to use all of the material assets, properties and rights of every kind, nature, character
and description, including real property and personal property (other than Intellectual Property, which is covered by Section
2.9), used or intended to be used in the conduct of the Seller Business or otherwise owned or leased by Seller and, with respect
to contract rights, is a party to and enjoys the right to the benefits of all Seller Material Contracts used or intended to be
used by Seller in or relating to the conduct of the Seller Business (all such properties, assets and contract rights being the
“Seller Assets”). Seller has good and marketable title to, or, in the case of leased or subleased Seller Assets,
valid and subsisting leasehold interests in, all the Seller Assets, free and clear of all mortgages, liens, pledges, charges, claims,
defects of title, restrictions, infringements, security interests or encumbrances of any kind or character (“Liens”)
except for (x) Liens for current Taxes not yet due and payable and (y) Liens that have arisen in the Ordinary Course of Business
and that do not, individually or in the aggregate, materially detract from the value, or materially interfere with the present
or contemplated use, of the Seller Assets subject thereto or affected thereby.

 

2.8.         No Undisclosed Liabilities. Except as set forth in Section 2.8 of the Seller Disclosure Schedule, Seller
has no liabilities or obligations of any nature (whether known or unknown and whether absolute, accrued, contingent or otherwise)
except for liabilities or obligations reflected or reserved against in the Seller Interim Balance Sheet and current liabilities
incurred in the Ordinary Course of Business since the Seller Interim Balance Sheet Date.

 

2.9.         Intellectual Property. Section 2.9 of the Seller Disclosure Schedule contains a complete and correct list
of (a) all Intellectual Property that is owned by Seller and primarily related to, used in, held for use in connection with
or necessary for the conduct of, or otherwise material to, the Seller Business, (b) all Contracts pursuant to which Seller
has licensed Intellectual Property to, or the use of Intellectual Property otherwise is permitted by, any other Person and (c) all
Contracts pursuant to which Seller has had Intellectual Property licensed to Seller or otherwise has been permitted to use Intellectual
Property.

 

2.10.         Corporate Authorization. Subject to required approval by the Stockholders of Seller, Seller has all requisite corporate
power and authority to execute, deliver and perform each Transaction Document to which it is a party. The execution, delivery and
performance of the Transaction Documents to which Seller is a party have been duly authorized by all necessary corporate action
on the part of Seller, subject only to the approval of the Merger by the Stockholders of Seller as contemplated by Section 6.1(a).
This Agreement constitutes, and the other Transaction Documents to which Seller is a party, when executed by Seller, will constitute,
the valid and binding obligations of Seller, enforceable against Seller in accordance with their respective terms. The affirmative
vote of the holders of a majority of the then-outstanding shares of Seller Common Stock is the only vote of the holders of Seller
Common Stock necessary under the Nevada Law to approve this Agreement and the transactions contemplated hereby. Seller’s
Board of Directors has (a) unanimously approved and adopted this Agreement and the Merger, (b) determined that in its
opinion the Merger is in the best interests of the Stockholders of Seller and is on terms that are fair to the Stockholders of
Seller and (c) recommended that the Stockholders of Seller approve this Agreement and the Merger.

 

    	11

    	 

    

 

2.11.         Authorization. The execution, delivery and performance by Seller of the Transaction Documents to which Seller is
a party and the consummation of the transactions contemplated thereby require no action by or in respect of, or filing with, any
Governmental Entity except for (a) the filing of the Articles of Merger as provided in Section 1.1 and (b) other
filings and Approvals described in Section 2.11 of the Seller Disclosure Schedule (if any).

 

2.12.         Non-Contravention.

 

(a)         The execution, delivery and performance by Seller of the Transaction Documents to which Seller is a party and the consummation
by Seller of the transactions contemplated thereby do not and will not (i) violate the charter documents of Seller, (ii) assuming
compliance with the matters referred to in Section 2.11 of the Seller Disclosure Schedule, violate any applicable Law or
Legal Requirement, (iii) require any consent or other action by any Person under, constitute a default under or give rise
to any right of termination, cancellation or acceleration of any right or obligation of Seller or to a loss of any benefit to which
Seller is entitled under any provision of any Seller Material Contract or any Permit or Approval affecting, or relating in any
way to, the Seller Business or (iv) result in the creation or imposition of any Encumbrance on any asset of Seller or of the
Seller Subsidiary except, in the case of clauses (ii), (iii) and (iv), for such matters as would not, individually or in the
aggregate, have a Seller Material Adverse Effect or materially impair the ability of Seller to consummate the transactions contemplated
by this Agreement.

 

(b)         Except as set forth in Section 2.12 of the Seller Disclosure Schedule, neither the execution and delivery of this
Agreement nor the consummation or performance of any of the transactions contemplated hereby will, directly or indirectly (with
or without notice or lapse of time): (i) contravene, conflict with or result in a violation of (A) any provision of the Organizational
Documents of Seller or (B) any resolution adopted by the Board of Directors or the Stockholders of Seller; (ii) contravene,
conflict with or result in a violation of, or give any Governmental Entity or other Person the right to challenge any of the transactions
contemplated by this Agreement or to exercise any remedy or obtain any relief under, any Legal Requirement or any Order to which
Seller, or any of the assets owned or used by Seller, may be subject; (iii) contravene, conflict with or result in a violation
of any of the terms or requirements of, or give any Governmental Entity the right to revoke, withdraw, suspend, cancel, terminate
or modify, any Governmental Authorization that is held by Seller or that otherwise relates to the business of, or any of the assets
owned or used by, Seller ; (iv) contravene, conflict with or result in a violation or breach of any provision of, or give any Person
the right to declare a default or exercise any remedy under, or to accelerate the maturity or performance of, or to cancel, terminate
or modify, any Seller Contract; or (v) result in the imposition or creation of any Encumbrance on or with respect to any of the
assets owned or used by Seller.

 

    	12

    	 

    

 

2.13.         Legal Proceedings. No Order has been issued and no Action is pending, or, to the Knowledge of Seller, threatened
against or affecting Seller or any of its properties or assets that individually or when aggregated with one or more other Orders
or Actions has or might reasonably be expected to have a Seller Material Adverse Effect or materially impair the ability of Seller
to perform Seller’s obligations under the Transaction Documents or any aspect of the transactions contemplated thereby. There
is no matter as to which Seller has received any notice, claim or assertion, or, to the Knowledge of Seller, that otherwise has
been threatened or is reasonably expected to be threatened or initiated, against or affecting any director, officer, employee,
agent or representative of Seller or any other Person, nor to the Knowledge of Seller is there any reasonable basis therefore,
in connection with which any such Person has or may reasonably be expected to have any right to indemnification by Seller.

 

2.14.         Compliance With Law and Legal Requirements; Governmental Authorizations.

 

(a)         Except as set forth in Section 2.14(a) of the Seller Disclosure Schedule:

 

(i)         Seller is, and at all times since the date of its respective initial incorporation, formation or organization has been,
in full compliance with each Law and Legal Requirement that is or was applicable to it or to the conduct or operation of its business
or the ownership or use of any of its assets;

 

(ii)        no event has occurred or circumstance exists that (with or without notice or lapse of time) (A) may constitute or result
in a violation by Seller of, or a failure on the part of Seller to comply with, any Law or Legal Requirement or (B) may give
rise to any obligation on the part of Seller to undertake, or to bear all or any portion of the cost of, any remedial action of
any nature; and

 

(iii)       Seller has not received, at any time since the date of its respective initial incorporation, formation or organization,
any notice or other communication (whether oral or written) from any Governmental Entity or any other Person regarding (A) any
actual, alleged, possible or potential violation of, or failure to comply with, any Law or Legal Requirement or (B) any actual,
alleged, possible or potential obligation on the part of Seller to undertake, or to bear all or any portion of the cost of, any
remedial action of any nature.

 

(b)         Section 2.14(b) of the Seller Disclosure Schedule contains a complete and accurate list of each Governmental
Authorization that is held by Seller or that otherwise relates to the business of, or to any of the assets owned or used by, Seller.
Each Governmental Authorization listed or required to be listed in Section 2.14(b) of the Seller Disclosure Schedule
is valid and in full force and effect.

 

2.15.         Minute Books. The minute books of Seller accurately reflect all material actions and proceedings taken to date by
the Stockholders of Seller, the Board of Directors of Seller and committees thereof, and such minute books contain true and complete
copies of the charter documents of Seller and all related amendments. The stock record book of Seller reflects accurately all transactions
in Seller’s capital stock of all classes.

 

2.16.         Due Diligence Materials. All documents, agreements and other materials provided by Seller to Buyer or any representative
of Buyer in connection with the due diligence conducted in connection with the transactions contemplated by this Agreement have
been true, correct and complete originals or copies of the documents, agreements and other materials purported to be provided or
to which access has been given.

 

    	13

    	 

    

 

2.17.         Tax Matters. Neither Seller nor any of Seller’s Affiliates has taken or agreed to take any action that would
prevent the Merger from constituting a reorganization qualifying under Section 368(a) of the Code. Seller is not aware of any agreement,
plan or other circumstance that would prevent the Merger from qualifying as a reorganization under Section 368(a) of the Code.

 

2.18.         Disclosure.

 

(a)         No representation or warranty of Seller in this Agreement and no statement in the Seller Disclosure Schedule omits to state
a material fact necessary to make the statements herein or therein, in light of the circumstances in which they were made, not
misleading.

 

(b)         No notice given pursuant to Section Error! Reference source not found. will contain any untrue statement
or omit to state a material fact necessary to make the statements therein or in this Agreement, in light of the circumstances in
which they were made, not misleading.

 

2.19.         Brokers Or Finders. No Brokers have been involved on behalf of Seller in this Agreement and the contemplated transactions.

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF BUYER

 

Buyer hereby represents
and warrants to Seller and the Stockholders of Seller that the statements contained in this ARTICLE III are true and correct
as of the date of this Agreement and as of the Effective Time (except for any such representation and warranty that expressly is
made as of a specific date, in which case such representation and warranty shall be true and correct as of such date), subject
to such qualifications as are set forth in the disclosure schedule delivered by Buyer to Seller concurrently with the execution
of this Agreement (the “Buyer Disclosure Schedule”). The Buyer Disclosure Schedule shall be arranged according
to specific Sections in this ARTICLE III and shall provide exceptions to, or otherwise qualify in reasonable detail, only
the corresponding Section in this ARTICLE III.

 

3.1.         Organization and Related Matters.

 

(a)         Buyer is a corporation duly organized, validly existing and in good standing under the Nevada Law. Buyer has all corporate
power, Permits and Approvals necessary to own its properties and assets and to carry on its business as now conducted and is duly
qualified or licensed to do business as a foreign corporation in good standing in all jurisdictions in which the character or the
location of the assets owned or leased by Buyer or the nature of the business conducted by Buyer requires licensing or qualification
and where the failure to be so licensed or qualified would have a Buyer Material Adverse Effect. Section 3.1(a) of
the Buyer Disclosure Schedule correctly lists the current directors and executive officers of Buyer. Buyer is a registered or reporting
company under the Exchange Act.

 

    	14

    	 

    

 

(b)         Buyer has delivered to Seller, or publicly disclosed in its filings with the SEC, true, correct and complete copies of the
Organizational Documents of Buyer, as currently in effect.

 

3.2.         Capitalization.

 

(a)         The authorized capital stock of Buyer consists of 2,000,000,000 shares of Common Stock, par value $0.001 (the “Common
Stock”) and 100,000,000 shares of preferred stock, par value $0.001 per share (the “Preferred Stock”). On the
date of this Agreement, there are outstanding approximately 1,222,366,295 shares of Buyer Common Stock, which number the Buyer
anticipates will continue to increase as Buyer settles outstanding obligations prior to the Closing. On the date of this Agreement,
no shares of preferred stock are outstanding. All outstanding shares of Buyer Common Stock have been duly authorized and validly
issued and are fully paid and non-assessable.

 

(b)         The only stock incentive plan, stock option plan or any other similar plan or arrangement currently in effect is Buyer’s
2007 Stock Option Plan.

 

(c)         Except as set forth in this Section and in Section 3.2 of the Buyer Disclosure Schedule, there are no outstanding
(i) shares of capital stock or voting securities of Buyer, (ii) securities of Buyer convertible into or exchangeable for shares
of capital stock or voting securities of Buyer or (iii) options, warrants, restricted stock, other stock-based compensation awards
or other rights to acquire from Buyer or other obligations of Buyer to issue any capital stock, voting securities or securities
convertible into or exchangeable for capital stock or voting securities of Buyer. There are no outstanding obligations of Buyer
to repurchase, redeem or otherwise acquire any securities referred to in clauses (i), (ii) or (iii) above in this paragraph.

 

3.3.         Financial Statements.

 

(a)         Buyer has delivered
to Seller (a) an unaudited consolidated balance sheet of Buyer as of March 31, 2014 (the “Buyer Interim Balance Sheet,”
and, such date, the “Buyer Interim Balance Sheet Date”) (b) audited consolidated balance sheets of Buyer
as of December 31, 2013 and 2012 and the related unaudited income statements, statements of operations, cash flows, for the years
then ended, 2013 and 2012. Such financial statements and notes thereto fairly present the financial condition and the results
of operations, changes in stockholder’s equity and cash flow of Buyer as at the respective dates of and for the periods
referred to in such financial statements, all in accordance with GAAP, subject in the case of interim financial statements to
normal recurring year-end adjustments (the effect of which will not, individually or in the aggregate, be materially adverse)
and the absence of notes (that, if presented, would not differ materially from those included in the Buyer Interim Balance Sheet).
The financial statements referred to in this Section 3.3 reflect the consistent application of such accounting principles
throughout the periods involved. No financial statements of any other Person are required by GAAP to be included in the financial
statements of Buyer. All of the foregoing financial statements are referred to collectively in this Agreement as the “Buyer
Financial Statements.”

 

    	15

    	 

    

 

(b)         Except as set forth in Section 3.3 of the Buyer Disclosure Schedule, since the Buyer Interim Balance Sheet
Date, whether or not in the Ordinary Course of Business, there has not been, occurred or arisen:

 

(i)         any event, occurrence, development or state of circumstances or facts that would, individually or in the aggregate, have
a material adverse effect on the Business;

 

(ii)        any declaration, setting aside or payment of any dividend or other distribution with respect to any shares of Buyer Capital
Stock, or any repurchase, redemption or other acquisition by Buyer of any outstanding shares of capital stock or other securities
of, or other ownership interests in, Buyer;

 

(iii)       any incurrence, assumption or guarantee by Buyer of any indebtedness for borrowed money;

 

(iv)       any creation or other incurrence by Buyer of any Encumbrance on any material asset;

 

(v)         any making of any material loan, advance or capital contribution to or investment in any Person;

 

(vi)        any damage, destruction or other casualty loss (whether or not covered by insurance) affecting the Business;

 

(vii)       any
transaction or commitment made, or any Contract entered into by Buyer, involving the acquisition or disposition of any material
asset of Buyer;

 

(viii)      amendment
to the Organizational Documents of Buyer;

 

(ix)         payment or increase by Buyer of any bonus, salary or other compensation to any independent contractor, stockholder, director,
officer or (except in the Ordinary Course of Business) employee or entry into any employment, severance or similar Contract with
any director, officer or employee;

 

(x)         entry into, termination of or receipt of notice of termination by Buyer of (i) any license, distributorship, dealer,
sales representative, joint venture, credit or similar agreement or (ii) any Contract or transaction involving a total remaining
commitment by or to Buyer of at least $10,000; or

 

(xi)        sale (other than sales of inventory in the Ordinary Course of Business), lease or other disposition of any asset or property
of Buyer or mortgage, pledge or imposition of any lien or other encumbrance on any material asset or property of Buyer, including
the sale, lease or other disposition of any Intellectual Property.

 

3.4.         Absence of Certain Changes or Events. Since the Buyer Interim Balance Sheet Date, except as contemplated by or as
disclosed in this Agreement, Buyer has conducted its business only in the Ordinary Course of Business, and, since the Buyer Interim
Balance Sheet Date, there has not been any Buyer Material Adverse Effect.

 

    	16

    	 

    

 

3.5.         Taxes. Except as set forth in Section 3.5 of the Buyer Disclosure Schedule:

 

(a)         All Tax Returns required to be filed by or with respect to Buyer have been timely filed, and all such Tax Returns are complete
and correct in all material respects. Buyer has paid all Taxes that are due from or with respect to Buyer for the periods covered
by such Tax Returns and has made all required estimated Tax payments sufficient to avoid penalties for underpayment. The accrual
for Taxes in the Interim Balance Sheet is adequate to cover all unpaid Taxes (whether or not disputed and whether or not due) of
Buyer with respect to all taxable periods ending on or before December 31, 2013. Buyer has not incurred any Tax after December
31, 2013, except for Taxes incurred in the Ordinary Course of Business.

 

(b)         (i) the Tax Returns referred to in clause (a) above have not been examined by the IRS or other appropriate Governmental
Entity, or the period for assessment of the Taxes in respect of which such Tax Returns were required to be filed has expired, (ii) there
is no audit, examination, suit, investigation or similar proceeding pending or, to the Knowledge of Buyer, proposed or threatened
with respect to Taxes of Buyer, and, to the Knowledge of Buyer, no basis exists therefor; and (iii) there are no outstanding
waivers extending the statutory period of limitation relating to the payment of Taxes due from Buyer.

 

(c)         Section 3.5(c) of the Buyer Disclosure Schedule sets forth the amount of net operating losses, net capital losses,
foreign Tax credits and investment and other Tax credits of Buyer as of the date of the Interim Balance Sheet.

 

(d)         All Taxes that Buyer has been required by Law or Legal Requirement to withhold or to collect for payment have been duly
withheld and collected and have been paid or accrued, reserved against and added on the books of Buyer. Buyer has complied in all
material respects with all information reporting and backup withholding requirements, including maintenance of required records
with respect thereto, in connection with amounts paid or owing to any employee, independent contractor, creditor, stockholder or
other third party.

 

(e)         There are no liens for Taxes on the assets of Buyer, except for liens relating to current Taxes not yet due and payable.

 

(f)         All Tax Returns filed by (or that include on a consolidated basis) Buyer are true, correct and complete. There is no tax
sharing agreement that will require any payment by Buyer after the date of this Agreement. Buyer is not, and within the five-year
period preceding the Closing Date has not been, an “S” corporation.

 

3.6.         Contracts.

 

(a)         Section 3.6(a) of the Buyer Disclosure Schedule lists (under the appropriate subsection) all of the Buyer Material
Contracts (if any) which have not been publicly filed with the SEC.

 

(b)         Except as set forth in Section 3.6(b) of the Buyer Disclosure Schedule, each Buyer Material Contract identified or
required to be identified in Section 3.6(a) of the Buyer Disclosure Schedule is in full force and effect and is valid and
enforceable in accordance with its terms.

 

    	17

    	 

    

 

3.7.         Title To Property; Encumbrances Section 3.7 of the Buyer Disclosure Schedule contains a complete and
accurate list of all real property, leaseholds or other interests therein owned by Buyer or any Buyer Subsidiary. Buyer has delivered
or made available to Seller copies of the deeds and other instruments (as recorded) by which Buyer acquired such real property
and interests, and copies of all title insurance policies, opinions, abstracts and surveys in the possession of Buyer and relating
to such property or interests. Buyer does not own any real property.

 

3.8         No Undisclosed
Liabilities. Except as set forth in Section 3.8 of the Buyer Disclosure Schedule, Buyer has no liabilities or obligations
of any nature (whether known or unknown and whether absolute, accrued, contingent or otherwise) except for liabilities or obligations
reflected or reserved against in the Buyer Interim Balance Sheet and current liabilities incurred in the Ordinary Course of Business
since the Buyer Interim Balance Sheet Date. Prior to the Closing Date, Buyer will pay or otherwise satisfy and discharge any and
all liabilities unless otherwise agreed by Seller in writing.

 

3.9         Corporate
Authorization. Subject to required approval by the Stockholders of Buyer, Buyer has all necessary corporate power and authority
to execute, deliver and perform each Transaction Document to which it is a party. The execution, delivery and performance of the
Transaction Documents to which Buyer is a party have been duly authorized by all necessary corporate action on the part of Buyer,
subject only to the approval of the Merger by the Stockholders of Buyer as contemplated by Section 6.1(a). This Agreement
constitutes, and the other Transaction Documents to which Buyer is a party, when executed by Buyer, will constitute, the valid
and binding obligations of Buyer, enforceable against Buyer in accordance with their respective terms. The affirmative vote of
the holders of a majority of the shares of Buyer Common Stock is the only vote of the holders of any Smart Data capital stock necessary
under the Nevada Law to approve this Agreement and the transactions contemplated hereby. Buyer’s Board of Directors has (a) unanimously
approved and adopted this Agreement and the Merger, (b) determined that in its opinion the Merger is in the best interests
of the Stockholders of Buyer and is on terms that are fair to the Stockholders of Buyer and (c) recommended that the Stockholders
of Buyer approve this Agreement and the Merger.

 

3.10         Authorization.
The execution, delivery and performance by Buyer of the Transaction Documents to which Buyer is a party and the consummation of
the transactions contemplated thereby require no action by or in respect of, or filing with, any Governmental Entity except for
(a) the filing of the Articles of Merger as provided in Section 1.1, (b) filings required under the Securities Act
(as applicable), under the Exchange Act and under applicable state Blue Sky Laws and (c) other filings and Approvals described
in Section 3.13 of the Buyer Disclosure Schedule (if any).

 

3.11         Non-Contravention.

 

(a)         The execution, delivery and performance by Buyer of the Transaction Documents to which Buyer is a party and the consummation
by Buyer of the transactions contemplated thereby do not and will not (i) violate the Articles of Incorporation or Bylaws
of Buyer, (ii) assuming compliance with the matters referred to in Section 0 of the Buyer Disclosure Schedule, violate any
applicable Law, (iii) except for the approval of the Stockholders of Buyer, require any consent or other action by any Person
under, constitute a default under or give rise to any right of termination, cancellation or acceleration of any right or obligation
of Buyer or to a loss of any benefit to which Buyer is entitled under any provision of any Contract binding on Buyer or any Permit
or Approval affecting, or relating in any way to, the assets or business of Buyer or (iv) result in the creation or imposition
of any Encumbrance on any material asset of Buyer except, in the case of clauses (ii), (iii) and (iv), for such matters as
would not, individually or in the aggregate, have a Buyer Material Adverse Effect or materially impair the ability of Buyer to
consummate the transactions contemplated by this Agreement.

 

    	18

    	 

    

 

(b)         Except
as set forth in 3.11(b) of the Buyer Disclosure Schedule, neither the execution and delivery of this Agreement nor the
consummation or performance of any of the transactions contemplated hereby will, directly or indirectly (with or without
notice or lapse of time): (i) contravene, conflict with or result in a violation of (A) any provision of the Organizational
Documents of Buyer or (B) any resolution adopted by the Board of Directors or the Stockholders of Buyer; (ii) contravene,
conflict with or result in a violation of, or give any Governmental Entity or other Person the right to challenge any of the
transactions contemplated by this Agreement or to exercise any remedy or obtain any relief under, any Legal Requirement or
any Order to which the Buyer, or any of the assets owned or used by Buyer, may be subject; (iii) contravene, conflict with or
result in a violation of any of the terms or requirements of, or give any Governmental Entity the right to revoke, withdraw,
suspend, cancel, terminate or modify, any Governmental Authorization that is held by Buyer or that otherwise relates to the
business of, or any of the assets owned or used by, Buyer; (iv) contravene, conflict with or result in a violation or breach
of any provision of, or give any Person the right to declare a default or exercise any remedy under, or to accelerate the
maturity or performance of, or to cancel, terminate or modify, any Buyer Contract; or (v) result in the imposition or
creation of any Encumbrance on or with respect to any of the assets owned or used by Buyer.

 

3.12-3.14.
[Intentionally Omitted]

 

3.15.         Legal Proceedings. No Order has been issued and no Action is pending, or, to the Knowledge of Buyer, threatened against
or affecting Buyer or any of Buyer’s properties or assets that individually or when aggregated with one or more other Orders
or Actions has or might reasonably be expected to have a Buyer Material Adverse Effect or materially impair the ability of Buyer
to perform Buyer’s obligations under the Transaction Documents or any aspect of the transactions contemplated thereby. Section 3.15
of the Buyer Disclosure Schedule lists each Order or Action that involves a claim or threatened claim of aggregate liability
in excess of $25,000 against, or that enjoins or compels or seeks to enjoin or to compel any activity by, Buyer. There is no matter
as to which Buyer has received any notice, claim or assertion, or, to the Knowledge of Buyer, that otherwise has been threatened
or is reasonably expected to be threatened or initiated, against or affecting any director, officer, employee, agent or representative
of Buyer, Buyer or any other Person, nor to the Knowledge of Buyer is there any reasonable basis therefor, in connection with which
any such Person has or may reasonably be expected to have any right to indemnification by Buyer.

 

3.16.         Compliance With Law; Governmental Authorizations.

 

(a)         Except as set forth in Section 3.16(a) of the Buyer Disclosure Schedule:

 

(i)         Buyer is, and at all times since the date of its initial incorporation has been, in full compliance with each Law and Legal
Requirement that is or was applicable to it or to the conduct or operation of its business or the ownership or use of any of its
assets;

 

    	19

    	 

    

 

(ii)         no event has occurred or circumstance exists that (with or without notice or lapse of time) (A) may constitute or result
in a violation by Buyer of, or a failure on the part of Buyer to comply with, any Law or Legal Requirement or (B) may give
rise to any obligation on the part of Buyer to undertake, or to bear all or any portion of the cost of, any remedial action of
any nature; and

 

(iii)         Buyer has not received, at any time since the date of its initial incorporation, any notice or other communication (whether
oral or written) from any Governmental Entity or any other Person regarding (A) any actual, alleged, possible or potential
violation of, or failure to comply with, any Law or Legal Requirement or (B) any actual, alleged, possible or potential obligation
on the part of Buyer to undertake, or to bear all or any portion of the cost of, any remedial action of any nature.

 

(b)         Section 3.16(b) of the Buyer Disclosure Schedule contains a complete and accurate list of each Governmental
Authorization that is held by Buyer or that otherwise relates to the business of, or to any of the assets owned or used by, Buyer.
Each Governmental Authorization listed or required to be listed in Section 3.16(b) of the Buyer Disclosure Schedule
is valid and in full force and effect.

 

3.17.         Employees.
Buyer has no employee disputes existing, or to Buyer’s Knowledge, threatened, involving strikes, work stoppages,
slow downs or lockouts.

 

3.18.         Employee Benefits.

 

(a)         Buyer has
no ERISA Affiliates. Buyer has no employee benefit plan, whether written or unwritten, to which Buyer is or during the last three
years has been a party or by which any of them is or during the last three years has been bound, legally or otherwise, including
(i) any profit-sharing, deferred compensation, bonus, stock option, stock purchase, pension, retainer, consulting, retirement,
severance, welfare or incentive plan, agreement or arrangement, (ii) any plan, agreement or arrangement providing for “fringe
benefits” or perquisites to employees, officers, directors or agents, including but not limited to benefits relating to company
automobiles, clubs, vacation, child care, parenting, sabbatical, sick leave, medical, dental, hospitalization, life insurance and
other types of insurance or (iii) any other “employee benefit plan” (within the meaning of Section 3(3) of
ERISA).

 

(i)         The consummation, announcement or other action relating to the transactions contemplated by this Agreement will not (either
alone or upon the occurrence of any additional or further acts or events) result in any (i) payment (whether of severance
pay or otherwise) becoming due from Buyer to any officer, employee, former employee, director or former director thereof or to
the trustee under any “rabbi trust” or similar arrangement or (ii) benefit under any such plan or arrangement
being established, accelerated, vested or payable.

 

3.19.         Environmental Law Compliance. There are no pending or, to Buyer’s Knowledge, threatened claims, suits or proceedings
arising out of or related to any noncompliance with any Environmental Laws in connection with the Business. Buyer has complied
and is in compliance with all Laws applicable to the Business relating to environmental protection, including standards relating
to air, water, land and the generation, storage. transportation, treatment or disposal of, Hazardous Substances (collectively,
“Environmental Laws”), except where non-compliance with any such Laws would not have a material adverse effect
on the Business.

 

    	20

    	 

    

 

3.20.         Related Party Transactions. Except as set forth in Section 3.20 of the Buyer Disclosure Schedule or as
otherwise disclosed in the Notes to the Buyer Financial Statements, no director or officer of Buyer and no Person related to any
of them by consanguinity or marriage has any direct or indirect interest in (i) any equipment or other property, real or personal,
tangible or intangible, including any item of intellectual property, used in connection with or pertaining to the Business, or
(ii) any creditor, supplier, customer, manufacturer, agent, representative, or distributor of products of Buyer; provided,
however, that (A) no such director or officer or other Person will be deemed to have such an interest solely by virtue of
the ownership of less than 5% of the outstanding voting stock or debt securities of any publicly held company, the stock or debt
securities of which are traded on a recognized stock exchange or quoted on the National Association of Securities Dealers Automated
Quotation System, and (B) no such director or officer or other Person will be deemed to have such an interest solely by virtue
of the ownership by a partnership in which he is a partner of less than 5% of the outstanding voting stock or debt securities of
any privately held company.

 

3.21.         Due Diligence Materials. All documents, agreements and other materials provided by Buyer to Seller or any representative
of Seller in connection with the due diligence conducted in connection with the transactions contemplated by this Agreement have
been true, correct and complete originals or copies of the documents, agreements and other materials purported to be provided or
to which access has been given. 

 

3.22.         Tax Matters. Neither Buyer nor any of Buyer’s Affiliates has taken or agreed to take any action that would
prevent the Merger from constituting a reorganization qualifying under Section 368(a) of the Code. Buyer is not aware of any agreement,
plan or other circumstance that would prevent the Merger from qualifying as a reorganization under Section 368(a) of the Code.

 

3.23.         Disclosure. 

 

(a)         No representation or warranty of Buyer in this Agreement and no statement in the Buyer Disclosure Schedule omits to state
a material fact necessary to make the statements herein or therein, in light of the circumstances in which they were made, not
misleading.

 

(b)         No notice given pursuant to Section 3.23(b) will contain any untrue statement or omit to state a material fact necessary
to make the statements therein or in this Agreement, in light of the circumstances in which they were made, not misleading.

 

3.24.         No Brokers Or Finders. No agent, broker, finder, investment or commercial banker or other Person or firm engaged
by or acting on behalf of Buyer or any of its Affiliates or any agent of Buyer or any of its Affiliates in connection with the
negotiation, execution or performance of this Agreement or the transactions contemplated by this Agreement is or will be entitled
to any broker’s or finder’s or similar fee or other commission as a result of this Agreement or such transactions.

 

    	21

    	 

    

 

3.25.         SEC Documents. Except as set forth in Section 3.25 of the Buyer Disclosure Schedule or disclosed herein,
Buyer has filed, or will file prior to the Closing Date, all Buyer SEC Documents required to be filed by Buyer before the date
of this Agreement and before the Effective Time. On April 16, 2014, Buyer filed a comprehensive Annual Report on Form 10-K covering
the fiscal years ended December 31, 2010, 2011 and 2012 and the quarterly periods with respect to each of 2011 and 2012 (the “Comprehensive
2012 Form 10-K”) as part of its efforts to become current in its filing obligations under the Securities Exchange Act of
1934, as amended (the “Exchange Act”). Although the Buyer has regularly made filings through Current Reports on Form
8-K when deemed appropriate, the Comprehensive Form 10-K was the Buyer’s first annual periodic filing with the SEC since
the filing of its Annual Report on Form 10-K for the year ended December 31, 2009. Included in the Comprehensive 2012 Form 10-K
are the Buyer’s unaudited financial statements for the fiscal years ended December 31, 2010, 2011 and 2012, which were not
been previously filed with the SEC. On May 12, 2014, Buyer filed an annual report on Form 10-K with respect to the year ended December
31, 2013 and on May 15, 2014, Buyer filed a Quarterly Report on Form 10-Q for the quarter ended March 31, 2014 (collectively and
together with the Comprehensive 2012 Form 10-K, the “Buyer Periodic Reports”). Except to the extent that information
contained in any Buyer Periodic Reports has been revised or superseded by a later-filed Buyer SEC Document, filed and publicly
available before the date of this Agreement or before the Effective Time, none of the Buyer Periodic Reports contains any untrue
statement of a material fact or omits to state any material fact required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances under which they were made, not misleading.

 

ARTICLE IV

CONDUCT BEFORE CLOSING

 

4.1.         Conduct of Seller. Except as provided in the Transaction Documents, from the date of this Agreement until the Effective
Time, except with the prior written consent of Buyer, Seller will conduct its business in the Ordinary Course of Business consistent
with past practice, and will use its commercially reasonable best efforts to preserve intact its business organization and relationships
with third parties and to keep available the services of its current officers and employees.

 

4.2.         Conduct of Buyer. Except as provided in the Transaction Documents, from the date of this Agreement until the Effective
Time, except with the prior written consent of Seller, Buyer will conduct its business in the Ordinary Course of Business consistent
with past practice and will use its commercially reasonable best efforts to preserve intact its business organization and relationships
with third parties and to keep available the services of its current officer and director.

 

4.3.         No Solicitation of Seller Competing Transactions. Seller will and will direct and use commercially reasonable best
efforts to cause its officers, directors, employees, agents and representatives (including any investment banker, attorney, financial
advisor or accountant retained by Seller) not to initiate, solicit or knowingly encourage, directly or indirectly (including by
way of furnishing non-public information or assistance), or take any other action to facilitate knowingly, any inquiry or the making
of any proposal that constitutes, or reasonably may be expected to lead to, any Seller Competing Transaction, or enter into or
continue discussions or negotiations with any Person in furtherance of such inquiries or to obtain a Seller Competing Transaction,
or agree to or endorse any Seller Competing Transaction, or authorize any of its officers, directors or employees or any investment
banker, financial advisor, attorney, accountant or other representative retained by Seller to take any such action, and Seller
will notify Buyer of all inquiries or proposals that Seller may receive relating to any of such matters and, if such inquiry or
proposal is in writing, will deliver to Buyer a copy of such inquiry or proposal.

 

    	22

    	 

    

 

4.4.         No Solicitation of Buyer Competing Transactions. Buyer will and will direct and use commercially reasonable best
efforts to cause its officers, directors, employees, agents and representatives (including any investment banker, attorney, financial
advisor or accountant retained by Buyer) not to initiate, solicit or knowingly encourage, directly or indirectly (including by
way of furnishing non-public information or assistance), or take any other action to facilitate knowingly, any inquiry or the making
of any proposal that constitutes, or reasonably may be expected to lead to, any Buyer Competing Transaction, or enter into or continue
discussions or negotiations with any Person in furtherance of such inquiries or to obtain a Buyer Competing Transaction, or agree
to or endorse any Buyer Competing Transaction, or authorize any of its officers, directors or employees or any investment banker,
financial advisor, attorney, accountant or other representative retained by Buyer to take any such action, and Buyer will notify
Seller of all inquiries or proposals that Buyer may receive relating to any of such matters and, if such inquiry or proposal is
in writing, will deliver to Seller a copy of such inquiry or proposal.

 

ARTICLE V

ADDITIONAL AGREEMENTS

 

5.1.         Access.

 

(a)         Seller will make available for inspection by Buyer and its representatives, during normal business hours and in a manner
so as not to interfere with normal business operations, all of Seller’s records, premises, Contracts and all other documents
in Seller’s possession or control that are reasonably requested by Buyer and its representatives to inspect and examine the
business and affairs of Seller and any of the Seller Subsidiaries. Seller will cause its managerial employees, legal counsel and
regular independent accountants to be available upon reasonable advance notice to answer questions of Buyer and Buyer’s representatives
about the business and affairs of Seller and the Seller Subsidiary. No examination by Buyer and its representatives will constitute
a waiver or relinquishment by Buyer of its rights to rely on Seller’s covenants, representations and warranties made herein
or pursuant hereto.

 

(b)         Buyer will make available for inspection by Seller and its representatives, during normal business hours and in a manner
so as not to interfere with normal business operations, those of Buyer’s records, premises, Contracts and all other documents
in Buyer’s possession or control that are reasonably requested by Seller and its representatives to inspect and examine the
business and affairs of Buyer Common Stock or the Buyer Preferred Stock (as applicable). Buyer will cause its managerial employees,
legal counsel and regular independent accountants to be available upon reasonable advance notice to answer questions of Seller
and Seller’s representatives about the business and affairs of Buyer. No examination by Seller and its representatives will
constitute a waiver or relinquishment by Seller of its rights to rely on Buyer’s covenants, representations and warranties
made herein or pursuant hereto.

 

    	23

    	 

    

 

5.2.         Due Diligence.

 

(a)         Seller covenants and agrees to all of the terms and provisions set forth in this Section 5.2(a). Between the date
of this Agreement and the Effective Time, in addition to Buyer’s rights provided by Section 5.1(a), Buyer, acting
through Buyer’s own personnel, legal counsel, accountants and other representatives and agents, shall have the full right
to (a) examine the offices, properties, equipment, invoices, customer records, agreement books and records of Seller and of the
Seller Subsidiary, (b) meet and discuss the Seller Business and the operations, history and prospects of the Seller Business with
representatives and employees of Seller and the Seller Subsidiary and (c) otherwise perform such due diligence review of Seller,
the Seller Subsidiary and the Seller Business as Buyer in its sole and absolute discretion deems necessary or appropriate, including
a due diligence review of the Contracts, assets, rights, liabilities and Intellectual Property of Seller . Buyer’s representatives
and agents, with the assistance of Seller’s personnel and the personnel of the Seller Subsidiary, will prepare an inventory
of all assets and other Intellectual Property of Seller and the Seller Subsidiary. Seller shall promptly provide to Buyer copies
of all documents related to the Seller Business that Buyer reasonably requests. Buyer and Buyer’s representatives and agents
shall be permitted to meet with representatives and employees of Seller individually and as a group. The due diligence review by
Buyer will be at Buyer’s sole expense, except that Seller shall make Seller’s and the Seller Subsidiary’s employees,
representatives, officers and accountants available to Buyer without charge and shall provide copies of documents to Buyer without
charge. If the results of such due diligence review or meetings are not entirely satisfactory or acceptable to Buyer for any reason
whatsoever, as determined by Buyer in Buyer’s reasonable discretion, then, notwithstanding any other term or provision of
this Agreement, Buyer will have no duty or obligation of any kind or nature whatsoever to proceed with or to consummate any of
the transactions contemplated by this Agreement, including the Merger, or to negotiate revised terms, provisions or conditions
for any of the transactions contemplated by this Agreement, including the Merger, and Buyer may terminate this Agreement without
payment of any damages or penalty.

 

(b)         Buyer covenants and agrees to all of the terms and provisions set forth in this Section 5.2(b). Between the date
of this Agreement and the Effective Time, in addition to Seller’s rights provided by Section 5.1(b), Seller, acting
through Seller’s own personnel, legal counsel, accountants and other representatives and agents, shall have the full right
to (a) examine the offices, properties, equipment, invoices, customer records, agreement books and records of Buyer, (b) meet and
discuss Buyer and the operations, history and prospects of Buyer with representatives and employees of Buyer and (c) otherwise
perform such due diligence review of Buyer as Seller in its sole and absolute discretion deems necessary or appropriate, including
a due diligence review of the Contracts, assets, rights, liabilities and Intellectual Property of Buyer. Seller’s representatives
and agents, with the assistance of Buyer’s personnel, will prepare an inventory of all assets and other Intellectual Property
of Buyer. Buyer shall promptly provide to Seller copies of all documents related to Buyer that Seller reasonably requests. Seller
and Seller’s representatives and agents shall be permitted to meet with representatives and employees of Buyer individually
and as a group. The due diligence review by Seller will be at Seller’s sole expense, except that Buyer shall make Buyer’s
employees, representatives, officers and accountants available to Seller without charge and shall provide copies of documents to
Seller without charge. If the results of such due diligence review or meetings are not entirely satisfactory or acceptable to Seller
for any reason whatsoever, as determined by Seller in Seller’s reasonable discretion, then, notwithstanding any other term
or provision of this Agreement, Seller will have no duty or obligation of any kind or nature whatsoever to proceed with or to consummate
any of the transactions contemplated by this Agreement, including the Merger, or to negotiate revised terms, provisions or conditions
for any of the transactions contemplated by this Agreement, including the Merger, and Seller may terminate this Agreement without
payment of any damages or penalty.

 

    	24

    	 

    

 

5.3.         Preserve Accuracy of Representations and Warranties. Each of the parties hereto shall maintain the truth and accuracy
of the representations and warranties made by such party in this Agreement. Each of the parties hereto shall refrain, and shall
cause each Person and Subsidiary controlled by such party to refrain, from any act or omission that would or could render any representation
or warranty made by such party not true and accurate at the Closing Date.

 

5.4.         Permits and Approvals. Seller and Buyer will cooperate with each other and use their commercially reasonable best
efforts to obtain (and will immediately prepare all registrations, filings and applications, requests and notices preliminary to)
all Approvals and Permits that may be necessary or that may be reasonably requested by the other party to consummate the transactions
contemplated by this Agreement, including under the Securities Act, the Exchange Act and the state Blue Sky Laws.

 

5.5.         Buyer SEC
Documents. Buyer covenants that it shall use its best efforts to prepare and file with the SEC all reports, statements and
other information required by the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder. Buyer shall,
prior to any filing or submission, provide Seller with copies of any proposed filing. Buyer shall prepare financial statements
for all periods ending prior to the Closing Date and shall cause such financial statements to be audited by its independent certified
public accountants. Buyer shall bear all expenses of such financial statement preparation and audit.

 

5.6.         Written Consent of the Stockholders of Buyer. Buyer will, in accordance with applicable Law and the Articles of Incorporation
and Bylaws of Buyer and as soon as reasonably practicable after the date of this Agreement, obtain the requisite vote of the Stockholders
of Buyer by written consent of the Stockholders of Buyer to approve and adopt the Buyer Articles Amendment, this Agreement and
the transactions contemplated hereby, including the Merger. The Buyer Articles Amendment shall specify Buyer’s new name after
the Effective Time.

 

5.7.         Buyer Reverse Stock Split. Subject to the approval of the Stockholders of Buyer as required by the Nevada Law, Buyer
will execute and file with the Nevada Secretary of State the Buyer Articles of Amendment, if so required, and take all other actions
to effect a reverse stock split, whereby a pre-determined number of outstanding shares (to be determined by Buyer in its discretion),
shall be split into one (1) share of Buyer Common Stock (the “Reverse Stock Split”) in compliance with the Nevada
Law, effective prior to the Effective Time. The Parties currently contemplate that the ratio for the Reverse Stock Split shall
be approximately forty-to-one. In compliance with Nevada Law, no fractional shares will be issued and each Buyer Stockholder who
would otherwise be entitled to fractional shares shall be entitled to receive the next higher whole number of shares of Buyer Common
Stock. The Parties hereto agree that, after giving effect to (i) the Reverse Stock Split prior to the Effective Time, and (ii)
the issuance of Buyer Common Stock to the Seller immediately after the Effective Time pursuant to the exchange described in Section
1.2(a), there shall be approximately 750,000,000 shares of Buyer Common Stock issued and outstanding.

 

    	25

    	 

    

 

5.8.         Blue Sky Laws. Buyer will take such steps as may be necessary to comply with the securities and Blue Sky Laws of
all jurisdictions that are applicable to the issuance of shares of Buyer Common Stock in connection with the Merger. Seller will
use its commercially reasonable best efforts to assist Buyer as may be necessary to comply with the securities and Blue Sky Laws
of all jurisdictions that are applicable in connection with the issuance of shares of Buyer Common Stock in connection with the
Merger.

 

5.9.         Written Consent
of the Stockholders of Seller. Seller will, in accordance with applicable Law and the organizational documents of Seller and
as soon as reasonably practicable after the date of this Agreement, obtain the requisite vote of the Stockholders of Seller by
written consent of the Stockholders of Seller to approve and adopt this Agreement and the transactions contemplated hereby, including
the Merger.

 

5.10.         Conditions. Seller will use its commercially reasonable best efforts to take all actions reasonably necessary or
appropriate to cause each condition set forth in Section 6.2 to be fulfilled on or before the Closing, and Buyer will
use its commercially reasonable best efforts to take all actions reasonably necessary or appropriate to cause each condition set
forth in Section 6.3 to be fulfilled on or before the Closing.

 

5.11.         Reorganization. Seller and Buyer will each use its best efforts to cause the business combination to be effected
by the Merger to be qualified as a “reorganization” described in Section 368(a) of the Code.

 

5.12.         Audited Financial Statements. The Seller covenants and agrees with the Buyer to, as soon as reasonably practicable
after the date hereof (targeting within thirty (30) days of the date hereof), deliver to the Buyer those audited and unaudited
financial statements of the Seller as are required by applicable SEC regulations in order to permit Buyer to make the SEC filings
required in respect of the Merger and transactions contemplated hereby in accordance with this Agreement, including, but not limited
to, audited financial statements for the two most recently completed fiscal years of Seller, prepared in accordance with United
States Generally Accepted Accounting Procedures (“US GAAP”) and audited in accordance with PCAOB audit standards, and
unaudited interim financial statements for the most recently completed stub period, prepared in accordance with US GAAP.

 

5.13.         Audited Combined Financial Statements. Buyer and Seller shall cause the independent auditors for Seller to prepare
as soon as reasonably practicable after the date hereof audited combined financial statements for the combined operations of Buyer
and Seller as may be required to be filed with the SEC in accordance with applicable SEC rules, including Schedule 14C and Form
8-K.

 

ARTICLE VI

CONDITIONS TO CLOSING

 

6.1.         General Conditions. The obligations of the parties to consummate the Merger are subject to the satisfaction of the
following conditions:

 

(a)         Stockholder Approvals. This Agreement, including the Merger must have been approved and adopted by the affirmative
unanimous vote of the holders of the then-outstanding shares of Fetopolis Acquisition Corporation, Inc. Common Stock and by the
affirmative vote of the holders of not less than a majority of then-outstanding voting capital stock shares of Seller Common Stock
in accordance with the respective Articles of Incorporation and Bylaws of Buyer and Seller and the Nevada Law.

 

    	26

    	 

    

 

(b)          Governmental Approvals. The parties shall have obtained timely from each Governmental Entity all Permits and
Approvals (if any) necessary for the consummation of, or in connection with, the Merger and the several transactions contemplated
hereby, including such approvals, waivers and consents as may be required under the Securities Act and state Blue Sky Laws.

 

(c)         No Restraining Action. No Action will have been instituted or threatened against Buyer or Seller before any Governmental
Entity seeking to restrain or prohibit the consummation of the transactions contemplated hereby.

 

(d)         Audited Surviving Corporation Financial Statements. Buyer and Seller shall have caused the independent auditors for
Seller to prepare audited combined financial statements for the combined operations of Buyer and Seller as may be required to be
filed with the SEC in accordance with applicable SEC rules, including Schedule 14C and Form 8-K.

 

(e)         Merger. The Articles of Merger shall have been filed with the Nevada Secretary of State.

 

6.2.         Conditions to Obligations of Buyer. Unless waived, in whole or part, in writing by Buyer, Buyer’s obligations
hereunder are subject, before or at the Closing, to the satisfaction of each of the following conditions:

 

(a)         Due Diligence. The results of Buyer’s due diligence review or meetings pursuant to Section 5.2 must
have been entirely satisfactory and acceptable to Buyer, as determined by Buyer in Buyer’s reasonable discretion.

 

(b)         Representations and Warranties. The representations and warranties of Seller contained in ARTICLE II will
be true in all material respects at the Closing Date with the same effect as though made at such time. Seller will have performed
all obligations and complied with all covenants and conditions required by this Agreement to be performed or complied with by Seller
at or before the Closing Date, and Seller will have delivered to Buyer a certificate of Seller in form and substance satisfactory
to Buyer, dated the Closing Date and signed by Seller’s Chief Executive Officer and Chief Financial Officer, to such effect.

 

(c)         No Seller Material Adverse Effect. There will not have been any Seller Material Adverse Effect since the Seller Interim
Balance Sheet Date.

 

(d)         Corporate Proceedings. True and complete copies of all corporate proceedings and documents effecting the authorization
and approval of the Transaction Documents and the transactions contemplated thereunder, certified by the Chief Executive Officer
of Seller, will have been furnished to Buyer.

 

(e)         Transaction Documents. Seller will have executed and delivered the Transaction Documents to which it is a party other
than this Agreement.

 

    	27

    	 

    

 

(f)         Approvals and Permits. Buyer must have obtained all Approvals and Permits necessary to consummate the transactions
contemplated hereby (if any).

 

(g)         Seller Financial Statements. Seller shall have delivered to Buyer the Seller Financial Statements and shall have
prepared and delivered to Buyer or Buyer’s independent auditors all financial information specified in Section 5.12.

 

6.3.         Conditions to Obligations of Seller. Unless waived, in whole or part, in writing by Seller, Seller’s obligations
hereunder are subject, before or at the Closing, to the satisfaction of each of the following conditions:

 

(a)         Due Diligence. The results of Seller’s due diligence review or meetings must be satisfactory and acceptable
to Seller, as determined by Seller in Seller’s reasonable discretion.

 

(b)         Representations and Warranties. The representations and warranties of Buyer contained in ARTICLE III will
be true in all material respects at the Closing Date with the same effect as though made at such time. Buyer will have performed
all obligations and complied with all covenants and conditions required by this Agreement to be performed or complied with by Buyer
at or before the Closing Date, and Buyer will have delivered to Seller a certificate of Buyer in form and substance satisfactory
to Seller, dated the Closing Date and signed by Buyer’s Chief Executive Officer and Chief Financial Officer, to such effect.

 

(c)         No Buyer Material Adverse Effect. There will not have been any Buyer Material Adverse Effect since the Buyer Interim
Balance Sheet Date.

 

(d)         Corporate Proceedings. True and complete copies of all corporate proceedings and documents effecting the authorization
and approval of the Transaction Documents and the transactions contemplated thereunder by Buyer, certified by the Chief Executive
Officer and the Secretary of Buyer, shall have been furnished to Seller.

 

(e)         Transaction Documents. Buyer must have executed and delivered the Transaction Documents to which Buyer is a party
other than this Agreement.

 

(f)         Approvals and Permits. Seller must have obtained all Approvals and Permits necessary to consummate the transactions
contemplated hereby (if any).

 

(g)         Management; New Corporate Name. Buyer shall have taken all necessary corporate action such that immediately following
the Closing: (i) the sole director of Buyer shall be Raaj Kapur Brar and Buyer shall have taken no further action to amend its
Bylaw provisions relating to the size and membership of its Board of Directors, (ii) the executive officer(s) of Buyer shall be
Raaj Kapur Brar and such other individuals as he shall appoint, and (iii) a new corporate name for Buyer shall have been implemented
in the discretion of Mr. Brar.

 

(h)         Buyer Financial Statements. Buyer shall have delivered to Seller the Buyer Financial Statements and shall have prepared
and delivered to Seller or Seller’s independent auditors all financial statements and information necessary for inclusion
in the audited combined financial statements, referenced in Sections 5.13 and 6.1(d), for the combined operations
of Buyer and Seller as may be required to be filed with the SEC as an Exhibit to Form 8-K not later than four (4) days following
the Closing Date.

 

    	28

    	 

    

 

ARTICLE VII

TERMINATION OF OBLIGATIONS

 

7.1.         Termination of Agreement. This Agreement and the transactions contemplated by this Agreement will terminate if the Closing
does not occur on or before the close of business on March 1, 2015, unless extended pursuant to Section 1.1(c), in which
case this Agreement and the transactions contemplated by this Agreement will terminate if the Closing does not occur on or before
the Closing Date as extended pursuant to Section 1.1(c) and otherwise may be terminated at any time before the Closing as
follows and in no other manner:

 

(a)         Mutual Consent. By the mutual consent in writing of Buyer and Seller.

 

(b)         Conditions to Buyer’s Performance Not Satisfied. By Buyer by written notice to Seller if any event occurs or
condition exists that would render impossible the satisfaction of one or more conditions to the obligations of Buyer to consummate
the transactions contemplated by this Agreement as set forth in Section 6.1 or Section 6.2.

 

(c)         Conditions to Seller’s Performance Not Satisfied. By Seller by written notice to Buyer if any event occurs
or condition exists that would render impossible the satisfaction of one or more conditions to the obligations of Seller to consummate
the transactions contemplated by this Agreement as set forth in Section 6.1 or Section 6.3.

 

7.2.         Effect of Termination. If this Agreement is terminated pursuant to Section 7.1, then all further obligations
of the parties under this Agreement will terminate without further liability of any party to another party; provided, however,
that each party shall remain liable for all breaches of or inaccuracies in such party’s covenants, agreements, representations
and warranties hereunder that occurred before the termination of this Agreement. This Section 7.2 and the obligations of
the parties contained in Sections 9.3 (Confidentiality), 9.4 (Expenses), 9.15 (Governing Law) will survive
any termination of this Agreement and remain in full force and effect. A termination under Section 7.1 will not relieve
any party of any liability for a breach of, or for any misrepresentation under, this Agreement, or be deemed to constitute a waiver
of any available remedy (including specific performance if available) for any such breach or misrepresentation.

 

ARTICLE VIII

INDEMNIFICATION

 

8.1.         Obligations of the Surviving Corporation. The Surviving Corporation will indemnify and hold harmless the Buyer Principal
Stockholders from and against Losses of the Stockholders of Buyer, directly or indirectly, as a result of, or based on or arising
from (a) any material inaccuracy in or material breach or material nonperformance of any of the representations, warranties,
covenants or agreements made by Seller in or pursuant to this Agreement or (b) any third party claim or demand regarding the
conduct of the Seller Business before the Closing, whether asserted before or after the Closing. Any payment made by the Surviving
Corporation to the Stockholders of Buyer in respect of Losses incurred by the Stockholders of Buyer pursuant to this Section 8.1
will be paid in shares of Common Stock of the Surviving Corporation. For purposes of determining the number of shares of Common
Stock of the Surviving Corporation to be delivered by the Surviving Corporation to the Stockholders of Buyer pursuant to this Section
8.1, the value of shares of Common Stock of the Surviving Corporation will be determined as provided in Section 8.3.

 

    	29

    	 

    

 

8.2.         Obligations
of Buyer Principal Stockholders. At the Closing, the Buyer Principal Stockholders shall deliver the Indemnification Agreement
in the form attached hereto as Exhibit B.

 

8.3.         Valuation of Shares of Common Stock of the Surviving Corporation. Whenever the provisions of this Article VIII, Section
8.1 or Section 8.2 require that an indemnification payment must be made in shares of Common Stock of the Surviving Corporation,
then the shares of Common Stock of the Surviving Corporation shall be valued as follows: (a) if shares of Common Stock of the Surviving
Corporation are then traded on a national securities exchange or the NASDAQ Global Market (or a similar national or global quotation
system), then the value of shares of Common Stock of the Surviving Corporation shall be deemed to be the average of the daily closing
prices of such shares of Common Stock of the Surviving Corporation on such exchange or system over the thirty (30) day period ending
three (3) days before the day on which such indemnification payment is required to be made; and (b) if shares of Common Stock of
the Surviving Corporation are then actively traded over-the-counter, then the value of shares of Common Stock of the Surviving
Corporation shall be deemed to be the average of the daily closing bid or sale prices (whichever is applicable) over the thirty
(30) day period ending three (3) days before the day on which such indemnification payment is required to be made; and (c) if there
is no active public market for shares of Common Stock of the Surviving Corporation, then the value of shares of Common Stock of
the Surviving Corporation shall be deemed to be the average of the daily closing bid or sale price over the ten (10) first days
of trading after the Effective Time.

 

8.4.         Procedure.

 

(a)         Any party seeking indemnification with respect to any Loss will give notice to the party required to provide indemnity hereunder
on or before the last day of the applicable survival period specified in Section 9.1.

 

(b)         If any claim, demand or liability is asserted by any third party against any Indemnified Party, then the Indemnifying Party
will, upon the written request of the Indemnified Party, defend any Action brought against the Indemnified Party with respect to
matters embraced by the indemnity with legal counsel satisfactory to the Indemnified Party, but the Indemnified Party will have
the right to conduct and control the defense, compromise or settlement of any Indemnifiable Claim if the Indemnified Party chooses
to do so, on behalf of and for the account and risk of the Indemnifying Party who will be bound by the result so obtained to the
extent provided herein; provided, however, that no Indemnifiable Claim will be settled by an Indemnified Party unless the
Indemnifying Party consents thereto, which consent will not be unreasonably withheld or delayed. If, after a request to defend
any Action, the Indemnifying Party neglects to defend the Indemnified Party, then a recovery against the latter suffered by it
in good faith is conclusive in its favor against the Indemnifying Party; provided, however, that, if the Indemnifying Party
has not received reasonable notice of the Action against the Indemnified Party or is not allowed to control its defense, then judgment
against the Indemnified Party is only presumptive evidence against the Indemnifying Party. Each party hereto, to the extent that
it is or becomes an Indemnifying Party, hereby stipulates that a judgment against the Indemnified Party will be conclusive upon
the Indemnifying Party. The parties will cooperate in the defense of all third party claims that may give rise to Indemnifiable
Claims hereunder. In connection with the defense of any claim, each party will make available to the party controlling such defense
all books, records or other documents within its control that are reasonably requested in the course of such defense.

 

    	30

    	 

    

 

ARTICLE IX

MISCELLANEOUS

 

9.1.         Survival of Representations, Warranties, Covenants and Agreements. The representations and warranties of the parties
set forth in this Agreement will survive the Closing until midnight PST of the day immediately preceding the first anniversary
of the Closing Date. The covenants and agreements of the parties set forth in this Agreement shall survive after the Closing and
the Effective Time until fully performed.

 

9.2.         Public Announcements. Buyer and Seller will consult with each other before issuing any press release or making any
public statement with respect to this Agreement or the transactions contemplated hereby and will mutually agree on the substance
of any such press release or public statement.

 

9.3.         Confidentiality. All information disclosed by any party (or its representatives), whether before or after the date
hereof, in connection with the transactions contemplated by, or the discussions and negotiations preceding, this Agreement to any
other party (or its representatives) will be kept confidential by such other party and its representatives and will not be used
by any such Person other than as contemplated by this Agreement, except to the extent that such information (a) was known
by the recipient when received, (b) is or hereafter becomes lawfully obtainable from other sources, (c) is necessary
or appropriate to disclose to a Governmental Entity having jurisdiction over the parties or as otherwise may be required by Law
or Legal Requirement or (d) to the extent such duty as to confidentiality is waived in writing by the other party. If this
Agreement is terminated, each party will use all reasonable efforts to return upon written request from the other party all documents
(and reproductions thereof) received by such party or its representatives from such other party (and, in the case of reproductions,
all such reproductions made by the receiving party) that include information not within the exceptions contained in the first sentence
of this Section 9.3, unless the recipients provide assurances reasonably satisfactory to the requesting party that
such documents have been destroyed.

 

9.4.         Expenses. Except as otherwise provided herein, each of the parties will bear all expenses incurred by it in connection
with this Agreement and in the consummation of the transactions contemplated hereby and in preparation therefor.

 

9.5.         Notices. All notices (including other communications required or permitted) under this Agreement must be in writing
and must be delivered: (a) in person; (b) by registered, express or certified mail, postage prepaid, return receipt requested;
(c) by a generally recognized courier or messenger service that provides written acknowledgement of receipt by the addressee;
or (d) by facsimile or other generally accepted means of electronic transmission with a verification of delivery. A notice
will be deemed delivered at the earlier of the date such notice is actually received by a party or three (3) days after such notice
is given. Notices must be given at the addresses below, but any party may furnish, from time to time, other addresses for notices
to it.

 

    	31

    	 

    

 

If to Buyer, at:

 

INDIGO-ENERGY, INC.

74 N. Pecos Road, Suite D

Henderson, Nevada 89074

Attn: James Walter Jr.

Telephone: (702) 463-8528

 

with a copy to:

 

Wilson & Oskam, LLP

9110 Irvine Center
Drive

Irvine, CA 92618

Attn: Lance McKinlay, Esq.

Telephone: (949) 596-7995

Fax: (917) 791-8877

 

If
to Seller, at:

 

Fetopolis Inc.

3650 Langstaff Road, Suite 243

Woodbridge, ON L4L 9AB

Attn: Raaj Singh Brar, CEO

Telephone: (905) 553-0190

   

The addresses to which
notices or demands are to be given may be changed from time to time by notice served as provided above. Delivery of notice to the
copied parties above is not notice to Buyer or Seller, as the case may be.

 

9.6.         Further Assurances. Seller will, upon the request of Buyer, from time to time execute and deliver such additional
certificates, agreements and other documents and take such other actions as Buyer reasonably requests to render effective the transactions
contemplated by this Agreement. Buyer will, upon the request of Seller, from time to time execute and deliver such additional certificates,
agreements and other documents and take such other actions as Seller reasonably requests to render effective the transactions contemplated
by this Agreement.

 

9.7.         Sections and Other Headings. Sections or other headings contained in this Agreement are for reference purposes only
and will not affect in any way the meaning or interpretation of this Agreement.

 

    	32

    	 

    

 

9.8.         Integrated Agreement. This Agreement and the Exhibits and Schedules attached hereto constitute the entire agreement
between the parties hereto, and no agreements, understandings, restrictions, warranties or representations exist between the parties
hereto other than those set forth herein or provided for herein.

 

9.9.         Assignment. No party to this Agreement may assign this Agreement without the prior written consent of the other parties
to this Agreement.

 

9.10.         Amendments; Waivers. All parties must approve any amendment to this Agreement. Any waiver of any right or remedy
requires the consent of the party waiving it. Every amendment or waiver must be in writing and designated as an amendment or waiver,
as appropriate. No failure by any party to insist on the strict performance of any provision of this Agreement, or to exercise
any right or remedy, will be deemed a waiver of such performance, right or remedy or of any other provision of this Agreement.

 

9.11.         Interpretation. If any claim is made by a party relating to any conflict, omission or ambiguity in the provisions
of this Agreement, no presumption or burden of proof or persuasion will be implied because this Agreement was prepared by or at
the request of any party or its legal counsel. The parties waive any statute or rule of Law to the contrary. Unless the context
otherwise requires: (a) a term has the meaning assigned to it; (b) “or” is not exclusive; (c) words
in the singular include the plural, and words in the plural include the singular; (d) “herein,” “hereof’
and other words of similar import refer to this Agreement as a whole and not to any particular Section, subsection, paragraph,
clause or other subdivision; (e) all references to “Article,” “Section,” “Exhibit,”
or “Schedule” refer to the particular Article, Section, Exhibit or Schedule in or attached to this Agreement
unless otherwise expressly specified; and (f) “including” and “includes,” when following
any general provision, sentence, clause, statement, term or matter, will be deemed to be followed by “without limitation”
or “but not limited to” and “without limitation” or “but is not limited to,” respectively.

 

9.12.         Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original instrument,
but all of which together shall constitute one instrument.

 

9.13.         Exhibits and Schedules. All Exhibits and Schedules attached to this Agreement are incorporated herein.

 

9.14.         Severability. If any provision of this Agreement is held to be unenforceable for any reason, then such provision
will be adjusted rather than voided, if possible, to achieve the intent of the parties to the extent possible. In any event, all
other provisions of this Agreement will be deemed valid and enforceable to the extent possible.

 

9.15.         Governing Law. This Agreement will be governed by and construed in accordance with the internal Law of the State
of Nevada (without reference to its rules as to conflicts of Law).

 

9.16.         Specific Performance. The parties agree that irreparable damage would occur if any provision of this Agreement was
not performed in accordance with the terms hereof and that the parties will be entitled to specific performance of the terms hereof
in addition to any other remedy to which they are entitled at law or equity.

 

[Signature Page
Follows]

 

    	33

    	 

    

 

IN WITNESS WHEREOF,
each of the parties hereto has executed or caused to be executed by its duly authorized officer this Agreement to be effective
as of the date first written above.

 

	 	
        INDIGO-ENERGY, INC.,

        a Nevada corporation

	 	 
	 	
        By: /s/ James C. Walter Sr.

                Name:
James C. Walter Sr.

                Its: Chief Executive Officer

	 	 
	 	 
	 	
        “Acquisition Corp.”

         

        Fetopolis Acquisition Corporation, Inc.

        a Nevada corporation

	 	 
	 	
        By: /s/ James C. Walter Sr.

                Name:
James C. Walter Sr.

                Its: Chief Executive Officer

	
         

         

        
	
	
         

         

         

         
	
        “Buyer Principal Stockholders”

         

        

        New Hope Partners, LLC

        a Nevada limited liability company

         

        By: /s/ James C. Walter Sr.

                Name:
James C. Walter Sr.

                Its: Manager

         

         

	 	
        FETOPOLIS INC.

         

	 	
        By: /s/ Raaj Kapur Brar

                Name:
Raaj Kapur Brar

                Its: Chief Executive Officer

 

    	34

    	 

    

 

EXHIBIT A

 

DEFINITIONS

 

“Action”
means any action, complaint, petition, investigation, suit or other proceeding, whether civil or criminal, in law or in equity,
or before any arbitrator or Governmental Entity.

 

“Affiliate”
means a Person that directly, or indirectly through one or more intermediaries, controls, is controlled by or is under common control
with a specified Person.

 

“Agreement”
means this Agreement by and among Buyer and Seller, as it may be amended, supplemented or modified from time to time.

 

“Approval”
means any approval, authorization, consent, qualification or registration, or any waiver of any of the foregoing, required to be
obtained from, or any notice, statement or other communication required to be filed with or delivered to, any Governmental Entity
or any other Person.

 

“Articles
of Merger” has the meaning set forth in Section 1.1(c).

 

“Associate”
of a Person means:

 

(i)          a corporation
or organization (other than a party to this Agreement) of which such Person is an officer or partner or, directly or indirectly,
beneficially owns ten percent (10%) or more of any class of equity securities;

 

(ii)         any trust or
other estate in which such Person has a substantial beneficial interest or as to which such Person serves as trustee or in a similar
capacity; and

 

(iii)        any relative
or spouse of such Person or any relative of such spouse who has the same home as such Person.

 

“Buyer”
has the meaning set forth in the introduction to this Agreement.

 

“Buyer Audited
Financial Statements” has the meaning set forth in Section 3.3.

 

“Buyer Articles
Amendment” means the amendment filed with the Nevada Secretary of State to reflect the new name of Buyer, the final capital
structure agreed upon by Buyer and Seller as is necessary to accommodate the Merger and the Reverse Stock Split.

 

“Buyer Financial
Statements” has the meaning set forth in Section 3.3.

 

“Buyer Closing
Date Balance Sheet” has the meaning set forth in Section 3.3.

 

“Buyer Competing
Transaction” means (i) any merger, consolidation, share exchange, business combination or other similar transaction
involving Buyer, (ii) any sale, lease, exchange, mortgage, pledge, transfer or other disposition of fifty percent (50%) or
more of the assets of Buyer, taken as a whole, in a single transaction or a series of transactions, other than in the Ordinary
Course of Business, (iii) any Person having acquired beneficial ownership or the right to acquire beneficial ownership of
or any “group” (as defined in Section 13(d) of the Exchange Act) having been formed that beneficially owns or
has the right to acquire beneficial ownership of ten percent (10%) or more of the Buyer Common Stock or (iv) any public announcement
of a proposal, plan or intent to do any of the foregoing or any agreement to engage in any of the foregoing other than any transaction
contemplated by this Agreement.

 

    	35

    	 

    

 

“Buyer Common
Stock” has the meaning set forth in Recital B.

 

“Buyer Contract”
means any Contract (a) under which Buyer has or may acquire any right, (b) under which Buyer has or may become subject to any obligation
or liability or (c) by which Buyer or any of the assets owned or used by Buyer is or may become bound.

 

“Buyer Disclosure
Schedule” means the disclosure schedule dated, and delivered by Buyer to Seller on, the date of this Agreement. The Sections
of the Buyer Disclosure Schedule will be numbered to correspond to the applicable Section of this Agreement and, together with
all matters under such heading, will be deemed to qualify only that Section unless it is manifestly evident from such disclosure
that it qualifies another Section, in which case it will be deemed to qualify such other Section.

 

“Buyer Interim
Balance Sheet” has the meaning set forth in Section 3.3.

 

“Buyer Interim
Balance Sheet Date” has the meaning set forth in Section 3.3.

 

“Buyer Material
Contract” means any Contract that would be required to be filed as a material agreement with the SEC under applicable
rules of the Exchange Act.

 

“Buyer Material
Adverse Effect” means any event, change, violation, inaccuracy, circumstance or effect (regardless of whether or not
such events, changes, violations, inaccuracies, circumstances or effects are inconsistent with the representations or warranties
made by Buyer in this Agreement) that is, or could reasonably be expected to be, individually or in the aggregate, materially adverse
to the business, operations, condition (financial or otherwise), assets (tangible or intangible), liabilities, employees, properties,
prospects, capitalization or results of operations of Buyer.

 

“Buyer Principal
Stockholder” and “Buyer Principal Stockholders” have the meanings set forth in the introduction to
this Agreement.

 

“Buyer SEC
Documents” means all required reports, schedules, forms, statements and other documents filed by Buyer with the SEC.

 

“Certificates”
has the meaning set forth in Section 1.3(c).

 

“Closing”
has the meaning set forth in Section 1.1(c).

 

“Closing Date”
has the meaning set forth in Section 1.1(c).

 

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

 

    	36

    	 

    

 

“Contract”
means any agreement, contract, obligation, promise, undertaking, arrangement, bond, commitment, franchise, indemnity, indenture,
instrument, lease, license or understanding, whether written or oral and whether express or implied.

 

“Effective
Time” has the meaning set forth in Section 1.1(c).

 

“Encumbrance”
means any claim, charge, community property interest, condition, equitable interest, easement, encumbrance, lease, covenant, security
interest, lien, option, pledge, right of first refusal, rights of others or restriction or any kind, including any restriction
on use, voting, transfer, receipt of income or exercise of any other attribute of ownership (whether on voting, sale, transfer,
disposition or otherwise), whether imposed by agreement, understanding, Law, Legal Requirement, equity or otherwise, except for
any restriction on transfer generally arising under any applicable federal or state securities law.

 

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

 

“Exchange
Agent” has the meaning set forth in Section 1.3(a).

 

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

 

“Governmental
Authorization” means any approval, consent, license, permit, waiver or other authorization issued, granted, given or
otherwise made available by or under the authority of any Governmental Entity or pursuant to any Law or Legal Requirement.

 

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

 

“Indemnifiable
Claim” means any Loss for or against which any party is entitled to indemnification under this Agreement.

 

“Indemnified
Party” means the party entitled to indemnity under this Agreement.

 

“Indemnifying
Party” means the party obligated to provide indemnification under this Agreement.

 

“Intellectual
Property” means any trade secret, secret process or other confidential or proprietary information or know-how, patent,
patent application or any brand name, copyright, trademark, trademark application, service mark, service mark application, trade
name, trade dress, URL, moral right, mask work, invention, composition of matter, formula, design or process and all registrations
or applications for registration of any of the foregoing.

 

“IRS”
means the United States Internal Revenue Service or any successor agency and, to the extent relevant, the United States Department
of the Treasury.

 

“Knowledge”
with respect to Seller means the actual knowledge of Raaj Kapur Brar after conducting a reasonably comprehensive investigation
of the subject matter thereof; “Knowledge” with respect to Buyer means the actual knowledge of the directors
and executive officers of Buyer after conducting a reasonably comprehensive investigation of the subject matter thereof.

 

    	37

    	 

    

 

“Law”
means any constitutional provision, statute or other law, rule, regulation or interpretation of any Governmental Entity and any
Order.

 

“Legal Requirement”
means any federal, state, local, municipal, foreign, international, multinational or other administrative order, constitution,
law, ordinance, principle of common law, regulation, statute or treaty.

 

“Loss”
means any action, cost, damage, disbursement, expense, liability, loss, deficiency, diminution in value, obligation, penalty or
settlement of any kind or nature, whether foreseeable or unforeseeable, including interest or other carrying costs, penalties,
legal, accounting and other professional fees and expenses incurred in the investigation, collection, prosecution and defense of
claims and amounts paid in settlement, that may be imposed on or otherwise incurred or suffered by the specified Person.

 

“Merger”
has the meaning set forth in Recital A.

 

“Nevada Law”
has the meaning set forth in Section 1.1(b).

 

“Order”
means any award, decision, decree, injunction, judgment, order, ruling, subpoena, assessment, writ or verdict.

 

“Ordinary
Course of Business”: An action taken by any Person will be deemed to have been taken in the “Ordinary Course
of Business” only if: (a) such action is consistent with the past practices of such Person and is taken in the ordinary
course of the normal day-to-day operations of such Person; (b) such action is not required to be authorized by the board of
directors of such Person (or by any Person or group of Persons exercising similar authority) and is not required to be specifically
authorized by the parent company (if any) of such Person; and (c) such action is similar in nature and magnitude to actions customarily
taken, without any authorization by the board of directors (or by any Person or group of Persons exercising similar authority),
in the ordinary course of the normal day-to-day operations of other Persons that are in the same line of business as such Person.

 

“Organizational
Documents” means (a) the articles or certificate of incorporation and the bylaws of a corporation (or its jurisdictional
equivalent); (b) the articles or certificate of formation or organization (or substantially similar document) and the operating
agreement (or substantially similar document) of a limited liability company; (c) the partnership agreement and any statement of
partnership of a general partnership; (d) the limited partnership agreement and the certificate of limited partnership of a limited
partnership; (e) any charter or similar document adopted or filed in connection with the creation, formation or organization of
a Person; and (f) any amendment to any of the foregoing.

 

“Permit”
means any license, permit, franchise, certificate of authority or order, or any waiver of the foregoing, required to be issued
by any Governmental Entity.

 

    	38

    	 

    

 

“Person”
means any individual, corporation (including any non-profit corporation), general or limited partnership, limited liability company,
joint venture, estate, trust, association, organization, labor union or any other entity, including a Governmental Entity.

 

“SEC”
means the United States Securities and Exchange Commission.

 

“Securities
Act” means the Securities Act of 1933, as amended, or any successor law, and regulations and rules issued pursuant to
that Act or any successor law.

 

“Seller”
has the meaning set forth in the introduction to this Agreement.

 

“Seller Assets”
has the meaning set forth in Section 2.7.

 

“Seller Financial
Statements” has the meaning set forth in Section 2.3.

 

“Seller Business”
means the business of Seller and of the Seller Subsidiaries, if any, and will be deemed to include any of the following incidents
of such business: income, cash flow, operations, condition (financial or other), assets, properties, anticipated revenues/income
and liabilities.

 

“Seller Closing
Date Balance Sheet” has the meaning set forth in Section 2.3.

 

“Seller Common
Stock” has the meaning set forth in Recital B.

 

“Seller Competing
Transaction” means (i) any merger, consolidation, share exchange, business combination or other similar transaction
involving Seller, (ii) any sale, lease, exchange, mortgage, pledge, transfer or other disposition of fifty percent (50%) or
more of the assets of Seller, taken as a whole, in a single transaction or a series of transactions, other than in the Ordinary
Course of Business, (iii) any Person having acquired beneficial ownership or the right to acquire beneficial ownership of
or any “group” (as defined in Section 13(d) of the Exchange Act) having been formed that beneficially owns or
has the right to acquire beneficial ownership of ten percent (10%) or more of any class of Seller equity or (iv) any public
announcement of a proposal, plan or intent to do any of the foregoing or any agreement to engage in any of the foregoing other
than any transaction contemplated by this Agreement.

 

“Seller Contract”
means any Contract (a) under which Seller has or may acquire any right, (b) under which Seller has or may become subject to any
obligation or liability or (c) by which Seller or any of the assets owned or used by Seller is or may become bound.

 

“Seller Disclosure
Schedule” means the disclosure schedule dated, and delivered by Seller to Buyer on, the date of this Agreement. The Sections
of the Seller Disclosure Schedule will be numbered to correspond to the applicable Section of this Agreement and, together
with all matters under such heading, will be deemed to qualify only that Section unless it is manifestly evident from such
disclosure that it qualifies another Section, in which case it will be deemed to qualify such other Section.

 

“Seller Dissenting
Shares” has the meaning set forth in Section 1.2(a).

 

“Seller Dissenting
Stockholder” has the meaning set forth in Section 1.2(d).

 

    	39

    	 

    

 

“Seller Financial
Statements” has the meaning set forth in Section 2.3.

 

“Seller Interim
Balance Sheet” has the meaning set forth in Section 2.3.

 

“Seller Interim
Balance Sheet Date” has the meaning set forth in Section 2.3.

 

“Seller Material
Adverse Effect” means any event, change, violation, inaccuracy, circumstance or effect (regardless of whether or not
such events, changes, violations, inaccuracies, circumstances or effects are inconsistent with the representations or warranties
made by Seller in this Agreement) that is, or could reasonably be expected to be, individually or in the aggregate, materially
adverse to the business, operations, condition (financial or otherwise), assets (tangible or intangible), liabilities, employees,
properties, prospects, capitalization or results of operations of Seller and the Seller Subsidiaries, if any, taken as a whole.

 

“Seller Material
Contract” means any and all of the following: (a) each Seller Contract that involves performance of services or delivery
of goods or materials by Seller of an amount or value in excess of ten thousand dollars ($10,000); (b) each Seller Contract that
involves performance of services or delivery of goods or materials to Seller of an amount or value in excess of ten thousand dollars
($10,000); (c) each Seller Contract that was not entered into in the Ordinary Course of Business and that involves expenditures
or receipts by Seller in excess of ten thousand dollars ($10,000); (d) each lease, rental or occupancy agreement, license, installment
and conditional sale agreement and other Seller Contract affecting the ownership of, leasing of, title to, use of or any leasehold
or other interest in any real or personal property (except personal property leases and installment and conditional sales agreements
having a value per item or aggregate payments of less than ten thousand dollars ($10,000) and with terms of less than one year)
of Seller ; (e) each licensing agreement or other Seller Contract with respect to patents, trademarks, copyrights or other intellectual
property, including agreements with current or former employees, consultants or contractors regarding the appropriation or the
nondisclosure of any of Intellectual Property of Seller ; (f) each joint venture, partnership and other Seller Contract (however
named) involving a sharing of profits, losses, costs or liabilities by Seller with any other Person; (g) each Seller Contract containing
covenants that in any way purport to restrict the business activity of Seller or any Affiliate of Seller or limit the freedom of
Seller or any Affiliate of Seller to engage in any line of business or to compete with any Person; (h) each Seller Contract providing
for payments to or by any Person based on sales, purchases or profits, other than direct payments for goods; (i) each power of
attorney on behalf of Seller that is currently effective and outstanding; (j) each Seller Contract entered into other than in the
Ordinary Course of Business that contains or provides for an express undertaking by Seller to be responsible for consequential
damages; (k) each Seller Contract for capital expenditures by Seller in excess of ten thousand dollars ($10,000); (l) each written
warranty, guaranty or other similar undertaking with respect to contractual performance extended by Seller other than in the Ordinary
Course of Business; and (m) each amendment, supplement and modification (whether oral or written) in respect of any of the foregoing.

 

“Seller Stock
Incentive Plan” has the meaning set forth in Section 2.2(a).

 

“Stockholder
Certificate” has the meaning set forth in Section 6.2(g).

 

    	40

    	 

    

 

“Stockholders
of Buyer” means, collectively, the holders of Buyer Common Stock immediately before the Effective Time (each, individually,
a “Stockholder of Buyer”).

 

“Stockholders
of Seller” means, collectively, the holders of Seller Common Stock immediately before the Effective Time (each, individually,
a “Stockholder of Seller”).

 

“Subsidiary”
means, with respect to any Person (the “Owner”), any corporation or other Person of which securities or other
interests having the power to elect a majority of that corporation’s or other Person’s board of directors or similar
governing body, or otherwise having the power to direct the business and policies of that corporation or other Person (other than
securities or other interests having such power only upon the occurrence of a contingency that has not occurred) are held by the
Owner or one or more of the Owner’s Subsidiaries.

 

“Surviving
Corporation” has the meaning set forth in Section 1.1(b).

 

“Tax”
means any foreign, federal, state, county or local income, sales and use, excise, franchise, real and personal property, transfer,
gross receipt, capital gain, capital stock, production, business and occupation, disability, employment, payroll, severance or
withholding tax or charge imposed by any Governmental Entity, all interest and penalties (civil or criminal) related thereto or
to the nonpayment thereof, and any Loss in connection with the determination, settlement or litigation of any Tax liability.

 

“Tax Return”
means a report, return or other information required to be supplied to a Governmental Entity with respect to Taxes, including,
where permitted or required, combined or consolidated returns for any group of entities that includes (as applicable) Seller or
Buyer.

 

“Transaction
Documents” means this Agreement and the Articles of Merger.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	41

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00231-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00231-of-00352.parquet"}]]