Document:

PURCHASE
AND SALE AGREEMENT

 

between

 

ITALK,
INC

as
Buyer,

 

and

 

KIL
W. LEE

as
Seller,

 

and

 

UNITED
MOBILE SOLUTIONS CORP.

 

    	 

     

    

 

PURCHASE
AND SALE AGREEMENT

 

This
PURCHASE AND SALE AGREEMENT (the “Agreement”), dated as of the 24th day of September 2015, by and among ITALK,
INC., a Nevada corporation with an address at 100 E. Linton Boulevard, Suite 144-A, Delray Beach, FL 33483 (“Talk”),
KIL W. LEE, an individual with an address at 3610 Hedge Harbor Court, Suwanee, GA 30024 (“Lee”
or “Seller”), and UNITED MOBILE SOLUTIONS CORP. a Delaware company with an address at 6140 Northbelt Parkway,
Norcross, GA 30071 (referred to herein as “UMS”, and collectively with “Talk” and “Lee”,
the “Parties”.)

 

W
I T N E S S E T H:

 

WHEREAS,
pursuant to the terms and conditions set forth below, TALK desires to acquire all of the issued and outstanding common stock of
UMS (the “UMS Shares”) in exchange for preferred stock (“Talk Preferred Stock”) which is convertible into
eighty-five (85%) percent of Talk’s common stock on a fully diluted basis; and

 

WHEREAS,
pursuant to the terms and conditions set forth below, Lee desires to sell all of his UMS Common Shares to TALK, which constitutes
all of equity outstanding in UMS as there are no issued or outstanding options, warrants, preferred shares or other forms of convertible
financial instruments in UMS; and

 

WHEREAS,
UMS and TALK desire to make certain representations, warranties, covenants and agreements in connection with this Agreement; and

 

WHEREAS,
UMS is currently engaged in the business of owning and operating cellular phone stores and refurbishing and distributing cellular
phones and related products to cellular phone store operators (the “Business”).

 

NOW,
THEREFORE, in consideration of the premises and mutual promises herein made, and in consideration of the representations, warranties,
covenants and agreements herein contained and the benefits to be derived under this Agreement, and intending to be legally bound
hereby, the Parties agree as follows:

 

INTERPRETATION;
DEFINITIONS

 

Headings
and References. The headings contained in this Agreement are for reference purposes only and shall not affect in
any way the meaning or interpretation of this Agreement. Unless expressly provided to the contrary, the terms “hereunder,”
“hereof,” “herein” and words of similar import are references to this Agreement as a whole and not any
particular section or provision of this Agreement. References to the singular shall include the plural, and vice versa. Except
as otherwise expressly provided herein, any reference in this Agreement to any contract or agreement shall mean such contract
or agreement as amended, restated, supplemented or otherwise modified from time to time up to the Closing Date. “Include”
and “including,” as used in this Agreement, shall mean include or including without limiting the generality of the
description preceding such term. Where this Agreement states that a Party “shall,” “will” or “must”
perform in some manner or otherwise act or omit to act, it means that the Party is legally obligated to do so in accordance with
this Agreement. The words “date hereof” refer to the Execution Date. The word “extent” in the phrase “to
the extent” means the degree to which a subject or other thing extends, and such phrase will not mean simply “if.”
The term “or” will not be deemed to be exclusive, unless the context so requires. All references to Articles, Sections,
Recitals, the Preamble, Schedules and Exhibits are, unless otherwise expressly stated, references to articles and sections of,
and recitals, the preamble, schedules and exhibits to, this Agreement, save that in the event of any conflict between the Schedules
or Exhibits and any provision contained in the Sections of this Agreement, the latter shall prevail. The Schedules and Exhibits
form part of this Agreement and shall be construed and shall have the full force and effect as if expressly set out in the body
of this Agreement. Any reference to any statute or statutory instrument in this Agreement shall be a reference to the same as
amended, consolidated, extended, supplemented or reenacted from time to time or at any time prior to the date of this Agreement,
and shall include any Orders, regulations, instruments or other subordinate legislation made under the relevant statute.

 

    	 

     

    

 

1.1
Definitions. The following capitalized terms, as used in this Agreement, shall have the respective meanings set forth
below or given to them in the provisions referenced.

 

“Affiliate”
means, with respect to any Person, any other Person controlling, controlled by, or under common control with such Person. The
terms “control,” “controlling,” and “controlled by” as used in the preceding sentence mean
the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of another
Person, whether through the ownership of voting securities, by Contract or otherwise.

 

“Agreement”
means this Purchase and Sale Agreement, together with its Recitals, Exhibits and Schedules attached hereto and the certificates
delivered hereunder, as the same may be amended, extended or varied from time to time in accordance with its express terms.

 

“Business
Day” means any day other than a Saturday, Sunday or other day on which commercial banks in New York, New York, United
States of America are authorized or required by applicable Law to close.

 

“Claim
Notice” means written notification pursuant to Section 7.7 of a Third Party Claim as to which indemnity is sought
by an Indemnified Party, enclosing a copy of all papers served, if any, and specifying in reasonable detail the nature of and
basis for such Third Party Claim and for the Indemnified Party’s claim against the Indemnifying Party under Article VII,
together with the amount or, if not then reasonably determinable, the estimated amount, determined in good faith, of the Loss
arising from such Third Party Claim.

 

“Closing”
has the meaning set forth in Section 3.1.

 

“Closing
Conditions” means the conditions to close set forth in Article IV.

 

“Closing
Date” means (i) the date which is the third (3rd) Business Day after the first date on which all Closing Conditions
have been satisfied or waived pursuant to the terms of Article IV, other than those Closing Conditions which by their terms will
be satisfied at the Closing, or (ii) such other date as Talk, Lee and UMS mutually agree upon in writing.

 

    	2

     

    

 

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

 

“Contract”
means any agreement, lease, license, evidence of indebtedness, mortgage, indenture, security agreement or other contract.

 

“Dispute
Period” means the period ending thirty (30) days following receipt by an Indemnifying Party of either a Claim Notice
or an Indemnity Notice, as applicable.

 

“Environmental
Law” means any Law relating to the regulation or protection of human health, safety or the environment or to emissions,
discharges, releases or threatened releases of pollutants, contaminants, chemicals or industrial, toxic or hazardous substances
or wastes into the environment (including, without limitation, ambient air, soil, surface water, ground water, wetlands, land
or subsurface strata), or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal,
transport or handling of pollutants, contaminants, chemicals or industrial, toxic or hazardous substances or wastes.

 

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

 

“Governmental
Entity” means any country or any state, county, city or other political subdivision thereof, and any Person exercising
executive, legislative, judicial, regulatory or administrative functions of government, including, without limitation, any court,
tribunal, arbitrator, authority, agency, commission, official or other instrumentality.

 

“Hazardous
Substance” means (i) any petroleum or petroleum products, flammable explosives, radioactive materials, asbestos
in any form that is or could become friable, urea formaldehyde foam insulation and transformers or other equipment that contain
dielectric fluid containing levels of polychlorinated biphenyls (PCBs), (ii) any chemicals or other materials or substances which
are now or hereafter become defined as or included in the definition of “hazardous substances,” “hazardous wastes,”
“hazardous materials,” “extremely hazardous wastes,” “restricted hazardous wastes,” “toxic
substances,” “toxic pollutants” or words of similar import under any Environmental Law, and (iii) any other
chemical or other material or substance, exposure to which is now or hereafter prohibited, limited or regulated by any Governmental
Entity pursuant to any Environmental Law.

 

“UMS
Stockholders” means all Stockholders of United Mobile Solutions Corp.

 

“Knowledge”
means the actual knowledge of the party, its officers, directors and management.

 

“Law”
means any applicable statute, act, law, rule, regulation, ordinance, Order or any standards or codes having the force of law,
enacted or promulgated by any Governmental Entity.

 

“Liabilities”
means all indebtedness, obligations and other liabilities of a Person (whether absolute, accrued, contingent, off-balance sheet,
unasserted, fixed or otherwise, or whether due or to become due).

 

    	3

     

    

 

“Licenses”
means all licenses, permits, certificates of authority, authorizations, Orders, approvals, registrations, exemptions, variances,
waivers, certificates, privileges, franchises and similar consents granted or issued by any Governmental Entity.

 

“Lien”
means any mortgage, pledge, security interest, lease, lien, claim, charge or other encumbrance or similar restriction of any kind.

 

“Loss”
means any and all damages, fines, fees, penalties, deficiencies, losses and expenses (including, without limitation, interest,
court costs, reasonable fees of attorneys, accountants and other experts or other reasonable expenses of litigation or other proceedings
or of any claim, default or assessment); provided, that a “Loss” shall not include any incidental,
consequential, exemplary, indirect, special or punitive damages, including loss of future revenue, income or profits, business
interruption, diminution of value or loss of business reputation or opportunity (except to the extent any such damages
are the subject of a Third Party Claim).

 

“Material
Adverse Effect” means a material adverse effect on the business, financial condition, assets, properties, Liabilities
or results of operations of UMS taken as a whole; provided, however, that none of the following shall be deemed
to constitute and shall not be taken into account in determining the occurrence of a Material Adverse Effect: (i) any effect or
change that results from the announcement of the execution and delivery of this Agreement, (ii) any effect or change that results
from the performance of this Agreement and the transactions contemplated by this Agreement or from any action taken or omitted
to be taken at the request or with the written consent of Talk, (iii) the effect of any change that generally affects any industry
in which UMS operates, including any changes in applicable Laws or accounting rules, (iv) the effect of any action taken by Talk
or its Affiliates with respect to the transactions contemplated hereby or with respect to UMS, or (vii) the failure of UMS to
meet any of its internal projections (it being understood and agreed that the underlying facts and circumstances that caused such
failure that are not otherwise excluded from the definition of a Material Adverse Effect may be taken into account in determining
whether there has been a Material Adverse Effect); except, in the case of clause (iii) or (iv) above, to the extent that such
effect or change has a materially disproportionate effect on UMS compared to other participants in the industries in which UMS
operates.

 

“Option”
means any security, right, subscription, warrant, option, “phantom” stock or other Contract that gives the right to
(i) purchase or otherwise receive or be issued any shares of capital stock of an applicable Person or any security of any kind
convertible into or exchangeable or exercisable for any shares of capital stock of such applicable Person or (ii) receive or exercise
any benefits or rights similar to any rights enjoyed by or accruing to the holder of shares of capital stock of such applicable
Person, including any rights to participate in the equity or income of such applicable Person or to participate in or direct the
election of any directors or officers of such applicable Person or the manner in which any shares of capital stock of such applicable
Person are voted.

 

“Order”
means any writ, judgment, decree, injunction or similar order of any Governmental Entity (in each such case whether preliminary
or final).

 

    	4

     

    

 

“Organizational
Documents” means, collectively, the organizational documents, including any certificate of incorporation, certificate
of formation, articles of organization, articles of association and/or certificates of existence and the bylaws, operating agreement,
shareholders agreement, limited liability company agreement, certificate of limited partnership or partnership agreement, as applicable,
and any other documents comparable to any of the foregoing, of any Person organized and existing under the Laws of any country
anywhere in the world.

 

“Permitted
Lien” means (i) any Lien disclosed on or incorporated into the Interim Balance Sheet, (ii) any Lien for taxes, assessments
or other governmental charges not yet due or delinquent or those being contested in good faith by appropriate proceedings for
which adequate reserves, if required, have been established on the Interim Balance Sheet, (iii) mechanics’, carriers’,
workers’, repairers’ and similar Liens arising or incurred in the ordinary course of business, (iv) zoning, entitlement
and other land use and environmental regulations by any Governmental Entity, (v) title of a lessor under a capital or operating
lease, (vi) any statutory Lien arising in the ordinary course of business by operation of Law with respect to a Liability that
is not yet due or delinquent, (vii) any other Liens, encumbrances or imperfections of title which are not material in amount and
do not materially detract from the value of or materially impair the existing use of the property affected by such Lien, encumbrance
or imperfection.

 

“Person”
means any individual, corporation, government, partnership, company, group, authority, association or other entity.

 

“Remaining
Transaction Documents” means all other agreements, certificates, acknowledgements or other documents to be negotiated,
executed or agreed to by UMS, Lee or Talk pursuant to or in connection with this Agreement.

 

“Talk
Indemnified Parties” means Talk and its Affiliates and their respective officers, directors, employees, partners,
shareholders, and agents.

 

“Willful
Breach” means (i) in the case of a breach of a covenant or other agreement set forth in this Agreement, an intentional
and material breach that is a consequence of a failure to act by, or act undertaken by or caused by, the breaching Party under
circumstances that objectively indicate that the breaching Party acted or failed to act with Knowledge that such failure to act
or taking or causing of such act would, or would reasonably be expected to, cause a material breach of this Agreement, and (ii)
in the case of a breach of a representation or warranty, actual fraudulent misrepresentation, where such representation or warranty
was deliberately made and such misrepresentation was known as of the time the representation or warranty was made.

 

Article
II

PURCHASE AND SALE OF UMS INTEREST

 

2.1
Interest to be Assigned. Upon the terms and subject to the conditions set forth in this Agreement, Lee, agrees to sell,
assign, transfer, deliver and convey all of the issued and outstanding stock in UMS to Talk (the “UMS Shares”) at
the Closing, and Talk agrees to accept the the UMS Shares.

 

2.2
Purchase Price. In exchange for the UMS Shares, Talk shall issue to the UMS Stockholders preferred shares of Talk which
are convertible into a total of 85% of the fully diluted common stock of iTalk, Inc., for distribution to the UMS Stockholders
in proportion to each of their Common Shares in UMS (the “Purchase Price”). This 85% is computed before giving effect
to options and warrants which may be given to Talk management or advisors as set out in Schedule 2.2 to this Agreement. The capital
structure of Talk post-closing shall be as set out in Schedule 2.2.

 

2.3
Capital Contribution. Presently iTalk, Inc. has convertible debt outstanding and liabilities outstanding, which
will either be paid from the first financings raised by Talk. or repaid by iTalk, Inc. through share issuances to such creditors
post-closing of the transaction contemplated in this Agreement. It is estimated at the date of this Agreement the total required
to satisfy all these debts are less than $1.0 million.

 

    	5

     

    

 

Article
III

CLOSING

 

3.1
Time and Location. Upon the terms and subject to the conditions set forth in this Agreement and the fulfillment or
waiver of the Closing Conditions, the closing of the transactions contemplated hereby (the “Closing”) shall
take place at 6140 Northbelt Parkway, Norcross, GA 30071 at 10:00 a.m. local time, on the Closing Date.

 

3.2
Closing Obligations. At the Closing:

 

(a)
UMS Stockholders shall execute and deliver to Talk stock powers executed in blank representing all of the UMS Shares:

 

(i)
Any executed agreements and other instruments to be negotiated and executed by UMS Stockholders or UMS, in the form which is attached
hereto as Exhibit 3.2.i;

 

(ii)
Duly executed copies of resignations, effective at the Closing, of any UMS Stockholders from their positions, if any, as Officers
and/or Directors serving on the board of directors (and any committees thereof) or similar governing bodies, if any, of UMS;

 

(iii)
A certificate duly executed by UMS, dated as of the Closing, certifying, that (A) except for the representations and warranties
contained in Sections 5.1 and 5.2, the representations and warranties made in this Agreement are true and correct in all material
respects (without giving effect to any limitation or qualification indicated by or referring to the words “in all material
respects,” “material” or “materially”) on the Closing Date as though made on and as of the Closing
Date (provided, that those representations and warranties that speak only as of a specified date were so true and correct in all
material respects only as of such specified date), (B) the representations and warranties made in Sections 5.1 and 5.2 are true
and correct in all respects on the Closing Date as though made on and as of the Closing Date, and (C) each of the agreements,
covenants and obligations required by this Agreement to be performed or complied with by UMS or the UMS Stockholders at or before
the Closing has been duly performed or complied with in all material respects; and

 

The
Closing shall be binding on the Parties upon completion of the Closing Conditions set out above and herein, however, final issuance
of iTalk, Inc. common shares to UMS will not occur until iTalk, Inc. has received UMS audited financial statements in a condition
capable of being filed with the SEC for inclusion in appropriate SEC reports.

 

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(b)
Talk will purchase the UMS Shares and shall deliver to Lee:

 

(i)
All executed agreements and other instruments to be negotiated and executed by Talk;

 

(ii)
The Preferred Stock, duly authorized and issued;

 

(iii)
A certificate duly executed by a duly authorized officer of Talk, dated as of the Closing, certifying on behalf of Talk that resolutions
authorizing the execution, delivery and performance of this Agreement and the transactions contemplated hereby have been adopted
by Talk and such resolutions are still in effect;

 

(iv)
A certificate duly executed by a duly authorized officer of Talk, dated as of the Closing, certifying on behalf of Talk that (A)
except for the representations and warranties contained in Sections 6.1, 6.7 and 6.8, the representations and warranties made
by Talk in this Agreement are true and correct in all material respects (without giving effect to any limitation or qualification
indicated by or referring to the words “in all material respects,” “material” or “materially”)
on the Closing Date as though made on and as of the Closing Date (provided, that those representations and warranties that speak
only as of a specified date were so true and correct in all material respects only as of such specified date), (B) the representations
and warranties made by Talk in Sections 6.1, 6.7 and 6.8 are true and correct in all respects on the Closing Date as though made
on and as of the Closing Date, and (C) each of the agreements, covenants and obligations required by this Agreement to
be performed or complied with by Talk at or before the Closing has been duly performed or complied with in all material respects;
and,

 

Article
IV

CONDITIONS PRECEDENT TO CLOSING

 

4.1
Mutual Conditions to Closing. The obligations of UMS, Lee and Talk to close the transactions contemplated by this Agreement
are subject to the satisfaction (or waiver by the Parties in writing) of the following conditions:

 

(i)
There shall not be in effect any injunction or Law, or any pending or threatened Action or other litigation, that would have the
result of enjoining, prohibiting or making illegal the consummation of any of the transactions contemplated by this Agreement
or which would otherwise deprive any Party of a material benefit contemplated by this Agreement;

 

(ii)
Talk and UMS shall have received all consents, waivers, Licenses, approvals, actions and authorizations of and made all declarations,
filings, notifications and reports with all Governmental Entities required to consummate the transactions contemplated by this
Agreement, and no such consent, waiver, License, approval, action, authorization, declaration, filing, notification or report
shall have been revoked; and

 

(iii)
Talk, Lee and UMS shall have negotiated and reached mutual agreement regarding the final form and terms and conditions of each
closing deliverable otherwise contemplated by this Agreement, as determined in each respective Party’s sole and absolute
discretion, with no Party maintaining an obligation to consummate the transactions contemplated by this Agreement in the event
the Parties cannot reach mutual agreement regarding the terms and conditions of any such closing deliverable.

 

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4.2
UMS Closing Conditions. The obligation of the UMS Stockholders to close the transactions contemplated by this Agreement
is subject to the satisfaction (or waiver by the UMS Stockholders in writing) of the following conditions:

 

(i)
Except for the representations and warranties contained in Sections 6.1 6.7 and 6.8, the representations
and warranties made by Talk in this Agreement shall be true and correct in all material respects (without giving effect to any
limitation or qualification indicated by or referring to the words “in all material respects,” “material”
or “materially”) on the Closing Date as though made on and as of the Closing Date (provided, that those representations
and warranties that speak only as of a specified date were so true and correct in all material respects only as of such specified
date) and (ii) the representations and warranties made by Talk in Sections 6.1 6.7 and 6.8 shall be true
and correct in all respects on the Closing Date as though made on and as of the Closing Date;

 

(ii)
Talk shall have performed or complied in all material respects with all obligations and covenants required by this Agreement to
be performed or complied with by Talk at or prior to the Closing;

 

(iii)
Approval by Talk’s Board of Directors. The Company’s board of directors shall have approved the Exchange and designated
and authorized the preferred stock for issuance at closing. Talk shall have delivered to UMS each of the deliverables referenced
in Section 3.2(b); and

 

4.3
Talk Closing Conditions. The obligation of Talk to close the transactions contemplated by this Agreement is subject
to the satisfaction (or waiver by Talk in writing) of the following conditions:

 

(i)
Except for those representations and warranties contained in Sections 5.1 and 5.2, the representations and warranties
made by UMS and the UMS Stockholders in this Agreement shall be true and correct in all material respects (without giving effect
to any limitation or qualification indicated by or referring to the words “in all material respects,” “material”
or “materially”) on the Closing Date as though made on and as of the Closing Date (provided, that those representations
and warranties that speak only as of a specified date were so true and correct in all material respects only as of such specified
date) and (ii) the representations and warranties made by UMS in Sections 5.1 and 5.2 shall be true and correct
in all respects on the Closing Date as though made on and as of the Closing Date;

 

(ii)
UMS shall have performed or complied in all material respects with all obligations and covenants required by this Agreement to
be performed or complied with by UMS at or prior to the Closing;

 

(iii)
UMS shall have delivered to Talk each of the deliverables referenced in Sections 3.2(a); and,

 

(iv)
Talk shall have received the results of those certain audits with respect to the annual financial period of UMS ended December
31, 2014 and interim financial period of UMS ended August 31, 2015, ongoing through the date of this Agreement, with such audits
having no material differences as compared to the Pro Forma Financial Statements, except for such differences as would not reasonably
be expected, individually or in the aggregate, to have a Material Adverse Effect on the Business.

 

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Article
V

LEE AND UMS REPRESENTATIONS AND WARRANTIES

 

Lee
and UMS, on behalf of itself and all of its subsidiaries, hereby jointly and severely represent and warrant to Talk the following:

 

5.1
Authority, Organization and Standing. UMS has the requisite power and authority, and has taken all action necessary,
to execute and deliver this Agreement and to perform its obligations hereunder. This Agreement has been duly authorized, executed
and delivered by UMS and constitutes the legal, valid and binding obligation of such UMS, enforceable against UMS in accordance
with its terms, subject to bankruptcy, insolvency, reorganization, moratorium and similar Laws of general application relating
to or affecting creditors’ rights and to general equity principles.

 

5.2
Title. The UMS Shares are duly authorized, validly issued, outstanding, fully paid and non-assessable. Each UMS Stockholder
owns his respective portion of the UMS Shares, beneficially and of record, free and clear of any Liens of any kind, character
or nature whatsoever. There are no outstanding Options with respect to the any interest constituting the UMS Shares, and the UMS
Shares are not subject to any type of voting agreement or other agreement granting a preemptive right, right of first refusal,
registration right or similar such right with respect to such shares.

 

5.3
Legal Proceedings. Except as disclosed in this section, there is no action, claim, suit or proceeding pending or, to
UMSs’ Knowledge, threatened against UMS, that could reasonably be expected to have an adverse effect on UMSs’ ability
to consummate the transactions contemplated by this Agreement. Except as disclosed in this section, there is no action, claim,
suit or proceeding pending or, to UMS’s Knowledge, threatened against UMS relating to any alleged breach of federal or state
securities Laws or otherwise relating to the purchase, sale or distribution of the UMS Shares.

 

5.4
No Conflict. Neither the execution nor delivery of this Agreement by UMS nor the fulfillment of any of UMS’s
obligations under this Agreement, will, to UMS’s Knowledge (a) require the UMS Stockholder to obtain the consent, approval,
authorization or Order of, or to make any filing, registration or qualification with, any Governmental Entity, (b) conflict with
or result in UMS’s material violation of or default under any material mortgage, indenture, loan agreement, lease, permit,
concession, franchise agreement or license agreement to which a Seller is a party, (c) result in a material violation of any Law
or Order applicable to UMS, or (d) result in the creation of any Lien upon UMS or the UMS Shares.

 

Neither
the execution nor delivery of this Agreement by UMS nor the fulfillment of any of UMS’s obligations under this Agreement,
will, to UMS’s Knowledge (a) conflict with or result in UMS’s material violation of or default under UMS’s Organizational
Documents or any material mortgage, indenture, loan agreement, lease, permit, concession, franchise agreement or license agreement
to which either of UMS is a party, or (b) result in a material violation of any Law or Order applicable to UMS.

 

    	9

     

    

 

5.5
Compliance with Laws, etc. UMS and its Subsidiaries are in compliance, in all material respects, with all Laws and
Orders that materially affect the UMS Shares. No written notice, charge, claim, Action or assertion has been received by UMS or,
to UMS’s Knowledge, has been filed, commenced or threatened against UMS alleging any material violation of such Laws and
Order materially affecting the UMS Shares.

 

To
UMS’s Knowledge, UMS and its Subsidiaries have obtained all material Licenses necessary for the operation of the Business.
All such Licenses obtained by UMS are in full force and effect, and there exists no material violation of any such License which
has not been cured. To UMS and its Stockholders Knowledge, there are no proceedings pending or threatened against UMS or its Subsidiaries
for the revocation or limitation of any such Licenses.

 

5.6
Related Party Transactions. There are no deferred compensation and other related party transactions between UMS on
the one hand, and UMS Stockholders or any directors, officers, agents or former equity holders of UMS, on the other hand. 

 

5.7
Adverse Information. To UMS’s Knowledge, there is no fact, event or condition which would reasonably be expected
to result in a Material Adverse Effect.

 

5.8
Authority, Organization and Standing. UMS is a corporation duly organized, validly existing and in good standing under
the laws of the State of Delaware, and has been duly authorized and qualified to do business in the State of Florida and every
other state in which it regularly does business. UMS has all requisite power and authority to execute, deliver and perform this
Agreement and to consummate the transactions contemplated hereby, which has been approved by the Board of Directors of UMS. UMS
is taxed as a “C” corporation.

 

5.9
Articles, Bylaws and Minutes. True and complete copies of UMS’s (and its Subsidiaries) certificate of formation
and by-laws, and any respective amendments and/or restatements thereto, have been delivered to Talk prior to the date hereof.
The minute books containing a record of the UMS Stockholders’ and board of directors meetings of UMS, its Subsidiaries and
the Stockholders ledger of UMS and its Subsidiaries, are complete, and any signatures set forth on the documents contained in
said books and records are the true signatures of the persons purporting to have signed them.

 

5.10
Subsidiaries. As of immediately prior to Closing, UMS (a) does not own (and has not owned in the last five (5) years)
any stock or other equity interest in another entity, or (b) maintain any subsidiaries or other Affiliated company or other corporate
entity except as follows:

 

At
the Closing, UMS will also be the 100% owner of United Mobile Solutions, LLC, International Touch Point, LLC, and United Prepaid,
LLC (individually and collectively the “Subsidiaries”). The business activities previously conducted and assets previously
held by Elephante (IT) and Mobix Wireless shall be 100% owned by UMS at the Closing.

 

    	10

     

    

 

5.11
Title to Assets. UMS has good and marketable title to all of its respective assets, free and clear of restrictions
on, or conditions to, transfer or assignment, and its title to its respective assets are free and clear of Liens, except for Permitted
Liens.

 

5.12
Employees. UMS has no employees except as set forth in Exhibit 5.12. The consummation of the transactions contemplated
by this Agreement will not directly give rise to any liability to any employee of UMS for severance, separation, golden parachute,
deferred compensation or termination pay.

 

5.13
Financial Statements. 

 

(i)
The (i) unaudited balance sheet of UMS as of August 31, 2015 and the related statements of income, stockholders’ equity
and cash flow for the fiscal years ended December 31, 2014 (the “Fiscal Financial Statements”), and (ii) unaudited
balance sheet of UMS as of December 31, 2014 (the “Interim Balance Sheet” and, together with the Fiscal Financial
Statements, the “Financial Statements”), and the related statements of income, stockholders’ equity and cash
flow statement for the period ended August 31, 2015, have been delivered to Talk prior to the date hereof.

 

(ii)
To UMS Stockholders’ Knowledge, the Financial Statements (i) are true, correct, and complete and (ii) fairly present the
financial position and results of operations of UMS as of the respective dates of the balance sheets included in the Financial
Statements.

 

(iii)
All prepaid expenses accrued on the Financial Statements represent bona fide prepayments made by UMS, full credit for which will
be afforded by the Persons who received the prepayments.

 

5.14
Interim Operations. Following December 31, 2014, the Business has been carried out in its ordinary course. Following
December 31, 2014, there has been no change in the financial condition, results of operations, assets, Liabilities, business,
or prospects of UMS which would reasonably be expected to result in a Material Adverse Effect. Following December 31, 2014, no
dividends or distributions have been made or declared by UMS. Following December 31, 2014, no bonus or extraordinary compensation
has been paid, declared or otherwise agreed to be paid by UMS. Any bonus, extraordinary or deferred compensation incurred by UMS
prior to December 31, 2014 is reflected in Financial Statements.

 

5.15
Absence of Liabilities. To UMS’s Knowledge, except for Liabilities reflected in the Interim Balance Sheet, there
exist no Liabilities of UMS, whether accrued, absolute, contingent, or due or to become due, which both (a) are related to the
Business or the assets and operations of UMS prior to the Closing Date and (b) would reasonably be expected to result in a Material
Adverse Effect except those which occurred in the ordinary course of business.

 

    	11

     

    

 

5.16
Taxes.

 

(i)
UMS has timely filed all federal, state, county, and local tax returns which it is required to file, and such returns are true
and correct. UMS has either paid or made adequate provision in the Interim Balance Sheet for all taxes and related interest, penalties,
assessments or deficiencies which have, or which have a reasonable probability of, becoming due pursuant to such returns or pursuant
to any assessment received with respect to such tax returns. All federal, state, county and local income, ad valorem, excise,
sales, use, gross receipts, employment security, payroll and other taxes and assessments of or against UMS which are due and payable
have been duly reported, fully paid and discharged. To UMS’s Knowledge, there are no unpaid taxes of UMS which are or which
could become a Lien on the properties and assets of UMS that are not provided for in the Interim Balance Sheet.

 

(ii)
The federal income tax returns of UMS for the prior five (5) years have not been audited by the United States Internal Revenue
Service. UMS has no unpaid tax liability with respect to any prior tax year. There are no tax examinations pending against UMS
and no unexpired waivers by UMS of any statute of limitations with respect to any taxes owed by UMS. Neither UMS nor is party
to any action or proceeding by any Governmental Entity for the collection or assessment of taxes and, to UMS’s Knowledge,
no such action or proceeding has been threatened.

 

5.17
Real Property; Leases; Other Personal Property.

 

(i)
UMS directly owns no real property.

 

(ii)
Exhibit 5.17 sets forth a complete and accurate description of each lease of material tangible personal property used by UMS in
the operation of the Business (i.e., machinery, equipment, furniture). Except as would not have a material adverse effect on the
Business, all of the leases listed on Exhibit 5.17 are valid, binding and enforceable according to their terms, and there
does not exist any default or event that with notice or lapse of time, or both, would constitute a default under any such leases.
No lease disclosed thereon requires that UMS obtain a third party consent or approval in connection with the transactions contemplated
by this Agreement.

 

(iii)
UMS is in possession of and has good title to, or has valid leasehold interest in or valid rights under contract to use, all tangible
personal property material to the Business, including all tangible personal property reflected on the Interim Balance Sheet and
material tangible personal property acquired since the Interim Balance Sheet date, excepting any property disposed of by UMS in
the ordinary course of business. All such tangible personal property is free and clear of all Liens, except for Permitted Liens.

 

5.18
Patents, Trademarks and Intellectual Property. UMS has no Patents, Trademarks or Intellectual property used in connection
with the Business.

 

5.19
Employee Welfare Benefit Plans. UMS has no Employee Welfare Benefit Plans.

 

5.20
Employee Pension Benefit Plans. UMS has no Employee Pension Benefit Plans.

 

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5.21
Environmental.

 

(i)
With respect to all applicable Environmental Laws,

 

(i)
To UMS’s Knowledge, UMS is conducting and carrying on the Business in substantial compliance with all applicable Environmental
Laws;

 

(ii)
To UMS’s Knowledge, all properties (real and personal) owned, leased or operated by UMS comply with all applicable Environmental
Laws;

 

(iii)
To UMS’s Knowledge, no real property owned, leased or operated by UMS is or has been in (or is contiguous to) a site that
is designated by any state, local or federal agency or body as a “Superfund” site or similar location requiring cleanup,
removal or remediation by reason of the release of Hazardous Substances;

 

(iv)
To UMS’s Knowledge, the products and services performed by UMS in connection with the Business comply with all applicable
Environmental Laws;

 

(v)
To UMS’s Knowledge, there has been no material generation, release, discharge, storage, disposal, transportation or containment
of any Hazardous Substances on or from (as applicable) any portion of the land or buildings owned, leased or used in the operation
of the Business by UMS, or on or from any portion of any other property contiguous thereto, in violation of any Environmental
Law.

 

(vi)
To UMS’s Knowledge, UMS has not received notice of any material past, present or future event, condition, circumstance,
activity, incident, or plan deriving from the operation of the Business, occurring on any property owned, leased or operated by
UMS or occurring on property contiguous thereto, which (A) prevents compliance by UMS with applicable Environmental Laws; (B)
gives rise to any common law or other legal liability of UMS under applicable Environmental Laws; or (C) otherwise forms the basis
of any claim, action, demand, suit, proceeding, hearing, study or investigation with respect to UMS based on the manufacture,
processing, distribution, use, emission, discharge, release or threatened release of any Hazardous Substance.

 

(ii)
To UMS’s Knowledge, there is not pending or threatened, and there has never been, any civil, criminal or investigative action,
suit, demand, claim, hearing, citation, notice, warning, demand letter, consent decree, notice of violation, investigation, judgment,
Order, fine, penalty or proceeding against UMS which materially adversely affects the Business and which involves any violation
or alleged violation of Environmental Laws, including, but not limited to, any of the foregoing: (i) the generation, release,
discharge, storage, disposal, transportation, containment or threatened release of any Hazardous Substance in violation of Environmental
Laws; (ii) the need for any assessment, containment, clean-up, removal or remediation related to any release, discharge, storage,
disposal, transportation, containment or threatened release of any Hazardous Substance; (iii) the presence of Hazardous Substances
in any products manufactured or built by UMS, or on any real property owned, leased, or operated by UMS; or (iv) the need for
work, repairs, construction, alterations or installations by reason of a violation of Environmental Law.

 

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5.22
Insurance. There are no claims in excess of Five Thousand United States Dollars ($5,000) under an insurance policy
owned by UMS.

 

5.23
Litigation. UMS is not subject to any Order affecting the Business or UMS’s right to carry on the Business as
conducted on the date of this Agreement. To UMS’s Knowledge, there are no proceedings pending before or threatened by any
Governmental Entity or arbitration board materially and adversely affecting the Business or UMS’s right to carry on the
Business as conducted on the date of this Agreement. To UMS’s Knowledge, no claim which has not ripened into litigation
has been made or threatened against UMS Stockholders, UMS that would materially and adversely affect the Business or UMS’s
right to carry on the Business as conducted on the date of this Agreement. To UMS’s Knowledge, no circumstances exist which
would give rise to the kind of claim described in the foregoing sentence of this Section 6.18.

 

5.24
Labor Matters. UMS is not a party to any collective bargaining agreement or other Contract with any labor union to
represent UMS’s employees and, to UMS’s Knowledge, no effort to represent UMS’s employees in bargaining is currently
being made. To UMS’s Knowledge, there is no pending or threatened labor dispute, strike or work stoppage affecting the Business.
During the last three (3) years, UMS has not suffered any strike or labor difficulty, made any commitment or incurred any liability
to any labor organization, through negotiations or otherwise, or received any demand or request for recognition as a bargaining
agent from any individual or organization purporting to represent any employees of UMS.

 

Article
VI

Talk REPRESENTATIONS AND WARRANTIES

 

Talk
hereby represents and warrants to the UMS Stockholders the following:

 

6.1
Authority, Organization and Standing. Talk is a corporation duly organized, validly existing and in good standing
under the laws of the State of Nevada, and has been duly authorized and qualified to do business in the State of Florida and every
other state in which it regularly does business. Talk has all requisite power and authority to execute, deliver and perform this
Agreement and to consummate the transactions contemplated hereby. All corporate, company or partnership acts required to be taken
by Talk to authorize the execution, delivery and performance of this Agreement and the obligations hereunder have been duly and
properly taken by the board of directors (or other applicable managing body) of Talk, and no further action on the part of Talk
or its equity holders is required. This Agreement has been duly executed and delivered by Talk and, assuming the due execution
and delivery of this Agreement by UMS, constitutes a legal, valid and binding obligation of Talk, enforceable against Talk in
accordance with its terms, subject to bankruptcy, insolvency, reorganization, moratorium and similar Laws of general application
relating to or affecting creditors’ rights and to general equity principles.

 

6.2
No Conflicts. Neither the execution nor delivery of this Agreement by Talk nor the fulfillment of Talk’s obligations
under this Agreement, will (a) conflict with or result in Talk’s material violation of or default under Talk’s Organizational
Documents or any material mortgage, indenture, loan agreement, lease, permit, concession, franchise agreement or license agreement
to which Talk is a party, (b) result in a material violation of any Law or Order applicable to Talk, (c) require Talk or its Affiliates
to obtain the consent, approval, authorization or Order of, or to make any filing, registration or qualification with, any Governmental
Entity or (d) result in the creation of any Lien upon the assets of Talk or its Affiliates which would reasonably be expected
to impair or delay Talk’s ability to consummate the transactions contemplated by this Agreement.

 

    	14

     

    

 

6.3
Governmental Authorizations. All authorizations, approvals, Licenses and designations of a Governmental Entity that
are necessary or required for the acquisition or ownership of the UMS Shares by Talk pursuant to this Agreement will have been
obtained and will be in effect at Closing.

 

6.4
No Brokers or Finders. There are no Brokers or Finders to whom fees may be owed in conjunction with the consummation
of this Agreement.

 

6.5
Legal Proceedings. There is a pending contract and indebtedness lawsuit against Talk filed on November 21, 2014, with
the 17th Judicial Circuit Court in Broward County, Florida (the “Court 1”). To Talk’s knowledge, there is no
threat against Talk or its affiliates, that could reasonably be expected to have an adverse effect on Talk’s ability to
consummate the transactions contemplated by this Agreement. To Talk’s Knowledge, there are no facts or circumstances that
would reasonably be expected to give rise to any action that would be required to be disclosed pursuant to this Section 6.5. There
are no other pending claims or litigation against Talk.

 

6.6
Talk’s Investigation.

 

(i)
Prior to entering into this Agreement, Talk was advised by its legal counsel and such other Persons it has deemed appropriate
concerning this Agreement, UMS, and in making the decision to enter into this Agreement and close the transactions contemplated
hereby, Talk has relied solely on its own independent due diligence investigation of UMS based upon information and materials
supplied to Talk by UMS and the representations and warranties made by UMS set forth in this Agreement. Talk is able to bear the
economic risks of its acquisition and ownership of the UMS Shares as such acquisition is contemplated by this Agreement. Notwithstanding
anything contained in this Agreement to the contrary, Talk acknowledges and agrees that UMS is not making, and Talk is not relying
upon, any representations or warranties whatsoever, express or implied, beyond those expressly given in Article V and Article
VI. Any claims Talk may have for breach of representation or warranty shall be based solely on the representations and warranties
of UMS set forth in Article V and Article VI. Talk further represents that UMS nor any other Person has made any representation
or warranty, express or implied, as to the accuracy or completeness of any information regarding UMS, or the transactions contemplated
by this Agreement not expressly set forth in this Agreement, and, except in the case of a Willful Breach, UMS or any other Person
will have or be subject to any liability to Talk or any other Person resulting from the distribution to Talk or its representatives,
or Talk’s use of, any such information, including any confidential memoranda relating to UMS, other publications or summary
business descriptions provided to Talk or its representatives and any other document or information in any form provided to Talk
or its representatives, whether orally or in writing, in any data room, management presentation, functional “break-out”
discussion, response to questions submitted on behalf of Talk or in any other form in connection with the sale of the UMS Shares
and the transactions contemplated hereby.

 

    	15

     

    

 

(ii)
Talk hereby acknowledges that it has had the opportunity to ask for and obtain legal counsel in connection with the transactions
contemplated hereby and that, notwithstanding any lack of legal counsel, Talk fully understands and has a level of financial and
legal sophistication enabling it to fully comprehend all of the information, terms and conditions contained herein.

 

6.7
Investment Intention. Talk is acquiring the UMS Shares for its own account, for investment purposes only and not with
a view to distribution (as such term is used in Section 2(11) of the Securities Act of 1933, as amended (the “Securities
Act”) thereof. Talk understands that the UMS Shares have not been registered under the Securities Act and cannot be sold
unless subsequently registered under the Securities Act or an exemption from such registration is available.

 

6.8
Financial Capability. Talk (a) will at the Closing have sufficient funds available to pay the Purchase Price and any
expenses incurred by Talk in connection with the transactions contemplated by this Agreement and (b) will at the Closing have
the resources and capabilities (financial or otherwise) to perform its obligations, both at and following the Closing, hereunder.

 

6.9
Qualification. Talk will at the Closing be qualified to own the UMS Shares in all jurisdictions in which such qualification
is necessary in connection with the operation of Business, and the Closing of the transactions contemplated by this Agreement
will not cause Talk to be disqualified as such an owner.

 

Article
VII

COVENANTS

 

7.1
Cooperation. UMS and Talk shall as promptly as reasonably practicable coordinate their efforts and shall cooperate
with each other and use their respective commercially reasonable efforts to satisfy the conditions and obligations specified in
Article IV and to effect the sale of the UMS Shares and other transactions contemplated by this Agreement. Without limiting the
foregoing, such conditions and obligations shall include the negotiation of the Remaining Transaction Documents and the delivery
of the closing deliverables.

 

7.2
Further Assurances. From time to time following the Closing, Talk, Lee or UMS (or their respective Affiliates), at
the request of the other applicable Party and without further consideration, shall execute and deliver to such requesting Party
such documents and instruments and take such other action (but without incurring any material financial obligation) as such requesting
Party may reasonably request in order to close more fully and effectively the transactions contemplated hereby. Without limiting
the generality of the foregoing, such documents and instruments shall include documents and instruments required by any lender
or counterparty of UMS.

 

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7.3
Confidentiality. This Agreement and the transactions contemplated hereby and the terms hereof shall be held confidential
by the Parties. Notwithstanding the foregoing, the Parties and their Affiliates shall be entitled to disclose this Agreement and
its terms: (a) when required by applicable Law, (b) when required by the rules, regulations or process of any stock exchange or
Governmental Entity having jurisdiction over a Party or its Affiliates, (c) in conjunction with any planned financing (provided
recipients of any confidential information agree in writing to maintain the confidentiality of such information) or (d) if this
information becomes available to the public other than through actions in violation of this Agreement by the Party desiring to
make such disclosure.

 

7.4
Securities Law Violation Repurchase Right. UMS shall maintain the right to repurchase or cause UMS to redeem, pursuant
to this Agreement and/or the Stockholders’ Agreement, the entire UMS Shares from Talk for fair market value upon Talk or
any of Talk’s Affiliates being convicted, indicted, or formally investigated by the SEC or any other Governmental Entity
in connection with the violation of any Laws relating to the purchase, ownership or distribution of securities (including the
UMS Shares) (any such event, a “Talk Securities Law Violation”)

 

7.5
Survival. The representations, warranties, covenants and agreements of UMS, Seller and Talk contained in this Agreement
will survive the Closing as follows:

 

(i)
until the expiration of all applicable statutes of limitation (including all periods of extension, whether automatic or permissive),
with respect to the representations and warranties contained in Sections 5.1 (Authority, Organization and Standing), 5.2 (Title),
5.4 (No Brokers or Finders), 5.8 (Authority, Organization and Standing), 5.9 (Articles, Bylaws and Minutes), 6.1 (Authority, Organization
and Standing), 6.4 (No Brokers or Finders), 6.7 (Investment Intention) and 6.8 (Financial Capability) (collectively, the “Fundamental
Representations and Warranties”);

 

(ii)
with respect to all other representations and warranties, until the date that is twelve (12) months following the Closing Date;

 

(iii)
until sixty (60) days following the Closing with respect to the covenants and agreements contained in this Agreement to be performed
at or prior to the Closing; and

 

(iv)
until sixty (60) days following the last date on which a covenant or agreement is to be performed or, if no such date is specified,
indefinitely, with respect to the covenants and agreements contained in this Agreement to be performed after the Closing;

 

provided,
that any representation, warranty, covenant or agreement that would otherwise terminate in accordance with clause (i), (ii), (iii)
or (iv) above will continue to survive if a Claim Notice or Indemnity Notice (as applicable) shall have been timely given under
this Article VII on or prior to such termination date, but only to the extent of such Claim Notice or Indemnity Notice and only
until the related claim for indemnification has been satisfied or otherwise resolved as provided in this Article VII. Any claim
not asserted in accordance with this Article VII on or prior to the expiration of the applicable survival period will be irrevocably
and unconditionally released and waived.

 

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7.6
Indemnification.

 

(i)
Subject to the provisions of this Agreement, from and after the Closing, UMS, shall indemnify the Talk Indemnified Parties in
respect of, and hold each of them harmless from and against, any and all Losses suffered, incurred or sustained by any of them
or to which any of them become subject, resulting from, arising out of or attributable to (i) any failure of any representation
or warranty made by UMS contained herein to be true and correct, or (ii) the nonfulfillment of or failure to perform any covenant
or agreement on the part of UMS contained in this Agreement.

 

(ii)
Subject to the provisions of this Agreement, from and after the Closing, Talk shall indemnify UMS and UMS Stockholders in respect
of, and hold each of them harmless from and against, any and all Losses suffered, incurred or sustained by any of them or to which
any of them become subject, resulting from, arising out of or attributable to (i) any failure of any representation or warranty
made by Talk contained herein to be true and correct, or (ii) the nonfulfillment of or failure to perform any covenant or agreement
on the part of Talk contained in this Agreement.

 

(iii)
Subject to the provisions of this Agreement, no Party shall have indemnification obligations for any claim under Section 7.6 that
is a de minimis claim.

 

7.7
Method of Asserting Claims. All claims for indemnification by any Indemnified Party under this Article VII will be
asserted and resolved as follows:

 

(i)
In the event any claim or demand in respect of which an Indemnified Party might seek indemnity under this Article VII is asserted
against or sought to be collected from such Indemnified Party by a Person other than UMS or Talk or any Affiliate of UMS or of
Talk (a “Third Party Claim”), the Indemnified Party shall deliver a claim notice with reasonable promptness to the
Indemnifying Party; provided, however, that the failure of the Indemnified Party to give timely notice or to make timely delivery
of any such notice shall not relieve the Indemnifying Party of its indemnification obligations with respect to such claim, suit
or proceeding except to the extent that such Indemnifying Party has been actually prejudiced thereby. The Indemnifying Party will
notify the Indemnified Party as soon as reasonably practicable within the Dispute Period (i) whether the Indemnifying Party disputes
its Liability to the Indemnified Party under this Article VII and (ii) whether the Indemnifying Party desires, at its sole cost
and expense, to defend the Indemnified Party against such Third Party Claim.

 

(i)
If the Indemnifying Party notifies the Indemnified Party within the Dispute Period that the Indemnifying Party desires to defend
the Indemnified Party with respect to the Third Party Claim pursuant to this Agreement, then the Indemnifying Party will have
the right to defend against, negotiate, settle or otherwise deal with, with counsel of its choice that is reasonably satisfactory
to the Indemnified Party, at the sole cost and expense of the Indemnifying Party, such Third Party Claim by appropriate proceedings,
which proceedings will be actively and diligently prosecuted by the Indemnifying Party to a final conclusion or will be settled
at the discretion of the Indemnifying Party (but only with the consent of the Indemnified Party, which consent will not be unreasonably
withheld, provided that the consent of the Indemnified Party shall not be required if the settlement imposes only monetary obligations
and includes a complete release of the Indemnified Party from further Liability). The Indemnifying Party will have full control
of such defense and proceedings to the extent they relate to the Third Party Claim, including (except as provided in the immediately
preceding sentence) any settlement thereof; provided, however, that the Indemnified Party may, at the sole cost and expense of
the Indemnified Party, at any time prior to the Indemnifying Party’s delivery of the notice referred to in this Agreement,
file any motion, answer or other pleadings or take any other action that the Indemnified Party reasonably believes to be necessary
or appropriate to protect its interests; and provided further, that if requested by the Indemnifying Party, the Indemnified Party
will, at the sole cost and expense of the Indemnifying Party, provide reasonable cooperation to the Indemnifying Party in contesting
any Third Party Claim that the Indemnifying Party elects to contest. The Indemnified Party may retain separate counsel to represent
it in, but not control, any defense or settlement of any Third Party Claim controlled by the Indemnifying Party) at the Indemnified
Party’s sole cost and expense. Notwithstanding the foregoing, the Indemnified Party may, by written notice to the Indemnifying
Party, retain or take over the control of the defense or settlement of any Third Party Claim the defense of which the Indemnifying
Party has elected to control if the Indemnified Party irrevocably waives its right to indemnity under this Agreement and fully
releases the Indemnifying Party with respect to such Third Party Claim.

 

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(ii)
If the Indemnifying Party fails to notify the Indemnified Party within the Dispute Period that the Indemnifying Party desires
to defend the Third Party Claim, then the Indemnified Party will have the right to defend against, negotiate, settle or otherwise
deal with, at the reasonable cost and expense of the Indemnifying Party, the Third Party Claim by appropriate proceedings, which
proceedings will be actively and diligently prosecuted by the Indemnified Party to a final conclusion in good faith or will be
settled in good faith at the discretion of the Indemnified Party (with the consent of the Indemnifying Party, which consent will
not be unreasonably withheld). The Indemnified Party will have full control of such defense and proceedings, including (except
as provided in the immediately preceding sentence) any settlement thereof; provided, however, that if requested by the Indemnified
Party, the Indemnifying Party will, at the cost and expense of the Indemnifying Party, provide reasonable cooperation to the Indemnified
Party and its counsel in contesting any Third Party Claim which the Indemnified Party is contesting. Notwithstanding the foregoing
provisions of this Agreement, if the Indemnifying Party has notified the Indemnified Party within the Dispute Period that the
Indemnifying Party disputes its Liability hereunder to the Indemnified Party with respect to such Third Party Claim and if such
Dispute is resolved in favor of the Indemnifying Party, the Indemnifying Party will not be required to bear the costs and expenses
of the Indemnified Party’s defense or of the Indemnifying Party’s participation therein at the Indemnified Party’s
request, and the Indemnified Party will reimburse the Indemnifying Party in full for all reasonable costs and expenses incurred
by the Indemnifying Party in connection with such Actions. The Indemnifying Party may retain separate counsel to represent it
in, but not control, any defense or settlement controlled by the Indemnified Party and the Indemnifying Party will bear its own
costs and expenses with respect to such participation.

 

(iii)
If the Indemnifying Party notifies the Indemnified Party that it does not dispute its Liability to the Indemnified Party with
respect to the Third Party Claim or fails to notify the Indemnified Party within the Dispute Period whether the Indemnifying Party
disputes its Liability to the Indemnified Party with respect to such Third Party Claim, the Loss of the Indemnified Party arising
from such Third Party Claim will be conclusively deemed a Liability of the Indemnifying Party and the Indemnifying Party shall
pay the amount of such Loss to the Indemnified Party within ten (10) days following written demand by the Indemnified Party following
the final determination thereof in accordance with the procedures set forth in this Agreement. If the Indemnifying Party has timely
disputed its Liability with respect to such claim, the Indemnifying Party and the Indemnified Party will proceed in good faith
to negotiate a resolution of such dispute (including by mediation or arbitration, if necessary) while simultaneously defending
such Third Party Claim.

 

(ii)
In the event any Indemnified Party should have a claim against any Indemnifying Party that does not involve a Third Party Claim,
the Indemnified Party shall deliver an Indemnity Notice with reasonable promptness to the Indemnifying Party; provided, that the
failure of the Indemnified Party to give timely notice or to make timely delivery of any such notice shall not relieve the Indemnifying
Party of its indemnification obligations with respect to such claim, suit or proceeding except to the extent that such Indemnifying
Party has been actually prejudiced thereby. The Indemnifying Party will notify the Indemnified Party as soon as reasonably practicable
within the Dispute Period whether the Indemnifying Party disputes its Liability to the Indemnified Party. If the Indemnifying
Party notifies the Indemnified Party that it does not dispute the claim described in such Indemnity Notice or fails to notify
the Indemnified Party within the Dispute Period whether the Indemnifying Party disputes the claim described in such Indemnity
Notice, the Loss of the Indemnified Party arising from the claim specified in such Indemnity Notice will be conclusively deemed
a Liability of the Indemnifying Party and the Indemnifying Party shall pay the amount of such Loss to the Indemnified Party within
ten (10) days following written demand by the Indemnified Party following the final determination thereof. If the Indemnifying
Party has timely disputed its Liability with respect to such claim, the Indemnifying Party and the Indemnified Party will proceed
in good faith to negotiate a resolution of such dispute (including by mediation or arbitration, if necessary).

 

7.8
Other Limitations.

 

(i)
Talk acknowledges and agrees that UMS or UMS Stockholders shall not have any Liability under any provision of this Agreement for
any Loss to the extent that such Loss results directly from an action taken by Talk or any other Person (other than UMS in breach
of this Agreement) after the Closing. The Parties shall take and shall use commercially reasonable efforts to cause their respective
Affiliates to take all reasonable steps to mitigate any Loss upon becoming aware of any event which would reasonably be expected
to, or does, give rise thereto.

 

(ii)
The Indemnified Parties, as a whole, shall not be entitled to recover from an Indemnifying Party under this Agreement more than
once with respect to the same Losses imposed on, sustained, incurred or suffered by, or asserted against, the Indemnified Parties,
as a whole (notwithstanding any such Loss being asserted or claimed with regard to various provisions of this Agreement).

 

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7.9
Tax Treatment of Indemnity Payments. UMS and Talk agree to treat any indemnity payment made pursuant to this Agreement
as an adjustment to the Purchase Price for federal, state, local and foreign income tax purposes.

 

7.10
Exclusive Remedy. Except in cases of (a) Willful Breach or (b) a Talk Securities Law Violation, recovery pursuant to
this Agreement shall constitute the Parties’ sole and exclusive remedy for any and all Losses relating to or arising from
this Agreement and the transactions contemplated hereby, and each Party hereby waives and releases, to the fullest extent permitted
by applicable Law, any and all other rights, remedies, claims and causes of action, whether in contract, tort or otherwise, known
or unknown, foreseen or unforeseen, which exist or may arise in the future, arising under or based upon any federal, state or
local Law, that any Party may have against the other Parties in respect of any breach of or default under this Agreement; provided,
however, that the foregoing shall not be deemed to deny any Party equitable remedies (including injunctive relief or specific
performance) when any such remedy is otherwise available under this Agreement or applicable Law. Except in cases of Willful Breach
or a Talk Securities Law Violation, the Parties acknowledge and agree that all representations and warranties set forth in this
Agreement are contractual in nature only and subject to the sole and exclusive remedies set forth herein.

 

Article
VIII

TERMINATION

 

8.1
Termination. This Agreement may, by written notice to UMS, UMS Stockholders or Talk (as applicable), be terminated
prior to Closing:

 

(i)
By mutual written agreement of UMS, UMS Stockholders and Talk;

 

(ii)
By UMS, if any representation or warranty made by Talk in this Agreement shall fail to be true or correct or if Talk has failed
to comply with any covenant or agreement applicable to Talk, in each case, that would cause any of the conditions set forth in
Section 4.2 not to be satisfied, and such condition is incapable of being satisfied by the Termination Date; provided, that UMS’s
right to terminate this Agreement shall not be available to UMS if any representation or warranty made by UMS in this Agreement
shall fail to be true or correct in any material respect or if UMS is in material breach of any covenant or agreement contained
in this Agreement; provided, further, that for the avoidance of doubt, the failure of Talk to fund the Purchase Price at the Closing
shall constitute a breach of this Agreement by Talk giving UMS the right to terminate the Agreement;

 

(iii)
By Talk, if any representation or warranty made by UMS in this Agreement shall fail to be true or correct or if UMS has failed
to comply with any covenant or agreement applicable to UMS, in each case, that would cause any of the conditions set forth in
Section 4.3 not to be satisfied, and such condition is incapable of being satisfied by the Termination Date; provided, that Talk’s
right to terminate this Agreement pursuant to this Section shall not be available to Talk if any representation or warranty made
by Talk in this Agreement shall fail to be true or correct in any material respect or if Talk is in material breach of any covenant
or agreement contained in this Agreement;

 

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(iv)
By UMS, if at any time after the date hereof, Talk or any of Talk’s Affiliates incur or are affected by a Talk Securities
Law Violation;

 

(v)
By either UMS or Talk at any time after December 15, 2015  (the “Termination Date”), upon notification to the
other Parties by the terminating Party if the Closing shall not have occurred on or before the Termination Date and such failure
to consummate the Closing on or before the Termination Date was not primarily caused by a breach of this Agreement by the terminating
Party; or

 

(vi)
By either UMS or Talk if there shall be in effect a final non-appealable Order of a Governmental Entity of competent jurisdiction
restraining, enjoining or otherwise prohibiting the consummation of the transactions contemplated hereby; it being agreed that
the Parties shall promptly appeal any adverse determination which is not non-appealable (and pursue such appeal with reasonable
diligence); provided, however, that the right to terminate this Agreement shall not be available to a Party if such Order was
primarily due to the failure of such Party to perform any of its obligations under this Agreement.

 

8.2
Obligations Subsequent to Termination. If this Agreement is terminated, this Agreement and all rights and obligations
of the Parties under this Agreement shall automatically end without Liability against any Party or its Affiliates, except that
(a) the provisions in Section 7.3, this Article VIII, Article X (except for Section 10.9) will remain in full force and survive
any termination of this Agreement and (b) nothing in this Article VIII shall be deemed to release any Party from any Liability
for (i) Willful Breach by the applicable Party or (ii) any Loss arising from a Talk Securities Law Violation.

 

Article
IX

TAX MATTERS

 

9.1
Taxes. Notwithstanding anything to the contrary elsewhere in this Agreement, each of UMS, UMS Stockholders and Talk
shall be responsible for their own transfer taxes, together with any penalties or interest thereon, imposed upon each respective
Party or its respective Affiliates by applicable Law.

 

9.2
Allocations. Except as otherwise provided in this Agreement, whenever it is necessary for purposes of this Agreement
to determine the portions of any taxes with respect to the ownership of the UMS Shares which are allocable to any taxable year
or period beginning on or before, and ending after, the Closing Date, the determination shall be made on a closing of the books
basis.

 

9.3
Cooperation. UMS Stockholders and Talk shall reasonably cooperate with each other in the conduct of any tax contest
or other proceeding involving or otherwise relating to UMS or the UMS Shares with respect to any tax, and each shall execute and
deliver such powers of attorney and other documents as are necessary to carry out the intent of this Section 9.3.

 

    	21

     

    

 

Article
X

MISCELLANEOUS

 

10.1
Assignment. This Agreement and the rights and obligations hereunder may not be assigned or transferred by any Party
without the prior written consent of the other Parties and any attempt to do so will be void.

 

10.2
No Third-Party Beneficiaries. This Agreement is for the sole benefit of the Parties and their successors and permitted
assigns and nothing herein expressed or implied shall give or be construed to give to any Person, other than the Parties and their
successors and permitted assigns, any legal or equitable rights hereunder, except for the rights of the Indemnified Parties to
indemnity pursuant to Article VII.

 

10.3
Amendments and Waivers. No amendment or waiver in respect of this Agreement shall be effective unless, in the case
of an amendment, such amendment shall be in writing, designated an amendment and signed by the Parties, and, in the case of a
waiver, such waiver shall be in writing, designated a waiver, specifically refer to this Agreement and be signed by the Party
which is entitled to the benefit of the term or condition being waived. No waiver by any Party of any term or condition of this
Agreement, in any one or more instances, shall be deemed to be or construed as a waiver of the same or any other term or condition
of this Agreement on any future occasion. All remedies, whether under this Agreement or by Law or otherwise afforded, will be
cumulative and not alternative.

 

10.4
Notices. All notices, requests, demands and other communications hereunder shall be in writing and personally delivered,
sent by certified mail or overnight courier to the following addresses:

 

If
to Talk:

 

iTalk,
Inc.

100
E. Linton Blvd., Suite 144-A

Delray
Beach, FL 33483

Attn:
David F. Levy, President

Fax:
954 337 2797

email:
david@italkmobility.com

 

If
to Lee and/or UMS:

 

Kil
W. Lee

6140
Northbelt Parkway,

Norcross,
GA 30071dlee@unitedmobilesolutions.com

 

With
a copy to:

 

Mitch
Sacks.

mesapartners18@gmail.com

 

Mintz
& Fraade, P.C.

488
Madision Avenue, Suite 1100

New
York, NY 10022

Attn:
Frederick M. Mintz, Esq.

Fax:
212-486-0701

Email:
fmm@mintzfraade.com

 

    	22

     

    

 

Any
Party hereto may, from time to time, give to the other Party written notice, in the manner provided for herein, of some other
address to which communications to such Party shall be sent, in which event notices to such Party shall be sent to such address.
All notices shall be deemed to have been duly given: (a) when served personally on the Party to whom notice is to be given, (b)
when sent via facsimile transmission to the facsimile number given above with written (which may include electronic) confirmation
of transmission, and (c) three (3) Business Days following the day sent by Federal Express or similar reputable express courier
to the address given above.

 

10.5
Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed an original, but
all of which shall only constitute one instrument. To facilitate the execution and delivery of this Agreement, the Parties may
execute and exchange counterparts of the signature pages by facsimile or e-mail, and the signature page of any Party to any counterpart
may be appended to any other counterpart.

 

10.6
Entire Agreement. This Agreement, together with all Exhibits, Schedules and the Disclosure Schedule hereto, contains
the entire agreement and understanding between the Parties with respect to the subject matter hereof and supersedes all prior
agreements and understandings, whether written or oral, relating to such subject matter. EACH PARTY ACKNOWLEDGES AND AGREES THAT
IT WAS REPRESENTED BY COUNSEL IN CONNECTION WITH THE NEGOTIATION AND EXECUTION OF THIS AGREEMENT, that
the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be
employed in the interpretation of this Agreement or any exhibits, schedules or amendments hereto AND THAT IT HAS NOT BEEN
INDUCED TO ENTER INTO THIS AGREEMENT, OR ANY DOCUMENTS REFERRED TO IN THIS AGREEMENT, IN RELIANCE UPON, NOR HAS IT BEEN GIVEN,
ANY WARRANTY, REPRESENTATION, STATEMENT, AGREEMENT OR UNDERTAKING OF ANY NATURE WHATSOEVER, OTHER THAN AS EXPRESSLY SET OUT IN
THIS AGREEMENT OR ANY DOCUMENTS REFERRED TO IN THIS AGREEMENT.

 

10.7
Expenses. In the event a dispute arises between the Parties under this Agreement and suit is instituted, the prevailing
Party shall be entitled to recover its costs and reasonable attorneys’ fees from the non-prevailing Party. As used herein,
costs and reasonable attorneys’ fees include any costs and attorneys’ fees in any appellate proceeding.

 

10.8
Severability. If any term or provision hereof is illegal or invalid for any reason under Law, and if the rights or
obligations of any Party under this Agreement will not be materially and adversely affected thereby, (a) such term or provision
will be fully severable, (b) this Agreement will be construed and enforced as if such illegal, invalid or unenforceable term or
provision had never comprised a part hereof and (c) the remaining provisions of this Agreement will remain in full force and effect
and will not be affected by the illegal, invalid or unenforceable term or provision or by its severance here from.

 

    	23

     

    

 

10.9
Specific Performance. The Parties acknowledge and agree that irreparable damage would occur in the event that any of
the provisions of this Agreement were breached. It is accordingly agreed that, without the necessity of posting bond or other
undertaking, the Parties shall be entitled to an injunction or injunctions to remedy any breach of this Agreement and to enforce
specifically the terms and provisions hereof in accordance with its terms, this being in addition to any other remedy to which
such Party is entitled under this Agreement or otherwise. In the event that any arbitration, action or other proceeding should
be brought in equity to enforce any of the provisions of this Agreement, no Party will allege, and the Parties hereby waive the
defense, that there is an adequate remedy under applicable Law.

 

10.10
Press Release. Except as required by applicable Law (in which case, to the extent practicable and not prevented by
applicable Law, the other Parties shall be given (a) not less than twenty-four (24) hours’ prior notice of the content of
such an announcement and (b) the opportunity to comment upon such announcement (which such comments shall be accepted in the reasonable
discretion of the Party making such announcement)), no Party will, and each Party shall use commercially reasonable efforts to
cause its Affiliates not to, without the prior written approval of Talk and UMS (which approval shall not be unreasonably withheld),
issue or make any reports, statements or releases concerning this Agreement or the transactions contemplated hereby to the public
or other third parties.

 

10.11
No Reliance. No third party, other than a successor by operation of Law or an assignee permitted by this Agreement,
is entitled to rely on any of the representations, warranties and agreements contained in this Agreement. No Party assumes any
Liability to any third party, other than an assignee permitted by this Agreement or any Person entitled to indemnity under this
Agreement, due to any reliance on the representations, warranties and agreements contained in this Agreement.

 

10.12
Governing Law; Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of the State
of Florida, applicable to a contract executed and performed in such state, without giving effect to any conflicts of law principles
that would refer any such matter to the laws of a different jurisdiction. Each party hereto irrevocably submits to the exclusive
jurisdiction of any state or federal court located within the County of Broward in the State of Florida for the purposes of any
suit, action or other proceeding arising out of this Agreement or any transaction contemplated hereby, and agrees to commence
any such action, suit or proceeding only in such courts.

 

10.13
Notices:  A facsimile copy; email PDF; other form of email and/or electronic mail, that is acknowledged by return email
of an executed copy of this Agreement; an original delivered copy of this Agreement; shall all be treated the same and have the
same binding legal full force and effect as an original executed copy delivered by certified mail.

 

    	24

     

    

 

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

 

	 	ITALK, INC.
	 	 
	 	By:	 
	 	 	David F. Levy
	 	 	As President 
	 	 	 

	 	Date: _________________________
	 	 	 
	 	 
	 	Kil W. Lee

 

	 	UNITED MOBILE SOLUTIONS CORP. and its subsidiaries
    and businesses as described in Section 2.1 above.
	 	 
	 	By:	 
	 	 	Kil W. Lee
	 	 	As President and authorized signatory
	 	 	 
	 	Date: _________________________

 

    	25

     

    

 

SCHEDULE
2.2

CAPITALIZATION
TABLE POST MERGER

 

	 	 	 	 	 	Number	 
	 	 	Percent	 	 	Of
    Shares	 
	 	 	 	 	 	 	 
	UMS
    Stockholders Total	 	 	85.0	%	 	 		 
	David Lee & Family	 	 	77.5	%	 	 		 
	Empire Global	 	 	 	 	 	 		 
	Advisory Services, LLC	 	 	7.5	%	 	 		
	 	 	 	 	 	 	 		 
	Total	 	 	85.0	%	 	 		 
	 	 	 	 	 	 	 	 	 
	Talk Stockholders
    Total	 	 	15.0	%	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Total	 	 	15.0	%	 	 	 	 
	Total Pre Warrants	 	 	100.0	%	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Warrants to Mesa Partner*	 	 	4.9	%	 	 	 	 
	Warrants to Andora Holdings, LLC*	 	 	4.9	%	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Talk Management Options**	 	 	5	%	 	 	 	 

  

*Exercisable
for five years from the date of the execution of the Definitive Agreement at a total purchase price of $1,000.00. Each Warrant
gives the right to acquire 4.9% of the fully diluted shares Outstanding at the date of exercise.

 

**Management
Option Plan to be set up post-closing and Options allocated by and to David Levy, as Chairman of the Options Committee.

 

Exhibit
3.2.i - Any executed agreements and other instruments to be negotiated and executed by UMS Stockholders or UMS

 

Exhibit
5.12. UMS has no employees except as set forth below:

 

Exhibit
5.17 A complete and accurate description of each lease of material tangible personal property used by UMS in the operation of
the Business is set forth below:

 

    	26ex41to8k09196003_09242015.htm

Exhibit 4.1

 

 

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY STATE SECURITIES LAW AND, ACCORDINGLY, MAY NOT BE PLEDGED, SOLD, ASSIGNED OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT WITH RESPECT THERETO UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAW, OR UNLESS THE COMPANY RECEIVES AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY, THAT SUCH REGISTRATION IS NOT REQUIRED.

 

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF ARE SUBJECT TO AN INVESTOR RIGHTS AGREEMENT, DATED AS OF THE DATE HEREOF, BY AND BETWEEN THE COMPANY AND THE ORIGINAL HOLDER HEREOF (THE “INVESTOR RIGHTS AGREEMENT”). NO TRANSFER, SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION OR OTHER DISPOSITION OF THIS WARRANT OR THE SECURITIES ISSUABLE UPON EXERCISE HEREOF MAY BE MADE EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF SUCH INVESTOR RIGHTS AGREEMENT. A COPY OF THE INVESTOR RIGHTS AGREEMENT SHALL BE FURNISHED WITHOUT CHARGE BY THE COMPANY TO THE HOLDER HEREOF UPON REQUEST.

 

REMARK MEDIA, INC.

 

WARRANT TO PURCHASE COMMON STOCK

 

September 24, 2015

 

FOR VALUE RECEIVED, REMARK MEDIA, INC., a Delaware corporation (the “Company”), hereby certifies that, subject to the terms and conditions hereof, [HOLDER] (the “Holder”), its designees or permitted assigns, is entitled to purchase from the Company [SHARES] ([SHARE NUMBER]) fully paid and nonassessable shares (as adjusted pursuant to the terms hereof, the “Warrant Shares”) of the Company’s common stock, $0.001 par value per share (the “Common Stock”), at a price per Warrant Share of $9.00 (the “Warrant Price”), payable in accordance with Section 1(c) hereof.

 

This Warrant is issued by the Company in connection with that certain Unit Purchase Agreement, dated as of August 18, 2015 (together with the schedules and exhibits thereto, the “Purchase Agreement”), by and among the Company, Vegas.com, LLC (“VDC”), and the sellers listed on the signature page thereto, pursuant to which the Company has agreed to purchase all of the outstanding equity interests of VDC.  Except as otherwise specified herein, capitalized terms in this Warrant shall have the meanings set forth in the Purchase Agreement.

 

This Warrant is issued subject to the following terms and conditions:

 

1.             Term and Exercise of Warrants; Issuance of Certificates.

 

(a)           The Holder may exercise this Warrant at any time or from time to time, for all or any part of the Warrant Shares (but not for a fraction of a share) that may be purchased hereunder, as that number may be adjusted pursuant to Section 3 below, prior to 5:00 p.m. Eastern Time on September 24, 2020 (the “Expiration Date”).  The Company agrees that the Warrant Shares purchased under this Warrant shall be and are deemed to be issued to the Holder as the record owner of such Warrant Shares as of the close of business on the date on which this Warrant shall have been surrendered, properly endorsed, the completed and executed Form of Subscription in the form attached hereto delivered, and payment made for such Warrant Shares made in accordance with Section 1(c) below, or the date on which the Company Option Notice is delivered in accordance with Section 1(d) below (each, a “Date of Exercise”).  Certificates for the Warrant Shares so purchased, together with any other securities or property to which the Holder is entitled upon such exercise, shall be delivered to the Holder by the Company at the Company’s expense as soon as practicable after the rights represented by this Warrant have been so exercised, but in any event not later than ten (10) days following the Date of Exercise (except as provided in Section 1(d) below).  Each stock certificate so delivered shall be registered in the name of the Holder and issued with legends in substantially the form placed on the front of this Warrant.  In case of a purchase of less than all the Warrant Shares that may be purchased under this Warrant, the Company shall cancel this Warrant and execute and deliver to the Holder within a reasonable time a new Warrant or Warrants of like tenor for the balance of the Warrant Shares purchasable under this Warrant.

 

  

  

  

 

(b)           The Company’s obligations to issue and deliver Warrant Shares in accordance with the terms hereof are absolute and unconditional, irrespective of any action or inaction by the Holder to enforce the same.  Nothing herein shall limit the Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver Warrant Shares upon exercise of this Warrant as required pursuant to the terms hereof.

 

(c)           The Holder shall pay the Warrant Price by instructing the Company to issue Warrant Shares then issuable upon exercise of all or any part of this Warrant on a net basis only, such that, without payment of any cash consideration or other immediately available funds, the Holder shall surrender this Warrant in exchange for the number of Warrant Shares as is computed using the following formula:

 

Where

	
  

	
X = the number of Warrant Shares to be issued to the Holder;

	
  

	
Y = the total number of Warrant Shares for which the Holder has elected to exercise this Warrant pursuant to Section 1(a);

	
  

	
A = the Fair Market Value (as defined below) of one Warrant Share as of the applicable Date of Exercise; and

	
  

	
B = the Warrant Price.

  

2

  

 

For purposes of this Warrant, “Fair Market Value” means (a) the closing price of the Common Stock on the applicable date reported on The Nasdaq Stock Market LLC or such other principal national securities exchange in the United States on which it is then listed, or, if such date is not a trading day, the last prior day on which the Common Stock was so traded; (b) if the Common Stock is not so listed, the mean between the highest bid and lowest asked prices per share of the Common Stock reported on the OTC Bulletin Board, the Pink OTC Markets or similar quotation system or association on the applicable date; or (c) if such bid and asked prices are not available, such value determined by the Company’s Board of Directors (the “Board”) in good faith.

 

(d)           If at any time following the date hereof the closing price of the Common Stock is greater than or equal to $14.00 (to be adjusted in the event of any split, subdivision or combination of the Common Stock, or any similar corporate event, in order to prevent dilution or enlargement of the Holder’s rights), the Company shall have the right to exercise of all or any portion of this Warrant in accordance with Section 1(a) hereof in its sole discretion (the “Company Option”). The Company Option shall be deemed exercised upon delivery to the Holder of a written notice specifying the number of Warrant Shares with respect to which this Warrant is being exercised (the “Company Option Notice”). The exercise of a Company Option shall be irrevocable and shall be deemed effective at the close of business on the date on which the Company Option Notice is delivered. The Holder agrees to deliver the original signed copy of this Warrant to the Company promptly after delivery of the Company Option Notice, after which the Company shall deliver to the Holder certificates for the Warrant Shares so purchased, together with any other securities or property to which the Holder is entitled upon such exercise, at the Company’s expense as soon as practicable, but in any event not later than ten (10) days thereafter.

 

2.             Shares to be Fully Paid; Reservation of Shares.  The Company covenants and agrees that all Warrant Shares, will, upon issuance and payment of the Warrant Price in accordance with Section 1(c), be duly authorized, validly issued, fully paid and nonassessable, and free of all preemptive rights, liens and encumbrances, except for restrictions on transfer provided for herein and in the Investor Rights Agreement.  The Company shall at all times reserve and keep available out of its authorized and unissued Common Stock, solely for the purpose of providing for the exercise of the rights to purchase all Warrant Shares granted pursuant to this Warrant, such number of shares of Common Stock as shall, from time to time, be sufficient therefor.

 

3.             Adjustment of Warrant Price and Number of Shares.  The Warrant Price and the total number of Warrant Shares shall be subject to adjustment from time to time upon the occurrence of certain events described in this Section 3.

 

(a)           Merger, Sale of Assets, Etc.  If at any time while this Warrant, or any portion hereof, is outstanding and unexpired there shall be (i) a reorganization (other than a combination, reclassification, exchange or subdivision of shares otherwise provided for herein), (ii) a merger or consolidation of the Company with or into another corporation, partnership, limited liability company, or other entity in which the Company is not the surviving entity, or a merger in which the Company is the surviving entity but the shares of the Company’s capital stock outstanding immediately prior to the merger are converted by virtue of the merger into other property, whether in the form of securities, cash, or otherwise, or (iii) a sale or transfer of the Company’s properties and assets as, or substantially as, an entirety to any other person, then, as a part of such reorganization, merger, consolidation, sale or transfer, lawful provision shall be made so that the Holder of this Warrant shall thereafter be entitled to receive upon exercise of this Warrant, during the period specified herein and upon payment of the Warrant Price, the number of shares of stock or other securities or property of the successor corporation resulting from such reorganization, merger, consolidation, sale or transfer that a holder of the Warrant Shares deliverable upon exercise of this Warrant would have been entitled to receive in such reorganization, consolidation, merger, sale or transfer if this Warrant had been exercised immediately before such reorganization, merger, consolidation, sale or transfer, all subject to further adjustment as provided in this Section 3.  If the per share consideration payable to the Holder for securities in connection with any such transaction is in a form other than cash or marketable securities, then the value of such consideration shall be determined in good faith by the Board.  In all events, appropriate adjustment (as determined in good faith by the Board) shall be made in the application of the provisions of this Warrant with respect to the rights and interests of the Holder after the transaction, to the end that the provisions of this Warrant shall be applicable after that event, as near as reasonably may be, in relation to any shares or other property deliverable after that event upon exercise of this Warrant.

 

  

3

  

 

(b)           Reclassification, Etc.  If the Company, at any time while this Warrant or any portion hereof remains outstanding and unexpired, by reclassification of securities or otherwise, shall change any of the securities as to which purchase rights under this Warrant exist into the same or a different number of securities of any other class or classes, this Warrant shall thereafter represent the right to acquire such number and kind of securities as would have been issuable as the result of such change with respect to the securities that were subject to the purchase rights under this Warrant immediately prior to such reclassification or other change and the Warrant Price shall be appropriately adjusted, all subject to further adjustment as provided in this Section 3.

 

(c)           Split, Subdivision or Combination of Securities.  If the Company, at any time while this Warrant or any portion hereof remains outstanding and unexpired, shall split, subdivide or combine the securities as to which purchase rights under this Warrant exist, into a different number of securities of the same class, (i) the number of securities as to which purchase rights under this Warrant exist shall be proportionately increased and the Warrant Price for such securities shall be proportionately decreased in the case of a split or subdivision or (ii) the number of securities as to which purchase rights under this Warrant exist shall be proportionately decreased and the Warrant Price for such securities shall be proportionately increased in the case of a reverse split or combination.

 

(d)           Adjustments for Dividends in Stock or Other Securities or Property.  If, while this Warrant or any portion hereof remains outstanding and unexpired, the holders of the securities as to which purchase rights under this Warrant exist at the time shall have received, or, on or after the record date fixed for the determination of eligible holders, shall have become entitled to receive, without payment therefor, other or additional stock or other securities or property (other than cash) of the Company by way of dividend, then and in each case, this Warrant shall represent the right to acquire, in addition to the number of shares of the security receivable upon exercise of this Warrant, and without payment of any additional consideration therefor, the amount of such other or additional stock or other securities or property (other than cash) of the Company that such holder would hold on the date of such exercise had it been the holder of record of the security receivable upon exercise of this Warrant on the date hereof and had thereafter, during the period from the date hereof to and including the date of such exercise, retained such shares and/or all other additional stock available by it as aforesaid during such period, giving effect to all adjustments called for during such period by the provisions of this Section 3.

 

  

4

  

 

4.            Holder Put Option.

 

(a)           Subject to the limitations provided in this Section 4, if the closing price of the Common Stock does not equal or exceed $[WARRANT PRICE PLUS BLACK-SCHOLES VALUE PER WARRANT THREE BUSINESS DAYS PRIOR TO CLOSING] (to be adjusted in the event of any split, subdivision or combination of the Common Stock, or any similar corporate event, in order to prevent dilution or enlargement of the Holder’s rights) (the “Limit”) for any 20 trading days (which may be non-consecutive) during a period of 30 consecutive trading days at any time on or prior to the Expiration Date, on the Expiration Date the Holder will have the right to sell this Warrant to the Company in exchange for shares of Common Stock on the terms set forth in Section 4(b) below (the “Put Option”).  For the avoidance of doubt, if the closing price of the Common Stock equals or exceeds the Limit for the period described above at any time on or prior to the Expiration Date, the Put Option will become null and void.

 

(b)           The exercise of the Put Option shall be irrevocable and shall be deemed effective upon the Holder’s delivery of written notice of exercise (the “Put Notice”) and surrender of this Warrant to the Company on or prior to the Expiration Date.  Upon exercise of the Put Option in accordance with the terms hereof, the Company shall issue to the Holder such number of shares of Common Stock equal to (x) the Warrant Shares otherwise issuable under this Warrant, multiplied by (y) $[BLACK-SCHOLES VALUE PER WARRANT THREE BUSINESS DAYS PRIOR TO CLOSING] (to be adjusted in the event of any split, subdivision or combination of the Common Stock, or any similar corporate event, in order to prevent dilution or enlargement of the Holder’s rights), divided by (z) the volume weighted average price (“VWAP”) of the Common Stock during the thirty (30) trading days ending on the Expiration Date, rounded up to the next whole share.  Certificates for such shares of Common Stock shall be delivered to the Holder by the Company at the Company’s expense as soon as practicable after the Expiration Date, but in any event not later than ten (10) days thereafter.

 

(c)           Notwithstanding the foregoing, in the event that, prior to the Expiration Date, there occurs (i) a reorganization, (ii) a merger or consolidation of the Company with or into another entity in which the Company is not the surviving entity, or a merger in which the Company is the surviving entity but the shares of the Company’s capital stock outstanding immediately prior to the merger are converted by virtue of the merger into other property, whether in the form of securities, cash, or otherwise, or (iii) a sale or transfer of the Company’s properties and assets as, or substantially as, an entirety to any other person (each, a “Corporate Action”), and if the Put Option were deemed to have been exercised immediately prior to such Corporate Action the Holder would have received a greater number or amount of securities or other property than what the Holder would be entitled to receive under Section 3(a) hereof, then the Put Option shall be deemed to have been exercised immediately prior to such Corporate Action without any further action by the Holder.

 

  

5

  

 

5.             Limitation on Number of Shares Issuable.  Notwithstanding anything herein to the contrary, the Company shall not issue to the Holder any Warrant Shares to the extent that the issuance of such Warrant Shares would cause the Company to exceed the aggregate number of shares of Common Stock that the Company is permitted to issue without breaching the Company’s obligations under Nasdaq Listing Rule 5635(d) (the “Exchange Cap”), except that such limitation shall not apply in the event that the Company obtains the approval of its stockholders as required under Nasdaq Listing Rule 5635(d) for issuances in excess of the Exchange Cap.  For avoidance of doubt, the limitations contained in this Section 5 shall apply to any successor Holder of this Warrant.

 

6.             No Voting or Dividend Rights.  Nothing contained in this Warrant shall be construed as conferring upon the Holder the right to vote or to consent to receive notice as a stockholder of the Company on any other matters or any rights whatsoever as a stockholder of the Company.  No dividends or interest shall be payable or accrued in respect of this Warrant or the interest represented hereby or the Warrant Shares purchasable hereunder until, and only to the extent that, this Warrant shall have been exercised.

 

7.             Investor Rights Agreement.  This Warrant and all Warrant Shares issuable upon exercise of this Warrant are and shall become subject to, and have the benefit of, the Investor Rights Agreement, and the Holder shall be required, for so long as the Holder holds this Warrant or any Warrant Shares, to become and remain a party to the Investor Rights Agreement.

 

8.             Compliance with the Securities Act.  The Holder, by acceptance of this Warrant, agrees that this Warrant is being acquired for its own account and not for any other person or persons, for investment purposes and that it will not offer, sell, or otherwise dispose of this Warrant except under circumstances that will not result in a violation of the Securities Act or any applicable state securities laws.

 

9.             Transferability.  The Holder, by acceptance of this Warrant, acknowledges that this Warrant and any securities obtainable upon exercise of this Warrant have not been registered for sale under federal or state securities laws and are being offered and sold to the Holder pursuant to one or more exemptions from the registration requirements of such securities laws.  In the absence of an effective registration of such securities or an exemption therefrom, any certificates for such securities shall bear the applicable legend set forth on the first page hereof.  The Holder understands that it may bear the economic risk of its investment in this Warrant and any securities obtainable upon exercise of this Warrant for an indefinite period of time.  The Holder may not assign or transfer any of its rights or obligations under this Warrant except to any of its affiliates upon written notice to the Company and subject to restrictions under the Investor Rights Agreement and in accordance with all applicable securities laws, including but not limited to the Securities Act.  To the extent permitted hereunder, this Warrant shall be deemed transferred upon surrender of this Warrant at the principal office of the Company, together with a written Form of Assignment and Assumption in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any applicable transfer taxes.  The Company agrees that it shall execute, or cause to be executed, such documents, instruments and agreements as the Holder shall reasonably deem necessary to effect the foregoing.  In addition, at the request of the Holder and any Assignee (as defined below), the Company shall issue one or more new Warrants, as applicable, to any such Assignee and, if the Holder has retained any of its rights and obligations under this Warrant following such assignment, to the Holder, which new Warrants shall reflect the rights held by such Assignee and the Holder after giving effect to such assignment.  Upon the execution and delivery of appropriate assignment documentation and any other documentation reasonably requested by the Company in connection with such assignment, and the payment by the Assignee of the purchase price agreed to by the Holder and such Assignee, such Assignee shall be a holder of this Warrant shall have all of the rights and obligations of the Holder hereunder to the extent that such rights and obligations have been assigned by the Holder pursuant to the assignment documentation between the Holder and such Assignee, and the Holder shall be released from any obligations it may have hereunder to a corresponding extent.

 

  

6

  

 

10.           Warrant Register.  The Company shall keep and properly maintain at its principal executive offices books for the registration of this Warrant and any transfers thereof. The Company may deem and treat the holder in whose name this Warrant is registered on such register as the Holder and absolute owner hereof for all purposes, and the Company shall not be affected by any notice to the contrary, except any assignment, division, combination or other transfer of the Warrant effected in accordance with the provisions of this Warrant.

 

11.           Notices.  All notices and other communications hereunder (except payment) shall be in writing and shall be deemed given (a) when delivered personally, (b) one business day after being delivered to a nationally recognized overnight courier or (c) on the business day received (or the next business day if received after 5:00 p.m. local time or on a weekend or day on which banks are closed) when sent via facsimile (with a confirmatory copy sent by overnight courier), to the parties at the following addresses (or at such other address for a party as shall be specified by like notice):

 

	
  

	
To the Holder:

	
________________

	
  

	
________________

	
  

	
________________

	
  

	
Fax:  ____________

	
  

	
To the Company:

	
Remark Media, Inc.

	
  

	
3930 Howard Hughes Parkway, Suite 400

	
  

	
Las Vegas, Nevada 89169

	
  

	
Attn: Chief Financial Officer

	
  

	
With a copy to:

 

	
  

	
Olshan Frome Wolosky LLP

	
  

	
Park Avenue Tower

	
  

	
65 East 55th Street

	
  

	
New York, New York 10022

	
  

	
Attn: Robert H. Friedman, Esq.

	
  

	
Fax: (212) 451-2222

 

  

7

  

12.           Governing Law.  This Warrant shall be governed by and construed in accordance with the internal laws of the State of Delaware applicable to contracts made and performed in such State, without reference to conflict of law rules that would require the application of the laws of another jurisdiction.  The parties hereto hereby irrevocably submit to the exclusive personal and subject matter jurisdiction of any federal or state court located within Clark County, Nevada, over any dispute arising out of or relating to this Warrant and each party hereby irrevocably agrees that all claims in respect of such dispute or any suit, action proceeding related thereto shall be heard and determined only in such courts.  The parties hereby irrevocably waive, to the fullest extent permitted by applicable law, any objection which they may now or hereafter have to the laying of venue of any such dispute brought in such court or any defense of inconvenient forum for the maintenance of such dispute, or pursuant to any other rule or principle of law.  Each of the parties hereto agrees that a judgment in any such dispute may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.

 

13.           Lost or Stolen Warrant.  Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction, or mutilation of this Warrant and, in the case of any such loss, theft or destruction, upon receipt of an indemnity reasonably satisfactory to the Company, or in the case of any such mutilation, upon surrender and cancellation of this Warrant, the Company, at its expense, will make and deliver a new Warrant, of like tenor, in lieu of the lost, stolen, destroyed or mutilated Warrant.

 

14.           Fractional Shares.  No fractional shares shall be issued upon exercise of this Warrant.  The Company shall, in lieu of issuing any fractional share, pay the Holder entitled to such fraction a sum in cash equal to such fraction (calculated to the nearest 1/100th of a share) multiplied by the then effective Warrant Price on the date the Form of Subscription is received by the Company.

 

15.           No Third-Party Beneficiaries.  This Warrant is for the sole benefit of the Company and the Holder and their respective successors and, in the case of the Holder, permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other party any legal or equitable right, benefit or remedy of any nature whatsoever, under or by reason of this Warrant.

 

16.           Entire Agreement; Amendments and Waivers.  This Warrant, together with the Purchase Agreement and the Investor Rights Agreement, constitute the sole and entire agreement of the parties to this Warrant with respect to the subject matter contained herein, and supersedes all prior and contemporaneous understandings and agreements, both written and oral, with respect to such subject matter.  In the event of any inconsistency between the statements in the body of this Warrant, the Purchase Agreement and the Investor Rights Agreement, the statements in the body of this Warrant shall control.  Except as otherwise provided herein and in the Investor Rights Agreement, this Warrant may only be amended, modified or supplemented by an agreement in writing signed by each party hereto.  No waiver by the Company or the Holder of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the party so waiving.  No waiver by any party shall operate or be construed as a waiver in respect of any failure, breach or default not expressly identified by such written waiver, whether of a similar or different character, and whether occurring before or after that waiver.  No failure to exercise, or delay in exercising, any rights, remedy, power or privilege arising from this Warrant shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

 

  

8

  

 

17.           Successors and Assigns.  This Warrant and the rights evidenced hereby shall inure to the benefit of and be binding upon the successors of the Company and the successors and assigns of the Holder, including subsequent holders hereof (collectively, “Assignees”).  The provisions of this Warrant are intended to be for the benefit of all Holders from time to time of this Warrant, and shall be enforceable by any such Holder.

 

18.           Severability.  In case any one or more of the provisions of this Warrant shall be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Warrant shall not in any way be affected or impaired thereby and the parties will attempt in good faith to agree upon a valid and enforceable provision which shall be a commercially reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Warrant.

 

19.           Counterparts.  This Warrant may be executed in two or more counterparts, each of which shall be deemed to be an original copy of this Warrant and all of which, when taken together, shall be deemed to constitute one and the same agreement, and photostatic, .pdf or facsimile copies of fully-executed counterparts of this Warrant shall be given the same effect as originals.

 

20.           No Strict Construction.  This Warrant shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting an instrument or causing any instrument to be drafted.

 

[Signature Page Follows]

 

  

9

  

 

IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by its officer, thereunto duly authorized, as of the date first indicated above.

 

	  	
REMARK MEDIA, INC.

	  	  
	  	  
	  	
By:

	  
	  	
Name:

	  	
Title:

	
ACCEPTED AND AGREED:

	  
	  	  
	
[HOLDER]

	  
	  	  
	  	  
	
By:

	  	  
	
Name:

	  
	
Title:

	  

 

 

 

Signature Page — Warrant to Purchase Common Stock

 

  

 

FORM OF SUBSCRIPTION

 

The undersigned, the Holder of the attached Warrant, hereby elects to exercise the purchase right represented by such Warrant for, and to purchase thereunder,                           Warrant Shares and such Holder directs the Company to accept payment of the Warrant Price by net exercise of the Warrant, as set forth in Section 1(c) of such Warrant.

 

The undersigned requests that certificates for such shares be issued in the name of, and delivered to:

 

	 
	  
	
whose address is:

	  

 

	
DATED:

	  	  	  
	  	  	  
	  	  	
HOLDER

	  	  	  
	  	  	  
	  	  	
(Signature must conform in all respects to name of the Holder as specified on the face of the Warrant)

	  	  	  

	  	  	
Name:

	  

 

	  	  	
Title:

	  

  

 

  

                                                                 

FORM OF ASSIGNMENT AND ASSUMPTION

 

FOR VALUE RECEIVED, the right to purchase ________________ Warrant Shares under the attached Warrant and all rights evidenced thereby are hereby assigned to:

 

	  	
(the “Assignee”)

 

	  
	
whose address is:

	  

 

The Assignee, by executing this Assignment and Assumption, hereby agrees to comply with all of the provisions of the Warrant, with the same force and effect as if the Assignee were originally the Holder thereunder.

 

	
DATED:

	  	  	  
	  	  	  
	  	  	
HOLDER

	  	  	  
	  	  	  
	  	  	
(Signature must conform in all respects to name of the Holder as specified on the face of the Warrant)

	  	  	  

	  	  	
Name:

	  

 

	  	  	
Title:

	  

 

	  	
ASSIGNEE

	  	  
	  	  
	  	  
	  	  
	  	
Name:

	  

 

	  	
Title:

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