Document:

Exhibit 10.1

 

CONTRIBUTION AND TRANSFER AGREEMENT

 

dated as of February 17, 2015

 

by and between

 

ACACIA NATURAL GAS CORP I, INC.

 

and

 

ENLINK MIDSTREAM PARTNERS, LP

 

 

TABLE OF CONTENTS

 

	
ARTICLE I DEFINITIONS
    	
 
    	
2
    
	
Section 1.1
    	
 
    	
Definitions
    	
 
    	
2
    
	
Section 1.2
    	
 
    	
Construction
    	
 
    	
5
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE II CONVEYANCE AND CLOSING
    	
 
    	
5
    
	
Section 2.1
    	
 
    	
Conveyance
    	
 
    	
5
    
	
Section 2.2
    	
 
    	
Consideration
    	
 
    	
5
    
	
Section 2.3
    	
 
    	
Closing
    	
 
    	
5
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE III REPRESENTATIONS AND WARRANTIES OF ACACIA
    	
 
    	
6
    
	
Section 3.1
    	
 
    	
Organization of Acacia
    	
 
    	
6
    
	
Section 3.2
    	
 
    	
Authority and Approval
    	
 
    	
6
    
	
Section 3.3
    	
 
    	
No Conflict; Consents
    	
 
    	
6
    
	
Section 3.4
    	
 
    	
Title to Transferred Interests
    	
 
    	
7
    
	
Section 3.5
    	
 
    	
Compliance
    	
 
    	
7
    
	
Section 3.6
    	
 
    	
Litigation; Laws and Regulations
    	
 
    	
8
    
	
Section 3.7
    	
 
    	
Brokerage Arrangements
    	
 
    	
8
    
	
Section 3.8
    	
 
    	
Investment Intent
    	
 
    	
8
    
	
Section 3.9
    	
 
    	
No Other Representations or Warranties
    	
 
    	
8
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE PARTNERSHIP
    	
 
    	
9
    
	
Section 4.1
    	
 
    	
Organization and Existence
    	
 
    	
9
    
	
Section 4.2
    	
 
    	
Authority and Approval
    	
 
    	
9
    
	
Section 4.3
    	
 
    	
No Conflict; Consents
    	
 
    	
9
    
	
Section 4.4
    	
 
    	
Delivery of Opinion
    	
 
    	
10
    
	
Section 4.5
    	
 
    	
Periodic Reports
    	
 
    	
10
    
	
Section 4.6
    	
 
    	
No Material Adverse Change
    	
 
    	
11
    
	
Section 4.7
    	
 
    	
Consideration Units
    	
 
    	
11
    
	
Section 4.8
    	
 
    	
Brokerage Arrangements
    	
 
    	
11
    
	
Section 4.9
    	
 
    	
Litigation
    	
 
    	
12
    
	
Section 4.10
    	
 
    	
Investment Intent
    	
 
    	
12
    
	
Section 4.11
    	
 
    	
No Other Representations or Warranties
    	
 
    	
12
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE V TAX MATTERS
    	
 
    	
13
    
	
Section 5.1
    	
 
    	
Transfer Taxes
    	
 
    	
13
    
	
Section 5.2
    	
 
    	
Tax Treatment
    	
 
    	
13
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE VI INDEMNIFICATION
    	
 
    	
13
    
	
Section 6.1
    	
 
    	
Indemnification of the Partnership
    	
 
    	
13
    
	
Section 6.2
    	
 
    	
Indemnification of Acacia
    	
 
    	
13
    
	
Section 6.3
    	
 
    	
Survival
    	
 
    	
14
    
	
Section 6.4
    	
 
    	
Demands
    	
 
    	
14
    
	
Section 6.5
    	
 
    	
Right to Contest and Defend
    	
 
    	
15
    
	
Section 6.6
    	
 
    	
Cooperation
    	
 
    	
16
    
	
Section 6.7
    	
 
    	
Right to Participate
    	
 
    	
16
    
	
Section 6.8
    	
 
    	
Payment of Damages
    	
 
    	
16
    

 

i

 

Table of Contents
 (Continued)

 

	
Section 6.9
    	
 
    	
Direct Claim
    	
 
    	
16
    
	
Section 6.10
    	
 
    	
Limitations on Indemnification
    	
 
    	
17
    
	
Section 6.11
    	
 
    	
Sole Remedy
    	
 
    	
17
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARTICLE VII MISCELLANEOUS
    	
 
    	
17
    
	
Section 7.1
    	
 
    	
Acknowledgements
    	
 
    	
17
    
	
Section 7.2
    	
 
    	
Cooperation; Further Assurances
    	
 
    	
17
    
	
Section 7.3
    	
 
    	
Expenses
    	
 
    	
18
    
	
Section 7.4
    	
 
    	
Notices
    	
 
    	
18
    
	
Section 7.5
    	
 
    	
Governing Law
    	
 
    	
19
    
	
Section 7.6
    	
 
    	
Public Statements
    	
 
    	
19
    
	
Section 7.7
    	
 
    	
Entire Agreement; Amendments and Waivers
    	
 
    	
20
    
	
Section 7.8
    	
 
    	
Action by the Partnership
    	
 
    	
20
    
	
Section 7.9
    	
 
    	
Conflicting Provisions
    	
 
    	
20
    
	
Section 7.10
    	
 
    	
Binding Effect and Assignment
    	
 
    	
20
    
	
Section 7.11
    	
 
    	
Severability
    	
 
    	
21
    
	
Section 7.12
    	
 
    	
Interpretation
    	
 
    	
21
    
	
Section 7.13
    	
 
    	
Headings
    	
 
    	
21
    
	
Section 7.14
    	
 
    	
Multiple Counterparts
    	
 
    	
21
    

 

EXHIBITS

 

	
Exhibit A
    	
 
    	
-
    	
 
    	
Form of   Assignment Agreement
    
	
Exhibit B
    	
 
    	
-
    	
 
    	
Form of   Partnership Agreement Amendment
    

 

APPENDICES

 

	
Appendix   A
    	
 
    	
-
    	
 
    	
The   Partnership and Acacia Designated Personnel
    

 

ii

 

CONTRIBUTION AND TRANSFER AGREEMENT

 

This Contribution and Transfer Agreement (this “Agreement”) is made and effective as of February 17, 2015, by and among Acacia Natural Gas Corp I, Inc., a Delaware corporation (“Acacia”), and EnLink Midstream Partners, LP, a Delaware limited partnership (the “Partnership”).  Capitalized terms used herein without definition have the respective meanings set forth in Section 1.1.

 

RECITALS

 

WHEREAS, Acacia and EnLink Midstream Operating, LP, a Delaware limited partnership and a wholly-owned subsidiary of the Partnership (“Operating”), are the sole limited partners of EnLink Midstream Holdings, LP, a Delaware limited partnership (“Holdings”);

 

WHEREAS, the general partner of Holdings is a wholly-owned subsidiary of Operating;

 

WHEREAS, each of Acacia and Operating owns 50% of the Limited Partner Interests (as defined in the Holdings Partnership Agreement) of Holdings;

 

WHEREAS, Acacia desires to contribute, transfer, assign and convey 25% of the Limited Partner Interests (the “Transferred Interests”) to the Partnership (which may, in turn, contribute the Transferred Interests to Operating, in which case the Partnership may direct that the assignment be made directly to Operating), pursuant to the terms of this Agreement and the Assignment Agreement;

 

WHEREAS, the Partnership desires to accept and acquire the Transferred Interests in accordance with the terms of this Agreement and the Assignment Agreement;

 

WHEREAS, consistent with Section 6.4 of the Holdings Partnership Agreement, the Partnership will direct Acacia to contribute, transfer, assign and convey the Transferred Interests directly to Operating pursuant to the Assignment Agreement; and

 

WHEREAS, the Conflicts Committee has previously (i) received an opinion of Simmons & Company International, the financial advisor to the Conflicts Committee (the “Financial Advisor”), that the terms of the transactions contemplated by this Agreement and all related agreements described in this Agreement are fair to the Partnership and to the holders of Common Units of the Partnership (other than EnLink Midstream GP, LLC, the general partner of the Partnership (the “General Partner”), and its affiliates) from a financial point of view, and (ii) found the Transaction to be fair and reasonable to the Partnership and the holders of its Common Units (other than the General Partner and its affiliates) and recommended that the board of directors (the “Board of Directors”) of the General Partner approve the Transaction and, subsequently, the Board of Directors approved the Transaction.

 

NOW, THEREFORE, in consideration of the premises and the respective representations, warranties, covenants, agreements and conditions contained herein, the parties hereto agree as follows:

 

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ARTICLE I
  DEFINITIONS

 

Section 1.1                                   Definitions.

 

The respective terms defined in this Section 1.1 shall, when used in this Agreement, have the respective meanings specified herein, with each such definition equally applicable to both singular and plural forms of the terms so defined:

 

“Acacia” has the meaning ascribed to such term in the preamble.

 

“Acacia Fundamental Representations” has the meaning ascribed to such term in Section 6.3.

 

“Acacia Indemnified Parties” has the meaning ascribed to such term in Section 6.2.

 

“Affiliate,” when used with respect to a Person, means any other Person that directly or indirectly Controls, is Controlled by or is under common Control with such first Person; provided, however, that (i) with respect to Acacia, the term “Affiliate” shall exclude the Partnership, the General Partner and the Partnership’s subsidiaries and (ii) with respect to the Partnership, the term “Affiliate” shall exclude EnLink Midstream, Inc., Acacia and their Controlling Affiliates.  No Person shall be deemed an Affiliate of any Person solely by reason of the exercise or existence of rights, interests or remedies under this Agreement.

 

“Agreement” has the meaning ascribed to such term in the preamble.

 

“Applicable Law” means any applicable law or administrative rule or regulation or any judicial, administrative or arbitration order, award, judgment, writ, injunction or decree of any Governmental Authority having valid jurisdiction.

 

“Assignment Agreement” means that Assignment and Assumption Agreement substantially in the form of Exhibit A attached hereto, to be executed by Acacia, the Partnership and Operating, pursuant to which Acacia will assign the Transferred Interests to the Partnership or Operating.

 

“Board of Directors” has the meaning ascribed to such term in the recitals.

 

“Ceiling Amount” has the meaning ascribed to such term in Section 6.10(a).

 

“Closing” has the meaning ascribed to such term in Section 2.3.

 

“Closing Date” has the meaning ascribed to such term in Section 2.3.

 

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

 

“Commission” means the Securities and Exchange Commission.

 

“Common Units” means the Partnership’s Common Units representing limited partner interests of the Partnership having the terms set forth in the Partnership Agreement.

 

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“Conflicts Committee” means the conflicts committee of the Board of Directors.

 

“Consideration Units” has the meaning ascribed to such term in Section 2.2.

 

“Control” and its derivatives mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise.  The terms “Controlling” and “Controlled” shall have correlative meanings.

 

“Damages” means liabilities and obligations, including all losses, deficiencies, costs, expenses, fines, interest, expenditures, claims, suits, proceedings, judgments, damages, and reasonable attorneys’ fees and reasonable expenses of investigating, defending and prosecuting litigation.

 

“Direct Claim” has the meaning ascribed to such term in Section 6.9.

 

“DRULPA” means the Delaware Revised Uniform Limited Partnership Act.

 

“Enforceability Exceptions” has the meaning ascribed to such term in Section 3.2(b).

 

“ENLC Credit Agreement” means that certain Credit Agreement, dated as of March 7, 2014, among EnLink Midstream, LLC, Bank of America, N.A., Citibank, N.A., Wells Fargo Bank, National Association, Royal Bank of Canada and Bank of Montreal.

 

“ENLK Class D Common Units” means the Partnership’s Class D Common Units representing limited partner interests of the Partnership having the terms set forth in the Partnership Agreement Amendment.

 

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

 

“Financial Advisor” has the meaning ascribed to such term in the recitals.

 

“GAAP” means generally accepted accounting principles in the United States of America.

 

“General Partner” has the meaning ascribed to such term in the recitals.

 

“Governmental Approval” means any consent, approval, license, permit, order, or authorization of, or registration, declaration, or filing with, any Governmental Authority.

 

“Governmental Authority” means any federal, state, municipal or other government, governmental court, department, commission, board, bureau, agency or instrumentality.

 

“Holdings” has the meaning ascribed to such term in the recitals.

 

“Holdings Assets” means all of the assets owned on the Closing Date by Holdings.

 

“Holdings Material Adverse Effect” means a material adverse effect on or material adverse change in (i) the assets, liabilities, financial condition or results of operations of

 

3

 

Holdings, taken as a whole, other than any effect or change (a) that impacts the oil and gas midstream industry generally (including any change in the prices of crude oil, condensate, natural gas or other hydrocarbon products, industry margins or any regulatory changes or changes in Applicable Law or GAAP), (b) in United States or global political or economic conditions or financial markets in general, or (c) resulting from the announcement of the transactions contemplated by this Agreement and the Assignment Agreement and the taking of any actions contemplated by this Agreement or the Assignment Agreement, provided, that in the case of clauses (a) and (b), the impact on Holdings is not materially disproportionate to the impact on similarly situated parties in the oil and gas midstream industry, or (ii) the ability of Acacia to perform its obligations under this Agreement or to consummate the transactions contemplated by this Agreement.

 

“Holdings Partnership Agreement” means that certain First Amended and Restated Agreement of Limited Partnership of Holdings, dated as of March 7, 2014.

 

“Knowledge,” as used in this Agreement with respect to a party hereof, means the actual knowledge of that party’s designated personnel, after reasonable inquiry.  The designated personnel for Acacia and the Partnership are set forth on Appendix A.

 

“Lien” means any mortgage, deed of trust, lien, security interest, pledge, conditional sales contract, charge or encumbrance.

 

“Notice” has the meaning ascribed to such term in Section 7.4.

 

“Operating” has the meaning ascribed to such term in the recitals.

 

“Partnership” has the meaning ascribed to such term in the preamble.

 

“Partnership Agreement” means that certain Seventh Amended and Restated Limited Partnership Agreement of the Partnership, dated as of July 7, 2014, as amended by the Partnership Agreement Amendment.

 

“Partnership Agreement Amendment” means Amendment No. 1 to the Partnership Agreement, dated as of the date hereof, in the form attached hereto as Exhibit B.

 

“Partnership Financial Statements” has the meaning ascribed to such term in Section 4.5.

 

“Partnership Fundamental Representations” has the meaning ascribed to such term in Section 6.3.

 

“Partnership Indemnified Parties” has the meaning ascribed to such term in Section 6.1.

 

“Person” means an individual or entity, including any partnership, corporation, association, trust, limited liability company, joint venture, unincorporated organization or other entity.

 

“SEC Documents” has the meaning ascribed to such term in Section 4.5.

 

4

 

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

 

“Third Party Indemnity Claim” has the meaning ascribed to such term in Section 6.4(a).

 

“Transaction” means the sale, transfer, assignment and conveyance of the Transferred Interests and the other transactions contemplated hereby and by the Assignment Agreement pursuant to the terms of, and subject to the conditions set forth in, this Agreement and the Assignment Agreement.

 

“Transfer Taxes” has the meaning ascribed to such term in Section 5.1.

 

“Transferred Interests” has the meaning ascribed to such term in the recitals.

 

Section 1.2                                   Construction.

 

In constructing this Agreement: (a) the word “includes” and its derivatives means “includes, without limitation” and corresponding derivative expressions; (b) the currency amounts referred to herein, unless otherwise specified, are in United States dollars; (c) whenever this Agreement refers to a number of days, such number shall refer to calendar days unless business days are specified; (d) unless otherwise specified, all references in this Agreement to “Article,” “Section,” “Exhibit,” “preamble” or “recitals” shall be references to an Article, Section, Exhibit, preamble or recitals hereto; and (e) whenever the context requires, the words used in this Agreement shall include the masculine, feminine and neuter and singular and the plural.

 

ARTICLE II
  CONVEYANCE AND CLOSING

 

Section 2.1                                   Conveyance.

 

Upon the terms and subject to the conditions set forth in this Agreement and in the Assignment Agreement, on the Closing Date, Acacia shall contribute, transfer, assign and convey the Transferred Interests to the Partnership (which may, in turn, contribute such Transferred Interests to Operating, in which case the Partnership may direct that the assignment be made directly to Operating).  Such contribution, transfer, assignment and conveyance of Transferred Interests shall be effected free and clear of all Liens (other than restrictions under the Holdings Partnership Agreement and applicable federal and state securities laws).

 

Section 2.2                                   Consideration.

 

As consideration for the contribution, transfer, assignment and conveyance of the Transferred Interests as set forth in Section 2.1, the Partnership shall issue 31,618,311 ENLK Class D Common Units (the “Consideration Units”) to Acacia.

 

Section 2.3                                   Closing.

 

The closing (the “Closing”) of the Transaction will be held on the date hereof (the “Closing Date”) at the offices of the Partnership at 2501 Cedar Springs Rd., Dallas, Texas

 

5

 

75201. At the Closing, (a) Acacia shall deliver to the Partnership, or cause to be delivered to the Partnership, the Assignment Agreement duly executed by Acacia and (b) the Partnership shall deliver to Acacia, or cause to be delivered to Acacia, (i) the Consideration Units specified in Section 2.2 in certificated form, (ii) the Assignment Agreement duly executed by the Partnership and Operating and (iii) a duly executed copy of the Partnership Agreement Amendment.

 

ARTICLE III
  REPRESENTATIONS AND WARRANTIES OF ACACIA

 

Acacia hereby represents and warrants to the Partnership that, as of the date hereof:

 

Section 3.1                                   Organization of Acacia.

 

Acacia is a corporation duly formed, validly existing and in good standing under the laws of the State of Delaware and has all requisite corporate power and authority to own, operate and lease its properties and assets and to carry on its business as currently conducted.

 

Section 3.2                                   Authority and Approval.

 

(a)                                 Acacia has full corporate power and authority to execute and deliver this Agreement and the Assignment Agreement, to perform all of the obligations hereof and thereof to be performed by it and to consummate the Transaction.  The execution and delivery by Acacia of this Agreement and the Assignment Agreement, the performance of all of the obligations hereof and thereof to be performed by Acacia and the consummation of the Transaction have been duly authorized and approved by all requisite corporate action on the part of Acacia.

 

(b)                                 This Agreement has been duly executed and delivered by Acacia and constitutes the valid and legally binding obligation of Acacia, enforceable against it in accordance with its terms, except as such enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar laws affecting the enforcement of creditors’ rights and remedies generally and by general principles of equity (whether applied in a proceeding at law or in equity) (collectively, the “Enforceability Exceptions”).  When executed and delivered by each of the parties thereto, the Assignment Agreement will constitute a valid and legally binding obligation of Acacia, enforceable against Acacia in accordance with its terms, except as such enforcement may be limited by the Enforceability Exceptions.

 

Section 3.3                                   No Conflict; Consents.

 

(a)                                 The execution, delivery and performance of this Agreement and the Assignment Agreement by Acacia do not, and the fulfillment and compliance with the terms and conditions hereof and thereof and the consummation of the Transaction will not, (i) violate, conflict with, result in any breach of, or require the consent of any Person under, any of the terms, conditions or

 

6

 

provisions of the certificate of incorporation or bylaws of Acacia; (ii) conflict with or violate any provision of any Applicable Law; (iii) conflict with, result in a breach of, constitute a default under (whether with notice or the lapse of time or both), or accelerate or permit the acceleration of the performance required by, or require any consent, authorization or approval under, or result in the suspension, termination or cancellation of, or in a right of suspension, termination or cancellation of, any material indenture, mortgage, agreement, contract, commitment, license, concession, permit, lease, joint venture or other instrument to which Acacia is a party or by which it or any of its properties or assets are bound; or (iv) result in the creation of any Lien (except for restrictions on transfer imposed under the Holdings Partnership Agreement or by applicable federal or state securities laws) on any of the Transferred Interests under any such indenture, mortgage, agreement, contract, commitment, license, concession, permit, lease, joint venture or other instrument, except in the case of clauses (ii), (iii) and (iv) for those items which, individually or in the aggregate, would not reasonably be expected to have a Holdings Material Adverse Effect.

 

(b)                                 No consent, approval, license, permit, order or authorization of any Governmental Authority or other Person is required to be obtained or made by Acacia with respect to the Transferred Interests in connection with the execution, delivery and performance of this Agreement and the Assignment Agreement or the consummation of the transactions contemplated hereby or thereby, except (i) as have been waived or obtained or with respect to which the time for asserting such right has expired or (ii) those which individually or in the aggregate would not reasonably be expected to have a Holdings Material Adverse Effect.

 

Section 3.4                                   Title to Transferred Interests.

 

Acacia owns, beneficially and of record, the Transferred Interests and will convey good title, free and clear of all Liens (other than restrictions under the Holdings Partnership Agreement and applicable federal and state securities laws), to the Transferred Interests to the Partnership or Operating.  Except as set forth in the Holdings Partnership Agreement and the ENLC Credit Agreement, the Transferred Interests are not subject to any agreements or understandings with respect to the voting or transfer of any of the Transferred Interests (except the contribution of the Transferred Interests contemplated by this Agreement and restrictions under applicable federal and state securities laws).  All restrictions and Liens on the Transferred Interests that are imposed by the ENLC Credit Agreement will terminate upon the Closing.

 

Section 3.5                                   Compliance.

 

Acacia’s ownership of the Transferred Interests is and has been in compliance in all material respects with all Applicable Law, and Acacia has not received notice from any Governmental Authority asserting any act of non-compliance.

 

7

 

Section 3.6                                   Litigation; Laws and Regulations.

 

There are no civil, criminal or administrative actions, suits, claims, hearings, arbitrations, investigations or proceedings pending or, to Acacia’s Knowledge, threatened that (a) question or involve the validity or enforceability of any of Acacia’s obligations under this Agreement or the Assignment Agreement or (b) seek (or reasonably might be expected to seek) (i) to prevent or delay the consummation by Acacia of the Transaction or (ii) damages in connection with any such consummation.

 

Section 3.7                                   Brokerage Arrangements.

 

Acacia has not entered (directly or indirectly) into any agreement with any Person that would obligate Acacia, Holdings, the Partnership or any of their respective Affiliates to pay any commission, brokerage or “finder’s fee” or other similar fee in connection with this Agreement, the Assignment Agreement or the transactions contemplated hereby or thereby.

 

Section 3.8                                   Investment Intent.

 

Acacia is accepting the Consideration Units for its own account with the present intention of holding the Consideration Units for investment purposes and not with a view to, or for offer or sale in connection with, any distribution thereof in violation of the Securities Act or state securities laws.  Acacia does not presently have any contract, undertaking, agreement or arrangement with any Person to sell, transfer or grant participations to such Person or to any third Person, with respect to such Consideration Units.  Acacia has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risk of an investment in such Consideration Units.  Acacia acknowledges that such Consideration Units, and the Common Units issuable upon conversion thereof, are not currently registered under the Securities Act or any applicable state securities law and might not be registered in the future, and that such Consideration Units, and the Common Units issuable upon conversion thereof, may not be transferred or sold except pursuant to the registration provisions of the Securities Act or pursuant to an applicable exemption therefrom and pursuant to state securities laws and regulations as applicable.

 

Section 3.9                                   No Other Representations or Warranties.

 

Except for the representations and warranties contained in this Article III, neither Acacia nor any other Person makes any other express or implied representation or warranty with respect to Acacia, Holdings or the Transaction, and Acacia disclaims any other representations or warranties, whether made by Acacia, Holdings or any of their respective Affiliates, officers, directors, employees, agents or representatives.  Except for the representations and warranties contained in this Article III, Acacia hereby disclaims all liability and responsibility for any representation, warranty, projection, forecast, statement, or information made, communicated, or furnished (orally or in writing) to the Partnership or its Affiliates or representatives (including any opinion, information, projection, or advice that may have been or may be provided to the Partnership by any director, officer, employee, agent, consultant, or representative of Acacia, Holdings or any of their respective Affiliates).

 

8

 

ARTICLE IV
  REPRESENTATIONS AND WARRANTIES OF THE PARTNERSHIP

 

The Partnership hereby represents and warrants to Acacia that, as of the date hereof:

 

Section 4.1                                   Organization and Existence.

 

Each of the Partnership and Operating is a limited partnership duly formed, validly existing and in good standing under the laws of the State of Delaware and has all requisite limited partnership power and authority to own, operate and lease its properties and assets and to carry on its business as currently conducted.

 

Section 4.2                                   Authority and Approval.

 

(a)                                 Each of the Partnership and Operating has full limited partnership power and authority to execute and deliver this Agreement and the Assignment Agreement, as applicable, to perform all of the obligations hereof and thereof, as applicable, to be performed by it and to consummate the Transaction.  The execution and delivery of this Agreement and the Assignment Agreement, as applicable, the performance of all of its respective obligations hereunder and thereunder, as applicable, and the consummation of the Transaction have been duly authorized and approved by all requisite limited partnership action of each of the Partnership and Operating to the extent applicable.

 

(b)                                 This Agreement has been duly executed and delivered by or on behalf of the Partnership and constitutes the valid and legally binding obligation of the Partnership, enforceable against the Partnership in accordance with its terms, except as such enforcement may be limited by the Enforceability Exceptions.  When executed and delivered by each of the parties thereto, the Assignment Agreement will constitute a valid and legally binding obligation of the Partnership and Operating, enforceable against the Partnership and Operating in accordance with its terms, except as such enforcement may be limited by the Enforceability Exceptions.

 

Section 4.3                                   No Conflict; Consents.

 

(a)                                 The execution, delivery and performance of this Agreement and the Assignment Agreement by the Partnership and Operating, as applicable, do not, and the fulfillment and compliance with the terms and conditions hereof and thereof, as applicable, and the consummation of the Transaction will not, (i) violate, conflict with, result in any breach of, or require the consent of any Person under, any of the terms, conditions or provisions of the certificate of limited partnership or limited partnership agreement of the Partnership or Operating, in each case as amended as of the date hereof (including, with respect to the Partnership, the Partnership Agreement Amendment); (ii) conflict with or violate any provision of any Applicable Law; or (iii) conflict with, result in a breach of, constitute a default under (whether with notice or

 

9

 

the lapse of time or both), or accelerate or permit the acceleration of the performance required by, or require any consent, authorization or approval under or result in a right of suspension, termination or cancellation of, any material indenture, mortgage, agreement, contract, commitment, license, concession, permit, lease, joint venture or other instrument to which the Partnership or Operating is a party or by which either is bound or to which any of the Partnership’s or Operating’s property or assets are bound.

 

(b)                                 No consent, approval, license, permit, order or authorization of any Governmental Authority or other Person is required to be obtained or made by the Partnership or Operating in connection with the execution, delivery, and performance of this Agreement and the Assignment Agreement, as applicable, or the consummation of the Transaction, except as have been waived or obtained or with respect to which the time for asserting such right has expired.

 

Section 4.4                                   Delivery of Opinion.

 

The Financial Advisor has delivered an opinion to the Conflicts Committee that the terms of the transactions contemplated by this Agreement and all related agreements described in this Agreement are fair to the Partnership and the holders of its Common Units (other than the General Partner and its affiliates) from a financial point of view.

 

Section 4.5                                   Periodic Reports.

 

The Partnership’s forms, registration statements, reports, schedules and statements required to be filed by it under the Exchange Act or the Securities Act (all such documents filed prior to the date hereof, collectively the “SEC Documents”) have been filed with the Commission on a timely basis.  The SEC Documents, including, without limitation, any audited or unaudited financial statements and any notes thereto or schedules included therein (the “Partnership Financial Statements”), at the time filed (or in the case of registration statements, solely on the dates of effectiveness) (except to the extent corrected by a subsequent SEC Document) (a) did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading, (b) complied in all material respects with the applicable requirements of the Exchange Act and the Securities Act, as the case may be, (c) complied as to form in all material respects with applicable accounting requirements and with the published rules and regulations of the Commission with respect thereto, (d) in the case of the Partnership Financial Statements, were prepared in accordance with GAAP applied on a consistent basis during the periods involved (except as may be indicated in the notes thereto or, in the case of unaudited statements, as permitted by Form 10-Q of the Commission), and (e) in the case of the Partnership Financial Statements, fairly present (in the case of unaudited statements, subject to normal and recurring audit adjustments) in all material respects the consolidated financial position of the Partnership and its consolidated subsidiaries as of the dates thereof and the consolidated results of its operations and cash flows for the periods then ended.  KPMG LLP is an independent registered public accounting firm with respect to the Partnership and has not resigned or been dismissed as independent registered public accountants of the

 

10

 

Partnership as a result of or in connection with any disagreement with the Partnership on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedures.

 

Section 4.6                                   No Material Adverse Change.

 

Except as set forth in or contemplated by the SEC Documents and as contemplated by this Agreement, since September 30, 2014, and except for matters relating to the Transaction, the business of the Partnership and its subsidiaries, as applicable, has been conducted only in the ordinary course of business and there has not been any (a) material adverse effect on the Partnership, (b) acquisition or disposition of any material asset by the Partnership or any of its subsidiaries or any contract or arrangement therefore, other than in the ordinary course of business, (c) material change in any of the Partnership’s accounting principles, practices or methods except to the extent required in accordance with GAAP, (d) incurrence of material indebtedness other than in the ordinary course of business, (e) amendment, or approval of any amendment, to the charter documents of the Partnership, (f) material legal, regulatory or other similar proceedings for which the Partnership has been served or (g) material disputes, claims, audits or investigations, whether administrative, judicial or otherwise, instituted or, to the Partnership’s Knowledge, threatened by or against or affecting the Partnership.

 

Section 4.7                                   Consideration Units.

 

(a)                                 The Partnership has taken all limited partnership action necessary to authorize the issuance and delivery to Acacia of the Consideration Units as contemplated by this Agreement and of the Common Units issuable upon conversion of such Consideration Units.

 

(b)                                 When issued in accordance with the provisions of this Agreement, the Consideration Units, and the Common Units issuable upon conversion of such Consideration Units, will be validly issued in accordance with the Partnership Agreement and the DRULPA, fully paid (to the extent required by the Partnership Agreement), nonassessable (except as such non-assessability may be affected by Sections 17-303, 17-607 and 17-804 of the DRULPA) and free and clear of all Liens (except for restrictions on transfer imposed under the Partnership Agreement or by applicable federal or state securities laws).

 

(c)                                  The Partnership Agreement Amendment has been duly and validly authorized and approved by the General Partner, and no other limited partnership or limited liability company proceedings on the part of the General Partner or the Partnership are necessary to authorize and approve the Partnership Agreement Amendment.

 

Section 4.8                                   Brokerage Arrangements.

 

The Partnership has not entered (directly or indirectly) into any agreement with any Person that would obligate Acacia, Holdings, the Partnership or any of their respective Affiliates

 

11

 

to pay any commission, brokerage or “finder’s fee” or other similar fee in connection with this Agreement, the Assignment Agreement or the transactions contemplated hereby or thereby.

 

Section 4.9                                   Litigation.

 

There are no civil, criminal or administrative actions, suits, claims, hearings, arbitrations, investigations or proceedings pending or, to the Partnership’s Knowledge, threatened that (a) question or involve the validity or enforceability of any of the Partnership’s or Operating’s obligations under this Agreement or the Assignment Agreement, as applicable, or (b) seek (or reasonably might be expected to seek) (i) to prevent or delay the consummation by the Partnership or Operating of the Transaction or (ii) damages in connection with any such consummation.

 

Section 4.10                            Investment Intent.

 

The Partnership is accepting the Transferred Interests for its own account with the present intention of holding the Transferred Interests (indirectly through Operating) for investment purposes and not with a view to, or for offer or sale in connection with, any distribution thereof in violation of the Securities Act or state securities laws.  Other than the Assignment Agreement, the Partnership does not presently have any contract, undertaking, agreement or arrangement with any Person to sell, transfer or grant participations to such Person or to any third Person with respect to, such Transferred Interests.  The Partnership has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risk of an investment in the Transferred Interests.  The Partnership acknowledges that such Transferred Interests are not currently registered under the Securities Act or any applicable state securities law and may not be registered in the future, and that such Transferred Interests may not be transferred or sold except pursuant to the registration provisions of the Securities Act or pursuant to an applicable exemption therefrom and pursuant to state securities laws and regulations as applicable.

 

Section 4.11                            No Other Representations or Warranties.

 

Except for the representations and warranties contained in this Article IV, neither the Partnership nor any other Person (including, without limitation, Holdings) makes any other express or implied representation or warranty with respect to the Partnership (or Holdings) or the Transaction, and the Partnership disclaims any other representations or warranties, whether made by the Partnership, Holdings or any of their respective Affiliates, officers, directors, employees, agents or representatives.  Except for the representations and warranties contained in this Article IV, the Partnership and Holdings each hereby disclaims all liability and responsibility for any representation, warranty, projection, forecast, statement, or information made, communicated, or furnished (orally or in writing) to Acacia or its Affiliates or representatives (including any opinion, information, projection, or advice that may have been or may be provided to Acacia by any director, officer, employee, agent, consultant, or representative of the Partnership or any of its Affiliates).

 

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ARTICLE V
  TAX MATTERS

 

Section 5.1                                   Transfer Taxes.

 

All transfer, documentary, sales, use, stamp, registration and other similar Taxes and fees arising out of or in connection with the transactions effected pursuant to this Agreement (the “Transfer Taxes”) shall be borne equally by Acacia and the Partnership.  Each of Acacia and the Partnership shall file all necessary Tax Returns and other documentation with respect to such Transfer Taxes.  If required by Applicable Law, Acacia and the Partnership shall, and shall cause their respective Affiliates, as applicable, to join in the execution of any such Tax Returns and other documentation.

 

Section 5.2                                   Tax Treatment.

 

The parties acknowledge that the contribution and transfer of the Transferred Interests for the Consideration Units is properly characterized as a transaction described in Sections 721(a) of the Code.  The Parties further agree to file all Tax Returns in a manner consistent with the foregoing treatment.

 

ARTICLE VI
 INDEMNIFICATION

 

Section 6.1                                   Indemnification of the Partnership.

 

Subject to the limitations set forth in this Agreement, Acacia, from and after the Closing Date, shall indemnify, defend and hold the Partnership and its Affiliates and their respective securityholders, directors, officers, and employees (in their capacities as such) (collectively, the “Partnership Indemnified Parties”), harmless from and against any and all Damages suffered or incurred by any Partnership Indemnified Party as a result of or arising out of (i) any breach or inaccuracy of a representation or warranty of Acacia in this Agreement or (ii) any breach of any agreement or covenant on the part of Acacia made under this Agreement or the Assignment Agreement or otherwise in connection with the Transaction.

 

Section 6.2                                   Indemnification of Acacia.

 

Subject to the limitations set forth in this Agreement, the Partnership, from and after the Closing Date, shall indemnify, defend and hold Acacia and its Affiliates and their respective securityholders, directors, officers, and employees (in their capacities as such) (collectively, the “Acacia Indemnified Parties”) harmless from and against any and all Damages suffered or incurred by any Acacia Indemnified Party as a result of or arising out of (i) any breach or inaccuracy of a representation or warranty of the Partnership in this Agreement or (ii) any breach of any agreement or covenant on the part of the Partnership or Operating made under this Agreement or the Assignment Agreement or otherwise in connection with the Transaction.

 

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Section 6.3                                   Survival.

 

All the provisions of this Agreement shall survive the Closing, notwithstanding any investigation at any time made by or on behalf of any party hereto, provided that the representations and warranties set forth in Article III and Article IV shall terminate and expire on the date that is 12 months following the Closing Date, except (a) the representations and warranties of Acacia set forth in Section 3.1 (Organization of Acacia),  Section 3.2 (Authority and Approval), Section 3.4 (Title to Transferred Interests) and Section 3.7 (Brokerage Arrangements) (the “Acacia Fundamental Representations”) shall survive indefinitely and (b) the representations and warranties of the Partnership set forth in Section 4.1 (Organization and Existence), Section 4.2 (Authority and Approval) and Section 4.8 (Brokerage Arrangements) (the “Partnership Fundamental Representations”) shall survive indefinitely.  After a representation and warranty has terminated and expired, no indemnification shall or may be sought pursuant to this Article VI on the basis of that representation and warranty by any Person who would have been entitled pursuant to this Article VI to indemnification on the basis of that representation and warranty prior to its termination and expiration, provided that in the case of each representation and warranty that shall terminate and expire as provided in this Section 6.3, no claim presented in writing for indemnification pursuant to this Article VI on the basis of that representation and warranty prior to its termination and expiration shall be affected in any way by that termination and expiration.  The indemnification obligations under this Article VI or elsewhere in this Agreement shall apply regardless of whether any suit or action results solely or in part from the active, passive or concurrent negligence or strict liability of the indemnified party.  The covenants and agreements entered into pursuant to this Agreement to be performed after the Closing shall survive the Closing and shall remain in full force and effect until such covenant or agreement is fully performed in accordance with the terms of this Agreement.

 

Section 6.4                                   Demands.

 

(a)                                 Each indemnified party hereunder agrees that promptly upon its discovery of facts giving rise to a claim for indemnity under the provisions of this Agreement, including receipt by it of notice of any demand, assertion, claim, action or proceeding, judicial or otherwise, by any third party (such claims for indemnity involving third-party claims being collectively referred to herein as the “Third Party Indemnity Claims”), with respect to any matter as to which it claims to be entitled to indemnity under the provisions of this Agreement, it will give prompt notice thereof in writing to the indemnifying party, together with a statement of such information in respect of any of the foregoing as it shall have.  Such notice shall include a formal demand for indemnification under this Agreement.

 

(b)                                 Notwithstanding the foregoing, if the indemnified party fails to notify the indemnifying party thereof in accordance with the provisions of this Agreement in sufficient time to permit the indemnifying party or its counsel to defend against a Third Party Indemnity Claim and to make a timely response thereto, the indemnifying party’s indemnity obligation relating to such Third Party Indemnity Claim shall not be relieved except in the event

 

14

 

and only to the extent that the indemnifying party is prejudiced or damaged by such failure.

 

Section 6.5                                   Right to Contest and Defend.

 

(a)                                 The indemnifying party shall be entitled, at its sole cost and expense, to contest and defend by all appropriate legal proceedings any Third Party Indemnity Claim for which it is called upon to indemnify the indemnified party under the provisions of this Agreement; provided, that notice of the intention to so defend shall be delivered by the indemnifying party to the indemnified party within twenty (20) days from the date of receipt by the indemnifying party of notice by the indemnified party of the assertion of the Third Party Indemnity Claim.  Any such defense may be conducted in the name and on behalf of the indemnifying party or the indemnified party as may be appropriate.  Such defense shall be conducted by reputable counsel employed by the indemnifying party and not reasonably objected to by the indemnified party, but the indemnified party shall have the right but not the obligation to participate in such proceedings and to be represented by counsel of its own choosing at its sole cost and expense.

 

(b)                                 The indemnifying party shall have full authority to determine all action to be taken with respect to legal proceedings relating to any Third Party Indemnity Claim for which it is called upon to indemnify the indemnified party under the provisions of this Agreement; provided, however, that the indemnifying party will not have the authority to subject the indemnified party to any obligation whatsoever, other than the performance of purely ministerial tasks or obligations not involving material expense or injunctive relief.  If the indemnifying party does not elect to defend any such Third Party Indemnity Claim, the indemnified party may pursue such defense and the indemnifying party shall be bound by the result obtained with respect thereto by the indemnified party.  If the indemnifying party assumes the defense of a Third Party Indemnity Claim, the indemnified party shall agree to any settlement, compromise or discharge of a Third Party Indemnity Claim that the indemnifying party may recommend and that by its terms obligates the indemnifying party to pay the full amount of the liability in connection with such Third Party Indemnity Claim, which releases the indemnified party completely in connection with such Third Party Indemnity Claim and which would not otherwise adversely affect the indemnified party as determined by the indemnified party in its sole discretion.

 

(c)                                  Notwithstanding the foregoing, the indemnifying party shall not be entitled to assume the defense of any Third Party Indemnity Claim (but shall be liable for the reasonable fees and expenses of counsel incurred by the indemnified party in defending such Third Party Indemnity Claim) if the Third Party Indemnity Claim seeks an order, injunction or other equitable relief or relief for other than money damages against the indemnified party which the indemnified party reasonably determines, after conferring with its outside

 

15

 

counsel, cannot be separated from any related claim for money damages.  If such equitable relief or other relief portion of the Third Party Indemnity Claim can be so separated from that for money damages, the indemnifying party shall be entitled to assume the defense of the portion relating to money damages.

 

Section 6.6                                   Cooperation.

 

If requested by the indemnifying party, the indemnified party agrees to cooperate with the indemnifying party and its counsel in defending against any Third Party Indemnity Claim that the indemnifying party elects to defend or, if appropriate, in making any counterclaim against the person asserting the Third Party Indemnity Claim, or any cross-complaint against any person, and the indemnifying party will reimburse the indemnified party for any expenses incurred by it in so cooperating.  Likewise, at no cost or expense to the indemnified party, the indemnifying party shall cooperate with the indemnified party and its counsel in the foregoing scenarios with respect to any Third Party Indemnity Claim.

 

Section 6.7                                   Right to Participate.

 

The indemnified party agrees to afford the indemnifying party and its counsel the opportunity to be present at, and to participate in, conferences with all Persons, including Governmental Authorities, asserting any Third Party Indemnity Claim against the indemnified party or conferences with representatives of or counsel for such Persons.  The indemnifying party agrees to provide the same participation rights to the indemnified party and its counsel with respect to any Third Party Claim that the indemnifying party elects to defend in accordance with Section 6.5(a).

 

Section 6.8                                   Payment of Damages.

 

The indemnification required hereunder shall be made by periodic payments of the amount of Damages in connection therewith within ten (10) days as and when reasonably specific bills are received by, or Damages are incurred and reasonable evidence thereof is delivered to, the indemnifying party.  In calculating any amount to be paid by an indemnifying party by reason of the provisions of this Agreement, the amount shall be reduced by all insurance proceeds and any indemnification reimbursement proceeds received from third parties credited to or received by the indemnified party related to the Damages.

 

Section 6.9                                   Direct Claim.

 

Any claim by an indemnified party with respect to any Damages which do not result from a Third Party Indemnity Claim (a “Direct Claim”) will be asserted by giving the indemnifying party reasonably prompt written notice thereof, stating the nature of such claim in reasonable detail and indicating the estimated amount, if practicable.  The indemnifying party will have a period of forty-five (45) days from receipt of such Direct Claim within which to respond to such Direct Claim.  If the indemnifying party does not respond within such forty-five (45) day period, the indemnifying party will be deemed to have accepted such Direct Claim.  If the indemnifying party rejects such Direct Claim, the indemnified party will be free to seek enforcement of its rights to indemnification under this Agreement.

 

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Section 6.10                            Limitations on Indemnification.

 

(a)                                 To the extent that the Partnership Indemnified Parties are entitled to indemnification for Damages pursuant to Section 6.1(i), Acacia’s aggregate liability to the Partnership Indemnified Parties under Section 6.1(i) shall not exceed $138,750,000 (the “Ceiling Amount”).  Notwithstanding the foregoing, the Ceiling Amount shall not apply to breaches or inaccuracies of the Acacia Fundamental Representations.

 

(b)                                 To the extent that the Acacia Indemnified Parties would otherwise be entitled to indemnification for Damages pursuant to Section 6.2(i), the Partnership’s aggregate liability to the Acacia Indemnified Parties under Section 6.2 shall not exceed the Ceiling Amount.  Notwithstanding the foregoing, the Ceiling Amount shall not apply to breaches or inaccuracies of the Partnership Fundamental Representations.

 

(c)                                  Additionally, neither the Partnership, on the one hand, nor Acacia, on the other hand, will be liable as an indemnitor, and each of Acacia and the Partnership hereby waives claims against the other party, under this Agreement for any consequential, incidental, special, indirect, exemplary or punitive damages based on any theory of liability (including lost profits) suffered or incurred by the indemnified party or parties except to the extent resulting pursuant to Third Party Indemnity Claims.

 

Section 6.11                            Sole Remedy.

 

No party shall have liability under this Agreement, the Assignment Agreements or the transactions contemplated hereby or thereby except as is provided in this Article VI (other than claims or causes of action arising from fraud).

 

ARTICLE VII
  MISCELLANEOUS

 

Section 7.1                                   Acknowledgements.

 

Each party acknowledges that it has relied on the representations and warranties of the other party expressly and specifically set forth in this Agreement.  Such representations and warranties constitute the sole and exclusive representations and warranties of the parties hereto in connection with the transactions contemplated hereby, and the parties hereto understand, acknowledge and agree that all other representations and warranties of any kind or nature, whether expressed, implied or statutory, oral or written, past or present, are specifically disclaimed.

 

Section 7.2                                   Cooperation; Further Assurances.

 

Acacia and the Partnership shall use their respective commercially reasonable efforts, and the Partnership will use commercially reasonable efforts to cause Holdings and Operating, to obtain all approvals and consents required by or necessary for the Transaction.  Each of the

 

17

 

parties acknowledges that certain actions may be necessary with respect to the matters and actions contemplated by this Agreement and the Assignment Agreement such as making notifications and obtaining consents or approvals or other clearances that are material to the consummation of the Transaction, and each agrees to take all appropriate action and to do all things necessary, proper or advisable under Applicable Laws and regulations to make effective the Transaction; provided, however, that nothing in this Agreement will require any party hereto to hold separate or make any divestiture not expressly contemplated herein of any asset or otherwise agree to any restriction on its operations or other burdensome condition which would in any such case be material to its assets, liabilities or business in order to obtain any consent or approval or other clearance required by this Agreement or the Assignment Agreement.

 

Section 7.3                                   Expenses.

 

Except as otherwise provided herein and regardless of whether the Transaction is consummated, each party shall pay its own expenses incident to this Agreement and all action taken in preparation for carrying this Agreement into effect.

 

Section 7.4                                   Notices.

 

Any notice, request, instruction, correspondence or other document to be given hereunder by any party hereto to another party hereto (herein collectively called “Notice”) shall be in writing and delivered in person, by courier service requiring acknowledgment of receipt of delivery or by fax, as follows:

 

If to Acacia, addressed to:

 

Acacia Natural Gas Corp I, Inc.

2501 Cedar Springs Rd.

Dallas, TX 75201

Attention: General Counsel

Tel: (214) 953-9500

Fax: (214) 721-9383

 

with copies (which shall not constitute notice) to:

 

Baker Botts L.L.P.

2001 Ross Avenue

Dallas, TX 75201

Attention: Douglass M. Rayburn

Tel: (214) 953-6634

Fax: (214) 661-4634

 

If to the Partnership or Holdings, addressed to:

 

EnLink Midstream Partners, LP

2501 Cedar Springs Rd.

 

18

 

Dallas, TX 75201

Attention: General Counsel

Tel: (214) 953-9500

Fax: (214) 721-9383

 

with copies (which shall not constitute notice) to:

 

Morris, Nichols, Arsht & Tunnell LLP

1201 North Market Street, 16th Floor

P.O. Box 1347

Attention: Louis G. Hering

Tel: (302) 658-9200

Fax: (302) 658-3989

 

Notice given by personal delivery or courier service shall be effective upon actual receipt.  Notice given by fax shall be confirmed by appropriate answer back and shall be effective upon actual receipt if received during the recipient’s normal business hours, or at the beginning of the recipient’s next business day after receipt if not received during the recipient’s normal business hours.  Any party may change any address to which Notice is to be given to it by giving Notice as provided above of such change of address.

 

Section 7.5                                   Governing Law.

 

(a)                                 This Agreement shall be subject to and governed by the laws of the State of Delaware, without regard to its principles of conflicts of law.  Each Party hereby submits to the exclusive jurisdiction of and venue in the state and federal courts in the State of Delaware for any legal proceeding between the parties arising out of or relating to this Agreement, the Assignment Agreement or the Transaction.

 

(b)                                 Each of the parties agrees that service of summons, complaint or other process in connection with any legal proceeding described in paragraph (a) above may be made by overnight courier addressed to such party at the address provided in Section 7.4 of this Agreement and that service so made shall be as effective as if personally made in the State of Delaware.

 

(c)                                  Each of the parties to this Agreement irrevocably waives any and all right to trial by jury in any legal proceeding between the parties arising out of or relating to this Agreement, the Assignment Agreement or the Transaction.

 

Section 7.6                                   Public Statements.

 

The parties hereto shall consult with each other and no party shall issue any public announcement or statement with respect to this Agreement or the Transaction without the consent of the other party, unless the party desiring to make such announcement or statement, after seeking such consent from the other parties, obtains advice from legal counsel that a public announcement or statement is required by Applicable Law or stock exchange regulations.

 

19

 

Section 7.7                                   Entire Agreement; Amendments and Waivers.

 

(a)                                 This Agreement and the Assignment Agreement constitute the entire agreement among the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof.  Each party to this Agreement agrees that no other party to this Agreement (including its agents and representatives) has made any representation, warranty, covenant or agreement to or with such party relating to this Agreement or the Transaction, other than those expressly set forth herein and in the Assignment Agreement, as applicable.

 

(b)                                 No supplement, modification or waiver of this Agreement shall be binding unless executed in writing by each party to be bound thereby.  No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (regardless of whether similar), nor shall any such waiver constitute a continuing waiver unless otherwise expressly provided.

 

Section 7.8                                   Action by the Partnership.

 

With respect to any action, Notice, consent, approval or waiver that is required to be taken or given or that may be taken or given by the Partnership with respect to the Transaction, such action, Notice, consent, approval or waiver shall be taken or given by the Conflicts Committee on behalf of the Partnership.

 

Section 7.9                                   Conflicting Provisions.

 

This Agreement and the Assignment Agreement, read as a whole, set forth the parties’ rights, responsibilities and liabilities with respect to the Transaction.  In this Agreement and the Assignment Agreement, and as between them, specific provisions prevail over general provisions.  In the event of a conflict between this Agreement and the Assignment Agreement, this Agreement shall control.

 

Section 7.10                            Binding Effect and Assignment.

 

This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective permitted successors and assigns, but neither this Agreement nor any of the rights, benefits or obligations hereunder shall be assigned or transferred, by operation of law or otherwise, by any party hereto without the prior written consent of each other party; provided, however, that the Partnership may assign any of its rights, interests, obligations or benefits under this Agreement (including its right to acquire some or all of the Transferred Interests at the Closing) to any direct or indirect subsidiary or other Affiliate of the Partnership.  Nothing in this Agreement, express or implied, is intended to confer upon any person or entity other than the parties hereto and their respective permitted successors and assigns, any rights, benefits or obligations hereunder, except for express language with respect to the Partnership Indemnified Parties and the Acacia Indemnified Parties contained in the indemnification provisions of Article VI.

 

20

 

Section 7.11                            Severability.

 

If any provision of the Agreement is rendered or declared illegal or unenforceable by reason of any existing or subsequently enacted legislation or by decree of a court of last resort, the Partnership and Acacia shall promptly meet and negotiate substitute provisions for those rendered or declared illegal or unenforceable, but all of the remaining provisions of this Agreement shall remain in full force and effect.

 

Section 7.12                            Interpretation.

 

It is expressly agreed by the parties that neither this Agreement nor the Assignment Agreement shall be construed against any party hereto or thereto, and no consideration shall be given or presumption made, on the basis of who drafted this Agreement, the Assignment Agreement or any provision hereof or thereof or who supplied the form of this Agreement or the Assignment Agreement.  Each party agrees that this Agreement has been purposefully drawn and correctly reflects its understanding of the transactions contemplated by this Agreement and, therefore, waives the application of any law, regulation, holding or rule of construction providing that ambiguities in an agreement or other document will be construed against the party drafting such agreement or document.

 

Section 7.13                            Headings.

 

The headings of the several Articles and Sections herein are inserted for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement.  The Exhibits and Appendices referred to herein are attached hereto and incorporated herein by this reference, and unless the context expressly requires otherwise, such Exhibits and Appendices are incorporated in the definition of “Agreement.”

 

Section 7.14                            Multiple Counterparts.

 

This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

*    *    *    *     *

 

21

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

 

 

	
 
    	
ACACIA:
    
	
 
    	
 
    
	
 
    	
ACACIA   NATURAL GAS CORP I, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael J. Garberding
    
	
 
    	
 
    	
Name:
    	
Michael   J. Garberding
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President and
    
	
 
    	
 
    	
 
    	
Chief   Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
THE   PARTNERSHIP:
    
	
 
    	
 
    
	
 
    	
ENLINK   MIDSTREAM PARTNERS, LP
    
	
 
    	
 
    
	
 
    	
By:
    	
EnLink   Midstream GP, LLC,
    
	
 
    	
 
    	
its   general partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael J. Garberding
    
	
 
    	
 
    	
Name:
    	
Michael   J. Garberding
    
	
 
    	
 
    	
Title:
    	
Executive   Vice President and
    
	
 
    	
 
    	
 
    	
Chief   Financial Officer
    
					

 

Signature Page to Contribution and Transfer Agreement

 

 

Exhibit A

 

form of assignment agreement

 

This ASSIGNMENT AGREEMENT (this “Assignment Agreement”), dated as of [·], 2015, is entered into by and among Acacia Natural Gas Corp I, Inc., a Delaware corporation (“Acacia”), EnLink Midstream Partners, LP, a Delaware limited partnership (the “Partnership”), and EnLink Midstream Operating, LP, a Delaware limited partnership (“Operating”).  Acacia, the Partnership and Operating may be referred to individually as a “Party” or collectively as the “Parties.”

 

RECITALS

 

A.                                    Pursuant to the terms of a Contribution and Transfer Agreement (the “Contribution Agreement”, with capitalized terms used but not defined herein having the respective meanings set forth in the Contribution Agreement), dated as of the date hereof, between Acacia and the Partnership, Acacia has agreed to transfer to the Partnership or its designee the Transferred Interests.

 

B.                                    Pursuant to Section 2.1 of the Contribution Agreement, the Partnership desires to assign to Operating and Operating desires to accept from the Partnership all of the Partnership’s right to acquire the Transferred Interests.

 

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

 

AGREEMENT

 

1.1.                            Assignment of the Transferred Interests.  At the direction of the Partnership, Acacia hereby grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers the Transferred Interests free and clear of all Liens (other than restrictions under the Holdings Partnership Agreement and applicable federal and state securities laws) to Operating and Operating hereby accepts and assumes obligations arising or accruing from and after the date hereof with respect to the Transferred Interests, effective as of the Closing.

 

1.2.                            Contribution Agreement.  This Assignment Agreement is subject to, in all respects, the terms and conditions of the Contribution Agreement, and nothing contained herein is meant to enlarge, diminish or otherwise alter the terms and conditions of the Contribution Agreement or the Parties’ duties and obligations contained therein.  To the extent there is a conflict between this Assignment Agreement and the Contribution Agreement, the terms of the Contribution Agreement will control.

 

1.3.                            Incorporation of Terms.  The following provisions of the Contribution Agreement are hereby incorporated into and specifically made applicable to this Assignment Agreement (provided, that, unless such incorporated provisions refer specifically to “the Assignment Agreement,” in construing such incorporated provisions, any reference to “this Agreement” shall be deemed to refer to this Assignment Agreement and any reference to “a party” or “the parties” shall be deemed to refer to a Party or the Parties, as applicable):

 

Section 7.2 (Cooperation; Further Assurances)

Section 7.3 (Expenses)

 

 

Section 7.5 (Governing Law)

Section 7.6 (Public Statements)

Section 7.7 (Entire Agreement; Amendments and Waivers)

Section 7.10 (Binding Effect and Assignment)

Section 7.11 (Severability)

Section 7.12 (Interpretation)

Section 7.13 (Headings)

Section 7.14 (Multiple Counterparts)

 

 

IN WITNESS WHEREOF, the Parties have executed this Assignment Agreement as of the date first written above.

 

 

	
 
    	
ACACIA:
    
	
 
    	
 
    
	
 
    	
ACACIA   NATURAL GAS CORP I, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
THE   PARTNERSHIP:
    
	
 
    	
 
    
	
 
    	
ENLINK   MIDSTREAM PARTNERS, LP
    
	
 
    	
 
    
	
 
    	
By:
    	
EnLink   Midstream GP, LLC,
    
	
 
    	
 
    	
its   general partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
OPERATING:
    
	
 
    	
 
    
	
 
    	
ENLINK   MIDSTREAM OPERATING, LP
    
	
 
    	
 
    
	
 
    	
By:
    	
EnLink   Midstream Operating GP, LLC,
    
	
 
    	
 
    	
its   general partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    

 

Signature Page to Assignment Agreement

 

 

EXHIBIT B

 

AMENDMENT NO. 1 TO

SEVENTH AMENDED AND RESTATED 
 AGREEMENT OF LIMITED PARTNERSHIP

OF 
 ENLINK MIDSTREAM PARTNERS, LP

 

This AMENDMENT NO. 1 TO SEVENTH AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP OF ENLINK MIDSTREAM PARTNERS, LP (this “Amendment”), dated as of February 17, 2015, is entered into by EnLink Midstream GP, LLC, a Delaware limited liability company (the “General Partner”), as general partner of EnLink Midstream Partners, LP, a Delaware limited partnership (the “Partnership”).  Capitalized terms used but not defined herein are used as defined in the Seventh Amended and Restated Agreement of Limited Partnership of EnLink Midstream Partners, LP, dated as of July 7, 2014 (the “Partnership Agreement”).

 

RECITALS:

 

WHEREAS, Section 13.1(d)(i) of the Partnership Agreement provides that the General Partner, without the approval of any Partner or Assignee, may amend any provision of the Partnership Agreement to reflect a change that, in the discretion of the General Partner, does not adversely affect the Limited Partners (including any particular class of Partnership Interests as compared to other classes of Partnership Interests) in any material respect. The General Partner has determined that the following amendment to the Partnership Agreement does not adversely affect the Limited Partners (including any particular class of Partnership Interests as compared to other classes of Partnership Interests) in any material respect.

 

WHEREAS, Section 5.4 of the Partnership Agreement provides that the General Partner, without the approval of any Limited Partners, may issue additional Partnership Securities, or classes or series thereof, for any Partnership purpose at any time and from time to time, and may issue such Partnership Securities for such consideration and on such terms and conditions as shall be established by the General Partner in its sole discretion, all without the approval of any Limited Partners.

 

WHEREAS, Section 13.1(g) of the Partnership Agreement provides that the General Partner, without the approval of any Partner or Assignee, may amend any provision of the Partnership Agreement to reflect an amendment that, in the discretion of the General Partner, is necessary or advisable in connection with the authorization of issuance of any class or series of Partnership Securities pursuant to Section 5.4 of the Partnership Agreement.

 

WHEREAS, Acacia Natural Gas Corp I, Inc., a Delaware corporation (“Acacia”), and the Partnership have entered into that certain Contribution and Transfer Agreement (the “Contribution Agreement”) dated February 17, 2015, pursuant to which Acacia will contribute a 25.0% limited partnership interest in EnLink Midstream Holdings, LP to the Partnership or its designee in exchange for Class D Common Units.

 

 

WHEREAS, the General Partner has determined that it is in the best interest of the Partnership to adopt this Amendment in order to provide for the issuance of the Class D Common Units to certain persons pursuant to the Contribution Agreement.

 

WHEREAS, acting pursuant to the power and authority granted to it: (i) under Section 13.1(d)(i) of the Partnership Agreement, the General Partner has determined that this Amendment to the Partnership Agreement does not adversely affect the Limited Partners (including any particular class of Partnership Interests as compared to other classes of Partnership Interests) in any material respect, and (ii) under Section 13.1(g) of the Partnership Agreement, the General Partner has determined that this Amendment to the Partnership Agreement is necessary and advisable in connection with the authorization of issuance of the Class D Common Units.

 

NOW, THEREFORE, the Partnership Agreement is amended as follows:

 

Section 1.                                           Amendment Relating to Class D Common Units.

 

(a)                                 Section 1.1 is amended to add or amend and restate the following definitions in the appropriate alphabetical order:

 

(i)                                     “Class D Capital Amount” has the meaning ascribed to such term in Section 5.3(a).

 

(ii)                                  “Class D Common Unit” means a Partnership Security representing a fractional part of the Partnership Interests of all Limited Partners and Assignees, and having the rights and obligations specified with respect to the Class D Common Units in this Agreement.

 

(iii)                               “Class D Conversion Effective Date” has the meaning assigned to such term in Section 5.8(b)(vi).

 

(iv)                              “Contribution Agreements” means, collectively, the First Contribution Agreement, the Closing Contribution Agreement, the 2013 Contribution Agreement and the 2015 Contribution Agreement.

 

(v)                                 “Initial Common Units” means the Common Units sold in the Initial Offering.

 

(vi)                              “Partnership Security” means any class or series of equity interest in the Partnership (but excluding any options, rights, warrants and appreciation rights relating to an equity interest in the Partnership), including, without limitation, Common Units, Class D Common Units, and Incentive Distribution Rights.

 

(vii)                           “Preceding Quarter” means the Quarter immediately prior to the 2015 Closing Quarter.

 

(viii)                        “Unit” means a Partnership Security that is designated as a “Unit” and shall include Common Units and Class D Common Units but shall not include (i) General

 

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Partner Units (or the General Partner Interest represented thereby) or (ii) Incentive Distribution Rights.

 

(ix)                              “2015 Closing Quarter” means the Quarter commencing on January 1, 2015.

 

(x)                                 “2015 Contribution Agreement” means the Contribution and Transfer Agreement by and between Acacia and the Partnership, dated as of February 17, 2015.

 

(xi)                              “2015 Contribution Agreement Closing Date” means the date of the closing of the contribution of a 25.0% limited partnership interest in EnLink Midstream Holdings, LP to the Partnership or its designee pursuant to the 2015 Contribution Agreement.

 

(b)                                 Section 1.1 of the Partnership Agreement is hereby further amended to add the following to the end of the definition of “Common Unit:”

 

The term “Common Unit” does not refer to a Class D Common Unit prior to its conversion into a Common Unit pursuant to the terms hereof.

 

(c)                                  Section 5.3(a) of the Partnership Agreement is amended to add the following at the end of such section:

 

The initial Capital Account balance in respect of each Class D Common Unit shall equal (A) the closing price of a Common Unit on the National Securities Exchange on the 2015 Contribution Agreement Closing Date less (B) the excess of (x) the amount of distribution paid per Common Unit with respect to the 2015 Closing Quarter, over (y) the amount of distribution paid per Class D Common Unit with respect to the 2015 Closing Quarter (the “Class D Capital Amount”), and the initial Capital Account balance of each holder of Class D Common Units in respect of all Class D Common Units held shall be the product of such Class D Capital Amount multiplied by the number of Class D Common Units held thereby.

 

(d)                                 Article V is amended to add a new Section 5.8 creating a new series of Units to read in its entirety:

 

Section 5.8.                                    Establishment of Class D Common Units.

 

(a)                                 General. The General Partner hereby designates and creates a series of Units to be designated as “Class D Common Units” and consisting of a total of 31,618,311 Class D Common Units, having the same rights and preferences, and subject to the same duties and obligations as the Common Units, except as set forth in this Section 5.8.

 

(b)                                 Rights of Class D Common Units. During the period commencing upon the date of issuance of the Class D Common Units and ending on the Class D Conversion Effective Date, the Class D Common Units shall have the

 

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following rights and preferences and shall be subject to the following duties and obligations:

 

(i)                                     Allocations. Except as otherwise provided in this Agreement, all items of Partnership income, gain, loss, deduction and credit shall be allocated to the Class D Common Units to the same extent as such items would be so allocated if such Class D Common Units were Common Units that were then Outstanding.

 

(ii)                                  Distributions. Except as otherwise provided in this Agreement, the Class D Common Units shall have the right to share in partnership distributions of Available Cash pursuant to Section 6.3, 6.4 or 6.5 on a pro rata basis with the Common Units (excluding distributions with respect to (A) the 2015 Closing Quarter and (B) the Preceding Quarter), so that the amount of any Partnership distribution to each Common Unit will equal the amount of such distribution to each Class D Common Unit. The Class D Common Units shall have the right to share in Partnership distributions of Available Cash pursuant to Section 6.3, 6.4 or 6.5 with respect to the 2015 Closing Quarter, so that the amount of any Partnership distribution to each Class D Common Unit in respect of such Quarter will equal (A) the amount of the distribution in respect of such Quarter to each Common Unit multiplied by (B) a fraction, (x) the numerator of which is the number of days commencing with the 2015 Contribution Agreement Closing Date and ending with the last day of such Quarter and (y) the denominator of which is the total number of days in such Quarter.  For the avoidance of doubt, the holders of the Incentive Distribution Rights shall be entitled to receive distributions pursuant to subsections (b)-(d) of Section 6.4 for the 2015 Closing Quarter in respect of the Class D Common Units, determined as if the Class D Common Units were treated as Common Units, and with appropriate adjustments made to take into account the period in which the Class D Common Units were outstanding during the 2015 Closing Quarter, each as determined by the General Partner in its discretion.

 

(iii)                           Voting Rights.  Prior to the Class D Conversion Effective Date, the Class D Common Units shall be entitled to vote as a single class with the holders of the Common Units on any matters on which Unitholders are entitled to vote, and shall be entitled to vote as a separate class on any matter that adversely affects the rights or preferences of the Class D Common Units in relation to other classes of Partnership Interests (including as a result of a merger or consolidation) or as required by law. The approval of a majority of the Class D Common Units shall be required to approve any matter for which the holders of the Class D Common Units are entitled to vote as a separate class. Each Class D Common Unit will be entitled to the number of votes equal to the number of Common Units into which a Class D Common Unit is convertible at the time of the record date for the vote or written consent on the matter.

 

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(iv)                              Certificates.  The Class D Common Units shall be evidenced by certificates in such form as the General Partner may approve and, subject to the satisfaction of any applicable legal, regulatory and contractual requirements, may be assigned or transferred in a manner identical to the assignment and transfer of other Units.

 

(v)                                 Registrar and Transfer Agent.  The General Partner will act as registrar and transfer agent of the Class D Common Units.

 

(vi)                              Conversion.  Each Class D Common Unit shall automatically convert into one Common Unit (subject to appropriate adjustment in the event of any split-up, combination or similar event affecting the Common Units or other Units that occurs prior to the conversion of the Class D Common Units) effective as of the first Business Day following the Record Date for the distribution with respect to the 2015 Closing Quarter (the “Class D Conversion Effective Date”) without any further action by the holders thereof and without the approval of any Partner. The terms of the Class D Common Units will be changed, automatically and without further action, on the Class D Conversion Effective Date so that each Class D Common Unit is converted into one Common Unit and, immediately thereafter, none of the Class D Common Units shall be Outstanding. Such conversion shall be effective as of the Class D Conversion Effective Date, and the Person entitled to receive the Common Units issuable upon such conversion shall be treated for all purposes as the record holder of such Common Units as of such date.

 

(vii)                           Common Unit Issuance. On the Class D Conversion Effective Date, each Unitholder holders Class D Common Units shall surrender the certificate or certificates representing the Class D Common Units at the office of the Transfer Agent for such Units, and the Transfer Agent shall issue to such holder a certificate or certificates for the number of Common Units to which such holder is entitled and the Partnership shall cause the Transfer Agent to reflect the issuance of the Common Units book entry on the books and records of the Partnership.

 

(e)                                  Section 6.1(d)(iii)(A) is amended and restated to read in its entirety:

 

(A)                               If the amount of cash or the Net Agreed Value of any property distributed (except (x) for any difference resulting from the application of Section 5.8(b)(ii) to the 2015 Closing Quarter or the Preceding Quarter or (y) cash or property distributed or deemed distributed pursuant to Section 12.4) to any class of Unitholder with respect to its Units (other than to the Series A Preferred Unitholders with respect to the Series A Preferred Units) for a taxable period is greater (on a per Unit basis) than the amount of cash or the Net Agreed Value of property distributed to any other class of Unitholders (other than the class of Unitholders holding Series A Preferred Units) with respect to their Units (on a per Unit basis) for such taxable period, then (1) each

 

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Unitholder receiving such greater cash or property distribution shall be allocated gross income in an amount equal to the product of (aa) the amount by which the distribution (on a per Unit basis) to such Unitholder exceeds the distribution (on a per Unit basis) to the Unitholders (other than the class of Unitholders holding Series A Preferred Units) receiving the smallest distribution and (bb) the number of Units owned by the Unitholder receiving the greater distribution; and (2) the General Partner shall be allocated gross income in an aggregate amount equal to the product obtained by multiplying (aa) the quotient determined by dividing (x) the General Partner’s Percentage Interest at the time in which the greater cash or property distribution occurs, by (y) the sum of 100% less the General Partner’s Percentage Interest at the time in which the greater cash or property distribution occurs times (bb) the sum of the amounts allocated in clause (1) above.

 

Section 2.                                           General Authority. The appropriate officers of the General Partner are hereby authorized to make such further clarifying and conforming changes they deem necessary or appropriate, and to interpret the Partnership Agreement, to give effect to the intent and purpose of this Amendment.

 

Section 3.                                           Ratification of Partnership Agreement. Except as expressly modified and amended herein, all of the terms and conditions of the Partnership Agreement shall remain in full force and effect.

 

Section 4.                                           Governing Law. This Amendment will be governed by and construed in accordance with the laws of the State of Delaware.

 

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IN WITNESS WHEREOF, the General Partner has executed this Amendment to be effective as of the date first set forth above.

 

	
 
    	
GENERAL PARTNER:
    
	
 
    	
 
    
	
 
    	
EnLink Midstream GP, LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name: 
    	
Michael J. Garberding
    
	
 
    	
Title: 
    	
Executive Vice President and 

Chief Financial Officer
    

 

[Signature Page to Amendment No. 1 to Seventh Amended and Restated Agreement of Limited Partnership]

 

 

Appendix A

 

The Partnership and Acacia Designated Personnel

 

Acacia Designated Personnel:

 

·                  Michael Garberding

·                  Alaina Brooks

 

Partnership Designated Personnel:

 

·                  Michael Garberding

·                  Alaina BrooksExhibit 10.1

 

ASSET
PURCHASE AGREEMENT

 

This
ASSET PURCHASE AGREEMENT (this “Agreement”), dated as of February 12th, 2015, is entered into by
and among AlvaEDU, Inc., a Delaware corporation with principal executive offices located at 327 Plaza Real, Suite 235,
Boca Raton, FL 33432, (the “Company” and/or the “Seller”), and Oxford City Football Club, Inc.,
a Florida corporation, with principal executive offices located at 10 Fairway Drive, Suite 302, Deerfield Beach, FL 33441 (the
“Purchaser” and/or the “Buyer”).

 

W
I T N E S S E T H:

 

WHEREAS,
the Company and the Purchaser are executing and delivering this Agreement in accordance with and in reliance upon the exemption
from securities registration for offers and sales to accredited investors afforded, inter alia, by Rule 506 under
Regulation D (“Regulation D”) as promulgated by the United States Securities and Exchange Commission (the “SEC”)
under the Securities Act of 1933, as amended (the “1933 Act”), and/or Section 4(2) of the 1933 Act; and,

 

WHEREAS,
the Purchaser wishes to purchase all of the Purchased Assets of the Company, as defined below, subject to and upon the terms and
conditions of this Agreement and acceptance of this Agreement by the Company, on the terms and conditions referred to herein;
and,

 

NOW
THEREFORE, in consideration of the premises and the mutual covenants contained herein and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.
AGREEMENT TO PURCHASE; PURCHASE PRICE.

 

a.
Purchase.

 

(i)
Subject to the terms and conditions of this Agreement, the Purchaser hereby agrees to purchase all of the Purchased Assets of
the Company, in return for 28,000,000 unregistered voting common shares of the Purchaser (the “Purchase Amount”),
with a current market value of $7.0 million based on the close price of the common shares of the Purchaser on February 9,
2015.

 

(ii)
In consideration for the Company agreeing to the Purchase Amount, the Purchaser agrees to issue the 28,000,000 unregistered
voting common shares of the Purchaser, all subject to the additional provisions as provided below.

 

b.
Certain Definitions. As used herein, each of the following terms has the meaning set forth below, unless the
context otherwise requires:

 

“Affiliate”
means, with respect to a specific Person referred to in the relevant provision, another Person who or which controls or is controlled
by or is under common control with such specified Person.

 

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“Agreement”
shall mean this Agreement and all Exhibits and Schedules hereto.

 

“Assumed
Obligations” shall have the meaning set forth in Section 2.1.3. 

 

“Business
Brokerage Fee” means the fees payable to the transaction broker.

 

“Closing
Date” means the date of the closing of the Transaction, as provided herein.

 

“Closing
Discharge Obligations” shall have the meaning set forth in Section 2.1.4.

 

“Common
Stock” shall mean the authorized class of restricted common stock, $0.001 par value per share of the Purchaser.

 

“Company
Control Person” means each director, executive officer, promoter, and such other Persons as may be deemed in control
of the Company pursuant to Rule 405 under the 1933 Act or Section 20 of the 1934 Act (as defined below).

 

“Contract”
shall mean any agreement, commitment, lease, contract, note, mortgage, indenture or other obligation.

 

“Encumbrance”
shall mean any lien, pledge, security interest, claim or other encumbrance. 

 

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

 

“Excluded
Assets” shall mean those assets of the Sellers not included among the Purchased Assets, as more fully defined in Section
2.1.2.

 

“GAAP”
shall mean United States generally accepted accounting principles consistently applied.

 

“Governmental
Entity” shall mean the United States of America, or any governmental or regulatory authority, agency, commission, body
or other governmental entity of the United States of America or the State of Florida or any State, or any political subdivision
thereof.

 

“Holder”
means the Person holding the relevant ASSET at the relevant time.

 

“Indebtedness”
shall mean, when used with reference to any Person, without duplication, (i) any liability of such Person created or assumed
by such Person, or any Subsidiary thereof, (A) for borrowed money, (B) evidenced by a bond, note, debenture, or similar
instrument (including a purchase money obligation, deed of trust or mortgage) given in connection with the acquisition of, or
exchange for, any property or assets (other than inventory or similar property acquired and consumed in the Ordinary Course),
including securities and other Indebtedness, (C) in respect of letters of credit issued for such Person’s account and
“swaps” of interest and currency exchange rate (and other interest and currency exchange rate hedging agreements)
to which such Person is a party; (D) for the payment of money as lessee under leases that should be, in accordance with
generally accepted accounting principles, recorded as capital leases for financial reporting purposes; (ii) any liability of
others described in the preceding clause (i) guaranteed as to payment of principal and interest by such Person or in
effect guaranteed by such Person through an agreement, contingent or otherwise, to purchase, repurchase or pay the related
Indebtedness or to acquire security therefor; (iii) all liabilities or obligations secured by a Lien upon property owned by
such Person and upon liabilities or obligations such Person customarily pays interest or principal, whether or not such
Person has not assumed or become liable for the payment of such liabilities or obligations; (iv) any amendment, renewal,
extension, revision or refunding or any such liability or obligation; and (v) any trade payables incurred in the normal
course of business.

 

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“Knowledge”
shall mean, with respect to any Person, the actual knowledge of such Person, provided that if such Person is a business entity,
the actual knowledge of such Person’s executive officers and senior management, after reasonable inquiry.

 

“Last
Financial Report Date” means December 31, 2014.

 

“Law”
shall mean any law, rule, regulation, judgment, injunction, order, decree or other restriction of any court or Governmental Entity
of the United States, or any State or political subdivision thereof.

 

“Liens”
means a lien, charge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

“Material
Adverse Effect” means an event or combination of events, which individually or in the aggregate, would reasonably be
expected to (w) adversely affect the legality, validity or enforceability of the Securities, (x) have or result in a material
adverse effect on the results of operations, assets, prospects, or condition (financial or otherwise) of the Company and its subsidiaries,
taken as a whole, (y) adversely impair the Company's ability to perform fully on a timely basis its obligations under any of this
Agreement or the transactions contemplated thereby, or (z) materially and adversely affect the value of the rights granted to
the Purchaser in this Agreement.

 

“Ordinary
Course” shall mean, when used with reference to the Sellers, the ordinary course of the Seller’s Business, consistent
with past practices and normal day to day operations.

 

“Permitted
Encumbrances” shall mean (a) liens or encumbrances for ad valorem real or personal property taxes or assessments not
at the time due and (b) liens or encumbrances in respect of pledges or deposits under worker’s compensation laws or similar
legislation, carriers’, warehousemen’s, mechanic’s, laborers’ and materialmen’s and similar liens,
if the obligations secured by such liens or encumbrances are not then delinquent and (c) the lien on the Company’s Courseflo
software code base and all associated intellectual property held by the holders of the Notes Payable listed on Schedule 2.1.3.

 

“Person”
means any living person or any entity, such as, but not necessarily limited to, a corporation, partnership or trust.

 

“Purchaser
Control Person” means each director, executive officer, promoter, and such other Persons as may be deemed in control
of the Purchaser pursuant to Rule 405 under the 1933 Act or Section 20 of the 1934 Act.

 

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“Purchased
Assets” shall mean the properties, assets, rights and interests as more fully defined and described in Section 2.1.1,
and including, without limitation, Tangible Assets, Assumed Contracts, Licenses and Permits, Intangible Property Rights, patents,
copyrights, trade names, trademarks and other intellectual properties and rights, customer lists and marketing data, computer
software and systems, Accounts Receivable and books and records, and all goodwill and general intangibles associated with the
Business and other Purchased Assets, except for properties, rights, and interests encompassed within the Excluded Assets.

 

“SEC” the United States Securities
and Exchange Commission.

 

“Tax Returns”
shall mean all federal, state, local or foreign tax returns, tax reports, and declarations of estimated tax required to be filed
with any Governmental Entity.

 

“Tax”
or “Taxes” shall mean any federal, state, local, or foreign income, gross receipts, license, payroll, employment,
excise, severance, stamp, occupation, premium, windfall profits, environmental, customs duties, capital stock, franchise, profits,
withholding, social security, unemployment, disability, real property, personal property, sales, use, transfer, registration,
value added, alternative or add-on minimum, estimated, or other tax of any kind whatsoever, including any interest, penalty, or
addition thereto, whether disputed or not.

 

“Transaction
Fees” means the legal fees incurred by the Purchaser in connection with the Transaction, and the Business Brokerage
Fees.

 

Other Defined Terms.
In addition to the terms defined in the introductory paragraph or recitals to this Agreement, and in Section 1 above, other
capitalized terms used in this Agreement shall have the meanings given to them as provided elsewhere in the text of this Agreement,
and, unless otherwise indicated, all such defined terms shall have their respective meaning throughout this Agreement.

 

c. Form of Payment; Transaction Fees;
Delivery of Certificates.

 

(i) The Purchaser
shall pay the Purchase Amount by delivering immediately to the Company on the Closing Date 28,000,000 restricted common
shares of the Purchaser (the “Securities”).

 

(ii) On the Closing
Date, the Company shall deliver to the Purchaser or its designee all of the Purchased Assets of the Company, as set out
Schedules attached to this Agreement.

 

(iii) By signing
this Agreement, each of the Purchaser and the Company agrees to all of the terms and conditions of this Agreement, all of the
provisions of which are incorporated herein by this reference as if set forth in full.

 

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2. PURCHASE AND
SALE OF ASSETS

 

2.1 Assets Being Purchased and
Liabilities Being Assumed.

 

2.1.1
Purchased Assets. The Buyer (or its nominees) agrees to purchase from the Seller, and the Seller agrees to sell, transfer
and assign to the Buyer (or its nominees), free and clear of any and all mortgages, liens, security interests, encumbrances, pledges,
leases, equities, claims, charges, restrictions, conditions, conditional sale contracts, and any other adverse interests of any
kind whatsoever (other than those securing any Assumed Obligations described in Section 2.1.3 hereof and other than Permitted
Encumbrances), all of the operating assets, the Businesses, licenses and permits, contracts, trade names and intellectual property,
and goodwill/going concern value of each Seller (excluding the Excluded Assets), wherever located, which are owned or used by
the Seller in connection with the Businesses (collectively, the “Purchased Assets”). The Seller acknowledges
and agrees that the Buyer may form separate subsidiaries to acquire the assets and operations of the Company. The Purchased Assets
shall include, but shall not be limited to, and the Seller represents and warrants with respect thereto, the following:

 

(a)   Tangible
Assets. All the tangible personal property, including but not limited to, cash in all accounts (excluding negative
account balances), security deposits, machinery, equipment, computers, phones, tools, vehicles, containers, parts, books and records,
materials and supplies, customer and supplier records, files and documents of whatever kind and nature, furniture and fixtures
wherever located (collectively, the “Tangible Assets”), the material items of which are identified in
Schedule 2.1.1(a) attached hereto;

 

(b)    Assumed
Contracts. All of the rights, tangible and intangible, and leasehold interests in real and personal property of
the Seller that relate to and are necessary to the operation of the Business existing under any customer, material contracts,
agreements, leases, licenses, instruments or commitments, all of which (other than customer purchase orders) are listed on Schedule
2.1.1(b), and its sub-schedules, attached hereto (collectively, the “Assumed Contracts”)
and will be updated as of the Closing Date. Unless set forth on Schedule 2.1.1(b) or any of the sub-schedules
thereto, such agreement or commitment is not an Assumed Contract by the Buyer. The Assumed Contracts in Schedule 2.1,1(b)
shall include at a minimum the following:

 

(i)Schedule
2.1.1(b)(i) contains a true and complete list and description of the outstanding sales order and sales contract
backlog of the Seller having an indicated gross value in excess of Five Thousand Dollars ($5,000.00) or having a term of
duration in excess of six months. All outstanding sales orders and sales contracts of the Seller have been entered into in
the ordinary course and in compliance with all applicable laws and regulations. Except as described in Schedule
2.1.1(b)(i), the Seller has not received any advance, progress payment or deposit in respect of any sales order or
sales contract, and the Seller has no sales order or sales contract that will result, upon completion or performance thereof,
in gross margins materially lower than those normally experienced by the Seller for the services or products covered by such
sales order or sales contract.

 

(ii) Schedule
2.1.1(b)(ii) contains a true and complete list and description of all outstanding customer
contracts. All outstanding customer contract or commitments of the Seller have been incurred in the ordinary course, and no customer
contract or commitment is in excess of the normal, ordinary and usual requirements of the business of the Seller or at a price
below fair market value.

 

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(iii)     Schedule
2.1.1(b)(iii) contains a true and complete list of all sales agency, sales representative, and similar contracts or agreements
of the Seller, and true and complete copies of the same have been delivered to Buyer heretofore. Except as described in
Schedule 2.1.1(b)(iii), all of such contracts and agreements are terminable at any time by the applicable
Seller without liability or penalty (including, without limitation, any obligation to repurchase inventories on hand) upon not
more than thirty (30) days’ notice.

 

(iv)     Schedule
2.1.1(b)(iv) contains a true and complete list and description of all noncompetition agreements and covenants in favor
of the Seller, and true and complete copies of the same have been delivered to Buyer heretofore.

 

(v)
      Schedule  2.1.1(b)(v)
contains a true and complete list and description of all contracts, agreements, understandings, arrangements and commitments,
written or oral, of the Seller with any officer, director, consultant, employee or Affiliate of the Seller or with any associate,
Affiliate or employee of any Affiliate of the Seller, other than those disclosed in Schedule 2.1.1(b)(v) hereto;
in each case a true and complete copy of such written contract, agreement, understanding, arrangement or commitment or a true
and complete summary of such oral contract, agreement, understanding, arrangement or commitment has been delivered to Buyer heretofore.

 

(vi)        Schedule
2.1.1(b)(vi) contains a true and complete list and description of all other material contracts, agreements, understandings,
arrangements and commitments, written or oral, of the Seller by which it or its properties, rights or assets are bound that are
not otherwise disclosed in this Agreement or the Schedule hereto. True and complete copies of such written contracts, agreements,
understandings, arrangements and commitments and true and complete summaries of such oral contracts, agreements, understandings,
arrangements and commitments have been delivered to Buyer heretofore. For the purposes of this subsection (f), “material”
means any contract, agreement, understanding, arrangement or commitment that (i) involves performance by any party more than ninety
(90) days from the date hereof, (ii) involves payments or receipts by the Seller in excess of Five Thousand Dollars ($5,000.00),
(iii) involves capital expenditures in excess of Five Thousand Dollars ($5,000.00) or (iv) otherwise materially affects the Seller.

 

(c)     Licenses and Permits. All rights in and to any governmental
and private permits, licenses, franchises and authorizations, to the extent assignable, used in connection with the Business (collectively,
the “Licenses and Permits”) as set forth on Schedule 2.1.1(c);

 

(d)   Intangible
Property Rights. All rights in and to any requirements, processes, formulations, methods, technology, know-how,
formulae, trade secrets, trade dress, designs, inventions, mask work rights, covenants by others not to compete and other proprietary
rights and all documentation embodying, representing or otherwise describing any of the foregoing, owned or held by the Seller
(collectively, the “Intangible Property Rights”), all of which are set forth on Schedule 2.1.1(d);

 

(e)    Patents,
Copyrights, Trademarks, etc. All intellectual property owned by Seller, including without limitation, patents,
copyrights, trade names, trademarks, service marks, styles, logos, policy manuals and trade secrets which are useful and
necessary in operating the Business, including, without limitation, those set forth on Schedule 2.1.1 (e)
hereto, and all applications therefor, and all documentation embodying, representing or otherwise describing any of
the foregoing (specifically including all rights in the trade names “AlvaEDU.” and all derivations thereof);

 

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(f)     Customer
Lists and Marketing Data. All rights in and to the customer lists, promotion lists, marketing data and other compilations
of names and data developed in connection with the Business, all of which are set forth on Schedule 2.1.1(f),
and which shall be updated and delivered by or on behalf of the Seller to the Buyer at or prior to the Closing;

 

(g)    Computer
Software. All of the Seller’s rights in and to the computer software programs and systems used in connection
with the Business, and including all software licensed to the Seller (but only to the extent assignable) used in connection with
the Business, in each case to the extent that the Seller possesses and has a right to possess and transfer the same; provided
that if Seller does not have the right to assign or transfer the software license to Buyer, the Seller agrees to use reasonable
efforts to obtain the consent (if possible) of such licensors to assign such software products to the Buyer;

 

(h)   Books
and Records. All customer, vendor and operating schedules, lists, files (including invoices, purchase orders, customer
records, supplier information, and product records), books, publications, financial records, and other operating records and data
of the Seller used or maintained in connection with the Business.

 

(i)     Accounts
Receivable. All accounts receivable (which term shall mean and include all accounts, accounts receivable and all
other rights of Seller to payment and/or performance of any nature, including rights subject to any conditions or contingencies)
of Seller of whatever kind and nature, and wherever located (collectively, the “Accounts Receivable”),
including but not limited to those which are identified in Schedule 2.1.1(i) attached hereto and which shall be
updated at or immediately prior to the Closing Date.

 

(j)     Assumed
Leaseholds. The real property leases for the Boca Raton, Florida facility and the Cincinnati, Ohio facility
as described in Schedule 2.1.1 (j) (“Assumed Leases”), including without limitation,
the buildings, facilities and leasehold improvements located on the real property that is subject to an Assumed Lease, and
including all prepaid rent and security or other deposits, and all related credits, will be reviewed by the Purchaser and a
decision by the Purchaser will be made as to whether to continue on with these leases at the Closing Date;

 

(k)    Insurance
and Other Assets. All insurance policies relating to the Purchased Assets that Buyer wishes to acquire, as listed
on Schedule 2.1.1 (k), and all deposits and prepaid expenses relating to Tangible Assets or other Purchased Assets,
including cash deposits with equipment lessor, and, to the extent transferable, all deposits posted with vendors or suppliers,
and all cash and equivalents held by Sellers or on deposit with financial institutions as of the Closing, and the Seller’s
local depository bank accounts used for the deposit of cash generated by the Business, and all goodwill and general intangibles
associated with the Business.

 

(l)     License
to Courseflo. A royalty-free license to the Courseflo software code base and associated intellectual property through
March 1, 2016.

 

    	7

    	 

    

 

2.1.2
Excluded Assets. The Buyer is not purchasing from the Seller, and the Seller is not transferring or assigning
to the Buyer, the following assets and rights of the Seller (collectively, “Excluded Assets”): (i) any
and all employee benefit plans or programs as set forth as a Seller Plan under Section 3.15 hereto; and (ii) any negative account
balances in any bank accounts.

 

2.1.3
Assumed Obligations. The Buyer shall assume no liabilities, obligations or claims of any kind arising from the
Business or the Purchased Assets except as specifically set forth herein. The Buyer agrees to assume and perform, and to pay and
discharge in accordance with their terms, only the following: (i) Trade accounts payable in the ordinary course of Business
as of the Closing Date, but only to the extent such trade payables (x) are listed by payee and amount in the schedules attached
to this Agreement, or (y) arose solely in the Ordinary Course of business after the date as of which such schedules were prepared
and (z) do not in the aggregate exceed the amount of the Accounts Receivable of such respective Seller being assigned to and assumed
by Buyer as of the Closing Date, (ii) Notes Payable as listed on Schedule 2.1.3, (iii) the obligations of the Seller
arising after the Closing Date under certain equipment leases, service contracts, and other contracts specifically set forth on
Schedule 2.1.1(c) (the “Assumed Contracts”), and (iv) the Assumed Leases. The foregoing
Assumed Obligations and obligations of Seller are sometimes collectively called the “Assumed Obligations”.

 

2.1.4
Obligations to Be Paid or Discharged at Closing. At Closing, the Buyer (or its nominees) agrees to pay or otherwise
discharge the obligations set forth on Schedule 2.1.4. The foregoing obligations to pay or discharge matters shall
be known as the “Closing Discharge Obligations”. The Closing Discharge Obligations may be paid
by use of proceeds deriving from the Purchase Amount.

 

2.1.5
Further Assurances on the Assumed Obligations and Closing Discharge Obligations. The Seller represents and warrants
that the Assumed Obligations and the Contracts from which they arise will be valid and binding upon the parties thereto and will
not be subject to any breach by any party as of the Closing. The Seller further represents and warrants that the Assumed
Obligations plus the Closing Discharge Obligations but excluding the Notes Payable listed on Schedule 2.1.3 shall not exceed $50,000.

 

2.1.6
Liabilities Not Assumed. Except for the Assumed Contracts, the Assumed Obligations and the Closing Discharge Obligations
set forth in Sections 2.1.3 and 2.1.4, (i) the Seller agrees that the Buyer will not assume or perform or pay any obligations,
liabilities, debts, accounts payable or contracts of the Seller whatsoever (including without limitation any Tax imposed on the
Seller prior to the Closing or incurred by the Seller because of the sale of the Business, any liabilities, costs or expenses
of the Seller incurred in connection with negotiating or carrying out the terms of this Agreement, any liabilities of the Seller
incurred post-closing, any liabilities of the Seller in connection with any litigation described on Schedule 3.10[a]);
and (ii) the Seller agrees to indemnify and hold the Buyer harmless from and against any and all obligations, liabilities,
accounts payable or debts of the Seller resulting from any and all transactions, occurrences, conditions, events, or omissions
which occurred on or before or were in existence as of the Closing, or which otherwise arose in connection with the Purchased
Assets or the Business, or any other business of the Seller, on or before the Closing, whether known or unknown, direct or contingent
and regardless of when asserted.

 

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2.2     Tangible
Assets. The Tangible Assets of the Seller, including, but not limited to, all vehicles, containers, equipment,
tools and machinery, (a) presently are in good condition and repair, consistent with their respective ages and useable in the
ordinary course of the Business being purchased by the Buyer; and (b) at Closing, will not have been subject to any material
change, damage, destruction, or other casualty Loss. As of the Closing, the Tangible Assets will require no material capital
improvements in order to continue the Business in substantially the manner as the Business has heretofore been conducted by
Seller.

 

2.3     Accounts
Receivable. All Accounts Receivable of the Seller reflected in the Last Financial Report and all Accounts
Receivable of the Seller that have arisen since the Last Financial Report Date (except such Accounts Receivable as have been collected
since such dates) are valid and enforceable claims, and the goods and services sold and delivered that gave rise to such accounts
were sold and delivered in conformity with all applicable express and implied warranties, purchase orders, laws, regulations,
agreements and specifications. Such Accounts Receivable of the Seller are subject to no valid defense, offset or counterclaim
and are fully collectible. Schedule 2.1.1(i) contains a true and complete aging of the Seller’s Accounts Receivable
as of February 10, 2015.

 

2.5    Intellectual
Property. Schedule 2.1.1(e) is a true and correct list (including, where applicable, the country of registration)
of all intellectual property rights, including patents, copyrights, trademarks, service marks, trade names, logos, product designs,
and all applications therefor, and computer software owned by the Seller for use in the Business or in which Seller has rights
or licenses to use which are material to the Business. Except as set forth on Schedule 2.1.1(e), to the Knowledge of the Seller,
it has not infringed, and is not now infringing, any patent, trade name, trademark, service mark, copyright, trade secret, technology,
know-how or process belonging to any other person, firm or corporation. The Seller has not received any notice of a claim of any
such infringement, other than listed on Schedule 2.1.1(e).

 

2.6      Title
to and Adequacy of Purchased Assets. Except for the Permitted Encumbrances and the Notes as disclosed on Schedule
2.1.3 hereto, the Seller has, and will transfer to the Buyer at the Closing, good and marketable title to the Purchased Assets,
free and clear of restrictions or conditions on transfer or assignment, and free and clear of all mortgages, liens, security interests,
encumbrances, pledges, leases, equities, claims, charges, conditions, and conditional sale contracts other than Permitted Encumbrances
and Assumed Obligations. All of the Purchased Assets are in the exclusive possession and control of Seller and, subject to Seller’s
obligations under the Notes set forth on Schedule 2.1.3, Seller has the unencumbered right to use such assets without interference
from others. The Purchased Assets constitute substantially all of the assets, properties, rights, privileges and interests necessary
for the operation of the Business after the Closing in substantially the same manner as the Business has heretofore been conducted
by Seller.

 

2.7     Contracts.
Except for the Contracts listed in Schedule 2.1.1(b), and its sub-schedules, the Seller is not a party to any material
Contract:

 

a.   for
the purchase of equipment, materials and supplies and the sale of services, other than in the ordinary course of the Business
consistent with past practices;

 

b.   the
performance of which is expected to involve consideration in excess of $10,000 per annum or total future payments in excess of
$5,000, other than those terminable without payment or penalty upon no more than thirty (30) days notice;

 

    	9

    	 

    

  

b.   which materially
restricts or contains material limitations on the ability of Seller to
freely conduct business in North America;

 

c.   for
any employment or collective bargaining other than employment agreements with employees terminable at will or with such notice
as may be required by law;

 

d.   for
the sale of any assets used in the Seller’s Business or the grant of any rights to purchase any such assets, other than
Contracts for sales or other dispositions of assets which are permitted by the provisions of this Agreement;

 

e.   that
is otherwise material to the Seller’s Business and is terminable by the other party thereto upon the occurrence of the transaction
contemplated by this Agreement; or

 

f.   providing
for or relating to the disposal of materials required in the ordinary course of Seller’s Business.

 

The
Seller has made available to the Buyer a correct and complete copy of each Contract on Schedule 2.1.1(b), and its
sub-schedules, together with any and all amendments or modifications thereto. Each such Contract assumed by the Buyer is valid,
binding, enforceable, and in full force and effect, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium
and similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles. Neither
the Seller nor, to the Knowledge of the Seller, any third party is in breach or default in any material respect under any such
Contract assumed by the Buyer. No event has occurred which, with notice or lapse of time, or both, would constitute a material
breach or default, or permit termination, modification, or acceleration, under such Contract assumed by the Buyer.

 

2.8    Litigation.
There are no claims, actions, suits, arbitrations, proceedings or investigations pending or, to the Knowledge of the Seller,
threatened against the Seller, generally, or against Seller, in particular, at law, in equity or otherwise, in, before, or by,
any court or Governmental Entity or authority which relate to the Seller’s Business or the Purchased Assets. Neither the
Seller nor its assets or properties (specifically including, but not limited to, the Purchased Assets) are subject to any order,
writ, judgment, injunction, decree or award.

 

At
Closing, there will be no litigation, arbitration, proceeding or order in existence or threatened which will in any way prohibit
or affect transfer to the Buyer of good and marketable title to the Purchased Assets and the Seller’s Business, free and
clear from all liens, encumbrances, claims, and agreements whatsoever, other than Permitted Encumbrances and the encumbrances
from the Notes listed on Schedule 2.1.3 which the Buyer expressly agrees to assume.

 

2.9 Labor
Matters. The Seller is not a party to any collective bargaining agreement respecting its Seller employees,
nor is there pending, or to the Knowledge of the Seller threatened, any strike, walkout or other work stoppage, or any union
organizing effort by or respecting the Seller employees of the Seller. The Seller does not have written employment agreements
with any of its employees employed in the Businesses.

 

The
Seller will not take or omit to take any action which would hinder the Buyer in making appropriate arrangements with managers,
supervisors or other employees of the Seller’s Business for their continued work as an employee of the Buyer after
the Closing.

 

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2.10 Employee Benefits.

 

(a)Schedule
2.10 sets forth a list of each employee benefit, stock purchase, stock option, severance, change-in-control, fringe benefit,
bonus, incentive and deferred compensation plan, agreement, program, policy or other arrangement which in the past three years
has been maintained, sponsored or contributed to by the Seller (collectively, the “Seller Plans”). The
Seller acknowledges that the Buyer is not assuming any obligation under any Seller Plan. The Buyer acknowledges that the Seller
intends to terminate each Seller Plan prior to the Closing. None of the Purchased Assets are subject to any lien in favor of or
enforceable by the Pension Benefit Guaranty Corporation or any similar lien under state or federal law governing employment benefits.
All Seller Plans shall further be considered Excluded Assets for purposes of this Agreement, and the Seller shall defend, indemnify
and hold the Buyer harmless from any losses, liabilities or obligations arising in connection with any Seller Plan.

 

(b)The
Seller will make available to the Buyer a summary plan description of each Seller Plan within ten (10) days after the date of
this Agreement.

 

(c)All
Seller Plans have been maintained and are in compliance in all material respects with all Laws, including the Internal Revenue
Code and ERISA.

 

2.11
Insurance. The Seller maintains in full force and effect such insurance policies and self-insurance programs concerning
Seller, the Seller’s Business, and the Purchased Assets which are materially consistent in amounts and against risks consistent
with industry practice for businesses like the Business conducted by Seller. Schedule 2.1.1(k) lists all insurance
policies and the respective amounts of such policies carried by the Seller with respect to the Seller’s Businesses and the
Purchased Assets.

 

2.12
Government Regulations. Seller is not subject to any regulation by government agency that would limit or restrict the
Seller Business as presently conducted.

 

2.13
Disclosure. No representation or warranty of the Seller contained in this Agreement contains any untrue statement of
a material fact or omits to state any material fact necessary to make the statements herein, taken as a whole and in light of
the circumstances under which they were made, not misleading.

 

2.14
Computer Software and Systems. Schedule 2.1.1(a) contains a complete list of all of the software and systems
and computers used in the operations of the Seller Business (the “Systems”). All Systems are included
among the Purchased Assets, except any identified among the Excluded Assets, and Seller has good right and lawful authority to
convey and assign to Buyer (or its nominees) all such Systems, including without limitation, all licenses with respect thereto.

 

2.15
Undisclosed Liabilities. Except (i) to the extent set forth or provided for in the Last Financial Report or the notes
thereto, or (ii) for non-material current liabilities incurred since the Last Financial Report Date in the Ordinary Course and
disclosed by Seller to Buyer prior to Closing, as of the date hereof and as of the Closing the Seller has no liabilities, whether
accrued, absolute, contingent or otherwise, whether due or to become due and whether the amounts thereof are readily ascertainable
or not, or any unrealized or anticipated losses from any commitments of a contractual nature, including Taxes with respect to
or based upon the transactions or events occurring at or prior to the Closing.

 

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2.16
Business Relations. The Seller has no Knowledge that (i) any customer will refuse to do business with the Buyer after
the consummation of the transaction contemplated hereby on substantially the same terms and at substantially the same levels (considered
on an annualized basis) as previously conducted with Seller; or (ii) any customer or client of the Business has requested or intends
to request any decrease in the cost of goods or services provided by the Business; or (iii) any vendor of goods or services to
the Business expects or intends to increase the cost of goods or services provided by such vendor to the Business or decrease
the quantity of goods or services allocated to the Business; or (iv) any distribution agreement or sales representative agreement
to which Seller is a party or bound is exclusive. However, the Seller does not represent, warrant or guarantee that any customer
or supplier of Seller will continue to do business with the Buyer on the same terms and conditions as with the Seller.

 

2.17
Liabilities of the Seller. Other than the obligations of Seller specifically assumed in writing by the Buyer in this
Agreement, the Seller will indemnify and hold the Buyer harmless of and from any and all accounts payable, obligations, liabilities,
or debts of Seller or the Seller resulting from any and all transactions, occurrences, conditions, events, or omissions which
occurred on or before or were in existence as of the Closing.

 

2.18
Operations Pending Closing. The Seller agrees to conduct the Seller Business in the usual and normal course and will
use best efforts in the ordinary course of business to keep the existing management team in place from the date of this Agreement
until the Closing; and, in furtherance thereof, the Seller shall use its reasonable best efforts to preserve its relationships
with customers, suppliers, distributors, and others having business dealings with Seller to the end that the goodwill and ongoing
Seller’s Business shall not be impaired in any material respect at or after the Closing, and the Seller will not knowingly
take any action or omit to take any action which, between the date of this Agreement and the Closing, will have a Material Adverse
Effect on the Seller’s Business. The Seller represents and warrants that from the date hereof through the Closing Date,
Seller shall specifically adhere to the covenants contained in Article VI hereof.

 

2.19
Due Diligence. The Seller shall permit the Buyer and its representatives to have reasonable access during regular business
hours, upon notice to the Seller, to the Facilities and to the management employees of Seller, and shall permit the Buyer and
its representatives reasonable opportunity to inspect and review the Purchased Assets, including the operating and financial books
and records of Seller, Contracts of Seller, and any other information concerning the Seller Business necessary or appropriate
to the Buyer to confirm the correctness of the schedules hereto and of Seller’s representations, warranties, and agreements
set forth in this Agreement, and that all conditions to the Closing of this transaction have been satisfied.

 

2.20
Consents. The Seller shall use its reasonable best efforts to obtain all consents, and to take all action and to do
all things necessary on its part to allow the transaction contemplated by this Agreement to Close, and to fulfill all conditions
precedent to the Buyer’s obligation to Close.

 

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3.0
THE COMPANY’S REPRESENTATIONS, WARRANTIES, ETC.; ACCESS TO INFORMATION; INDEPENDENT INVESTIGATION AND CONDITIONS TO
CLOSING.

 

3.1The
Company represents and warrants to, and covenants and agrees with the Purchaser as follows:

 

a.Without
limiting the Company's right to sell the Securities pursuant to an effective registration statement or otherwise in compliance
with the 1933 Act, the Company is selling the Purchased Assets for Securities for its own account for investment only and not
with a view towards the public sale or distribution thereof.

 

b.The
Company is (i) an “accredited investor” as that term is defined in Rule 501 of the General Rules and Regulations under
the 1933 Act by reason of Rule 501(a)(3), (ii) experienced in making investments of the kind described in this Agreement and the
related documents, (iii) able, by reason of the business and financial experience of its officers (if an entity) and professional
advisors (who are not affiliated with or compensated in any way by the Purchaser or any of its Affiliates or selling agents),
to protect its own interests in connection with the transactions described in this Agreement, and the related documents, and to
evaluate the merits and risks of an investment in the Securities, and (iv) able to afford the entire loss of its investment in
the Securities.

 

c.The
Company understands that the Securities are being offered and sold to it in reliance on specific exemptions from the registration
requirements of the 1933 Act and state securities laws and that the Company is relying upon the truth and accuracy of, and the
Purchaser's compliance with, the representations, warranties, agreements, acknowledgments and understandings of the Purchaser
set forth herein in order to determine the availability of such exemptions and the eligibility of the Purchaser to acquire the
Securities.

 

d.The
Company and their advisors, if any, have been furnished with or have been given access to all materials relating to the business,
finances and operations of the Purchaser and materials relating to the offer and sale of the Securities which have been requested
by the Company. The Company and their advisors, if any, have been afforded the opportunity to ask questions of the Purchaser and
its management and have received complete and satisfactory answers to any such inquiries.

 

e.The
Company understands that its investment in the Securities involves a high degree of risk.

 

f.The
Company hereby represents that, in connection with its purchase of the Securities, it has not relied on any statement or representation
by the Purchaser or any of its officers, directors and employees or any of their respective attorneys or agents, except as specifically
set forth herein.

 

g.The
Company understands that no United States federal or state agency or any other government or governmental agency has passed on
or made any recommendation or endorsement of the Securities.

 

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h.This
Agreement to which the Company is a party, and the transactions contemplated thereby, have been duly and validly authorized, executed
and delivered on behalf of the Company and is a valid and binding agreement of the Company enforceable in accordance with its
respective terms, subject as to enforceability to general principles of equity and to bankruptcy, insolvency, moratorium and other
similar laws affecting the enforcement of creditors' rights generally.

 

i.Except
for the business brokerage fee payable by the Purchaser at the Closing Date to Empire Global Financial Services, LLC or its assigns
(“Empire”), the Company has taken no action which would give rise to any claim by any Person for brokerage commission,
finder's fees or similar payments by the Company relating to this Agreement or the transactions contemplated hereby. The Purchaser
hereby agrees to pay to Empire $25,000 in a timely manner after the Closing Date and 2,000,000 restricted common shares or Warrants
to purchase such 2,000,000 common shares at a total cost of $1,000 (available for exercise for 5 years from the Closing Date),
at the sole option of Empire.

 

j.No
Undisclosed Liabilities or Events. To the best of the Company’s knowledge, the Company has no liabilities or obligations
other than those disclosed in the documents provided to the Purchaser or those incurred in the ordinary course of the Company's
business since the last tax return, or which individually or in the aggregate, do not or would not have a Material Adverse Effect.
No event or circumstances has occurred or exists with respect to the Company or its properties, business, operations, condition
(financial or otherwise), or results of operations, which, under applicable law, rule or regulation, requires public disclosure
or announcement prior to the date hereof by the Company but which has not been so publicly announced or disclosed. There are no
proposals currently under consideration or currently anticipated to be under consideration by the Board of Directors or the executive
officers of the Company which proposal would (x) change the articles of organization or certificate of formation or other charter
document or Operating Agreement of the Company, each as currently in effect, or (y) materially or substantially change the business,
assets or capital of the Company, including its interests in Subsidiaries.

 

k.Confirmation.
The Company confirms that all statements of the Company contained herein shall survive acceptance of this Agreement by the
Purchaser. The Company agrees that, if any events occur or circumstances exist prior to the Closing Date or the release of the
Purchase Amount to the Company which would make any of the Company’s representations, warranties, agreements or other information
set forth herein materially untrue or materially inaccurate as of such date, the Company shall immediately notify the Purchaser
(directly or through its counsel, if any) in writing prior to such date of such fact, specifying which representation, warranty
or covenant is affected and the reasons therefor.

 

l.Authorization;
Enforcement. The Company has the requisite Company power and authority to enter into and to consummate the transactions contemplated
by this Agreement and otherwise to carry out its obligations thereunder.

 

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m.Financial
Statements. The financial statements of the Company (the “Financial Statements”) comply in all material respects
with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the
time of filing. Such financial statements have been prepared in accordance with United States generally accepted accounting principles
applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified in such financial
statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP,
and fairly present in all material respects the financial position of the Company and its consolidated subsidiaries as of and
for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited
statements, to normal, immaterial, year-end audit adjustments.

 

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

 

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

 

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

 

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

 

r.Patents
and Trademarks. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks,
trademark applications, service marks, trade names, copyrights, licenses and other similar rights necessary or material for use
in connection with their respective businesses and which the failure to so have could have a Material Adverse Effect (collectively,
the “Intellectual Property Rights”). Neither the Company nor any Subsidiary has received a written notice that
the Intellectual Property Rights used by the Company or any Subsidiary violates or infringes upon the rights of any Person. To
the knowledge of the Company, all such Intellectual Property Rights are enforceable and there is no existing infringement by another
Person of any of the Intellectual Property Rights of others.

 

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s.Insurance.
The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks
and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged. To the
best of Company’s knowledge, such insurance contracts and policies are accurate and complete. Neither the Company nor any
Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage
expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without a significant
increase in cost.

 

t.Transactions
with Affiliates and Employees. None of the officers or directors of the Company and, to the knowledge of the Company, none
of the employees of the Company is presently a party to any transaction with the Company or any Subsidiary (other than for services
as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of
services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any
officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director, or any such
employee has a substantial interest or is an officer, director, trustee or partner, in each case in excess of $50,000 other than
(i) for payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses incurred on behalf of the
Company and (iii) for other employee benefits, including option agreements under any option plan of the Company.

 

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

 

v.No
Disagreements with Accountants and Lawyers. There are no disagreements of any kind presently existing, or reasonably anticipated
by the Company to arise, between the accountants and lawyers formerly or presently employed by the Company and the Company is
current with respect to any fees owed to its accountants and lawyers. By making this representation the Company does not, in any
manner, waive the attorney/client privilege or the confidentiality of the communications between the Company and its lawyers.

 

x.Subsidiaries.
Except as set forth on the Disclosure Annex, the Company does not own or control, directly or indirectly, any interest in
any other company or subsidiary and none of them is a participant in any joint venture, partnership or similar arrangement

 

y.Disclosure.
No representation or warranty of the Company contained in this Agreement, any certificate or document furnished or to be furnished
to the Purchaser at the Closing or the Financial Statements contains any untrue statement of a material fact or omits to state
a material fact necessary in order to make the statement contained herein or therein not misleading in light of the circumstances
under which they were made.

 

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A
breach of any of the representations and warranties in this section, shall be deemed a material breach of this Agreement and shall
constitute an Event of Default and the Purchaser shall be entitled to exercise all remedies available to it under this Agreement.

 

aa.SEC
Reporting Requirements.The Company must provide to the Purchaser full information to satisfy the reporting requirements
of the SEC prior to the Closing Date. Such information which may include audited financials, and full disclosure as required by
a “Super 8K filing”. If audited financial statements are required then Purchaser can select and must pay for the Accountant.

 

ab.Delivery
by the Company of certified copies of its Articles of Organizations or Certificate of Formation and Operating Agreement together
with a Certificate of Good Standing.

 

ac.Delivery
by the Company of historical financial statements of the Company since its creation.

 

ad.Delivery
by the Company of up-to-date financial statements through the last calendar year and internal financial statements from the year
end prior to the Closing Date.

 

ae.The
Company’s assets have encumbrances from the Notes listed on Schedule 2.1.3. All Notes will be amended as follows:

 

		(i)	the
                                         maturity dates of the Notes will be extended to March 1, 2016

 

		(ii)	the
                                         Notes will be secured only by the Courseflo software code base and associated intellectual
                                         property including patent applications, and trademarks (collectively, the “Courseflo
                                         IP”)

 

		(iii)	the
                                         Note holders will have the continuing right to attempt to sell the Courseflo IP to other
                                         third parties so long as the Notes remain outstanding

 

		(iv)	if
                                         the Note holders receive a bona fide offer to purchase the Courseflo IP, then Buyer shall
                                         have a right of first refusal to match such offer within thirty (30 days), and pay such
                                         proposed offer amount to the Note holders whereupon the Note holders shall release their
                                         lien on the Courseflo IP.

 

af.Termination
of all employment agreements and resignations of all directors, and termination of any other agreements all subject to being renegotiated
and renewed by the Purchaser at their sole discretion.

 

ag.Bulk
Transfer Laws. The Seller and the Buyer waive compliance with all applicable provisions, if any, of the bulk sales or
bulk transfer statutes of all applicable jurisdictions. The Seller shall indemnify and hold harmless the Buyer against any and
all liabilities that may be asserted by third parties against the Buyer as a result of non-compliance with any such bulk transfer
law.

 

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ah.Support
Services Following Closing. In order to provide for an orderly transition of the ownership of the Business from the Seller
to the Buyer, and to provide for the uninterrupted and continuing operation of the Business beginning on and continuing after
the Closing, the Seller agrees to provide the following services (the “Support Services”) to the Buyer
after the Closing in the same manner as presently enjoyed by the Seller:

 

a.Telecommunication
services to insure uninterrupted phone service;

 

b.Assistance
with proper Customer invoicing;

 

c.Accounts
receivable collection; and

 

d.other
such services reasonably requested by Buyer

 

The
Seller agrees to provide the Support Services to the Buyer for up to a maximum of three (3) months following the Closing.

 

ai.Covenant
Not to Compete. At the time of Closing, the Seller covenants and agrees to execute, and to cause Timothy Loudermilk to
execute, a Non-compete Agreement substantially similar to the form attached hereto as Exhibit A.

 

The
Seller acknowledges that its obligations under the Non-compete Agreement are reasonable with respect to the period of time covered,
the scope of the business activities in question, and the geographic area to which the Seller’s obligations apply, and are
reasonably necessary to protect the legitimate business interests purchased by the Buyer from the Seller.

 

Each
provision of the aforesaid restrictive covenants within the Non-compete Agreement constitute separate and distinct provisions
thereof and are severable, and accordingly, if any such provision shall for any reason be adjudicated to be invalid, ineffective
or unenforceable, the remaining provisions shall remain in full force and effect and not be affected thereby. In the event of
a breach or threatened breach of any of the aforesaid restrictive covenants, the parties acknowledge that irreparable harm would
result and that there is no adequate remedy of law to redress such breach or threatened breach, and as a consequence, the party
not in breach is entitled to injunctive and other equitable relief against the breaching party in addition to, and not limitation
of, its claim for damages. In addition, any party who breaches any of its aforesaid obligations shall be responsible to pay all
costs, fees and expenses, including reasonable attorney fees of the prevailing party in connection with the enforcement of the
obligations in this Section.

 

aj.Expenses.
The Seller and the Purchaser will each bear their respective legal, accounting, investment banking, broker, due diligence,
environmental, and other costs and expenses incurred in connection with the transaction contemplated by this Agreement, whether
or not the Closing occurs.

 

ak.Delivery
of Purchased Assets. Delivery of the Purchased Assets shall be made by the Seller to the Buyer at the Closing by delivering
such bills of sale, assignments, deeds and other instruments of conveyance and transfer as shall be effective to vest in the Buyer
title to or other interest in, and possession of, and the right to full custody and control of, the Purchased Assets, free and
clear of all liens, charges, encumbrances and security interests whatsoever, other than the Permitted Encumbrances and the Notes
listed on Schedule 2.1.3.

 

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al.Disposition
of Assets. The Seller shall not sell, transfer, license, lease or otherwise dispose of, or suffer or cause the encumbrance
by any lien upon any of its properties or assets, tangible or intangible, or any interest therein, except for sales in the ordinary
course.

 

am.Compensation.
The Seller shall not (a) adopt or amend in any material respect any collective bargaining, bonus, profit-sharing, compensation,
stock option, pension, retirement, deferred compensation, employment or other plan, agreement, trust, fund or arrangement for
the benefit of employees (whether or not legally binding) other than to comply with any legal requirement or (b) pay, or make
any accrual or arrangement for payment of, any increase in compensation, bonuses or special compensation of any kind, or any severance
or termination pay to, or enter into any employment or loan or loan guarantee agreement with, any current or former officer, director,
employee or consultant of the Seller.

 

an.Modification
or Breach of Agreement; New Agreements. The Seller shall not terminate or modify, or commit or cause or suffer to be committed
any act that will result in breach or violation of any term of or (with or without notice or passage of time, or both) constitute
a default under or otherwise give any person a basis for non-performance under, any indenture, mortgage, deed of trust, loan or
credit agreement, lease, license or other agreement, instrument, arrangement or understanding, written or oral, disclosed in this
Agreement or the Schedules hereto. The Seller shall refrain from becoming a party to any contract or commitment other than in
the ordinary course. The Seller shall meet all of its contractual obligations in accordance with their respective terms.

 

ao.Capital
Expenditures. Except for capital expenditures or commitments necessary to maintain its properties and assets in good condition
and repair (the amount of which shall not exceed Five Thousand Dollars ($5,000.00) in the aggregate), following the signing of
this Agreement the Seller shall not purchase or enter into any contract to purchase any capital assets.

 

ap.Certificate
of Good Standing and Existence. The Seller shall have delivered to the Buyer a certificate of good standing and existence
from its jurisdiction of incorporation, and a certificate of authority to transact business from any jurisdiction outside its
state of incorporation dated within thirty (30) days prior the Closing.

 

aq.UCC
Termination Statements and Other Releases. The Buyer shall have received, in form and substance reasonably satisfactory
to the Buyer, UCC Termination Statements and forms of such other release documents with respect to all Encumbrances on the Purchased
Assets which are required by this Agreement to be released upon the Closing, by the filing or recording of documents with applicable
Governmental Entities immediately following the Closing or otherwise, and evidence, in form and substance reasonably satisfactory
to the Buyer, that the Purchased Assets have been (and upon the Closing will be) discharged from all Encumbrances, liens, claims
and agreements whatsoever other than Permitted Encumbrances.

 

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4.0PURCHASER
REPRESENTATIONS AND WARRANTIES, ETC. The Purchaser represents and warrants to the Company as of the date hereof and as of
the Closing Date that:

 

a.Rights
of Others Affecting the Transactions. There are no preemptive rights of any member or security holder of the Purchaser, as
such, to acquire the common shares that may be issued to the Company or its designees in connection with this Agreement and/or
any agreements between the parties hereto. No party other than a Purchaser has a currently exercisable right of first refusal
which would be applicable to any or all of the transactions contemplated by this Agreement.

 

b.Status.
The Purchaser is a corporation duly formed, validly existing and in good standing under the laws of the State of Florida and
has the requisite corporate power to own its properties and to carry on its business as now being conducted. The Purchaser is
duly qualified as a foreign corporation to do business and is in good standing in each jurisdiction where the nature of the business
conducted or property owned by it makes such qualification necessary, other than those jurisdictions in which the failure to so
qualify would not have or result in a Material Adverse Effect. The Company has registered its stock and is obligated to file reports
pursuant to Section 12 or Section 15(d) of the Securities Exchange Act of 1934, as amended (the “1934 Act”).

 

c.Approvals.
No authorization, approval or consent of any court, governmental body, regulatory agency, self-regulatory organization, or
stock exchange or market or the shareholders of the Purchaser is required to be obtained by the Purchaser for the issuance and
sale of the common shares to the Company as contemplated by this Agreement, except such authorizations, approvals and consents
that have been obtained.

 

d.Full
Disclosure. To the best of the Purchaser’s knowledge, there is no fact known to the Purchaser (other than general economic
conditions known to the public generally that has not been disclosed in writing to the Purchaser that would reasonably be expected
to have or result in a Material Adverse Effect.

 

e.Valid
and Binding Agreement. This Agreement to which the Purchaser is a party, and the transactions contemplated thereby, have been
duly and validly authorized, executed and delivered on behalf of the Purchaser and is a valid and binding agreement of the Purchaser
enforceable in accordance with its respective terms, subject as to enforceability to general principles of equity and to bankruptcy,
insolvency, moratorium and other similar laws affecting the enforcement of creditors' rights generally.

 

f.Authorization;
Enforcement. The Purchaser has the requisite power and authority to enter into and to consummate the transactions contemplated
by this Agreement and otherwise to carry out its obligations thereunder.

 

A
breach of any of the representations and warranties in this section, shall be deemed a material breach of this Agreement and shall
constitute an Event of Default and the Seller shall be entitled to exercise all remedies available to it under this Agreement.

 

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5.0CERTAIN
COVENANTS AND ACKNOWLEDGMENTS.

 

5.1.
Transfer Restrictions. The Company acknowledges that (1) the Securities have not been and are not being registered under the
provisions of the 1933 Act and, except as provided in the Registration Rights Provisions or otherwise included in an effective
registration statement, the Shares have not been and are not being registered under the 1933 Act, and may not be transferred unless
(A) subsequently registered thereunder or (B) the Purchaser shall have delivered to the Company an opinion of counsel, reasonably
satisfactory in form, scope and substance to the Company, to the effect that the Securities to be sold or transferred may be sold
or transferred pursuant to an exemption from such registration; (2) any sale of the Securities made in reliance on Rule 144 promulgated
under the 1933 Act (“Rule 144”) may be made only in accordance with the terms of said Rule and further, if said Rule
is not applicable, any resale of such Securities under circumstances in which the seller, or the Person through whom the sale
is made, may be deemed to be an underwriter, as that term is used in the 1933 Act, may require compliance with some other exemption
under the 1933 Act or the rules and regulations of the SEC thereunder; and (3) neither the Company nor any other Person is under
any obligation to register the Securities (other than pursuant to the Registration Rights Provisions) under the 1933 Act or to
comply with the terms and conditions of any exemption thereunder.

 

5.2.
Restrictive Legend. The Company acknowledges and agrees that, until such time as the relevant common shares have been registered
under the 1933 Act, and sold in accordance with an effective Registration Statement or otherwise in accordance with another effective
registration statement or any registration right exemptions such under Rule 144, the common shares shall bear a restrictive legend
in substantially the following form (and a stop-transfer order may be placed against transfer of any such Securities):

 

THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY
NOT BE SOLD OR OFFERED FOR SALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES OR AN OPINION OF COUNSEL
OR OTHER EVIDENCE ACCEPTABLE TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

 

5.3.
Filings. The Purchaser undertakes and agrees to make all necessary filings in connection with the sale of the Securities under
any United States laws and regulations applicable to the Purchaser, or by any domestic securities exchange or trading market,
and to provide a copy thereof to the Purchaser promptly after such filing.

 

5.3.1
Ability to Bear Economic Risk. The Company and the other Persons identified in Schedule 5.3.3 constitute
100% of the stockholders of the Company (the “Shareholders”). Each of the Shareholders is an “accredited”
investor, no representation in regard to accredited investor status is made in this Agreement, and is, rather, made in separate
Subscription Agreements to be executed and delivered by them as a condition to their receipt of Restricted Securities. The Shareholders
each are signing counterparts of this Agreement and/or separate investor questionnaires and investment letters, in order to represent,
as each does, that he or she, respectively, (A) is able to bear the economic risk of his or her investment in the Restricted
Securities, (B) is able to hold the Restricted Securities for an indefinite period of time, (C) can afford a complete loss of
his or her investment in the Restricted Securities and (D) has adequate means of providing for his or her current needs and possible
personal contingencies and has no need for liquidity in this investment.

 

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5.3.2
No Public Solicitation. Seller represents that at no time was the Seller or the Shareholders presented with or solicited
by any general mailing, leaflet, public promotional meeting, newspaper or magazine article, radio or television advertisement,
or any other form of general advertising or general solicitation in connection with the Transfer.

 

5.3.3
Distribution of Restricted Securities to Shareholders. The parties acknowledge that following the consummation of the
transactions contemplated by this Agreement, Seller shall distribute the Restricted Securities to the Shareholders of the Company,
as set forth in Schedule 5.3.3 attached hereto and made a part hereof. In addition to the other terms and conditions
of this Agreement pertaining to the transfer of the Restricted Securities, Seller will make no distribution of the Restricted
Securities unless: (a) such distribution is exempt from registration under the Securities Act and all applicable state laws and
regulations; and (b) the Shareholders execute the acknowledgement and acceptance of the provision of this Section 5.3.3
contained on the signature page hereto in favor of Buyer and agreeing to be bound by the representations and warranties
set forth in this Section 5.3.3 with respect to any Restricted Securities received by the Shareholders.

 

6.0
CLOSING DATE.

 

6.1.
The Closing Date shall occur on the date which is the first business day after each of the conditions contemplated by this
Agreement hereof shall have either been satisfied or been waived by the party in whose favor such conditions run.

 

6.2.
The closing of the Transactions shall occur on the Closing Date at the offices of the Purchaser and shall take place no later
than 3:00 P.M., Florida time, on such day or such other time as is mutually agreed upon by the Company and the Purchaser.

 

7.0
CONDITIONS TO THE COMPANY’S OBLIGATION TO SELL.

 

The
Purchaser understands that the Company's obligation to sell pursuant to this Agreement on the Closing Date is conditioned upon:

 

a.The
execution and delivery of this Agreement by the Purchaser;

 

b.The
execution and delivery of a Management Agreement between Purchaser and Timothy Loudermilk on mutually agreeable terms.

 

c.Approval
of the majority of the shareholders of AlvaEDU, Inc.

 

    	22

    	 

    

 

d.Delivery
by the Purchaser to the Company of payment in full of an amount equal to the Purchase Amount in accordance with this Agreement;

  

e.
The approval of the holders of the Notes Payable set forth on
the attached Schedule 2.1.3 to amend the Notes Payable as contemplated herein and the assumption by the Purchaser of the obligation
to pay such Notes Payable, as amended.

 

f.The
accuracy on such Closing Date of the representations and warranties of the Purchaser contained in this Agreement, each as if made
on such date, and the performance by the Purchaser on or before such date of all covenants and agreements of the Purchaser required
to be performed on or before such date; and

 

g.There
shall not be in effect any law, rule or regulation prohibiting or restricting the transactions contemplated hereby, or requiring
any consent or approval which shall not have been obtained.

 

8.0CONDITIONS
TO THE PURCHASER'S OBLIGATION TO PURCHASE.

 

The
Company understands that the Purchaser's obligation to purchase the Purchased Assets on the Closing Date is conditioned upon:

 

a.The
execution and delivery of this Agreement and completion of the other covenants as set out herein.

 

b.Delivery
by the Purchaser to the Company and the Business Broker of the common shares of the Purchaser.

 

c.Covenants
of the Seller. During the period from the date hereof through the Closing Date, the Seller agrees to:

 

(a)comply
promptly with all requirements that applicable law may impose upon it with respect to the transactions contemplated by the Agreement,
and shall cooperate promptly with, and furnish information to, Buyer in connection with any requirements imposed upon Buyer or
upon any of its affiliates in connection therewith or herewith;

 

(b)use
its reasonable best efforts to obtain (and to cooperate with Buyer in obtaining) any consent, authorization or approval of, or
exemption by, any Person required to be obtained or made by Seller in connection with the transactions contemplated by this Agreement;

 

(c)use
its reasonable best efforts to bring about the satisfaction of the conditions precedent to Closing set forth in Article VII of
this Agreement;

 

(d)promptly
advise Buyer orally and, within three (3) business days thereafter, in writing of any change in Seller’s business or condition
that has had or may have a Material Adverse Effect; and

 

    	23

    	 

    

 

(e)deliver to Buyer
prior to the Closing a written statement disclosing any untrue statement in this Agreement or any Schedule hereto (or supplement
thereto) or document furnished pursuant hereto, or any omission to state any material fact required to make the statements herein
or therein contained complete and not misleading, promptly upon the discovery of such untrue statement or omission, accompanied
by a written supplement to any Schedule to this Agreement that may be affected thereby; provided, however, that
the disclosure of such untrue statement or omission shall not prevent Buyer from terminating this Agreement at any time at or
prior to the Closing in respect of any original untrue or misleading statement.

 

9.0INDEMNIFICATION AND REIMBURSEMENT.

 

a.(i)
The Company agrees to indemnify and hold harmless the Purchaser and its officers, directors, employees, and agents, and each Purchaser
Control Person from and against any losses, claims, damages, liabilities or expenses incurred (collectively, “Damages”),
joint or several, and any action in respect thereof to which the Purchaser, its partners, Affiliates, officers, directors, employees,
and duly authorized agents, and any such Purchaser Control Person becomes subject to, resulting from, arising out of or relating
to any misrepresentation, breach of warranty or nonfulfillment of or failure to perform any covenant or agreement on the part
of the Company, contained in this Agreement, as such Damages are incurred, except to the extent such Damages result primarily
from Purchaser's failure to perform any covenant or agreement contained in this Agreement or the Purchaser's or its officer’s,
director’s, employee’s, agent’s or Purchaser Control Person’s gross negligence, recklessness or bad faith
in performing its obligations under this Agreement.

 

(ii)The
Company hereby agrees that, if the Purchaser, other than by reason of its gross negligence, illegal or willful misconduct
(in each case, as determined by a non-appealable judgment to such effect), (x) becomes involved in any capacity in any
action, proceeding or investigation brought by any Member of the Company, in connection with or as a result of the
consummation of the transactions contemplated by this Agreement, or if the Purchaser is impleaded in any such action,
proceeding or investigation by any Person, or (y) becomes involved in any capacity in any action, proceeding or investigation
brought by the SEC, any self-regulatory organization or other body having jurisdiction, against or involving the Company or
in connection with or as a result of the consummation of the transactions contemplated by this Agreement, or (z) is impleaded
in any such action, proceeding or investigation by any Person, then in any such case, the Company shall indemnify, defend and
hold harmless the Purchaser from and against and in respect of all losses, claims, liabilities, damages or expenses resulting
from, imposed upon or incurred by the Purchaser, directly or indirectly, and reimburse such Purchaser for its reasonable
legal and other expenses (including the cost of any investigation and preparation) incurred in connection therewith, as such
expenses are incurred. The indemnification and reimbursement obligations of the Company under this paragraph shall be in
addition to any liability which the Company may otherwise have, shall extend upon the same terms and conditions to any
Affiliates of the Purchaser who are actually named in such action, proceeding or investigation, and partners, directors,
agents, employees and Purchaser Control Persons (if any), as the case may be, of the Purchaser and any such Affiliate, and
shall be binding upon and inure to the benefit of any successors, assigns, heirs and personal representatives of the
Company, the Purchaser, any such Affiliate and any such Person. The Company also agrees that neither the Purchaser nor
any such Affiliate, partner, director, agent, employee or Purchaser Control Person shall have any liability to the Company or
any Person asserting claims on behalf of or in right of the Company in connection with or as a result of the consummation of
this Agreement, except as may be expressly and specifically provided in or contemplated by this Agreement.

 

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b.All
claims for indemnification by any Indemnified Party (as defined below) under this Section shall be asserted and resolved as follows:

 

(i)In
the event any claim or demand in respect of which any Person claiming indemnification under any provision of this Section (an
“Indemnified Party”) might seek indemnity under paragraph (a) of this Section is asserted against or sought to be
collected from such Indemnified Party by a Person other than a party hereto or an Affiliate thereof (a “Third Party Claim”),
the Indemnified Party shall deliver a written notification, enclosing a copy of all papers served, if any, and specifying the
nature of and basis for such Third Party Claim and for the Indemnified Party's claim for indemnification that is being asserted
under any provision of this Section against any Person (the “Indemnifying Party”), together with the amount or, if
not then reasonably ascertainable, the estimated amount, determined in good faith, of such Third Party Claim (a “Claim Notice”)
with reasonable promptness to the Indemnifying Party. If the Indemnified Party fails to provide the Claim Notice with reasonable
promptness after the Indemnified Party receives notice of such Third Party Claim, the Indemnifying Party shall not be obligated
to indemnify the Indemnified Party with respect to such Third Party Claim to the extent that the Indemnifying Party's ability
to defend has been prejudiced by such failure of the Indemnified Party. The Indemnifying Party shall notify the Indemnified Party
as soon as practicable within the period ending fifteen (15) calendar days following receipt by the Indemnifying Party of either
a Claim Notice or an Indemnity Notice (as defined below) (the “Dispute Period”) whether the Indemnifying Party disputes
its liability or the amount of its liability to the Indemnified Party under this Section and whether the Indemnifying Party desires,
at its sole cost and expense, to defend the Indemnified Party against such Third Party Claim. The following provisions shall also
apply.

 

(aa)
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 paragraph (b) of this Section, then the Indemnifying
Party shall have the right to defend, with counsel reasonably satisfactory to the Indemnified Party, at the sole cost and expense
of the Indemnifying Party, such Third Party Claim by all appropriate proceedings, which proceedings shall be vigorously 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 in the case of any settlement that provides for any relief other than the payment
of monetary damages or that provides for the payment of monetary damages as to which the Indemnified Party shall not be indemnified
in full pursuant to paragraph (a) of this Section). The Indemnifying Party shall have full control of such defense and proceedings,
including any compromise or 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 the first sentence
of this subparagraph (x), file any motion, answer or other pleadings or take any other action that the Indemnified Party reasonably
believes to be necessary or appropriate 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 participate
in, but not control, any defense or settlement of any Third Party Claim controlled by the Indemnifying Party pursuant to this
subparagraph (x), and except as provided in the preceding sentence, the Indemnified Party shall bear its own costs and expenses
with respect to such participation. Notwithstanding the foregoing, the Indemnified Party may take over the control of the defense
or settlement of a Third Party Claim at any time if it irrevocably waives its right to indemnity under paragraph (a) of this Section
with respect to such Third Party Claim.

 

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(bb)
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 pursuant to paragraph (b) of this Section, or if the Indemnifying Party gives such notice but
fails to prosecute vigorously and diligently or settle the Third Party Claim, or if the Indemnifying Party fails to give any notice
whatsoever within the Dispute Period, then the Indemnified Party shall have the right to defend, at the sole cost and expense
of the Indemnifying Party, the Third Party Claim by all appropriate proceedings, which proceedings shall be prosecuted by the
Indemnified Party in a reasonable manner and in good faith or will be settled 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 any compromise or settlement thereof; provided, however, that if requested
by the Indemnified Party, the Indemnifying Party will, at the sole 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 subparagraph (y), if the Indemnifying Party has notified the Indemnified Party
within the Dispute Period that the Indemnifying Party disputes its liability or the amount of 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 in the manner
provided in subparagraph(z) below, the Indemnifying Party will not be required to bear the costs and expenses of the Indemnified
Party's defense pursuant to this subparagraph (y) or of the Indemnifying Party's participation therein at the Indemnified Party's
request, and the Indemnified Party shall reimburse the Indemnifying Party in full for all reasonable costs and expenses incurred
by the Indemnifying Party in connection with such litigation. The Indemnifying Party may participate in, but not control, any
defense or settlement controlled by the Indemnified Party pursuant to this subparagraph (y), and the Indemnifying Party shall
bear its own costs and expenses with respect to such participation.

 

    	26

    	 

    

 

(cc)
If the Indemnifying Party notifies the Indemnified Party that it does not dispute its liability or the amount of its liability
to the Indemnified Party with respect to the Third Party Claim under paragraph (a) of this Section or fails to notify the Indemnified
Party within the Dispute Period whether the Indemnifying Party disputes its liability or the amount of its liability to the Indemnified
Party with respect to such Third Party Claim, the amount of Damages specified in the Claim Notice shall be conclusively deemed
a liability of the Indemnifying Party under paragraph (a) of this Section and the Indemnifying Party shall pay the amount of such
Damages to the Indemnified Party on demand. If the Indemnifying Party has timely disputed its liability or the amount of its liability
with respect to such claim, the Indemnifying Party and the Indemnified Party shall proceed in good faith to negotiate a resolution
of such dispute; provided, however, that if the dispute is not resolved within thirty (30) days after the Claim Notice, the Indemnifying
Party shall be entitled to institute such legal action as it deems appropriate.

 

(ii)In
the event any Indemnified Party should have a claim under paragraph (a) of this Section against the Indemnifying Party that does
not involve a Third Party Claim, the Indemnified Party shall deliver a written notification of a claim for indemnity under paragraph
(a) of this Section specifying the nature of and basis for such claim, together with the amount or, if not then reasonably ascertainable,
the estimated amount, determined in good faith, of such claim (an "Indemnity Notice") with reasonable promptness to
the Indemnifying Party. The failure by any Indemnified Party to give the Indemnity Notice shall not impair such party's rights
hereunder except to the extent that the Indemnifying Party demonstrates that it has been irreparably prejudiced thereby. If the
Indemnifying Party notifies the Indemnified Party that it does not dispute the claim or the amount of 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 or the amount of the claim described in such Indemnity Notice, the amount of Damages specified in the Indemnity Notice will
be conclusively deemed a liability of the Indemnifying Party under paragraph (a) of this Section and the Indemnifying Party shall
pay the amount of such Damages to the Indemnified Party on demand. If the Indemnifying Party has timely disputed its liability
or the amount of its liability with respect to such claim, the Indemnifying Party and the Indemnified Party shall proceed in good
faith to negotiate a resolution of such dispute; provided, however, that it the dispute is not resolved within thirty (30) days
after the Claim Notice, the Indemnifying Party shall be entitled to institute such legal action as it deems appropriate.

 

c.The
indemnity agreements contained herein shall be in addition to (i) any cause of action or similar rights of the indemnified party
against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject to.

 

    	27

    	 

    

 

10.0
SURVIVAL AND INDEMNIFICATION

 

10.1
Limited Survival of Representations, Warranties, Covenants and Agreements.

 

The
representations and warranties included or provided for in this Agreement shall survive the Closing until the expiration of two
(2) years after the Closing; provided however, that the representations and warranties dealing with Taxes of the Seller’s
Business arising prior to the Closing shall survive the Closing and shall remain in full force and effect until the expiration
of the applicable statute of limitations governing such claims. The covenants and other agreements contained in this Agreement
to be performed on or after Closing shall survive the Closing until the date or dates specified therein or the expiration of the
applicable statute of limitations (including any waivers or extensions thereof) with respect to such matters, whichever is later.

 

11.0.
TERMINATION, AMENDMENT AND WAIVER

 

11.1
Termination. This Agreement may be terminated and the transactions contemplated hereby may be abandoned at any time
prior to the Closing, notwithstanding any requisite adoption and approval of this Agreement, as follows:

 

(a)by
mutual written consent of the Seller and the Buyer;

 

(b)by
either the Seller or the Buyer, if the Closing shall not have occurred on or before May 15, 2015; provided, however, that the
right to terminate this Agreement under this Section 11.1(b) shall not be available to any party whose failure to fulfill an obligation
under this Agreement has been the cause of or resulted in the failure of the transactions contemplated hereby to occur on or before
such date;

 

(c)by
either the Seller or the Buyer, if any governmental order, writ, injunction or decree preventing the consummation of the transactions
contemplated hereby shall have been entered by any court of competent jurisdiction and shall have become final and nonappealable;

 

(d)by
the Buyer, upon a material breach of any representation, warranty, covenant or agreement on the part of the Seller set forth in
this Agreement, or if any material representation or warranty of the Seller shall have become untrue, incomplete or incorrect,
in either case such that the conditions set forth in Section 7.1 would not be satisfied (a “Terminating Seller Breach”);
provided, however, that if such Terminating Seller Breach is curable by the Seller through the exercise of reasonable efforts
within 10 days and for so long as the Seller continues to exercise such reasonable efforts during such period, the Buyer may not
terminate this Agreement under this Section 11.1(d); and provided further that the preceding proviso shall not in any event
be deemed to extend any date set forth in Section 11.1(b);

 

(e)by
the Seller, upon a material breach of any representation, warranty, covenant or agreement on the part of the Buyer set forth in
this Agreement, or if any material representation or warranty of the Buyer shall have become untrue, incomplete or incorrect,
in either case such that the conditions set forth in Section 7.2 would not be satisfied (a “Terminating Buyer Breach”);
provided, however, that if such Terminating Buyer Breach is curable by the Buyer through the exercise of its reasonable
efforts within 10 days and for so long as the Buyer continues to exercise such reasonable efforts during such period, the Seller
may not terminate this Agreement under this Section 11.1(e); and provided further that the preceding proviso shall not
in any event be deemed to extend any date set forth in Section 11.1(b);

 

(f)by
the Buyer, in the event that Buyer for any reason during the Due Diligence Audit, deems it appropriate to terminate this Agreement
or pursuant to the provisions of Section 2.2(e); and

 

(g)by
Buyer at any time after the date on which the Seller shall no longer be in 28 operation as an on-going business or if Seller
files a petition in bankruptcy or if an involuntary petition is filed against Seller.

 

    	28

    	 

    

 

11.2
Effect Of Termination. In the event of termination of this Agreement pursuant to Section 11.1, this Agreement shall
forthwith become void, there shall be no liability under this Agreement on the part of any party hereto or any of its affiliates
or any of its or their officers or directors, and all rights and obligations of each party hereto shall cease; provided, however,
that nothing herein shall relieve any party hereto from liability for the willful or intentional breach of any of its representations
and warranties or the willful or intentional breach of any of its covenants or agreements set forth in this Agreement; provided
further, that the provisions of this Section 11.2 shall remain in full force and effect and survive any termination of this
Agreement. Notwithstanding any conflicting or inconsistent provisions in this Agreement, (a) the Buyer’s maximum exposure
and potential liability hereunder for breach of any kind, or any other event, prior to Closing, and (b) Buyer shall retain its
rights to seek specific performance of this Agreement notwithstanding any breach by Seller, and the Seller acknowledges and agrees
that the Purchased Assets are unique, that the Buyer’s remedies at law are inadequate, and that this Agreement may therefore
be specifically enforced by Buyer.

 

11.3
Waiver. At any time prior to the Closing, any party hereto may (a) extend the time for or waive compliance with the
performance of any obligation or other act of any other party hereto or (b) waive any inaccuracy in the representations and warranties
contained herein or in any document delivered pursuant hereto. Any such extension or waiver shall be valid only if set forth in
an instrument in writing signed by the party or parties to be bound thereby.

 

12.MISCELLANEOUS

 

12.1
Amendment and Waiver. Any provision of this Agreement may be amended or waived if, and only if, such amendment or waiver
is in writing and signed, in the case of an amendment, by the Seller and the Buyer, or in the case of a waiver, by the party against
whom the waiver is to be effective. No failure or delay by any party in exercising any right, power or privilege hereunder shall
operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or
the exercise of any other right, power or privilege.

 

12.JURY
TRIAL WAIVER. The Company and the Purchaser hereby waive a trial by jury in any action, proceeding or counterclaim brought
by either of the Parties hereto against the other in respect of any matter arising out or in connection with this Agreement.

 

    	29

    	 

    

 

13.GOVERNING
LAW: MISCELLANEOUS.

 

a.(i)
This Agreement shall be governed by and interpreted in accordance with the laws of the State of Delaware for contracts to be
wholly performed in such state and without giving effect to the principles thereof regarding the conflict of laws. Each of
the parties consents to the exclusive jurisdiction of the federal courts whose districts encompass any part of the County of
Broward or the state courts of the State of Florida sitting in the County of Broward in connection with any dispute arising
under this Agreement and hereby waives, to the maximum extent permitted by law, any objection, including any objection based
on forum non conveniens, to the bringing of any such proceeding in such jurisdictions or to any claim that such venue
of the suit, action or proceeding is improper. To the extent determined by such court, the Company shall reimburse the
Purchaser for any reasonable legal fees and disbursements incurred by the Purchaser in enforcement of or protection of any of
its rights under this Agreement. Nothing in this Section shall affect or limit any right to serve process in any other manner
permitted by law.

 

(ii)
The Company and the Purchaser acknowledge and agree that irreparable damage would occur in the event that any of the provisions
of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed
that the parties shall be entitled to an injunction or injunctions to prevent or cure breaches of the provisions of this Agreement
and to enforce specifically the terms and provisions hereof and thereof, this being in addition to any other remedy to which any
of them may be entitled by law or equity.

 

(iii)
Both Parties to this agreement hereby agree not to contest venue and not to request a jury trial. In the event of any litigation
relating to, arising out of, or concerning this Agreement, the prevailing party shall be entitled to reasonable attorneys’
fees and costs.

 

b.Failure
of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such right or
remedy, shall not operate as a waiver thereof.

 

c.This
Agreement shall inure to the benefit of and be binding upon the successors and assigns of each of the parties hereto; provided,
however, that this Agreement may not be assigned by the Company without the prior written consent of the Purchaser and that this
Agreement may be assigned by the Purchaser at any time.

 

d.All
pronouns and any variations thereof refer to the masculine, feminine or neuter, singular or plural, as the context may require.

 

e.A
facsimile transmission or other electronic mail (including email) of this signed Agreement shall be legal and binding on all parties
hereto, providing an email confirmation or facsimile confirmation or other of written confirmation of receipt is received by the
sending party.

 

f.This
Agreement may be signed in one or more counterparts, each of which shall be deemed an original.

 

g.The
headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this
Agreement.

 

h.If
any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall
not affect the validity or enforceability of the remainder of this Agreement or the validity or enforceability of this Agreement
in any other jurisdiction.

 

i.This
Agreement may be amended only by an instrument in writing signed by the  party  to be charged with enforcement
hereof.

 

j.This
Agreement supersedes all prior agreements and understandings among the  parties hereto with respect to the subject
matter hereof.

 

    	30

    	 

    

 

14.NOTICES. Any
notice required or permitted hereunder shall be given in writing (unless otherwise specified herein) and shall be
deemed effectively given on the earliest of

 

(a)the
date delivered, if delivered by personal delivery as against written receipt therefor or by confirmed facsimile transmission,

 

(b)the
fifth Trading Day after deposit, postage prepaid, in the United States Postal Service by registered or certified mail, or

 

(c)the
third Trading Day after mailing by domestic or international express courier, with delivery costs and fees prepaid,

 

in each case,
addressed to each of the other parties thereunto entitled at the following addresses (or at such other addresses as such party
may designate by ten (10) days’ advance written notice similarly given to each of the other parties hereto):

 

Company:

 

Mr.
Timothy D. Loudermilk

AlvaEDU,
Inc.

327 Plaza
Real, Suite 235

Boca Raton,
FL 33432

 

Purchaser:

 

Mr.
Thomas A. Guerriero

Oxford
City Football Club, Inc.

 

With
a copy to:

 

15.SURVIVAL
OF REPRESENTATIONS AND WARRANTIES. The Company’s and the Purchaser’s representations and warranties herein shall
survive the execution and delivery of this Agreement and the payment of the Purchase Amount, and shall inure to the benefit of
the Purchaser and the Company and their respective successors and assigns.

 

16.CONSTRUCTION
AND EFFECT Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and
valid under applicable law; however, if any such provision shall be prohibited by or invalid under applicable law, such provision
shall be ineffective to the extent of such prohibition or invalidity without invalidating the remainder of such provision or the
remaining provisions of this Agreement.

 

    	31

    	 

    

 

The Parties agree that no presumption of construction
of this document shall be made against the Company or the Consultant, both Parties having had the benefit of legal counsel.

 

[Remainder
of Page Intentionally Left Blank; Signature Page Follows]

 

    	32

    	 

    

 

IN
WITNESS WHEREOF, this Agreement has been duly executed by the Purchaser and the Company as of the date set first above written.

 

	 	ALVAEDU,
    INC.
	 	 	 	 
	 	By:	/s/
    Timothy Loudermilk
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 
	 	OXFORD
    CITY FOOTBALL CLUB, INC.
	 	 	 	 
	 	By:	/s/
    Thomas Guerriero
	 	 	Name:	Thomas
    Guerriero
	 	 	Title:	CEO
    & President

 

SCHEDULES

 

 

33

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