Document:

ex_156745.htm

 

Exhibit 10.2

 

 

NEITHER THE SECURITIES REPRESENTED HEREBY NOR THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER THE SECURITIES LAWS OF ANY STATES. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES ACT AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. UNLESS SOLD PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

 

SUN BIOPHARMA, INC.

 

WARRANT 

 

	
			Warrant No.                            

				
			Original Issue Date:                                            , 2019

			

 

Sun BioPharma, Inc., a Delaware corporation (the “Company”), hereby certifies that, for value received,            or its registered assigns (the “Holder”), is entitled to purchase from the Company up to a total of           shares of Common Stock (each such share, a “Warrant Share” and all such shares, the “Warrant Shares”), at any time and from time to time from and after the Original Issue Date and at or before 5:00 p.m., Eastern Time, through and including          , 2024 (the “Expiration Date”), and subject to the following terms and conditions:

 

1.     Definitions. As used in this Warrant, the following terms shall have the respective definitions set forth in this Section 1. Capitalized terms that are used and not defined in this Warrant that are defined in the Purchase Agreement (as defined below) shall have the respective definitions set forth in the Purchase Agreement.

 

“Business Day” means any day, except a Saturday, Sunday or legal holiday, on which banking institutions in the city of Minneapolis, Minnesota are authorized or obligated by law or executive order to close.

 

“Closing Price” means, as of any particular date: (a) the volume weighted average of the closing sales prices of the Common Stock for such day on all Trading Market on which the Common Stock may at the time be listed; (b) if there have been no sales of the Common Stock on any such Trading Market on any such day, the average of the highest bid and lowest asked prices for the Common Stock on all such Trading Markets at the end of such day; (c) if on any such day the Common Stock is not listed on a Trading Market, the closing sales price of the Common Stock as reported for an OTC Market or similar quotation system or association for such day; or (d) if there have been no sales of the Common Stock on any OTC Market or any similar quotation system or association on such day, the average of the highest bid and lowest asked prices for the Common Stock quoted on the OTC Market or a similar quotation system or association at the end of such day; in each case, averaged over five (5) consecutive Trading Days ending on the Trading Day immediately prior to the day as of which the Closing Price is being determined. If at any time the Common Stock is not listed on any Trading Market or quoted on an OTC Market or similar quotation system or association, the Closing Price of the Common Stock shall be the fair market value per share as determined by the Company’s Board of Directors.

 

“Common Stock” means the common stock of the Company, par value $0.001 per share, and any securities into which such common stock may hereafter be reclassified.

 

“Exercise Price” means $4.00, subject to adjustment in accordance with Section 9.

 

 

 

 

“Fundamental Transaction” means any of the following: (i) the Company effects any merger or consolidation of the Company with or into another person, (ii) the Company effects any sale of all or substantially all of its assets in one or a series of related transactions, (iii) any tender offer or exchange offer (whether by the Company or another person) is completed pursuant to which holders of Common Stock are permitted to tender or exchange their shares for other securities, cash or property, or (iv) the Company effects any reclassification of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property.

 

“Original Issue Date” means the Original Issue Date first set forth on the first page of this Warrant or its predecessor instrument.

 

“OTC Market” means the OTC Markets Group Inc. electronic inter-dealer quotation system, including OTCQX, OTCQB and OTCPink.

 

“Purchase Agreement” means the Securities Purchase Agreement, dated          , 2019, to which the Company and the original Holder are parties.

 

“Trading Day” means (i) a day on which the Common Stock is traded on a Trading Market, or (ii) if the Common Stock is not listed on a Trading Market, a day on which the Common Stock is traded in an OTC Market; provided, that in the event that the Common Stock is not listed or quoted as set forth in clauses (i) and (ii), then Trading Day shall mean a Business Day.

 

“Trading Market” means whichever of the New York Stock Exchange, the NYSE American Stock Exchange, the Nasdaq Global Select Market, the Nasdaq Global Market, the Nasdaq Capital Market, if any, on which the Common Stock is listed or quoted for trading on the date in question.

 

2.     Recordation of Warrant Ownership. The Company shall register this Warrant upon records to be maintained by the Company for that purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary.

 

3.     Recordation of Transfers. The Company shall register the transfer of any portion of this Warrant in the Warrant Register, upon surrender of this Warrant, with the Form of Assignment attached hereto duly completed and signed, to the Company in accordance with Section 12 hereof. Upon any such registration or transfer, a new Warrant to purchase Common Stock, in substantially the form of this Warrant (any such new Warrant, a “New Warrant”), evidencing the portion of this Warrant so transferred shall be issued to the transferee and a New Warrant evidencing the remaining portion of this Warrant not so transferred, if any, shall be issued to the transferring Holder. The acceptance of the New Warrant by the transferee thereof shall be deemed the acceptance by such transferee of all of the rights and obligations of a holder of a Warrant.

 

4.     Exercise and Duration of Warrants.

 

(a)     This Warrant shall be exercisable by the registered Holder in whole at any time and in part from time to time from the Original Issue Date through and including the Expiration Date. At 5:00 p.m., Eastern Time on the Expiration Date, the portion of this Warrant not exercised prior thereto shall be and become void and of no value; provided. The Company may not call or redeem any portion of this Warrant without the prior written consent of the affected Holder.

 

(b)     Notwithstanding anything to the contrary contained herein, the number of Warrant Shares that may be acquired by the Holder upon any exercise of this Warrant (or otherwise in respect hereof) shall be limited to the extent necessary to insure that, following such exercise (or other issuance), the total number of shares of Common Stock then beneficially owned by such Holder and its affiliates (as defined under Rule 144, “Affiliates”) and any other persons whose beneficial ownership of Common Stock would be aggregated with the Holder’s for purposes of Section 13(d) of the Exchange Act, does not exceed 4.999%

 

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of the total number of issued and outstanding shares of Common Stock (including for such purpose the shares of Common Stock issuable upon such exercise).  For such purposes, beneficial ownership shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.  This provision shall not restrict the number of shares of Common Stock which a Holder may receive or beneficially own in order to determine the amount of securities or other consideration that such Holder may receive in the event of a Fundamental Transaction as contemplated in Section 9 of this Warrant.  By written notice to the Company, the Holder may waive the provisions of this Section 4(b), but any such waiver will not be effective until the 61st day after delivery of such notice, nor will any such waiver effect any other Holder.

 

5.     Delivery of Warrant Shares.

 

(a)     To effect exercises hereunder, the Holder shall not be required to physically surrender this Warrant unless the aggregate Warrant Shares represented by this Warrant are being exercised. Upon delivery of the Exercise Notice (in the form attached hereto) to the Company (with the attached Warrant Shares Exercise Log) at its address for notice set forth herein and upon payment of the Exercise Price multiplied by the number of Warrant Shares that the Holder intends to purchase hereunder and the Company shall promptly after the Date of Exercise issue and deliver to the Holder, a certificate (or electronic equivalent) for the Warrant Shares issuable upon such exercise, which, unless otherwise required by the Purchase Agreement, shall be free of restrictive legends. The Company shall, upon request of the Holder and subsequent to the date on which a registration statement covering the resale of the Warrant Shares has been declared effective by the Securities and Exchange Commission, use its reasonable best efforts to deliver Warrant Shares hereunder electronically through the Depository Trust Corporation or another established clearing corporation performing similar functions, if available, provided, that, the Company may, but will not be required to change its transfer agent if its current transfer agent cannot deliver Warrant Shares electronically through the Depository Trust Corporation. A “Date of Exercise” means the date on which the Holder shall have delivered to the Company: (i) the Exercise Notice (with the Warrant Exercise Log attached to it), appropriately completed and duly signed and (ii) if such Holder is not utilizing the cashless exercise provisions set forth in this Warrant, payment of the Exercise Price for the number of Warrant Shares so indicated by the Holder to be purchased.

 

(b)     If by the third Trading Day after a Date of Exercise the Company fails to deliver the required number of Warrant Shares in the manner required pursuant to Section 5(a), then the Holder will have the right to rescind such exercise.

 

(c)     If by the third Trading Day after a Date of Exercise the Company fails to deliver the required number of Warrant Shares in the manner required pursuant to Section 5(a), and if after such third Trading Day and prior to the receipt of such Warrant Shares, the Holder purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Company shall (1) pay in cash to the Holder the amount by which (x) the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (A) the number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue by (B) the closing bid price of the Common Stock at the time of the obligation giving rise to such purchase obligation and (2) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored or deliver to the Holder the number of shares of Common Stock that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In.

 

(d)     The Company’s obligations to issue and deliver Warrant Shares in accordance with the terms hereof are absolute and unconditional, irrespective of any action or inaction by the Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment

 

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against any person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder or any other person of any obligation to the Company or any violation or alleged violation of law by the Holder or any other person, and irrespective of any other circumstance which might otherwise limit such obligation of the Company to the Holder in connection with the issuance of Warrant Shares. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificates representing Warrant Shares upon exercise of the Warrant as required pursuant to the terms hereof.

 

6.     Charges, Taxes and Expenses. Issuance and delivery of Warrant Shares upon exercise of this Warrant shall be made without charge to the Holder for any issue or transfer tax, withholding tax, transfer agent fee or other incidental tax or expense in respect of the issuance of such certificates, all of which taxes and expenses shall be paid by the Company; provided, however, that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the registration of any certificates for Warrant Shares or Warrants in a name other than that of the Holder. The Holder shall be responsible for all other tax liability that may arise as a result of holding or transferring this Warrant or receiving Warrant Shares upon exercise hereof.

 

7.     Replacement of Warrant. If this Warrant is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation hereof, or in lieu of and substitution for this Warrant, a New Warrant, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction and customary and reasonable indemnity (which shall not include a surety bond), if requested. Applicants for a New Warrant under such circumstances shall also comply with such other reasonable regulations and procedures and pay such other reasonable third-party costs as the Company may prescribe. If a New Warrant is requested as a result of a mutilation of this Warrant, then the Holder shall deliver such mutilated Warrant to the Company as a condition precedent to the Company’s obligation to issue the New Warrant.

 

8.     Reservation of Warrant Shares. The Company covenants that it will at all times reserve and keep available out of the aggregate of its authorized but unissued and otherwise unreserved Common Stock, solely for the purpose of enabling it to issue Warrant Shares upon exercise of this Warrant as herein provided, the number of Warrant Shares which are then issuable and deliverable upon the exercise of this entire Warrant, free from preemptive rights or any other contingent purchase rights of Persons other than the Holder (taking into account the adjustments and restrictions of Section 9). The Company covenants that all Warrant Shares so issuable and deliverable shall, upon issuance and the payment of the applicable Exercise Price in accordance with the terms hereof, be duly and validly authorized, issued and fully paid and nonassessable.

 

9.     Certain Adjustments. In order to mitigate dilution of the purchase rights granted under this Warrant, the Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment from time to time as provided in this Section 9 (in each case after taking into consideration any prior adjustments pursuant to this Section 9).

 

(a)     Fundamental Transactions. If, at any time while this Warrant is outstanding, there is a Fundamental Transaction, then the Holder shall have the right thereafter to receive, upon exercise of this Warrant, the same amount and kind of securities, cash or property as it would have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been, immediately prior to such Fundamental Transaction, the holder of the number of Warrant Shares then issuable upon exercise in full of this Warrant (the “Alternate Consideration”). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration.

 

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If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction. At the Holder’s option and request, any successor to the Company or surviving entity in such Fundamental Transaction shall, either (1) issue to the Holder a new warrant substantially in the form of this Warrant and consistent with the foregoing provisions and evidencing the Holder’s right to purchase the Alternate Consideration for the aggregate Exercise Price upon exercise thereof, or (2) purchase the Warrant from the Holder for a purchase price, payable in cash within five Trading Days after such request (or, if later, on the effective date of the Fundamental Transaction), equal to the Black Scholes value of the remaining unexercised portion of this Warrant on the date of such request. The terms of any agreement pursuant to which a Fundamental Transaction is effected shall include terms requiring any such successor or surviving entity to comply with the provisions of this paragraph (b) and insuring that the Warrant (or any such replacement security) will be similarly adjusted upon any subsequent transaction analogous to a Fundamental Transaction.

 

(b)     Stock Dividends and Splits. If, at any time while this Warrant is outstanding, the Company (i) pays a stock dividend on its Common Stock or otherwise makes a distribution on any class of capital stock that is payable in shares of Common Stock, (ii) subdivides outstanding shares of Common Stock into a larger number of shares, or (iii) combines outstanding shares of Common Stock into a smaller number of shares, then in each such case the Exercise Price shall be adjusted to equal the product obtained by multiplying the then-current Exercise Price by a fraction of which the numerator shall be the number of shares of Common Stock outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to clause (i) of this paragraph shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution, and any adjustment pursuant to clause (ii) or (iii) of this paragraph shall become effective immediately after the effective date of such subdivision or combination.

 

(c)     Calculations. All calculations under this Section 9 shall be made to the nearest cent or the nearest 1/100th of a share, as applicable. The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the account of the Company, and the disposition of any such shares shall be considered an issue or sale of Common Stock.

 

(d)     Notice of Adjustments. Upon the occurrence of each adjustment pursuant to this Section 9, the Company, at its expense will promptly compute such adjustment in accordance with the terms of this Warrant and prepare a certificate setting forth such adjustment, including a statement of the adjusted Exercise Price and adjusted number or type of Warrant Shares or other securities issuable upon exercise of this Warrant (as applicable), describing the transactions giving rise to such adjustments and showing in detail the facts upon which such adjustment is based. Upon written request, the Company will promptly deliver a copy of each such certificate to the Holder and to the Company’s Transfer Agent.

 

10.     Payment of Exercise Price. The Holder may pay the Exercise Price in one of the following manners:

 

(a)     Cash Exercise. The Holder may deliver immediately available funds; or

 

(b)     Cashless Exercise. If an Exercise Notice is delivered at a time when a registration statement permitting the Holder to resell the Warrant Shares is not then effective or the prospectus forming a part thereof is not then available to the Holder for the resale of the Warrant Shares, then the Holder may

 

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notify the Company in an Exercise Notice of its election to utilize cashless exercise, in which event the Company shall issue to the Holder the number of Warrant Shares determined as follows:

 

 

where:  

 

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

 

Y = the number of Warrant Shares with respect to which this Warrant is being exercised.  

 

A = the Closing Price.

 

B = the Exercise Price.  

 

For purposes of Rule 144 promulgated under the Securities Act, it is intended, understood and acknowledged that the Warrant Shares issued in a cashless exercise transaction shall be deemed to have been acquired by the Holder, and the holding period for the Warrant Shares shall be deemed to have commenced, on the date this Warrant was originally issued.

 

11.     No Fractional Shares. No fractional shares of Warrant Shares will be issued in connection with any exercise of this Warrant. In lieu of any fractional shares which would, otherwise be issuable, the Company shall pay cash equal to the product of such fraction multiplied by the Closing Price of one Warrant Share on the date of exercise.

 

12.     Notices. Any and all notices or other communications or deliveries hereunder (including, without limitation, any Exercise Notice) shall be in writing and shall be deemed given and effective if provided pursuant to the Purchase Agreement. In case any time: (1) the Company shall declare any cash dividend on its capital stock; (2) the Company shall pay any dividend payable in stock upon its capital stock or make any distribution to the holders of its capital stock; (3) the Company shall offer for subscription pro rata to the holders of its capital stock any additional shares of stock of any class or other rights; (4) there shall be any capital reorganization, or reclassification of the capital stock of the Company, or consolidation or merger of the Company with, or sale of all or substantially all of its assets to, another corporation; or (5) there shall be a voluntary or involuntary dissolution, liquidation or winding up of the Company; then, in any one or more of said cases, the Company shall give prompt written notice to the Holder. Such notice shall also specify the date as of which the holders of capital stock of record shall participate in such dividend, distribution or subscription rights, or shall be entitled to exchange their capital stock for securities or other property deliverable upon such reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation or winding up, or conversion or redemption, as the case may be. Such written notice shall be given at least 20 days prior to the action in question and not less than 20 days prior to the record date or the date on which the Company’s transfer books are closed in respect thereto.

 

13.     Miscellaneous.

 

(a)     This Warrant shall be binding on and inure to the benefit of the parties hereto and their respective successors and assigns. Subject to the preceding sentence, nothing in this Warrant shall be construed to give to any Person other than the Company and the Holder any legal or equitable right, remedy or cause of action under this Warrant. This Warrant may be amended only in writing signed by the Company and the Holder and their successors and assigns.

 

(b)     All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be governed by and construed and enforced in accordance with the internal laws of the State of Delaware, without regard to the principles of conflicts of law thereof.

 

(c)     The headings herein are for convenience only, do not constitute a part of this Warrant and shall not be deemed to limit or affect any of the provisions hereof.

 

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

 

(e)     Prior to exercise of this Warrant, the Holder hereof shall not, by reason of being a Holder, be entitled to any rights of a stockholder with respect to the Warrant Shares

 

[Signature Page Follows]

 

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In witness whereof, the Company has caused this Warrant to be duly executed by its authorized officer as of the date first indicated above.

 

	Sun BioPharma, Inc.
	 	 
	 	 
	 	 
	
			By:

				 
	
			Name:

				 
	
			Its:

				 

 

 

[Signature Page to Warrant]ASSET
PURCHASE AGREEMENT

 

This ASSET
PURCHASE AGREEMENT (this “Agreement”), dated as of August 29, 2019, is entered into by and
between SelectGreen Blockchain Ltd, a British Columbia corporation (“Seller”) and Marathon Patent Group,
Inc., a Nevada corporation (“Buyer”).

 

RECITALS

 

WHEREAS,
Seller wishes to sell and assign to Buyer, and Buyer wishes to purchase and assume from Seller, the assets used primarily in the
Business, subject to the terms and conditions set forth herein (the “Sale”).

 

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

 

ARTICLE
I

DEFINITIONS

 

The
following terms have the meanings specified or referred to in this Article I:

 

“Action”
means any action, appeal, petition, plea, charge, complaint, claim, suit, demand, litigation, grievance, arbitration, mediation,
hearing, inquiry, investigation or similar event, occurrence, or proceeding, including, without limitation, proceedings by or
before any Governmental Authority, arbitrator or mediator.

 

“Affiliate”
means, with respect to any Person, any other Person that directly or indirectly, through one or more intermediaries, controls,
is controlled by, or is under common control with, such Person.

 

“Business”
means the business encompassing the Purchased Assets.

 

“Business
Day” means any day except Saturday, Sunday or any other day on which commercial banks located in New York, New York
are authorized or required by Law to be closed for business.

 

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

 

“Contracts”
means all legally binding contracts (oral or written), leases, mortgages, licenses, sublicenses, instruments, notes, commitments,
undertakings, indentures, letters of intent, memorandum of understanding, memorandum of agreement and other agreements including
purchase orders.

 

“Disclosure
Schedules” means the Disclosure Schedules delivered by Seller concurrently with the execution and delivery of this
Agreement.

 

“Encumbrance”
means any lien, pledge, mortgage, deed of trust, security interest, charge, claim, easement, encroachment, encumbrance or other
restriction.

 

“Equity
Interest” means, with respect to any Person, any share, share capital, capital stock, partnership, limited liability
company, member or similar interest in such person, and any option, warrant, right or security (including debt securities) convertible,
exchangeable or exercisable thereto or therefor.

 

“Exchange
Act” means the Securities Exchange Act of 1934, and the rules and regulations thereunder.

 

“Governmental
Authority” means any United States or non-United States national, federal, state, local, provincial or international
government or political subdivision thereof.

 

“Governmental
Order” means any order, writ, judgment, injunction, decree, stipulation, determination or award entered by or with
any Governmental Authority.

 

“Indebtedness”
means, as to any Person, without duplication, all obligations or liabilities of such Person for borrowed money or in respect of
loans or advances (including, without limitation, reimbursement and all other obligations with respect to surety bonds, guarantees,
letters of credit, banker’s acceptances, corporate credit card or business credit lines whether or not matured, indemnities,
performance letters, comfort letters and other arrangements similar to the foregoing.

 

    	 	 	 

    	 	 	 

    

 

“Law”
means any domestic or foreign statute, law, ordinance, regulation, rule, code, order, injunction, constitution, treaty, common
law, judgment, decree, other requirement or rule of law of any Governmental Authority.

 

“Liability”
means any Indebtedness, obligation, or liability, including any interest, penalties, fees, costs and expenses, whether known or
unknown, matured or unmatured, accrued or unaccrued, vested or unvested, asserted or unasserted, actual or contingent.

 

“Losses”
means all losses, damages, liabilities, deficiencies, claims, interest, awards, judgments, penalties, costs or expenses, including
reasonable attorneys’ fees, costs and other out-of-pocket expenses incurred in investigating, preparing or defending the
foregoing.

 

“Material
Adverse Effect” means any event, occurrence, fact, condition, change, circumstance, effect, development or state
of facts that has had, or would reasonably be expected to have, a material adverse effect on (a) the business, results of
operations, condition (financial or otherwise), assets or liabilities of the Business, taken as a whole, or (b) the ability
of Seller to perform its obligations under this Agreement, the Escrow Agreement or the Transaction Documents or consummate the
transaction contemplated hereby or thereby.

 

“Permits”
means all federal, state, local and foreign permits, licenses, franchises, approvals, waivers, certificates, certifications, authorizations
and consents required to be obtained from Governmental Authorities.

 

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

 

“Representative”
means, with respect to any Person, any and all directors, partners, members, managers, officers, employees, consultants, financial
advisors, counsel, accountants and other agents of such Person.

 

“Taxes”
means (i) all federal, state, local or foreign taxes, including all income, gross receipts, capital, sales, use, ad valorem,
value added, transfer, franchise, profits, inventory, capital stock, license, withholding, payroll, employment, social security,
unemployment, excise, severance, stamp, occupation, property and estimated taxes, customs duties, fees, assessments and charges
in the nature of a tax, (ii) all interest, penalties, fines, additions to tax or additional amounts imposed by any Governmental
Authority in connection with any item described in clause (i), and (iii) any liability in respect of any items described
in clauses (i) or (ii) payable by reason of Contract, assumption, transferee liability, operation of Law, or Treasury
Regulation Section 1.1502-6(a) (or any predecessor or successor thereof or any analogous or similar provision under
Law).

 

“Transaction
Documents” means all agreements and instruments executed and delivered with this Agreement.

 

“Transaction
Expenses” means the aggregate amount required to pay and satisfy in full all costs, fees, expenses and other payment
obligations (including, but not limited to, legal, accounting, consulting, advisory and brokerage fees and expenses) incurred
by Seller or the Business prior to the Closing in connection with the negotiation, preparation, execution, consummation and performance
of this Agreement and the Transaction Documents and consummation of the transactions contemplated hereby and thereby.

 

“Willful
Breach” means a breach that is a consequence of an act or omission knowingly undertaken or knowingly omitted by
the breaching party with the knowledge that such act or omission would cause a breach of this Agreement.

 

ARTICLE
II

PURCHASE AND SALE

 

Section
2.01 Purchase and Sale of the Purchased Assets. Subject to the terms and conditions set forth herein, at the Closing, Seller
shall, and shall cause its Affiliates to, sell, assign, transfer, convey and deliver to Buyer, and Buyer shall purchase from Seller
or its Affiliates, as applicable, all right, title and interest in, to and under the business, properties, assets, goodwill and
rights of Seller and its Affiliates of whatever kind and nature, real or personal, tangible or intangible, that are owned, leased,
used or licensed by Seller and primarily used in the operation of the Business as of the Closing Date, in each case, to the extent
that such business, assets, properties, goodwill and rights exist as of the Closing Date and primarily relate to the Business,
consisting of 6,000 S-9 units, as set forth on Schedule 2.01 (collectively, the “Purchased Assets”),
free and clear of all Encumbrances. To the extent any assets used in the Business that are not Excluded Assets are held by Affiliates
of Seller, then Seller shall cause its Affiliates to transfer such assets to Buyer, which shall be included as “Purchased
Assets” hereunder.

 

Section
2.02 Purchase Price. The aggregate purchase price for the Purchased Assets (the “Purchase Price”)
shall be $4,086,250 or $1.75 per share which is 2,335,000 shares of the Buyer’s common stock, all shares restricted as to
resale for a period of six (6) months from issuance and bearing a restrictive legend for such restriction.

 

    	 	 	 

    	 	 	 

    

 

Section
2.03 Payments; Equity Issuance. Buyer will pay at the Closing the Purchase Price to the parties listed on Schedule 2.06, each
one of which shall receive such shares pursuant to an agreement with customary representations and limitations to resale as restricted
stock saleable only under Rule 144 promulgated under the Securities Act of 1933, as amended.

 

Section
2.04 Withholding Taxes. Seller represents and warrants that there are no Taxes due by it in connection with the sale of the
Purchased Assets that Buyer would be required to deduct and withhold under any provision of Tax Law.

 

ARTICLE
III

CLOSING

 

Section
3.01 Closing. Subject to the terms and conditions of this Agreement, the consummation of the transactions contemplated by
this Agreement (the “Closing”) shall take place at on the next business day following the date on which
the Company receives notification from Nasdaq that it has no further comments on the Company’s Listing of Additional Shares
application to be submitted to Nasdaq on August 27, 2019; provided, that all the conditions to Closing set forth in Article
VII are either satisfied or waived; unless waived or extended in writing by both parties. The date on which the Closing is to
occur is herein referred to as the “Closing Date”.

 

Section
3.02 Closing Deliverables.

 

(a)
At the Closing, Seller shall deliver to Buyer the following: a full warranty bill of sale (the “Bill of Sale”)
duly executed by Seller, transferring the tangible personal property included in the Purchased Assets to Buyer; and a certificate
of the Secretary or an Assistant Secretary (or equivalent officer) of Seller certifying (i) the names and signatures of the
officers of Seller who are authorized to sign this Agreement and the Transaction Documents and the other documents to be delivered
hereunder and thereunder, (ii) that attached thereto are true and complete copies of all resolutions adopted by the board
of directors of Seller authorizing the execution, delivery and performance of this Agreement and the other Transaction Documents
and the consummation of the transactions contemplated hereby and thereby, and (iii) that all such resolutions are in full
force and effect and are all the resolutions adopted in connection with the transactions contemplated hereby and thereby; and

 

(b)
At the Closing, Buyer shall deliver to Seller the following: 75% of the Purchase Price (with 25% to be held in escrow with
Buyer’s counsel and paid out to Seller as Buyer confirms that the Purchased Assets are in good working order); and a certificate
of the Secretary or an Assistant Secretary (or equivalent officer) of Buyer certifying (i) the names and signatures of the
officers of Buyer authorized to sign this Agreement, the Transaction Documents and the other documents to be delivered hereunder
and thereunder, (ii) that attached thereto are true and complete copies of all resolutions adopted by the board of directors
of Buyer authorizing the execution, delivery and performance of this Agreement and the other Transaction Documents and the consummation
of the transactions contemplated hereby and thereby, and (iii) that all such resolutions are in full force and effect and
are all the resolutions adopted in connection with the transactions contemplated hereby and thereby. Buyer shall deliver fully
endorsed physical share certificates to Seller and the Escrow Agent within 10 business days of Closing.

 

(c) The Buyer will have thirty (30) calendar days from the installation of the Purchased Assets at the Buyer’s designated
hosting facility to confirm that the Purchased Assets are in good working order. Buyer shall notify Seller of each S-9 Unit claimed
to be defective within such time period, together with the particular defect for each such Unit. Seller shall have ten (10) Business
Days from receipt of such notice to respond to such notice and propose a remedy for the specified defect. The Parties agree to
work in good faith to resolve any claim that any Units are defective. Upon the Sixty-first (61) day after Buyer’s receipt
of delivery of the Purchased Assets, Buyer shall release such fraction of the 25% of the Purchase Price held in escrow, determined
as follows: the numerator of the fraction shall be the number of S-9 Units that are not defective, and the denominator shall be
6000. If the Parties fail to agree on a remedy for any S-9 Unit claimed to be defective within ninety (90) days after delivery
of the Purchased Assets, Seller shall have the option to demand return of such Unit (s) at Seller’s expense. On the ninety-first
day after delivery of the Purchased Assets, Buyer shall release remaining the portion of the Purchase Price attributable to any
remaining S-9 Units for which a defect was claimed but which units have been accepted or used by Buyer.

 

ARTICLE
IV

REPRESENTATIONS AND WARRANTIES OF SELLER

 

Seller
represents and warrants to Buyer that the statements contained in this Article IV are true and correct as of the date hereof
and as of the Closing Date.

 

Section
4.01 Organization and Qualification of Seller. Seller is duly organized, validly existing and in good standing under the Laws
of its jurisdiction of incorporation and has all necessary corporate or entity power and authority to own, operate or lease the
properties and assets now owned, operated or leased by it and to carry on the Business as currently conducted and contemplated
to be conducted through Closing. Seller is duly licensed or qualified to do business and is in good standing in each jurisdiction
in which the ownership of the Purchased Assets or the operation of the Business as currently conducted makes such licensing or
qualification necessary.

 

    	 	 	 

    	 	 	 

    

 

Section
4.02 Authority of Seller. Seller has all necessary corporate power and authority to enter into this Agreement and the other
Transaction Documents to which Seller is a party, to carry out its obligations hereunder and thereunder and to consummate the
transactions contemplated hereby and thereby. The execution and delivery by Seller of this Agreement and any other Transaction
Document to which Seller is a party, the performance by Seller of its obligations hereunder and thereunder and the consummation
by Seller of the transactions contemplated hereby and thereby have been duly authorized by all requisite corporate action on the
part of Seller. This Agreement has been duly executed and delivered by Seller, and (assuming due authorization, execution and
delivery by Buyer) this Agreement constitutes a legal, valid and binding obligation of Seller, enforceable against Seller in accordance
with its terms. When each other Transaction Document to which Seller is or will be a party has been duly executed and delivered
by Seller (assuming due authorization, execution and delivery by Buyer and each other party thereto), such Transaction Document
will constitute a legal and binding obligation of Seller enforceable against it in accordance with its terms.

 

Section
4.03 No Conflicts; Consents. The execution, delivery and performance by Seller of this Agreement and the other Transaction
Documents to which Seller is a party, and the consummation of the transactions contemplated hereby and thereby, do not and will
not: (a) result in a violation or breach of any provision of the certificate of incorporation or by-laws of Seller; (b) result
in a violation or breach of any provision of any Law or Governmental Order applicable to Seller, the Business, the Purchased Assets
or the Assumed Liabilities; (c) require the consent, notice or other action by any Person under, conflict with, result in
a violation or breach of, constitute a default under or result in the acceleration of any Material Contract; (d) require the consent,
notice, vote, approval or other action by the stockholders of Seller; or (e) result in the creation or imposition of any
Encumbrance on any Purchased Asset. No consent, approval, Permit, Governmental Order, declaration or filing with, or notice to,
any Governmental Authority is required by or with respect to Seller in connection with the execution and delivery of this
Agreement and the other Transaction Documents and the consummation of the transactions contemplated hereby and thereby.

 

Section
4.04; Undisclosed Liabilities. Seller has no Liabilities against, relating to or affecting the Business, Seller is solvent
for all purposes under federal bankruptcy and applicable state fraudulent transfer and fraudulent conveyance Laws. The sale of
the Purchased Assets by Seller hereunder will not render Seller insolvent and does not constitute a fraudulent transfer or conveyance
under such Law.

 

Section
4.05 Material Contracts. Section 4.05(a) of the Disclosure Schedules lists each of the following Contracts (x) by
which any of the Purchased Assets are bound or affected, (y) to which Seller is a party or by which it is bound primarily
in connection with the Business or the Purchased Assets or (z) which relate or pertain to the Business but is not part of the
Purchased Assets, collectively, the “Material Contracts”). Seller has made available to Buyer true and
complete copies of all Material Contracts and all amendments thereto. Except as would not, individually or in the aggregate, be
expected to be material to the Business taken as a whole, each Material Contract (i) is valid and binding on Seller and,
to the Knowledge of Seller, the counterparties thereto and is in full force and effect, enforceable against Seller, and, to the
Knowledge of Seller, against all third parties, in each case in accordance with its terms, except as enforcement may be limited
by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and
by general principles of equity (regardless of whether considered in a proceeding in equity or at law); and (ii) shall continue
in full force and effect upon consummation of the transactions contemplated by this Agreement, and enforceable against Buyer,
and, to the Knowledge of Seller, against all third parties, in accordance with its terms.

 

Section
4.06 Title to Tangible Personal Property. Seller has good, valid title and marketable title to, or a valid leasehold interest
in all Tangible Personal Property included in the Purchased Assets, free and clear of Encumbrances except as set forth in Section 4.06
of the Disclosure Schedules. Except as would not, individually or in the aggregate, be expected to be material to the Business
taken as a whole, all Tangible Personal Property included in the Purchased Assets are structurally sound, are in good operating
condition and repair, and are suitable for their current and intended use, ordinary wear and tear excepted. Except as would not,
individually or in the aggregate, be expected to be material to the Business taken as a whole, none of such Tangible Personal
Property is in need of maintenance or repairs except for ordinary, routine maintenance and repairs that are not material in nature.

 

Section
4.07 Intellectual Property. [Intentionally omitted].

 

Section
4.08 Legal Proceedings; Governmental Orders. There are no Actions or other legal proceedings pending or, to the Knowledge
of Seller, threatened in writing against or by Seller relating to or affecting the Business, the Purchased Assets or the Assumed
Liabilities, or that would affect the legality, validity or enforceability of this Agreement or any Transaction Documents or the
consummation of the transactions contemplated hereby or thereby. No event has occurred or circumstances exist that may give rise
to, or serve as a basis for, any such Action or other legal proceeding. There are no outstanding Governmental Orders, or inquiry
pending before a Governmental Authority or, to the Knowledge of Seller, threatened in writing against Seller and no unsatisfied
judgments, penalties or awards against, relating to or affecting the Business or the Purchased Assets or the Assumed Liabilities,
or that would affect the legality, validity or enforceability of this Agreement or any Transaction Documents or the consummation
of the transactions contemplated hereby or thereby.

 

    	 	 	 

    	 	 	 

    

 

Section
4.09 Compliance With Laws; Permits. Seller is in compliance with all Laws applicable to the conduct of the Business as currently
conducted and the ownership and use of the Purchased Assets, and Seller has been in compliance with all Laws applicable to the
Business and the ownership and use of the Purchase Assets during the two (2) years prior to the date hereof except as would not,
individually or in the aggregate, be expected to be material to the Business taken as a whole. Seller has not received any written
notice that any violation of the foregoing is being alleged. Except for general authorizations to conduct business as set forth
in Section 4.09 of the Disclosure Schedules, no Permits are required for Seller to conduct the Business as currently conducted
or for the ownership and use of the Purchased Assets.

 

Section
4.11 No Unlawful Payments; FCPA. Neither Seller nor any director or officer of Seller, nor, to the Knowledge of Seller, any
employee, agent, controlled affiliate or other Person acting on behalf of Seller has, in the operation of the Business, (a) used
any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity,
(b) made any direct or indirect unlawful payment to any government official or employee, (c) violated or is in violation
of any provision of the Foreign Corrupt Practices Act of 1977, as amended, (d) violated or is in violation of any provision
of the Bribery Act 2010 of the United Kingdom or (e) made, offered, or taken an act in furtherance of any bribe, rebate,
payoff, influence payment, kickback or other unlawful payment.

 

Section
4.12 Compliance with Money Laundering Laws. The operations of the Business by Seller has been conducted at all times in compliance
with applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970,
as amended, the applicable money laundering statutes of all jurisdictions where Seller operate the Business, the applicable rules and
regulations thereunder and any applicable, related or similar rules, regulations or guidelines, issued, administered or enforced
by any Governmental Authority (collectively, the “Money Laundering Laws”) and no Action or proceeding
by or before any court or Governmental Authority or body or any arbitrator involving Seller with respect to any applicable Money
Laundering Laws is pending or, to the Knowledge of Seller, threatened.

 

Section
4.14 Disclosure. No representation or warranty made by Seller contained in this Agreement, and no statement contained in the
Disclosure Schedules or in any certificate furnished to Buyer pursuant to any provision of this Agreement, contains any untrue
statement of a material fact or omits to state a material fact necessary in order to make the statements herein or therein, in
the light of the circumstances under which they were made, not misleading in any material respect.

 

ARTICLE
V

REPRESENTATIONS AND WARRANTIES OF BUYER

 

Buyer
represents and warrants to Seller that the statements contained in this Article V are true and correct as of the date hereof
and as of the Closing Date. The Buyer is duly organized, validly existing and in good standing under the Laws of the State of
Nevada. Buyer has all necessary organizational power and authority to enter into this Agreement and the other Transaction Documents
to which Buyer is a party, to carry out its obligations hereunder and thereunder and to consummate the transactions contemplated
hereby and thereby. The execution and delivery by Buyer of this Agreement and any other Transaction Document to which Buyer
is a party, the performance by Buyer of its obligations hereunder and thereunder and the consummation by Buyer of the transactions
contemplated hereby and thereby have been duly authorized by all requisite organizational power on the part of Buyer. This Agreement
has been duly executed and delivered by Buyer, and (assuming due authorization, execution and delivery by Seller) this Agreement
constitutes a legal, valid and binding obligation of Buyer enforceable against Buyer in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar Laws affecting creditors’
rights generally and by general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in
equity). When each other Transaction Document to which Buyer is or will be a party has been duly executed and delivered by Buyer
(assuming due authorization, execution and delivery by Seller and each other party thereto), such Transaction Document will constitute
a legal and binding obligation of Buyer enforceable against it in accordance with its terms, except as such enforceability may
be limited by bankruptcy, insolvency, reorganization, moratorium or similar Laws affecting creditors’ rights generally and
by general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity). The execution,
delivery and performance by Buyer of this Agreement and the other Transaction Documents to which Buyer is a party, and the consummation
of the transactions contemplated hereby and thereby, do not and will not: (a) result in a violation or breach of any provision
of any organizational document of Buyer; (b) result in a violation or breach of any provision of any Law or Governmental
Order applicable to Buyer; or (c) require the consent, notice or other action by any Person under, conflict with, result
in a violation or breach of, constitute a default under or result in the acceleration of any agreement to which Buyer is a party.
No consent, approval, Permit, Governmental Order, declaration or filing with, or notice to, any Governmental Authority is required
by or with respect to Buyer in connection with the execution and delivery of this Agreement and the other Transaction Documents
and the consummation of the transactions contemplated hereby and thereby, except for such consents, approvals, Permits, Governmental
Orders, declarations, filings or notices which would not have a Material Adverse Effect on Buyer’s ability to consummate
the transactions contemplated hereby and thereby.

 

ARTICLE
VI

COVENANTS

 

Section
6.01 Access to Information. From the date hereof until the Closing or the termination of this Agreement, Seller shall (a) afford
Buyer and its Representatives reasonable access to and the right to inspect all of the Leased Real Property, properties, assets,
premises, Books and Records, Assigned Contracts and other documents and data related to the Business; (b) furnish Buyer and
its Representatives with such financial, operating and other data and information related to the Business as Buyer or any of its
Representatives may reasonably request; and (c) instruct its Representatives to cooperate with Buyer with respect to the
foregoing.

 

    	 	 	 

    	 	 	 

    

 

Section
6.02 Confidentiality. Each party acknowledges and agrees that the Confidentiality Agreement remains in full force and effect
and information provided pursuant to this Agreement shall remain subject to the Confidentiality Agreement.

 

ARTICLE
VII

CONDITIONS TO CLOSING

 

Section
7.01 Conditions to Obligations of Buyer. The obligation of Buyer to consummate the transactions contemplated by this Agreement
shall be subject to the fulfillment or Buyer’s waiver, at or prior to the Closing, of each of the following conditions:
The representations and warranties of Seller contained in Article IV (other than the Seller Fundamental Representations)
shall be true and correct in all material respects as of the Closing Date and the Seller Fundamental Representations shall be
true and correct in all respects, in each case, with the same effect as though made at and as of such date (except those representations
and warranties that address matters only as of a specified date, which shall be true and correct in all material respects as of
that specified date); provided , however , that representations and warranties qualified by
Material Adverse Effect or other materiality qualifier must instead be true and correct in all respects; Seller shall have duly
performed and complied in all material respects with all agreements and covenants required by this Agreement to be performed or
complied with by them prior to or at the Closing; Seller shall have delivered to Buyer duly executed counterparts to the Transaction
Documents (other than this Agreement) and such other documents and deliverables set forth in Section 3.02(a); Buyer shall
have received a certificate, dated the Closing Date and signed on behalf of Seller by a duly authorized officer (in such Person’s
capacity as such and not individually), that each of the conditions set forth in Section 7.02(a), Section 7.02(b) and Section
7.02 (i) have been satisfied (the “Closing Certificate”);

 

Section
7.02 Conditions to Obligations of Seller. The obligations of Seller to consummate the transactions contemplated by this Agreement
shall be subject to the fulfillment or Seller’s waiver, at or prior to the Closing, of each of the following conditions:
The representations and warranties of Buyer contained in Article V shall be true and correct in all material respects as
of the Closing Date with the same effect as though made at and as of such date (except those representations and warranties that
address matters only as of a specified date, which shall be true and correct in all material respects as of that specified date); provided, however,
that representations and warranties qualified by Material Adverse Effect or other materiality qualifier must instead be true and
correct in all respects; Buyer shall have duly performed and complied in all material respects with all agreements and covenants
required by this Agreement to be performed or complied with by it prior to or at the Closing; Buyer shall have delivered to the
Seller the Closing Payment Amount, duly executed counterparts to the Transaction Documents (other than this Agreement and the
Employment Agreement) and such other documents and deliveries set forth in Section 3.02(b); Seller shall have received a
certificate, dated the Closing Date and signed on behalf of Buyer by a duly authorized officer of Buyer (in such Person’s
capacity as such and not individually), that each of the conditions set forth in Section 7.03(a) and Section 7.03(b) have been
satisfied (the “Buyer Closing Certificate”); and Seller shall have received a certificate of the Secretary
or an Assistant Secretary (or equivalent officer) of Buyer as to matters set forth in Section 3.02(b)(v).

 

ARTICLE
VIII

INDEMNIFICATION

 

Section
8.01 Survival. Subject to the limitations and other provisions of this Agreement, the representations and warranties contained
herein shall survive the Closing and shall remain in full force and effect until the date that is three years from the Closing
Date (the “Expiration Date”).

 

Section
8.02 Indemnification By Seller. After the Closing, subject to the other terms and conditions of this Article VIII, Seller
shall indemnify Buyer and its Affiliates and their respective Representatives (collectively, the “Buyer Indemnified
Parties”) against, and shall hold Buyer Indemnified Parties harmless from and against, any and all Losses incurred
or sustained by, or imposed upon, the Buyer Indemnified Parties based upon, arising out of, with respect to or by reason of: any
inaccuracy in or breach of any of the representations or warranties of Seller contained in this Agreement or in any Transaction
Document (for purposes of calculating any Losses arising from such inaccuracy or breach and for purposes of determining whether
there has been an inaccuracy in or breach of any such representation or warranty, such representation and warranty shall be read
as if it were not qualified by any concept of “material,” “materiality,” “Material Adverse Effect,”
or similar qualifiers); any breach or non-fulfillment of any covenant, agreement or obligation to be performed by Seller pursuant
to this Agreement or in any Transaction Document; any Third Party Claims related to the Business, operations, properties, assets
or obligations of Seller or any of its Affiliates conducted, existing or arising before the Closing; any Excluded Asset or Excluded
Liabilities; or any claim made by any stockholder of Seller against any Buyer Indemnified Party directly or indirectly related
to the Transaction Documents and consummation of the transactions contemplated hereby and thereby.

 

Section
8.03 Indemnification By Buyer. After the Closing, subject to the other terms and conditions of this Article VIII, Buyer
shall indemnify Seller and its Affiliates (collectively, the “Seller Indemnified Parties”) against,
and shall hold the Seller Indemnified Parties harmless from and against, any and all Losses incurred or sustained by, or
imposed upon, the Seller Indemnified Parties based upon, arising out of, with respect to or by reason of: any inaccuracy in or
breach of any of the representations or warranties of Buyer contained in this Agreement or in any Transaction Document (for purposes
of calculating any Losses arising from such inaccuracy or breach and for purposes of determining whether there has been an inaccuracy
in or breach of any such representation or warranty, such representation and warranty shall be read as if it were not qualified
by any concept of “material,” “materiality,” “Material Adverse Effect,” or similar qualifiers);
any breach or non-fulfillment of any covenant, agreement or obligation to be performed by Buyer pursuant to this Agreement; or
any Purchased Assets or Assumed Liabilities.

 

    	 	 	 

    	 	 	 

    

 

Section
8.04 Indemnification Procedures. The party making a claim under this Article VIII is referred to as the “Indemnified
Party”, and the party against whom such claims are asserted under this Article VIII is referred to as the “Indemnifying
Party”. If any Indemnified Party receives written notice of the assertion or commencement of any Action or other
legal proceeding made or brought by any Person who is not a party to this Agreement or an Affiliate of a party to this Agreement
or a Representative of the foregoing (a “Third Party Claim”) against such Indemnified Party, the Indemnified
Party shall give the Indemnifying Party prompt written notice thereof (a “Claim Notice”). The failure
to give such prompt written notice shall not, however, relieve the Indemnifying Party of its indemnification obligations. Such
Claim Notice shall describe the Third Party Claim in reasonable detail, shall include a copy of all papers served with respect
to such Third Party Claim, if any, and any other documents reasonably necessary (as determined by the Indemnified Party) and shall
indicate the estimated amount, if reasonably practicable, of the Loss that has been or may be sustained by the Indemnified Party.
The Indemnifying Party shall have the right to participate in or, by giving written notice within ten (10) Business Days of receipt
of a Third Party Claim, to assume the defense of any Third Party Claim at the Indemnifying Party’s expense and by the Indemnifying
Party’s own counsel.

 

ARTICLE
IX

TERMINATION

 

This
Agreement may be terminated at any time prior to the Closing: by the mutual written consent of Seller and Buyer; by Buyer by written
notice to Seller if there has been a material breach, inaccuracy in or failure to perform any representation, warranty, covenant
or agreement made by Seller pursuant to this Agreement that would give rise to the failure of any of the conditions specified
in Section 7.01 or Section 7.02 and such breach, inaccuracy or failure cannot be cured by Seller by August __, 2019
(the “Drop Dead Date”); or by Buyer or Seller if the Closing has not occurred by the Drop Dead Date; provided,
that the party electing to terminate this Agreement in such instance has not materially breached this Agreement and such breach
is the primary reason for such failure to consummate the Closing. In the event of the termination of this Agreement in accordance
with this Article IX, this Agreement shall immediately become null and void and there shall be no liability or obligation on the
part of any party hereto other than liability for any Willful Breach of this Agreement prior to such termination; provided that
the provisions of Section 6.04 (Confidentiality), this Section 9.02 (Effects of Termination) and Article X (Miscellaneous) shall
remain in full force and effect and survive any termination of this Agreement.

 

ARTICLE
X

MISCELLANEOUS

 

Section
10.01 Expenses. Except as otherwise expressly provided herein (including Section 6.08 hereof), all costs and expenses,
including, without limitation, fees and disbursements of counsel, financial advisors and accountants, incurred in connection with
this Agreement and the transactions contemplated hereby shall be paid by the party incurring such costs and expenses, whether
or not the Closing shall have occurred, and the cost of shipping the Purchased Assets to Buyer’s location in Nevada shall
be solely borne by the Seller.

 

Section
10.02 Notices. All notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing
(including, without limitation, e-mail transmission) and shall be deemed to have been given (a) if delivered by hand, when
such delivery is made at the address specified on the signature pages hereto; (b) when received by the addressee if sent
by a nationally recognized overnight courier (receipt requested); (c) if delivered by e-mail or facsimile, when such e-mail
or facsimile is transmitted to the number or e-mail address specified on the signature page hereto or (d) on the day mailed,
by certified or registered mail, return receipt requested, postage prepaid. Such communications must be sent to the respective
parties at the addresses or coordinates as provided on the signature pages hereto (or at such other address for a party as shall
be specified in a notice given in accordance with this Section 10.02).

 

Section
10.03 Headings. The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

 

Section
10.04 Severability. If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such
invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render
unenforceable such term or provision in any other jurisdiction.

 

Section
10.05 Entire Agreement. This Agreement (including the Exhibits and the Disclosure Schedules) and the other Transaction Documents
constitute the entire agreement of the parties with respect to the subject matter contained herein and therein, and supersede
all prior and contemporaneous representations, warranties, understandings and agreements, both written and oral, with respect
to such subject matter.

 

    	 	 	 

    	 	 	 

    

 

Section
10.06 Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and
their respective successors and permitted assigns. Except as set forth in Section 2.12, neither party may assign its rights
or obligations hereunder without the prior written consent of the other party; provided, however, that
Buyer can assign its rights hereunder to any lender providing the Financing. No assignment (including pursuant to Section 2.12)
shall relieve the assigning party of any of its obligations hereunder.

 

Section
10.07 No Third Party Beneficiaries. This Agreement is for the sole benefit of the parties hereto and their respective successors
and permitted assigns.

 

Section
10.08 Amendment and Modification; Waiver. This Agreement may only be amended, modified or supplemented by an agreement in
writing signed by Seller and Buyer. No waiver by any party of any of the provisions hereof shall be effective unless explicitly
set forth in writing and signed by the party so waiving. No waiver by any party shall operate or be construed as a waiver in respect
of any failure, breach or default not expressly identified by such written waiver, whether of a similar or different character,
and whether occurring before or after that waiver. No failure to exercise, or delay in exercising, any right, remedy, power or
privilege arising from this Agreement shall operate or be construed as a waiver thereof.

 

Section
10.09 Governing Law; Submission to Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed by and construed in
accordance with the internal laws of the State of Nevada without giving effect to any choice or conflict of law provision or rule (whether
of the State of Nevada or any other jurisdiction). ANY LEGAL SUIT, ACTION OR PROCEEDING ARISING OUT OF OR BASED UPON THIS AGREEMENT,
THE OTHER TRANSACTION DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY MAY BE INSTITUTED IN THE FEDERAL COURTS
OF THE UNITED STATES OF AMERICA OR ANY STATE COURT WITHIN THE STATE OF NEVADA, AND EACH PARTY IRREVOCABLY SUBMITS TO THE EXCLUSIVE
JURISDICTION OF SUCH COURTS IN ANY SUCH SUIT, ACTION OR PROCEEDING. SERVICE OF PROCESS, SUMMONS, NOTICE OR OTHER DOCUMENT BY MAIL
TO SUCH PARTY’S ADDRESS SET FORTH HEREIN SHALL BE EFFECTIVE SERVICE OF PROCESS FOR ANY SUIT, ACTION OR OTHER PROCEEDING
BROUGHT IN ANY SUCH COURT. THE PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY OBJECTION TO THE LAYING OF VENUE OF ANY SUIT,
ACTION OR ANY PROCEEDING IN SUCH COURTS AND IRREVOCABLY WAIVE AND AGREE NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH
SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

Section
10.10 Counterparts. This Agreement may be executed and delivered (including, without limitation, by facsimile transmission
or e-mail) in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and
the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission shall
be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written above by their respective
officers thereunto duly authorized.

 

	 	 	 
	 	 	__________________________________________.
	 	By	__________________________________________
	 	Name:	 
	 	Title:	 
	 	 	 
	 	Address:
	 	Email:
	 	Phone:
	 	Fax:
	 	 
	 	With
    a Copy to:

 

	 	MARATHON
    PATENT GROUP, INC.
	 	 	               
	 	By	__________________________________________
	 	Name:	 
	 	Title:	 
	 	Address:
	 	 
	 	Email:
	 	Phone:
	 	 
	 	With
    a Copy to:

 

 

    	 	 	 

    	 	 	 

    

 

SCHEDULE
2.01

LIST
OF S-9 MINERS

 

Seller
will have 20 business days from signing this Agreement to provide a list of 5,000 S-9 miner serial numbers for the 5,000 S-9’s
that have been delivered to the Company’s storage facility. The remaining 1,000 S-9’s will be delivered directly to
the Company’s hosting facility once the hosting agreement is in place. The serial numbers for these S-9’s will be
provided within 20 days of deliver to the hosting facility.

 

SCHEDULE
4.05

MATERIAL
CONTRACTS

 

None.

 

    	 	 	 

    	 	 	 

    

 

SCHEDULE
4.06

ENCUMBRANCES

 

None.

 

    	 	 	 

    	 	 	 

    

 

 

SCHEDULE
4.09

PERMITS

 

None.

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