Document:

DATED 23rd
November 2012

 

CHINA
EASTERN AIRLINES CORPORATION LIMITED

as
the seller

 

and

 

AIRBUS
S.A.S.

as
the buyer

 

and

 

CHINA
EASTERN AVIATION IMPORT AND EXPORT CORPORATION

as
the Consenting Party

 

and

 

CHINA
EASTERN AIRLINES, WUHAN COMPANY

CHINA
EASTERN YUNNAN AIRLINES

CHINA
EASTERN AIRLINES JIANGSU LTD.

SHANGHAI
AIRLINES COMPANY LIMITED

as
Sellers

 

 

AIRCRAFT
SALE AND PURCHASE AGREEMENT

relating
to

EIGHT
(8) BOMBARDIER CRJ-200 AIRCRAFT

AND
TEN (10) EMBRAER ERJ-145 AIRCRAFT 

 

 

CT1242070

 

    	 

    	 

    

 

CONTENTS

 

	Clause	 	Page
	 	 	 
	1.	Definitions And Interpretation	2
	2.	Representations And Warranties	5
	3.	Agreement To Sell And Purchase	6
	4.	Conditions Precedent	6
	5.	Payments	7
	6.	Engines	9
	7.	Delivery Procedure And Acceptance	9
	8.	Total Loss Before Delivery	13
	9.	Condition Of Aircraft	13
	10.	Operational Indemnities	13
	11.	Tax Indemnities	14
	12.	Liability Insurance	15
	13.	Termination	15
	14.	A320 Non-Delivery	15
	15.	Co-Operation	15
	16.	Manufacturer’s Warranties	16
	17.	Benefit Of Agreement	16
	18.	Waiver	16
	19.	Remarketing	16
	20.	Notices	17
	21.	Miscellaneous	17
	22.	Confidentiality	19
	23.	Law And Jurisdiction	19

 

    	 

    	 

    

 

 

AIRCRAFT
SALE AND PURCHASE AGREEMENT (the Agreement) is made on ____________________________2012

 

BETWEEN:

 

		1.	CHINA EASTERN AIRLINES CORPORATION
LIMITED, a company incorporated and existing under the laws of the People’s Republic of China, having its registered office
at Hongqiao International Airport, No. 2550 Hongqiao Road, Shanghai 200335, the People’s Republic of China (referred to in this
Agreement as China Eastern);

 

		2.	AIRBUS S.A.S., a société
par actions simplifiée incorporated under the laws of France whose registered office is at 1 rond-point Maurice Bellonte
31700 Blagnac Cedex, France (referred to in this agreement as Airbus);

 

		3.	CHINA EASTERN AVIATION IMPORT AND EXPORT
CORPORATION, a company incorporated
and existing under the laws of the People’s Republic of China, having its principal place of business at Hongqiao International
Airport, No. 2550 Hongqiao Road, Shanghai 200335, the People’s Republic of China (referred to in this Agreement as the Consenting
Party);

 

		4.	CHINA
                                                                    EASTERN AIRLINES, WUHAN COMPANY, a company incorporated
                                                                    and existing under the laws of the People’s Republic of China,
                                                                    having its registered office at 188 Julong Avenue, Panlongcheng
                                                                    Economic & Technological Development Zone, Wuhan, the
                                                                    People’s Republic of China (referred to in this Agreement
                                                                    as CES WUHAN);

 

		5.	CHINA EASTERN YUNNAN AIRLINES,
a company incorporated and existing under the laws of the People’s Republic of China, having its registered office at Wujiaba International
Airport, Kunming, Yunnan Province, the People’s Republic of China (referred to in this Agreement as CES YUNNAN);

 

		6.	CHINA
                                                                    EASTERN AIRLINES JIANGSU LTD., a company incorporated
                                                                    and existing under the laws of the People’s Republic
                                                                    of China, having its registered office at Lukou International
                                                                    Airport, Nanjing, the People’s Republic of China (referred
                                                                    to in this Agreement as CES JIANGSU); and

 

		7.	SHANGHAI AIRLINES COMPANY LIMITED,
a company incorporated and existing under the laws of the People’s Republic of China, having its registered office at Room 511
Building 6 No. 92, Honggangsan Rd., Hongqiao Airport, Shanghai, the People’s Republic of China (referred to in this Agreement as
SHANGHAI AIRLINES).

 

WHEREAS:

 

	 	A.	China Eastern and Airbus entered into an aircraft general terms agreement on 15 June 2009 and an Airbus A320 family aircraft purchase agreement with reference CT10002329 on 30 December 2010 (together the “Original Purchase Agreement”).
	 	 	 
	 	B.	China Eastern and Airbus entered into a first amendment to the Original Purchase Agreement on 28 June 2012 (the “Amendment No. 1”).
	 	 	 
	 	C	China Eastern and Airbus on the date of this Agreement have
    entered into a second amendment to the Original Purchase Agreement (the “Amendment No. 2”) pursuant
     to which Airbus has agreed to manufacture and sell and China Eastern has agreed to buy sixty (60) additional
    Airbus A320 family aircraft on the terms and conditions set out therein.

 

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Reference CT1242070	1

    	 

    

 

		D.	In connection with and in consideration of the Amendment No. 2, China Eastern has agreed to sell
or procure the sale of the Aircraft (as defined below) to Airbus or its nominee and Airbus has agreed to purchase or, as the case
may be, to procure the purchase of the Aircraft on the terms and conditions set out herein.

 

IT
IS AGREED as follows:

 

		1.	DEFINITIONS AND INTERPRETATION

 

		1.1	Definitions

 

In
this Agreement (including the Schedules to this Agreement) capitalised words and expressions have the following meanings:

 

A320
Aircraft means each of the Airbus A320 family aircraft which are the subject of the Amendment No. 2 to the Original
Purchase Agreement, therein referred to as the “Second Batch Aircraft”.

 

A320
Purchase Agreement means, together, the Original Purchase Agreement as amended by the Amendment No.1 and the Amendment No.2
and as may further be amended from time to time.

 

Acceptance
Certificate means the acceptance certificate in respect of an Aircraft substantially in the form set out in Schedule 7.

 

Affiliate
means, with respect to any person or entity, any other person or entity directly or indirectly controlling or controlled by or
under common control with such person or entity or any of the member companies of the same group as such person or entity.

 

Airbus
Conditions Precedent means the documents, evidence and conditions specified in Schedule 5 each in form and substance satisfactory
to Airbus.

 

Airbus
Indemnitees means Airbus, any Airbus Nominee and any of their respective Affiliates, shareholders directors, officers, servants,
agents and employees.

 

Airbus
Nominee means, at Airbus’ election and with regard to each Aircraft, any person or entity that has been nominated by Airbus
(and notified to China Eastern in writing) to accept Delivery of such Aircraft in accordance with the terms and conditions set
out in this Agreement.

 

Aircraft
means each Airframe together with the Aircraft Documents, Engines, parts, equipment and accessories relating thereto.

 

Aircraft
Documents has the meaning given to it in Schedule 9.

 

Airframes
means:

 

		(a)	the eight (8) Bombardier CRJ-200 airframes
as more particularly described in Part 1 of Schedule 1; and/or

 

		(b)	the ten (10) Embraer ERJ-145 airframes as
more particularly described in Part 1 of Schedule 1,

 

(each
individually an Airframe).

 

Approved
Provider means:

 

		(a)	in the case of a Ferry Flight, the relevant
Seller, the Consenting Party or any Affiliate of China Eastern approved by Airbus in writing in advance; and

 

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Reference CT1242070	2

    	 

    

 

		(b)	in the case of an Intermediate Storage or Longer Term Storage, any person approved by Airbus in writing
in advance.

 

Aviation
Authority means the Civil Aviation Administration of China (CAAC) and includes any successor agency to the CAAC.

 

Bill
of Sale means the bill of sale in respect of an Aircraft substantially in the form set out in Schedule 6.

 

Business
Day means: (i) any day other than a Saturday or Sunday on which business of the nature contemplated by this Agreement is carried
out in Toulouse, Shanghai and the location of any Airbus Nominee; and (ii) where used in relation to payments, any days on which
banks are open for business in Toulouse, Shanghai, New York and the location of any Airbus Nominee.

 

China
Eastern Conditions Precedent means the documents, evidence and conditions specified in Schedule 4, each in form and substance
satisfactory to China Eastern.

 

China
Eastern Indemnitees means China Eastern and any of its respective Affiliates, shareholders, directors, officers, servants,
agents and employees.

 

Conditions
Precedent means, collectively, the Airbus Conditions Precedent and the China Eastern Conditions Precedent.

 

Delivery
means, with regard to each Aircraft, the delivery of, sale and transfer of title to such Aircraft in accordance with Clause
7 (and the term Delivered shall be construed accordingly).

 

Delivery
Condition means the conditions set out in Schedule 9.

 

Delivery
Date means, with regard to each Aircraft, the actual date (being a Business Day) on which Delivery of such Aircraft occurs.

 

Delivery
Location means, in respect of each Aircraft, the location of Delivery of the Aircraft as specified in column 5 of Part 1 of
Schedule 1 or such other location as Airbus and China Eastern may agree in writing.

 

Engines
means, together, all of the engines listed in Part 2 of Schedule 1 and, with regard to a specific Aircraft, the two (2) of such
engines (of make and model relevant to that Aircraft type as specified in column 4 of Part 1 of Schedule 1) installed on or to
be installed on that Airframe at Delivery.

 

Ferry
Flight has the meaning given to it in clause 7.10.1.

 

Ferry
Flight Agreement has the meaning given to it in clause 7.10.4.

 

Ferry
Flight Destination has the meaning given to it in clause 7.10.1.

 

FOD
means foreign object damage.

 

Gross
Sale Price means, in respect of each Aircraft, the amount in US Dollars relevant to such Aircraft specified in column 7 of
Part 1 of Schedule 1.

 

Intermediate
Storage has the meaning given to it in clause 7.10.2.

 

Lien
means any mortgage, charge, assignment, pledge, lien, statutory right in rem, right of possession, attachment or detention, right
of set-off, title retention arrangement, encumbrance or any other arrangement which has the effect of giving another person any
security claim or interest.

 

Longer
Term Storage has the meaning given to it in clause 7.10.4.

 

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Reference CT1242070	3

    	 

    

 

Losses
and Loss means as the context may require, costs, expenses, fees, interest, payments, demands, obligations, liabilities, claims,
suits, actions, proceedings, penalties, fines, damages, judgements, orders or other sanctions causing pecuniary or other economic
loss.

 

Manufacturer
Agreement has the meaning given to it in paragraph (e) of Schedule 5 to this Agreement.

 

Material
Damage means any incident or accident involving an Aircraft which would in have a material negative effect on the residual
value or utility of the Aircraft.

 

Non-PRC
Deduction has the meaning given to it in Clause 5.6.1.

 

Non-PRC
Taxes means any and all Taxes imposed from time to time by any political or government entity or taxation authority outside
the PRC.

 

PRC
means the People’s Republic of China.

 

PRC
Deduction has the meaning given to it in Clause 5.5.1.

 

PRC
Taxes means any and all Taxes imposed from time to time by any political or government entity or taxation authority in the
PRC.

 

Prospective
Lessee or Purchaser means, with regard to each Aircraft, any person or entity that has expressed an interest in writing to
Airbus (and that Airbus has notified to China Eastern in writing) to lease or purchase such Aircraft and who may participate in
the Aircraft inspection process, limited to a maximum of two such persons or entities for any one Aircraft.

 

Sale
Documents means this Agreement, the Bills of Sale, the Acceptance Certificates, any Ferry Flight Agreement(s), and Storage
Agreements(s), any other agreement in writing agreed by Airbus and China Eastern to be a Sale Document and any written agreement
amending or supplementing any of the foregoing.

 

Scheduled
Delivery Date has the meaning given to it in clause 7.1, such date being a Business Day (otherwise the Scheduled Delivery Date
shall be the next occurring Business Day).

 

Seller
means collectively each of CES WUHAN, CES YUNNAN, CES JIANGSU and SHANGHAI AIRLINES and in respect of each Aircraft the Seller
identified alongside such Aircraft in column 8 of Part 1 of Schedule 1.

 

Storage
Agreement has the meaning given to it in clause 7.10.5.

 

Taxes
means any and all taxes, (including, without limitation, gross receipts, franchise, capital, preferences, sales, rentals, use,
turnover, property (tangible and intangible), documentary, excise, stamp duties or value added taxes), levies, imposts, duties,
charges, surcharges, assessments or withholdings of any nature whatsoever together with any and all penalties, fines, additions
to tax and interest thereon or computed with reference thereto.

 

Termination
Event means any of the events or circumstances set out in Clause 13.1.

 

Total
Loss means, with respect to an Aircraft:

 

		(a)	***

 

		(b)	***

 

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		(c)	***

 

		(d)	***

 

Undelivered
A320 has the meaning given to it in Clause 14.1.

 

Undelivered
Aircraft means each Aircraft in respect of which sale by China Eastern or the relevant Seller and purchase by Airbus or by
an Airbus Nominee, as the case may be, under this Agreement has not yet been completed and in respect of which no Bill of Sale
has been signed and delivered.

 

US
Dollars and US$ shall mean the lawful currency of the United States.

 

		1.2	Interpretation

 

In
this Agreement (including the Schedules to this Agreement), unless the contrary intention is stated, a reference to:

 

		(i)	each of China Eastern, Airbus or any other
person includes, without prejudice to the provisions of this Agreement restricting transfer or assignment, any successor, assignee
or transferee;

 

		(ii)	words importing the plural shall include the singular and vice versa;

 

		(iii)	any document shall include that document
as amended, novated, assigned or supplemented;

 

		(iv)	a Clause or a Schedule is a reference
to a clause of or a schedule to this Agreement;

 

		(v)	any law, or to any specified
provision of any law, is a reference to such law or provision as amended, substituted or re enacted; and

 

		(vi)	airworthy and airworthiness
unless otherwise indicated means airworthiness according to all requirements of the Aviation Authority (passenger transport category
CCAR121) and the possession in respect of an Aircraft of a current Certificate of Airworthiness issued by the Aviation Authority.

 

Clause
and Schedule headings are for ease of reference only and shall not modify, define, expand or limit any of the terms or provisions
of this Agreement.

 

		2.	REPRESENTATIONS
AND WARRANTIES

 

		2.1	China
Eastern Representations and Warranties

 

China
Eastern represents and warrants to Airbus on the terms set out in Schedule 2. The representations and warranties in Schedule 2
will survive the execution of this Agreement and will be deemed to be repeated by China Eastern on the date hereof and on the Delivery
Date of each Aircraft with reference to the facts and circumstances then existing.

 

		2.2	Airbus’
Representations and Warranties

 

Airbus
represents and warrants to China Eastern on the terms set out in Schedule 3. The representations and warranties in Schedule 3 will
survive the execution of this Agreement and will be deemed to be repeated by Airbus on the date hereof and on the Delivery Date
of each Aircraft with reference to the facts and circumstances then existing.

 

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Reference CT1242070	5

    	 

    

 

		2.3	No
                                                                                                       Prejudice

 

The
rights of Airbus and China Eastern in relation to any misrepresentation or breach of warranty by Airbus or, as the case may be,
China Eastern shall not be prejudiced by any investigation by or on behalf of Airbus or, as the case may be, China Eastern into
the affairs of such other party.

 

		3.	AGREEMENT
                                                                                                      TO SELL AND PURCHASE

 

		3.1	Subject to the terms and conditions of
this Agreement, China Eastern agrees to sell or procure the sale of each Aircraft to Airbus or, if applicable, to an Airbus Nominee
and Airbus agrees to purchase or, as the case may be, to procure the purchase of each Aircraft by such Airbus Nominee in the Delivery
Condition.

 

		3.2	Other than in respect of any transfer
made in accordance with Clause 17, Airbus will remain bound by the terms of this Agreement to the extent that any Airbus Nominee
fails to perform.

 

		3.3	Other than in respect of any transfer
made in accordance with Clause 17, China Eastern will remain bound by the terms of this Agreement to the extent that any Seller
fails to perform.

 

		4.	CONDITIONS
                                                                                                      PRECEDENT

 

		4.1	China
                                                                                                       Eastern Conditions Precedent

 

		4.1.1	The obligation of China Eastern to sell
or to procure the sale of each Aircraft shall be subject to fulfilment of the China Eastern Conditions Precedent set out in Schedule
4, on or prior to the date for fulfilment of such China Eastern Conditions Precedent (except to the extent that China Eastern agrees
in writing in its absolute discretion to waive or defer any such condition).

 

		4.1.2	The China Eastern Conditions Precedent
have been inserted for the benefit of China Eastern and may be waived in writing, in whole or in part and with or without conditions,
by China Eastern without prejudicing the right of China Eastern to receive fulfilment of such conditions, in whole or in part,
at any time thereafter.

 

		4.2	Airbus
                                                                                                   Conditions Precedent

 

		4.2.1	The obligation of Airbus to purchase or,
as the case may be, to procure the purchase by the Airbus Nominee of each Aircraft shall be subject to fulfilment of the Airbus
Conditions Precedent set out in Schedule 5, on or prior to the date for fulfilment of such Airbus Conditions Precedent (except
to the extent that Airbus agrees in writing in its absolute discretion to waive or defer any such condition).

 

		4.2.2	The Airbus Conditions Precedent have been
inserted for the benefit of Airbus and may be waived in writing, in whole or in part and with or without conditions, by Airbus
without prejudicing the right of Airbus to receive fulfilment of such conditions, in whole or in part, at any time thereafter.

 

		4.3	Non-fulfilment
                                                                                                   of Conditions Precedent

 

If
any of the Conditions Precedent remain outstanding on an Aircraft’s Scheduled Delivery Date and are not waived or deferred
in writing by China Eastern or, as the case may be, Airbus, the relevant provisions of Clause 7.2 shall apply.

 

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		5.	PAYMENTS

 

		5.1	Gross Sale Price

 

The
purchase price for each Aircraft shall be an amount in US Dollars equal to the Gross Sale Price of suchAircraft.

 

		5.2	Clause 5.2

 

Intentionally
left blank.

 

		5.3	Payment
of Gross Sale Price

 

Airbus
shall on the Delivery Date of each Aircraft pay or procure the payment to China Eastern of the Gross Sale Price in respect of such
Aircraft, such payment to be made in accordance with the provisions of Clauses 5.4 to 5.9 below.

 

		5.4	Taxes

 

		5.4.1	***

 

		5.4.2	***

 

		5.4.3	***

 

		5.4.4	***

 

		5.5	No
gross-up - Airbus

 

		5.5.1	***

 

(a)
***

 

(b)
***

 

(c)
***

 

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		5.5.2	***

 

		5.5.3	***

 

		5.6	Gross-up
                                                                                - Airbus

 

		5.6.1	***

 

		5.6.2	***

 

		5.7	No
                                                                                gross-up - China Eastern

 

		5.7.1	***

 

(a)
***

 

(b)
***

 

(c)
***

 

		5.7.2	***

 

		5.7.3	***

 

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		5.8	Gross-up
- China Eastern

 

		5.8.1	***

 

		5.8.2	***

 

		5.9	Payments

 

Airbus
shall pay or, as the case may be, procure the payment of each Gross Sale Price in US Dollars in immediately available funds by
wire transfer to the following account:

 

	Beneficiary: 	***
	Account Number: 	***
	Receiving Bank:	***
	SWIFT Address:	***

 

If
any payment would otherwise be due on a non Business Day, it will be due on the next succeeding Business Day.

 

		6.	ENGINES

 

Each
Aircraft shall be Delivered with two (2) of the Engines listed in Part 2 of Schedule 1 installed
(of make and model relevant to that Aircraft type). The engine serial numbers ***

 

		7.	DELIVERY
PROCEDURE AND ACCEPTANCE

 

		7.1	Scheduled
Delivery Dates

 

Airbus
and China Eastern agree that the Aircraft shall each be Delivered during the quarters
set out in column 6 of Part 1 of Schedule 1 *** (each a Scheduled Delivery Date).

 

		7.2	Late
Delivery

 

		7.2.1	China Eastern shall immediately notify
Airbus upon becoming aware of any circumstances which could result in China Eastern not being in a position to tender or procure
the tender of any Aircraft for Delivery on its Scheduled Delivery Date.

 

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		7.2.2	***

 

		7.3	Delivery
                                                                                                                         Condition

 

Airbus’
obligation to purchase each Aircraft is conditional upon each Aircraft complying on its Delivery Date with the Delivery Condition.

 

		7.4	Inspection

 

With
regard to each Aircraft, Airbus and any Airbus Nominee shall be entitled to conduct a physical inspection and records analysis
in accordance with and in the manner set out in Schedule 9 for the purposes of confirming that such Aircraft meets the Delivery
Condition and is otherwise airworthy and in good working order and repair.

 

		7.5	Delivery

 

China
Eastern shall tender or procure the tender of each Aircraft for Delivery to Airbus or, as the case may be, any Airbus Nominee in
the Delivery Condition at the Delivery Location on the Scheduled Delivery Date.

 

		7.6	Acceptance

 

Subject
to the terms and conditions of this Agreement and the receipt or waiver by Airbus of the Airbus Conditions Precedent set out in
Schedule 5, Airbus shall be obliged to accept delivery (or to procure that the Airbus Nominee accepts delivery) of each Aircraft
when tendered for delivery in accordance with the terms of this Agreement and to execute and deliver (or to procure that the Airbus
Nominee executes and delivers) the Acceptance Certificate in respect of such Aircraft, which shall be conclusive evidence of the
matters stated therein.

 

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		7.7	Transfer
of Title

 

With
regard to each Aircraft, upon:

 

		7.7.1	delivery to China Eastern of the Acceptance
Certificate relating to such Aircraft duly executed by Airbus or by the Airbus Nominee, as applicable; and

 

		7.7.2	receipt or waiver by China Eastern of the
China Eastern Conditions Precedent set out in Schedule 4,

 

China
Eastern shall pass, or shall procure the passing of, title to such Aircraft to Airbus or, as the case may be, the Airbus Nominee
by delivering a Bill of Sale, with full title guarantee freeandclearof allLiens.

 

		7.8	Risk
Passing

 

The
risk of loss or destruction of each Aircraft or damage to such Aircraft shall pass to Airbus or, as the case may be, to the Airbus
Nominee upon Delivery.

 

		7.9	Exportation
&CustomsClearance

 

***

 

		7.10	Post-Delivery Ferry Flights / Intermediate Storage
/ Longer Term Storage

 

		7.10.1	***

 

		7.10.2	***

 

		7.10.3	***

 

		(a)	***

 

		(b)	***

 

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		(c)	***

 

		(d)	***

 

		(e)	***

 

		(f)	***

 

		(g)	***

 

		(h)	***

 

		7.10.4	***

 

		7.10.5	***

 

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		8.	TOTAL
                                                                                                                        LOSS BEFORE
                                                                                                                        DELIVERY

 

***

 

		9.	CONDITION
                                                                                                                        OF AIRCRAFT

 

		9.1	Disclaimers

 

SUBJECT
ALWAYS TO THE TERMS AND CONDITIONS SET OUT IN THIS AGREEMENT AND TO EACH AIRCRAFT BEING IN THE REQUIRED DELIVERY CONDITION, AIRBUS
AGREES THAT AS BETWEEN AIRBUS AND CHINA EASTERN EACH AIRCRAFT AND EACH PART THEREOF IS TO BE SOLD AND PURCHASED ON AN AS IS,
WHERE IS BASIS AS AT ITS DELIVERY DATE, AND, EXCEPT AS EXPRESSLY SET OUT IN THIS AGREEMENT AND THE OTHER SALE DOCUMENTS, NO
TERM, CONDITION, WARRANTY, REPRESENTATION OR IN RESPECT OF THE AIRWORTHINESS, VALUE, QUALITY, DURABILITY, CONDITION, DESIGN, OPERATION,
DESCRIPTION, MERCHANTABILITY OR FITNESS FOR USE OR PURPOSE OF SUCH AIRCRAFT OR ANY PART THEREOF, AS TO THE ABSENCE OF LATENT, INHERENT
OR OTHER DEFECTS (WHETHER OR NOT DISCOVERABLE), AS TO THE COMPLETENESS OR CONDITION OF THE TECHNICAL RECORDS, OR AS TO THE ABSENCE
OF ANY INFRINGEMENT OF ANY PATENT, COPYRIGHT, DESIGN, OR OTHER PROPRIETARY RIGHTS; AND, EXCEPT AS EXPRESSLY SET OUT IN THIS AGREEMENT
AND THE OTHER SALE DOCUMENTS, ALL CONDITIONS, WARRANTIES AND REPRESENTATIONS (OR OBLIGATION OR LIABILITY, IN CONTRACT OR IN TORT)
IN RELATION TO ANY OF THOSE MATTERS, EXPRESSED OR IMPLIED, STATUTORY OR OTHERWISE, ARE EXPRESSLY EXCLUDED.

 

		9.2	Waiver

 

AIRBUS
HEREBY WAIVES, AS BETWEEN ITSELF (ON THE ONE HAND) AND CHINA EASTERN (ON THE OTHER HAND), ALL OF ITS RIGHTS IN RESPECT OF ANY WARRANTY
OR REPRESENTATION, ON THE PART OF CHINA EASTERN AND ALL CLAIMS AGAINST CHINA EASTERN HOWSOEVER AND WHENEVER ARISING AT ANY TIME
IN RESPECT OF OR OUT OF THE OPERATION OR PERFORMANCE OF EACH AIRCRAFT, THIS AGREEMENT OR THE OTHER SALE DOCUMENTS, PROVIDED ALWAYS
THAT THIS WAIVER SHALL NOT APPLY TO THE WARRANTIES AND REPRESENTATIONS GIVEN BY CHINA EASTERN TO AIRBUS IN ANY OF THE SALE DOCUMENTS.

 

		10.	OPERATIONAL
                                                                                                                         INDEMNITIES

 

		10.1	***

 

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		(i)	***

 

		(ii)	***

 

		(iii)	***

 

		10.2	***

 

		(i)	***

 

		(ii)	***

 

		(iii)	***

 

		10.3	The obligations of China Eastern and Airbus
to make any payment pursuant to this Clause 10 are continuing obligations and shall remain in full force and effect notwithstanding
any termination of this Agreement.

 

		11.	TAX INDEMNITIES

 

		11.1	***

 

		11.2	***

 

		11.3	***

 

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		12.	LIABILITY
                                                                   INSURANCE

 

Airbus
shall maintain or procure that liability insurance is maintained in respect of each Aircraft with China Eastern or the relevant
Seller, as the case may be, as additional insured during the period commencing on its Delivery Date and ending on the earlier
of:

 

***

 

		13.	TERMINATION

 

		13.1	The
                                                             termination of the A320 Purchase Agreement for any reason in accordance
                                                             with its terms with respect to any or all of the A320 Aircraft shall
                                                             be a Termination Event and shall constitute a repudiatory
                                                             breach by China Eastern of this Agreement.

 

		13.2	If a Termination Event occurs, Airbus
may, at its option and without prejudice to any other rights it may then have, at any time thereafter terminate all or part this
Agreement and any other Sale Documents (including, without limitation, with respect to any or all Undelivered Aircraft), whereupon
all or part (as applicable) of this Agreement and any such Sale Documents shall be of no further force and effect.

 

		13.3	***

 

		14.	***

 

		14.1	***

 

		14.2	***

 

		15.	CO-OPERATION

 

Airbus
requests and China Eastern undertakes at its own cost to cooperate (and to ensure the cooperation of each Seller) fully with Airbus
at all times and to provide (and to ensure the provision by each Seller of) all assistance and access as may be reasonable within
its power to facilitate the remarketing of each Aircraft by Airbus to any third party or potential Airbus Nominee, provided that
such co-operation does not unreasonably disrupt the scheduled revenue passenger operations of each Aircraft.

 

    	Aircraft Sale and Purchase Agreement
 Reference CT1242070	15

    	 

    

 

		16.	MANUFACTURER’S
                                                                 WARRANTIES

 

		16.1	China Eastern hereby agrees to procure
the assignment to Airbus or, as the case may be, to the Airbus Nominee of any remaining and assignable warranties of any manufacturer,
vendor or repairer which may exist at Delivery.

 

		16.2	If it is not possible for China Eastern
to assign certain remaining warranties of any manufacturer, vendor or repairer which may exist at Delivery, China Eastern agrees
to use its best endeavours to procure that the benefit of such warranties is transferred to or is otherwise accounted for to Airbus
or, as the case may be, to the Airbus Nominee.

 

		17.	BENEFIT
                                                                 OF AGREEMENT

 

Airbus
shall at any time have (i) the right to nominate an Airbus Nominee to act as buyer in accordance with the terms and conditions
set out in this Agreement and/or (ii) the right to assign, sell, transfer or otherwise dispose of its rights and obligations under
this Agreement and the other Sale Documents to any person with the consent of China Eastern (not to be unreasonably withheld).
The agreements contained in this Agreement are, without prejudice to China Eastern’s right to nominate an Approved Provider under
Clause 7.10 or to procure the sale of any Aircraft by a Seller, personal to China Eastern and none of China Eastern, the Sellers
and the Consenting Party may assign, transfer, novate or otherwise dispose of any of its rights or obligations under this Agreement
or the Sale Documents without the prior written agreement of Airbus.

 

		18.	WAIVER

 

		18.1	The failure of any party to enforce at
any time any of the provisions of this Agreement, or to exercise any option herein provided, or to require at any time performance
by the other party of any of the provisions herein, shall in no way be construed to be a present or future waiver of such provision
nor in any way affect the validity of this Agreement or any part thereof or the right of the other party thereafter to enforce
each and every such provision.

 

		18.2	The waiver by any party to any provision,
condition or requirement of this Agreement (otherwise than by express waiver or a variation in writing) shall not constitute a
waiver of any future obligation to comply with such provision, condition or requirement.

 

		18.3	The rights, remedies, powers and privileges
herein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by applicable law.

 

		19.	REMARKETING

 

***

 

		(a)	***

 

    	Aircraft Sale and Purchase Agreement
 Reference CT1242070	16

    	 

    

 

		(b)	***

 

		(c)	***

 

***

 

		20.	NOTICES

 

All
notices under or in connection with this Agreement will, unless otherwise stated, be given in writing by letter or facsimile. Any
such notice is deemed effectively to be given as follows:

 

		20.1	if
by letter, when delivered; and

 

		20.2	if by facsimile, when transmitted and full
transmission has been confirmed by the sender’s fax machine.

 

The
address and facsimile numbers of China Eastern and Airbus are as follows:

 

	China Eastern:	China Eastern Airlines Corporation Limited
	 	 
	Address:	Hongqiao International Airport

 No. 2550 Hongqiao Road 

Shanghai 200335 

People’s Republic of China
	 	 
	Attention:	Manager - Fleet Planning
	Facsimile:	+86 21 62686393
	 	 
	Airbus:	Airbus S.A.S.
	Address:	1 rond-point Maurice Bellonte 

31707 Blagnac CEDEX 

France
	 	 
	Attention:	Vice President - Asset Management
	Facsimile:	+33 5 61 93 30 37

 

 

		21.	MISCELLANEOUS

 

		21.1	Severability

 

If
a provision of this Agreement or any of the other Sale Documents is or becomes illegal, invalid or unenforceable in any jurisdiction
that will not affect:

 

		21.1.1	the legality, validity or enforceability
in that jurisdiction of any other provision of this Agreement or the Sale Documents; or

 

		21.1.2	the legality, validity or enforceability
in any other jurisdiction of that or any other provision of this Agreement or the Sale Documents.

 

		21.2	Expenses
	 	 	 
	 	 	***

 

    	Aircraft Sale and Purchase Agreement
 Reference CT1242070	17

    	 

    

  

		21.3	Sole
                                                                               and Entire Agreement

 

This
Agreement contains the entire agreement between the parties in relation to the matters referred to herein and supersedes any previous
understandings, commitments or representations whatsoever oral or written. No provision of this Agreement may be changed, waived
or discharged except by an instrument in writing signed by all parties (or by their duly authorised representatives or agents).

 

		21.4	Language

 

All
notices to be given under this Agreement will be in English. All other documents delivered to China Eastern by Airbus or, as the
case may be, delivered to Airbus by China Eastern, pursuant to this Agreement will (unless otherwise expressly stated herein) be
in English, or if not in English, will be accompanied by a certified English translation. If there is any inconsistency between
the English version of this Agreement and any version in any other language, the English version will prevail.

 

		21.5	Time
                                                                               of the Essence

 

The
time stipulated in this Agreement for the performance of the payment obligations of Airbus or China Eastern, as the case may be,
under this Agreement shall be of the essence of this Agreement.

 

		21.6	Counterparts

 

This
Agreement may be executed in counterparts, each of which will constitute one and the same document.

 

		21.7	Further
                                                                               Assurances

 

Airbus
and China Eastern each agree from time to time and at the requesting party’s cost to do and perform such other and further
acts and execute and deliver any and all such other instruments as may be required by law or requested by the other party to establish,
maintain and protect the rights and remedies of such party and to carry out and effect the intent and purpose of this Agreement.

 

		21.8	Third
                                                                               Party Rights

 

The
parties do not intend that any term of this Agreement shall be enforceable solely by virtue of the Contracts (Rights of Third
Parties) Act 1999 (the Act) by any person who is not a party to this Agreement. The parties may rescind, vary, waive, release,
assign, novate or otherwise dispose of all or any of their respective rights or obligations under this Agreement in accordance
with the terms of this Agreement without the consent of any person who is not a party to this Agreement.

 

		21.9	No
                                                                               Brokers

 

Airbus
and China Eastern each represent and warrant to the other that it has not paid, agreed to pay or caused to be paid directly or
indirectly in any form any commission, percentage, contingent fee, brokerage or other similar payments of any kind, in connection
with this Agreement or the other Sale Documents or any of the transactions contemplated hereby or thereby.  Each party agrees to
indemnify and hold the others harmless from and against any and all claims, suits, damages, costs and expenses (including reasonable
legal fees) asserted by any agent, broker or third party appointed by the indemnifying party in respect of any commission or compensation
of any nature whatsoever based upon the Aircraft, this Agreement, the other Sale Documents or any of the transactions contemplated
hereby or thereby.

 

    	Aircraft Sale and Purchase Agreement
 Reference CT1242070	18

    	 

    

 

		21.10	Consenting
                                                              Party and Sellers

 

The
Consenting Party and each of the Sellers signs this Agreement in acknowledgement of its terms and does not, unless otherwise expressly
stated, have any rights or obligations arising under or out of this Agreement.

 

		22.	CONFIDENTIALITY

 

		22.1	This
                                                             Agreement (and its existence) and any data exchanged between the
                                                             parties in connection with this Agreement (together the Confidential
                                                             Information) shall be treated by the parties as confidential
                                                             and shall not be released in whole or in part to any third party
                                                             except:

 

		22.1.1	as may be required by law;
	 	 	 

		22.1.2	to appointed legal, tax or accounting
advisors who are bound by a professional duty of confidentiality and who need to be involved for the implementation of the transactions
contemplated by this Agreement;
	 	 	 

		22.1.3	by Airbus to an Airbus Nominee;
	 	 	 

		22.1.4	otherwise in accordance with Clause 22.2.2
below.

 

		22.2	Without prejudice to the foregoing, the
parties agree:

 

		22.2.1	not to make any press release concerning
the Confidential Information without the prior written consent of the other party hereto; and

 

		22.2.2	that
                                                                  each party shall enter into consultations with the others reasonably
                                                                  in advance of any required disclosure of Confidential Information
                                                                  to a third party (the Receiving Party) and that any subsequent
                                                                  disclosure to a Relevant Party shall be subject to written agreement
                                                                  between China Eastern and Airbus, including in particular, but
                                                                  not limited to, the following details:

 

		(a)	the
contact details of the Receiving Party; and

 

		(b)	the
nature and extent of the Confidential Information being disclosed.

 

		22.3	In the case of a disclosure of Confidential
Information by China Eastern, any Seller or the Consenting Party in connection with any filing required to be made with any governmental
or regulatory agency, China Eastern, such Seller and the Consenting Party shall use their best efforts to limit the disclosure
of the Confidential Information to the minimum that is legally required. China Eastern agrees that prior to any such disclosure
or filing, Airbus and China Eastern shall jointly review and agree on the Confidential Information to be filed or disclosed.

 

		22.4	The provisions of this Clause 22 shall
survive any termination of this Agreement for a period of twelve (12) years after the date of Delivery of the last Aircraft to
be delivered under this Agreement.

 

		23.	LAW
                                                            AND JURISDICTION

 

		23.1	This Agreement and the relationship between
the parties shall be governed by and construed in accordance with English law.

 

		23.2	The courts of England are to have jurisdiction
to settle any disputes arising under or in connection with this Agreement and each party submits to the non-exclusive jurisdiction
of the English courts with respect to such disputes

 

    	Aircraft Sale and Purchase Agreement
 Reference CT1242070	19

    	 

    

 

		23.3	Each
party:

 

		23.3.1	waives objection to the English courts
on grounds of forum non conveniens or otherwise as regards proceedings in connection with this Agreement;

 

		23.3.2	agrees that a judgment or order of an
English court in connection with this Agreement is conclusive and binding on it and may be enforced against it in the courts of
any other jurisdiction.

 

		23.4	Without
prejudice to any other mode of service allowed under any relevant law:

 

		23.4.1	China Eastern, the Sellers and the Consenting
Party appoint China Eastern Airlines London Office of 37-39 George Street, London, W1U 3QD, United Kingdom as their agent for service
of process in relation to any proceedings before the English courts in connection with any Sale Document; and

 

		23.4.2	Airbus appoints Airbus Operations Limited,
New Filton House, Filton, Bristol, BS99 7AR, United Kingdom as its agent for service of process in relation to any proceedings
before the English courts in connection with any Sale Document; and

 

all
parties agree that failure by a process agent to notify them of the process will not invalidate the proceedings concerned.

 

IN
WITNESS whereof this Agreement has been signed on the day and year first above written.

 

    	Aircraft Sale and Purchase Agreement
 Reference CT1242070	20

    	 

    

 

SCHEDULE
1

 

AIRCRAFT

 

Part
1

 

	 	 	1

                                                                                                              

        Airframe

        

        Make/Model
	 	2

                                                                                                              Manufacturer’s
                                                                                                              

                                                                                                              Serial
                                                                                                              Number
	 	3

                                                                                                              

        Chinese

        

        Registration
	 	4

                                                                                                              

        Engine

        

        Make/Model
	 	5

        Delivery
        Location
	 	6

                                                                                                              

        Scheduled
        

        Delivery Date
	 	7

                                                                                                              

        Gross
        Sale Price 

        (US$)
	 	8

                                                                                                              

        Seller
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1.	 	Bombardier

        CRJ-200
	 	7571	 	B-3013	 	CF34-3B1	 	Kunming	 	***	 	***	 	CES
    YUNNAN	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2.	 	Bombardier

        CRJ-200
	 	7581	 	B-3019	 	CF34-3B1	 	Kunming	 	***	 	***	 	CES
    YUNNAN	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3.	 	Bombardier

        CRJ-200
	 	7596	 	B-3021	 	CF34-3B1	 	Kunming	 	***	 	***	 	CES
    YUNNAN	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4.	 	Bombardier

        CRJ-200
	 	7647	 	B-3070	 	CF34-3B1	 	Kunming	 	***	 	***	 	CES
    YUNNAN	 

 

    	Aircraft Sale and Purchase Agreement
 Reference CT1242070	21

    	 

    

 

	 	 	1

                                                                                                              

        Airframe

        

        Make/Model
	 	2

                                                                                                              Manufacturer’s
                                                                                                              

                                                                                                              Serial
                                                                                                              Number
	 	3

                                                                                                              

        Chinese

        

        Registration
	 	4

                                                                                                              

        Engine

        

        Make/Model
	 	5

        Delivery
        Location
	 	6

                                                                                                              

        Scheduled
        

        Delivery Date
	 	7

                                                                                                              

        Gross
        Sale Price 

        (US$)
	 	8

                                                                                                              

        Seller
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5.	 	Bombardier

        CRJ-200
	 	7684	 	B-3071	 	CF34-3B1	 	Kunming	 	***	 	***	 	CES
    YUNNAN	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6.	 	Bombardier

        CRJ-200
	 	7453	 	B-3018	 	CF34-3B1	 	Shanghai	 	***	 	***	 	SHANGHAI

        AIRLINES
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	7.	 	Bombardier

        CRJ-200
	 	7459	 	B-3020	 	CF34-3B1	 	Shanghai	 	***	 	***	 	SHANGHAI

        AIRLINES
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8.	 	Bombardier

        CRJ-200
	 	7556	 	B-3011	 	CF34-3B1	 	Shanghai	 	***	 	***	 	SHANGHAI

        AIRLINES
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9.	 	Embraer

        ERJ-145
	 	14500839	 	B-3049	 	AE3007A1	 	Nanjing	 	***	 	***	 	CES
    JIANGSU	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	10.	 	Embraer

        ERJ-145
	 	14500848	 	B-3050	 	AE3007A1	 	Nanjing	 	***	 	***	 	CES
    JIANGSU	 

 

    	Aircraft Sale and Purchase Agreement
 Reference CT1242070	22

    	 

    

 

	 	 	1

                                                                                                              

        Airframe

        

        Make/Model
	 	2

                                                                                                              Manufacturer’s
                                                                                                              

                                                                                                              Serial Number
	 	3

                                                                                                              

        Chinese

        

        Registration
	 	4

                                                                                                              

        Engine

        

        Make/Model
	 	5

        Delivery
        Location
	 	6

                                                                                                              

        Scheduled
        

        Delivery Date
	 	7

                                                                                                              

        Gross
        Sale Price 

        (US$)
	 	8

                                                                                                              

        Seller
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	11.	 	Embraer

        ERJ-145
	 	14500898	 	B-3051	 	AE3007A1	 	Nanjing	 	***	 	***	 	CES
    JIANGSU	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	12.	 	Embraer

        ERJ-145
	 	14500905	 	B-3052	 	AE3007A1	 	Nanjing	 	***	 	***	 	CES
    JIANGSU	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	13.	 	Embraer

        ERJ-145
	 	14500882	 	B-3053	 	AE3007A1	 	Nanjing	 	***	 	***	 	CES
    JIANGSU	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	14.	 	Embraer

        ERJ-145
	 	14500921	 	B-3055	 	AE3007A1	 	Wuhan	 	***	 	 ***	 	CES
    WUHAN	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	15.	 	Embraer

        ERJ-145
	 	14500928	 	B-3056	 	AE3007A1	 	Wuhan	 	***	 	 ***	 	CES
    WUHAN	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	16.	 	Embraer

        ERJ-145
	 	14500932	 	B-3057	 	AE3007A1	 	Wuhan	 	 ***	 	 ***	 	CES
    WUHAN	 

 

    	Aircraft Sale and Purchase Agreement
 Reference CT1242070	23

    	 

    

 

	 	 	1

                                                                                                              

        Airframe

        

        Make/Model
	 	2

                                                                                                              Manufacturer’s
                                                                                                              

                                                                                                              Serial
                                                                                                              Number
	 	3

                                                                                                              

        Chinese

        

        Registration
	 	4

                                                                                                              

        Engine

        

        Make/Model
	 	5

        Delivery
        Location
	 	6

                                                                                                              

        Scheduled
        

        Delivery Date
	 	7

                                                                                                              

        Gross
        Sale Price 

        (US$)
	 	8

                                                                                                              

        Seller
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	17.	 	Embraer

        ERJ-145
	 	14500958	 	B-3058	 	AE3007A1	 	Wuhan	 	***	 	***	 	CES
    WUHAN	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	18.	 	Embraer

        ERJ-145
	 	14500949	 	B-3059	 	AE3007A1	 	Wuhan	 	***	 	***	 	CES
    WUHAN	 

  

    	Aircraft Sale and Purchase Agreement
 Reference CT1242070	24

    	 

    

 

Part
2

 

Engine
Make/Model: CF34-3B1 (16 of the following 19 engine pool)

 

	Engine Serial Numbers
	 
	873589	873246
	873161	873493
	872856	872878
	873195	873387
	873235	872855
	873390	873123
	873164	872877
	873234	873118
	873490	873388
	873200	 

 

Engine
Make/Model: AE3007A1 (20 of the following 24 engine pool)

 

	Engine Serial Numbers
	 
	CAE-312818	CAE-312866	CAE-313006	CAE-312963
	CAE-312819	CAE-312878	CAE-313014	CAE-312979
	CAE-312853	CAE-312854	CAE-312952	CAE-312855
	CAE-312938	CAE-312940	CAE-313013	CAE-312863
	CAE-312777	CAE-313005	CAE-312957	CAE-312982
	CAE-312861	CAE-313039	CAE-312980	CAE-313040

 

    	Aircraft Sale and Purchase Agreement
 Reference CT1242070	25

    	 

    

 

SCHEDULE 2

 

CHINA
EASTERN REPRESENTATIONS AND WARRANTIES

 

China
Eastern represents and warrants to Airbus that:

 

		(a)	Status:
                                                          China Eastern and each Seller are companies duly incorporated under
                                                          the laws of China and each Seller is a wholly owned subsidiary of China
                                                          Eastern;

 

		(b)	Power
                                                          and authority: China Eastern and each Seller have the power to:
                                                          (i) enter into and perform and have taken all necessary action to authorise
                                                          the entry into, performance and delivery of this Agreement and the other
                                                          Sale Documents to which they are party; (ii) to own their assets; and
                                                          (iii) carry on their business as it is being conducted;

 

		(c)	Legal
                                                          validity: this Agreement and the other Sale Documents to which China
                                                          Eastern and each Seller are party constitute, or when entered into will
                                                          constitute, China Eastern’s and/or such Seller’s legal,
                                                          valid and binding obligation;

 

		(d)	Non-conflict:
                                                          neither the execution and delivery of this Agreement or any of the other
                                                          Sale Documents to which China Eastern or any Seller is party, nor the
                                                          performance of any of the obligations contained herein or therein will
                                                          contravene any law, judgement or order by which China Eastern or such
                                                          Seller or any of their assets is bound or affected; and

 

		(e)	No
                                                          immunity:

 

		(i)	China Eastern and each Seller are subject
to civil commercial law with respect to their obligations under this Agreement and the other Sale Documents to which they are party;
and

 

		(ii)	none of China Eastern, each Seller nor
any of their assets are entitled to any right of immunity, and the entry into and performance of this Agreement and the other Sale
Documents to which they are party constitute private and commercial acts.

 

		(f)	No Liens: at the Delivery the
                                                          Aircraft shall be free and clear of all Liens.

 

    	Aircraft Sale and Purchase Agreement
 Reference CT1242070	26

    	 

    

 

SCHEDULE
3

 

AIRBUS
REPRESENTATIONS AND WARRANTIES

 

Airbus
represents and warrants to China Eastern that:

 

		(g)	Status:
                                                            Airbus is a company duly incorporated under the laws of France.

 

		(h)	Power
                                                            and authority: Airbus has the power to enter into and perform,
                                                            and has taken all necessary corporate action to (i) authorise the
                                                            entry into, performance and delivery of this Agreement and the other
                                                            Sale Documents to which it is party; (ii) own its assets; and (iii)
                                                            carry on its business as it is being conducted.

 

		(i)	Legal
                                                            validity: this Agreement and the other Sale Documents to which
                                                            it is a party constitutes, or when entered into will constitute, Airbus’
                                                            legal, valid and binding obligations enforceable against Airbus in
                                                            accordance with the terms hereof and thereof;

 

		(j)	Non-conflict: neither the execution
                                                            and delivery of this Agreement or any of the other Sale Documents
                                                            to which Airbus is party, nor the performance of any of the obligations
                                                            contained herein or therein will contravene any law, judgement or
                                                            order by which Airbus or any of its assets are bound or affected;

 

		(k)	No immunity:

 

		(i)	Airbus is subject to civil commercial
law with respect to its obligations under this Agreement and the other Sale Documents to which it is a party; and
	 	 	 

		(ii)	neither Airbus nor any of its assets is
entitled to any right of immunity, and the entry into and performance by Airbus of this Agreement and the other Sale Documents
to which it is a party constitute private and commercial acts.

 

    	Aircraft Sale and Purchase Agreement
 Reference CT1242070	27

    	 

    

 

SCHEDULE
4

 

CHINA
EASTERN CONDITIONS PRECEDENT

 

The
obligation of China Eastern to sell and deliver an Aircraft or to procure the sale and delivery of an Aircraft on the terms and
conditions set out in this Agreement is conditional upon satisfaction in full, on the Delivery Date, of the following conditions,
each in form and substance satisfactory to China Eastern:

 

		(a)	Insurance:
                                                                                     ***

 

		(b)	Licences,
                                                                                     Consents and Registrations: ***

 

		(c)	No
                                                                                     Default: 
                                                                                     ***

 

		(d)	Representations:
                                                                                     ***

 

		(e)	Legality:
                                                                                     ***

 

		(f)	No
                                                                                     Total Loss or Material Damage: ***

 

		(g)	Gross
                                                                                     Sale Price: ***

 

		(h)	Opinion
                                                                                     ***

 

		(i)	Powers
                                                                                                                          of Attorney:
                                                                                                                          ***

 

		(j)	Corporate
                                                                                     Certificate: ***

 

		(k)	Sale
                                                                                                                          Documents:
                                                                                                                          ***

 

    	Aircraft Sale and Purchase Agreement
 Reference CT1242070	28

    	 

    

 

 

SCHEDULE
5

 

AIRBUS
CONDITIONS PRECEDENT

 

The
obligation of Airbus to purchase or procure the purchase of an Aircraft on the terms and conditions set out in this Agreement is
conditional upon satisfaction in full, on the Delivery Date (unless otherwise stated), of the following conditions, each in form
and substance satisfactory to Airbus:

 

		(a)	Corporate
                                                                  Certificate: ***

 

		(b)	Opinions:
                                                                  ***

 

		(c)	Licences,
                                                                  Consents and Registrations: ***

 

		(d)	***

 

		(e)	***

 

		(i)	***

 

		(ii)	***

 

		(iii)	***

 

		(f)	Representations:
                                                           ***

 

		(g)	Legality:
                                                           ***

 

    	Aircraft Sale and Purchase Agreement
Reference CT1242070	 	29

    	 

    

 

		(h)	No Total Loss or Material Damage:
                                                           ***

 

		(i)	Delivery
                                                           Condition: ***

 

		(j)	Delivery Location:
                                                                  ***

 

		(k)	Process Agent:
                                                           ***

 

		(l)	Sale Documents:
                                                           ***

 

    	Aircraft Sale and Purchase Agreement
Reference CT1242070	 	30

    	 

    

 

SCHEDULE
6

 

FORM
OF BILL OF SALE

 

BILL
OF SALE

 

For
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, [          ]
(Seller), owner of the aircraft described below (hereinafter referred to as the Aircraft):

 

		1.	one (1) [          ]
aircraft bearing manufacturer’s serial number [          ];

 

		2.	two
(2) [         ] engines bearing manufacturer’s serial numbers [         ]
and [         ];

 

		3.	all equipment, accessories and parts belonging
to, installed in or appurtenant to such Aircraft; and

 

		4.	the documents, data and records relating
to the Aircraft,

 

does
hereby sell, grant, transfer and deliver all its right, title and interest in and to the Aircraft with full title guarantee to
[          ] (the Buyer) to have and hold forever free and clear of all
Liens.

 

The
Seller hereby warrants to the Buyer, and its successors and assigns, that there is hereby conveyed to the Buyer, with full title
guarantee, all of the Seller’s right, title and interest in and to the Aircraft free and clear of all Liens and that it will warrant
and defend such title forever against all claims and demands whatsoever.

 

Unless
otherwise defined herein, all capitalised terms and expressions used in this Bill of Sale shall have the meanings given in the
aircraft sale and purchase agreement dated [          ] 2012 and made between
China Eastern, China Eastern Aviation Import and Export Corporation and Airbus S.A.S. (the Agreement).

 

Except
as otherwise provided herein or pursuant to the Agreement, the Aircraft is sold on the basis of an as is, where is sale.

 

This
Bill of Sale is governed by English law.

 

IN
WITNESS whereof, the Seller has caused this Bill of Sale to be duly executed at [          ]
am/pm in [          ] this [          ]
day of [          ]

 

	SIGNED by a duly authorised representative	)	 
	for and on behalf of	)	 
	 	)	 
	[          ]	)	 
	 	)   	 
	 	)	 
	 	 	 
	in the presence of:	 	 
	 	 	 
	Name:	 	 
	Address:	 	 

 

    	Aircraft Sale and Purchase Agreement
Reference CT1242070	 	31

    	 

    

 

SCHEDULE
7

 

FORM
OF ACCEPTANCE CERTIFICATE

 

ACCEPTANCE
CERTIFICATE RELATING TO ONE (1) [          ] AIRCRAFT,

MANUFACTURER’S SERIAL NUMBER [          ] (the Aircraft)

 

[          ]
(the Buyer) hereby certifies that pursuant to the aircraft sale and purchase agreement dated [          ]
2012 between China Eastern Airlines Corporation Limited, China Eastern Aviation Import and Export Corporation and Airbus S.A.S.
(the Agreement):

 

		(a)	[the Buyer has inspected the Aircraft,
found it to be complete and satisfactory to it and the Aircraft conforms with the description and is in the condition and equipped
as required by the Agreement];

 

		(b)	the Buyer has accepted delivery of the
Aircraft; and

 

		(c)	the Buyer [has inspected, found to be
complete and satisfactory to it and] has received all of the documents, data and records relating to the Aircraft as required by
the Agreement.

 

Capitalised
terms and expressions used in this Acceptance Certificate shall have the meanings given in the Agreement.

 

Date:
[          ] 2012

 

	SIGNED by a duly authorised representative	)	 
	for and on behalf of	)	 
	 	)	 
	[          ]	)	 
	 	)   	 
	 	)	 
	 	 	 
	in the presence of:	 	 
	 	 	 
	Name:	 	 
	Address:	 	 

 

    	Aircraft Sale and Purchase Agreement
Reference CT1242070	 	32

    	 

    

 

SCHEDULE
8

 

Intentionally
left blank.

 

    	Aircraft Sale and Purchase Agreement
Reference CT1242070	 	33

    	 

    

 

SCHEDULE
9

 

DELIVERY
CONDITION

 

At
delivery of any Aircraft (the Delivery) the Aircraft will comply with each of the conditions set out below (the Delivery
Condition). The procedures for ascertaining if the Aircraft comply with the Delivery Condition are set out in paragraphs 3,
5(b) and 6 to 10 hereunder. Except if and where otherwise expressly stated, the Delivery Condition shall be met at China Eastern’s
cost.

 

All
references to Airbus hereunder, in its capacity as buyer of the Aircraft, shall be deemed also to include reference to any Airbus
Nominee.

 

Capitalised
terms not otherwise defined in this Schedule 9 shall have the same meanings as are ascribed to them in Clause 1 of the Agreement.

 

		1.	General Condition

 

***

 

		2.	Certificate of Airworthiness Matters

 

On
the Delivery Date the Aircraft shall:

 

		(a)	***

 

		(b)	***

 

		3.	Condition
                                                                                                   of Engines

 

		(a)	***

 

		(b)	***

 

		4.	Condition of APU

 

***

 

    	Aircraft Sale and Purchase Agreement
Reference CT1242070	 	34

    	 

    

 

		5.	Aircraft
                                                                                                   Documents

 

		(a)	China Eastern shall provide to Airbus without prejudice to paragraph 12 below:

 

		(i)	***

 

		A.	***

 

		B.	***

 

		C.	***

 

		D.	***

 

		E.	***

 

		F.	***

 

		G.	***

 

		H.	***

 

		I.	***

  

		(ii)	with respect to Engines:-

 

		A.	***

 

		B.	***

 

		C.	***

 

		D.	***

 

		E.	*** and

 

		(iii)	With respect to the APU:-

 

		A.	***

 

		B.	***

 

		C.	***

 

		D.	***

 

		(iv)	***

 

		(v)	***

 

    	Aircraft Sale and Purchase Agreement
Reference CT1242070	 	35

    	 

    

 

		(b)	***

 

		6.	Ground Inspection by Airbus

 

***

 

		7.	Operational Ground Check

 

***

 

		8.	Acceptance
                                                          Flight

 

		(a)	***

 

    	Aircraft Sale and Purchase Agreement
Reference CT1242070	 	36

    	 

    

 

		(b)	***

 

		9.	***

 

		10.	***

 

		11.	***

 

		12.	***

 

		·	***

 

		·	***

 

		·	***

 

		·	***

 

		·	***

 

		·	***

 

		·	***

 

		·	***

 

		·	***

 

		·	***

 

		·	***

 

		·	***

 

as
long as any such finding still allows the Aircraft to be released for commercial passenger transport operations under Aviation
Authority airworthiness requirements.

 

    	Aircraft Sale and Purchase Agreement
Reference CT1242070	 	37

    	 

    

 

For
any issues which may be found unresolved during inspection which China Eastern estimates are necessary to correct and/or do not
allow the Aircraft to be released for commercial passenger transport operations under Aviation Authority airworthiness requirements,
China Eastern shall repair or replace the part or missing item at its expense. Unless otherwise agreed between Airbus and China
Eastern, Airbus shall not require financial compensation as an alternative remedy to such findings.

 

    	Aircraft Sale and Purchase Agreement
Reference CT1242070	 	38

    	 

    

 

SCHEDULE
10

 

AIRCRAFT
DOCUMENTS

 

Intentionally
left blank.

 

    	Aircraft Sale and Purchase Agreement
Reference CT1242070	 	39

    	 

    

 

EXECUTION
PAGE – AIRCRAFT SALE AND PURCHASE AGREEMENT

 

	Airbus	 	 
	 	 	 
	SIGNED
    by a duly authorised representative	)	 
	for
    and on behalf of	)	 
	 	)	 
	AIRBUS S.A.S.	)	/s/
    John LEAHY
	 	)	John
    LEAHY
	 	 	COO - CUSTOMERS
	 	 	 
	China
    Eastern	 	 
	 	 	 
	SIGNED
    by a duly authorised representative	)	 
	for
    and on behalf of	)	 
	CHINA
    EASTERN AIRLINES

CORPORATION
    LIMITED	)

)

)   	 
	 	)	 
	 	 	 
	Consenting
    Party

    

    SIGNED by a duly authorised representative

    for and on behalf of

    

    CHINA EASTERN AVIATION IMPORT AND

    EXPORT CORPORATION	 

 

)

)

)

)

)	
	 	)	 

 

    	Aircraft Sale and Purchase Agreement
Reference CT1242070	 	40

    	 

    

 

EXECUTION
PAGE – AIRCRAFT SALE AND PURCHASE AGREEMENT

 

	Sellers	 	 
	 	 	 
	SIGNED by a duly authorised representative

for and on behalf of

 

CHINA EASTERN AIRLINES,

WUHAN COMPANY	)

)

)

)

)	
	 	)   	 
	 	 	 
	SIGNED by a duly authorised representative

for and on behalf of

 

CHINA EASTERN YUNNAN AIRLINES	)

)

)

)	
	 	)	 
	 	 	 
	SIGNED by a duly authorised representative 

for and on behalf of

 

CHINA EASTERN AIRLINES JIANGSU LTD.	)

)

)

)	
	 	)	 
	 	 	 
	SIGNED by a duly authorised representative 

for and on behalf of

 

SHANGHAI AIRLINES COMPANY LIMITED.	)

)

)

)	
	 	)	 

 

    	Aircraft Sale and Purchase Agreement
Reference CT1242070	 	41

    	 

    

 

TOTAL
LOSS SIDE LETTER

 

		To:	AIRBUS S.A.S. (Airbus)

1
rond-point Maurice Bellonte 31700 Blagnac Cedex, France

 

		From:	CHINA EASTERN AIRLINES CORPORATION LIMITED (China Eastern)

Bai
Yun Airport, Guangzhou 510405, the People’s Republic of China

 

		And:	CHINA EASTERN AVIATION IMPORT AND EXPORT CORPORATION

(the
Consenting Party) Hongqiao International Airport, No. 2550 Hongqiao Road, Shanghai 200335, the People’s Republic
of China

 

		And:	CHINA EASTERN AIRLINES, WUHAN COMPANY (CES WUHAN)

188
Julong Avenue, Panlongcheng Economic & Technological Development Zone, Wuhan, the People’s Republic of China

 

		And:	CHINA EASTERN YUNNAN AIRLINES (CES YUNNAN)

Wujiaba
International Airport, Kunming, Yunnan Province, the People’s Republic of China

 

		And:	CHINA EASTERN AIRLINES JIANGSU LTD. (CES JIANGSU)

Lukou
International Airport, Nanjing, the People’s Republic of China

 

		And:	SHANGHAI AIRLINES COMPANY LIMITED (SHANGHAI AIRLINES)

Room
511 Building 6 No. 92, Honggangsan Rd., Hongqiao Airport, Shanghai, the People’s Republic of China

 

23rd November 2012

 

Dear
Sir or Madam,

 

		1.	We refer to:

 

		(a)	the
                                                               aircraft sale and purchase agreement (the Agreement) dated
                                                               today’s date entered into between Airbus, China Eastern,
                                                               the Consenting Party, CES WUHAN, CES YUNNAN, CES JIANGSU and SHANGHAI
                                                               AIRLINES (together the Parties) with respect to the sale
                                                               and purchase of eight (8) Bombardier CRJ-200 and ten (10) Embraer
                                                               ERJ-145 aircraft (together the Aircraft); and

 

		(b)	***

 

		2.	Capitalised terms used in this Side Letter
and not otherwise defined herein shall have the meanings given to them in the Agreement.

 

		3.	***

 

		(i)	***

 

    	Total Loss Side Letter	 	1

    	 

    

 

		(ii)	***

 

		4.	Each Lost Aircraft Credit will be granted
subject to the following conditions:

 

		(a)	***

 

		(b)	***

 

		(c)	***

 

		(d)	***

 

		(e)	***

 

		5.	Notwithstanding this Side Letter, the
Agreement shall continue in full force and effect in accordance with its terms.

 

		6.	As between the Parties, this Side Letter
forms an integral part of the arrangements contemplated by the Agreement and is a “Sale Document”.

 

		7.	Clauses 21 (Miscellaneous), 22
(Confidentiality) and 23 (Law and Jurisdiction) of the Agreement shall each apply to this Side Letter as if set out
here in full herein, save that references to the “Agreement” shall instead be read as references to this Side Letter.

 

		8.	Airbus enters into the Agreement and this
Side Letter in consideration of China Eastern entering into the Amendment No. 2.

 

		9.	If you agree to the terms of this Side
Letter, please sign in acknowledgement and agreement of its terms where indicated below.

 

    	Total Loss Side Letter	 	2

    	 

    

 

EXECUTION
PAGE – TOTAL LOSS SIDE LETTER

 

Yours
faithfully,

 

	SIGNED by a duly authorised representative

for and on behalf of

 

CHINA EASTERN AIRLINES

CORPORATION LIMITED	)

)

)

)

)   	
	 	)	 

 

Signed
in acknowledgement and agreement of the terms of this Side Letter

 

	SIGNED by a duly authorised representative	)	 
	for and on behalf of	)	 
	 	)	 
	AIRBUS S.A.S.	)	 
	 	)   	/s/ John LEAHY
	 	)	John LEAHY
	 	 	 
	 	 	COO - CUSTOMERS

 

    	Total Loss Side Letter	 	3

    	 

    

 

EXECUTION
PAGE – TOTAL LOSS SIDE LETTER

 

Signed
in acknowledgement and agreement of the terms of this Side Letter

 

	SIGNED by a duly authorised representative

for and on behalf of

 

CHINA EASTERN AVIATION IMPORT AND

EXPORT CORPORATION	)

)

)

)

)	
	 	)	 
	 	 	 
	SIGNED by a duly authorised representative

for and on behalf of

 

CHINA EASTERN AIRLINES,

WUHAN COMPANY	)

)

)

)

)	
	 	)	 
	 	 	 
	SIGNED by a duly authorised representative

for and on behalf of

 

CHINA EASTERN YUNNAN AIRLINES	)

)

)

)	
	 	)	 
	 	 	 
	SIGNED by a duly authorised representative

for and on behalf of

 

CHINA EASTERN AIRLINES JIANGSU LTD.	)

)

)

)	
	 	)	 
	 	 	 
	SIGNED by a duly authorised representative

for and on behalf of

 

SHANGHAI AIRLINES COMPANY LIMITED.	)

)

)

)	
	 	)	 

 

    	Total Loss Side Letter	 	4STOCK PURCHASE AGREEMENT

 

AMONG

 

STAFFING 360 SOLUTIONS, INC.

(the “Purchaser”)

 

AND

 

NEWCSI, INC.

(“NCSI”)

 

AND

 

THE SHAREHOLDERS OF NCSI

 

Dated as of August 14, 2013

  

    	 

    	 

    

 

TABLE OF CONTENTS

 

	ARTICLE I      Definitions	6
	 	 
	1.1     Definitions	8
	 	 
	1.2     Meaning of Knowledge	8
	 	 
	ARTICLE II     Purchase and Sale of Shares	8
	 	 
	2.1     Sale and Delivery	8
	 	 
	2.2     Purchase Price	9
	 	 
	2.3     Employment Agreement	11
	 	 
	2.4     Closing	11
	 	 
	2.5     Other Payments at Closing	11
	 	 
	2.6     Accounts Receivable and WIP Reimbursement	11
	 	 
	2.7     Deferred Tax Asset	12
	 	 
	2.8     Forwarding of Payments	12
	 	 
	ARTICLE III     Representations and Warranties Concerning NCSI	12
	 	 
	3.1     Organization and Good Standing	12
	 	 
	3.2     Ownership of Shares and CCSI Capital Stock	12
	 	 
	3.3     Consents; Valid Title	13
	 	 
	3.4     Authorization	13
	 	 
	3.5     No Conflicts	13
	 	 
	3.6     Access to Information	13
	 	 
	3.7     Investment	13
	 	 
	ARTICLE IIIA     Representation and Warranties Concerning the Shareholders	13
	 	 
	3A.1        Consents	13
	 	 
	3A.2        Authorization	14
	 	 
	3A.3        No Conflicts	14
	 	 
	ARTICLE IV     Representations and Warranties Concerning CSI	14
	 	 
	4.1      Organization and Good Standing	14
	 	 
	4.2      Subsidiaries	14
	 	 
	4.3     No Conflicts	14
	 	 
	4.4     Capitalization	15
	 	 
	4.5     Financial Statements	15
	 	 
	4.6     Title to Property; Encumbrances	15
	 	 
	4.7     Insurance	16
	 	 
	4.8     Indebtedness	16

 

    	2

    	 

    

 

	4.9     Litigation	16
	 	 
	4.10   Income and Other Tax	16
	 	 
	4.11   Employee Benefit Matters	17
	 	 
	4.12    Consents	17
	 	 
	4.13   Material Contracts; No Defaults	17
	 	 
	4.14   Employee and Labor Matters	18
	 	 
	4.15   Principal Customers and Supplies	18
	 	 
	4.16   Books and Records	19
	 	 
	4.17   Intellectual Property	19
	 	 
	4.18   Authorization	19
	 	 
	4.19   Absence of Changes	19
	 	 
	4.20   Absence of Undisclosed Liabilities	19
	 	 
	4.21   Legal Compliance	19
	 	 
	4.22   Illegal Payments	20
	 	 
	4.23   Affiliate Transactions	20
	 	 
	4.24   Money Laundering Laws	20
	 	 
	4.25   Accounts Receivable	20
	 	 
	4.26   Environmental Matters	20
	 	 
	4.27   Disclosure	21
	 	 
	ARTICLE V     Representations and Warranties of Purchaser	21
	 	 
	5.1     Organization and Good Standing	21
	 	 
	5.2     Authorization; Compliance with Law	21
	 	 
	5.3     Purchaser Shares	21
	 	 
	5.4     No Conflicts	21
	 	 
	5.5     Consents	21
	 	 
	5.6     Litigation	22
	 	 
	5.7     Exchange Act Documents	22
	 	 
	ARTICLE VI     Covenants	22
	 	 
	6.1     Ordinary Course	22
	 	 
	6.2     Dividends; Capital Stock	22
	 	 
	6.3     Covenant Not to Use Name	22
	 	 
	6.4     Confidentiality	23
	 	 
	6.5     Publicity	23
	 	 
	6.6     Required Information	23

 

    	3

    	 

    

 

	6.7     Insurance	23
	 	 
	6.8     Employment Practices	23
	 	 
	6.9     Transfer Taxes	23
	 	 
	ARTICLE VII     Conditions Precedent to Closing	23
	 	 
	7.1     Conditions of the Purchaser	23
	 	 
	7.2     Conditions of NCSI and the Shareholders	25
	 	 
	ARTICLE VIII     Indemnification	25
	 	 
	8.1     Survival of Representations and Warranties	26
	 	 
	8.2     Indemnification	26
	 	 
	ARTICLE IX     Termination; Amendment and Waiver	27
	 	 
	9.1     Termination	27
	 	 
	9.2     Effect	27
	 	 
	9.3     Amendment	27
	 	 
	9.4     Waiver	28
	 	 
	ARTICLE X     General Provisions	28
	 	 
	10.1   Complete Agreement and other Matters	28
	 	 
	10.2   Expenses	28
	 	 
	10.3   Broker's Fees	28
	 	 
	10.4   Further Action	28
	 	 
	10.5   Notice	28
	 	 
	10.6   Right of Set Off	29
	 	 
	10.7   Survival	29

  

	SCHEDULE	 	SUBJECT
	 	 	 
	2.1(c)	 	Excluded Liabilities
	4.1	 	Foreign Qualifications
	4.3	 	No Conflicts
	4.6(a)	 	Liens
	4.6(b)	 	Property Leases and Licenses
	4.7	 	Insurance
	4.9	 	Litigation
	4.11(a)	 	Employee Welfare Plans
	4.11(b)	 	Employee Benefit Plans
	4.12	 	Consents
	4.13(a)	 	Customer Agreements
	4.13(b)	 	Consultant Agreements
	4.13(c)	 	Non-Competition and Non-Disclosure Agreements
	4.13(d)	 	Key Employee Agreements
	4.13(e)	 	Other Material Contracts

 

    	4

    	 

    

 

	4.13(f)	 	Defaults
	4.13(g)	 	Agreements for Borrowed Money and Investments
	4.14	 	Employee and Labor Matters
	4.15(a)	 	Major Customer Sales
	4.15(b)	 	Termination of Major Customers
	4.19	 	Material Changes
	4.20	 	Liabilities
	4.21	 	Compliance with Laws
	4.23(a)	 	Affiliate Transactions
	4.23(b)	 	Interests in Assets

 

    	5

    	 

    

 

STOCK PURCHASE
AGREEMENT

 

THIS STOCK PURCHASE
AGREEMENT (this “Agreement”), dated as of August 14, 2013, is by and among Staffing 360 Solutions, Inc., a Nevada corporation
(the “Purchaser”), those Persons listed on Exhibit A hereto (individually a “Shareholder”, and individually
and collectively the “Shareholders”), and NewCSI, Inc., a Delaware corporation (“NCSI”). The Purchaser,
the Shareholders and NCSI are collectively referred to herein as the “Parties.”

 

This Agreement contemplates
a transaction in which the Purchaser will purchase from NCSI all of the issued and outstanding shares of capital stock of Control
Solutions International, Inc., a Florida corporation (the “Company” or “CSI”) in consideration of the Purchase
Price (as defined below).

 

Now, therefore, in
consideration of the premises and the mutual promises herein made, and in consideration of the representations, warranties, and
covenants herein contained, the Parties agree as follows:

 

ARTICLE I

 

Definitions

 

1.1         Definitions.
In addition to the capitalized terms defined elsewhere in this Agreement, including the recitals, the following capitalized terms,
when used herein, shall have the following meanings:

 

Adjustment Events”
has the meaning set forth in Section 2.2(c)(ii) hereof; 

 

“Affiliate”
means, with respect to a specified Person, any other Person or member of a group of Persons acting together that, directly or indirectly,
through one or more intermediaries, Controls, or is Controlled by or is under common Control with, the specified Person.

 

“Agreement,”
“this Agreement,” “hereto,” “hereof,” “hereunder,” “hereby,”
and similar expressions refer to this Stock Purchase Agreement, including the Schedules and exhibits attached hereto, and not any
particular article, section, subsection or other subdivision hereof or thereof.

 

“Annual Financial
Statements” has the meaning set forth in Section 4.5(a) hereof.

 

“Business
Day” means a day, other than Saturday or Sunday, on which banks in Boston, Massachusetts and New York, New York are open
to the public for the transaction of their normal banking business.

 

“CCSI”
means Canada Control Solutions International, Inc., the wholly-owned British Columbia subsidiary of CSI.

 

“Cash Portion
of the Purchase Price” has the meaning set forth in section 2.2(a) hereto.

 

“Closing”
has the meaning set forth in Section 2.4 hereof.

 

“Closing Date”
has the meaning set forth in Section 2.4 hereof.

 

“Closing Payment”
has the meaning set forth in Section 2.2 hereof.

 

“Code”
means the Internal Revenue Code of 1986, as amended, and regulations promulgated thereunder.

 

“Consents”
has the meaning set forth in Section 4.12 hereof.

 

“Control”
(including the terms “Controlling,” “Controlled By,” and “under Common Control With”) means
the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether
through the ownership of voting securities, by contract, by position or otherwise.

 

    	6

    	 

    

 

“Disclosure
Schedule” means, individually, a Schedule referred to in Article IV hereof, and collectively, all of the Schedules referred
to in Article IV hereof.

 

“Earn Out”
has the meaning set forth in Section 2.2(c)(i) hereof.

 

“Earn Out
Period” has the meaning set forth in Section 2.2(c)(i) hereof.

 

“Earn Out
Statement” has the meaning set forth in Section 2.2(c)(i) hereof.

 

“EBITDA”
means earnings before interest, taxes, depreciation and amortization and shall be calculated in accordance with generally accepted
accounting principles, consistently applied.

 

“Eligible
Accounts” means the accounts receivable of CSI and CCSI that have not been outstanding for more than 90 days as of the
Closing Date.

 

“Eligible
Accounts Payment” has the meaning as set forth in Section 2.6.  

 

“Employment Agreement”
has the meaning set forth in Section 2.3 hereof.

 

“Environmental
Law’ has the meaning set forth in Section 4.26 hereof.

 

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

 

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

 

“Excluded
Assets” has the meaning set forth in Section 2.1(b) hereof.

 

“Excluded
Liabilities” has the meaning set forth in Section 2.1(c) hereof.

 

“Financial
Statements” means the Annual Financial Statements and the Interim Financial Statements.

 

“Governmental
Body” means any foreign, federal, state, provincial or local governmental body or political subdivision thereof, and
any agency or other entity exercising executive, legislative, judicial, regulatory or administrative functions of government, including,
without limitation, all taxing authorities.

 

“Gross Profit”
means, with respect to any particular month or portion hereof, the difference between gross revenue and the cost of services sold
for such month (or portion thereof) reduced by the cumulative losses, if any, measured as the difference between gross revenue
and cost of services sold of all prior month(s) beginning with the month (or portion thereof) which includes the Closing Date to
the extent such losses have not been offset by Gross Profits in succeeding months.

 

“Indebtedness”
has the meaning set forth in Section 4.8 hereof.

 

“Interim Financial
Statements” has the meaning set forth in Section 4.5(a) hereof.

 

“Key Employee”
means an employee of CSI or CCSI who meets any one or more of the following criteria: (i) owns either directly or indirectly at
least five percent of the issued and outstanding stock of NCSI; or (ii) is an officer or member of the Board of Directors of CSI
or CCSI.

 

“Lien”
means any interest, consensual or otherwise, in property securing a monetary obligation owed to, or a claim by, a Person other
than the owner of the Property, whether such interest is based on the common law, statute or contract, including without limitation,
all liens, mortgages, security interests, pledges, deeds of trust, statutory liens for unpaid rentals, options or other charges
and encumbrances.

 

“Material”
or “Materially” (whether or not capitalized) means (a) a contract with a value in excess of Fifty Thousand Dollars
($50,000), or (b) an effect on CSI or CCSI in excess of Fifty Thousand Dollars ($50,000). 

 

    	7

    	 

    

 

“Material
Adverse Change” or “Material Adverse Effect” means any change, effect, event, occurrence or state
of facts that is, or is reasonably likely to be, Materially adverse to the business and/or financial condition, assets, results
of operations or prospects of CSI and CCSI (on a combined basis), other than any change, effect, event, occurrence or state of
facts relating to the economy in general.

 

“Permitted
Lien” has the meaning set forth in Section 4.6(a) hereof

 

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

 

“Purchase
Price” has the meaning set forth in Section 2.2 hereof.

 

“Purchaser
Shares” has the meaning set forth in Section 2.2(b) hereof.

 

“Schedule”
means any Schedule to this Agreement, including without limitation any Disclosure Schedule.

 

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

 

“Shares”
has the meaning set forth in Section 2.1(a) hereof.

 

“Subsidiary”
means, as to any particular parent corporation, any corporation, partnership, trust, joint venture, limited liability company,
association, or other business entity, as to which more than fifty percent (50%) of the outstanding stock or equity interests having
ordinary voting rights or power of which at the time is owned or Controlled by such parent corporation or by one or more Subsidiaries
of such parent corporation.

 

“Transaction
Documents” means this Agreement and the other agreements, documents and instruments contemplated hereby.

 

“Work in
Process” or “WIP” means the right to receive payment from a client of CSI or CCSI for services
provided by CSI or CCSI (whether the services are complete or incomplete) before the Closing Date and which, as of the Closing
Date, has not been included in an invoice sent to the client. Work in Process is separate and distinct from CSI’s and CCSI’s
accounts receivable, for purposes of this Agreement.

 

1.2          Meaning
of “Knowledge.”

 

For the purposes of
this Agreement, any reference to the existence or absence of facts which is indicated to be based on the Knowledge of NCSI means
the actual knowledge of any of the Shareholders or the Key Employees of CSI or CCSI.

 

ARTICLE II

 

Purchase and Sale of Shares

 

2.1          Sale and
Delivery

 

(a)          Purchase
of Shares. On the terms and subject to the conditions set forth in this Agreement, NCSI hereby agrees to sell, assign, transfer,
convey and deliver to the Purchaser, and the Purchaser hereby agrees to purchase, acquire and take assignment and delivery of,
all of the shares of capital stock of CSI held by NCSI, which on the Closing Date shall collectively constitute one hundred percent
(100%) of the issued and outstanding shares of capital stock of CSI (the “Shares”), free and clear of any and all
Liens.

 

(b)          Excluded
Assets. Notwithstanding the purchase of the Shares, the Parties acknowledge and agree that Purchaser shall acquire no interest
in: (i) any bank accounts or investment accounts of CSI or CCSI or cash therein as such exist immediately prior to the Closing,
(ii) any account Receivable not deemed an Eligible Account as of the Closing Date; (iii) the cell phones and cell phone numbers
of any Shareholder or any employee of CSI or CCSI; or (iii) any LinkedIn account or Facebook, Twitter or other social media account
of any Shareholder or any employee of CSI or CCSI; all of which items in clauses (i) through (iii) shall belong to NCSI, the Shareholders
or the employees of CSI or CCSI, as the case may be (the “Excluded Assets”).

 

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(c)          Excluded
Liabilities. Notwithstanding the purchase of the Shares, the Parties acknowledge and agree that CSI shall not retain and the
Purchaser shall not assume the liabilities set forth on Schedule 2.1(c) to be attached to this Agreement at the Closing Date (the
“Excluded Liabilities”).

 

2.2          Purchase
PriceThe aggregate consideration to be paid by the Purchaser to NCSI for the sale and purchase of the Shares (the “Purchase
Price”) shall be the sum of the Cash Portion of the Purchase Price and the Purchaser Shares payable at Closing as set forth
in Sections 2.2(a) and (b) below (the “Closing Payment”), plus (b) the amount of the Earn Out determined and paid as
set forth in Section 2.2(c) below. The Purchase Price shall be payable as follows:

 

(a)          Cash Portion
of the Purchase Price at Closing. At the Closing, the Purchaser shall pay to the NCSI $205,000 plus (i) the Eligible Accounts
Payment, as defined in Section 2.6 and (ii) an amount equal to the prepaid expenses and prepaid rent of the Company as of the Closing
Date in immediately available funds by (i) wire transfer to accounts specified by NCSI, (collectively, the “Cash Portion
of the Purchase Price”).

 

(b)          Purchaser
Shares. At the Closing, the Purchaser shall pay the remaining $204,000 of the Closing Payment by the issuance to NCSI
of One Hundred Thirty Six Thousand (136,000) restricted shares of the Purchaser’s common stock (the “Purchaser Shares”)
valued at a price of $1.50 per share. The Purchaser Shares will be issued free and clear of all Liens, and will have all rights
associated with Purchaser’s common stock issued to or held by the other shareholders of the Purchaser and piggyback registration
rights as provided in a registration rights agreement in form and substance satisfactory to Purchaser and NCSI. The Purchaser Shares
may be transferred by NCSI to Shareholders, subject to the forfeiture provisions as set forth in Section 8.2(c).

 

(c)          Earn Out.

 

(i)           Calculation
and Payment of Earn Out. In addition to the Closing Payment payable at Closing, the Purchaser shall pay to NCSI performance
based compensation (the “Earn Out”) in an amount in cash equal to Twenty percent (20%) of CSI’s and CCSI’s
consolidated Gross Profit, calculated as described herein, from the Closing Date through the end of the sixteenth (16th) quarter
following the Closing Date (the “Earn Out Period”) not to exceed a total of Two Million One Hundred Thousand Dollars
($2,100,000).

 

For purposes of the
Earn Out, “CSI’s Gross Profit” means the consolidated Gross Profit of CSI and CCSI or, if CSI is not operated
as a separate subsidiary of the Purchaser, the Gross Profit of the division or other internal organization of the Purchaser which
includes the business formerly conducted by CSI and any additional gross profit that is generated from client projects that the
Staffing 360 ° CSI division manages, whether from organic growth or business acquisition.

 

The Earn Out shall
be calculated monthly on the last day of each month then ended, and shall be paid by the fifteenth (15th) day of the
immediately succeeding month. If the Closing Date does not occur on the last day of a month, the Gross Profit for the number of
days from the Closing Date to the commencement of the next month shall be included in the Earn Out calculation for such first month.

 

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With each monthly payment
of the Earn Out, if any, the Purchaser shall deliver to NCSI and each Shareholder a statement detailing the calculation of the
payment based on the consolidated Gross Profit of CSI and CCSI and additional Gross Profit that is generated from client projects
that the Staffing 360 ° CSI division manages, whether from organic growth or business acquisition during the applicable month
(the “Earn Out Statement”). During the term of this Earn-Out, NCSI and/or any internal or external audit representative
acting on behalf of NCSI (the “Seller Audit Representatives”) will have the right, and Purchaser will provide
access to NCSI and Seller Audit Representatives, during regular business hours, to audit and inspect the financial records of Purchaser
as may be reasonably necessary to verify the Purchaser’s compliance with the Earn Out payments due hereunder that may relate
to the calculation of Gross Profit in order to verify such calculation, subject to Purchaser’s right to require any Seller
Audit Representative to execute a customary non-disclosure agreement. In the event the Auditor reasonably determines that there
was an underpayment of the Earn Out to NCSI or the Shareholders for any period, the Purchaser will pay such underpayment within
thirty (30) days after the date the Purchaser receives such Auditor’s written report. In the event the Auditor reasonably
determines that there was an overpayment of the Earn Out for any period, the overpayment will be credited toward future payments
of the Earn Out, if any, to be paid by the Purchaser to NCSI under this Agreement, provided, however, that in the event
no further payments of the Earn Out will become due under this Agreement, said overpayment will be paid by NCSI and the Shareholders
to the Purchaser within thirty (30) days after the date NCSI receives such Auditor’s written report. If an underpayment of
the Earn Out is greater than $10,000 as determined by the Auditor to be payable to NCSI or the Shareholders, the reasonable fees
and expenses charged by the Auditor will be paid by the Purchaser; otherwise the fees and expenses charged by such Auditor shall
be paid by NCSI.

 

At any time within
one (1) Business Day prior to a payment owed under this Agreement (whether for the Cash Portion of the Purchase Price, the Purchaser
Shares, an Earn Out payment, or an Adjustment Amount), NCSI may direct the Purchaser in writing to pay such amount(s) directly
to the Shareholders, on a pro rata basis according to their ownership of NSCI (currently 1/3 held by each of them). Purchaser is
entitled to rely on such written instructions if signed by all three current Shareholders.

 

(d)          Adjustment to
Earn Out. The Purchaser acknowledges and agrees that the following events (“Adjustment Events”) may have a negative
impact on CSI and CCSI’s consolidated Gross Profit. The Purchaser further acknowledges that the actual damages likely to
result from an Adjustment Event are difficult to estimate on the date of this Agreement and would be difficult for NCSI or the
Shareholders to prove. Therefore, the Purchaser acknowledges and agrees that, upon the occurrence of an Adjustment Event, the Purchaser
shall pay NCSI, an amount equal to, in the case of Adjustment Event listed in (i), (ii), (iii) or (iv) below, $1.4 million less
the amount of any Earn Out previously paid to NCSI or the Shareholders; and in the case of all other Adjustment Events, $2.1 million
less the amount of any Earn Out previously paid to NCSI or the Shareholders (the “Adjustment Amount”), provided that
the Shareholders of NCSI has provided written notice to the Purchaser alleging that an Adjustment Event set forth in (v), (vi)
or (vii) has occurred. Additionally, the Purchaser agrees to pay any reasonable legal fees of NCSI and the Shareholders in connection
with the collection of any Earn Out. The Parties intend that the Purchaser’s payment of the Adjustment Amount would serve
to compensate NCSI and the Shareholders for any Adjustment Event, and they do not intend for it to serve as a penalty to the Purchaser
for any such Adjustment Event. The payment of any Adjustment Amount shall not, however, limit the ability of NCSI or the Shareholders
to pursue any other Indemnity claims or any other remedies under this Agreement or the law. Any Adjustment Amount shall be applied
toward the final payment amount due under the Earn Out, and the regular schedule of Earn Out payments shall continue as if the
Adjustment Amount had not been paid, until such time as the full Earn Out obligation (including Adjustment Amounts paid) has been
satisfied.

 

 

For purposes
of this Section, the occurrence of any of the following events constitutes an “Adjustment Event”:

 

		i.	The failure of the Purchaser to pay any Earn Out amount due, and such failure is not cured within
thirty (30) days after the due date;

 

		ii.	The failure of the Purchaser to perform, keep or observe any term, provision, condition, covenant,
warranty or representation contained in this Agreement;

 

		iii.	Any warranty, representation or statement made or furnished to the Shareholders by or on behalf
of the Purchaser in connection with the transactions contemplated under this Agreement proves at any time to be not true and correct
in any material respect.

 

		iv.	The occurrence of any material breach by Purchaser under the Dealy, Gesualdi or Cooper Employment
Agreements;

 

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		v.	the Purchaser, or CSI or CCSI for so long as CSI or CCSI are operated as a separate companies from
the Purchaser, shall (a) apply for or consent to the appointment of a receiver, conservator, trustee or liquidator of all or a
substantial part of any of its assets; (b) be unable, or admit in writing its inability, to pay its debts as they mature; (c) file
or permit the filing of any petition, case, arrangement, reorganization, or the like under any insolvency or bankruptcy law, or
the adjudication of it as a bankrupt, or the making of an assignment for the benefit of creditors or the consenting to any form
of arrangement for the satisfaction, settlement or delay of debt or the appointment of a receiver for all or any part of its properties;
or (d) take any action for the purpose of effecting any of the foregoing;

 

		vi.	An order, judgment or decree shall be entered, or a case shall be commenced, against the Purchaser,
CSI or CCSI without the application, approval or consent of the Purchaser, CSI or CCSI, as applicable, by or in any court of competent
jurisdiction, approving a petition or permitting the commencement of a case seeking reorganization or liquidation of the Purchaser,
CSI or CCSI, or appointing a receiver, trustee, conservator or liquidator of the Purchaser, CSI or CCSI, or of all or a substantial
part of their respective assets and the Purchaser, CSI or CCSI, as applicable, by any act, indicates its approval thereof, consent
thereto, or acquiescence therein, or such order, judgment, decree or case shall continue unstayed and in effect for any period
of thirty (30) consecutive days;

 

		vii.	The dissolution, termination of existence of the Purchaser, CSI or CCSI

 

2.3          Employment
Agreement. As of the Closing, the Purchaser, CSI, and each of Margaret Gesualdi, Charlie Cooper and Simon Dealy will each enter
into an employment agreement, in form attached hereto as Exhibit XX (the “Employment Agreement(s)”).

 

2.4          Closing.
The purchase and sale of the Shares and the consummation of the other transactions contemplated by this Agreement (the “Closing”)
shall occur on such date, hour and place as shall be agreed upon in writing by NCSI and the Purchaser, but not later than forty
five (45) days from the date of the completion of the audit of the Financial Statements of CSI and CCSI by the CPA firm of RBSM,
LLP (the “Audit”) (unless said date is otherwise mutually extended in writing by the Parties), upon fulfillment of
all (or waiver in writing of certain) conditions precedent to the Closing, said date being generally referred to as the “Closing
Date.” The parties will agree on the Closing Date at least five (5) business days in advance, in order for Seller to provide
required notice of the Closing Date to interested third parties.

 

2.5          Other Payments
at Closing. If necessary, at the Closing the Parties shall make such payments to each other as the Parties may agree prior
to the Closing in order to address certain issues, including without limitation, balance sheet items, and such issues as Excluded
Liabilities, reimbursement of prepaid expenses, and timing of collection of accounts receivable.

 

2.6          Accounts
Receivable and WIP Reimbursement. In connection with the accounts receivable and WIP of CSI and CCIS that Purchaser acquires
pursuant to this Agreement, Purchaser and NCSI agree as follows:

 

(a)          Eligible Accounts.
At the Closing, Purchaser shall pay the NCSI, in cash, an amount equal to eighty percent (80%) of the value of the Eligible Accounts
(the “Eligible Accounts Payment”). This amount shall be included in the definition of “Cash Consideration.”
Pursuant to Section 2.6(e) below, NCSI may be entitled to an additional payment related to the remainder of the Eligible Accounts.

 

(b)          Other Accounts
Receivable. Purchaser shall pay NCSI, in cash, an amount equal to 100% of any collections of CSI’s or CCSI’s accounts
receivable billed prior to Closing acquired by Purchaser, in excess of the amount paid at the Closing for the Eligible Accounts
pursuant to Section 2.6(a) and for related financing costs pursuant to Section 2.6(d). Such payment, if any, shall be made in accordance
with Section 2.6(e) below.

 

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(c)          Work in Process.
Within five (5) Business Days after the Closing Date, NCSI, CSI and CCSI shall provide Purchaser with a report and supporting documentation
that detail the Work in Process of both CSI and CCSI as of the Closing. Purchaser shall cause CSI and CCSI to include this Work
in Process in CSI’s and CCSI’s next monthly invoices sent to clients. At the time that CSI or CCSI send the invoices
to clients that include acquired Work in Process, Purchaser shall pay NCSI, in cash, an amount equal to eighty percent (80%) of
the amount of the Work in Process as invoiced.

 

(d)          Cost of Financing.
Purchaser’s financing cost for the Eligible Accounts Payment required by Section 2.6(a) above shall be paid by NCSI. The
cost shall be the direct charges charged to Purchaser by Purchaser’s bank for its working capital line, as described in Schedule
2.6(d) attached hereto. This cost shall be paid or deducted by Purchaser from any payments owed to NCSI, as the case may be, pursuant
to Section 2.6(e) below.

 

(e)          Final Settlement.
On the first Business Day that is 120 days after the Closing Date, the parties shall determine the total amount collected by Purchaser
from acquired accounts receivable of CSI and CCSI, including both Eligible Accounts and accounts receivable that did not so qualify.
If the total collected by Purchaser during the 120-day period exceeds the Eligible Accounts Payment plus the financing cost calculated
pursuant to Section 2.6(d) above, then Purchaser shall pay NCSI such excess within ten (10) days. If the total collected by Purchaser
during the 120-day period is less than the Eligible Accounts Payment and Work in Process plus the financing cost calculated pursuant
to Section 2.6(d) above, then Purchaser shall deduct such shortfall from the next Earn-Out payment(s) owed to NCSI until the shortfall
is fully repaid. In any event, any uncollected accounts receivable as of the 120th day after the Closing Date shall
be assigned to NCSI, after which NCSI shall retain any amounts collected and Purchaser will forward to NCSI any amounts received
with respect to the re-assigned accounts.

 

2.7          Deferred
Tax Asset. Within 90 days after December 31, 2013, the Purchaser shall reasonably finalize the dollar value of Deferred Tax
Assets as of the Closing Date that have accrued or will benefit in the future to CSI or the Purchaser as a result of the Purchaser’s
acquisition of CSI (the “Deferred Tax Benefit”) and without regard as to whether or not such Deferred Tax Asset has
been or can be used in the current tax year or is deferred to a future tax year. Fifty Percent (50%) of the Deferred Tax Benefit
shall be paid in cash to NCSI on the next scheduled Earn Out payment date following the completion of such determination.

 

2.8          Forwarding
of Payments. The Purchaser will immediately deliver to NCSI any amounts received from clients or other third parties that
are due to NCSI, without offset of any kind, and NCSI will immediately deliver to Purchaser any amounts received from clients or
other third parties that are due to the Purchaser, without offset of any kind.

 

ARTICLE III

 

Representations and Warranties

Concerning NCSI

 

NCSI and the Shareholders
hereby, jointly and severally, represent and warrant to the Purchaser, that:

 

3.1          Organization
and Good Standing. NCSI has been duly organized and is validly existing as a corporation in good standing under the laws of
the state of Delaware with full power and authority to own or lease its properties and to conduct its business as currently conducted.
NCSI is duly qualified, licensed or admitted to do business as a foreign corporation and is in good standing in every jurisdiction
in which the operation of its business or the ownership of its assets requires it to be so qualified, licensed, admitted or in
good standing. Schedule 3.1 lists all of the jurisdictions in which NCSI is qualified to do business as a foreign corporation.

 

3.2          Ownership
of Shares and CCSI Capital Stock. NCSI owns of record and beneficially the Shares (which constitute 100% of the issued
and outstanding shares of capital stock CSI), free and clear of any and all Liens. NCSI has good and valid title to the
Shares, free and clear of all Liens. CSI owns of record and beneficially 100% of the issued and outstanding shares of capital
stock of CCSI (the “CCSI Shares”), free and clear of any and all Liens. CSI has good and valid title to all of
the CCSI Shares, free and clear of any and all Liens. Upon delivery of the Shares to be sold by NCSI hereunder and payment of
the Closing Payment at the Closing pursuant to this Agreement, the Purchaser will receive good and valid title to the
Shares, free and clear of all Liens and other encumbrances.

 

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3.3          Consents;
Valid Title. All consents, approvals and waivers necessary for the execution and delivery by NCSI of this Agreement and the
other Transaction Documents to which NCSI is a party, the sale and delivery of the Shares to be sold by NCSI hereunder and the
consummation of the transactions contemplated hereby and thereby have been obtained or will be obtained on or prior to the Closing
Date, and NCSI has, and immediately prior to the Closing will have, full right, power, authority and capacity to enter into and
perform fully NCSI’s obligations under this Agreement and the other Transaction Documents to which NCSI is a party, including
without limitation to sell, assign, transfer and deliver the Shares pursuant to this Agreement.

 

3.4          Authorization.
NCSI has all requisite corporate power and authority to execute, deliver and perform this Agreement and the other Transaction Documents
to which it is a party. All corporate action required to be taken by NCSI’s Board of Directors and shareholders in order
to authorize NCSI to enter into and perform this Agreement and the other Transaction Documents to which it is a party has been
taken or will have been taken prior to the Closing. This Agreement and the other Transaction Documents to which NCSI is a party,
when executed and delivered by NCSI, shall constitute the valid and legally binding obligation of NCSI, enforceable against NCSI
in accordance with its terms except: (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent
conveyance, or other laws of general application relating to or affecting the enforcement of creditors’ rights generally;
or (b) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies.

 

3.5          No Conflicts.
The execution, delivery and performance of this Agreement and the other Transaction Documents by NCSI and the consummation of the
transactions contemplated hereby and thereby by NCSI will not conflict with, require consent or result in a breach or violation
of any term or provision of, or constitute a default under, any indenture, mortgage, deed of trust, loan agreement or other agreement
or instrument to which NCSI is a party or by which any of NCSI’s assets are bound.

 

3.6          Access to
Information. NCSI is a sophisticated investor with respect to the acquisition of the Purchaser Shares, has adequate information
concerning the Purchaser Shares and the business and financial condition of the Purchaser and its assets and has been given the
information necessary to make an informed decision regarding this Agreement and the transactions contemplated hereby and has independently
made its analysis and decision to enter into and consummate this Agreement based upon such information NCSI deems appropriate.

 

3.7          Investment.
NCSI is acquiring the Purchaser Shares in a private placement pursuant to Section 4(2) of the Securities Act. NCSI understands
that the Purchaser Shares are “restricted securities” as defined in Rule 144 under the Securities Act and have not
been registered under the Securities Act and NCSI is acquiring the Purchaser Shares in accordance with an exemption from registration
under the Securities Act. NCSI acknowledges that it will not reoffer, resell, pledge or otherwise transfer any Purchaser Shares
except pursuant to an applicable exemption under the Securities Act or an effective registration statement, in each case in accordance
with any applicable securities laws of any state of the United States or any other relevant jurisdiction.

 

ARTICLE IIIA

 

Representations and Warranties

Concerning the Shareholders

 

Each Shareholder, severally
as to such Shareholder only, and not jointly and severally, represents and warrants to the Purchaser, that:

 

3A.1      Consents.
All consents, approvals and waivers necessary for the execution and delivery by such Shareholder of this Agreement and the other
Transaction Documents to which such Shareholder is a party and the consummation of the transactions contemplated hereby and thereby
have been obtained or will be obtained on or prior to the Closing Date, and such Shareholder has, and immediately prior to the
Closing will have the capacity to enter into and perform fully his or her obligations under this Agreement and the other Transaction
Documents.

 

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3A.2      Authorization.
Such Shareholder has all requisite capacity to execute, deliver and perform this Agreement and the other Transaction Documents
to which he or she is a party. This Agreement and other Transaction Documents to which such Shareholder is a party, when executed
and delivered by such Shareholder, shall constitute the valid and legally binding obligation of such Shareholder, enforceable against
such Shareholder in accordance with its terms except: (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium,
fraudulent conveyance, or other laws of general application relating to or affecting the enforcement of creditors’ rights
generally; or (b) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable
remedies.

 

3A.3      No Conflicts.
The execution, delivery and performance of this Agreement and the other Transaction Documents by such Shareholder and the consummation
of the transactions contemplated hereby and thereby by such Shareholder will not conflict with, require consent or result in a
breach or violation of any term or provision of, or constitute a default under, any indenture, mortgage, deed of trust, loan agreement
or other agreement or instrument to which such Shareholder is a party or by which any of such Shareholder’s assets are bound.

 

ARTICLE IV

 

Representations and Warranties

Concerning CSI

 

As a material inducement
to the Purchaser to enter into and perform its obligations under this Agreement, the NCSI, CSI, CCSI and the Shareholders represent
and warrant to the Purchaser as of the date of this Agreement (subject to the Seller Disclosure Schedules) that each of the representations,
warranties and statements contained in the following sections of this Article IV (a) is true and correct as of the date hereof
and (b) will be true and correct as of the Closing Date (provided that NCSI, CSI, CCSI or the Shareholders may, up to two (2) business
days before the scheduled Closing Date, deliver to the Purchaser amendments to the Seller Disclosure Schedules as required to make
the following representations and warranties true, complete and not misleading as of the Closing Date, and if such amendments disclose
a Material Adverse Change, the Purchaser’s conditions to closing under Section 7.1, in particular Section 7.1(e), shall not
be satisfied):

 

4.1          Organization
and Good Standing. CSI has been duly organized and is validly existing as a corporation in good standing under the laws of
the state of Florida with full power and authority to own or lease its properties and to conduct its business as currently conducted.
CSI is duly qualified, licensed or admitted to do business as a foreign corporation and is in good standing in every jurisdiction
in which the operation of its business or the ownership of its assets requires it to be so qualified, licensed, admitted or in
good standing, except where failure to so qualify would not have a material adverse effect on CSI. Schedule 4.1(a) lists
all of the jurisdictions in which CSI is qualified to do business as a foreign corporation. CCSI has been duly organized and is
validly existing as a corporation in good standing under the laws of the province of British Columbia, Canada with full power and
authority to own or lease its properties and to conduct its business as currently conducted. CCSI is duly qualified, licensed or
admitted to do business as a foreign corporation and is in good standing in every jurisdiction in which the operation of its business
or the ownership of its assets requires it to be so qualified, licensed, admitted or in good standing, except where failure to
so qualify would not have a material adverse effect on CCSI. Schedule 4.1(b) lists all of the jurisdictions in which CCSI
is qualified to do business as a foreign corporation.

 

4.2          Subsidiaries.
CCSI is the only Subsidiary of CSI. CCSI has no Subsidiaries.

 

4.3          No Conflicts.
Except as set forth on Schedule 4.3, the execution, delivery and performance of this Agreement and the consummation of the
transactions contemplated hereby will not (i) conflict with or result in a breach or violation of any term or provision of, or
constitute a default under, the charter or bylaws of CSI or CCSI, or any indenture, mortgage, deed of trust, loan agreement, or
other agreement or instrument to which CSI or CCSI is a party or by which CSI or CCSI is bound or to which any of the property
or assets of CSI or CCSI is subject, or (ii) violate or conflict with any law or order to which CSI or CCSI is subject.

 

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4.4          Capitalization.
The authorized, issued and outstanding capital stock of CSI is set forth in Schedule 4.4(a). At the Closing, the Shares
shall constitute all of the issued and outstanding equity securities of CSI. The Shares have been duly authorized and validly issued
and are outstanding, fully paid and nonassessable. The Company holds no treasury stock. There are no outstanding options, warrants,
rights (including conversion or preemptive rights and rights of first refusal or similar rights) or agreements, orally or in writing,
to purchase or acquire from CSI any shares of any class of capital stock, or any securities or other instruments convertible into
or exchangeable for shares of capital stock of CSI, and no commitments to issue any such securities or instruments. The authorized,
issued and outstanding capital stock of CCSI is set forth in Schedule 4.4(b). At the Closing, the CCSI Shares shall constitute
all of the issued and outstanding equity securities of CCSI. The CCSI Shares have been duly authorized and validly issued and are
outstanding, fully paid and nonassessable. CCSI holds no treasury stock. There are no outstanding options, warrants, rights (including
conversion or preemptive rights and rights of first refusal or similar rights) or agreements, orally or in writing, to purchase
or acquire from CCSI any shares of any class of capital stock, or any securities or other instruments convertible into or exchangeable
for shares of capital stock of CCSI, and no commitments to issue any such securities or instruments.

 

4.5          Financial
Statements.

 

(a)          Each of CSI
and CCSI maintains its financial information and creates its financial statements with the use of “QuickBooks” and
Solomon software programs. NCSI has delivered to the Purchaser true and complete copies of (i) balance sheet, the statements of
assets, liabilities and stockholders’ equity of CSI and CCSI, on a combined basis, as of December 31, 2012, and 2011, and
the related statements of revenue and expenses for the twelve months then ended (the “Annual Financial Statements”);
and (ii) the balance sheet (“Latest Balance Sheet”), statement of assets, liabilities and stockholders’ equity
of CSI and CCSI, on a combined basis, for the year-to-date ending May 31, 2013, and the related statements of revenue and expenses
for the period then ended (the “Interim Financial Statements” and, together with the Annual Financial Statements, the
“Financial Statements”).

 

(b)          The Financial
Statements (including in all cases the notes thereto, if any) are accurate and complete in all material respects, have been prepared
from and are consistent with the books and records of CSI and CCSI (which books and records are correct and complete in all material
respects) and present fairly, in all material respects, the financial position of CSI and CCSI as of the dates indicated therein
and the results of operations and changes in financial position of CSI and CCSI for the periods specified therein and, to the Knowledge
of NCSI, the Financial Statements have been prepared in accordance with accounting principles applied on a consistent basis during
the periods covered thereby. The Purchaser will be afforded the opportunity to have the CPA firm of RBSM, LLP conduct the Audit
of the Financial Statements.

 

4.6          Title to
Property: Encumbrances.

 

(a)          Each of CSI
and CCSI has, and immediately prior to the Closing each of CSI and CCSI will have, good, clear and marketable title to all real
property and good, clear and valid title to all personal property reflected on the Interim Financial Statements and all real property
and personal property acquired by CSI and CCSI since June 30, 2013, in each case free and clear of all Liens except (i) as set
forth on Schedule 4.6(a) hereto and (ii) for Permitted Liens. The term “Permitted Liens,” as used in this Agreement,
shall mean (i) statutory liens for taxes or assessments not at the time due, (ii) liens in respect of pledges or deposits under
workers’ compensation laws or similar legislation, (iii) carriers’, warehousemen’s, mechanics’, laborers’
and material men’s liens if the obligations secured by such liens are not then delinquent, (iv) encumbrances in the nature
of zoning restrictions, easements, rights or restrictions of record on the use of real property if the same do not detract from
the value of the property encumbered thereby or impair the use of such property in the business of CSI or CCSI, as applicable.

 

(b)          All real property,
personal property leases and licenses pursuant to which CSI or CCSI leases or licenses from others real or personal property are
valid, subsisting and effective in accordance with their respective terms, and there is not, under any real property lease, license
or personal property lease, any existing default or event of default of CSI, CCSI or any other party thereto. Schedule 4.6(b)
hereto contains a list of all real property leases, licenses and personal property leases under which CSI and/or CCSI is the lessee
or licensee. True and complete copies of all real property leases, licenses and personal property leases listed on said Schedule
4.6(b) hereto have been delivered to Purchaser heretofore. Except as set forth on said Schedule 4.6(b), no such lease
or license will require the consent of the lessor or licensor to or as a result of the consummation of the transactions contemplated
by this Agreement. CSI and CCSI do not own any real property.

 

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4.7          Insurance.
Schedule 4.7 hereto contains a true and complete list of all insurance policies currently in force that cover or purport
to cover risks or losses to or associated with CSI’s and CCSI’s business, operations, premises, properties, assets,
employees, agents and directors and all such policies are in full force and effect. CSI and CCSI have not received notice advising
them that they will be unable to renew their existing insurance coverage as and when the same shall expire upon terms at least
as favorable as those currently in effect, other than possible increases in premiums. Except as disclosed in Schedule 4.7, neither
CSI nor CCSI has received any notice that any insurer under any policy referred to in this Section 4.7 is denying liability with
respect to a claim thereunder or defending under a reservation of rights clause.

 

4.8          Indebtedness.
CSI has no liability or obligation for Indebtedness except as disclosed in Schedule 4.8(a). CCSI has no liability or obligation
for Indebtedness except as disclosed in Schedule 4.8(b). The term “Indebtedness”, as used in this Agreement,
shall mean: (a) any liability of CSI or CCSI created or assumed by CSI or CCSI, as applicable: (i) for borrowed money; (ii) 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
or to be consumed in the ordinary course of CSI’s or CCSI’s business), including securities and debt instruments; (iii)
in respect of letters of credit issued for CSI’s or CCSI’s account and “swaps” of interest and currency
exchange rates (and other interest and currency exchange rate hedging agreements) to which CSI or CCSI is a party; or (iv) for
the payment of money as lessee under leases that are consistent with the past practice of CSI or CCSI described in the Financial
Statements recorded as capital leases for financial reporting purposes; and (b) any amendment, renewal, extension, revision or
refunding of any such liability or obligation; provided, however, that Indebtedness shall not include any liability for: (1) compensation
of Company or CCSI employees in the ordinary course of business; (2) interest that has been accrued and is not yet due and payable;
(3) inventory or similar property acquired and consumed or to be consumed in the ordinary course of CSI’s or CCSI’s
business; (4) services in the ordinary course of business; (5) rent or other amounts payable under real or personal property leases
that have been as disclosed elsewhere herein, other than capital leases as described in subsection (a)(iv) above; (6) amounts payable
on credit cards to the extent used to acquire inventory or similar property; and (7) utility bills, property taxes and other accounts
payable.

 

4.9          Litigation.
Except as set forth on Schedule 4.9 hereto, there is no claim, legal action, suit, arbitration, or mediation proceeding
or other legal, administrative or governmental investigation, inquiry or proceeding pending or, to the Knowledge of NCSI threatened,
against or affecting CSI, CCSI or any of their respective properties, assets or business or any director, officer, employee or
agent (in his, her or its capacity as such) of CSI, CCSI or NCSI or any Shareholder or to which any assets of CSI or CCSI are subject,
or to which any CSI capital stock or CCSI capital stock is subject or relating to the transactions contemplated by this Agreement
or the other Transaction Documents or the consummation hereof or thereof. Except as set forth on Schedule 4.9 hereto, neither
CSI nor CCSI is subject to or bound by any currently existing judgment, order, writ, injunction or decree. CSI and CCSI are not
in default with respect to any order, writ, judgment, injunction, decree, determination or award of any court or of any governmental
agency or instrumentality, or of any decision of any arbitrator, mediator or other dispute resolution proceeding.

 

4.10        Income and
Other Taxes. All foreign, federal, state, provincial and local tax returns required to be filed with any Governmental Body
to date in connection with the operations of CSI and CCSI have been timely filed, or extensions for the filing of any tax returns
have been made, and all taxes required to be paid, and required to be deposited to date in connection with their operations and
ownership and use of assets have been timely paid and deposited. All of the information that CSI and CCSI use for their income
tax returns for the period of January 1, 2013 through the Closing Date is true and correct in all material respects and reasonably
will enable CSI’s and CCSI’s tax preparers to prepare such returns consistently with the income tax returns of prior
periods. No audit, examination or similar proceeding is pending or, to the Knowledge of NCSI, threatened in regard to any taxes
due from or with respect to CSI or CCSI or any tax return filed by or with respect to CSI or CCSI.

 

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4.11        Employee
Benefit Matters.

 

(a)          Schedule
4.11(a) hereto contains a true and complete list of each employee welfare benefit plan (as defined in Section 3(l) of ERISA
or any similar Canadian statute (an “Employee Welfare Plan”)) currently maintained by CSI or CCSI or to which CSI or
CCSI contributes or is required to contribute. Schedule 4.11(b) hereto contains a true and complete list of each employee
pension benefit plan (as defined in Section 3(2) of ERISA or any similar Canadian statute (an “Employee Pension Plan”))
currently maintained by CSI or CCSI or to which CSI or CCSI contributes or is required to contribute. The Employee Welfare Plans
and the Employee Pension Plans are sometimes collectively referred to herein as the “Plans.”

 

(b)          With respect
to each current Plan, the Purchaser has been provided heretofore true and complete copies of all Plan documents and all documents
or instruments establishing or constituting any related trust, annuity contract or other funding instrument, and any amendments
thereto.

 

(c)          With respect
to each Plan, to the Knowledge of CSI or CCSI, all premiums, and accruals for all periods ending prior to or as of the Closing
Date shall have been made or provided for and there is no material unfunded liability which is not reflected on the Latest Balance
Sheet. To the Knowledge of NCSI, all Plans are fully insured with no claim accrual liabilities except as set forth in Schedule
4.11.

 

(d)          To the Knowledge
of NCSI, each Plan has been maintained, funded and administered in all material respects in accordance with its terms and in compliance
with all applicable laws, including ERISA and the Code and similar Canadian statutes. With respect to each Plan, to the Knowledge
of NCSI (i) there have been no nonexempt prohibited transactions, and (ii) no breach of fiduciary duty (as determined under ERISA
or any similar Canadian statute) or any other failure to act or comply in connection with the administration or investment of the
assets of such Plan. No action with respect to any Plan (other than routine claims for benefits and appeals of denials of such
claims) is pending or to the Knowledge of NCSI threatened.

 

(e)          To the Knowledge
of NCSI, the transfer of the Shares contemplated by this Agreement will not cause the acceleration of vesting in, or payment of,
any compensation or benefits under any Plan and will not otherwise accelerate or increase any current or potential liability or
obligation under any Plan.

 

4.12        Consents.
Except as set forth on Schedule 4.12, no consents, authorizations, order or approvals of or registration, qualification,
designation, declaration or filing with any court, governmental body or agency or instrumentality thereof or any arbitrator or
any other Person (“Consents”) is required for the execution and delivery of this Agreement and the other Transaction
Documents by NCSI and the consummation of the transactions contemplated hereby and thereby.

 

4.13        Material
Contracts; No Defaults.

 

(a)          Schedule
4.13(a) hereto contains a true and complete list as of the date hereof of each agreement of CSI and CCSI with their customers
and clients (“Customer Agreements”), and true and complete copies of the same have been delivered to Purchaser heretofore.
All Customer Agreements have been entered into in the ordinary course of business of CSI and CCSI and reflect terms customarily
offered by CSI and CCSI.

 

(b)          Schedule
4.13(b)(i) hereto contains a true and complete list as of the date hereof of each agreement of CSI or CCSI with its consultants
and independent contractors (“Consultant Agreements”), and true and complete copies of the same have been delivered
to Purchaser heretofore. All Consultant Agreements have been entered into in the ordinary course of business of CSI and CCSI, and
reflect terms customarily offered by CSI and CCSI. Schedule 4.13(b)(ii) hereto contains a true and complete list as of the
date hereof of each agreement of CSI or CCSI with its licensees and partners (“Licensee Agreements”), and true and
complete copies of the same have been delivered to Purchaser heretofore. All Licensee Agreements have been entered into in the
ordinary course of business of CSI and CCSI.

 

(c)          Schedule
4.13(c) hereto contains a true and complete list of all noncompetition and nondisclosure agreements and nondisclosure covenants
under which either of CSI, CCSI, or any Shareholder or Key Employee is or are obligated, and true and complete copies of the same
have been delivered to Purchaser heretofore (excluding those entered into with the Purchaser). Except as described in Schedule
4.13(c) hereto, CSI and CCSI are not restricted by any agreement from carrying on their respective business or engaging in
any other activity anywhere in the world, and no Shareholder or Key Employee is a party to or otherwise bound or affected by any
agreement, covenant or other arrangement or understanding that would restrict or impair his or her ability to perform diligently
his or her duties to CSI and CCSI.

 

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(d)          Schedule
4.13(d) hereto contains a true and complete list and description of all contracts, agreements, employment agreements, understandings
arrangements and commitments, written or oral, of CSI and CCSI with any Shareholder, Key Employee or any officer or director of
CSI or CCSI, including without limitation severance agreements (other than those contracts disclosed in Schedule 4.13(c)
hereto); in each case, a true and complete copy of such contract, agreement, understanding, arrangement or commitment has been
delivered to Purchaser heretofore.

 

(e)          Schedule
4.13(e) hereto contains a true and complete list and description of all other material contracts, agreements, understandings,
arrangements and commitments, written or oral, of CSI and CCSI by which they or their respective properties, rights or assets are
bound that are not otherwise disclosed in this Agreement or the Schedules 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 Purchaser heretofore.

 

(f)           Except as described
in Schedule 4.13(f) hereto, no event or condition has occurred or is alleged to have occurred that constitutes or, with
notice or the passage of time, or both, would constitute a default or a basis of force majeure or other claim of
excusable delay or nonperformance by CSI or CCSI, or any other person or entity, under any contract, agreement, arrangement, commitment
or other understanding, written or oral, described above in this Section 4.13, which default, or the delay or nonperformance of
which, individually or in the aggregate, would have a Material Adverse Effect. Except as set forth on Schedule 4.13(f) hereto,
to NCSI’s Knowledge, no person or entity with whom CSI or CCSI has such a contract, agreement, arrangement, commitment or
other understanding is in default thereunder or has failed to perform fully thereunder by reason of force majeure or other claim
of excusable delay or nonperformance thereunder, which default, or the delay or nonperformance of which, individually or in the
aggregate, would have a Material Adverse Effect.

 

(g)          Schedule
4.13(g) lists any agreement or indenture relating to the borrowing of money or to the mortgaging, pledging, guaranteeing or
otherwise placing a Lien on any asset or group of assets of CSI or CCSI; any partnership, joint venture, joint development, joint
design, collaboration, joint marketing, equity holders’ or other similar contract with any Person; any obligation, or guarantee
of any obligation, for borrowed money or otherwise; and agreement with respect to the lending or investing of its funds; and any
licensing of intellectual property.

 

4.14        Employees
and Labor Matters. Neither CSI nor CCSI has been, or is now, a party to any collective bargaining agreement or other labor
contract. To the Knowledge of NCSI, CSI and CCSI are in compliance in all material respects with all laws respecting employment
and employment practices, terms and conditions of employment, and wages and hours. Schedule 4.14 hereto sets forth a list
of all employees and independent contractors who have employment contracts or loans or other agreements with CSI or CCSI, true,
complete copies of which have been delivered to the Purchaser heretofore. CSI and CCSI have provided to the Purchaser a true, correct
and complete copy of all of their respective Employee Manuals and Handbooks and list of benefits. No Key Employee, or group of
employees of CSI or CCSI has notified CSI or CCSI of such Person’s or group’s intent to terminate employment with CSI
or CCSI, and there are no pending or, to the Knowledge of NCSI, threatened Material disputes, disagreements or controversies between
CSI or CCSI, on the one hand, and any employee or consultant of CSI or CCSI on the other hand. Any notice required under any law
applicable to CSI or CCSI in order to consummate the transactions contemplated by this Agreement has been or, prior to Closing,
will be given.

 

4.15        Principal
Customers and Suppliers.

 

(a)          Schedule
4.15(a) states a total of all sales of CSI and CCSI for the period from May 31, 2012 through May 31, 2013 to each of the customers
that constitute the ten (10) largest customers of CSI and CCSI, on a combined basis, in terms of CSI’s and CCSI’s sales
of services during such period, and lists each of such ten (10) largest customers. Except as disclosed on Schedule 4.15(A) none
of such customers has given notice of its intention to terminate their business with CSI or CCSI or take any other action, for
any reason, which would adversely affect CSI’s or CCSI’s business or relationship with such customer.

 

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(b)          Except as shown
on Schedule 4.15(b), none of the ten (10) largest suppliers of CSI and CCSI, on a combined basis, as listed on Schedule
4.15(b) in terms of CSI’s and CCSI’s purchase of goods or services during the five months ended on May 31, 2013
has terminated its relationship with CSI or CCSI, or imposed Materially more adverse terms on its relationship with CSI or CCSI,
on a combined basis, or indicated (for any reason) its intention to terminate such relationship or take such adverse action with
respect thereto.

 

4.16        Books and
Records. CSI’s minute book and other books and records of CSI are located at the residence of the Corporate Secretary,
at 101 Colorado St. Apt 2904, Austin, TX 78701 or at CSI’s principal offices at 500 West Cummings Park, Ste. 2550, Woburn,
MA 01801. The books of account and other financial and corporate records of CSI are in all material respects complete and correct
and are accurately reflected in the Financial Statements. The minute book(s) of CSI, as previously made available to the Purchaser
and its counsel, contain materially accurate records of all meetings and accurately reflect all other corporate action of the stockholders
and directors of CSI through the date hereof. The minute books of CSI will be delivered to the Purchaser at Closing. CCSI’s
minute book and other books and records of CCSI are located at the residence of the Corporate Secretary, at 101 Colorado St. Apt
2904, Austin, TX 78701. The books of account and other financial and corporate records of CCSI are in all material respects complete
and correct and are accurately reflected in the Financial Statements. The minute book(s) of CCSI, as previously made available
to the Purchaser and its counsel, contain materially accurate records of all meetings and accurately reflect all other corporate
action of the stockholders and directors of CCSI through the date hereof. The minute books of CCSI will be delivered to the Purchaser
at Closing.

 

4.17        Intellectual
Property. CSI owns or possesses sufficient legal rights to all patents, trademarks, service marks, trade names, copyrights,
trade secrets, licenses, information and other proprietary rights and processes necessary for its business as now conducted and,
to NCSI’s Knowledge, as presently proposed to be conducted (the “Intellectual Property”), without any Known infringement
of the rights of others. CCSI owns or possesses sufficient legal rights to all the Intellectual Property necessary for its business
as now conducted and, to NCSI’s Knowledge, as presently proposed to be conducted, without any Known infringement of the rights
of others.

 

4.18        Authorization.
CSI has all requisite corporate power and authority to execute, deliver and perform the Transaction Documents to which it is a
party. All corporate action required to be taken by CSI’s Board of Directors in order to authorize CSI to enter into and
perform the Transaction Documents to which it is a party has been taken or will have been taken prior to the Closing. The Transaction
Documents to which CSI is a party, when executed and delivered by CSI, shall constitute the valid and legally binding obligation
of CSI, enforceable against CSI in accordance with its terms except: (a) as limited by applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance, or other laws of general application relating to or affecting the enforcement of creditors’
rights generally; or (b) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable
remedies.

 

4.19        Absence
of Changes. Except as set forth on Schedule 4.19, since December 31, 2012, there has not occurred any event, circumstance
or occurrence that could reasonably be expected to have a Material Adverse Effect on CSI and CCSI, on a combined basis.

 

4.20        Absence
of Undisclosed Liabilities. Except as set forth on Schedule 4.20, CSI and CCSI have no liability and there is no basis
for any claim with respect to any liability that has, or could reasonably be expected to have, a Material Adverse Effect on CSI
and CCSI, on a combined basis, except in either case for (a) liabilities set forth on the Latest Balance Sheet, and (b) liabilities
which have arisen since the date of the Latest Balance Sheet in the ordinary course of business.

 

4.21        Legal Compliance.

 

(a)          Compliance
with Laws. Except as set forth on Schedule 4.21, neither CSI nor CCSI has received any communication, written or otherwise,
during the past three (3) years from a Governmental Body that alleges that CSI or CCSI is not in compliance with any law applicable
to the conduct of its business, the noncompliance with which could reasonably be expected to have a Material Adverse Effect on
CSI and CCSI, on a combined basis. To the Knowledge of NCSI, CSI and CCSI are in compliance, in all material respects, with all
laws applicable to the conduct of their respective business.

 

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(b)          Permits.
To the Knowledge of NCSI, CSI and CCSI possess all Material certificates, licenses, permits, authorizations and approvals made
or issued pursuant to or under, or required by, laws applicable to CSI or CCSI to own, lease and operate its assets and to conduct
the business of CSI and CCSI as currently conducted.

 

4.22        Illegal
Payments. Neither CSI, CCSI, nor to the Knowledge of NCSI, any officer, director or employee of CSI or CCSI has: (a) used any
funds of CSI or CCSI for unlawful contributions, gifts, entertainment or other unlawful expenses relating to political activity;
(b) made any payment in violation of applicable law to any foreign or domestic government official or employee or to any foreign
or domestic political party or campaign or violated any provision of the Foreign Corrupt Practices Act of 1977, as amended; or
(c) made any other payment in violation of applicable law.

 

4.23        Affiliate
Transactions.

 

(a)          Except as set
forth on Schedule 4.23(a) or as related to employment, (i) there are no agreements, understandings, arrangements (in each
case whether written or oral), liabilities or obligations between CSI or CCSI, on the one hand, and NCSI or any of the Shareholders,
any trustee of the Shareholders, or any current or former shareholder, member, partner, officer, director or manager of CSI, CCSI
or any Affiliate of any such Person, on the other hand, (ii) CSI and CCSI do not provide or cause to be provided any assets, services
or facilities to any Person described in clause (i) foregoing, (iii) no Person described in clause (i) foregoing provides or causes
to be provided any assets, services or facilities to CSI or CCSI, and (iv) CSI and CCSI do not beneficially own, directly or indirectly,
any interests or investment assets of any Person described in clause (i).

 

(b)          Except as set
forth on Schedule 4.23(b), and except for the ownership by NCSI of the Shares and the ownership by CSI of the CCSI Shares,
none of NCSI or the Shareholders nor any of their Affiliates, as the case may be, have any interest of any nature in any of the
assets and properties used for or related to the business or operations of CSI or CCSI.

 

4.24        Money Laundering
Laws. The operations of CSI and CCSI are and have been conducted at all times in compliance in all material respects with money
laundering statutes in all applicable jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations
or guidelines, issued, administered or enforced by any Governmental Body (collectively, the “Money Laundering Laws”)
and no action involving CSI or CCSI with respect to the Money Laundering Laws is pending or, to the Knowledge of NCSI, threatened.

 

4.25        Accounts
Receivable. The accounts receivable of CSI and CCSI: (a) are collectible in the ordinary course of business in amounts similar
to amounts historically collected (net of contractual allowances and bad debt reserves established in accordance with prior practice),
(b) represent legal, valid and binding obligations for services actually performed by CSI or CCSI, as applicable, enforceable in
accordance with their terms (except as modified by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
the rights of creditors), (c) to the Knowledge of NCSI, CSI or CCSI, there are no contests, claims, counterclaims, rights of set
off or other defenses with respect to such accounts receivable, and (d) have arisen only from bona fide sales transactions in the
ordinary course of business and are payable on ordinary trade terms.

 

4.26        Environmental
Matters.

 

(a)          To
the Knowledge of NCSI, CSI and CCSI have complied with and are in compliance in all material respects with all applicable
Environmental Laws, except where the failure to comply would not have a Material Adverse Effect, and no proceeding is pending or,
to the Knowledge of NCSI, threatened, alleging any failure to so comply.

 

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(b)          CSI
and CCSI have not received any notice of any pending or, to the Knowledge of NCSI, threatened litigation, proceeding or claim to
the effect that CSI or CCSI may be liable to any Person, or responsible or potentially responsible for the costs of any remedies
or removal action or other cleanup costs, as a result of non-compliance with any Environmental Law. There is no past or present
action, activity, condition or circumstance that could be expected to give rise to any such liability on the part of CSI or CCSI
to any Person for such cleanup costs.

 

(c)          As
used herein, the term “Environmental Law” means any foreign, federal, state, provincial or local law, permit or agreement
with any governmental body relating to the environment in effect in any and all jurisdictions in which CSI or CCSI owns or leases
property or conducts any business.

 

4.27        Disclosure.
Neither this Agreement nor any of the Disclosure Schedules, other schedules, attachments or exhibits hereto contains any untrue
statement of a material fact or omits to state a material fact necessary in order to make the statements made herein or therein,
in the light of the circumstances under which they were made, not misleading.

 

ARTICLE V

 

Representations and Warranties of
Purchaser

 

The Purchaser hereby
represents and warrants to NCSI and the Shareholders that:

 

5.1          Organization
and Good Standing. The Purchaser has been duly organized and is validly existing as a corporation in good standing under the
laws of the jurisdiction of its organization with full power and authority (corporate and otherwise) to enter into this Agreement
and the other Transaction Documents to which it is a party and to consummate the transactions contemplated hereby and thereby.

 

5.2          Authorization;
Compliance with Law. Each of this Agreement and all other Transaction Documents to be executed and delivered by Purchaser hereunder
has been duly authorized by all necessary action on the part of the Purchaser, and each of this Agreement and the other Transaction
Documents to which Purchaser is a party has been duly executed and delivered by the Purchaser and constitutes the legal, valid
and binding obligation of the Purchaser enforceable against the Purchaser in accordance with its terms, except as such enforcement
may be limited by bankruptcy, insolvency and other similar laws affecting the enforcement of creditors’ rights generally,
and by general equitable principles. The Purchaser is in compliance, in all material respects, with all federal, state and local
laws and regulations applicable to it and its business, including without limitation the Securities Act, the Exchange Act, and
the regulations promulgated thereunder.

 

5.3          Purchaser
Shares. The Purchaser Shares have been duly authorized by all necessary action, and when issued at Closing, shall be validly
issued, fully paid and non-assessable and free and clear of all Liens.

 

5.4          No Conflicts.
Neither the execution, delivery and performance of this Agreement and the other Transaction Documents to which Purchaser is a party,
nor the consummation of the transactions contemplated hereby and thereby, nor the issuance of the Purchaser Shares, will conflict
with or result in a breach or violation of any term or provision of, or (with or without notice or passage of time, or both) constitute
a default under, or otherwise give any person or entity a basis for nonperformance under, any indenture, mortgage, deed of trust,
loan or credit agreement, or other agreement or instrument to which the Purchaser is a party or by which the Purchaser is bound
or to which any of the property or assets of the Purchaser is subject, nor will such action result in the violation of the provisions
of the charter or bylaws of the Purchaser or any statute applicable to it (including, without limitation, the Securities Act, the
Exchange Act or the regulations promulgated thereunder), or any order, rule or regulation of any Governmental Body applicable to
the Purchaser, or any order, writ, injunction or decree of any court or any arbitrator having jurisdiction over the Purchaser or
any of its property or assets.

 

5.5          Consents.
All consents, authorizations and approvals of any Governmental Body or any arbitrator or any other Person required to be obtained
by the Purchaser as a result of the consummation of the transactions contemplated by this Agreement, including without limitation
the issuance of the Purchaser Shares, have been obtained.

 

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5.6          Litigation.
Except as set forth on Schedule 5.6 hereto, there is no claim, legal action, suit, arbitration, or mediation proceeding
or other legal, administrative or governmental investigation, inquiry or proceeding pending or, to the Knowledge of Purchaser threatened,
relating to the transactions contemplated by this Agreement or the other Transaction Documents or the consummation hereof
or thereof.

 

5.7          Exchange
Act Documents. Purchaser is subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act and has filed
all forms, reports and documents (together with any required amendments thereto) required to be filed by Purchaser with the SEC
since February 17, 2012. All such required forms, reports and documents (including those that Purchaser may file subsequent to
the date hereof) are referred to herein as the “Purchaser Exchange Act Documents.” As of their respective dates, the
Purchaser Exchange Act Documents (i) were prepared in accordance with the requirements of the Exchange Act, as the case may be,
and the rules and regulations of the SEC thereunder applicable to such Purchaser Exchange Act Documents and (ii) did not at the
time they were filed (or if amended or superseded by a filing prior to the date of this Agreement, then on the date of such filing)
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 the light of the circumstances under which they were made, not misleading, except to the
extent corrected prior to the date of this Agreement by a subsequently filed Purchaser Exchange Act Document. The Purchaser Exchange
Act Documents, taken as a whole, together with any press release that is broadly disseminated after the date of the most recent
Purchaser Exchange Act Documents and the date of this Agreement, do 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 the light of the
circumstances under which they were made, not misleading. None of Purchaser’s Subsidiaries is required to file any forms,
reports or other documents with the SEC. Purchaser has complied materially since February 17, 2012 with all applicable requirements
of the Financial Industry Regulatory Authority and the OTC Bulletin Board.

 

ARTICLE VI

 

Covenants

 

NCSI, the Shareholders and Purchaser hereby
covenant as follows:

 

6.1          Ordinary
Course. Prior to the Closing Date, NCSI and Shareholder shall cause each of CSI and CCSI to conduct its business in the usual
and ordinary course, in substantially the same manner as theretofore conducted, use commercially reasonable efforts (in compliance
with this Agreement) to preserve intact its current business and goodwill, to maintain its equipment in good condition and repair,
to keep available the services of its current officers and Key Employees and to preserve its relationships with customers, suppliers
and others having business dealings with it.

 

6.2          Dividends;
Capital Stock. Prior to the Closing Date, neither CSI nor CCSI shall (i) declare any dividends on, or make other distributions
in respect of, any shares of its capital stock; (ii) issue, authorize or propose the issuance of, or purchase or propose the purchase
of, any shares of CSI’s or CCSI’s capital stock or securities convertible into or exchangeable with securities of CSI
or CCSI; (iii) change the outstanding shares of CSI’s or CCSI’s capital stock into a different number of shares of
the same or different class by reason of any reclassification, recapitalization, forward stock split, reverse stock split, combination,
exchange of shares or readjustment, or declare a stock dividend thereon; or (iv) obligate itself to do any of the foregoing.

 

6.3          Covenant
Not to Use Name. After the Closing, NCSI and the Shareholders shall not use the name “Control Solutions International”,
“Canada Control Solutions International” or any variations thereof as a trademark, service mark, trade name, corporate
name, logo, slogan, website and Internet domain name for purposes of conducting or transaction any business.

 

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6.4          ConfidentialityAny
information (except publicly available or freely usable material obtained from another source) respecting any Party or its Affiliates
will be kept in strict confidence by all other Parties to this Agreement and their agents. Except as required by law, each Party
and their respective Affiliates, directors, officers, employees or agents, will not disclose the terms of the transactions contemplated
hereunder at any time, currently, or on or after the Closing, regardless of whether the Closing takes place, except as necessary
to their attorneys, accountants, third parties, or professional advisors, in which instance such persons and any employees or agents
shall be advised of the confidential nature of the terms of the transaction and shall themselves be required by the applicable
Party to keep such information confidential. Except as required by law, each Party shall retain all information obtained from the
other and their lawyers on a confidential basis except as necessary to their attorneys, accountants and professional advisors,
in which instance such persons and any employees or agents of such Party shall be advised of the confidential nature of the terms
of the transaction and shall themselves be required by such Party to keep such information confidential.

 

6.5          Publicity.
If mutually desired by Purchaser and NCSI, Purchaser and NCSI will cooperate with each other in the development and distribution
of any news releases and other public disclosures relating to the transactions contemplated by this Agreement and, following the
Closing, relating to the business generally. Notwithstanding the foregoing, the provisions of this paragraph shall not be applicable
in the event a Party hereto is required to make public disclosure pursuant to the laws of any Governmental Body or securities exchange.

 

6.6          Required
Information. In connection with the preparation of any report, statement, filing notice or application made by or on behalf
of Purchaser to any Governmental Body, FINRA, the SEC or other third Person in connection with the transactions contemplated hereby,
and for such other reasonable purposes, NCSI, and/or the Shareholders shall, upon request by Purchaser, furnish Purchaser with
all information concerning themselves, CSI, CCSI, and directors, officers and employees of CSI or CCSI, and such other matters
as may be reasonably necessary or advisable in connection with the transactions contemplated hereby, or any other report, statement,
filing, notice or application made by or on behalf of Purchaser to any third party and/ or any Governmental Authority in connection
with the transactions contemplated hereby.

 

6.7          Insurance.
Prior to the Closing, the Purchaser and NCSI shall cooperate in good faith to mutually determine the appropriate levels of insurance
that Purchaser shall cause CSI to maintain in effect following the Closing Date, covering acts and omissions of CSI and CCSI prior
to the Closing Date (whether through on-going insurance policies purchased by CSI or the purchase of supplemental insurance), In
no event will the coverage period continue for more than a period of two (2) years following the Closing Date and shall not include
any coverages except::

 

		 (i)	Professional Liability insurance covering liability for financial loss due to any error, omission
or negligence of CSI or CCSI, their respective employees, directors, officers, agents or subcontractors not to exceed two million
dollar in coverage;..

 

		 (ii)	Cyber Liability insurance covering liability not to exceed one million ($1,000,000) in coverage.

 

6.8          Employment
Practices Liability insurance not to exceed $1,000,000 in coverage..

 

NCSI shall bear all increased premiums,
associated with such additional insurance coverages to the degree that the additional coverage was not already included in the
insurance programs that CSI had maintained immediately prior to the Closing. NCSI shall promptly reimburse Purchaser for all such
premiums, costs and expenses if the same shall have been paid by Purchaser or CSI, or Purchaser may deduct such amounts due from
the Earn Out payment.

 

6.9          Transfer
Taxes. All transfer, documentary, sales, use, transaction privilege, stamp, registration and other such taxes and fees incurred
in connection with this Agreement, if any, shall be borne, jointly and severally, by NCSI and the Shareholders.

 

ARTICLE VII

 

Conditions Precedent to Closing

 

7.1          Conditions
of the Purchaser. The obligations of the Purchaser to consummate the transactions contemplated by this Agreement and the other
Transaction Documents shall be subject to the satisfaction, at or prior to the Closing, of the following conditions, any of which
may be waived in whole or in part by Purchaser:

 

    	23

    	 

    

 

(a)          
the Closing shall occur on the date that is no later than 45 days from the date of the completion of the Audit (or such other later
date as mutually agreed to by the Parties in writing);

 

(b)          any necessary
amendments to the final Disclosure Schedules shall have been completed and delivered by NCSI and the Shareholders to Purchaser,
which shall be correct in all material respects on and as of the Closing Date and satisfactory to Purchaser, in its sole discretion;

 

(c)          the representations
and warranties of NCSI and the Shareholders in this Agreement shall be true and correct in all material respects on and as of the
Closing Date with the same effect as if made on the Closing Date, and CSI, CCSI, NCSI and the Shareholders shall have complied
with all covenants and agreements and satisfied all conditions on their part to be performed or satisfied under this Agreement
or any other Transaction Documents on or prior to the Closing Date;

 

(d)          Schedule
2.1(c) shall have been completed and finalized to the satisfaction of the Purchaser, in its sole discretion;

 

(e)          there shall
not have occurred any Material Adverse Change with respect to CSI and CCSI, on a combined basis;

 

(f)           NCSI shall have
delivered to the Purchaser (i) the original stock certificate or certificates for the Shares being transferred hereunder, duly
endorsed for transfer or (ii) a Lost Stock Certificate Affidavit, certifying as to the loss or destruction of such certificate(s),
or certifying that a stock certificate representing such Shares was never issued to NCSI, in each case in a form reasonably satisfactory
to the Purchaser’s counsel;

 

(g)          each of NCSI
and the Shareholders shall have entered into Covenants Not to Compete/Non-Solicitation with the Purchaser and CSI in form attached
hereto as Schedule 7.1(g);

 

(h)          each current
member of the board of directors of CSI and CCSI shall have tendered his or her written resignation to CSI and CCSI, to be effective
upon the Closing;

 

(i)           each officer
of CSI and CCSI requested to do so by the Purchaser shall have resigned;

 

(j)           NCSI and the
Shareholders shall have obtained all of the Consents required in connection with the consummation of the transactions contemplated
by this Agreement and the other Transaction Documents as set forth in Schedule 4.12;

 

(k)          the Purchaser
shall have obtained, on terms and conditions satisfactory to the Purchaser in the Purchaser’s sole and absolute discretion,
all of the financing it needs in order to consummate the transactions contemplated by this Agreement and to fund the working capital
requirements of the CSI and CCSI after the Closing;

 

(l)           RBSM, LLP shall
have completed its Audit of CSI’s and CCSI’s 2012 and 2011 Annual Financial Statements and shall have reviewed CSI’s
and CCSI’s financial statements for the stub-period for the current fiscal year, the results of which shall be satisfactory
to Purchaser, in its sole discretion;

 

(m)         the Purchaser
shall have completed its due diligence of CSI’s and CCSI’s financial and legal documents, materials, books and records,
which shall be satisfactory to Purchaser in its sole discretion;

 

(n)          If required
by Purchaser, and at its expense, NCSI and the Shareholders shall have delivered to Purchaser an opinion of counsel to NCSI and
the Shareholders in form and substance and attached, hereto as Schedule 7.1(n);

 

(o)          NCSI shall have
delivered to Purchaser signed UCC termination statements by Simon Dealy, Margaret Gesualdi, and all other holders of Liens on the
Shares, the CCSI Shares and/or the assets of CSI and/or CCSI;

 

    	24

    	 

    

 

(p)          NCSI shall have
satisfied its payment obligations, or made arrangements satisfactory to Purchaser for the payment of amounts due under that certain
Settlement Agreement dated September 21, 2012 between NCSI and the other parties, simultaneously with the Closing;

 

(q)          Seller shall
have delivered a schedule which sets forth all third party consents, authorizations, orders and approvals required to consummate
this transaction;

 

(r)           Seller shall
have delivered copies of all material contracts to which CSI is a party which requires third party consent (the “Consent”)
pursuant to this transaction;

 

(s)          Sellers shall
have obtained all Consents; and

 

(t)           NCSI and the
Shareholders shall have delivered to the Purchaser such other documents, certificates and instruments as may be reasonably requested
by the Purchaser in connection with the consummation of the transactions contemplated by this Agreement and the other Transaction
Documents.

 

7.2          Conditions
of NCSI and the Shareholders. The obligations of NCSI or the Shareholders to consummate the transactions contemplated by this
Agreement and the other Transaction Documents shall be subject to the satisfaction, at or prior to the Closing, of the following
conditions, any of which may be waived in whole or in part by NCSI and the Shareholders:

 

(a)          The Closing
shall occur on the date that is 45 days from the date of the completion of the Audit (or such other later date as mutually agreed
to by the Parties in writing);

 

(b)          the representations
and warranties of the Purchaser in this Agreement shall be true and correct in all material respects on and as of the Closing Date
with the same effect as if made on the Closing Date, and the Purchaser shall have complied with all covenants and agreements and
satisfied all conditions on its part stated to be performed or satisfied under this Agreement prior to the Closing Date;

 

(c)          the Purchaser
shall have paid the Cash Portion of the Purchase Price in immediately available funds, as required by Section 2.2(a) hereof; and
shall have duly executed and delivered to NCSI either (i) certificates representing the Purchaser Shares or (ii) evidence reasonably
satisfactory to NCSI’s counsel that the Purchaser Shares have been duly issued to NCSI and that NCSI is reflected as the
owner thereof on the books and records of the Purchaser;

 

(d)          Schedule
2.1(c) shall have been completed and finalized to the satisfaction of NCSI and the Shareholders, in their sole discretion;

 

(e)          the Purchaser
shall have delivered to NCSI and the Shareholders such documents, certificates and instruments as may be reasonably requested by
NCSI or the Shareholders in connection with the consummation of the transactions contemplated by this Agreement and the other Transaction
Documents.

 

(f)           The Purchaser
shall have signed and delivered to the Sellers, the duly executed Consent Letter described in that certain Settlement Agreement
between NCIS and other parties dated September 21, 2012.

 

(g)          the Purchaser
shall have the registration rights in the form attached hereto as Schedule 7.2(f).

 

(h)          the Purchaser
shall have delivered to each of the Shareholders his or her respective Employment Agreement in the form attached hereto as Exhibit
XX, executed by the Purchaser in accordance with Section 2.3.

 

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ARTICLE VIII

 

Indemnification

 

8.1          Survival
of Representations and Warranties. 

 

All representations
and warranties of NCSI and the Shareholders in Article III and Article IIIA shall survive the Closing and shall terminate four
(4) years from the Closing Date and thereafter shall be of no force or effect except for any claim with respect to which notice
has been given to the Party to be charged prior to such expiration date; provided, however, that any indemnification claims based
on fraud shall not expire on such expiration date. All representations and warranties of NCSI and the Shareholders contained in
Article IV this Agreement shall survive the Closing and shall terminate twelve (12) months from the Closing Date and thereafter
shall be of no force or effect, except for any claim with respect to which notice has been given to the party to be charged prior
to such expiration date; provided, however, that any indemnification claims based on fraud shall not expire on such expiration
date; and provided further, however, that representations of Section 4.10 (Income and Other Taxes), Section 4.11 (Employee Benefit
Matters) and Section 4.26 (Environmental Matters) shall expire upon the termination of any applicable statutes of limitations.

 

8.2          Indemnification.

 

(a)          Subject to the
terms of this Agreement, including without limitation the floor and caps on indemnification set forth in Section 8.2(c), NCSI and
the Shareholders agree to indemnify, defend, save and hold harmless, Purchaser, CSI, CCSI, their respective officers, directors,
employees, agents, and representatives from and against any loss, cost, expense, liability, claim or legal damages (including,
without limitation, reasonable fees and disbursements of counsel) (collectively, “Damages”) arising out of or resulting
from: (i) any inaccuracy in or breach of any representation or warranty of NCSI or any Shareholder (but only with respect to such
Shareholder for representations and warranties under Article IIIA) in this Agreement; (ii) any Damages arising from or in connection
with CSI and/or CCSI for the period prior to the Closing Date, the Excluded Liabilities and/or the Excluded Assets; or (iii) any
failure of NCSI or any Shareholder (but only with respect to such Shareholder) to perform or observe fully any covenant, agreement
or provision to be performed or observed by it pursuant to this Agreement.

 

(b)          Subject to the
terms of this Agreement, including without limitation the floor and the cap on indemnification set forth in Section 8.2(c), the
Purchaser agrees to indemnify, defend, save and hold harmless, NCSI and the Shareholders and NCSI’s officers, directors,
employees, agents, and representatives from and against any Damages arising out of or resulting from: (i) any inaccuracy in or
breach of any representation or warranty of the Purchaser in this Agreement; or (ii) any failure of the Purchaser to perform or
observe fully any covenant, agreement or provision to be performed or observed by it pursuant to this Agreement.

 

(c)          Notwithstanding
any other provision of this Agreement, (i) no claim shall be made for indemnification under Section 8.2(a) or Section 8.2(b) unless
and until the Damages exceed $25,000 in the aggregate, in which event the Party seeking indemnification hereunder (the “Indemnified
Party”) shall be entitled to indemnification from the Party obligated to provide indemnification hereunder (the “Indemnifying
Party”) for the entire amount of such Damages from the first dollar; (ii) the aggregate amount of any claims for indemnification
made by the Purchaser under Section 8.2(a) shall not exceed the total of the Cash Portion of the Purchase Price, plus $170,000
plus any Earn Out paid as of the date of such claim; (iii) the aggregate amount of any claims for indemnification made by NCSI
and the Shareholders under Section 8.2(b) shall not exceed the Cash Portion of the Purchase Price, plus $170,000 plus any Earn
Out paid as of the date of such claim; and (iv) with respect to each Shareholder, the amount of any indemnification payable by
such Shareholder individually shall not exceed the product of the cap set forth in clause (iii) above multiplied by the percentage
ownership of NCSI’s shares held by the such Shareholder as of the Closing Date; provided, however, that the floor and caps
provided in the foregoing clauses shall not apply to indemnification claims based on fraud and/or based on breach of Section 4.10
(Income and Other Taxes). Any indemnification based on claims by the Purchaser shall be paid first by deducting such amounts from
any Earn Out, if any, under this Agreement, then by returning and forfeiting the sufficient number of Purchaser Shares (which shall
be valued, for these purposes, at $1.50 per share) to Purchaser, and then by NCSI and Shareholders making direct payments to the
Purchaser.

 

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(d)          The Indemnified
Party shall deliver notice of any claim for indemnity under Section 8.2(a) or Section 8.2(b), as applicable, in writing to the
Indemnifying Party promptly after a discovery by the Indemnified Party of such claim, setting forth with reasonable specificity
the amount claimed and the underlying facts supporting such claim to the extent known by the Indemnifying Party; provided however,
that the failure of the Indemnified Party to so notify the Indemnifying Party shall not relieve the Indemnifying Party of its obligation
to indemnify under this Agreement unless the claim arises from a third party and the rights of the Indemnifying Party are thereby
materially prejudiced. The Indemnifying Party shall have fifteen (15) days to accept or dispute such claim. Any undisputed claims
shall be satisfied within such fifteen (15) day period. Any disputes that the Parties are not mutually able to resolve within fifteen
(15) days after the Indemnifying Party has disputed the claim (or the end of such fifteen (15) day period, whichever is earlier),
shall be finally settled by arbitration in New York, New York, in accordance with the Commercial Arbitration Rules of the American
Arbitration Association in force at such time, and judgment on the award rendered by the arbitrator may be entered in any court
having jurisdiction thereof. This agreement to arbitrate shall be specifically enforceable and following the Closing shall be the
sole and exclusive remedy of the Indemnified Party for the resolution of any disputes related to the subject matter of this Agreement;
provided however that such agreement to arbitrate, such exclusive remedy or the limitations on liability set forth herein shall
not preclude the Indemnified Party from pursuing any claim for injunctive relief or action to compel arbitration which the Parties
may make in any court of competent jurisdiction.

 

(e)          After
receipt by the Indemnified Party of notice of the commencement of any action or other claim by a third party that may give rise
to a claim of indemnity hereunder (a “third party claim”), the Indemnified Party will, in a timely manner, notify the
Indemnifying Party of the third party claim, but the failure to notify Indemnifying Party shall not relieve the Indemnifying Party
of its obligation to indemnify under this Agreement unless the lack of timeliness materially prejudices the Indemnifying Party’s
ability to defend against such third party claim. After receipt of such notice the
Indemnifying Party shall, in a timely manner, undertake the defense or settlement of such third party claim with counsel
reasonably satisfactory to the Indemnified Party (who shall not, except with the consent of the Indemnified Party, be counsel to
the Indemnifying Party). The Indemnifying Party shall not settle any such action without the consent of the Indemnified Party,
which shall not be unreasonably withheld.

 

ARTICLE IX

 

Termination, Amendment and Waiver

 

9.1          Termination.
This Agreement may be terminated at any time on or prior to the Closing Date:

 

(a)          by mutual agreement
of the Parties hereto;

 

(b)          by any Party
hereto if the Closing has not occurred on or before the date that is 60 days after the date of completion of the Audit (or such
later Closing Date as may have been agreed to by the Parties in writing);

 

(c)          by the Purchaser
if: (i) at any time there has been a material misrepresentation, breach of warranty or breach of covenant by NCSI or the Shareholders
under this Agreement; or (ii) any condition precedent to Closing set forth in Section 7.1 of this Agreement has not been met on
the Closing Date, and, in each case, Purchaser is not then in default of its obligations hereunder; and

 

(d)          by NCSI or the
Shareholders if: (i) at any time there has been a material misrepresentation, breach of warranty or breach of covenant by Purchaser
under this Agreement; or (ii) any condition precedent to Closing set forth in Section 7.2 of this Agreement has not been met on
the Closing Date, and, in each case, NCSI and the Shareholders are not then in default of their obligations hereunder.

 

9.2          Effect.
In the event of termination of this Agreement as provided in Section 9.1 hereof, this Agreement shall forthwith become void and
there shall be no liability for any reason on the part of any Party hereto, or any officer, director, employee, agent or representative
of any Party hereto or any person who Controls a Party hereto, except for willful breach.

 

9.3          Amendment.
This Agreement may be amended at any time only by a written instrument executed by the Purchaser, NCSI, and the Shareholders.

 

    	27

    	 

    

 

9.4          Waiver.
Compliance with or performance under any term or provision of this Agreement may be waived in writing by mutual agreement of the
Purchaser, NCSI and the Shareholders.

 

ARTICLE X

 

General Provisions

 

10.1        Complete
Agreement and other Matters. This Agreement (a) constitutes the entire agreement and supersedes all other prior and contemporaneous
promises, covenants, understandings, representations, warranties, agreements and undertakings, both written and oral, among the
Parties hereto with respect to the subject matter hereof; (b) is not intended to confer upon any person or entity any rights or
remedies hereunder or with respect to the subject matter hereof except an specifically provided in this Agreement; (c) shall not
be assigned by operation of law or otherwise; (d) shall be governed by, and construed in accordance with, the internal laws (and
not the law of conflicts) of the State of New York; (e) may be executed in two or more counterparts, each of which shall be deemed
to be an original, but all such counterparts together shall constitute a single agreement; (f) may be executed by facsimile signature,
provided that the original thereof is provided to the other Parties promptly thereafter; and (g) shall be construed without regard
to headings or captions, or gender, or whether a reference is to the singular or plural. NCSI, the Shareholders and the Purchaser
agree that service of process by registered or certified mail, return receipt requested, at his, her or its address specified in
or pursuant to Section 10.5 is reasonably calculated to give actual notice.

 

10.2        Expenses.
All costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the
Party or Parties incurring the same, it being expressly understood by the Parties hereto that NCSI, and not the Shareholders, shall
be liable for the costs and expenses of the Shareholders and their counsel and other advisors in connection with this Agreement
and the transactions contemplated hereby. Notwithstanding the foregoing, the Parties agree that (i) NCSI will pay, regardless of
whether or not the Closing occurs, the lesser of $22,500 or 50% of the fees for the Audit, and (ii) Purchaser will pay the excess
of the fees for the Audit for which NCSI is not responsible pursuant to clause (i).

 

10.3        Broker’s
Fees. Each of the Purchaser and NCSI agree to pay the fees of any broker hired by it and to indemnify and hold the other Parties
harmless from any claim by any broker, finder, banker or intermediary hired or claiming to have been hired by it.

 

10.4        Further
Action. Subject to the terms and conditions provided in this Agreement, each of the Parties hereto agrees to use all reasonable
efforts to take, or cause to be taken, all action, and to do, or cause to be done, all things necessary, proper or advisable under
applicable laws and regulations to consummate and make effective the transactions contemplated by this Agreement. If at any time
after the Closing Date any further action is necessary to carry out the purposes of this Agreement, the Shareholders or Purchaser,
as the case may be, shall take, or cause to be taken, all such necessary action.

 

10.5        Notice.
All notices, requests, demands, claims, and other communications hereunder will be in writing. Any notice, request, demand, claim,
or other communication hereunder shall be deemed duly given: (a) upon receipt if delivered personally; (b) one (1) Business Day
following the date sent when sent by reputable overnight courier (such as FedEx) and (c) three (3) Business Days following the
date mailed when mailed by registered or certified mail, return receipt requested and postage prepaid, at the following addresses:

 

	(a)         As to Purchaser:	Staffing 360 Solutions, Inc.  
	 	641 Lexington Avenue
	 	Suite 1526
	 	New York, NY  10022
	 	Attention: A.J. Cervantes  
	 	 
	With a copy to:	Ellenoff Grossman & Schole LLP  
	 	150 East 42nd Street, 11th Floor
	 	New York, NY 10017  
	 	Attention:  Barry I. Grossman, Esq.  

 

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	(b)         As to Shareholders and NCSI:	 
	 	 
	If to Simon Dealy	Mr. Simon Dealy
	 	36 West St.
	 	Reading, MA 02472
	 	 
	If to Margaret Gesualdi:	Ms. Margaret Gesualdi
	 	22 Oakdene Ave.
	 	Cliffside Park, NJ 07010
	 	 
	If to Charlie Cooper	Mr. Charles Cooper
	 	101 Colorado St. Apt 2904
	 	Austin, TX  78701
	 	 
	If to NCSI:	NewCSI, Inc.
	 	101 Colorado St. Apt 1805
	With a Copy to:	Austin, TX  78701
	 	 
	 	Each of the Shareholders

 

or to such other address, or to such other
authorized recipient of any notice hereunder, as any Party shall in writing deliver to all other Parties in accordance with this
Section 10.5.

 

10.6        Right
of Set-Off. Purchaser shall have the right to set-off against and apply the Earn-Out, if any, against any and all other amounts,
payments and charges determined , pursuant to Section 8.2(D) to be owing by NCSI and/or the Shareholders to Purchaser under this
Agreement. 

 

10.7        Survival.
The covenants and agreements of the Parties shall survive the Closing indefinitely. 

 

[Signature page follows]

 

    	29

    	 

    

 

IN WITNESS WHEREOF,
each of the Parties hereto has executed this Agreement, or has caused this Agreement to be executed on its behalf by a representative
duly authorized, as an instrument under seal, all as of the date first above set forth.

 

	 	PURCHASER:
	 	 
	 	Staffing 360 Solutions, Inc.
	 	 	 
	 	By	/s/ Allan Hartley
	 	 	Name: Allan Hartley
	 	 	Title: Chief Executive Officer
	 	 
	 	SHAREHOLDERS:
	 	 
	 	/s/ Simon Dealy
	 	Simon Dealy
	 	 
	 	/s/ Margaret Gesualdi
	 	Margaret Gesualdi
	 	 
	 	/s/ Charles Cooper
	 	Charles Cooper
	 	 
	 	NCSI:
	 	 
	 	NewCSI, Inc.
	 	 
	 	By	/s/ Simon Dealy
	 	 	Name: Simon Dealy
	 	 	Title: CEO & President

 

    	30

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