Document:

Exhibit 10.9

 

 

 

 

ASSET PURCHASE AGREEMENT

 

 

DATED: SEPTEMBER 9, 2013

 

 

BY AND BETWEEN

 

 

LIVEDEAL, INC., AS BUYER

 

AND

 

NOVALK APPS S.A.S., AS SELLER

 

 

 

 

 

 

 

 

 

 

    	 

    	 

    

ASSET PURCHASE AGREEMENT

 

This Asset Purchase Agreement ("Agreement")
is dated as of September 9, 2013, by and between LiveDeal, Inc., a corporation organized under the laws of the State of Nevada
("Buyer") and Novalk Apps S.A.S., a corporation organized under the laws of the Country of Columbia ("Seller").

 

RECITALS

 

This Agreement is being entered into by
Buyer based, in part, upon the truth and accuracy of the following factual Recitals, each of which shall be deemed to be additional
representations and warranties by Seller:

 

		A.	Buyer provides local customer
acquisition services for small businesses. Buyer, through its two primary wholly-owned subsidiaries (Velocity Marketing Concepts,
Inc. and Local Marketing Experts, Inc.), offers an affordable way for businesses to extend their marketing reach to local, relevant
customers via the Internet with a focus on marketing solutions for mobile devices.

 

		B.	Seller is a developer of software Buyer is currently using in connection with the Internet services Buyer offers to its customers.
That software is referred to as the Customer Relationship Manager or CRM software and is defined below.

 

		C.	Seller desires to sell the Purchased Assets (defined below), and Buyer desires to purchase the same upon the terms and conditions
set forth herein; and 

 

		D.	The Boards of Directors of Seller and Buyer have each deemed it advisable and in the best interests of Seller and Buyer, respectively,
to consummate this Agreement.

 

NOW, THEREFORE, in consideration
of the above and the respective agreements hereinafter set forth, the parties to this Agreement agree as follows:

 

SECTION
1

DEFINITIONS

 

1.1    Definitions. When used in this Agreement, the
following terms shall have the meanings assigned to them in this Section 1:

 

"Affiliate" means,
with respect to any specified Person, any other Person directly or indirectly controlling, controlled by or under common control
with such specified Person.

 

"Authorization"
means any authorization, approval, Consent, certificate, license, permit or franchise of or from any Governmental Entity or pursuant
to any Law.

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Asset Purchase Agreement

 

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"Business Day" means a
day other than a Saturday, Sunday or other day on which banks located in San Diego, California are authorized or required by Law
to close.

 

"Charter Documents" means,
with respect to any entity, the certificate of incorporation, the articles of incorporation, by-laws, articles of organization,
limited liability company agreement, partnership agreement, formation agreement, joint venture agreement or other similar organizational
documents of such entity (in each case, as amended).

 

"Contract" means any agreement,
contract, license, commitment, arrangement or understanding, written or oral, including any sales order or purchase order.

 

"Governmental Entity" means
any entity or body exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to United
States federal, state, local, or municipal government, foreign, international, multinational or other government, including any
department, commission, board, agency, bureau, subdivision, instrumentality, official or other regulatory, administrative or judicial
authority thereof, and any non-governmental regulatory body to the extent that the rules and regulations or orders of such body
have the force of Law.

 

"Indebtedness" means any
of the following: (i) any indebtedness for borrowed money; (ii) any obligations evidenced by bonds, debentures, notes or other
similar instruments; (iii) any obligations to pay the deferred purchase price of property or services, except trade accounts payable
and other current Liabilities, arising in the ordinary course of Seller’s Business; (iv) any obligations as lessee under
leases; (v) any indebtedness created or arising under any conditional sale or other title retention agreement with respect to acquired
property; (vi) any obligations, contingent or otherwise, under acceptance credit, letters of credit or similar facilities, and;
(vii) any guaranty of any of the foregoing.

 

"Knowledge of Seller”
means, with respect to any fact or matter, the actual knowledge of the directors and executive officers of Seller and any other
employee of Seller with a title of manager or above, together with such knowledge that such directors, executive officers or other
Seller employees could be expected to discover after due investigation concerning the existence of the fact or matter in question.

 

"Law" means any statute,
law (including common law), constitution, treaty, ordinance, code, order, decree, judgment, rule, regulation and any other binding
requirement or determination of any Governmental Entity.

 

"Lien" means, with respect
to any o Purchased Asset, any lien, pledge, charge, security interest, adverse claim or other encumbrance in respect of such asset.

 

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"Order" means any award,
injunction, judgment, decree, order, ruling, subpoena or verdict or other decision issued, promulgated or entered by or with any
Governmental Entity of competent jurisdiction.

 

"Person" means an individual,
a corporation, a partnership, a limited liability company, a trust, an unincorporated association, a Governmental Entity or any
other entity or body.

 

"$" means United States dollars.

 

SECTION
2

PURCHASE AND SALE

 

2.1Purchase and Sale of the Purchased Assets. Upon
the terms, and subject to the conditions of this Agreement, on the Closing Date, Seller shall sell, convey, assign, deliver and
transfer to Buyer, and Buyer shall purchase, acquire and accept from Seller, free and clear of Liens the "Purchased Assets."
The Purchased Assets consist of the following assets and rights: (i) Source Code for the Velocity Local Customer Relationship Manager
software; (ii) the set-up and configuration of this software and the initial database already in possession of Buyer. The Purchased
Assets are more particularly described in the CRM-VelocityLocal Technical Documentation attached to this Agreement as Exhibit 1.

 

2.2Purchase Price. Buyer shall cause to be issued
to Seller 200,000 shares of Buyer’s restricted common stock ("Shares"), with a cost basis of the closing
price of the Shares on NASDAQ on September 9, 2013, or $4.97 per Share. The parties acknowledge and agree that the Shares are being
assigned an aggregate value of $994,000 for purposes of this Agreement.

 

SECTION
3

CLOSING

 

3.1Closing Date. The closing of the sale of the Purchased
Assets ("Closing") shall take place at the offices of Buyer, at 12520 High Bluff Drive, Suite 145, San Diego,
California at 10:00 a.m. on a date to be specified by the parties. The date on which the Closing occurs is referred to in this
Agreement as the "Closing Date."

 

3.2Deliveries by Seller at the Closing. At the Closing,
Seller shall deliver to Buyer the following:

 

(a)a Bill of Sale in a form satisfactory
to Buyer and duly executed by Seller;

 

(b)an Assignment and Assumption Agreement
in a form satisfactory to Buyer and duly executed by Seller and Buyer;

 

(c)one or more Intellectual Property Assignments
each in a form satisfactory to Buyer and duly executed by Seller (to the extent that the Purchased Assets include any patents,
trademarks, copyrights, domain names and/or registrations for the same); and

 

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(d)such other good and sufficient instruments
of transfer as Buyer reasonably deems necessary and appropriate to vest in Buyer all right, title and interest in, to and under
the Purchased Assets.

 

SECTION
4

REPRESENTATIONS AND WARRANTIES OF SELLER

 

Seller represents and warrants to Buyer,
as of the date hereof and as of the Closing Date, that the statements contained in this Section 4 are true and correct.

 

4.1Organization and Good Standing. Seller is a corporation,
duly organized, validly existing and in good standing under the Laws of the jurisdiction of its incorporation, has all requisite
power to own its properties and to carry on Seller’s Business, as formerly conducted, and is duly qualified to do business
and is in good standing in each jurisdiction in which it conducts any business. Seller is not in default under its Charter Documents.

 

4.2Authority and Enforceability.

 

(a)Seller has the requisite power and
authority to enter into this Agreement and to consummate the transactions contemplated hereby. The execution and delivery of this
Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary corporate action
on the part of Seller. Seller has duly executed and delivered this Agreement to Buyer. This Agreement constitutes the valid and
binding obligation of Seller, enforceable against it in accordance with its terms.

 

(b)Seller has the requisite power and
authority to enter into the Agreement to which it is, or specified to be, a party and to consummate the transactions contemplated
thereby. The execution and delivery by Seller of the Agreement has been duly authorized by all necessary corporate action on the
part of Seller. Prior to the Closing, Seller will have duly executed and delivered the Agreement to Buyer which will constitute
valid and binding obligations on Seller, enforceable against it in accordance with its terms. The Agreement will effectively vest
in Buyer good, valid and marketable title to the Purchased Assets free and clear of all Liens.

 

4.3No Conflicts; Consents. The execution and delivery
of this Agreement by Seller do not, and the execution and delivery of the Agreement will not, directly or indirectly: (i) violate
the provisions of any of the Charter Documents of Seller; (ii) violate or constitute a default, an event of default or an event
creating rights of acceleration, termination, cancellation, imposition of additional obligations or loss of rights under any Contract
(A) to which Seller is a party, (B) of which Seller is a beneficiary, or (C) by which Seller or any of its respective assets is
bound; (iii) violate or conflict with any Law, Authorization or Order applicable to Seller, or give any Governmental Entity or
other Person the right to challenge any of the transactions contemplated by this Agreement or to exercise any remedy, obtain any
relief under or revoke or otherwise modify any rights held under, any such Law, Authorization or Order; or (iv) result in the creation
of any Liens upon any of the Purchased Assets.

 

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4.4Compliance with Law.

 

(a)Seller has created and developed the
Purchased Assets in compliance with all applicable Laws.

 

(b)Seller has not received notice regarding
any violation of any applicable Law with respect to the Purchased Assets.

 

4.5Business Authorizations.

 

(a)Seller owns all Authorizations which
are necessary for it to sell the Purchased Assets, free and clear of all Liens ("Business Authorizations"). Such
Business Authorizations, if any, are valid and in full force and effect.

 

(b)No event has occurred and no circumstances
exist that (with or without the passage of time or the giving of notice) may result in a violation of, conflict with, failure on
the part of Seller to comply with the terms of, or the revocation, withdrawal, termination, cancellation, suspension or modification
of any Business Authorization. Seller has not received notice regarding any violation of, conflict with, failure to comply with
the terms of, or any revocation, withdrawal, termination, cancellation, suspension or modification of any Business Authorization.
Seller is not in default, nor has Seller received notice of any claim of default, with respect to any Business Authorization.

 

4.6Title to Purchased Assets. With respect to the
Purchased Assets that it purports to own, Seller has good and transferable title to the Purchased Assets, free and clear of all
Liens.

 

4.7Intellectual Property.

 

(a)As used in this Agreement, "Intellectual
Property" means: (i) inventions (whether or not patentable), trade secrets, technical data, databases, customer lists,
designs, methods, processes, technology, ideas, know-how, codes, product road maps and other proprietary information and materials
("Proprietary Information"); (ii) trademarks and service marks (whether or not registered), trade names, logos,
trade dress and other proprietary indicia and all goodwill associated therewith; (iii) documentation, advertising copy, marketing
materials, web-sites, specifications, mask works, drawings, graphics, databases, recordings and other works of authorship, whether
or not protected by Copyright; (iv) computer programs, including any and all software implementations of algorithms, models and
methodologies, whether in source code or object code, design documents, flow-charts, user manuals and training materials relating
thereto and any translations thereof (collectively, "Software"); and (v) all forms of legal rights and protections
that may be obtained for, or may pertain to, the Intellectual Property set forth in clauses (i) through (iv) of this Section 4.7
in any country of the world ("Intellectual Property Rights"), including all letters patent, patent applications,
provisional patents, design patents, PCT filings, invention disclosures and other rights to inventions or designs ("Patents"),
all registered and unregistered copyrights in both published and unpublished works ("Copyrights"), all trademarks,
service marks and other proprietary indicia (whether or not registered) ("Marks"), trade secret rights, mask works,
moral rights or other literary property or authors rights, and all applications, registrations, issuances, divisions, continuations,
renewals, reissuances and extensions of the foregoing.

 

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(b)All Intellectual Property that is owned
by Seller and related to the Purchased Assets (whether exclusively, jointly with another Person or otherwise) ("Seller
Owned Intellectual Property") will be identified and sold pursuant to this Agreement.

 

(c)There are no licenses, sublicenses
and other agreements ("In-Bound Licenses") pursuant to which a third party authorizes Seller to use, practice
any rights under, or grant sublicenses with respect to, any Intellectual Property related to the Purchased Assets owned by a third
party, including the incorporation of any such Intellectual Property into the Purchased Assets and, with respect to each In-Bound
License, whether the In-Bound License is exclusive or non-exclusive.

 

(d)There are no licenses, sublicenses
and other agreements ("Out-Bound Licenses") pursuant to which Seller authorizes a third party to use, practice
any rights under or grant sublicenses with respect to, any Seller Owned Intellectual Property or pursuant to which Seller grants
rights to use or practice any rights under any Intellectual Property owned by a third party and, with respect to each Out-Bound
License, whether the Out-Bound License is exclusive or non-exclusive.

 

(e)There are no registration, maintenance
and renewal fees related to Patents, Marks, Copyrights and any other certifications, filings or registrations that are owned by
Seller and related to the Purchased Assets ("Seller Registered Items"). To the extent they exist, Seller Registered
Items have been filed with the relevant Governmental Entity or other authorities in the United States or foreign jurisdictions,
as the case may be, for the purposes of maintaining such Seller Registered Items. There are no actions that must be taken by Buyer
with respect to the Seller Registered Items after the date of this Agreement, including the payment of any registration, maintenance
or renewal fees or the filing of any documents, applications or certificates for the purposes of maintaining, perfecting or preserving
or renewing any Seller Registered Item. To the extent they exist, all Seller Registered Items are in good standing, held in compliance
with all applicable legal requirements and enforceable by Seller. Any Patent related to the Purchased Assets that has been issued
to Seller is valid.

 

(f)Seller is not aware of any challenges
(or any basis therefor) with respect to the validity or enforceability of any Seller Owned Intellectual Property. Seller has not
taken any action or failed to take any action that could reasonably be expected to result in the abandonment, cancellation, forfeiture,
relinquishment, invalidation, waiver or unenforceability of any Seller Owned Intellectual Property. Seller has not abandoned, cancelled,
forfeited or relinquished any Seller Registered Items during the twelve months prior to the date of this Agreement.

 

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(g)None of the Purchased Assets has infringed
or infringes upon, or otherwise unlawfully used or uses, the Intellectual Property Rights of any third party. The Purchased Assets
have not infringed or infringes upon, or otherwise unlawfully used or uses, any Intellectual Property Rights of a third party.
Seller has not received any communication from any Person alleging that Seller has violated any Intellectual Property Rights of
a third party nor, to the Knowledge of Seller, is there any basis therefor. No Action has been instituted or, to the Knowledge
of Seller, threatened, relating to any Intellectual Property related to the Purchased Assets, and none of the Seller Intellectual
Property is subject to any outstanding Order. To the Knowledge of Seller, no Person has infringed or is infringing any Intellectual
Property Rights related to or has otherwise misappropriated or is otherwise misappropriating any Seller Intellectual Property.

 

(h)With respect to the Proprietary Information
related to the Purchased Assets, the documentation relating thereto is current, accurate and sufficient in detail and content to
identify and explain it and to allow its full and proper use without reliance on the special knowledge or memory of others. Seller
has taken commercially reasonable steps to protect and preserve the confidentiality of all Proprietary Information related to the
Purchased Assets.

 

(i)The execution and delivery of this
Agreement by Seller does not, and the consummation of the transactions contemplated hereby (in each case, with or without the giving
of notice or lapse of time, or both), will not, directly or indirectly, result in the loss or impairment of, or give rise to any
right of any third party to terminate or re-price or otherwise renegotiate any of Seller's rights to own any of its Intellectual
Property or its respective rights under any Out-Bound License or In-Bound License, nor require the Consent of any Governmental
Entity or other third party in respect of any such Intellectual Property.

 

4.8Customer Relationship Manager Software.

 

(a)The software owned, or purported to
be owned, by Seller and related to the Purchased Assets (collectively, "Seller Owned Software”), was either:
(i) developed by employees of Seller within the scope of their employment; (ii) developed by independent contractors
who have assigned all of their right, title and interest therein to Seller pursuant to written agreements; or (iii) otherwise
acquired by Seller from a third party pursuant to a written agreement in which such third party assigns all of its right, title
and interest therein to Seller. None of Seller Owned Software contains any programming code, documentation or other materials or
development environments that embody Intellectual Property Rights of any person other than Seller, except for such materials obtained
by Seller from other Persons who make such materials generally available to all interested Buyers or end-users on standard commercial
terms.

 

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(b)To the Knowledge of Seller, the Seller
Owned Software is free of all viruses, worms, Trojan horses and material known contaminants and does not contain any bugs, errors,
or problems that would substantially disrupt its operation or have a substantial adverse impact on the operation of the Seller
Owned Software.

 

(c)Seller has taken all actions customary
in the software industry to document the Seller Owned Software and its operation, such that the materials comprising the Seller
Owned Software, including the source code and documentation, have been written in a clear and professional manner so that they
may be understood, modified and maintained in an efficient manner by reasonably competent programmers.

 

(d)Seller has not exported or transmitted
the Seller Owned Software to any country to which such export or transmission is restricted by any applicable Law, without first
having obtained all necessary and appropriate Authorizations.

 

(e)Seller Owned Software is free of any
disabling codes or instructions ("Disabling Code”) and any virus or other intentionally created,
undocumented contaminant ("Contaminant”) that may, or may be used to, access, modify, delete, damage or
disable any computer system or that may result in damage thereto. Seller has taken reasonable steps and implemented
reasonable procedures to ensure that its and its internal computer systems used in connection with Seller Owned Software are
free from Disabling Codes and Contaminants.

 

(f)No Public Software (i) forms part of
any Seller Owned Software. "Public Software" means any software that contains, or is derived in any manner (in
whole or in part) from, any software that is distributed as free software, open source software or similar licensing or distribution
models, including software licensed or distributed under any of the following licenses or distribution models, or licenses or distribution
models similar to any of the following: (i) GNU's General Public License or Lesser/Library GPL; (ii) Mozilla Public License; (iii)
Netscape Public License; (iv) Sun Community Source/ Industry Standard License; (v) BSD License; and (vi) Apache License.

 

4.9Litigation.

 

(a)There is no action, lawsuit or proceeding,
claim, arbitration, litigation or investigation (each, an "Action"), in each case related to the Purchased Assets:
(i) pending or, to Seller's Knowledge, threatened against or affecting Seller; or (ii) that challenges or seeks to prevent, enjoin
or otherwise delay the transactions contemplated by this Agreement. No event has occurred or circumstances exist that may give
rise or serve as a basis for any such Action.

 

(b)There is no unsatisfied judgment, penalty
or award, in each case Related to Seller’s Business, against or affecting Seller or any of its respective assets, properties
or rights.

 

4.10Brokers or Finders. Seller represents that no
agent, broker, investment banker or other firm or Person is or will be entitled to any broker's or finder's fee or any other commission
or similar fee in connection with any of the transactions contemplated by this Agreement.

 

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4.11Completeness of Disclosure. No representation
or warranty by Seller in this Agreement or in connection with the negotiation, execution or performance of this Agreement contains,
or will at the Closing contain, any untrue statement of a material fact or omits or will omit to state a material fact required
to be stated herein or therein or necessary to make any statement herein or therein not misleading. There are no facts or circumstances
of which Seller is aware that have had, or could be expected to have, individually, or in the aggregate, an adverse effect on the
Purchased Assets.

 

4.12Investment Representations.

 

(a)Seller recognizes that the purchase of the Shares entails
elements of risk in that (i) it may not be able to readily liquidate its investment; (ii) transferability will be restricted; (iii)
Buyer is not assured of maintaining its listing on the NASDAQ Capital Market; and (iv) in the event of a disposition, it could
sustain the loss of its entire investment.

 

(b)Seller acknowledges that it has prior investment experience
such that it is able to evaluate the merits and risks of an investment in Buyer; that it recognizes the speculative nature of this
investment; and that it is able to bear the economic risk it hereby assumes. All reports, schedules, forms, statements, and other
documents required to be filed by Buyer with the United States Securities and Exchange Commission ("SEC") under
the Securities Act of 1933, as amended (the "Securities Act"), the Securities Exchange Act of 1934, as amended
(the "Exchange Act"), and the rules and regulations promulgated under each, including pursuant to Section 13(a)
or 15(d) thereof, as well as all amendments to such filings and reports and all exhibits and documents incorporated by reference
therein or attached thereto, that have been filed as of the Closing are collectively referred to as the "Disclosure Reports."
Seller acknowledges that it or its representative(s) have read the Disclosure Reports available as of the Closing. Seller also
acknowledges that it and its representative(s) have been afforded the opportunity to make, and has made, all inquiries as it and
its representatives deemed appropriate with respect to Buyer’s affairs and prospects.

 

(c)Seller hereby acknowledges that (i) the sale and issuance
of the Shares have not been approved by the NASDAQ or registered with the SEC by reason of Buyer’s intention that the offer
and sale of the Shares be a transaction exempt from the registration and prospectus delivery requirements of the Securities Act
pursuant to Section 4(2) thereof; (ii) the issuance of the Shares has not been qualified under any state securities laws on the
grounds that the sale of the Shares contemplated hereby are exempt therefrom; and (iii) the foregoing exemptions are predicated
on Seller’s representations set forth herein. Seller represents that the Shares are being purchased for its own account,
for investment and not with a view to, or for resale in connection with, any distribution or public offering thereof, within the
meaning of the Securities Act or applicable state securities laws. Seller understands that the Shares, upon their transfer, will
not be registered under the Securities Act and may be required to be held indefinitely unless they are subsequently registered
under the Securities Act, or an exemption from such registration is available.

 

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(d)Seller represents that it is an “accredited investor”
as that term is defined in Rule 501 of Regulation D promulgated under the Securities Act.

 

(e)Unless the resale of the Shares is subsequently registered
with the SEC, the Seller acknowledges that the certificate representing the Shares shall bear a legend in substantially the following
form:

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS AND
MAY NOT BE SOLD OR OTHERWISE TRANSFERRED EXCEPT (I) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND COMPLIANCE
WITH SUCH STATE SECURITIES LAWS, (II) IN COMPLIANCE WITH RULE 144 UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS, OR (III) UPON
THE DELIVERY TO LIVEDEAL, INC. (THE “COMPANY”) OF AN OPINION OF COUNSEL OR OTHER EVIDENCE SATISFACTORY TO THE COMPANY
THAT SUCH REGISTRATION AND/ OR COMPLIANCE IS NOT REQUIRED.”

 

SECTION
5

REPRESENTATIONS AND WARRANTIES OF BUYER

 

Buyer represents and warrants to Seller
that each statement contained in this Section 5 is true and correct as of the date of this Agreement.

 

5.1Organization and Good Standing. Buyer is a corporation
duly organized, validly existing and in good standing under the Laws of the jurisdiction of its incorporation and has the requisite
corporate power to own, lease and operate its properties and to carry on its business as now being conducted,

 

5.2Authority and Enforceability. Buyer has the requisite
corporate power and authority to enter into this Agreement and to consummate the transaction contemplated hereby and thereby. The
execution and delivery of this Agreement, and the consummation of the transaction contemplated hereby and thereby, has been duly
authorized by all necessary corporate action on the part of Buyer. This Agreement has been duly executed and delivered by Buyer
and, assuming due authorization, execution and delivery by Seller, constitutes the valid and binding obligations of Buyer, enforceable
against it in accordance with their respective terms,

 

5.3Litigation. There is no Action pending or, to
the knowledge of Buyer, threatened against Buyer which challenges or seeks to enjoin, alter or materially delay the consummation
of the transaction contemplated by this Agreement.

 

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SECTION
6

COVENANTS
OF SELLER

 

6.1Access to Information; Investigation. Seller shall
afford to Buyer’s officers, directors, employees, accountants, counsel, consultants, advisors and agents ("Representatives")
free and full access to and the right to inspect the Purchased Assets and shall permit them to consult with the officers, employees,
accountants, counsel and agents of Seller for the purpose of making such investigation of the Purchased Assets as Buyer shall desire
to make.

 

6.2Confidentiality. From and after the Closing Date,
Seller will hold in confidence any and all information, whether written or oral, concerning the Purchased Assets, except to the
extent that Seller can show that such information: (i) is in the public domain through no fault of Seller; or (ii) is lawfully
acquired by Seller after the Closing Date from sources that are not prohibited from disclosing such information by a legal, contractual
or fiduciary obligation. If Seller is compelled to disclose any such information by judicial or administrative process or by other
requirements of Law, Seller shall promptly notify Buyer in writing and shall disclose only that portion of such information that
Seller is advised by its counsel in writing is legally required to be disclosed; provided, however, that Seller shall exercise
its reasonable best efforts to obtain an appropriate protective order or other reasonable assurance that confidential treatment
will be accorded such information. Seller shall enforce for the benefit of Buyer all confidentiality, assignment of inventions
and similar agreements between Seller and any other party relating to the Purchased Assets.

 

6.3Release of Liens. Prior to the Closing Date, Seller
shall cause to be released all Liens in and upon any of the Purchased Assets.

 

6.4Consents. Seller shall obtain all Consents contemplated
by this Agreement so as to preserve all rights of, and benefits to, Buyer.

 

6.5Notification of Certain Matters. Seller shall
give prompt notice to Buyer of: (i) any fact, event or circumstance known to it that individually or taken together with all other
facts, events and circumstances known to it, has had or could have, individually or in the aggregate, a material adverse effect
on the Purchased Assets or would cause or constitute a breach of any of its representations, warranties, covenants or agreements
contained herein; (ii) the failure of any condition precedent to Buyer's obligations hereunder; (iii) any notice or other communication
from any third party alleging that the Consent of such third party is or may be required in connection with the consummation of
the transactions contemplated by this Agreement; (iv) any notice or other communication from any Governmental Entity in connection
with the consummation of the transactions contemplated by this Agreement; or (v) the commencement of any Action that, if pending
on the date of this Agreement, would have been required to have been disclosed pursuant to Section 4.9.

 

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6.6Retention of Shares. Seller covenants and agrees
that, during the period beginning on the Closing Date and ending six months after the Closing Date, Seller will not, directly or
indirectly, (a) offer, sell, offer to sell, contract to sell, hedge, pledge, sell any option or contract to purchase, purchase
any option or contract to sell, grant any option, right or warrant to purchase or sell (or announce any offer, sale, offer of sale,
contract of sale, hedge, pledge, sale of any option or contract to purchase, purchase of any option or contract of sale, grant
of any option, right or warrant to purchase or other sale or disposition), or otherwise transfer or dispose of (or enter into any
transaction or device that is designed to, or could be expected to, result in the disposition by any person at any time in the
future), the Shares purchased by Seller, or (b) enter into any swap or other agreement or any transaction that transfers, in whole
or in part, directly or indirectly, the economic consequence of ownership of any Shares, whether any such swap or transaction described
in clause (a) or (b) above is to be settled by delivery of any Share.

 

SECTION
7

COVENANTS OF BUYER AND SELLER

 

7.1Public Announcements. Seller shall not issue any
press releases or otherwise make any public statements with respect to the transactions contemplated by this Agreement, without
the prior written Consent of Buyer.

 

7.2Taxes.

 

(a)Seller shall pay all federal, state
and local sales, documentary and other transfer taxes, if any, due as a result of the purchase, sale or transfer of the Purchased
Assets in accordance herewith, whether imposed by Law on Seller or Buyer;

 

(b)All personal property taxes and similar
ad valorem obligations levied with respect to the Purchased Assets for a taxable period that includes (but does not end on) the
Closing Date shall be apportioned between Seller and Buyer as of the Closing Date, based on the number of days of such taxable
period included in the period ending with and including the Closing Date (with respect to any such taxable period, the "Pre-Closing
Tax Period"), and the number of days of such taxable period beginning after the Closing Date (with respect to any such
taxable period, the "Post-Closing Tax Period"). Seller shall be liable for the proportionate amount of such Taxes
that is attributable to the Pre-Closing Tax Period, and Buyer shall be liable for the proportionate amount of such taxes that
is attributable to the Post-Closing Period. If bills for such taxes have not been issued as of the Closing Date, and if the amount
of such taxes for the period including the Closing Date is not then known, the apportionment of such taxes shall be made at Closing
on the basis of the prior period's taxes. After Closing, upon receipt of bills for the period including the Closing Date, adjustments
to the apportionment shall be made by the parties, so that if either party paid more than its proper share at the Closing, the
other party shall promptly reimburse such party for the excess amount (“Excess Amount”) paid by them.

 

    	13

    	 

    

(c)Buyer and Seller agree to furnish or
cause to be furnished to each other, upon request, as promptly as practicable, such information and assistance relating to the
Purchased Assets as is reasonably necessary for the filing of all tax returns. the making of any election relating to taxes, the
preparation for any audit by any taxing authority, and the prosecution or defense of any Action relating to any tax. Any expenses
incurred in furnishing such information or assistance shall be borne by the party requesting it.

 

7.5Further Assurances. Buyer and Seller shall execute
such documents and other instruments and take such further actions as may be reasonably required or desirable to carry out the
provisions of this Agreement and to consummate the transactions contemplated hereby and thereby. Upon the terms and subject to
the conditions hereof, Buyer and Seller shall each use its respective reasonable best efforts to: (i) take or cause to be taken
all actions and to do or cause to be done all other things necessary, proper or advisable to consummate and make effective as promptly
as practicable the transactions contemplated by this Agreement; and (ii) obtain in a timely manner all Consents and Authorizations
and effect all necessary registrations and filings. From time to time after the Closing, at Buyer's request, Seller shall execute,
acknowledge and deliver to Buyer such other instruments of conveyance and transfer and will take such other actions and execute
and deliver such other documents, certifications and further assurances as Buyer may reasonably require in order to vest more effectively
in Buyer, or to put Buyer more fully in possession of, any of the Purchased Assets.

 

SECTION
8

RESERVED

 

SECTION
9

INDEMNIFICATION

 

9.1Survival.

 

(a)All representations and warranties
contained in this Agreement or other document delivered pursuant to this Agreement shall survive the Closing for a period of five
years.

 

(b)The covenants and agreements which
by their terms do not contemplate performance after the Closing shall survive the Closing for a period of two years.

 

(c)The period for which a representation
or warranty, covenant or agreement survives the Closing is referred to herein as the "Applicable Survival Period."
In the event notice of claim for indemnification under Section 9.2 is given within the Applicable Survival Period, the representation
or warranty, covenant or agreement that is the subject of such indemnification claim (whether or not formal legal action shall
have been commenced based upon such claim) shall survive with respect to such claim until such claim is finally resolved. Seller
shall indemnify Buyer for all Losses (subject to the limitations set forth herein, if applicable) that Buyer may incur in respect
of such claim, regardless of when incurred.

 

    	14

    	 

    

9.2Indemnification by Seller.

 

(a)Seller shall indemnify and defend Buyer
and its Affiliates and their respective stockholders, members, managers, officers, directors, employees, agents, successors and
assigns ("Buyer Indemnities") against, and shall hold them harmless from, any and all losses, damages, claims
(including third party claims), charges, interest, penalties, taxes, diminution in value, costs and expenses (including legal,
consultant, accounting and other professional fees, costs of sampling, testing, investigation, removal, treatment and remediation
of contamination and fees and costs incurred in enforcing rights under this Section 9.2) (collectively, "Losses")
resulting from, arising out of, or incurred by any Buyer Indemnitee in connection with, or otherwise with respect to:

 

(i)the failure of any
representation and warranty or other statement by Seller contained in this Agreement to be true and correct in all respects
as of the date of this Agreement and as of the Closing Date;

 

(ii)any breach of any covenant or agreement
of Seller contained in this Agreement or other document furnished or to be furnished to Buyer in connection with the transaction
contemplated by this Agreement; and

 

(iii)any notice of the assertion of
any claim or the commencement of an Action by a third party related to the Purchased Assets.

 

(b)Any and all Losses hereunder shall
bear interest from the date incurred until paid at the rate of 10% per annum or the maximum permitted by California Law, whichever
is greater; provided, however, such interest shall in no event be more than permitted by Law.

 

9.3Effect of Investigation. Buyer's
right to indemnification or other remedy based on the representations, warranties, covenants and agreements of Seller contained
herein will not be affected by any investigation conducted by Buyer with respect to, or any knowledge acquired by Buyer at any
time, with respect to the accuracy or inaccuracy of or compliance with, any such representation, warranty, covenant or agreement.

 

9.4Cumulative Remedies. The rights
and remedies provided in this Section 9 are cumulative and are in addition to and not in substitution for any other rights and
remedies available at law or in equity or otherwise.

 

    	15

    	 

    

SECTION
10

MISCELLANEOUS

 

10.1Notice. Any notice, request, demand, waiver,
consent, approval or other communication which is required or permitted hereunder shall be in writing and shall be deemed given:
(i) on the date established by the sender as having been delivered personally; (ii) on the date delivered by a private courier
as established by the sender by evidence obtained from the courier; (iii) on the date sent by facsimile, with confirmation of transmission,
if sent during normal business hours of the recipient, if not, then on the next business day; or (iv) on the 5th day after the
date mailed, by certified or registered mail, return receipt requested, postage prepaid. Such communications, to be valid, must
be addressed as follows:

 

If to Buyer, to:

LiveDeal, Inc.

12520 High Bluff Drive

Suite 145

San Diego, California 92130

Attn: Jon Isaac

Facsimile: (858) 259-666

Email: jisaac@livedeal.com

 

If to Seller, to:

Novalk Apps S.A.S

Carrera 44 84-42

Barranquilla

Atlantico, Colombia

Attn: Juan Yunis

Facsimile: None

Email: juanyunis@juanyunis.com

 

or to such other address or to the attention of such Person
or Persons as the recipient party has specified by prior written notice to the sending party (or in the case of counsel, to such
other readily ascertainable business address as such counsel may hereafter maintain). If more than one method for sending notice
as set forth above is used, the earliest notice date established as set forth above shall control.

 

10.2Amendments and Waivers.

 

(a)Any provision of this Agreement may
be amended or waived if, and only if, such amendment or waiver is in writing and is signed, in the case of an amendment, by each
party to this Agreement, or in the case of a waiver, by the party against whom the waiver is to be effective.

 

(b)No failure or delay by any party in
exercising any right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise thereof
preclude any other or further exercise thereof or the exercise of any other right, power or privilege.

 

    	16

    	 

    

(c)To the maximum extent permitted by
Law: (i) no waiver that may be given by a party shall be applicable except in the specific instance for which it was given; and
(ii) no notice to or demand on one party shall be deemed to be a waiver of any obligation of such party or the right of the party
giving such notice or demand to take further action without notice or demand.

 

10.3Expenses. Each party shall bear his or its own
costs and expenses in connection with this Agreement and the transaction contemplated hereby and thereby, including all legal,
accounting, financial advisory, consulting and all other fees and expenses of third parties, whether or not the transaction contemplated
by this Agreement are consummated.

 

10.4Successors and Assigns. This Agreement may not
be assigned by either party hereto without the prior written Consent of the other party; provided, however, that, without such
consent, Buyer may transfer or assign this Agreement, in whole or in part or from time to time, to one or more of its Affiliates,
but no such transfer or assignment will relieve Buyer of its obligations hereunder. Subject to the foregoing, all of the terms
and provisions of this Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective executors,
heirs, personal representatives, successors and assigns.

 

10.5Governing Law. This Agreement shall be governed
by and interpreted and enforced in accordance with the Laws of the State of California, without giving effect to any choice of
Law or conflict of Laws rules or provisions (whether of the State of California or any other jurisdiction) that would cause the
application of the Laws of any jurisdiction other than the State of California.

 

10.6Dispute Resolution. Any dispute among the parties
hereto shall be resolved in accordance with the dispute resolution provisions of this Section 10.6.

 

(a)The parties shall attempt in good faith
to resolve any dispute arising out of or relating to this Agreement, the breach, termination or validity thereof, or the transactions
contemplated herein promptly by negotiation between representatives who have authority to settle the controversy. Any party may
give the others written notice that a dispute exists ("Notice of Dispute"). The Notice of Dispute shall include
a statement of such party's position. Within 20 Business Days of the delivery of the Notice of Dispute, representatives of the
parties shall meet at a mutually acceptable time and place, and thereafter as long as they both reasonably deem necessary, to exchange
relevant information and attempt to resolve the dispute. If the matter has not been resolved within 45 days of the disputing party's
Notice of Dispute, or if the parties fail to meet within 20 days thereof, any party may initiate arbitration of the controversy
or claim as provided hereinafter. If a negotiator intends to be accompanied at a meeting by an attorney, the other negotiator shall
be given at least 3 Business Days' notice of such intention and may also be accompanied by an attorney. All compromise and settlement
negotiations for purposes of the Federal and California Rules of Evidence shall be inadmissible in any subsequent arbitration or
litigation between the parties.

    	17

    	 

    

(b)Any controversy or claim arising out
of or relating to this Agreement, the breach, termination, or validity thereof, or the transactions contemplated herein, if not
settled by negotiation as provided in Section 10.6(a), shall be settled by binding arbitration in San Diego, California, in accordance
with the California Code of Civil Procedure. The arbitrator shall be selected by mutual agreement of the parties within 20 days
following the initiation of arbitration hereunder, or, absent such agreement, by appointment by petition the appointment of the
San Diego Superior Court. The arbitration procedure shall be governed by the California Code of Civil Procedure section 1280 et.
seq. and the award rendered by the arbitrator shall be final and binding on the parties and may be entered in any court having
jurisdiction thereof.

 

(c)Each party shall have discovery
rights as provided by the California Code of Civil Procedure Section 1283.05 et. seq.; provided, however, that all such
discovery shall be commenced and concluded within 90 days after the selection or appointment of the arbitrator. It is the intent
of the parties that any arbitration shall be concluded as quickly as reasonably practicable. Unless the parties otherwise agree,
once commenced, the hearing on the disputed matters shall be held four days a week until concluded, with each hearing date to
begin at 9:00 a.m. and to conclude at 5:00 p.m. The arbitrator shall use all reasonable efforts to issue the final award or awards
within a period of 5 Business Days after closure of the proceedings. Failure of the arbitrator to meet the time limits of this
Section l0.6 shall not be a basis for challenging the award.

 

(d)Each party shall share equally the
fees and expenses of the arbitrator. In the event the arbitrator determines that one party prevailed over the other party in the
arbitration proceeding, the arbitrator shall instruct the non-prevailing party to pay the reasonable attorneys’ fees and
expenses of the prevailing party, in the amount determined by the arbitrator.

 

10.7Counterparts. This Agreement may be executed
in any number of counterparts, and any party hereto may execute any such counterpart, each of which when executed and delivered
shall be deemed to be an original and all of which counterparts taken together shall constitute but one and the same instrument.
This Agreement shall become effective when each party hereto shall have received a counterpart hereof signed by the other party
hereto. The parties agree that the delivery of this Agreement and any other agreements and documents at the Closing, may be effected
by means of an exchange of facsimile signatures with original copies to follow by mail or courier service.

 

10.8Third Party Beneficiaries. No provision of this
Agreement is intended to confer upon any Person other than the parties hereto any rights or remedies hereunder; except that in
the case of Section 9 hereof, the Buyer Indemnitees and their respective heirs, executors, administrators, legal representatives,
successors and assigns, are intended third party beneficiaries of such sections and shall have the right to enforce such sections
in their own names.

 

    	18

    	 

    

10.9Entire Agreement. This Agreement and the other
documents, instruments and agreements specifically referred to in this Agreement, or delivered pursuant hereto or thereto, set
forth the entire understanding of the parties hereto with respect to the transactions contemplated by this Agreement. Any and all
previous agreements and understandings between or among the parties regarding the subject matter hereof, whether written or oral,
are superseded by this Agreement, except for any Confidentiality Agreement between the parties which shall continue in full force
and effect in accordance with its terms.

 

10.10Severability. Any provision of this Agreement
which is invalid or unenforceable in any jurisdiction shall be ineffective to the extent of such invalidity or unenforceability
without invalidating or rendering unenforceable the remaining provisions hereof, and any such invalidity or unenforceability in
any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

10.11Interpretation. The parties have participated
jointly in the negotiation and drafting of this Agreement. Any rule of construction or interpretation otherwise requiring this
Agreement to be construed or interpreted against any party by virtue of the authorship of this Agreement shall not apply to the
construction and interpretation hereof and thereof.

 

*****

 

 

 

 

 

    	19

    	 

    

 

 

IN WITNESS WHEREOF, the parties have
hereunto set their hands as of the day and year first above written.

 

LiveDeal, Inc.

 

 

By: /s/ Jon Isaac                                            

Name: Jon Isaac

Title: President and Chief Executive Officer

Novalk Apps S.A.S

 

 

By: /s/ Juan Yunis                                          

Name:Juan Yunis

Title: Chief Executive Officer and President

 

 

 

 

    	20

    	 

    

Exhibit
1

 

CRM-VelocityLocal
Technical Documentation

 

 

Change Control:

 

	Section 1

                                                                                                                                                                        Version:
	Section
2

                                                                                                                                                                                                                                           Date:
	Section
                                                                                                                                                                                                                       3

                                                                                Updated
By:
	Section 4

                                                                                                                                                                                                                                           Notes:

	Section
                                                                                                                                                                                                                                5

                                                                                                                                                                                                                                1.0
	Section 6

                                                                                                                                                                                                  2013-08-28
	Section 7

                                                                                                                                                                                                  Juan
                                                                                                                                                                                                  C.
                                                                                                                                                                                                  Yunis
	Section 8

                                                                                                                                                                                                  Initial

	Section
9	Section
    10	Section 11	Section
12

 

 

CRM-VelocityLocal
Infrastructure

 

(a)   
Servers:

 

CRM-VelocityLocal’s production system consists of 2 server
instances deployed with Linode:

 

		1.	Application - runs a HTTP server to handle the CRM-VelocityLocal application website and application packaging logic.
Technical characteristics:

		a.	RAM: 4GB,

		b.	vCPUs: 8,

		c.	Disk space: 192GB,

		d.	Public Network: 100Mbps,

		e.	Internal Network: 100Mbps.

 

		2.	Database (DB) - runs database and manage system backups. Technical characteristics:

		a.	RAM: 8GB,

		b.	vCPUs: 8,

		c.	Disk space: 384GB,

		d.	Public Network: 100Mbps,

		e.	Internal Network: 100Mbps.

 

    	21

    	 

    

Scaling Procedures:

 

The first phase of scaling the “DB” servers
stack can be performed by separating read and write operations with special read-only replicas.

 

The second phase requires database sharding with an additional
software effort.

 

CRM-VelocityLocal
Software

 

(b) 
System Requirements:

 

System level packages and software:

 

		1.	Ubuntu 10.04 LTS

		2.	Python 2.7.3

		3.	Supervisord 3.0a12

		4.	Nginx 1.2.3

		5.	PostgreSQL 9.1.3

		6.	RabbitMQ 3.1.5

 

All requirements for python packages can be found in source
code in $PROJECT_ROOT/requirements.txt file and can be installed using pip util.

(c)   
Source Code Distribution:

 

The source code for the CRM-VelocityLocal project is distributed
with Bitbucket web-wrapper for git repos. Below is a full list of Bitbucket projects:

 

		●	https://bitbucket.org/juanyunis/velocitylocalcrm/ - source code for application HTTP server

(d)  
3rd-party code 

 

Below is a list of open-source dependencies used for application
server development:

 

		1.	Python - programming language (http://www.python.org/), licensed under PSF (http://docs.python.org/license.html,
see Attachment A).

		2.	Django - WSGI compatible web-framework.

		3.	PIL (Python Imaging Library) - library that adds image processing capabilities to Python (http://www.pythonware.com/products/pil/),
licensed under http://www.pythonware.com/products/pil/license.htm (Attachment B).

		4.	Werkzeug - the Python WSGI utility library (http://werkzeug.pocoo.org/), licensed under
https://github.com/mitsuhiko/werkzeug/blob/master/LICENSE (Attachment D).

 

Below is a list of open-source dependencies used for mobile
application development:

 

		1.	jQuery - JS library that simplifies HTML document traversing, event handling, animating, and Ajax interactions for rapid web
development (http://jquery.com/), licensed under MIT (https://github.com/jquery/jquery/blob/master/MIT-LICENSE.txt,
see Attachment C).

 

		2.	
jQuery Mobile - touch-optimised web framework (http://jquerymobile.com/), licensed
under MIT (Attachment C).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	22

    	 

    

Attachment
A: PSF license agreement for Python 2.7.3

 

		1.	This LICENSE AGREEMENT is between the Python Software Foundation (“PSF”),
and the Individual or Organization (“Licensee”) accessing and otherwise using Python 2.7.3 software in source or binary
form and its associated documentation.

		2.	Subject to the terms and conditions of this License Agreement, PSF hereby grants Licensee
a nonexclusive, royalty-free, world-wide license to reproduce, analyze, test, perform and/or display publicly, prepare derivative
works, distribute, and otherwise use Python 2.7.3 alone or in any derivative version, provided, however, that PSF’s License
Agreement and PSF’s notice of copyright, i.e., “Copyright © 2001-2012 Python Software Foundation; All Rights Reserved”
are retained in Python 2.7.3 alone or in any derivative version prepared by Licensee.

		3.	In the event Licensee prepares a derivative work that is based on or incorporates Python
2.7.3 or any part thereof, and wants to make the derivative work available to others as provided herein, then Licensee hereby agrees
to include in any such work a brief summary of the changes made to Python 2.7.3.

		4.	PSF is making Python 2.7.3 available to Licensee on an “AS IS” basis. PSF
MAKES NO REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED. BY WAY OF EXAMPLE, BUT NOT LIMITATION, PSF MAKES NO AND DISCLAIMS ANY
REPRESENTATION OR WARRANTY OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OR THAT THE USE OF PYTHON 2.7.3 WILL NOT INFRINGE
ANY THIRD PARTY RIGHTS.

		5.	PSF SHALL NOT BE LIABLE TO LICENSEE OR ANY OTHER USERS OF PYTHON 2.7.3 FOR ANY INCIDENTAL,
SPECIAL, OR CONSEQUENTIAL DAMAGES OR LOSS AS A RESULT OF MODIFYING, DISTRIBUTING, OR OTHERWISE USING PYTHON 2.7.3, OR ANY DERIVATIVE
THEREOF, EVEN IF ADVISED OF THE POSSIBILITY THEREOF.

		6.	This License Agreement will automatically terminate upon a material breach of its terms
and conditions.

		7.	Nothing in this License Agreement shall be deemed to create any relationship of agency,
partnership, or joint venture between PSF and Licensee. This License Agreement does not grant permission to use PSF trademarks
or trade name in a trademark sense to endorse or promote products or services of Licensee, or any third party.

		8.	By copying, installing or otherwise using Python 2.7.3, Licensee agrees to be bound by
the terms and conditions of this License Agreement.

 

Original text: http://docs.python.org/license.html

 

    	23

    	 

    

 

Attachment
B: PIL Software License

 

The Python Imaging Library
(PIL) is

Copyright ©
1997-2011 by Secret Labs AB

Copyright ©
1995-2011 by Fredrik Lundh

 

By obtaining, using, and/or
copying this software and/or its associated documentation, you agree that you have read, understood, and will comply with the following
terms and conditions:

 

Permission to use, copy,
modify, and distribute this software and its associated documentation for any purpose and without fee is hereby granted, provided
that the above copyright notice appears in all copies, and that both that copyright notice and this permission notice appear in
supporting documentation, and that the name of Secret Labs AB or the author not be used in advertising or publicity pertaining
to distribution of the software without specific, written prior permission.

 

SECRET LABS AB AND THE
AUTHOR DISCLAIMS ALL WARRANTIES WITH REGARD TO THIS SOFTWARE, INCLUDING ALL IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS.
IN NO EVENT SHALL SECRET LABS AB OR THE AUTHOR BE LIABLE FOR ANY SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES WHATSOEVER
RESULTING FROM LOSS OF USE, DATA OR PROFITS, WHETHER IN AN ACTION OF CONTRACT, NEGLIGENCE OR OTHER TORTIOUS ACTION, ARISING OUT
OF OR IN CONNECTION WITH THE USE OR PERFORMANCE OF THIS SOFTWARE.

 

Original text: http://www.pythonware.com/products/pil/license.htm

 

 

    	24

    	 

    

Attachment C: The MIT License

 

Copyright (c) <year>
<copyright holders>

 

Permission is hereby granted,
free of charge, to any person obtaining a copy of this software and associated documentation files (the "Software"),
to deal in the Software without restriction, including without limitation the rights to use, copy, modify, merge, publish, distribute,
sublicense, and/or sell copies of the Software, and to permit persons to whom the Software is furnished to do so, subject to the
following conditions:

 

The above copyright notice
and this permission notice shall be included in all copies or substantial portions of the Software.

 

THE SOFTWARE IS PROVIDED
"AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM,
DAMAGES OR OTHER LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION WITH THE
SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.

 

Original text: http://opensource.org/licenses/mit-license.php

 

 

 

    	25

    	 

    

 

Attachment
D: Werkzeug License

 

 

Copyright
(c) 2011 by the Werkzeug Team, see AUTHORS for more details.

 

Redistribution
and use in source and binary forms, with or without modification, are permitted provided that the following conditions are met:

		●	Redistributions of source code must retain the above copyright notice, this list of conditions
and the following disclaimer. 

		●	Redistributions in binary form must reproduce the above copyright notice, this list of
conditions and the following disclaimer in the documentation and/or other materials provided with the distribution.

		●	The names of the contributors may not be used to endorse or promote products derived
from this software without specific prior written permission.

 

THIS SOFTWARE
IS PROVIDED BY THE COPYRIGHT HOLDERS AND CONTRIBUTORS"AS IS" AND ANY EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOTLIMITED
TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FORA PARTICULAR PURPOSE ARE DISCLAIMED. IN NO EVENT SHALL THE COPYRIGHTOWNER
OR CONTRIBUTORS BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL,SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES (INCLUDING, BUT NOTLIMITED
TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES; LOSS OF USE,DATA, OR PROFITS; OR BUSINESS INTERRUPTION) HOWEVER CAUSED AND ON
ANYTHEORY OF LIABILITY, WHETHER IN CONTRACT, STRICT LIABILITY, OR TORT(INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT
OF THE USEOF THIS SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.

 

Original
text: https://github.com/mitsuhiko/werkzeug/blob/master/LICENSE

 

    	26

    	 

    

 

Attachment
E: BSD

 

Copyright (c) <year>, <copyright holder>

All rights reserved.

 

Redistribution and use in source and binary forms, with or without
modification, are permitted provided that the following conditions are met:

		1.	Redistributions of source code must retain the above copyright notice, this list of conditions and the following disclaimer.

		2.	Redistributions in binary form must reproduce the above copyright notice, this list of conditions and the following disclaimer
in the documentation and/or other materials provided with the distribution.

		3.	All advertising materials mentioning features or use of this software must display the following acknowledgement: This product
includes software developed by the <organization>.

		4.	Neither the name of the <organization> nor the names of its contributors may be used to endorse or promote products derived
from this software without specific prior written permission.

 

THIS SOFTWARE IS PROVIDED BY <COPYRIGHT HOLDER> ''AS IS''
AND ANY EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR
A PARTICULAR PURPOSE ARE DISCLAIMED. IN NO EVENT SHALL <COPYRIGHT HOLDER> BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL,
SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES (INCLUDING, BUT NOT LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES; LOSS
OF USE, DATA, OR PROFITS; OR BUSINESS INTERRUPTION) HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY, WHETHER IN CONTRACT, STRICT
LIABILITY, OR TORT (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE USE OF THIS SOFTWARE, EVEN IF ADVISED OF THE
POSSIBILITY OF SUCH DAMAGE.

 

Original BSD license definition: http://www.linfo.org/bsdlicense.html

 

 

    	27Exhibit 10.10

 

LIVEDEAL, INC.

 

CONVERTIBLE NOTE PURCHASE AGREEMENT

 

Up to $5,000,000 Principal Amount

Convertible Notes

 

 

January 7, 2014

 

Kingston Diversified Holdings LLC

535 Burleigh Private

Ottawa, Ontario K1J 1J9

Canada

 

The undersigned, LiveDeal,
Inc., a Nevada corporation (the “Company”), proposes to issue and sell to Kingston Diversified Holdings LLC
(the “Purchaser”), for cash up to $5,000,000 in principal amount of the Company’s Convertible Notes (collectively,
the “Notes”). The Notes will be issued pursuant to and subject to the terms and conditions of this Agreement
(the terms “Agreement” or “Purchase Agreement” as used herein or in any Exhibit or Schedule
hereto shall mean this Agreement and the Exhibits and Schedules hereto individually and collectively as they may from time to time
be modified or amended).

 

As used in this Agreement,
the following terms shall have the following meanings:

 

“Affiliate”
means, with respect to any Person, a stockholder, executive officer, director, manager or any other Person directly or indirectly
controlling, controlled by or under common control with such Person, where “control” means the possession, directly
or indirectly, of power to direct or cause the direction of the management or policies of an entity.

 

“Approval
Date” means the date on which the Company receives approval of this Agreement and the transactions contemplated hereby
from the NASDAQ Capital Market, in form and substance reasonably satisfactory to the Company and Purchaser, following the Company’s
submission of a Listing of Additional Shares Application relating hereto.

 

“Business
Day” means a day other than a Saturday, Sunday or other day on which commercial banks in Nevada are authorized or required
by law to close.

 

“Change of
Control Transaction” means (a) a sale, lease or other disposition of assets or properties of the Company and its Subsidiaries
(calculated on a consolidated basis) having a book value of fifty-one percent (51%) or more of the book value of all the assets
and properties thereof, or (b) any transaction in which one or more persons (other than a holder of capital stock of the Company
on the First Closing Date, or an Affiliate of or successor to any such holder) shall after the First Closing Date directly or indirectly
acquire from the holders thereof, by purchase or in a merger, consolidation or other transfer or exchange of outstanding capital
stock, ownership of or control over capital stock of the Company (or securities exchangeable for or convertible into such stock
or interests) entitled to elect a majority of the Company’s Board of Directors or representing at least fifty-one percent
(51%) of the number of shares of common stock outstanding.

 

    	1

    	 

    

“Closing”
shall have the meaning set forth in Section 1.3 hereof.

 

“Code”
shall have the meaning set forth in Section 2.3 hereof.

 

“Common Stock”
means the common stock of the Company, par value $.001 per share; provided, however, that, in the event of any capital
reorganization or reclassification of the common stock of the Company, or any consolidation or merger of the Company with another
corporation, or the sale or transfer of all or substantially all of its assets to another corporation shall be effected in such
a way that holders of Common Stock shall be entitled to receive stock, securities or similar equity interests with respect to or
in exchange for common stock, then the term “Common Stock” shall mean, for all purposes, such stock, securities
or similar equity interests.

 

“Conversion
Shares” means Shares of Common Stock issued or issuable upon conversion of the Notes (but, for avoidance of doubt, shall
not include Warrant Shares).

 

“Disclosure
Reports” means all reports, schedules, forms, statements, and other documents required to be filed by the Company with
the Securities and Exchange Commission pursuant to the Securities Act and/or the Exchange Act, and the rules and regulations promulgated
under each, including pursuant to Section 13(a) or 15(d) of the Exchange Act, as well as all amendments to such filings and reports
and all exhibits and documents incorporated by reference therein or attached thereto, that have been filed as of the applicable
Closing.

 

“Effective
Date” means the date of this Agreement, as set forth above.

 

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

 

“Event of
Default” shall have the meaning set forth in Section 7 hereof.

 

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

 

“Excluded
Issuances” shall have the meaning set forth in Section 12.13 hereof.

 

“GAAP”
means generally-accepted accounting principles within the United States of America, consistently applied.

 

“Governmental
Authority” means any nation or government, any state or other political subdivision thereof and any entity exercising
executive, legislative, judicial, regulatory or administrative functions of or pertaining to government.

 

“Indemnified
Parties” shall have the meaning set forth in Section 12.6 hereof.

 

“Indemnifying
Parties” shall have the meaning set forth in Section 12.6 hereof.

 

    	2

    	 

    

“Material
Adverse Effect” shall have the meaning set forth in Section 3.3 hereof.

 

“Maturity
Date” means the second (2nd) anniversary of the Effective Date.

 

“New Price”
shall have the meaning set forth in Section 12.13 hereof.

 

“New Shares”
shall have the meaning set forth in Section 12.13 hereof.

 

“Notes”
shall have the meaning set forth in the Preamble.

 

“Organizational
Documents” means, as to any corporation, limited liability company or limited partnership (a) its certificate or articles
of incorporation or formation or certificate of limited partnership, and all amendments thereto, and (b) its bylaws, limited liability
company agreement or partnership agreement, and all amendments thereto.

 

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

 

“Purchaser”
shall have the meaning set forth in the Preamble.

 

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

 

“Securities”
means the Notes, the Conversion Shares, the Warrants and the Warrant Shares.

 

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

 

“Subsidiary”
of any Person means any corporation, partnership, joint venture, limited liability company, trust or estate of which (or in which)
more than 50% of (a) the issued and outstanding capital stock having ordinary voting power to elect a majority of the Board of
Directors of such corporation (irrespective of whether at the time capital stock of any other class or classes of such corporation
shall or might have voting power upon the occurrence of any contingency), (b) the interest in the capital or profits of such partnership,
joint venture or limited liability company or (c) the beneficial interest in such trust or estate is at the time directly or indirectly
owned or controlled by such Person, by such Person and one or more of its other Subsidiaries or by one or more of such Person’s
other Subsidiaries. Unless otherwise qualified, all references to a “Subsidiary” or to “Subsidiaries” in
this Agreement shall refer to a Subsidiary or Subsidiaries of the Company.

 

“Transaction
Documents” means the Purchase Agreement, the Notes and the Warrants.

 

“Warrants”
means the warrants, substantially in the form of Exhibit B hereto, issued or issuable upon conversion of the Notes.

 

“Warrant Holder”
or “Warrantholder” means the registered holder or holders of the Warrants or any related Warrant Shares.

 

“Warrant Shares”
means Shares of Common Stock issued or issuable upon exercise of the Warrants.

 

    	3

    	 

    

The Company and Purchaser
agree as follows:

 

Section 1.               
Purchase and Sale of the Notes.

 

1.1            
Issuance of the Notes. Subject to the terms and conditions of this Agreement, the Company agrees to sell to Purchaser,
and Purchaser agrees to purchase from the Company for cash, from and after the Approval Date until and including the Maturity Date,
one or more Notes in an aggregate principal amount of up to $5,000,000; provided, however, that no individual purchase
of Notes shall be in an amount that is less than $100,000. Either the Company or Purchaser shall have the right to cause the sale
and issuance of Notes pursuant to this Agreement, with each Note to be sold and issued upon at least three (3) Business Days advance
written notice from the Company or Purchaser, as applicable. Each Note sold and issued pursuant to this Agreement shall (a) be
dated as of the date of its issuance, (b) be substantially in the form of Exhibit A hereto with the blanks appropriately
completed in conformity herewith, (c) be payable on the Maturity Date, and (d) bear interest (based on a 360-day year counting
actual days elapsed) from the date of issuance thereof until due and payable, unless earlier prepaid in full or converted, at the
rate equal to eight percent (8.00%) per annum. All interest on each Note shall be payable in cash on the Maturity Date or upon
prepayment in full or conversion of such Note.

 

1.2             Payment of Purchase Price. The purchase price for each Note shall be (a) equal to ninety-five percent (95.00%) of
the principal amount of the applicable Note, reflecting a five percent (5.00%) discount at issuance, and (b) payable on the date
of issuance thereof in cash by wire transfer of immediately available funds pursuant to the Company’s written instructions.

 

1.3             Multiple Closings. The Company’s sale and issuance of Notes hereunder may occur in one or more closings (each
a “Closing”) between the Approval Date and the Maturity Date. Each Closing shall be subject to the satisfaction
or waiver of the conditions set forth in Section 4.1 hereof. The parties shall reasonably agree as to the time and place
for each Closing. At each Closing, the Company shall deliver to Purchaser the Note purchased by Purchaser, and Purchaser shall
deliver the purchase price (less any agreed deductions, including the discount contemplated by Section 1.2 hereof) by wire
transfer of immediately available funds pursuant to the Company’s written instructions.

 

Section 2.               
Intentionally Omitted.

 

Section 3.               
Representations and Warranties. In order to induce Purchaser to purchase the Notes, the Company hereby represents
and warrants to, and agrees with, Purchaser and its respective successors, endorsees and assigns that, as of the date hereof and
as of the date of each Closing, that, except as set forth in the Disclosure Reports:

 

3.1             No Default. No Event of Default and no event, condition, act or omission to act, which with the giving of notice
or the passage of time, or both, would constitute an Event of Default, has occurred and is continuing or will have occurred and
be continuing at the time of or immediately after the Closing Date.

 

    	4

    	 

    

 

3.2             
Organizational Documents. Each of the Company and its Subsidiaries has delivered or made available to Purchaser an
accurate and complete copy of its Organizational Documents and all amendments thereto.

 

3.3             
Existence and Qualification. Each of the Company and its Subsidiaries is a corporation, limited liability company
or limited partnership validly existing and in good standing under the laws of the jurisdiction of its incorporation or formation.
Each of the Company and its Subsidiaries is duly qualified to do business and in good standing as a foreign entity in each jurisdiction
where its failure to so qualify or be in good standing as a foreign entity could reasonably be expected to have a material adverse
effect on the business, operations, properties or financial condition of the Company and its Subsidiaries, taken as a whole, or
the ability of the Company and its Subsidiaries, taken as a whole, to perform their obligations under the Transaction Documents
(a “Material Adverse Effect”).

 

3.4             
Power and Authority. Each of the Company and its Subsidiaries has all necessary corporate, limited liability company
or partnership power and authority necessary to own, operate or lease its properties and assets and to conduct its business as
now conducted by it. The Company has all necessary corporate power and authority necessary to borrow under the Purchase Agreement
and to issue the Notes and, upon the conversion thereof, the Warrants, and to execute, deliver and perform the Transaction Documents
to which it is a party. The Company has taken all corporate action required to authorize the borrowings under the Purchase Agreement,
the issuance of the Notes and, upon the conversion thereof, the Warrants, and the execution, delivery and performance of the Transaction
Documents to which it is a party.

 

3.5             
Due Execution and Delivery. The Company has duly executed and delivered each of the Transaction Documents to which
it is a party. The certificates representing the Notes have been, and upon conversion of the Notes the Warrants will be, duly and
properly executed and delivered.

 

3.6             
Consents; Governmental Approvals. No consent or approval of any person, firm or corporation, and no consent, license,
approval or authorization of, or registration, filing or declaration with, any governmental authority, bureau or agency is required
to be obtained or made by or on behalf of the Company or any of its Subsidiaries in connection with the issuance of the Notes or
the Warrants, the execution, delivery or performance of any of the Transaction Documents or the completion of the transactions
contemplated thereby, except for the approval of the Board of Directors of the Company and the approval of the managers or general
partners of the Subsidiaries, as applicable, the approval of the stockholders of the Company and the approval of the members or
the limited partners of the Subsidiaries, as applicable, each of which shall have been obtained or made prior to the Closing Date.

 

3.7             
Binding Effect. Each of the Transaction Documents to which the Company is a party is its legal, valid and binding
obligation, enforceable against the Company in accordance with its terms.

 

    	5

    	 

    

 

3.8             Absence of Conflicts. The issuance of the Notes and the Warrants by the Company, and the execution, delivery and
performance of the Transaction Documents by the Company do not and will not (a) conflict with or violate any provision of the Organizational
Documents of the Company or the Subsidiaries, (b) conflict with or result in a violation, breach or default by the Company or any
of its Subsidiaries under (i) any provision of any existing statute, law, rule or regulation binding on it or any order, judgment,
award, decree, license or authorization of any court or governmental instrumentality, authority, bureau or agency binding on it,
or (ii) any mortgage, indenture, lease or other contract, agreement, instrument or undertaking to which it is a party or will be
a party immediately after the Closing Date, or by which or to which it or any of its property or assets is now or immediately after
the Closing Date will be bound or subject, or (c) result in the creation or imposition of any lien, encumbrance or other charge
on any of its properties or assets, except for liens permitted by Section 6.1 or liens in favor of Purchaser created by
the Purchase Agreement and Transaction Documents, except in the case of clause (b) for violations, breaches or defaults that would
not reasonably be expected to have a Material Adverse Effect.

 

3.9             Litigation. No litigation, proceedings or investigations of or before any court, arbitrator or governmental authority
are currently pending or threatened against Company or any of its Subsidiaries or pending or threatened against any other person,
firm or corporation, which (a) question the validity or the enforceability of, or otherwise seek to restrain the performance of,
any of the Transaction Documents or any actions taken or to be taken thereunder, (b) in any one case are material, or (c) in the
aggregate are reasonably likely to have a Material Adverse Effect.

 

3.10           No
Defaults; Adverse Changes. Neither the Company nor any of its Subsidiaries is, or immediately after the Closing Date will
be, in default under or in violation of (a) its Organizational Documents, (b) any agreement or instrument to which it is a party
or will then be a party, (c) any statute, rule, writ, injunction, judgment, decree, order or regulation of any court or governmental
authority having jurisdiction over it, or (d) any license, permit, certification or approval requirement of any customer, supplier,
governmental authority or other person, in any way that, in the case of (b), (c) or (d) above, could reasonably be expected to
have a Material Adverse Effect. There is no proposed legislative or regulatory change, any threatened or pending revocation of
any license or right to do business with respect to the Company or any of its Subsidiaries, or any threatened or pending labor
trouble, condemnation, requisition or embargo that could reasonably be expected to have a Material Adverse Effect.

 

3.11           Financial
Statements. Purchaser has been furnished with the audited consolidated financial statements of the Company and its Subsidiaries
for the most recently competed fiscal year as required by Section 5.1.1 and the unaudited consolidated financial statements
of the Company and its Subsidiaries for the most recently competed fiscal quarter as required by Section 5.1.2. Such financial
statements have been prepared in accordance with GAAP, consistently applied, and fairly present the financial condition and the
results of operations of the Company and its Subsidiaries, as the case may be, subject, in the case of interim financial statements,
to (a) year-end adjustments, which individually and in the aggregate will not be materially adverse, and (b) the absence of footnotes.

 

Section 4.                Conditions
Precedent. The obligation of Purchaser to purchase Notes hereunder at each Closing shall be subject to the satisfaction of
each of the following conditions precedent on the date of such Closing:

 

    	6

    	 

    

 

4.1             
Representations. All representations and warranties made in Section 3 of this Agreement and in any other agreement,
certificate or instrument furnished to Purchaser in connection herewith, shall be true and correct with the same force and effect
as though such representations and warranties had been made at the time of, and immediately after giving effect to, the sale of
the Notes on the Closing Date.

 

4.2             
No Default. At the time of and immediately after giving effect to the sale of the Notes on the Closing Date there
shall exist no Event of Default and no condition, event or act that, with the giving of notice or lapse of time, or both, would
constitute such an Event of Default.

 

4.3             
No Adverse Change. There shall have been (a) since the most recently competed fiscal year, no material adverse change
in the assets, business, operations, properties or financial condition of the Company and its Subsidiaries, taken as a whole, (b)
no material adverse change or disruption in the financial markets, the capital markets or the industries of the Company and its
Subsidiaries that could affect the Company or Purchaser, and (c) no litigation commenced which, if successful, could reasonably
be expected to have a Material Adverse Effect or which would in any way interfere with the transactions contemplated by this Agreement.

 

4.4             
Additional Documents. Purchaser shall have received all such other agreements, documents, instruments, approvals,
certificates, opinions and information as Purchaser shall reasonably request in connection with this Agreement, the Notes, the
Warrants, the other Transaction Documents and the transactions herein and therein contemplated, including, without limitation,
those specified in the list of closing documents delivered by Purchaser to the Company, all of which shall be in form and substance
reasonably satisfactory to Purchaser and its counsel.

 

Section 5.               
 Affirmative Covenants. The Company covenants and agrees that it will:

 

5.1            
Financial Statements and Information. Furnish or cause to be furnished to Purchaser the following financial statements
and information:

 

5.1.1       
As soon as available, but in any event within ninety (90) days after the close of each fiscal year of the Company, audited
consolidated and unaudited consolidating balance sheets of the Company and of each of its Subsidiaries as of the close of such
fiscal year, and audited consolidated and unaudited consolidating statements of income and retained earnings and cash flows of
the Company and of each of its Subsidiaries for such fiscal year, together with (a) copies of the reports and certificates
relating thereto of independent certified public accountants of recognized standing selected by the Company and reasonably satisfactory
to Purchaser, (b) such accountants’ letter to management relating to such financial statements, and (c) a report of the chief
executive officer or the chief financial officer of the Company containing management’s discussion and analysis of the Company’s
financial condition, results of operations and affairs for such year.

 

    	7

    	 

    

 

5.1.2       
As soon as available but in any event within forty-five (45) days after the close of each quarter of each fiscal year of
the Company, unaudited consolidated and consolidating balance sheets of the Company and of each of its Subsidiaries as of the last
day of such quarter and unaudited consolidated and consolidating statements of income and retained earnings and cash flows of the
Company and of each of its Subsidiaries for such quarter and for the period from the beginning of the fiscal year to the end of
such quarter, each such balance sheet and statement of income and retained earnings and changes in financial position to be certified
by the chief executive officer and the chief financial officer of the Company, in his individual capacity, as fairly presenting
in all material respects the financial condition and results of operation of the Company or such Subsidiary, provided that
any such certificate may state that the accompanying balance sheet and statements are subject to normal year-end adjustments.

 

5.2             Corporate
Existence and Business. Maintain, and cause each Subsidiary to maintain, its separate corporate, limited liability company
or partnership existence, as applicable, and its qualification and good standing in all States in which the failure to so qualify
or be in good standing could reasonably be expected to have a Material Adverse Effect; and carry on business of the same general
types presently conducted by it.

 

5.3             Insurance. Maintain, and cause each Subsidiary to maintain, insurance to such extent and covering such risks as shall
be required by law or by any agreement to which the Company or such Subsidiary is a party, and in any event, insurance with such
limits and covering such risks as is customary for companies engaged in the same or a similar business in the same general areas,
and cause each such policy to be endorsed to provide Purchaser at least thirty (30) days’ prior written notice of any cancellation,
non-renewal or amendment. Promptly give notice to Purchaser of any cancellation or lapse in coverage of any policy of insurance
maintained by the Company or any Subsidiary

 

5.4             Access to Properties and Information. (a) Provide and cause its Subsidiaries to provide such information concerning
the operations of the Company and of its Subsidiaries as Purchaser may from time to time reasonably request in writing; (b) upon
reasonable advance notice permit, and cause each Subsidiary to permit, representatives of Purchaser full and free access during
normal business hours to its management personnel, properties, books and records, allow and cause each Subsidiary to allow the
members of its management to discuss the affairs, finances and business of the Company and such Subsidiary with Purchaser, and
permit and cause each Subsidiary to permit Purchaser to consult with and advise its directors and officers on the management of
its business; and (c) upon request by a Purchaser, direct, and cause each Subsidiary to direct, its independent accountants to
discuss the affairs, finances and business of the Company and its Subsidiaries with Purchaser.

5.5             Notices.
Promptly give notice to Purchaser of (a) any litigation, proceeding, investigation or claim that relates in whole or in part to
this Agreement or any of the Notes and the Warrants, (b) any litigation, proceeding, investigation or claim against or, after
the Company becomes aware of the same, affecting the Company or any Subsidiary that can reasonably be expected to materially adversely
affect the financial condition or business of, or to result in a material liability of or judgment or order against, the Company
and its Subsidiaries (taken as a whole), whether or not covered by insurance, or (c) the occurrence or claimed occurrence of an
Event of Default specified in Section 7. The Company shall furnish to Purchaser from time to time all information that
Purchaser shall reasonably request with respect to the status of any such litigation, proceeding, investigation or claim to which
the Company or any Subsidiary is a party.

 

    	8

    	 

    

 

5.6              Obligations.
Pay, discharge or otherwise satisfy, and cause each Subsidiary to pay, discharge or otherwise satisfy, all its obligations and
liabilities, whether for labor, materials, supplies, services or anything else, before they become delinquent, except to the extent
that (a) appropriate reserves therefor have been provided on its books and the validity or amount of such liability or obligation
is being contested in good faith and by appropriate proceedings, and (b) the failure to pay or discharge the same could not reasonably
be expected to have a Material Adverse Effect.

 

5.7             
Maintenance of Property. Maintain, keep and preserve, and cause each Subsidiary to maintain, keep and preserve, all
of its properties used or useful in its business in good repair, working order and condition (ordinary wear and tear excepted)
and from time to time make all necessary and proper repairs, renewals, replacements and improvements thereto; and maintain, preserve
and protect all licenses, copyrights, patents and trademarks owned or held under license and material to the business of the Company
or any Subsidiary (excluding any owned by suppliers of the Company and its Subsidiaries).

 

5.8             
Maintenance of Records. Keep and cause its Subsidiaries to keep proper books of record and account in which full,
true and correct entries will be made, in accordance with generally accepted accounting principles, of all dealings or transactions
of or in relation to the business and affairs of the Company and its Subsidiaries.

 

5.9             
Compliance with Applicable Law. Comply, and cause each Subsidiary to comply, with each statute, law, rule, regulation,
order or other governmental requirement, noncompliance with which (in any one instance or in the aggregate) is reasonably likely
to materially and adversely affect (a) the business, operations, property or financial condition of the Company and its Subsidiaries
taken as a whole, or (b) the Company’s ability to perform its obligations under the Transaction Documents.

 

5.10             Further
Assurances. Execute and deliver or cause to be executed and delivered such further instruments and do or cause to be done
such further acts as may be reasonably necessary to carry out this Agreement.

 

Section 6.                  Negative
Covenants. The Company covenants and agrees that it will not:

 

6.1              Liens
and Encumbrances. Contract, create, incur, assume or suffer to exist, or permit any of its Subsidiaries to contract, create,
incur, assume or suffer to exist, any mortgage, pledge, security interest, lien or other charge or encumbrance of any kind (including
the charge upon property purchased under any conditional sale or other title retention agreement) upon or with respect to any
of its or their property or assets, whether now owned or hereafter acquired, except:

 

6.1.1       
Liens in connection with worker’s compensation, unemployment insurance or other social security or similar obligations;

 

    	9

    	 

    

 

6.1.2       
Deposits or pledges securing the performance of bids, tenders, contracts (other than deposits of cash to secure the payment
of money by the Company or any of its Subsidiaries), leases, statutory obligations, surety and appeal bonds and other obligations
of like nature made in the ordinary course of business;

 

6.1.3       
Mechanics’, carriers’, landlords’, warehousemen’s, workers’, materialmen’s or other
like liens arising in the ordinary course of business with respect to obligations which are not due or which are being contested
in good faith;

 

6.1.4       
Liens for taxes, assessments, levies or governmental charges imposed upon the Company or its Subsidiaries or their respective
properties, operations, income, products or profits, which shall not at the time be due or payable or if the validity thereof is
being contested in good faith by appropriate proceedings;

 

6.1.5       
Reservations, exceptions, encroachments, easements, rights of way, covenants, conditions, restrictions and other similar
title exceptions or encumbrances affecting real property which do not materially detract from the value of the property affected
or materially interfere with the ordinary conduct of the business of the Company or any Subsidiary;

 

6.1.6       
Attachment, judgment and other similar liens arising in connection with court proceedings, provided that the execution
or other enforcement thereof is effectively stayed (including stays resulting from the filing of an appeal) within sixty (60) days
and the claims secured thereby are being contested in good faith by appropriate proceedings;

 

6.1.7       
Capital lease obligations or security interests securing purchase money indebtedness not otherwise prohibited hereunder,
provided that such security interests do not extend or attach to assets other than those acquired with the proceeds
of such indebtedness;

 

6.1.8       
Leases of real property; and

 

6.1.9       
Liens existing on the date hereof and set forth in the Disclosure Reports.

 

6.2             Loans.
Lend money or credit, or make or permit to be outstanding loans or advances, to any person, firm or corporation or other enterprise,
or permit any Subsidiary to lend, make or permit any of the foregoing, except (a) loans or advances in the nature of deposits
or prepayments to subcontractors, suppliers and others in the ordinary course of business, (b) loans or advances between Subsidiaries
and the Company, between Subsidiaries, and (c) loans or advances to employees, not exceeding $10,000 in the aggregate at any one
time outstanding.

 

6.3             Liquidation or other Disposition of Business. Except in connection with any merger or consolidation of the Company
with one or more of its Subsidiaries or the Subsidiaries with one or more other Subsidiaries, (a) wind up, liquidate its affairs
or dissolve, or permit any Subsidiary to do so; enter into any transaction of merger or consolidation or permit any Subsidiary
to do so, or (b) convey, sell, lease or otherwise dispose of all or (except inventory sold in the ordinary course of business)
any substantial part of its assets or properties, or permit any Subsidiary to do so.

 

    	10

    	 

    

 

6.4             
Indebtedness. Directly or indirectly create, incur or assume, or otherwise be, become or remain liable on, or permit
any Subsidiary to do so, any indebtedness for borrowed money or the deferred purchase price of property, any other liability evidenced
by bonds, debentures, notes or similar instruments, or under leases required to be capitalized in accordance with GAAP, except
for indebtedness evidenced by the Notes or otherwise contemplated by this Agreement.

 

6.5             
Affiliates. Purchase, acquire or lease any property from, or sell, transfer or lease any property to, or permit any
Subsidiary to do so, any Affiliate except (a) in transactions which are on terms comparable in all material respects to the terms
which would prevail in an arm’s-length transaction between unaffiliated third parties, and (b) in transactions between the
Company and any Subsidiary, or between Subsidiaries, not otherwise prohibited by this Agreement.

 

6.6             
ERISA. Terminate or withdraw, or permit any Subsidiary to terminate or withdraw, from any plan defined in Section
4021(a) of ERISA in respect of which the Company or any Subsidiary is an “employer” or a “substantial employer”
as defined in Sections 3(5) and 4001(a)(2) of ERISA, respectively, so as to result in any material liability of the Company or
any of its Subsidiaries to the PBGC pursuant to Subtitle A of Title IV of ERISA or material liability of the Company or any of
its Subsidiaries to such plan; engage, or permit any Subsidiary to engage, in any “prohibited transaction” (as defined
in Section 4975 of the Code) involving any such plan which would result in a material liability for an excise tax or civil penalty
in connection therewith; incur or suffer to exist, or permit any Subsidiary to incur or suffer to exist, any material “accumulated
funding deficiency” (as defined in Section 302 of ERISA), whether or not waived, involving any such plan; incur, or permit
any Subsidiary to incur, any withdrawal liability in connection with a “complete withdrawal” or a “partial withdrawal”,
as defined in Sections 4203 and 4205, respectively, of ERISA, with respect to any multiemployer plan as defined in Section 3(37)
of ERISA; establish, or permit any Subsidiary to establish, any new employee pension benefit plans; or increase or permit any Subsidiary
to increase the benefits under any employee pension benefit plans.

 

Section 7.                 
Events of Default. In the event that:

 

7.1             
The Company fails to pay (a) any principal of any Note when such amount becomes due in accordance with the terms thereof,
or (b) any interest on any Note or any other payment of money required to be made to any of Purchaser hereunder, within three (3)
days after such amount becomes due in accordance with the terms hereof; or

 

7.2             
Any representation or warranty made to Purchaser in this Agreement or in any certificate, agreement or instrument executed
and delivered to Purchaser by the Company or any Subsidiary or by its accountants or officers pursuant to this Agreement is false,
inaccurate or misleading in any material respect on the date as of which made; or

 

7.3             
(a) the Company defaults in the performance of any term, covenant, agreement, condition, undertaking or provision of Section
6 hereof, or (b) the Company defaults in the performance of any other term, covenant, agreement, condition, undertaking or
provision of this Agreement, any of the Notes or any other agreement or instrument executed and delivered to any of Purchaser (or
their agent) by the Company as provided in this Agreement or in connection with the transactions contemplated in this Agreement,
and such default is not cured or waived within thirty (30) days after the Company receives notice of such default from Purchaser
or from a third party; or

 

    	11

    	 

    

 

7.4             
the Company fails to pay any principal of or interest on any of its other material indebtedness for a period longer than
the grace period, if any, provided for such payment; or

 

7.5             
a Change of Control Transaction occurs; or

 

7.6             
(a) One or more final judgments, decrees or orders shall be entered against the Company or any Subsidiary involving in the
aggregate a liability (not fully covered by insurance other than applicable deductibles) of $100,000 or more and all such judgments,
decrees or orders shall not have been vacated, paid or discharged, dismissed, or stayed or bonded pending appeal (or other contest
by appropriate proceedings) within sixty (60) days from the entry thereof, (b) pursuant to one (1) or more judgments, decrees,
orders, or other proceedings, whether legal or equitable, any warrant of attachment, execution or other writ is levied upon any
property or assets of the Company or any Subsidiary and is not satisfied, dismissed or stayed (including stays resulting from the
filing of an appeal) within sixty (60) days, (c) all or any substantial part of the assets or properties of the Company or any
Subsidiary are condemned, seized or appropriated by any government or governmental authority, or (d) any order is entered in any
proceeding directing the winding up, dissolution or split-up of the Company or any Subsidiary; or

 

7.7             
(a) Any event occurs of a type described in Section 4043(b) of ERISA with respect to, or any proceedings are instituted
by the PBGC to have a trustee appointed to administer or to terminate, any plan referred to in Section 6.6 hereof, of the
Company or any Subsidiary, which event or institution of proceedings is, in the reasonable opinion of Purchaser, reasonably likely
to result in a termination of such plan and to have a material adverse effect upon the business, operations, assets or financial
condition of the Company and its Subsidiaries as a consolidated entity, or (b) a trustee shall be appointed by a United States
District Court to administer any such plan with vested unfunded liabilities that are material in relation to the business operations,
assets or financial condition of the Company and its Subsidiaries as a consolidated entity; or

 

7.8             
The Company (a) commences any case, proceeding or other action (i) under any existing or future law of any jurisdiction,
domestic or foreign, relating to bankruptcy, insolvency, reorganization or relief of debtors, seeking to have an order for relief
entered with respect to it, or seeking to adjudicate it bankrupt or insolvent, or seeking reorganization, arrangement, adjustment,
winding-up, liquidation, dissolution, composition or other relief with respect to it or its debts, or (ii) seeking appointment
of a receiver, trustee, custodian or other similar official for it or for all or any substantial part of its assets, or (b) is
the debtor named in any other case, proceeding or other action of a nature referred to in clause (a) above which (i) results in
the entry of an order for relief or any such adjudication or appointment or (ii) remains undismissed, undischarged or unbonded
for a period of sixty (60) days, or (c) takes any action in furtherance of, or indicating its consent to, approval of, or acquiescence
to, any order, adjudication or appointment of a nature referred to in clause (a) or (b) above, or (d) shall generally not be paying,
shall be unable to pay, or shall admit in writing its inability to pay its debts as they become due, or (e) shall make a general
assignment for the benefit of its creditors; or

 

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7.9               On
or at any time after the Closing Date (a) any of the Transaction Documents for any reason, other than a partial or full release
in accordance with the terms thereof, ceases to be in full force and effect or is declared to be null and void, or (b) the Company
contests the validity or enforceability of any Transaction Document in writing or denies that it has any further liability under
any Transaction Document to which it is party, or gives notice to such effect;

 

then, and in any such event (an “Event
of Default”), (x) if such event is of the type described in Section 7.8, the Notes shall automatically become
due and payable, or (y) in any other such event, and at any time thereafter, if such event shall then be continuing, subject to
the provisions of Section 8, Purchaser may, by written notice to the Company, declare due and payable the principal of,
and interest on, the Notes held by Purchaser, whereupon the same shall be immediately due and payable. In the event that any of
the Notes becomes or is declared due and payable prior to its stated maturity, the same shall become due and payable without presentment,
demand, protest or other notice of any kind, all of which are hereby expressly waived.

 

Section 8.                   Effectiveness
of Covenants; Consents.

 

8.1               Effectiveness
of Covenants. The covenants contained in this Agreement shall continue in full force and effect until the Notes and all other
indebtedness outstanding under this Agreement are paid in full whereupon they shall terminate and be of no further force or effect,
except that the covenants enumerated in the next sentence shall continue in full force and effect with respect to Purchaser holding
Warrants and Warrant Shares after the payment of the Notes and such other indebtedness. Any holder of Warrants or Warrant Shares
who does not also hold a Note shall be deemed a Purchaser hereunder with respect to such holder’s ownership of Warrants
or Warrant Shares solely for the purposes of Sections 5.1.1, 5.1.2, 5.4, 5.5, 6.5, 8,
9, 10, 11, and 12.

 

8.2               Consents
and Waivers. Any provision in this Agreement to the contrary notwithstanding, with the written consent of Purchaser, the Company
may be relieved from the effect of any Event of Default or from compliance with any covenant, agreement or undertaking contained
herein or in any instrument executed and delivered as herein provided, except the provisions for the payment or prepayment
of the Notes, and the provisions of the Warrants.

 

Section 9.                  Investment Representation. Purchaser acknowledges (a) that the Notes and the other Securities being acquired by Purchaser
are not being and will not be registered under the Securities Act on the ground that the issuance thereof is exempt from registration
under Section 4(2) of the Securities Act as not involving any public offering, and (b) that the Company’s reliance on such
exemption is predicated in part on the representation hereby made to the Company by Purchaser that it is an “accredited investor”
within the meaning of Regulation D promulgated under the Securities Act, and is acquiring the Notes and the other Securities for
investment for its own account, with no present intention of dividing its participation with others or reselling or otherwise distributing
the same, subject, nevertheless, to any requirement of law that the disposition of its property shall at all times be within its
control. Purchaser is not aware of any particular occasion, event or circumstance upon the occurrence or happening of which it
intends to dispose of the Notes or other Securities.

 

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Section 10.                 Transfers; Replacement of Notes.

 

10.1             Transfers.
Purchaser shall be entitled to assign and transfer all or any part of its Notes or Warrants, or any interest or participation
therein, and its related rights under this Agreement; and upon the assignment or transfer by Purchaser of all or any part of its
Notes or Warrants or its interest therein (except in public offering registered under the Securities Act, or a sale pursuant to
Rule 144 thereunder), the term “Purchaser” as used herein shall thereafter include, to the extent of the interest
so assigned or transferred, the assignee or transferee of such interest.

 

10.2             Issuance
of New Notes. The Company will at any time, at its expense, at the request of a holder of a Note, and upon surrender of such
Note for such purpose, issue a new Note or Notes in exchange therefor, payable to the order of the holder or such person or persons
as may be designated by such holder, dated the last date to which interest has been paid on the surrendered Note, or, if such
exchange shall take place prior to the due date of the first interest payment, the date of issuance of such original Note, in
such denominations as may be requested, in an aggregate principal amount equal to the unpaid principal amount of the Note so surrendered
and substantially in the form of such Note with appropriate revisions. Upon such exchange the term “Note” as used
herein shall include such new Note or Notes.

 

10.3             Replacement
of Notes. Upon receipt of evidence satisfactory to the Company of the loss, theft, destruction or mutilation of any Note and,
if requested in the case of any such loss, theft or destruction, upon delivery of an indemnity bond or other agreement or security
reasonably satisfactory to the Company, or, in the case of any such mutilation, upon surrender and cancellation of such Note,
the Company will issue a new Note, of like tenor and amount and dated the date to which interest has been paid, in lieu of such
lost, stolen, destroyed or mutilated Note; provided, however, if any Note of which Purchaser, its nominee, or any
of its partners is the holder is lost, stolen or destroyed, the affidavit of an authorized partner or officer of the holder setting
forth the circumstances with respect to such loss, theft or destruction shall be accepted as satisfactory evidence thereof, and
no indemnification bond, or other security shall be required as a condition to the execution and delivery by the Company of a
new Note in replacement of such lost, stolen or destroyed Note other than the holder’s written agreement to indemnify the
Company.

 

Section 11.                 Judicial
Proceedings.

 

11.1             Each
of the parties hereto irrevocably and unconditionally agrees to be subject to the exclusive jurisdiction of any Arizona State
or Federal court sitting in the City of Phoenix over any suit, action or proceeding arising out of or relating to this Agreement
or any of the Notes, Warrants or other Transaction Documents. To the fullest extent it may effectively do so under applicable
law, the Company irrevocably waives and agrees not to assert, by way of motion, as a defense or otherwise, any claim that it is
not subject to the jurisdiction of any such court, any objection that it may now or hereafter have to the laying of the venue
of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding brought
in any such court has been brought in an inconvenient forum.

 

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11.2             The
Company agrees, to the fullest extent they may effectively do so under applicable law, that a judgment in any suit, action or
proceeding of the nature referred to in Section 11.1 brought in any such court shall, subject to such rights of appeal
on issues other than jurisdiction as may be available, be conclusive and binding upon the Company and may be enforced in the courts
of the United States of America or the State of Arizona (or any other courts to the jurisdiction of which the Company is or may
be subject) by a suit upon such judgment.

 

11.3             Each
of the parties hereto hereby irrevocably and unconditionally agrees (1) to the extent such party is not otherwise subject to service
of process in the State of Arizona, to appoint and maintain an agent in the State of Arizona as such party’s agent for acceptance
of legal process, and (2) that, to the fullest extent permitted by applicable law, service of process may also be made on such
party by prepaid certified mail with a proof of mailing receipt validated by the United States Postal Service constituting evidence
of valid service, and that service made pursuant to (1) or (2) above shall, to the fullest extent permitted by applicable law,
have the same legal force and effect as if served upon such party personally within the State of Arizona.

 

11.4             Nothing
in this Section 11 shall affect the right of any of Purchaser to serve process in any manner permitted by law, or limit
any right that any of Purchaser may have to bring proceedings against the Company in the courts of any jurisdiction or to enforce
in any lawful manner a judgment obtained in one (1) jurisdiction in any other jurisdiction.

 

11.5             THE
COMPANY HEREBY EXPRESSLY WAIVES ANY RIGHTS IT MAY HAVE NOW OR HEREAFTER TO A JURY TRIAL IN ANY SUIT, ACTION OR PROCEEDING ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE NOTES, THE WARRANTS OR THE OTHER TRANSACTION DOCUMENTS.

 

11.6             Upon
breach or default by the Company with respect to any obligation hereunder, under the Notes, the Warrants or other Transaction
Documents, Purchaser (or their agents) shall be entitled to protect and enforce their rights at law, or in equity or by other
appropriate proceedings for specific performance of such obligation, or for an injunction against such breach or default, or in
aid of the exercise of any power or remedy granted hereby or thereby or by law.

 

Section 12.                 Miscellaneous.

 

12.1             Notices.
All notices, requests, demands or other communications to or upon the respective parties hereto shall be in writing and shall
be deemed to have been given or made, and all financial statements, information and the like required to be delivered hereunder
shall be deemed to have been delivered, five (5) days after deposited in the mails, registered or certified with postage prepaid,
addressed to the Company at 6240 McLeod Drive, Suite 120, Las Vegas, Nevada 89120, Attn: Accounting Department, and to Purchaser
at 535 Burleigh Private, Ottawa, Ontario K1J 1J9, Canada, or to such other address as any of them shall specify in writing to
the other. No other method of giving notice is hereby precluded. Upon the reasonable request of Purchaser, the Company will deliver
to Purchaser, at the Company’s expense, additional copies of all financial statements, information and the like required
hereunder.

 

    	15

    	 

    

 

12.2            Cumulative
Remedies, Etc. No failure or delay on the part of any of Purchaser in exercising any right, power or privilege hereunder,
and no course of dealing between the Company and Purchaser, or any of them, shall operate as a waiver thereof, nor shall any single
or partial exercise of any right, power or privilege hereunder preclude the simultaneous or later exercise of any other right,
power or privilege. The rights and remedies herein expressly provided are cumulative and not exclusive of any rights or remedies
which Purchaser, or any of them, would otherwise have. No notice to or demand on the Company in any case shall entitle the Company
to any other or further notice or demand in similar or other circumstances or constitute a waiver of the rights of Purchaser,
or any of them, to take any other or further action in any circumstances without notice or demand.

 

12.3            No
Oral Changes; Assignment; Survival of Representations. This Agreement may not be changed or terminated orally. This Agreement
shall be binding upon the Company and Purchaser and its successors and assigns. Neither the Company nor Purchaser shall not make
any assignment of its rights under this Agreement, the Notes, the Warrants or other Transaction Documents or subject this Agreement,
the Notes, the Warrants or other Transaction Documents or its rights hereunder to any lien or security interest of any kind whatsoever;
and any such assignment, lien or security interest shall be absolutely void and unenforceable as against Purchaser. All agreements,
representations and warranties made herein or in writing otherwise in connection herewith shall survive the issuance of the Notes
and the Warrants.

 

12.4            Expenses.
Each of the parties hereto agrees to pay all of its expenses arising in connection with the negotiation, preparation, execution,
delivery, administration, exercise of rights under and enforcement of, and any amendment, supplement or modification to, or waiver
of any provision of, this Agreement, the Notes, the Warrants, and the Transaction Documents, including without limitation all
documentary, stamp and similar taxes and assessments, all recording and filing fees and taxes charged by any governmental authority.

 

12.5            GAAP.
All calculations after the Closing Date shall be made and all financial statements and data generated after the Closing Date and
required hereby shall be prepared in accordance with GAAP (as in effect at the date of preparation) consistently applied, except
as otherwise expressly provided herein.

 

12.6            Indemnification
Generally. The Company and the Subsidiaries (collectively “Indemnifying Parties”) agree to indemnify and
hold harmless Purchaser, their respective Affiliates, partners, subsidiaries, directors, officers, employees, agents and representatives
(collectively, the “Indemnified Parties”) to the maximum extent permitted by law, from and against any and
all liability (including, without limitation, reasonable legal fees incurred in defending against any such liability) under, arising
out of or relating to this Agreement, the Notes, the Warrants and the other Transaction Documents, the transactions contemplated
hereby or thereby or in connection herewith or therewith, and all action or failures to act and the transactions contemplated
thereby, including (to the maximum extent permitted by law) any liability arising under Federal or state securities laws, except
to the extent such liability shall result from any act or omission on the part of the Indemnified Parties constituting willful
misconduct or gross negligence or the inaccuracy of representations in Section 9. The rights and obligations of the Indemnifying
Parties under this Section 12.6 shall survive and continue to be in full force and effect notwithstanding the Notes not
having been purchased, the repayment of the Notes, the expiration or repurchase of the Warrants or Warrant Shares and the termination
of this Agreement. The Indemnifying Parties shall not be liable to the Indemnified Parties for any punitive, exemplary or consequential
damages as a result of the transactions contemplated by this Agreement or the Transaction Documents.

 

    	16

    	 

    

 

12.7            Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada, without regard
to principles of conflict of laws. The parties hereto hereby declare that it is their intention that this Agreement shall be regarded
as made under the laws of the State of Nevada and that the laws of said State shall be applied in interpreting its provisions
in all cases where legal interpretation shall be required.

 

12.8            Execution
of Agreement. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original,
but all of which together shall constitute one and the same instrument. This Agreement may be executed by the parties’ exchange
of signature pages via facsimile, .pdf or similar electronic transmission, and any executed signature pages exchanged in such
fashion shall be deemed originals for all purposes.

 

12.9            Public
Announcements. None of the parties hereto shall issue any press release or other public statement concerning the transactions
provided for in this Agreement without the prior consent of the other parties, except to the extent required by applicable law,
regulation or legal process.

 

12.10          Captions;
Gender. The descriptive headings of the Sections of this Agreement are inserted for convenience only and shall not affect
the meaning, construction or interpretation of any of the provisions hereof. The use of the masculine form of a pronoun shall
be deemed, where appropriate, to include the masculine and feminine forms of such pronoun.

 

12.11          Legends. Certificates evidencing the Securities issued upon any conversion of the Notes and/or exercise of the Warrants
shall bear the following restrictive legend, in addition to any other legends determined to be necessary or appropriate in the
Company’s reasonable discretion:

 

THESE SECURITIES HAVE
NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION
FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE
OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE
STATE SECURITIES OR BLUE SKY LAWS. THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT.

 

    	17

    	 

    

 

12.12          NASDAQ
and Stockholder Approval Matters. The Company covenants and agrees to use commercially reasonable efforts to obtain, as promptly
as practicable, any approvals of the Company’s stockholders required under the Company’s Organizational Documents,
applicable law and/or the listing rules and regulations of the NASDAQ Capital Market in connection with the transactions contemplated
by this Agreement. Following such approval (if obtained via written consent in compliance with the Company’s Organizational
Documents and applicable law), the Company covenants and agrees to use commercially reasonable efforts to file with the SEC, as
promptly as practicable, an Information Statement on Schedule 14C describing this Agreement and the transactions contemplated
hereby. The parties acknowledge and agree that Purchaser shall not be entitled to convert any Notes, or exercise any Warrants,
into shares of Common Stock, unless and until (a) any required stockholder approvals are obtained and (b) the time period prescribed
by Rule 14c-2 promulgated under the Exchange Act has expired. Without limiting the generality of the foregoing, unless and until
stockholder approval of the transactions contemplated by this Agreement is obtained by the Company, in no event shall Purchaser
be entitled to convert any Notes, or exercise any Warrants, to the extent that any such conversion or exercise would result in
Purchaser acquiring in such transactions a number of shares of Common Stock exceeding 19.99% of the number of shares of Common
Stock issued and outstanding immediately prior to the Effective Date. Purchaser shall not be entitled to vote any shares of Common
Stock acquired by it pursuant to this Agreement or the other Transaction Documents in connection with any such stockholder approval
sought by the Company.

 

12.13          Anti-Dilution.
If, within the two (2)-year period following the issuance of any Note, the Company issues shares of its capital stock in connection
with a financing or an acquisition of, or merger or consolidation with, another entity (“New Shares”) at a
price that is less than the applicable conversion price or exercise price actually paid by Purchaser for any Conversion Shares
or Warrant Shares obtained pursuant to such Note (or the Warrant issuable upon conversion of such Note), as applicable (“New
Price”), then within ten (10) Business Days of such issuance, Purchaser shall be issued, without payment of any additional
consideration, additional shares of Common Stock so that such new shares when combined with the Conversion Shares and/or Warrant
Shares issued to Purchaser upon conversion of the applicable Notes and/or exercise of the applicable Warrants would equal the
number of shares of Common Stock Purchaser would have received had the applicable conversion price and/or exercise price been
the New Price. Notwithstanding the foregoing, the New Price may not be less than $0.70 per share. Notwithstanding the foregoing
or anything in this Agreement to the contrary, the following shall not be considered “New Shares” for purposes of
this Section 12.13 (collectively, the “Excluded Issuances” and each an “Excluded Issuance”):

 

12.13.1     
shares of capital stock issued upon conversion of, or exchange for, any outstanding (a) shares of any preferred stock, (b)
options, or (c) securities of the Company convertible into or exercisable for shares of the Company’s, in all cases that
are outstanding as of the First Closing Date;

 

    	18

    	 

    

 

12.13.2     
restricted stock or options issued to directors, officers, employees or consultants of the Company pursuant to the Company’s
existing stock incentive plan or any future stock incentive plan approved by the Company’s board of directors and stockholders;

 

12.13.3     
shares of Common Stock issued to officers, directors, employees, consultants, service providers or vendors in lieu of cash
payments otherwise due;

 

12.13.4     
warrants or convertible securities issued or issuable to banks, equipment lessors, lenders or other financial institutions,
or to real property lessors or in connection with a financing; or

 

12.13.5     
any securities deemed in writing to not be New Shares by Purchaser.

 

12.14          Preparation
of Document/Independent Counsel. After Purchaser and the Company negotiated among themselves, this Agreement was prepared
by Snell & Wilmer L.L.P, as legal counsel to the Company. Snell & Wilmer L.L.P. has not acted as legal counsel to any
other party, including Purchaser. Purchaser acknowledges that it has had the opportunity to review this Agreement with its own
legal counsel.

 

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

 

 

 

    	19

    	 

    

If you are in agreement
with the foregoing, please sign in the space provided below.

 

	 	
        COMPANY:

         

        LIVEDEAL, INC., a Nevada corporation

	 	 
	 	By:	/s/ Tony Isaac
	 	Name:	Tony Isaac
	 	Its:	Authorized Signatory

 

 

 

 

The foregoing is hereby accepted

and agreed to, as of the date

first above written, by Purchaser

signing below:

 

PURCHASER:

 

KINGSTON DIVERSIFIED
HOLDINGS LLC

 

 

	By:	/s/ Tudor Mihai Gavrila	 
	Name:	Tudor Mihai Gavrila	 
	Its:	Managing Member	 

 

 

 

[Signature Page – Convertible Note
Purchase Agreement] 

    	 

    	 

    

 

 

EXHIBIT A

 

Form of Note

 

(See attached)

 

 

 

 

 

 

    	A-1

    	 

    

 

 

EXHIBIT B

 

Form of Warrant

 

(See attached)

 

 

 

 

 

 

    	B-1

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