Document:

Exhibit 10.1

 

SECURITIES PURCHASE
AGREEMENT, dated as of April 13, 2015 (the “Agreement”), among CAPTAIN’S CREW LLC, a Rhode
Island limited liability company with offices located at 154 Thames Street, Newport, Rhode Island 02840 (the “Buyer”);
and STEVEN ALLEN FRIEDMAN, an individual with an address of 17 Meromei Hasodeh Street, Kiryat Sefer, Modiin Illit, Isreal
(the “Seller”).

 

 

INTRODUCTION

 

 

The Seller owns beneficially
and of record 18,000,000 restricted shares (the “Shares”) of common stock, par value $0.00001 per share (the
“Common Stock”) of Realco International, Inc., a Nevada corporation with offices located at 17 Meromei Hasodeh
Street, Kiryat Sefer, Modiin Illit, Isreal (the “Company”) representing at the date hereof approximately 94.79%
of the outstanding shares of Common Stock. The Buyer desires to acquire from the Seller, and the Seller desires to sell to the
Buyer, the Shares in accordance with, and subject to, the terms hereof.

 

NOW, THEREFORE, in consideration of
the premises and mutual representations, warranties and covenants herein contained, the parties hereby agree as follows:

 

ARTICLE I

 

CERTAIN DEFINITIONS

 

 

“Business Day” shall mean
any day which is not a Saturday or Sunday and is not a day on which banking institutions are generally authorized or obligated
to close in the City of New York, New York.

 

“Buyer” shall have the definition
assigned thereto in the introductory paragraph hereto.

 

“Closing” shall mean the
closing of the purchase by Buyer from the Seller of the Shares.

 

“Closing Date” shall have
the definition assigned thereto in Section 2.03(a) hereof.

 

“Code” shall have the definition
assigned thereto in Section 3.01(d).

 

“Common Stock” shall have
the definition assigned thereto in to introduction hereto.

 

“Company” shall have the
definition assigned thereto in the introductory paragraph hereto.

 

“Dispose Of” shall mean
to pledge, hypothecate, give away, sell, grant an option (other than pursuant hereto) with respect to, or otherwise transfer.

 

“Environmental Laws” shall
have the definition assigned thereto in Section 3.01(q).

 

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

 

“Escrow Agent” shall have
the definition assigned thereto in Section 2.01(a).

 

“Exchange Act” shall have
the definition assigned thereto in Section 3.01(a)(i).

 

“Existing Directors” shall
have the definition assigned thereto in Section 4.04.

 

“Investment Company Act”
shall have the definition assigned thereto in Section 3.01(n).

 

“Last Company Financial Statement
Date” shall mean December 31, 2014.

 

“Last Company Financial Statements”
shall mean the balance sheet, statement of income, and statement of cash flows, and the notes thereto, of the Company as of the
Last Company Financial Statement Date.

 

“New Directors” shall have
the definition assigned thereto in Section 4.04.

 

“Operating Subsidiary” shall
mean the existing wholly-owned subsidiary of the Company containing all of the assets, operations, and goodwill of the Company
and which has assumed all of the liabilities, contingencies, and obligations of the Company (other than those under this Agreement),
which liabilities, contingencies, and obligations were assumed with the consent of beneficiaries thereof, who also released the
Company therefrom.

 

“Purchase Price” shall have
the definition assigned thereto in Section 2.01 hereof.

 

“SEC” shall mean the United
States Securities and Exchange Commission.

 

“SEC Documents” shall have
the definition assigned thereto in Section 3.01(a)(i).

 

“Securities Act” shall mean
the Securities Act of 1933, as amended.

 

“Seller” shall have the
definition assigned thereto in the introductory paragraph hereto.

 

“Shares” shall have the
definition assigned thereto in the introduction hereto.

 

“Taxes” shall have the definitions
assigned thereto in Section 3.01(j).

 

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ARTICLE II

 

ACQUISITION AND EXCHANGE OF SHARES

 

Section 2.01The Agreement.
At the Closing, the Buyer shall acquire from the Seller, and the Seller shall sell to the Buyer, the Shares in exchange for
an aggregate purchase price (the “Purchase Price”) of $370,613.30 in cash, all of which has heretofore been
delivered by the Buyer to the escrow account maintained by Jody M. Walker, attorney at law (the “Escrow Agent”).

 

Section 2.02Closing; Exchanges.

 

(a)The Closing shall
take place on the date hereof (the “Closing Date”) at the offices of the Escrow Agent, or by electronic means,
as determined by the Buyer in its sole discretion.

 

(i)On the Closing Date,
the Seller shall deliver or cause to be delivered to Buyer, stock certificates evidencing the Shares, registered in the name of
the Buyer and/or the designees thereof.

 

(ii)The Buyer shall heretofore
have delivered to the escrow account maintained by Escrow Agent, the Purchase Price by electronic wire transfer in accordance with
instructions theretofore provided by the Escrow Agent to the Buyer;

 

(iii)At or before the
Closing Date, Seller will deliver to the Buyer and the Company a certificate in the form of Exhibit
2.02(a)(iii) hereto, dated the Closing Date, certifying that all representations, warranties, covenants, and conditions
set forth herein by Seller and the Company are true and correct as of, or have been fully performed and complied with by, the Closing
Date;

 

(iv)At or before the
Closing Date, the Buyer, or a duly appointed agent thereof, will deliver to the Seller one or more Certificates in the form of
Exhibit 2.02(a)(iv) hereto, dated the Closing Date, certifying that all
representations, warranties, covenants and conditions set forth herein by the Buyer are true and correct as of, or have been fully
performed and complied with by, the Closing Date; and

 

(v)At or before the Closing
Date, the Seller and the Buyer shall execute a cross-receipt in the form of Exhibit
2.02(a)(v) hereto.

 

(b)The Shares shall be authorized, issued,
and outstanding shares of Common Stock. All Shares shall be deemed “restricted securities” as defined in paragraph
(a) of Rule 144 under the Securities Act. The acquisition by the Buyer of the Shares shall be subject to an exemption from the
registration requirements of the Securities Act, under Section 4(1) of the Securities Act and the rules and regulations promulgated
thereunder. Certificates representing the Shares shall bear a restrictive legend in substantially the following form:

 

The shares represented by this
certificate have not been registered under the Securities Act of 1933, as amended, and may not be offered for sale, sold, or otherwise
disposed of, except in compliance with the registration provisions of such Act or pursuant to an exemption from such registration
provisions, the availability of which is to be established to the satisfaction of the Company.

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ARTICLE III

 

REPRESENTATIONS AND WARRANTIES

 

Section 3.01Representations
and Warranties of Seller. The Seller represents and warrants to, and agrees with, the Buyer as follows:

 

(a)(i)The Common Stock has not been
registered under Section 12(b) or 12(g) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
but the Company is subject to the periodic reporting requirements of Section 13 of the Exchange Act pursuant to Section 15(d) of
the Exchange Act.  The Company, since its formation, has filed all forms, reports, schedules, exhibits, statements, registrations
statements, prospectuses and other documents required to be filed or furnished by the Company with the SEC under the Securities
Act and/ or the Exchange Act, together with any amendments, restatements or supplements thereto, and will file all such forms,
reports, schedules, statements and other documents required to be filed subsequent to the date of this Agreement (the “SEC
Documents”). The Company has made available to the Buyer true, complete, and correct copies of all the SEC Documents,
including all certifications and statements required by Rules 13a-14 or 15d-14 under the Exchange Act, and the Sarbanes-Oxley Act.
The SEC Documents, including, without limitation, any financial statements and schedules included therein, at the time filed or,
if subsequently amended, as so amended, (i) did not contain any untrue statement of a material fact required to be stated therein
or necessary in order to make the statements therein not misleading or omit to state a material fact required to be stated therein
or necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading
and (ii) complied in all respects with the applicable requirements of the Securities Act, Exchange Act and Sarbanes-Oxley Act and
the applicable rules and regulations thereunder.

 

(ii)Except as otherwise disclosed in the
SEC Documents, the Company maintains disclosure controls and procedures required by Rule 13a-15 or 15d-15 under the Exchange Act;
such controls and procedures are effective to ensure that:

 

(A)all material information concerning
the Company is made known on a timely basis to the individuals responsible for the preparation of the Company’s filings with
the SEC and other public disclosure documents;

 

(B)transactions are executed in accordance
with management’s general or specific authorizations;

 

(C)transactions are recorded as necessary
to permit preparation of financial statements in accordance with generally accepted accounting principles and to maintain asset
accountability;

 

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(D)access to assets is permitted only in
accordance with management’s general or specific authorization; and

 

(E) the recorded accountability for assets
is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences.

 

The Seller has made available to the Buyer
copies of, all written descriptions of, and all policies, manuals and other documents promulgating, such disclosure controls and
procedures of the Company.  The books, records and accounts of the Company accurately and fairly reflect, in reasonable detail,
the transactions in, and dispositions of, the assets of, and the results of operations of, the Company all to the extent required
by generally accepted accounting principles.

 

(iii)The Chief Executive Officer and the
Chief Financial Officer of the Company has signed, and the Company has filed with or furnished to the SEC, as the case may be,
all certifications required by Sections 302 and 906 of the Sarbanes-Oxley Act of 2002; such certifications contain no qualifications
or exceptions to the matters certified therein and have not been modified or withdrawn; and neither the Company nor any of its
officers has received notice or communication from any governmental entity questioning or challenging the accuracy, completeness,
form or manner of filing or submission of such certifications. The Company’s Chief Executive Officer and Chief Financial
Officer have disclosed, based on their most recent evaluation, to the Company’s auditors and the Company’s board of
directors (x) all significant deficiencies in the design or operation of internal controls that could adversely affect the Company’s
ability to record, process, summarize and report financial data and have identified for the Company’s auditors any material
weaknesses in internal controls and (y) any fraud, whether or not material, that involves management or other employees who have
a significant role in the Company’s internal controls.

 

(iv)The Seller has made available to the
Buyer complete and correct copies of all certifications filed by the Company with, or furnished by the Company to, the SEC, as
the case may be, pursuant to Sections 302 and 906 of Sarbanes-Oxley Act of 2002 and hereby reaffirms, represents and warrants to
the Buyer the matters and statements made in such certificates.

 

(b)At the date hereof and at the Closing
Date:

 

(i) the Common Stock is eligible to
trade and be quoted on, and is quoted on, the OTCQB market maintained by OTC Markets, Inc. (the “OTCQB”) and
has received no notice or other communication indicating that such eligibility is subject to challenge or review by the any applicable
regulatory agency, electronic market administrator, or exchange;

 

(ii) the Company has and shall have
performed or satisfied all of its undertakings to, and of its obligations and requirements with, the SEC;

 

(iii) the Company has not, and shall
not have taken any action that would preclude, or otherwise jeopardize, the inclusion of the Common Stock for quotation on the
OTCQB; and

 

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(iv)the Common Stock is eligible for
participation in The Depository Trust Company (“DTC”) book entry system and has shares of Common Stock on deposit
at DTC.

 

(c)Except for Operating
Subsidiary, the Company has no subsidiaries or affiliated corporation or owns any interest in any other enterprise (whether or
not such enterprise is a corporation). The Company has been duly organized and is validly existing as a corporation in good standing
under the laws of the State of Nevada with full power and authority (corporate and other) to own, lease and operate its properties
and conduct its business as described in the SEC Documents; the Company is duly qualified to do business as a foreign corporation
and is in good standing in each jurisdiction in which the ownership or leasing of its properties or the conduct of its business
requires such qualification, except where the failure to be so qualified or be in good standing would not have a material adverse
effect on its business, prospects, condition (financial or otherwise), and results of operations of the Company; no proceeding
has been instituted in any such jurisdiction, revoking, limiting or curtailing, or seeking to revoke, limit or curtail, such power
and authority or qualification; the Company is in possession of, and operating in compliance with, all authorizations, licenses,
certificates, consents, orders and permits from state, federal, foreign and other regulatory authorities that are material to the
conduct of its business, all of which are valid and in full force and effect; the Company is not in violation of its charter or
bylaws or in default in the performance or observance of any obligation, agreement, covenant or condition contained in any material
bond, debenture, note or other evidence of indebtedness, or in any material lease, contract, indenture, mortgage, deed of trust,
loan agreement, joint venture or other agreement or instrument to which it is a party or by which it or its properties or assets
may be bound, which violation or default would have a material adverse effect on the business, prospects, financial condition or
results of operations of the Company; and the Company is not in violation of any law, order, rule, regulation, writ, injunction,
judgment or decree of any court, government or governmental agency or body, domestic or foreign, having jurisdiction over the Company
or over its properties or assets, which violation would have a material adverse effect on the business, prospects, financial condition
or results of operations of the Company taken as a whole. The SEC Documents accurately describe any corporation, association or
other entity owned or controlled, directly or indirectly, by the Company.

 

(d)The Seller has all
requisite power and authority to execute, deliver, and perform this Agreement. All necessary proceedings of Seller have been duly
taken to authorize the execution, delivery, and performance of this Agreement. This Agreement has been duly authorized, executed,
and delivered by Seller, constitutes the legal, valid, and binding obligation of Seller, and is enforceable as to Seller in accordance
with its terms. Except as otherwise set forth in this Agreement, no consent, authorization, approval, order, license, certificate,
or permit of or from, or declaration or filing with, any federal, state, local, or other governmental authority or any court or
other tribunal or any other third party is required by the Seller for the execution, delivery, or performance of this Agreement
thereby. No consent, approval, authorization or order of, or qualification with, any court, government or governmental agency or
body, domestic or foreign, having jurisdiction over Seller or over its properties or assets and no consent of any third party is
required for the execution and delivery of this Agreement and the consummation by Seller of the transactions herein and therein
contemplated, except such as may be required under the Securities Act or under state or other securities or blue sky laws, all
of which requirements have been, or in accordance therewith will be, satisfied in all material respects. No consent of any party
to any material contract, agreement, instrument, lease, license, arrangement, or understanding to which Seller or the Company is
a party, or to which its or any of its respective businesses, properties, or assets are subject, is required for the execution,
delivery, or performance of this Agreement; and the execution, delivery, and performance of this Agreement will not violate, result
in a breach of, conflict with, or (with or without the giving of notice or the passage of time or both) entitle any party to terminate
or call a default under, entitle any party to receive rights or privileges that such party was not entitled to receive immediately
before this Agreement was executed under, or create any obligation on the part of Seller or the Company to which it was not subject
immediately before this Agreement was executed under, any term of any such material contract, agreement, instrument, lease, license,
arrangement, or understanding, or violate or result in a breach of any term of the certificate of incorporation or by-laws or analogous
governing document of Seller (if applicable) or the Company or (if the provisions of this Agreement are satisfied) violate, result
in a breach of, or conflict with any law, rule, regulation, order, judgment, decree, injunction, or writ of any court, government
or governmental agency or body, domestic or foreign, having jurisdiction over Seller or over its properties or assets.

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(ii)Seller is an individual and has
reached the age of majority in his jurisdiction of residence.

 

(e)There is not any pending
or, to the best of Seller’s knowledge, threatened, action, suit, claim or proceeding against Seller or the Company, or any
of the Company’s officers or any of the respective properties, assets or rights of Seller or the Company, before any court,
government or governmental agency or body, domestic or foreign, having jurisdiction over Seller or the Company or over the Company’s
officers or the properties of Seller or the Company, or otherwise that (i) is reasonably likely to result in any material adverse
change in the business, prospects, financial condition or results of operations of Seller or the Company or might materially and
adversely affect its properties, assets, liabilities, or rights taken as a whole, (ii) might prevent consummation of the transactions
contemplated by this Agreement, or (iii) alleging violation of any Federal or state securities laws.

 

(f)The authorized capital stock of
the Company consists of 25,000,000 shares of Common Stock, of which 18,990,000 shares of Common Stock are outstanding. Each of
such outstanding shares of Common Stock is duly and validly authorized, validly issued, fully paid, and nonassessable, has not
been issued and is not owned or held in violation of any preemptive or similar right of stockholders. Except as disclosed in the
SEC Documents, (i) there is no commitment, plan, or arrangement to issue, and no outstanding option, warrant, or other right calling
for the issuance of, any share of capital stock of, or any security or other instrument convertible into, exercisable for, or exchangeable
for capital stock of, the Company, and (ii) there is outstanding no security or other instrument convertible into or exchangeable
for capital stock of the Company. When delivered by the Seller against payment therefor in accordance with the terms of this Agreement,
the Shares will be duly and validly issued and fully paid and nonassessable, and will be sold free and clear of any pledge, lien,
security interest, encumbrance, claim or equitable interest of any kind; and no preemptive or similar right, co-sale right, registration
right, right of first refusal or other similar right of stockholders exists with respect to any of the Shares or the issuance and
sale thereof other than those that have been expressly waived prior to the date hereof and those that will automatically expire
upon the execution hereof. No further approval or authorization of any stockholder, the Board of Directors of the Company or others
is required for the issuance and sale or transfer of the Shares, except as may be required under the Securities Act, the rules
and regulations promulgated thereunder or under state or other securities or blue sky laws. There are no shareholders agreements,
voting trusts or other agreements or understandings to which the Company is a party with respect to the voting of any issued shares
of the Company. The Company has no stock option, stock bonus and other stock plans or arrangements.

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(g)John Scudato, CPA, Califon, New
Jersey, examined the financial statements of the Company, together with the related schedules and notes, as of December 31, 2014
and for the period February 14, 2014 (inception) through December 31, 2014, filed with the SEC as a part of the SEC Documents,
are independent accountants within the meaning of the Securities Act, the Exchange Act, and the rules and regulations promulgated
thereunder; and the audited financial statements of the Company, together with the related schedules and notes, and the unaudited
financial information, forming part of the SEC Documents, fairly present and will fairly present the financial position and the
results of operations, changes in shareholders’ equity, and cash flows of the Company at the respective dates and for the
respective periods to which they apply; and all audited financial statements of the Company, together with the related schedules
and notes, and the unaudited financial information, filed with the SEC as part of the SEC Documents, complied and will comply as
to form in all material respects with applicable accounting requirements and with the rules and regulations of the SEC with respect
hereto when filed, have been and will be prepared in accordance with generally accepted accounting principles consistently applied
throughout the periods involved except as may be otherwise stated therein (except as may be indicated in the notes thereto or as
permitted by the rules and regulations of the SEC) and fairly present and will fairly present, subject in the case of the unaudited
financial statements, to customary year end audit adjustments, the financial position of the Company as at the dates thereof and
the results of its operations and cash flows. The procedures pursuant to which the aforementioned financial statements have been
audited are compliant with generally accepted auditing standards. The selected and summary financial and statistical data included
in the SEC Documents present and will present fairly the information shown therein and have been compiled on a basis consistent
with the audited financial statements presented therein. No other financial statements or schedules are required to be included
in the SEC Documents. The Company has no off-balance sheet arrangements. The Company is not subject to any material liabilities
or obligations of the type required to be reflected on a balance sheet prepared in accordance with generally accepted accounting
principles that is not adequately reflected or reserved on or provided for in the aforementioned financial statements. The financial
statements referred to in this Section 3.01(g) contain all certifications and statements required under the SEC’s Order,
dated June 27, 2002, pursuant to Section 21(a)(1) of the Exchange Act (File No. 4-460), Rule 13a-14 or 15d-14 under the Exchange
Act, or 18 U.S.C. Section 1350 (Sections 302 and 906 of the Sarbanes-Oxley Act of 2002) with respect to the report relating thereto.
Since the Last Company Financial Statement Date:

 

(i)there has at no time
been a material adverse change in the financial condition, results of operations, businesses, properties, assets, liabilities,
or future prospects of the Company.

 

(ii)the Company has not authorized, declared,
paid, or effected any dividend or liquidating or other distribution in respect of its capital stock or any direct or indirect redemption,
purchase, or other acquisition of any stock of the Company.

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(iii)there has at no time been any transaction
committed to or consummated that is material to the Company.

 

(iv)there has at no time been any obligation,
direct or contingent, that is material to the Company incurred by the Company, except such obligations as have been incurred in
the ordinary course of business and are disclosed in the SEC Documents.

 

(v)there has at no time been any change
in the capital stock or outstanding indebtedness of the Company that is material to the Company.

 

(vi)there has at no time been any loss
or damage (whether or not insured) to the property of the Company which has a material adverse effect on the business, prospects,
condition (financial or otherwise), or results of operations thereof.

 

(vii)except as set forth in the SEC Documents,
the operations and businesses of the Company have been conducted in all respects only in the ordinary course.

 

Other than a “going concern”
qualification in the report of the auditors with respect to the financial statements of the Company, there is no fact known to
Seller which materially adversely affects or in the future (as far as the Company can reasonably foresee) may materially adversely
affect the financial condition, results of operations, businesses, properties, assets, liabilities, or future prospects of the
Company; provided, however, that neither Seller nor the Company expresses any opinion as to political or economic matters of general
applicability. The Company has made known, or caused to be made known, to the accountants or auditors who have prepared, reviewed,
or audited the aforementioned consolidated financial statements all material facts and circumstances which could affect the preparation,
presentation, accuracy, or completeness thereof.

 

(h)There are no existing
or future liabilities or obligations between the Company and any (i) present or former director, officer, employee or affiliate
of the Company, or any family member of any of the foregoing, or (ii) record or beneficial owner of more than five percent (5%)
of the Common Stock as of the date hereof.

 

(i)At the Closing, (A)
the Company shall have no properties or assets other than those described in the SEC Documents, all of which are and shall be held
exclusively by Operating Subsidiary, and the Company shall be free and clear of any pledge, lien, security interest, encumbrance,
claim or equitable interest, and (B) the Company shall be party to no agreements except for this Agreement, which shall be a legal,
valid and binding agreement, enforceable against the Company in accordance with its terms. The Seller represents that the Company
does not own or lease any real or personal property.

 

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(j)The Company has and at the Closing shall
have no liability of any nature, accrued or contingent, including, without limitation, liabilities for federal, state, local, or
foreign taxes and penalties, interest, and additions to tax (“Taxes”), and liabilities to customers or suppliers.
Without limiting the generality of the foregoing, the amounts set up as provisions for Taxes, if any, in the Last Company Financial
Statements are sufficient for all accrued and unpaid Taxes of the Company, whether or not due and payable and whether or not disputed,
under tax laws, as in effect on the Last Company Financial Statement Date or now in effect, for the period ended on such date and
for all fiscal periods prior thereto. The execution, delivery, and performance of this Agreement by Seller will not cause any Taxes
to be payable (other than those that may possibly be payable by Seller as a result of the sale of the Shares owned beneficially
and/or of record by the Seller) or cause any lien, charge, or encumbrance to secure any Taxes to be created either immediately
or upon the nonpayment of any Taxes other than on the properties or assets of the Seller. The Company has filed all federal, state,
local, and foreign tax returns required to be filed by it; has made provided to the Buyer a true and correct copy of each such
return which was filed in the past six years; has paid (or has established on the last balance sheet included in the Last Company
Financial Statement a reserve for) all Taxes, assessments, and other governmental charges payable or remittable by it or levied
upon it or its properties, assets, income, or franchises which are due and payable; and has delivered to the Buyer a true and correct
copy of any report as to adjustments received by it from any taxing authority during the past six years and a statement as to any
litigation, governmental or other proceeding (formal or informal), or investigation pending, threatened, or in prospect with respect
to any such report or the subject matter of such report. The Company has paid all taxes payable thereby due on or prior to the
date hereof.

 

(k)Except as disclosed
in the SEC Documents, the Company does not have any insurance; the Company has at no time been refused any insurance coverage sought
or applied for.

 

(l)(i)The Company
has no employees other than the Seller. No labor disturbance by the employees of the Company exists or, to the best of the Seller’s
knowledge, is imminent. The Seller is not aware of any existing or imminent labor disturbance by the employees of any principal
suppliers or customers of the Company that might be expected to result in any material adverse change in the business, prospects,
financial condition, or results of operations of the Company. No collective bargaining agreement exists with any of the Company’s
employees and, to the best of Seller’s knowledge, no such agreement is imminent.

 

(ii)The Company does not have, or contribute
to, and has never maintained or contributed to, any pension, profit-sharing, option, other incentive plan, or any other type of
Employee Benefit Plan (as defined in Section 3(3) of ERISA) or Pension Plan (as defined in ERISA) and the Company does not have
any obligation to or customary arrangement with employees for bonuses, incentive compensation, vacations, severance pay, sick pay,
sick leave, insurance, service award, relocation, disability, tuition refund, or other benefits, whether oral or written.

 

(m)The Company has no,
and has no rights to use, patents, patent rights, inventions, trade secrets, know-how, trademarks, service marks, trade names,
logos, or copyrights. The Company has not received any notice of, or has knowledge of, any infringement of or conflict with asserted
rights of the Company by others with respect to any patents, patent rights, inventions, trade secrets, know-how, trademarks, service
marks, trade names, logos, or copyrights; and the Company has not received any notice of, or has no knowledge of, any infringement
of, or conflict with, asserted rights of others with respect to any patents, patent rights, inventions, trade secrets, know-how,
trademarks, service marks, trade names, logos, or copyrights described or referred to in the SEC Documents as owned by or used
by it or which, individually or in the aggregate, in the event of an unfavorable decision, ruling or finding, would have a material
adverse effect on the business, prospects, financial condition or results of operations of the Company.

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(n)The Company has been
advised concerning the Investment Company Act of 1940, as amended (the “Investment Company Act”), and the rules
and regulations thereunder, and is not and will not become an “investment company” or a company “controlled”
by an “investment company” within the meaning of the Investment Company Act and such rules and regulations.

 

(o)(i)The Company
has not, and no person or entity acting on behalf or at the request of the Company has, at any time during the last five years
(i) made any unlawful contribution to any candidate for foreign office or failed to disclose fully any contribution in violation
of law, or (ii) made any payment to any federal or state governmental officer or official, or other person charged with similar
public or quasi-public duties, other than payments required or permitted by the laws of the United States or any other applicable
jurisdiction.

 

(ii)Neither the Company, nor any director,
officer, agent, employee, or other person associated with, or acting on behalf of, the Company, has, directly or indirectly: used
any corporate funds for unlawful contributions, gifts, entertainment, or other unlawful expenses relating to political activity;
made any unlawful payment to foreign or domestic government officials or employees or to foreign or domestic political parties
or campaigns from corporate funds; violated any provision of the Foreign Corrupt Practices Act of 1977, as amended; or made any
bribe, rebate, payoff, influence payment, kickback, or other unlawful payment. The Company's internal accounting controls and procedures
are sufficient to cause the Company to comply in all respects with the Foreign Corrupt Practices Act of 1977, as amended.

 

(iii)Neither Seller or the Company,
nor any officer, director or affiliate of the Company, has been, within the five years ending on the Closing Date, a party to any
bankruptcy petition against such person or against any business of which such person was affiliated; convicted in a criminal proceeding
or subject to a pending criminal proceeding (excluding traffic violations and other minor offenses); subject to any order, judgment
or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily
enjoining, barring, suspending or otherwise limiting their involvement in any type of business, securities or banking activities;
or found by a court of competent jurisdiction in a civil action, by the SEC or the Commodity Futures Trading Commission to have
violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended or vacated.

 

(p)The Company has not,
and no person acting on behalf thereof, has taken or will take, directly or indirectly, any action designed to, or that might reasonably
be expected to cause or result in, stabilization in violation of law, or manipulation, of the price of the Common Stock to facilitate
the sale or resale of the Shares.

 

(q)Except as set forth
in the SEC Documents, (i) the Company is in compliance in all material respects with all rules, laws and regulations relating to
the use, treatment, storage and disposal of toxic substances and protection of health or the environment (“Environmental
Laws”) that are applicable to its business, (ii) the Company has not received notice from any governmental authority
or third party of an asserted claim under Environmental Laws, (iii) to the best knowledge of the Seller, the Company is not likely
to be required to make future material capital expenditures to comply with Environmental Laws (iv) no property which is owned,
leased or occupied by the Company has been designated as a Superfund site pursuant to the Comprehensive Response, Compensation,
and Liability Act of 1980, as amended (42 U.S.C. § 9601, et seq.), or otherwise designated as a contaminated
site under applicable state or local law, and (v) the Company is not in violation of any federal or state law or regulation relating
to occupational safety or health.

    	11

    	 

    

 

(r)As of the Closing,
there shall be no outstanding loans, advances or guarantees of indebtedness by the Company to, or for the benefit of, any of the
officers, directors, or director-nominees of the Company or any of the members of the families of any of them.

 

(s)The Company has not
incurred any liability, direct or indirect, for finders' or similar fees on behalf of or payable by the Company or the Buyer in
connection with the transactions contemplated hereby or any other transaction involving the Company and the Buyers.

 

(t)No stockholder of the Company has
any right to request or require the Company to register the sale of any shares owned by such stockholder under the Securities Act
on any registration statement.

 

(u)The Company is in compliance in
all material respects with, and is not in violation of, applicable federal, state, local or foreign statutes, laws and regulations
(including without limitation, any applicable building, zoning or other law, ordinance or regulation) affecting its properties
or the operation of its business, including, without limitation, Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated
pursuant thereto or thereunder. The Company is not subject to any order, decree, judgment or other sanction of any court, administrative
agency or other tribunal.

 

(v)The Company is not party to any
contract, agreement or arrangement other than this Agreement and as otherwise disclosed in the SEC Documents. The Company has assigned,
and Operating Subsidiary has assumed, all contracts of the Company other than this Agreement.

 

(w)The Seller acknowledges that simultaneously
herewith, a number of stockholders of the Company unaffiliated therewith are selling an aggregate of 985,000 free-trading shares
of Common Stock to certain third parties heretofore identified by the Buyer.

 

(x)When delivered by
Seller against payment therefor in accordance with the terms of this Agreement, the Shares delivered thereby will be duly and validly
issued and fully paid and nonassessable, and will be sold free and clear of any pledge, lien, security interest, encumbrance, claim
or equitable interest of any kind; and no preemptive or similar right, co-sale right, registration right, right of first refusal
or other similar right of stockholders exists with respect to any of the Shares to be delivered thereby hereunder or the issuance
and sale thereof other than those that have been expressly waived prior to the date hereof and those that will automatically expire
upon the execution hereof. No approval or authorization of any stockholder, the Board of Directors of the Company or others is
required for the issuance and sale or transfer of the Shares, except as may be required under the Securities Act, the rules and
regulations promulgated thereunder or under state or other securities or blue sky laws.

 

    	12

    	 

    

 

(y)(i)Seller is the sole record and
beneficial owner of the Shares, free and clear of any security interest, pledge, mortgage, lien (including, without limitation,
environmental and tax liens), charge, encumbrance, adverse claim, preferential arrangement or restriction of any kind, including,
without limitation, any restriction on the use, voting, transfer (except as otherwise provided herein), receipt of income or other
exercise of any attributes of ownership. The Shares to be delivered by Seller hereunder are not subject to any options, warrants,
convertible securities or other rights, agreements, arrangements or commitments of any character relating to interests therein.
There are no voting trusts, member agreements, proxies, or other agreements or understandings in effect with respect to the voting
or transfer of any of such Shares. Seller owns beneficially or of record, no shares of capital stock or other securities of the
Company, and does not own beneficially or of record, any securities exercisable for, or convertible into or exchangeable for, securities
of the Company.

 

(ii)Seller acquired the Shares owned
beneficially and of record thereby from the Company in private transactions not involving a public offering and, on the dates of
such acquisitions, such Seller paid the full purchase price therefor. The Shares are “restricted securities”
as defined in Rule 144(a) under the Securities Act.

 

(iii)Neither Seller nor any affiliate
thereof knows of any material adverse information regarding the current or prospective operations of the Company, which has not
been publicly disclosed.

 

(z)The Company has contributed to Operating
Subsidiary all of the assets, operations, and goodwill of the Company. Operating Subsidiary has assumed all of the liabilities,
contingencies, and obligations of the Company (other than those under this Agreement), which liabilities, contingencies, and obligations
were assumed with the consent of beneficiaries thereof, who also released the Company therefrom. The Company has delivered to the
Buyer a copy of each of such consents and releases, as well as all documents evidencing the contribution of assets, operations,
and goodwill described in this paragraph (z).

 

(aa)None
of the information supplied or to be supplied by the Company expressly for inclusion or incorporation by reference in (a) any Current
Report on Form 8-K or any other report, form, registration, or other filing made with any Governmental Authority with respect to
the transactions contemplated hereby or (b) the mailings or other distributions to the Company’s shareholders, when filed,
mailed or distributed, as applicable, contain any untrue statement of a material fact or omit to state any material fact required
to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they are made,
not misleading.

 
 
    	13

    	 

    

 

 

Section 3.02 Representations and
Warranties of the Buyer. The Buyer hereby represents and warrants to, and agrees with, the Seller:

 

(a)The Buyer has
all requisite power and authority to execute, deliver, and perform this Agreement. All necessary proceedings of the Buyer have
been duly taken to authorize the execution, delivery, and performance of this Agreement thereby. This Agreement has been duly authorized,
executed, and delivered by such Buyer, constitutes the legal, valid, and binding obligation of the Buyer, and is enforceable as
to the Buyer in accordance with its respective terms. Except as otherwise set forth in this Agreement, no consent, authorization,
approval, order, license, certificate, or permit of or from, or declaration or filing with, any federal, state, local, or other
governmental authority or any court or other tribunal is required by such Buyer for the execution, delivery, or performance of
this Agreement thereby. No consent, approval, authorization or order of, or qualification with, any court, government or governmental
agency or body, domestic or foreign, having jurisdiction over the Buyer or over its properties or assets is required for the execution
and delivery of this Agreement and the consummation by such Buyer of the transactions herein contemplated, except such as may be
required under the Securities Act or under state or other securities or blue sky laws, all of which requirements have been, or
in accordance therewith will be, satisfied in all material respects. No consent of any party to any material contract, agreement,
instrument, lease, license, arrangement, or understanding to which the Buyer is a party, or to which its or any of its businesses,
properties, or assets are subject, is required for the execution, delivery, or performance of this Agreement; and the execution,
delivery, and performance of this Agreement will not violate, result in a breach of, conflict with, or (with or without the giving
of notice or the passage of time or both) entitle any party to terminate or call a default under, entitle any party to receive
rights or privileges that such party was not entitled to receive immediately before this Agreement was executed under, or create
any obligation on the part of the Buyer to which it was not subject immediately before this Agreement was executed under, any term
of any such material contract, agreement, instrument, lease, license, arrangement, or understanding, or violate or result in a
breach of any term of the operating agreement of the Buyer or (if the provisions of this Agreement are satisfied) violate, result
in a breach of, or conflict with any law, rule, regulation, order, judgment, decree, injunction, or writ of any court, government
or governmental agency or body, domestic or foreign, having jurisdiction over the Buyer or over its properties or assets.

 

(b)The Buyer is an
“accredited investor” as defined in Rule 501 of Regulation D under the Securities Act. The Buyer is acquiring
the Shares to be acquired thereby hereunder for its own account (and not for the account of others) for investment and not with
a view to the distribution or resale thereof in violation of the Securities Act. The Buyer understands that it may not sell or
otherwise Dispose Of such Shares in the absence of either an effective registration statement under the Securities Act or an exemption
from the registration provisions of the Securities Act. The Buyer acknowledges being informed that the shares of Common Stock
acquired thereby shall be unregistered, shall be “restricted securities” as defined in Rule 144(a) under the
Securities Act, and must be held indefinitely unless (i) they are subsequently registered under the Securities Act, or (ii) an
exemption from such registration is available. The Buyer further acknowledges that the Company does not have an obligation to
currently register such securities for the account of the Buyer.

 

(c)By virtue of the Buyer’s position,
it has access to the same kind of information which would be available in a registration statement filed under the Securities Act.
The Buyer acknowledges that it has been afforded access to all material information which it has requested relevant to its decision
to acquire the Shares to acquired thereby and information which the Company was required to make available pursuant to the terms
of this Agreement and to ask questions of the Company’s management and that, except as set forth herein, neither Seller or
the Company nor anyone acting on behalf of Seller or the Company, has made any representations or warranties to the Buyer which
have induced, persuaded, or stimulated the Buyer to acquire such Shares.

 

    	14

    	 

    

 

(d)Either alone, or together with their
investment advisor(s), the Buyer has the knowledge and experience in financial and business matters to be capable of evaluating
the merits and risks of the prospective investment in the Shares to be acquired thereby, and the Buyer is and will be able to bear
the economic risk of the investment in such Shares.

 

ARTICLE IV

 

ADDITIONAL COVENANTS

 

Section
4.01Indemnity. Seller hereby agrees to indemnify and hold harmless the Buyer and its officers, directors, employees,
counsel, agents, and stockholders, in each case past, present, or as they may exist at any time after the date of this Agreement,
and each person, if any, who controls, controlled, or will control any of them within the meaning of Section 15 of the Securities
Act or Section 20(a) of the Securities Exchange Act of 1934, as amended, against any and all losses, liabilities, damages, and
expenses whatsoever (which shall include, for all purposes of this Article IV, but not be limited to, counsel fees and any and
all expenses whatsoever incurred in investigating, preparing, or defending against any litigation, commenced or threatened, or
any claim whatsoever, and any and all amounts paid in settlement of any claim or litigation) as and when incurred arising out
of, based upon, or in connection with (a) any material breach of any representation, warranty, covenant, or agreement of
Seller or the Company contained in this Agreement, (b) if the Closing takes place, any act or alleged omission occurring at or
prior to the Closing (including without limitation any which arise out of, are based upon, or are in connection with any of the
transactions contemplated hereby) which subjects the Buyer to damages related to the intentional act or intentional omission,
and (c) the products and operations of the Company, if any, prior to Closing. The foregoing agreement to indemnify shall
be in addition to any liability Seller may otherwise have, including liabilities arising under this Agreement.

 

Section 4.02Stockholders; Other
Securities. Seller hereby agrees that immediately prior to the Closing, the Company will have at least 25 stockholders.
At the Closing, all of the Company’s outstanding convertible debt, options, warrants and all other indebtedness of the Company
shall have been cancelled.

 

Section 4.03Assets and Liabilities.
Seller hereby agrees that, at the Closing, other than Operating Subsidiary, the Company shall have no assets and no liabilities.

 

Section 4.04Corporate Governance.
At the Closing, (a) the Board of Directors shall consist of one current director (the “Existing Director”)
and one director appointed by Buyer (the “New Director”), and (b) all officers of the Company shall resign and
the Board of Directors shall appoint the designees of Buyer as the sole officers thereof. Upon compliance by the Company with information
statement delivery requirements pursuant to Rule 14f-1 under the Securities Exchange Act of 1934, as amended, if applicable, or
upon the earlier request of Buyer, the Existing Director shall resign and the vacancy created thereby shall be filled by directors
designated by the New Director.

    	15

    	 

    

 

Section 4.05Further
SEC Filings.  The Seller shall cause each of the officers
and directors of the Company to do all such further acts as shall be required to permit the Company to file any required documents
(including 10-Ks, 10-Qs, 8-Ks, federal and state tax returns, or otherwise) to be filed at or following the closing of the transactions
contemplated hereby which reflect the business and operations of the Company prior to the Closing Date and through the years ending
December 31, 2016, and the quarterly periods ending on such date and prior thereto, and shall execute and deliver all certifications,
if any, required to be filed by the Company with respect to financial statements of the Company reflecting in whole or in part
the business and operations of the Company prior to such closing and through the years ending December 31, 2016, and the quarterly
periods ending on such date and prior thereto.

 

Section 4.06Title Tracing.
Buyer shall have received from Seller all information necessary, in the sole discretion of Buyer, to trace the title of the
Shares and the shares of Common Stock referenced in Section 3.01(w) hereof from original issuance through the date of the Closing
as well as the exemptions, if any, relied upon in connection therewith, and shall be satisfied therewith. Such information shall
include, without limitation, all subscriptions, securities purchase agreements, cancelled checks relating thereto, and bank statements
and deposit receipts of the Company unmarked and marked to indicate the dates upon which the subscription proceeds of each current
or former stockholder were deposited with such bank. The officers and directors of the Company and accountants and/or auditors
of the Company immediately prior to the Closing Date shall upon request provide to Buyer and the designees provide thereof written
confirmation of the accuracy and completeness of such information and any summary thereof prepared by or on behalf of any stockholder.

 

Section 4.07Other Purchases.
The acquisitions of shares of Common Stock contemplated by Section 3.01(w) hereof shall have closed.

 

Section 4.08Opinion. The
Buyer, third parties identified by Buyer acquiring the shares of Common Stock referenced in Section 3.01(w), and the transfer agent
for the Common Stock shall, at their request, have received an opinion of counsel to the Company immediately prior to the Closing
that (i) such securities may be resold following Closing without restriction or holding period in the case of shares acquired in
shares referenced in Section 3.01(w), (ii) such securities were issued in a transaction registered under the Securities Act, and
(iii) that the registration statement with respect to such registered transaction was declared effective by the SEC and has not
been the subject of any stop order, and did not contain any material misstamements or omissions or otherwise fail to comply with
the rules of the SEC in any material respect. Seller acknowledges that a form of such opinion has been provided to, and approved
by counsel to, the Seller prior to the date hereof.

    	16

    	 

    

 

 

ARTICLE V

 

MISCELLANEOUS

 

Section 5.01Expenses. Whether
or not the transactions contemplated in this Agreement are consummated, all costs and expenses incurred in connection with this
Agreement and the transactions contemplated hereby, will be paid by the party incurring such expense or as otherwise agreed to
herein.

 

Section 5.02Necessary Actions.
Subject to the terms and conditions herein provided, each of the parties hereto agrees to use all reasonable efforts to take,
or cause to be taken, all action and to do, or cause to be done, all things necessary, proper or advisable under applicable laws
and regulations to consummate and make effective the transactions contemplated by this Agreement. In the event at any time after
the Closing, any further action is necessary or desirable to carry out the purposes of this Agreement, the Seller, or the Buyer,
as the case may be, will take all such necessary action.

 

Section 5.03Notices. Any
notice or other communication required or permitted to be given hereunder shall be in writing and shall be mailed by certified
mail, return receipt requested or by the most nearly comparable method if mailed from or to a location outside of the United States
or by Federal Express, Express Mail, or similar overnight delivery or courier service or delivered (in person or by telecopy, telex,
or similar telecommunications equipment) against receipt to the party to which it is to be given at the address of such party set
forth in the introductory paragraph to this Agreement (or to such other address as the party shall have furnished in writing in
accordance with the provisions of this Section 5.03.) Any notice to the Company shall be addressed to the attention of the Corporate
Secretary. Any notice or other communication given by certified mail (or by such comparable method) shall be deemed given at the
time of certification thereof (or comparable act), except for a notice changing a party's address which will be deemed given at
the time of receipt thereof. Any notice given by other means permitted by this Section 5.03 shall be deemed given at the time of
receipt thereof.

 

Section 5.04Parties in Interest.
Except as expressly provided in Section 4.01 hereof, this Agreement will inure to the benefit of and be binding upon the parties
hereto and the respective successors and assigns. Nothing in this Agreement is intended to confer, expressly or by implication,
upon any other person any rights or remedies under or by reason of this Agreement.

 

Section 5.05Entire Agreement; Modification.
Except as otherwise expressly provided herein, this Agreement sets forth the entire understanding of the parties with respect to
the subject matter hereof, supersedes all existing agreements among them concerning such subject matter, and may be modified only
by a written instrument duly executed by each party hereto.

 

Section 5.06Availability of Equitable
Remedies. Since a breach of the provisions of this Agreement could not adequately be compensated by money damages, any
party shall be entitled, in addition to any other right or remedy available to it, to an injunction restraining such breach or
threatened breach and to specific performance of any such provision of this Agreement, and no bond or other security shall be required
in connection therewith, and the parties hereby consent to the issuance of such an injunction and to the ordering of specific performance.

    	17

    	 

    

 

Section 5.07 Survival. Each of
the covenants, agreements, representations, and warranties contained in this Agreement shall survive the Closing Date until the
date 18 months thereafter. The statements contained in any document executed by Seller relating hereto or delivered to the Buyer
in connection with the transactions contemplated hereby or thereby, or in any statement, certificate, or other instrument delivered
by, or on behalf of Seller pursuant hereto or thereto or delivered to the Buyer in connection with the transactions contemplated
hereby or thereby shall be deemed representations and warranties, covenants and agreements, or conditions, as the case may be,
of Seller hereunder for all purposes of this Agreement (including all statements, certificates, or other instruments delivered
pursuant hereto or thereto or delivered in connection with this Agreement, or any of the other transactions contemplated hereby).
The statements contained in any document executed by the Buyer relating hereto or delivered to either Seller or the Company in
connection with the transactions contemplated hereby or thereby, or in any statement, certificate, or other instrument delivered
by, or on behalf of, the Buyer pursuant hereto or thereto or delivered to either Seller or the Company in connection with the transactions
contemplated hereby or thereby shall be deemed representations and warranties, covenants and agreements, or conditions, as the
case may be, of the Buyer hereunder for all purposes of this Agreement (including all statements, certificates, or other instruments
delivered pursuant hereto or thereto or delivered in connection with this Agreement, or any of the other transactions contemplated
hereby).

 

Section 5.08Counterparts.
This Agreement may be executed in one or more counterparts, each of which will be deemed an original and all together will constitute
one document. The delivery by facsimile of an executed counterpart of this Agreement will be deemed to be an original and will
have the full force and effect of an original executed copy.

 

Section 5.09Severability. The
provisions of this Agreement will be deemed severable and the invalidity or unenforceability of any provision hereof will not affect
the validity or enforceability of any of the other provisions hereof. If any provisions of this Agreement, or the application thereof
to any person or any circumstance, is illegal, invalid or unenforceable, (a) a suitable and equitable provision will be substituted
therefor in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid or unenforceable
provision, and (b) the remainder of this Agreement and the application of such provision to other persons or circumstances
will not be affected by such invalidity or unenforceability, nor will such invalidity or unenforceability affect the validity or
enforceability of such provision, or the application thereof, in any other jurisdiction.

 

Section 5.10Headings. The
Article and Section headings are provided herein for convenience of reference only and do not constitute a part of this Agreement
and will not be deemed to limit or otherwise affect any of the provisions hereof.

 

    	18

    	 

    

 

Section 5.11 Governing Law.

 

(a)This Agreement will be deemed to be
made in and in all respects will be interpreted, construed and governed by and in accordance with the law of the State of New York,
without regard to the conflict of law principles thereof.

 

(b)EACH OF THE PARTIES HEREBY IRREVOCABLY
AND UNCONDITIONALLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND OF THE FEDERAL COURTS SITTING
IN THE STATE OF NEW YORK IN ALL ACTIONS OR PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT. EACH OF THE PARTIES AGREES
THAT ALL ACTIONS OR PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT MUST BE LITIGATED EXCLUSIVELY IN ANY SUCH STATE OR,
TO THE EXTENT PERMITTED BY LAW, FEDERAL COURT THAT SITS IN THE STATE OF NEW YORK, AND ACCORDINGLY, EACH PARTY IRREVOCABLY WAIVES
ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.
EACH PARTY FURTHER IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 5.03. NOTHING IN THIS
AGREEMENT OR ANY OTHER TRANSACTION DOCUMENT WILL AFFECT THE RIGHT OF ANY PARTY TO THIS AGREEMENT TO SERVE PROCESS IN ANY OTHER
MANNER PERMITTED BY LAW.

 

(c)EACH PARTY WAIVES ANY RIGHT IT MAY
HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH OF THE PARTIES (1) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT,
IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (2) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE
BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 5.11(c).

 

Section 5.12Extended Meanings.
In this Agreement words importing the singular number include the plural and vice versa; words importing the masculine gender include
the feminine and neuter genders. The word “person” includes an individual, body corporate, partnership, trustee or
trust or unincorporated association, executor, administrator or legal representative.

 

 

 

[REMAINDER OF PAGE INTENTIONALLY BLANK]

    	19

    	 

    

IN WITNESS WHEREOF, the parties hereto
have executed and delivered this Agreement in a manner legally binding upon them as of the date first above written.

 

 

 

	 	 	
        ________________ 

        Steven Allen Friedman

	
         

         

         
	 	
         

        CAPTAIN’S CREW LLC

         

         

        By: ___________

        Jay Lasky

        Managing Director

         

         

	 	 	 
	 	 	      

 

 

 

 

    	20Exhibit - Swanson 8-k

		

			 

		

		
			LINEAR TECHNOLOGY CORPORATION
		

		
			ROBERT H. SWANSON, JR.
		

		
			FOURTH AMENDED AND RESTATED EMPLOYMENT AGREEMENT
		

		
			 
		

		
			This Robert H. Swanson, Jr. Fourth Amended and Restated Employment Agreement (the “Agreement”) is entered into as of April 16, 2015 (the “Effective Date”) by and between Linear Technology Corporation (the “Company”) and Robert H. Swanson, Jr. (“Executive”).
		

		
			WHEREAS, Executive and the Company executed the Robert H. Swanson, Jr. Employment Agreement in January 2002 (the “Initial Employment Agreement”);
		

		
			WHEREAS, Executive has since resigned from his employment as Chief Executive Officer of the Company, but at the request of the Board of Directors of the Company (the “Board”) pursuant to Section 3(f) of the Initial Employment Agreement, has agreed to remain Executive Chairman of the Board; 
		

		
			WHEREAS, Executive and the Company executed the Robert H. Swanson, Jr. Amended and Restated Employment Agreement on October 18, 2005 (the “Amended Employment Agreement”); 
		

		
			WHEREAS, Executive and the Company executed the Robert H. Swanson, Jr. Second Amended and Restated Employment Agreement on November 5, 2008 (the “Second Amended Employment Agreement”); 
		

		
			WHEREAS, Executive and the Company executed the Robert H. Swanson, Jr. Third Amended and Restated Employment Agreement on December 18, 2012 (the “Third Amended Employment Agreement”); and 
		

		
			WHEREAS, Executive and the Company desire to revise the Third Amended Employment Agreement to redress certain unintended negative incentives in such agreement for the Executive to resign from the Company by providing him with certain severance benefits in the event of a termination of his service due to his death or Disability (as defined below).
		

		
			NOW, THEREFORE, in consideration of their mutual promises and intending to be legally bound, the parties agree as follows:
		

			
	
			
				 1.
			Duties and Scope of Employment.

			
	
			
				 (a)
			Positions; Agreement Commencement Date; Duties.  Following the Effective Date, Executive shall continue to serve as Executive Chairman of the Board, reporting to the Board.  The period of Executive’s employment hereunder is referred to herein as the “Employment Term.”  Subject to the provisions of Section 2, Executive and the Company anticipate that the Employment Term shall run for an indefinite time, but at least through the foreseeable future.  For purposes of clarification, however, regardless of when the Employment Term ends after the date of this Fourth Amended and Restated Employment Agreement, Executive shall be eligible to receive the severance benefits contained herein, subject to the terms and conditions of this Agreement.  During the Employment Term, Executive shall render such business and professional services in the performance of his duties, consistent with Executive’s position within the Company, as shall reasonably be assigned to him by the Board.

			
	
			
				 (b)
			Obligations.  During the Employment Term, Executive shall devote his business efforts and time to the Company two to three days per week.  Executive agrees, during the Employment Term, not to actively engage in any other employment, occupation or consulting activity for any direct or indirect remuneration without the approval of the Board that would result in a conflict of interest with the Company’s business.

			
	
			
				 2.
			At-Will Employment.  Executive and the Company understand and acknowledge that Executive’s employment with the Company constitutes “at-will” employment.  Subject to the Company’s obligation to provide severance benefits as specified herein, Executive and the Company acknowledge that this employment relationship may be terminated at any time, upon written notice to the other party, with or without good cause or for any or no cause, at the option either of the Company or Executive.

			
	
			
				 3.
			Compensation.

			
	
			
				 (a)
			Base Salary.  While employed by the Company, the Company shall pay the Executive as compensation for his services $506,000 (the “Base Salary”), prorated for the number of full days of service he performs as Executive Chairman of the Board.  Such salary shall be paid periodically in accordance with normal Company payroll practices and subject to the usual, required withholding.  Executive’s Base Salary shall be reviewed annually by the Compensation Committee of the Board (the “Committee”) for possible adjustments in light of Executive’s performance and competitive data.

			
	
			
				 (b)
			Bonuses.  Executive shall be eligible to earn a bonus under the Company’s 1996 Senior Executive Bonus Plan as specified by the Committee and will also be eligible to participate in the Key Employee Incentive Bonus Plan or any successor bonus plans to such plans (collectively, the “Bonus Plans”).  

		 

		

			 

		

 

		

			 

		

			
	
			
				(i)
			Executive’s target bonus (the “Target Bonus”) for any six-month period will be his target bonus for the previous six-month period increased or decreased by the same percentage the total bonus pool for the Bonus Plans for the six-month period in question increased or decreased compared to the previous six-month period.  By way of example only, if Executive’s Target Bonus for the first six-month period of a particular year is $1,000,000 and the total bonus pool for the Bonus Plans for the second six-month period of such year increases by 10% over the total bonus pool for the Bonus Plans for the first six-month period of such year, then Executive’s Target Bonus for second six-month period would be $1,100,000.  

			
	
			
				(ii)
			Executive’s actual bonus for any particular period will equal the actual bonus to which he would have otherwise been entitled for such period based upon the Target Bonus prorated for the number of full days of service he performs for the Company as Executive Chairman of the Board during such period, or alternatively in such lesser amount as the Committee deems appropriate, but in no event more than 50% of the Target Bonus for any relevant period.  By way of example only, if the actual bonus Executive would have been entitled to for a period if he had worked full time was the Target Bonus of $1,000,000, then (A) if the number of full days of service Executive performed during the period was 30% of full time, his actual bonus would be $300,000, and (B) if the number of full days of service Executive performed during the period was 60% of full time, then his actual bonus would be $500,000. 

			
	
			
				(iii)
			Any such bonus will be paid promptly following the determination of whether and to what extent that it has been earned, but in no event after the later of (i) March 15 of the calendar year following the calendar year in which such determination is made and no longer subject to a substantial risk of forfeiture, or (ii) two and one-half months following the end of the fiscal year of the Company in which such determination is made and no longer subject to a substantial risk of forfeiture.

			
	
			
				 (c)
			Benefits.  During the Employment Term, Executive shall be eligible to participate in the employee benefit plans maintained by the Company that are applicable to other senior management to the full extent provided for under those plans, including health and other welfare plan participation, use of the Company airplane and pilot(s) as set forth in Section 3(d) hereof, office space and secretary, but excluding participation in any Company employee stock purchase plan intended to qualify under Section 423 of the Internal Revenue Code of 1986, as amended (the “Code”) (as it has been and may be amended from time to time), and any Company 401(k) plan and any benefits and perquisites where continuing Executive’s participation would be either (i) contrary to statute or regulation, or (ii) highly impractical.

			
	
			
				 (d)
			Use of Company Airplane.  During the Employment Term, Executive shall be permitted to use, for personal purposes, the Company airplane and pilot(s), for up to 35% of the available flight time in any year; provided, however, that such use shall be subject to the Company’s reasonable policies and airplane usage requirements.  Executive shall be fully grossed-up for any imputed taxable income recognized by virtue of such use so that the net effect to Executive is the same as if there was no imputed income.  Executive will receive such payments no later than the end of the calendar year following the calendar year in which Executive remits the applicable taxes to the relevant tax authorities.

			
	
			
				 (e)
			Severance Prior to a Change of Control.

			
	
			
				(i)
			Voluntary Termination for Good Reason; Involuntary Termination Other Than for Cause.  If, prior to a Change of Control (as defined herein), Executive’s tenure as Executive Chairman of the Board, terminates due to (i) a voluntary termination for “Good Reason” (as defined herein) where the grounds for the Good Reason are not cured by the Company within 30 days following receipt of written notice specifying the grounds from Executive, or (ii) an involuntary termination by the Company other than for “Cause” (as defined herein), then, subject to Section 5, and subject to Executive executing and not revoking a standard form of mutual release of claims with the Company, which the Company shall provide to Executive no later than five (5) business days after the termination date  (the “Release”), and provided that the Release becomes effective and irrevocable no later than sixty (60) days following the termination date (such deadline, the “Release Deadline”), and subject to Executive not breaching the terms of Section 12 hereof:

			
	
			
				 (1)
			all of Executive’s Company stock options (together with other rights to purchase or receive Company common stock) and restricted stock (including restricted stock units and similar awards) shall immediately accelerate vesting as to 100% of the then unvested amount of such award; 

			
	
			
				 (2)
			Executive shall receive continued payments of severance pay for 12 months following the date of such termination at a rate equal to:

			
	
			
				 a)
			Executive’s annual Base Salary at the rate in effect on the date of such termination, plus 

			
	
			
				 b)
			two times the average of his Target Bonus (without respect to any proration for actual days of service performed or the 50% limitation, each as referred in Section 3(b)(ii) above) for the four six-month bonus 
		

		 

		

			 

		

 

		

			 

		

			periods prior to the date of such termination, which amount will be payable in equal installments over such 12-month period (for purposes of clarity, it is the intention of this paragraph that Executive receive under this paragraph an amount equal to a full year of (i.e., twice) the full amount of his average six-month Target Bonuses as if he were performing his duties as Executive Chairman  full time at the time of termination; by way of example only, if Executive’s Target Bonuses (without regard to his actual bonuses paid) were $1,000,000, $1,200,000, $800,000 and $1,000,000, respectively, in the four six-month periods prior to the date of termination, then the average six-month Target Bonus would be $1,000,000, and the annual bonus payable under this paragraph would be $2,000,000); 

		
			in each case, as if Executive had been performing services as Executive Chairman of the Board on a full-time basis up to the date of termination, with no proration or limitation on the amount of his actual compensation (e.g., Executive’s bonus would not be prorated or limited to 50% of his Target Bonus for any particular period based upon time actually worked), less applicable withholding and payable in accordance with the Company’s standard payroll practices (the “Severance Payment”); 
		

			
	
			
				 (3)
			the Company shall reimburse Executive for premiums paid for continued health and dental benefits for Executive and his covered dependents for the lesser of:

			
	
			
				 a)
			18 months from the date of Executive’s termination of employment, payable when such premiums are due (provided Executive validly elects to continue coverage under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”), or 

			
	
			
				 b)
			the date upon which Executive and his covered dependents are covered by similar plans of Executive’s new employer (the “COBRA Coverage”).

		
			For purposes of this Agreement, “Cause” shall mean (i) an act of personal dishonesty taken by Executive in connection with his responsibilities hereunder and intended to result in substantial personal enrichment of Executive; (ii) Executive being convicted of, or plea of nolo contendere to, a felony; (iii) a willful act by Executive which constitutes gross misconduct and which is injurious to the Company; and (iv) following delivery to Executive of a written demand for performance from the Company which describes the basis for the Company’s reasonable belief that Executive has not substantially performed his duties, continued violations by Executive of Executive’s obligations to the Company which are demonstrably willful and deliberate on Executive’s part.
		

		
			For purposes of this Agreement, “Good Reason” means, without Executive’s express consent, (i) a material reduction of Executive’s duties, title, authority or responsibilities, relative to Executive’s duties, title, authority or responsibilities as in effect immediately prior to such reduction, or the assignment to Executive of such reduced duties, title, authority or responsibilities; (ii) a material reduction, of the facilities and perquisites (including office space and location) available to Executive immediately prior to such reduction, other than a reduction generally applicable to all senior management of the Company; (iii) a reduction by the Company in the Base Salary of Executive as in effect immediately prior to such reduction; (iv) a material reduction by the Company in the aggregate level of employee benefits, including Target Bonuses, to which Executive was entitled immediately prior to such reduction with the result that Executive’s aggregate benefits package is materially reduced (other than a reduction that generally applies to Company employees); (v) the relocation of Executive to a facility or a location more than 35 miles from Executive’s then present location); or (vi) any act or set of facts or circumstances which would, under California case law or statute constitute a constructive termination of Executive; provided, however, that Executive agrees that Executive’s transition from Chief Executive Officer and Chairman of the Board to Chairman pursuant to Section 3(f) of the Initial Employment Agreement and the related reductions in pay, responsibilities and the like did not constitute Good Reason.
		

		
			Executive shall not be required to mitigate the value of any severance benefits contemplated by this Agreement, nor shall any such benefits be reduced by any earnings or benefits that the Executive may receive from any other source; provided, however, that if Executive receives severance benefits hereunder, he expressly waives the right to receive severance benefits under any other severance plan or policy of the Company.
		

			
	
			
				(ii)
			Voluntary Termination Other than for Good Reason; Involuntary Termination for Cause.  Except as provided otherwise in Sections 3(g) hereof, in the event Executive terminates his employment voluntarily other than for Good Reason or is involuntarily terminated by the Company for Cause, then all vesting of Executive’s stock options (together with other rights to purchase or receive Company common stock) and restricted stock (including restricted stock units and similar awards) shall terminate immediately and all payments of compensation by the Company to Executive hereunder shall immediately terminate (except as to amounts already earned).

			
	
			
				(iii)
			Timing of Payments.  Any severance payments under this Agreement subject to the signing of a Release shall be paid on (or, in the case of any such payments made in installments, shall not commence until) the Release Deadline, or, if later, such time as is required by Section 5 below, except that the acceleration of vesting of options or restricted stock shall become effective on the date the Release becomes effective and irrevocable.  Except as required by Section 5 below, any installment payments that would have been made to Executive during the sixty (60) day period immediately following Executive’s separation from service but for the preceding sentence shall be paid to Executive on the Release Deadline and the remaining payments shall be made as provided in the Agreement.  Any severance payments under this Agreement not subject to the signing of a Release shall be made as provided in the Agreement, or, if later, such time as is required by Section 5 below.

		 

		

			 

		

 

		

			 

		

			
	
			
				 (f)
			Change of Control Benefits.  In the event of a “Change of Control” (as defined herein), Executive shall receive the benefits specified in Section 3(e)(i) above (including 100% vesting acceleration); provided that the Severance Payment shall be payable in a lump-sum within five days following the Change of Control and the COBRA Coverage shall be extended to Executive upon any subsequent termination of his employment, whether or not for Cause or Good Reason, subject to Section 5.  For purposes of clarification, the receipt of any benefits described in this Section 3(f) is not subject to the signing of a Release.  In the event Executive’s tenure as Executive Chairman of the Board terminates following a Change of Control, for any or no reason, including pursuant to Section 3(g) hereof, Executive shall not be entitled to any additional compensation (excepts as to amounts already earned and payments and benefits due pursuant to Section 3(e)).

		
			For purposes of this Agreement, “Change of Control” shall mean the occurrence of any of the following events:
		

			
	
			
				(i)
			Change in Ownership of the Company.  A change in the ownership of the Company, which is deemed to occur on the date that any one person, or more than one person acting as a group (“Person”), acquires ownership of the stock of the Company that, together with the stock held by such Person, constitutes more than 50% of the total voting power of the stock of the Company; or 

			
	
			
				(ii)
			Change in Effective Control of the Company.  A change in the effective control of the Company, which is deemed to occur on the date that a majority of members of the Board is replaced during any 12-month period by directors whose appointment or election was not endorsed by a majority of the members of the Board prior to the date of the appointment or election.  For purposes of this clause (ii), if any Person is considered to be in effective control of the Company, the acquisition of additional control of the Company by the same Person will not be considered a Change of Control; or

			
	
			
				(iii)
			Change in Ownership of a Substantial Portion of the Company’s Assets.  A change in the ownership of a substantial portion of the Company’s assets, which is deemed to occur on the date that any Person acquires (either is one transaction or in multiple transactions over the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total gross fair market value equal to or more than 50% of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions.  For purposes of this subsection (iii), gross fair market value means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets.

		
			For purposes of the above sections, persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company.
		

		
			Notwithstanding the foregoing provisions of this definition, a transaction will not be deemed a Change of Control unless the transaction qualifies as a “change in control event” within the meaning of Section 409A of the Code and the final regulations and any guidance promulgated thereunder (together, “Section 409A”).
		

			
	
			
				 (g)
			Voluntary Termination when Executive is 65 or Older.  In the event that on or after his 65th birthday, Executive (i) voluntarily terminates as Executive Chairman of the Board, and, (ii) if he is then employed by the Company, voluntarily terminates such employment, then Executive shall receive the same benefits as if such voluntary termination was a voluntary termination for Good Reason, which will entitle him to severance benefits under Section 3(e)(i), and, if applicable, paid and provided as set forth in Section 3(f).  For purposes of clarification, the receipt of any benefits described in this Section 3(g) is not subject to the signing of a Release.

			
	
			
				 4.
			Death or Disability of Executive.  In the event of Executive’s death or Disability while Executive is an employee or consultant of the Company, then (i) Executive’s employment hereunder shall automatically terminate; (ii) Executive (or Executive’s estate) shall receive the benefits specified in Section 3(e)(i) above (including 100% vesting acceleration), subject to Section 5; and (iii) all payments of compensation by the Company to Executive hereunder shall immediately terminate (except as to amounts already earned).  For purposes of clarification, the receipt of any benefits described in this Section 4 is not subject to the signing of a Release.

		
			For purposes of this Agreement, “Disability” shall mean Executive (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, or (ii) is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering Company employees. 
		

			
	
			
				 5.
			Section 409A.  Notwithstanding anything to the contrary in this Agreement, no Deferred Compensation Separation Benefits (as defined below) shall become payable under this Agreement until Executive has a “separation from service” within the meaning of Section 409A.  Further and notwithstanding anything to the contrary in this Agreement and solely with respect to the timing of the payment of any severance payments or benefits, if Executive is a “specified employee” within the meaning of Section 409A at the time of Executive’s termination, other than a termination due to Executive’s death, then any severance payments payable to Executive pursuant to this Agreement, if any, and any other severance payments or separation benefits which may be considered deferred compensation under Section 409A (together, the “Deferred Compensation Separation Benefits”) otherwise due to Executive on or within the six-month period following Executive’s termination shall accrue during such six-month period and shall become 
		

		 

		

			 

		

 

		

			 

		

			payable in a lump sum payment on the date six months and one-day following the date of Executive’s termination of employment, unless Executive dies following the termination of his employment, in which case, the Deferred Compensation Separation Benefits shall be paid to Executive’s estate as soon as practicable following his death.  All subsequent Deferred Compensation Separation Benefits, if any, shall be payable in accordance with the payment schedule applicable to each payment or benefit.  It is the intent of this Agreement to comply with the requirements of Section 409A so that none of the severance payments and benefits to be provided hereunder shall be subject to the additional tax imposed under Section 409A, and any ambiguities herein shall be interpreted to so comply.  The Company and Executive agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions that are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to Executive under Section 409A.

			
	
			
				 6.
			Golden Parachute Excise Tax Full Gross-Up.  

			
	
			
				 (a)
			In the event that the benefits provided for in this Agreement or otherwise payable to Executive constitute “parachute payments” within the meaning of Section 280G of the Code and will be subject to the excise tax imposed by Section 4999 of the Code, then Executive shall receive (i) a payment from the Company sufficient to pay such excise tax, plus (ii) an additional payment from the Company sufficient to pay the excise tax and federal and state income and employment taxes arising from the payments made by the Company to Executive pursuant to this sentence.  Executive shall receive such payments no later than the end of calendar year following the calendar year in which Executive remits the applicable taxes to the relevant tax authorities.   

			
	
			
				 (b)
			Unless the Company and the Executive otherwise agree in writing, the determination of Executive’s excise tax liability and the amount required to be paid under this Section 6 shall be made in writing by the Company’s independent auditors who are primarily used by the Company immediately prior to the Change of Control (the “Accountants”).  For purposes of making the calculations required by this Section 6, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code.  The Company and Executive shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section.  The Company shall bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section 6.

			
	
			
				 7.
			Assignment.  This Agreement shall be binding upon and inure to the benefit of (a) the heirs, beneficiaries, executors and legal representatives of Executive upon Executive’s death and (b) any successor of the Company.  Any such successor of the Company shall be deemed substituted for the Company under the terms of this Agreement for all purposes.  As used herein, “successor” shall include any person, firm, corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly acquires all or substantially all of the assets or business of the Company.  None of the rights of Executive to receive any form of compensation payable pursuant to this Agreement shall be assignable or transferable except through a testamentary disposition or by the laws of descent and distribution upon the death of Executive.  Any attempted assignment, transfer, conveyance or other disposition (other than as aforesaid) of any interest in the rights of Executive to receive any form of compensation hereunder shall be null and void.

			
	
			
				 8.
			Notices.  All notices, requests, demands and other communications called for hereunder shall be in writing and shall be deemed given if (i) delivered personally or by facsimile, (ii) one-day after being sent by Federal Express or a similar commercial overnight service, or (iii) three days after being mailed by registered or certified mail, return receipt requested, prepaid and addressed to the parties or their successors in interest at the following addresses, or at such other addresses as the parties may designate by written notice in the manner aforesaid:

		
			If to the Company:Linear Technology Corporation
		

		
			720 Sycamore Drive
		

		
			Milpitas, CA 95035
		

		
			Attn: Compensation Committee Chairman
		

		
			If to Executive:Robert H. Swanson, Jr.
		

		
			at the last residential address known by the Company.
		

			
	
			
				 9.
			Severability.  In the event that any provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue in full force and effect without said provision.

			
	
			
				 10.
			Entire Agreement.  This Agreement, the Confidential Information and Invention Assignment Agreement previously entered into by and between the Company and Executive and the indemnification agreement previously entered into by and between the Company and Executive represent the entire agreement and understanding between the Company and Executive concerning Executive’s employment relationship with the Company, and supersede and replace any and all prior agreements and understandings concerning Executive’s employment relationship with the Company.

			
	
			
				 11.
			Dispute Resolution.

		 

		

			 

		

 

		

			 

		

			
	
			
				 (a)
			The parties shall first meet to settle any dispute through good faith negotiation or non-binding mediation.  If not settled by good faith negotiation or non-binding mediation between the parties within 30 days from the date one party requests in writing to meet the other party, then to the extent permitted by law, any dispute or controversy arising out of, relating to, or in connection with this Agreement, or the interpretation, validity, construction, performance, breach, or termination thereof shall be finally settled by binding arbitration to be held in Santa Clara County, California, in accordance with the National Rules for the Resolution of Employment Disputes then in effect of the American Arbitration Association (the “Rules”).  The arbitrator may grant injunctions or other relief in such dispute or controversy.  The decision of the arbitrator shall be confidential, final, conclusive and binding on the parties to the arbitration.  Judgment may be entered under a protective order on the arbitrator’s decision in any court having jurisdiction.  The Company shall pay all costs of any mediation or arbitration; provided, however, that each party shall pay its own attorney and advisor fees.

			
	
			
				 (b)
			The arbitrator shall apply California law to the merits of any dispute or claim, without reference to rules of conflict of law.  The arbitration proceedings shall be governed by federal arbitration law and by the Rules, without reference to state arbitration law.  Executive hereby expressly consents to the personal jurisdiction of the state and federal courts located in California for any action or proceeding arising from or relating to this Agreement and/or relating to any arbitration in which the parties are participants.

			
	
			
				 (c)
			Executive understands that nothing in Section 11 modifies Executive’s at-will status.  Either the Company or Executive can terminate the employment relationship at any time, with or without cause.

			
	
			
				 (d)
			EXECUTIVE HAS READ AND UNDERSTANDS SECTION 11, WHICH DISCUSSES ARBITRATION.  EXECUTIVE UNDERSTANDS THAT BY SIGNING THIS AGREEMENT, EXECUTIVE AGREES, TO THE EXTENT PERMITTED BY LAW, TO SUBMIT ANY FUTURE CLAIMS ARISING OUT OF, RELATING TO, OR IN CONNECTION WITH THIS AGREEMENT, OR THE INTERPRETATION, VALIDITY, CONSTRUCTION, PERFORMANCE, BREACH, OR TERMINATION THEREOF TO BINDING ARBITRATION, AND THAT THIS ARBITRATION CLAUSE CONSTITUTES A WAIVER OF EXECUTIVE’S RIGHT TO A JURY TRIAL AND RELATES TO THE RESOLUTION OF ALL DISPUTES RELATING TO ALL ASPECTS OF THE EMPLOYER/EMPLOYEE RELATIONSHIP.

			
	
			
				 12.
			Covenants Not to Compete and Not to Solicit.

			
	
			
				 (a)
			Covenant Not to Compete.  In consideration for the benefits Executive is to receive herein Executive agrees that, until the end of the 12-month period following the date of his termination of employment with the Company for any reason or no reason, Executive will not directly engage in (whether as an employee, consultant, proprietor, partner, director or otherwise), or have any ownership interest in, or participate in the financing, operation, management or control of, any person, firm, corporation or business that engages or participates anywhere in the world in providing goods and services similar to those provided by the Company upon the date of Executive’s termination of employment.  Ownership of less than 3% of the outstanding voting stock of a corporation or other entity will not constitute a violation of this provision.  The Company agrees not to unreasonably withhold consent from Executive to engage in any activity that is not competitive with the Company.

			
	
			
				 (b)
			Covenant Not to Solicit.  In consideration for the benefits Executive is to receive herein Executive agrees that he will not, at any time during the 12-month period following his termination date, directly or indirectly solicit any individuals to leave the Company’s employ for any reason or interfere in any other manner with the employment relationships at the time existing between the Company and its current or prospective employees.

			
	
			
				 (c)
			Representations.  The parties intend that the covenants contained in Section 12(a) and (b) shall be construed as a series of separate covenants, one for each county, city and state (or analogous entity) and country of the world.  If, in any judicial proceeding, a court shall refuse to enforce any of the separate covenants, or any part thereof, then such unenforceable covenant, or such part thereof, shall be deemed eliminated from this Agreement for the purpose of those proceedings to the extent necessary to permit the remaining separate covenants, or portions thereof, to be enforced.

			
	
			
				 (d)
			Reformation.  In the event that the provisions of this Section 12 should ever be deemed to exceed the time or geographic limitations, or scope of this covenant, permitted by applicable law, then such provisions shall be reformed to the maximum time or geographic limitations, as the case may be, permitted by applicable laws.

			
	
			
				 (e)
			Reasonableness of Covenants.  Executive represents that he (i) is familiar with the covenants not to compete and solicit, and (ii) is fully aware of his obligations hereunder, including, without limitation, the reasonableness of the length of time, scope and geographic coverage of these covenants.

			
	
			
				 13.
			No Oral Modification, Cancellation or Discharge.  This Agreement may only be amended, canceled or discharged in writing signed by Executive and the Company’s then existing Chief Executive Officer, subject to prior approval of the Board.

		 

		

			 

		

 

		

			 

		

			
	
			
				 14.
			Withholding.  The Company shall be entitled to withhold, or cause to be withheld, from payment any amount of withholding taxes required by law with respect to payments made to Executive in connection with his employment hereunder.

			
	
			
				 15.
			Governing Law.  This Agreement shall be governed by the laws of the State of California (with the exception of its conflict of laws provisions).

			
	
			
				 16.
			Acknowledgment.  Executive acknowledges that he has had the opportunity to discuss this matter with and obtain advice from his private attorney, has had sufficient time to, and has carefully read and fully understands all the provisions of this Agreement, and is knowingly and voluntarily entering into this Agreement.

		

		

		 

		

			 

		

 

		

			 

		

		IN WITNESS WHEREOF, the undersigned have executed this Agreement:
		

		
			LINEAR TECHNOLOGY CORPORATION
		

		
			__/s/ Richard M. Moley_____________Date: April 16, 2015
		

		
			Richard M. Moley
		

		
			Chairman of the Compensation Committee
		

		
			EXECUTIVE
		

		
			__/s/ Robert H. Swanson, Jr._________Date: April 16, 2015
		

		
			Robert H. Swanson, Jr.

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