Document:

Exhibit 10.1

 

LYNDA.COM, INC.

 

2008 EQUITY INCENTIVE PLAN

 

ADOPTED ON APRIL 4, 2008
 AS AMENDED AND RESTATED ON JULY 25, 2013
 AS AMENDED AND RESTATED ON AUGUST 7, 2013
 AS RESTATED IN OCTOBER 2013

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
SECTION 1.
    	
ESTABLISHMENT AND PURPOSE
    	
1
    
	
 
    	
 
    	
 
    
	
SECTION 2.
    	
ADMINISTRATION
    	
1
    
	
(a)
    	
Committees of the Board of Directors
    	
1
    
	
(b)
    	
Authority of the Board of Directors
    	
1
    
	
 
    	
 
    	
 
    
	
SECTION 3.
    	
ELIGIBILITY
    	
1
    
	
(a)
    	
General Rule
    	
1
    
	
(b)
    	
Ten-Percent Stockholders
    	
1
    
	
 
    	
 
    	
 
    
	
SECTION 4.
    	
STOCK SUBJECT TO PLAN
    	
2
    
	
(a)
    	
Basic Limitation
    	
2
    
	
(b)
    	
Additional Shares
    	
2
    
	
 
    	
 
    	
 
    
	
SECTION 5.
    	
TERMS AND CONDITIONS OF OPTIONS
    	
2
    
	
(a)
    	
Stock Option Agreement
    	
2
    
	
(b)
    	
Number of Shares
    	
2
    
	
(c)
    	
Exercise Price
    	
2
    
	
(d)
    	
Exercisability
    	
2
    
	
(e)
    	
Basic Term
    	
3
    
	
(f)
    	
Termination of Service (Except by Death)
    	
3
    
	
(g)
    	
Leaves of Absence
    	
3
    
	
(h)
    	
Death of Optionee
    	
3
    
	
(i)
    	
Transferability of Options
    	
4
    
	
(j)
    	
No Rights as a Stockholder
    	
4
    
	
(k)
    	
Modification, Extension and Assumption of Options
    	
4
    
	
(l)
    	
Company’s Right to Cancel Certain Options
    	
4
    
	
 
    	
 
    	
 
    
	
SECTION 6.
    	
STOCK APPRECIATION RIGHTS
    	
4
    
	
(a)
    	
SAR Agreement
    	
4
    
	
(b)
    	
Number of Shares
    	
5
    
	
(c)
    	
Exercise Price
    	
5
    
	
(d)
    	
Exercisability and Term
    	
5
    
	
(e)
    	
Exercise of SARs
    	
5
    
	
(f)
    	
Other Terms
    	
5
    
	
 
    	
 
    	
 
    
	
SECTION 7.
    	
RESTRICTED SHARES
    	
5
    
	
(a)
    	
Restricted Share Agreement
    	
5
    
	
(b)
    	
Payment for Awards
    	
5
    
	
(c)
    	
Vesting Conditions
    	
5
    
	
(d)
    	
Voting and Dividend Rights
    	
6
    
	
 
    	
 
    	
 
    
	
SECTION 8.
    	
STOCK UNITS
    	
6
    
	
(a)
    	
Stock Unit Agreement
    	
6
    
				

 

i

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
(b)
    	
Payment for Awards
    	
6
    
	
(c)
    	
Vesting Conditions
    	
6
    
	
(d)
    	
Form and Time of Settlement of Stock Units
    	
6
    
	
(e)
    	
Voting and Dividend Rights
    	
6
    
	
(f)
    	
Death of Recipient
    	
7
    
	
(g)
    	
Modification or Assumption of Stock Units
    	
7
    
	
(h)
    	
Creditors’ Rights
    	
7
    
	
 
    	
 
    	
 
    
	
SECTION 9.
    	
PAYMENT FOR SHARES
    	
7
    
	
(a)
    	
General Rule
    	
7
    
	
(b)
    	
Services Rendered
    	
7
    
	
(c)
    	
Promissory Note
    	
7
    
	
(d)
    	
Surrender of Stock
    	
7
    
	
(e)
    	
Exercise/Sale
    	
8
    
	
(f)
    	
Net Exercise
    	
8
    
	
(g)
    	
Other Forms of Payment
    	
8
    
	
 
    	
 
    	
 
    
	
SECTION 10.
    	
ADJUSTMENT OF SHARES
    	
8
    
	
(a)
    	
General
    	
8
    
	
(b)
    	
Corporate Transactions
    	
8
    
	
(c)
    	
Change in Control
    	
10
    
	
(d)
    	
Reservation of Rights
    	
10
    
	
 
    	
 
    	
 
    
	
SECTION 11.
    	
MISCELLANEOUS PROVISIONS
    	
10
    
	
(a)
    	
Securities Law Requirements
    	
10
    
	
(b)
    	
No Retention Rights
    	
10
    
	
(c)
    	
Treatment as Compensation
    	
10
    
	
(d)
    	
Governing Law
    	
10
    
	
(e)
    	
Conditions and Restrictions on Shares
    	
11
    
	
(f)
    	
Tax Matters
    	
11
    
	
 
    	
 
    	
 
    
	
SECTION 12.
    	
DURATION AND AMENDMENTS; STOCKHOLDER APPROVAL
    	
12
    
	
(a)
    	
Term of the Plan
    	
12
    
	
(b)
    	
Right to Amend or Terminate the Plan
    	
12
    
	
(c)
    	
Effect of Amendment or Termination
    	
12
    
	
 
    	
 
    	
 
    
	
SECTION 13.
    	
DEFINITIONS
    	
12
    
				

 

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LYNDA.COM, INC. 2008 EQUITY INCENTIVE PLAN

 

SECTION 1.                                     ESTABLISHMENT AND PURPOSE.

 

The purpose of the Plan is to offer selected persons an opportunity to acquire a proprietary interest in the success of the Company, or to increase such interest, by purchasing Shares of the Company’s Stock.  The Plan provides for the grant of Options to purchase Shares, SARs, Restricted Shares, and Stock Units.  Options granted under the Plan may include Nonstatutory Options as well as ISOs intended to qualify under Section 422 of the Code.

 

Capitalized terms are defined in Section 13.

 

SECTION 2.                                     ADMINISTRATION.

 

(a)                                 Committees of the Board of Directors.  The Plan may be administered by one or more Committees.  Each Committee shall consist of one or more members of the Board of Directors who have been appointed by the Board of Directors.  Each Committee shall have such authority and be responsible for such functions as the Board of Directors has assigned to it.  If no Committee has been appointed, the entire Board of Directors shall administer the Plan.  Any reference to the Board of Directors in the Plan shall be construed as a reference to the Committee (if any) to whom the Board of Directors has assigned a particular function.

 

(b)                                 Authority of the Board of Directors.  Subject to the provisions of the Plan, the Board of Directors shall have full authority and discretion to take any actions it deems necessary or advisable for the administration of the Plan.  Notwithstanding anything to the contrary in the Plan, with respect to the terms and conditions of Awards granted to Participants outside the United States, the Board of Directors may vary from the provisions of the Plan to the extent it determines it necessary and appropriate to do so; provided that it may not vary from those Plan terms requiring stockholder approval pursuant to Section 12(b) below.  All decisions, interpretations and other actions of the Board of Directors shall be final and binding on all Participants and all persons deriving their rights from Participants.

 

SECTION 3.                                     ELIGIBILITY.

 

(a)                                 General Rule.  Only Employees, Outside Directors and Consultants shall be eligible for the grant of Awards.  Only Employees shall be eligible for the grant of ISOs.

 

(b)                                 Ten-Percent Stockholders.  A person who owns more than 10% of the total combined voting power of all classes of outstanding stock of the Company, its Parent or any of its Subsidiaries shall not be eligible for the grant of an ISO unless (i) the Exercise Price is at least 110% of the Fair Market Value of a Share on the Date of Grant and (ii) such ISO by its terms is not exercisable after the expiration of five years from the Date of Grant.  For purposes of this Subsection (b), in determining stock ownership, the attribution rules of Section 424(d) of the Code shall be applied.

 

 

SECTION 4.                                     STOCK SUBJECT TO PLAN.

 

(a)                                 Basic Limitation.  The number of Shares that may be issued under the Plan (subject to the share counting provisions in Subsection (b) below and as adjusted pursuant to Section 10(a)) is set forth on an Exhibit to the Plan.  All of these Shares may be issued upon the exercise of ISOs.  The number of Shares that are subject to Awards outstanding at any time under the Plan may not exceed the number of Shares that then remain available for issuance under the Plan.  The Company, during the term of the Plan, shall at all times reserve and keep available sufficient Shares to satisfy the requirements of the Plan.

 

(b)                                 Additional Shares.  In the event Shares previously issued under the Plan are reacquired by the Company, such Shares shall be added to the number of Shares then available for issuance under the Plan.  In the event Shares otherwise issuable under the Plan are withheld by the Company in payment of the Purchase Price, Exercise Price or withholding taxes, such Shares shall remain available for issuance under the Plan.  In the event that an outstanding Award for any reason expires or is canceled, the Shares allocable to the unexercised or unsettled portion of such Award shall be added to the number of Shares then available for issuance under the Plan.

 

SECTION 5.                                     TERMS AND CONDITIONS OF OPTIONS.

 

(a)                                 Stock Option Agreement.  Each grant of an Option under the Plan shall be evidenced by a Stock Option Agreement between the Optionee and the Company.  Such Option shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions which are not inconsistent with the Plan and which the Board of Directors deems appropriate for inclusion in a Stock Option Agreement.  The provisions of the various Stock Option Agreements entered into under the Plan need not be identical.

 

(b)                                 Number of Shares.  Each Stock Option Agreement shall specify the number of Shares that are subject to the Option and shall provide for the adjustment of such number in accordance with Section 10.  The Stock Option Agreement shall also specify whether the Option is an ISO or a Nonstatutory Option.

 

(c)                                  Exercise Price.  Each Stock Option Agreement shall specify the Exercise Price.  The Exercise Price of an Option shall not be less than 100% of the Fair Market Value of a Share on the Date of Grant, and in the case of an ISO a higher percentage may be required by Section 3(b).  Subject to the preceding sentence, the Exercise Price shall be determined by the Board of Directors at its sole discretion.  The Exercise Price shall be payable in a form described in Section 9.

 

(d)                                 Exercisability.  Each Stock Option Agreement shall specify the date when all or any installment of the Option is to become exercisable.  No Option shall be exercisable unless the Optionee (i) has delivered an executed copy of the Stock Option Agreement to the Company or (ii) otherwise agrees to be bound by the terms of the Stock Option Agreement.  The Board of Directors shall determine the exercisability provisions of the Stock Option Agreement at its sole discretion.

 

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(e)                                  Basic Term.  The Stock Option Agreement shall specify the term of the Option.  The term shall not exceed 10 years from the Date of Grant, and in the case of an ISO a shorter term may be required by Section 3(b).  Subject to the preceding sentence, the Board of Directors at its sole discretion shall determine when an Option is to expire.

 

(f)                                   Termination of Service (Except by Death).  If an Optionee’s Service terminates for any reason other than the Optionee’s death, then the Optionee’s Options shall expire on the earliest of the following dates:

 

(i)                                     The expiration date determined pursuant to Subsection (e) above;

 

(ii)                                  The date three months after the termination of the Optionee’s Service for any reason other than Disability, or such later date as the Board of Directors may determine; or

 

(iii)                               The date six months after the termination of the Optionee’s Service by reason of Disability, or such later date as the Board of Directors may determine.

 

The Optionee may exercise all or part of the Optionee’s Options at any time before the expiration of such Options under the preceding sentence, but only to the extent that such Options had become exercisable before the Optionee’s Service terminated (or became exercisable as a result of the termination) and the underlying Shares had vested before the Optionee’s Service terminated (or vested as a result of the termination).  The balance of such Options shall lapse when the Optionee’s Service terminates.  In the event that the Optionee dies after the termination of the Optionee’s Service but before the expiration of the Optionee’s Options, all or part of such Options may be exercised (prior to expiration) by the executors or administrators of the Optionee’s estate or by any person who has acquired such Options directly from the Optionee by beneficiary designation, bequest or inheritance, but only to the extent that such Options had become exercisable before the Optionee’s Service terminated (or became exercisable as a result of the termination) and the underlying Shares had vested before the Optionee’s Service terminated (or vested as a result of the termination).

 

(g)                                 Leaves of Absence.  For purposes of Subsection (f) above, Service shall be deemed to continue while the Optionee is on a bona fide leave of absence, if such leave was approved by the Company in writing and if continued crediting of Service for this purpose is expressly required by the terms of such leave or by applicable law (as determined by the Company).

 

(h)                                 Death of Optionee.  If an Optionee dies while the Optionee is in Service, then the Optionee’s Options shall expire on the earlier of the following dates:

 

(i)                                     The expiration date determined pursuant to Subsection (e) above; or

 

(ii)                                  The date 12 months after the Optionee’s death, or such later date as the Board of Directors may determine.

 

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All or part of the Optionee’s Options may be exercised at any time before the expiration of such Options under the preceding sentence by the executors or administrators of the Optionee’s estate or by any person who has acquired such Options directly from the Optionee by beneficiary designation, bequest or inheritance, but only to the extent that such Options had become exercisable before the Optionee’s death (or became exercisable as a result of the death) and the underlying Shares had vested before the Optionee’s death (or vested as a result of the Optionee’s death).  The balance of such Options shall lapse when the Optionee dies.

 

(i)                                    Transferability of Options.  An Option shall be transferable by the Optionee only by (i) a beneficiary designation, (ii) a will or (iii) the laws of descent and distribution, except as provided in the next sentence.  If the applicable Stock Option Agreement so provides, a Nonstatutory Option shall also be transferable by gift or domestic relations order to a Family Member of the Optionee.  An ISO may be exercised during the lifetime of the Optionee only by the Optionee or by the Optionee’s guardian or legal representative.

 

(j)                                    No Rights as a Stockholder.  An Optionee, or a transferee of an Optionee, shall have no rights as a stockholder with respect to any Shares covered by the Optionee’s Option until such person becomes entitled to receive such Shares by filing a notice of exercise and paying the Exercise Price pursuant to the terms of such Option.

 

(k)                                 Modification, Extension and Assumption of Options.  Within the limitations of the Plan, the Board of Directors may modify, extend or assume outstanding Options or may accept the cancellation of outstanding Options (whether granted by the Company or another issuer) in return for the grant of new Options or a different type of Award for the same or a different number of Shares and at the same or a different Exercise Price (if applicable).  The foregoing notwithstanding, no modification of an Option shall, without the consent of the Optionee, impair the Optionee’s rights or increase the Optionee’s obligations under such Option.

 

(l)                                    Company’s Right to Cancel Certain Options.  Any other provision of the Plan or a Stock Option Agreement notwithstanding, to ensure the Company and the Plan’s continued compliance with applicable law, the Company shall have the right at any time to cancel an Option that was not granted in compliance with Rule 701 under the Securities Act.  Prior to canceling such Option, the Company shall give the Optionee not less than 30 days’ notice in writing.  If the Company elects to cancel such Option, it shall deliver to the Optionee consideration with an aggregate Fair Market Value equal to the excess of (i) the Fair Market Value of the Shares subject to such Option as of the time of the cancellation over (ii) the Exercise Price of such Option.  The consideration may be delivered in the form of cash or cash equivalents, in the form of Shares, or a combination of both.  If the consideration would be a negative amount, such Option may be cancelled without the delivery of any consideration.

 

SECTION 6.                                     STOCK APPRECIATION RIGHTS.

 

(a)                                 SAR Agreement.  Each grant of a SAR under the Plan shall be evidenced by a SAR Agreement between the Optionee and the Company.  Such SAR shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan.  The provisions of the various SAR Agreements entered into under the Plan need not be identical.

 

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(b)                                 Number of Shares.  Each SAR Agreement shall specify the number of Shares to which the SAR pertains, which number shall adjust in accordance with Section 10.

 

(c)                                  Exercise Price.  Each SAR Agreement shall specify the Exercise Price.  The Exercise Price of a SAR shall not be less than 100% of the Fair Market Value of a Share on the Date of Grant.  Subject to the preceding sentence, the Exercise Price shall be determined by the Board of Directors at its sole discretion.

 

(d)                                 Exercisability and Term.  Each SAR Agreement shall specify the date when all or any installment of the SAR is to become vested and exercisable.  The SAR Agreement shall also specify the term of the SAR, which shall not be longer than 10 years from the Date of Grant.  The SAR Agreement may provide for accelerated vesting and exercisability upon certain specified events and may provide for expiration prior to the end of its term in the event of the termination of the Optionee’s Service.

 

(e)                                  Exercise of SARs.  Upon exercise of a SAR, the Optionee (or any person having the right to exercise the SAR after his or her death) shall receive from the Company (a)  Shares, (b) cash or (c) a combination of Shares and cash, as the Committee shall determine.  The amount of cash and/or the Fair Market Value of Shares received upon exercise of SARs shall, in the aggregate, not exceed the amount by which the Fair Market Value (on the date of surrender) of the Shares subject to the SARs exceeds the Exercise Price.  If, on the date when a SAR expires, the Exercise Price is less than the Fair Market Value on such date but any portion of such SAR has not been exercised or surrendered, then such SAR shall automatically be deemed to be exercised as of such date with respect to such portion.  The SAR Agreement may also provide for an automatic exercise of the SAR on an earlier date.

 

(f)                                   Other Terms.  Each SAR Agreement shall incorporate the analogous provisions applicable to Options set forth in Sections 5(f) through 5(k).

 

SECTION 7.                                     RESTRICTED SHARES.

 

(a)                                 Restricted Share Agreement.  Each grant of Restricted Shares under the Plan shall be evidenced by a Restricted Share Agreement between the recipient and the Company.  Such Restricted Shares shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan.  The provisions of the various Restricted Share Agreements entered into under the Plan need not be identical.

 

(b)                                 Payment for Awards.  Restricted Shares may be sold or awarded under the Plan for such consideration as the Board of Directors may determine in its sole discretion.  The Purchase Price shall be payable in a form described in Section 9.

 

(c)                                  Vesting Conditions.  Each Award of Restricted Shares may or may not be subject to vesting and/or other conditions as the Board of Directors may determine.  Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the Restricted Share Agreement.  Such conditions, at the Board of Directors’ discretion, may include one or more service or performance goals.  A Restricted Share Agreement may provide for accelerated vesting upon certain specified events.

 

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(d)                                 Voting and Dividend Rights.  The holders of Restricted Shares awarded under the Plan shall have the same voting, dividend and other rights as the Company’s other stockholders, unless the Board of Directors otherwise provides.  A Restricted Share Agreement, however, may require that any cash dividends paid on Restricted Shares (a) be accumulated and paid when such Restricted Shares vest, or (b) be invested in additional Restricted Shares.  Such additional Restricted Shares shall be subject to the same conditions and restrictions as the shares subject to the Stock Award with respect to which the dividends were paid.  In addition, unless the Board of Directors provides otherwise, if any dividends or other distributions are paid in Shares, such Shares shall be subject to the same restrictions on transferability and forfeitability as the Restricted Shares with respect to which they were paid.

 

SECTION 8.                                     STOCK UNITS.

 

(a)                                 Stock Unit Agreement.  Each grant of Stock Units under the Plan shall be evidenced by a Stock Unit Agreement between the recipient and the Company.  Such Stock Units shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan.  The provisions of the various Stock Unit Agreements entered into under the Plan need not be identical.

 

(b)                                 Payment for Awards.  To the extent that an Award is granted in the form of Stock Units, no cash consideration shall be required of the Award recipients.

 

(c)                                  Vesting Conditions.  Each Award of Stock Units may or may not be subject to vesting, as determined by the Board of Directors.  Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the Stock Unit Agreement.  Such conditions, at the Board of Directors’ discretion, may include one or more service or performance goals.  A Stock Unit Agreement may provide for accelerated vesting upon certain specified events.

 

(d)                                 Form and Time of Settlement of Stock Units.  Settlement of vested Stock Units may be made in the form of (a) cash, (b) Shares or (c) any combination of both, as determined by the Board of Directors.  The actual number of Stock Units eligible for settlement may be larger or smaller than the number included in the original Award based on predetermined performance factors.  Methods of converting Stock Units into cash may include (without limitation) a method based on the average Fair Market Value of Shares over a series of trading days.  Vested Stock Units shall be settled in such manner and at such time(s) as specified in the Stock Unit Agreement.  Until an Award of Stock Units is settled, the number of such Stock Units shall be subject to adjustment pursuant to Section 10.

 

(e)                                  Voting and Dividend Rights.  The holders of Stock Units shall have no voting rights.  Prior to settlement or forfeiture, Stock Units awarded under the Plan may, at the Board of Directors’ discretion, provide for a right to dividend equivalents.  Such right entitles the holder to be credited with an amount equal to all cash dividends paid on each Share while the Stock Unit is outstanding.  Dividend equivalents may be converted into additional Stock Units.  Settlement of dividend equivalents may be made in the form of cash, in the form of Shares, or in a combination of both.  Prior to distribution, any dividend equivalents shall be subject to the same conditions and restrictions as the Stock Units to which they attach.

 

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(f)                                   Death of Recipient.  Any Stock Units that become payable after the recipient’s death shall be distributed to the recipient’s beneficiary or beneficiaries.  Each recipient of Stock Units under the Plan may designate one or more beneficiaries for this purpose by filing the prescribed form with the Company.  A beneficiary designation may be changed by filing the prescribed form with the Company at any time before the Award recipient’s death.  If no beneficiary was designated or if no designated beneficiary survives the Award recipient, then any Stock Units that becomes payable after the recipient’s death shall be distributed to the recipient’s estate.

 

(g)                                 Modification or Assumption of Stock Units.  Within the limitations of the Plan, the Board of Directors may modify or assume outstanding stock units or may accept the cancellation of outstanding stock units (whether granted by the Company or by another issuer) in return for the grant of new Stock Units for the same or a different number of shares or in return for the grant of a different type of Award.  The foregoing notwithstanding, no modification of a Stock Unit shall, without the consent of the Participant, impair his or her rights or obligations under such Stock Unit.

 

(h)                                 Creditors’ Rights.  A holder of Stock Units shall have no rights other than those of a general creditor of the Company.  Stock Units represent an unfunded and unsecured obligation of the Company, subject to the terms and conditions of the applicable Stock Unit Agreement.

 

SECTION 9.                                     PAYMENT FOR SHARES.

 

(a)                                 General Rule.  The entire Purchase Price or Exercise Price of Shares issued under the Plan shall be payable in cash or cash equivalents at the time when such Shares are purchased.  In addition, the Board of Directors in its sole discretion may also permit payment through any of the methods described in Subsections (b) through (g) below:

 

(b)                                 Services Rendered.  Shares may be awarded under the Plan in consideration of services rendered to the Company, a Parent or a Subsidiary prior to the Date of Grant of the Award.

 

(c)                                  Promissory Note.  All or a portion of the Purchase Price or Exercise Price (as the case may be) of Shares issued under the Plan to an Employee or Outside Director may be paid with a full-recourse promissory note.  The Shares shall be pledged as security for payment of the principal amount of the promissory note and interest thereon.  The interest rate payable under the terms of the promissory note shall not be less than the minimum rate (if any) required to avoid the imputation of additional interest under the Code.  Subject to the foregoing, the Board of Directors (at its sole discretion) shall specify the term, interest rate, amortization requirements (if any) and other provisions of such note.  This Subsection (c) shall not apply with respect to Shares issued under the Plan to a Consultant.

 

(d)                                 Surrender of Stock.  All or any part of the Exercise Price may be paid by surrendering, or attesting to the ownership of, Shares that are already owned by the Optionee.  Such Shares shall be surrendered to the Company in good form for transfer and shall be valued at their Fair Market Value as of the date when the Option is exercised.

 

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(e)                                  Exercise/Sale.  If the Stock is publicly traded, all or part of the Exercise Price and any withholding taxes may be paid by the delivery (on a form prescribed by the Company) of an irrevocable direction to a securities broker approved by the Company to sell Shares and to deliver all or part of the sales proceeds to the Company.

 

(f)                                   Net Exercise.  An Option may permit exercise through a “net exercise” arrangement pursuant to which the Company will reduce the number of Shares issued upon exercise by the largest whole number of Shares having an aggregate Fair Market Value (determined by the Board of Directors as of the exercise date in its sole discretion) that does not exceed the sum of (i) the aggregate Exercise Price, and (ii) if applicable, all or a portion of the minimum amount required to be withheld under applicable tax law (with the Company accepting from the Optionee payment of cash or cash equivalents to satisfy any remaining balance of the aggregate Exercise Price and, if applicable, any additional withholding obligation not satisfied through such reduction in Shares); provided that to the extent Shares otherwise issuable upon exercise of an Option are withheld in this manner, the number of Shares subject to the Option following the net exercise will be reduced by the sum of the number of Shares so withheld and the number of Shares delivered to the Optionee as a result of the exercise.

 

(g)                                 Other Forms of Payment.  To the extent that an Award Agreement so provides, the Purchase Price or Exercise Price of Shares issued under the Plan may be paid in any other form permitted by the Delaware General Corporation Law, as amended.

 

SECTION 10.                              ADJUSTMENT OF SHARES.

 

(a)                                 General.  In the event of a subdivision of the outstanding Stock, a declaration of a dividend payable in Shares, a combination or consolidation of the outstanding Stock into a lesser number of Shares, a reclassification, or any other increase or decrease in the number of issued shares of Stock effected without receipt of consideration by the Company, proportionate adjustments shall automatically be made in each of (i) the number and kind of Shares available for future grants under Section 4, (ii) the number and kind of Shares covered by each outstanding Award, (iii) the Exercise Price under each outstanding Option and SAR and the Purchase Price applicable to any unexercised right to purchase Shares that has not yet expired pursuant to Section 7(b), and (iv) any repurchase price that applies to Shares granted under the Plan pursuant to the terms of a Company repurchase right under the applicable Award Agreement.  In the event of a declaration of an extraordinary dividend payable in a form other than Shares in an amount that has a material effect on the Fair Market Value of the Stock, a recapitalization, a spin-off, or a similar occurrence, the Board of Directors at its sole discretion may make appropriate adjustments in one or more of the items listed in clauses (i) through (iv) above; provided, however, that the Board of Directors shall in any event make such adjustments as may be required by Section 25102(o) of the California Corporations Code.

 

(b)                                 Corporate Transactions.  In the event that the Company is a party to a merger or consolidation, or in the event of a sale of all or substantially all of the Company’s stock or assets, all Shares acquired under the Plan and all Awards outstanding on the effective date of the transaction shall, subject to the applicable Award Agreement, be treated in the manner described in the definitive transaction agreement (or, in the event the transaction does not entail a definitive agreement to which the Company is party, in the manner determined by the

 

8

 

Board of Directors in its capacity as administrator of the Plan, with such determination having final and binding effect on all parties), which agreement or determination need not treat all Awards (or portions thereof) in an identical manner.  Subject to the applicable Award Agreement, the treatment specified in the transaction agreement or by the Board of Directors shall include (without limitation) one or more of the following as of the closing of the transaction with respect to each outstanding Award:

 

(i)                                     Continuation of such Award by the Company (if the Company is the surviving corporation).

 

(ii)                                  Assumption of the Award by the surviving corporation or its parent, provided that the assumption of an Option or SAR shall comply with applicable tax requirements.

 

(iii)                               Substitution by the surviving corporation or its parent of an equivalent award for the outstanding Award (including, but not limited to, an award to acquire the same consideration paid to the holders of Shares in the transactions), provided that the substitution or an Option or SAR shall comply with applicable tax requirements.

 

(iv)                              Cancellation of outstanding Options and SARs and a payment to the Optionee with respect to each Share subject to the portion of such Awards (whether or not the Awards are vested as of the transaction date) equal to the excess of (A) the value, as determined by the Board of Directors in its sole discretion, of the property (including cash) received by the holder of a share of Stock as a result of the transaction, over (B) the per-Share Exercise Price of the Option or SAR (such excess, the “Spread”).  Such payment shall be made in the form of cash, cash equivalents, or securities of the surviving corporation or its parent having a value equal to the Spread.  In addition, any escrow, holdback, earn-out or similar provisions in the transaction agreement may apply to such payment to the same extent and in the same manner as such provisions apply to the payment to holders of Stock.  If the Spread applicable to an Option or SAR is zero or a negative number, then the Option or SAR may be cancelled without making a payment to the Optionee.

 

(v)                                 Cancellation of an Option or SAR without the payment of any consideration; provided that the Optionee shall be notified of such treatment and given an opportunity to exercise the Option or SAR in full (whether or not the Option or SAR is vested as of the effective date of the transaction) during a period of not less than five (5) business days preceding the effective date of the transaction, unless (A) a shorter period is required to permit a timely closing of the transaction and (B) such shorter period still offers the Optionee a reasonable opportunity to exercise the Option or SAR.  Any exercise of the Option or SAR during such period may be contingent upon the closing of the transaction.

 

(vi)                              Termination of any right the Optionee has to exercise the Option or SAR prior to vesting in the Shares subject to the Option or SAR (i.e.,

 

9

 

“early exercise”), such that following the closing of the transaction the Option may only be exercised to the extent it is vested.

 

(c)                                  Change in Control.  An Award may be subject to additional acceleration of vesting and exercisability upon or following a Change in Control as may be provided in the Award Agreement for such Award or as may be provided in any other written agreement between the Company or any affiliate thereof and the Participant, but in the absence of such provision, no such acceleration shall occur.

 

(d)                                 Reservation of Rights.  Except as provided in this Section 10, a Participant shall have no rights by reason of (i) any subdivision or consolidation of shares of stock of any class, (ii) the payment of any dividend or (iii) any other increase or decrease in the number of shares of stock of any class.  Any issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number or Exercise Price of Shares subject to an Award.  The grant of an Award pursuant to the Plan shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structure, to merge or consolidate or to dissolve, liquidate, sell or transfer all or any part of its business or assets.

 

SECTION 11.                              MISCELLANEOUS PROVISIONS.

 

(a)                                 Securities Law Requirements.  Shares shall not be issued under the Plan unless, in the opinion of counsel acceptable to the Board of Directors, the issuance and delivery of such Shares comply with (or are exempt from) all applicable requirements of law, including (without limitation) the Securities Act, the rules and regulations promulgated thereunder, state securities laws and regulations, and the regulations of any stock exchange or other securities market on which the Company’s securities may then be traded.  The Company shall not be liable for a failure to issue Shares as a result of such requirements.

 

(b)                                 No Retention Rights.  Nothing in the Plan or in any Award granted under the Plan shall confer upon the Participant any right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company (or any Parent or Subsidiary employing or retaining the Participant) or of the Participant, which rights are hereby expressly reserved by each, to terminate his or her Service at any time and for any reason, with or without cause.

 

(c)                                  Treatment as Compensation.  Any compensation that an individual earns or is deemed to earn under this Plan shall not be considered a part of his or her compensation for purposes of calculating contributions, accruals or benefits under any other plan or program that is maintained or funded by the Company, a Parent or a Subsidiary.

 

(d)                                 Governing Law.  The Plan and all awards, sales and grants under the Plan shall be governed by, and construed in accordance with, the laws of the State of Delaware, as such laws are applied to contracts entered into and performed in such State.

 

10

 

(e)                                  Conditions and Restrictions on Shares.  All Shares issued under the Plan shall be subject to such forfeiture conditions, rights of repurchase, rights of first refusal, other transfer restrictions and such other terms and conditions as the Board of Directors may determine.  Such conditions and restrictions shall be set forth in the applicable Award Agreement and shall apply in addition to any restrictions that may apply to holders of Shares generally.  In addition, Shares issued under the Plan shall be subject to conditions and restrictions imposed either by applicable law or by Company policy, as adopted from time to time, designed to ensure compliance with applicable law or laws with which the Company determines in its sole discretion to comply including in order to maintain any statutory, regulatory or tax advantage.

 

(f)                                   Tax Matters.

 

(i)                                     As a condition to the award, grant, issuance, vesting, purchase, exercise or transfer of any Award, or Shares issued pursuant to any Award, granted under this Plan, the Participant shall make such arrangements as the Board of Directors may require or permit for the satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in connection with such event.

 

(ii)                                  Unless otherwise expressly set forth in an Award Agreement, it is intended that Awards granted under the Plan shall be exempt from Section 409A of the Code, and any ambiguity in the terms of an Award Agreement and the Plan shall be interpreted consistently with this intent.   To the extent an Award is not exempt from Section 409A of the Code (any such Award, a “409A Award”), any ambiguity in the terms of such Award and the Plan shall be interpreted in a manner that to the maximum extent permissible supports the Award’s compliance with the requirements of that statute.  Notwithstanding anything to the contrary permitted under the Plan, in no event shall a modification of an Award not already subject to Section 409A of the Code be given effect if such modification would cause the Award to become subject to Section 409A of the Code unless the parties explicitly acknowledge and consent to the modification as one having that effect. A 409A Award shall be subject to such additional rules and requirements as specified by the Board of Directors from time to time in order for it to comply with the requirements of Section 409A of the Code.  In this regard, if any amount under a 409A Award is payable upon a “separation from service” to an individual who is, on the relevant date, considered a “specified employee” (as each term is defined under Section 409A of the Code), then no such payment shall be made prior to the date that is the earlier of (i) six months and one day after the Participant’s separation from service or (ii) the Participant’s death, but only to the extent such delay is necessary to prevent such payment from being subject to Section 409A(a)(1).  In addition, if a transaction subject to Section 10(b) constitutes a payment event with respect to any 409A Award, then the transaction with respect to such Award must also constitute a “change in control event” as defined in Treas. Reg. Section 1.409A-3(i)(5) to the extent required by Section 409A of the Code.

 

11

 

(iii)                               Neither the Company nor any member of the Board of Directors shall have any liability to a Participant in the event an Award held by the Participant fails to achieve its intended characterization under applicable tax law.

 

SECTION 12.                              DURATION AND AMENDMENTS; STOCKHOLDER APPROVAL.

 

(a)                                 Term of the Plan.  The Plan, as set forth herein, shall become effective on the date of its adoption by the Board of Directors.  The Plan shall terminate automatically 10 years after the later of (i) the date when the Board of Directors adopted the Plan or (ii) the date when the Board of Directors approved the most recent increase in the number of Shares reserved under Section 4 that was also approved by the Company’s stockholders.  The Plan may be terminated on any earlier date pursuant to Subsection (b) below.

 

(b)                                 Right to Amend or Terminate the Plan.  The Board of Directors may amend, suspend or terminate the Plan at any time and for any reason; provided, however, that any amendment of the Plan shall be subject to the approval of the Company’s stockholders if it (i) increases the number of Shares available for issuance under the Plan (except as provided in Section 10) or (ii) materially changes the class of persons who are eligible for the grant of ISOs or is otherwise required by applicable law or listing standards.  Stockholder approval shall not be required for any other amendment of the Plan.  If the stockholders fail to approve an increase in the number of Shares reserved under Section 4 within 12 months after its adoption by the Board of Directors, then any grants, exercises or sales that have already occurred in reliance on such increase shall be rescinded and no additional grants, exercises or sales shall thereafter be made in reliance on such increase.

 

(c)                                  Effect of Amendment or Termination.  No Shares shall be issued or sold and no Award granted under the Plan after the termination thereof, except upon exercise or settlement of an Award granted under the Plan prior to such termination.  The termination of the Plan, or any amendment thereof, shall not affect any Share previously issued or any Award previously granted under the Plan to the extent such Award remains outstanding thereafter pursuant to its terms.

 

SECTION 13.                              DEFINITIONS.

 

(a)                                 “Award” shall mean any award granted under the Plan, including an Option, a SAR, a Restricted Share, or a Stock Unit.

 

(b)                                 “Award Agreement” shall mean a Stock Option Agreement, SAR Agreement, Restricted Share Agreement, Stock Unit Agreement, or such other agreement evidencing an Award granted under the Plan.

 

(c)                                  “Board of Directors” shall mean the Board of Directors of the Company, as constituted from time to time.

 

(d)                                 “Change in Control” shall mean (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the “beneficial owner” (as defined in

 

12

 

Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the total voting power represented by the Company’s then-outstanding voting securities; (ii) the consummation of the sale or disposition by the Company of all or substantially all of the Company’s assets; or (iii) the consummation of a merger or consolidation of the Company with or into any other entity, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) more than fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation.

 

A transaction shall not constitute a Change in Control if its sole purpose is to change the state of the Company’s incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction.  In addition, if a Change in Control constitutes a payment event with respect to any Award which provides for a deferral of compensation and is subject to Section 409A of the Code, then notwithstanding anything to the contrary in the Plan or applicable Award Agreement the transaction with respect to such Award must also constitute a “change in control event” as defined in Treas. Reg. Section 1.409A-3(i)(5) to the extent required by Section 409A of the Code.

 

(e)                                  “Code” shall mean the Internal Revenue Code of 1986, as amended.

 

(f)                                   “Committee” shall mean a committee of the Board of Directors, as described in Section 2(a).

 

(g)                                  “Company” shall mean lynda.com, Inc., a Delaware corporation.

 

(h)                                 “Consultant” shall mean a person, excluding Employees and Outside Directors, who performs bona fide services for the Company, a Parent(1) or a Subsidiary as a consultant or advisor and who qualifies as a consultant or advisor under Rule 701(c)(1) of the Securities Act or under Instruction A.1.(a)(1) of Form S-8 under the Securities Act.

 

(i)                                     “Date of Grant” shall mean the date of grant specified in the applicable Stock Option Agreement, which date shall be the later of (i) the date on which the Board of Directors resolved to grant the Option or (ii) the first day of the Optionee’s Service.

 

(j)                                    “Disability” shall mean that the Optionee is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment.

 

(1)   Note that special considerations apply if the Company proposes to grant awards to a Consultant or advisor of a Parent company.

 

13

 

(k)                                 “Employee” shall mean any individual who is a common-law employee of the Company, a Parent(2) or a Subsidiary.

 

(l)                                     “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

 

(m)                             “Exercise Price” shall mean, in the case of an Option, the amount for which one Share may be purchased upon exercise of such Option, as specified by the Board of Directors in the applicable Stock Option Agreement; and, in the case of a SAR, an amount specified by the Board of Directors in the applicable SAR Agreement, which is subtracted from the Fair Market Value of one Share in determining the amount payable upon exercise of such SAR.

 

(n)                                 “Fair Market Value” shall mean the fair market value of a Share, as determined by the Board of Directors in accordance with applicable law.  Such determination shall be conclusive and binding on all persons.

 

(o)                                 “Family Member” shall mean (i) any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law, including adoptive relationships, (ii) any person sharing the Optionee’s household (other than a tenant or employee), (iii) a trust in which persons described in Clause (i) or (ii) have more than 50% of the beneficial interest, (iv) a foundation in which persons described in Clause (i) or (ii) or the Optionee control the management of assets and (v) any other entity in which persons described in Clause (i) or (ii) or the Optionee own more than 50% of the voting interests.

 

(p)                                 “ISO” shall mean an Option that qualifies as an incentive stock option as described in Section 422(b) of the Code.  Notwithstanding its designation as an ISO, an Option that does not qualify as an ISO under applicable law shall be treated for all purposes as a Nonstatutory Option.

 

(q)                                 “Nonstatutory Option” shall mean an Option that does not qualify as an incentive stock option as described in Section 422(b) of the Code.

 

(r)                                    “Option” shall mean an ISO or Nonstatutory Option granted under the Plan and entitling the holder to purchase Shares.

 

(s)                                   “Optionee” shall mean a person who holds an Option or SAR.

 

(t)                                    “Outside Director” shall mean a member of the Board of Directors who is not an Employee.

 

(u)                                 “Parent” shall mean any corporation (other than the Company) in an unbroken chain of corporations ending with the Company, if each of the corporations other than the Company owns stock possessing 50% or more of the total combined voting power of all 

 

(2)   Note that special considerations apply if the Company proposes to grant awards to an Employee of a Parent company.

 

14

 

classes of stock in one of the other corporations in such chain.  A corporation that attains the status of a Parent on a date after the adoption of the Plan shall be considered a Parent commencing as of such date.

 

(v)                                 “Participant” shall mean a holder of an Award or an estate of such individual who held an Award.

 

(w)                               “Plan” shall mean this lynda.com, Inc. 2008 Equity Incentive Plan.

 

(x)                                 “Purchase Price” shall mean the consideration for which one Share may be acquired under the Plan (other than upon exercise of an Option or SAR), as specified by the Board of Directors.

 

(y)                                 “Restricted Share” shall mean a Share awarded under Plan.

 

(z)                                  “Restricted Share Agreement” shall mean the agreement between the Company and the recipient of a Restricted Share that contains the terms, conditions and restrictions pertaining to such Restricted Share.

 

(aa)                          “SAR” shall mean a stock appreciation right granted under the Plan.

 

(bb)                          “SAR Agreement” shall mean the agreement between the Company and an Optionee that contains the terms, conditions and restrictions pertaining to the Optionee’s SAR.

 

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

 

(dd)                          “Service” shall mean service as an Employee, Outside Director or Consultant.

 

(ee)                            “Share” shall mean one share of Stock, as adjusted in accordance with Section 10 (if applicable).

 

(ff)                              “Stock” shall mean the Common Stock of the Company.

 

(gg)                            “Stock Option Agreement” shall mean the agreement between the Company and an Optionee that contains the terms, conditions and restrictions pertaining to the Optionee’s Option.

 

(hh)                          “Stock Unit” shall mean a bookkeeping entry representing the equivalent of one Share, as awarded under the Plan.

 

(ii)                                  “Stock Unit Agreement” shall mean the agreement between the Company and the recipient of a Stock Unit that contains the terms, conditions and restrictions pertaining to such Stock Unit.

 

(jj)                                “Subsidiary” shall mean any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company, if each of the corporations other

 

15

 

than the last corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.  A corporation that attains the status of a Subsidiary on a date after the adoption of the Plan shall be considered a Subsidiary commencing as of such date.

 

16

 

EXHIBIT A

 

SCHEDULE OF SHARES RESERVED FOR ISSUANCE UNDER THE PLAN

 

 

	
Date of Board
   Approval
    	
 
    	
Date of Stockholder
   Approval
    	
 
    	
Number of
   Shares† Added
    	
 
    	
Cumulative Number
   of Shares†
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
April 4, 2008
    	
 
    	
April 4, 2008
    	
 
    	
18,000,000
    	
 
    	
18,000,000
    
	
October 25, 2011
    	
 
    	
October 25, 2011
    	
 
    	
7,200,000
    	
 
    	
25,200,000
    
	
December 18, 2012
    	
 
    	
December 18, 2012
    	
 
    	
225,531
    	
 
    	
25,425,531
    
	
April 11, 2013
    	
 
    	
August 7, 2013
    	
 
    	
4,472,064
    	
 
    	
29,897,595
    
	
July 25, 2013
    	
 
    	
August 7, 2013
    	
 
    	
6,408,303
    	
 
    	
36,305,898
    

 

† All share numbers reflect (i) the 4-for-1 forward split of the Company’s Common Stock effected on July 30, 2012, and (ii) the 3-for-1 forward split of the Company’s Common Stock effected on August 7, 2013.

 

17EQUITY
PURCHASE AGREEMENT

 

BY
AND BETWEEN

 

TEXTMUNICATION
HOLDINGS, INC. 

 

AND

 

TARPON
BAY PARTNERS LLC

 

Dated

 

May
5, 2015

 

    	 

    	 

    

 

THIS
EQUITY PURCHASE AGREEMENT entered into as of the 5 day of May, 2015 (this “AGREEMENT”), by and between
TARPON BAY PARTNERS LLC, a Florida limited liability company (“INVESTOR”), and TEXTMUNICATION HOLDINGS,
INC., a Nevada corporation (the “COMPANY”).

 

WHEREAS,
the parties desire that, upon the terms and subject to the conditions contained herein, the Company shall issue and sell to Investor,
from time to time as provided herein, and Investor shall purchase up to Five Million Dollars ($5,000,000) of the Company’s
Common Stock (as defined below); and

 

NOW,
THEREFORE, the parties hereto agree as follows:

 

ARTICLE
I

CERTAIN
DEFINITIONS

 

Section
1.1 DEFINED TERMS as used in this Agreement, the following terms shall have the following meanings specified or indicated
(such meanings to be equally applicable to both the singular and plural forms of the terms defined)

 

“AGREEMENT”
shall have the meaning specified in the preamble hereof.

 

“BY-LAWS”
shall have the meaning specified in Section 4.7.

 

“CLAIM
NOTICE” shall have the meaning specified in Section 9.3(a).

 

“CLEARING
DATE” shall be the date in which the Estimated Put Shares (as defined in Section 2.2(a)) have been deposited into the Investor’s
brokerage account..

 

“CLOSING”
shall mean one of the closings of a purchase and sale of shares of Common Stock pursuant to Section 2.3.

 

“CLOSING
CERTIFICATE” shall mean the closing certificate of the Company in the form of Exhibit B hereto.

 

“CLOSING
PRICE” shall mean the closing bid price for the Company’s common stock on the Principal Market on a Trading Day as
reported by Bloomberg Finance L.P.

 

“COMMITMENT
PERIOD” shall mean the period commencing on the Effective Date, and ending on the earlier of (i) the date on which Investor
shall have purchased Put Shares pursuant to this Agreement for an aggregate Purchase Price of the Maximum Commitment Amount, or
(ii) the date occurring twenty four (24) months from the date of commencement of the Commitment Period.

 

“COMMON
STOCK” shall mean the Company’s common stock, $0.0001 par value per share, and any shares of any other class of common
stock whether now or hereafter authorized, having the right to participate in the distribution of dividends (as and when declared)
and assets (upon liquidation of the Company).

 

“COMMON
STOCK EQUIVALENTS” shall mean any securities that are convertible into or exchangeable for Common Stock or any options or
other rights to subscribe for or purchase Common Stock or any such convertible or exchangeable securities.

 

“COMPANY”
shall have the meaning specified in the preamble to this Agreement.

 

“DAMAGES”
shall mean any loss, claim, damage, liability, cost and expense (including, without limitation, reasonable attorneys’ fees
and disbursements and costs and expenses of expert witnesses and investigation).

 

    	1

    	 

    

 

“DISPUTE
PERIOD” shall have the meaning specified in Section 9.3(a).

 

“DOLLAR
VOLUME” shall mean the product of (a) the Closing Price multiplied by (b) the trading volume on the Principal Market on
a Trading Day.

 

“DTC”
shall have the meaning specified in Section 2.3.

 

“DWAC”
shall have the meaning specified in Section 2.3.

 

“EFFECTIVE
DATE” shall mean the date that the Registration Statement is declared effective by the SEC.

 

“ESTIMATED
PUT SHARES” shall have the meaning specified in Section 2.2(a)

 

“EXCHANGE
ACT” shall mean the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder.

 

“FAST”
shall have the meaning specified in Section 2.3.

 

“FINRA”
shall mean the Financial Industry Regulatory Authority, Inc.

 

“FLOOR
PRICE” shall have the meaning specified in Section 2.2(c).

 

“INDEMNIFIED
PARTY” shall have the meaning specified in Section 9.3(a).

 

“INDEMNIFYING
PARTY” shall have the meaning specified in Section 9.3(a).

 

“INDEMNITY
NOTICE” shall have the meaning specified in Section 9.3(b).

 

“INVESTMENT
AMOUNT” shall mean the dollar amount to be invested by Investor to purchase Put Shares with respect to any Put as notified
by the Company to Investor in accordance with Section 2.2.

 

“INVESTOR”
shall have the meaning specified in the preamble to this Agreement.

 

“LEGEND”
shall have the meaning specified in Section 8.1.

 

“MARKET
PRICE” shall mean the lowest Closing Price on the Principal Market for any Trading Day during the Valuation Period, as reported
by Bloomberg Finance L.P.

 

“MATERIAL
ADVERSE EFFECT” shall mean any effect on the business, operations, properties, or financial condition of the Company that
is material and adverse to the Company and/or any condition, circumstance, or situation that would prohibit or otherwise materially
interfere with the ability of the Company to enter into and perform its obligations under any of this Agreement.

 

“MAXIMUM
COMMITMENT AMOUNT” shall mean Five Million Dollars ($5,000,000).

 

“PAR
VALUE PAYMENT” shall have the meaning specified in Section 2.2(a).

 

“PERSON”
shall mean an individual, a corporation, a partnership, an association, a trust or other entity or organization, including a government
or political subdivision or an agency or instrumentality thereof.

 

“PRINCIPAL
MARKET” shall mean any of the national exchanges (i.e. NYSE, NYSE AMEX, Nasdaq), OTCQX, the OTC Bulletin Board, or other
principal exchange which is at the time the principal trading exchange or market for the Common Stock.

 

    	2

    	 

    

 

“PURCHASE
PRICE” shall mean 90% of the Market Price on such date on which the Purchase Price is calculated in accordance with the
terms and conditions of this Agreement.

 

“PUT”
shall mean the right of the Company to require the Investor to purchase shares of Common Stock, subject to the terms and conditions
of this Agreement.

 

“PUT
DATE” shall mean any Trading Day during the Commitment Period that a Put Notice is deemed delivered pursuant to Section
2.2(b).

 

“PUT
NOTICE” shall mean a written notice, substantially in the form of Exhibit A hereto, to Investor setting forth the Investment
Amount with respect to which the Company intends to require Investor to purchase shares of Common Stock pursuant to the terms
of this Agreement.

 

“PUT
SHARES” shall mean all shares of Common Stock issued or issuable pursuant to a Put that has been exercised or may be exercised
in accordance with the terms and conditions of this Agreement.

 

“REGISTERED
SECURITIES” shall mean the (a) Put Shares, and (b) any securities issued or issuable with respect to any of the foregoing
by way of exchange, stock dividend or stock split or in connection with a combination of shares, recapitalization, merger, consolidation
or other reorganization or otherwise. As to any particular Registered Securities, once issued such securities shall cease to be
Registrable Securities when (i) a Registration Statement has been declared effective by the SEC and such Registrable Securities
have been disposed of pursuant to a Registration Statement, (ii) such Registrable Securities have been sold under circumstances
under which all of the applicable conditions of Rule 144 are met, (iii) such time as such Registrable Securities have been otherwise
transferred to holders who may trade such shares without restriction under the Securities Act or (iv) in the opinion of counsel
to the Company, which counsel shall be reasonably acceptable to Investor, such Registrable Securities may be sold without registration
under the Securities Act or the need for an exemption from any such registration requirements and without any time, volume or
manner limitations pursuant to Rule 144(b)(i) (or any similar provision then in effect) under the Securities Act.

 

“REGISTRATION
STATEMENT” shall mean the Company’s effective registration statement on file with the SEC, and any follow up registration
statement or amendment thereto.

 

“REGULATION
D” shall mean Regulation D promulgated under the Securities Act.

 

“RULE
144” shall mean Rule 144 under the Securities Act or any similar provision then in force under the Securities Act.

 

“SEC”
shall mean the Securities and Exchange Commission.

 

“SECURITIES
ACT” shall have the meaning specified in the recitals of this Agreement.

 

“SEC
DOCUMENTS” shall mean, as of a particular date, all reports and other documents filed by the Company pursuant to Section
13(a) or 15(d) of the Exchange Act since the end of the Company’s then most recently completed and reported fiscal year
as of the time in question (provided that if the date in question is within ninety days of the beginning of the Company’s
fiscal year, the term shall include all documents filed since the beginning of the preceding fiscal year).

 

“SHORT
SALES” shall mean all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall
not be deemed to include the location and/or reservation of borrowable shares of Common Stock).

 

    	3

    	 

    

 

“SUBSCRIPTION
DATE” shall mean the date on which this Agreement is executed and delivered by the Company and Investor.

 

“THIRD
PARTY CLAIM” shall have the meaning specified in Section 9.3(a).

 

“TRADING
DAY” shall mean a day on which the Principal Market shall be open for business.

 

“TRANSACTION
DOCUMENTS” shall mean this Agreement and the Registration Rights Agreement.

 

“TRANSFER
AGENT” shall mean the transfer agent for the Common Stock (and to any substitute or replacement transfer agent for the Common
Stock upon the Company’s appointment of any such substitute or replacement transfer agent).

 

“UNDERWRITER”
shall mean any underwriter participating in any disposition of the Registered Securities on behalf of Investor pursuant to the
Registration Statement.

 

“VALUATION
EVENT” shall mean an event in which the Company at any time during a Valuation Period takes any of the following actions:

 

(a)
subdivides or combines the Common Stock;

 

(b)pays
a dividend in shares of Common Stock or makes any other distribution of shares of Common Stock, except for dividends paid with
respect to any series of preferred stock authorized by the Company, whether existing now or in the future;

 

(c)
issues any options or other rights to subscribe for or purchase shares of Common Stock other than pursuant to this Agreement,
and other than options or stock grants issued or issuable to directors, officers and employees pursuant to a stock option program,
whereby the price per share for which shares of Common Stock may at any time thereafter be issuable pursuant to such options or
other rights shall be less than the Closing Price in effect immediately prior to such issuance;

 

(d)issues
any securities convertible into or exchangeable for shares of Common Stock and the consideration per share for which shares of
Common Stock may at any time thereafter be issuable pursuant to the terms of such convertible or exchangeable securities shall
be less than the Closing Price in effect immediately prior to such issuance;

 

(e)
issues shares of Common Stock otherwise than as provided in the foregoing subsections (a) through (d), at a price per share
less, or for other consideration lower, than the Closing Price in effect immediately prior to such issuance, or without consideration;
or

 

(f)makes
a distribution of its assets or evidences of indebtedness to the holders of Common Stock as a dividend in liquidation or by way
of return of capital or other than as a dividend payable out of earnings or surplus legally available for dividends under applicable
law or any distribution to such holders made in respect of the sale of all or substantially all of the Company’s assets
(other than under the circumstances provided for in the foregoing subsections (a) through (e).

 

“VALUATION
PERIOD” shall mean the period of ten (10) Trading Days immediately following the Clearing Date associated with the applicable
Put Notice during which the Purchase Price of the Common Stock is valued; provided, however, that if a Valuation Event occurs
during any Valuation Period, a new Valuation Period shall begin on the Trading Day immediately after the occurrence of such Valuation
Event and end on the tenth (10th) Trading Day thereafter. Investor shall notify the Company in writing of the occurrence
of the Clearing Date associated with a Put Notice. The Valuation Period shall begin the first Trading Day following such written
notice from Investor.

 

    	4

    	 

    

 

ARTICLE
II

PURCHASE
AND SALE OF COMMON STOCK

 

Section
2.1 INVESTMENTS.

 

(a)PUTS.
Upon the terms and conditions set forth herein (including, without limitation, the provisions of Article VII), on any Put Date
the Company may exercise a Put by the delivery of a Put Notice. The number of Put Shares that Investor shall purchase pursuant
to such Put shall be determined by dividing the Investment Amount specified in the Put Notice by the Purchase Price with respect
to such Put Notice.

 

(b)
PROMISSORY NOTE. As a condition for the execution of this Agreement by the Investor, the Company shall issue to the Investor
a 10% promissory note in the principal amount equal to $50,000.00 (the “Note”) on the Subscription Date. The Note
shall have no registration rights.

 

Section
2.2 MECHANICS.

 

(a)PUT
NOTICE. At any time and from time to time during the Commitment Period, the Company may deliver a Put Notice to Investor, subject
to the conditions set forth in Section 7.2; provided, however, that the Investment Amount identified in the applicable Put Notice,
when taken together with all prior Put Notices, shall not exceed the Maximum Commitment Amount. On the Put Date the Company shall
deliver to Investor’s brokerage account estimated put shares equal to the Investment Amount indicated in the Put Notice
divided by the Closing Price on the Trading Day immediately preceding the Put Date, multiplied by one hundred twenty five percent
(125%) (the “Estimated Put Shares”). On the Trading Date immediately following delivery of the Estimated Put Shares,
Investor shall deliver payment by check or wire transfer to the Company an amount equal to the par value of the Estimated Put
Shares (“Par Value Payment”).

 

(b)DATE
OF DELIVERY OF PUT NOTICE. A Put Notice shall be deemed delivered on (i) the Trading Day it is received by facsimile or otherwise
by Investor if such notice is received on or prior to 12:00 noon New York time, or (ii) the immediately succeeding Trading Day
if it is received by facsimile or otherwise after 12:00 noon New York time on a Trading Day or at any time on a day which is not
a Trading Day.

 

(c)
FLOOR PRICE. In the event that, during a Valuation Period, the Closing Price on any Trading Day falls to a price equal to
seventy five percent (75%) of the average of the closing trade prices for the ten (10) trading days immediately preceding the
date of the Company’s Put Notice (a “Low Bid Price”), then for each such Trading Day, the parties shall have
no right to sell and shall be under no obligation to purchase one tenth (1/10th) of the Investment Amount specified in the Put
Notice, and the Investment Amount shall accordingly be deemed reduced by such amount. In the event that during a Valuation Period
there exists a Low Bid Price for any three (3) Trading Days—not necessarily consecutive—then the balance of each party’s
right and obligation to sell and purchase the Investment Amount under such Put Notice shall terminate on such second Trading Day
(“Termination Day”), and the Investment Amount shall be adjusted to include only one-tenth (1/10th) of
the initial Investment Amount for each Trading Day during the Valuation Period prior to the Termination Day that the Bid Price
equals or exceeds the Low Bid Price.

 

    	5

    	 

    

 

Section
2.3CLOSINGS. At the end of the Valuation Period the Purchase Price shall be established and the number of Put Shares shall
be determined for a particular Put. If the number of Estimated Put Shares initially delivered to Investor is greater than the
Put Shares purchased by Investor pursuant to such Put, then immediately after the Valuation Period the Investor shall deliver
to Company any excess Estimated Put Shares associated with such Put. If the number of Estimated Put Shares delivered to Investor
is less than the Put Shares purchased by Investor pursuant to a Put, then immediately after the Valuation Period the Company shall
deliver to Investor the difference between the Estimated Put Shares and the Put Shares issuable pursuant to such Put. The Closing
of a Put shall occur upon the first Trading Day following the completion of the Valuation Period, whereby Investor shall deliver
the Investment Amount specified in the Put Notice, less the Par Value Payment, by wire transfer of immediately available funds
to an account designated by the Company. In lieu of delivering physical certificates representing the Common Stock issuable in
accordance with clause (a) of this Section 2.3, and provided that the Transfer Agent then is participating in the Depository Trust
Company (“DTC”) Fast Automated Securities Transfer (“FAST”) program, upon request of Investor, but subject
to the applicable provisions of Article VIII hereof, the Company shall use its commercially reasonable efforts to cause the Transfer
Agent to electronically transmit, prior to the applicable Closing Date, the applicable Put Shares by crediting the account of
the Investor’s prime broker with DTC through its Deposit Withdrawal Agent Commission (“DWAC”) system, and provide
proof satisfactory to the Investor of such delivery. In addition, on or prior to such Closing Date, each of the Company and Investor
shall deliver to each other all documents, instruments and writings required to be delivered or reasonably requested by either
of them pursuant to this Agreement in order to implement and effect the transactions contemplated herein.

 

ARTICLE
III

REPRESENTATIONS
AND WARRANTIES OF INVESTOR

 

Investor
represents and warrants to the Company that:

 

Section
3.1INTENT. Investor is entering into this Agreement for its own account and Investor has no present arrangement (whether or
not legally binding) at any time to sell the Registered Securities to or through any person or entity; provided, however, that
Investor reserves the right to dispose of the Registered Securities at any time in accordance with federal and state securities
laws applicable to such disposition.

 

Section
3.2NO LEGAL ADVICE FROM THE COMPANY. The Investor acknowledges that it has had the opportunity to review this Agreement and
the transactions contemplated by this Agreement with its own legal counsel and investment and tax advisors. The Investor is relying
solely on such counsel and advisors and not on any statements or representations of the Company or any of its representatives
or agents for legal, tax or investment advice with respect to this investment, the transactions contemplated by this Agreement
or the securities laws of any jurisdiction.

 

Section
3.3SOPHISTICATED INVESTOR. Investor is a sophisticated investor (as described in Rule 506(b)(2)(ii) of Regulation D) and an
accredited investor (as defined in Rule 501 of Regulation D), and Investor has such experience in business and financial matters
that it is capable of evaluating the merits and risks of an investment in the Registered Securities. Investor acknowledges that
an investment in the Registered Securities is speculative and involves a high degree of risk.

 

Section
3.4AUTHORITY. (a) Investor has the requisite power and authority to enter into and perform its obligations under this Agreement
and the transactions contemplated hereby in accordance with its terms; (b) the execution and delivery of this Agreement and the
consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action and no
further consent or authorization of Investor or its partners is required; and (c) this Agreement has been duly authorized and
validly executed and delivered by Investor and constitutes a valid and binding obligation of Investor enforceable against it in
accordance with its terms, subject to applicable bankruptcy, insolvency, or similar laws relating to, or affecting generally the
enforcement of, creditors’ rights and remedies or by other equitable principles of general application.

 

Section
3.5NOT AN AFFILIATE. Investor is not an officer, director or “affiliate” (as that term is defined in Rule 405
of the Securities Act) of the Company.

 

    	6

    	 

    

 

Section
3.6 ORGANIZATION AND STANDING. Investor is a limited liability company duly organized, validly existing and in good standing
under the laws of the State of Florida and has all requisite power and authority to own, lease and operate its properties and
to carry on its business as now being conducted. Investor is duly qualified and in good standing in every jurisdiction in which
the nature of the business conducted or property owned by it makes such qualification necessary, other than those in which the
failure so to qualify would not have a material adverse effect on Investor.

 

Section
3.7ABSENCE OF CONFLICTS. The execution and delivery of this Agreement and any other document or instrument contemplated hereby,
and the consummation of the transactions contemplated hereby and thereby, and compliance with the requirements hereof and thereof,
will not (a) violate any law, rule, regulation, order, writ, judgment, injunction, decree or award binding on Investor, (b) violate
any provision of any indenture, instrument or agreement to which Investor is a party or is subject, or by which Investor or any
of its assets is bound, or conflict with or constitute a material default thereunder, (c) result in the creation or imposition
of any lien pursuant to the terms of any such indenture, instrument or agreement, or constitute a breach of any fiduciary duty
owed by Investor to any third party, or (d) require the approval of any third-party (that has not been obtained) pursuant to any
material contract, instrument, agreement, relationship or legal obligation to which Investor is subject or to which any of its
assets, operations or management may be subject.

 

Section
3.8DISCLOSURE; ACCESS TO INFORMATION. Investor had an opportunity to review copies of the SEC Documents filed on behalf of
the Company and has had access to all publicly available information with respect to the Company.

 

Section
3.9MANNER OF SALE. At no time was Investor presented with or solicited by or through any leaflet, public promotional meeting,
television advertisement or any other form of general solicitation or advertising.

 

ARTICLE
IV

REPRESENTATIONS
AND WARRANTIES OF THE COMPANY

 

The
Company represents and warrants to Investor that, except as disclosed in the SEC Documents:

 

Section
4.1ORGANIZATION OF THE COMPANY. The Company is a corporation duly organized and validly existing and in good standing under
the laws of the State of Nevada and has all requisite power and authority to own, lease and operate its properties and to carry
on its business as now being conducted. The Company is duly qualified as a foreign corporation to do business and is in good standing
in every jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary,
other than those in which the failure so to qualify would not have a Material Adverse Effect.

 

Section
4.2AUTHORITY. (a) The Company has the requisite corporate power and authority to enter into and perform its obligations under
this Agreement and to issue the Put Shares; (b) the execution and delivery of this Agreement by the Company and the consummation
by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary corporate action and no further
consent or authorization of the Company or its Board of Directors or stockholders is required; and (c) each of this Agreement
and has been duly executed and delivered by the Company and constitutes a valid and binding obligation of the Company enforceable
against the Company in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency,
or similar laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies or by other equitable
principles of general application.

 

Section
4.3CAPITALIZATION. As of the date hereof, the authorized capital stock of the Company consists of 250,000 shares of Common
Stock, $0.0001 par value per share, of which 77,182,191 shares were issued and outstanding as of April 29, 2015, na preferred
stock, __na___ shares authorized, _________________shares issued and outstanding; at [____na____], 2015.

 

    	7

    	 

    

 

Except
as otherwise disclosed in the SEC Documents or on Schedule 4.3, there are no outstanding securities which are convertible
into shares of Common Stock, whether such conversion is currently exercisable or exercisable only upon some future date or the
occurrence of some event in the future.

 

All
of the outstanding shares of Common Stock of the Company have been duly and validly authorized and issued and are fully paid and
non-assessable.

 

Section
4.4COMMON STOCK. The Company is in full compliance with all reporting requirements of the Exchange Act, and the Company has
maintained all requirements for the continued listing or quotation of the Common Stock, and such Common Stock is currently listed
or quoted on the Principal Market which is presently the OTCQX.

 

Section
4.5SEC DOCUMENTS. The Company may make available to Investor true and complete copies of the SEC Documents (including, without
limitation, proxy information and solicitation materials). To the Company’s knowledge, the Company has not provided to Investor
any information that, according to applicable law, rule or regulation, should have been disclosed publicly prior to the date hereof
by the Company, but which has not been so disclosed. As of their respective dates, the SEC Documents complied in all material
respects with the requirements of the Exchange Act, and other federal laws, rules and regulations applicable to such SEC Documents,
and none of the SEC Documents contained any untrue statement of a material fact or omitted to state a material fact required to
be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made,
not misleading. The financial statements of the Company included in the SEC Documents comply as to form and substance in all material
respects with applicable accounting requirements and the published rules and regulations of the SEC or other applicable rules
and regulations with respect thereto. Such financial statements have been prepared in accordance with generally accepted accounting
principles applied on a consistent basis during the periods involved (except (a) as may be otherwise indicated in such financial
statements or the notes thereto or (b) in the case of unaudited interim statements, to the extent they may not include footnotes
or may be condensed or summary statements) and fairly present in all material respects the financial position of the Company as
of the dates thereof and the results of operations and cash flows for the periods then ended (subject, in the case of unaudited
statements, to normal year-end audit adjustments).

 

Section
4.6VALID ISSUANCES. When issued and paid for as herein provided, the Put Shares shall be duly and validly issued, fully paid,
and non-assessable. The sales of the Put Shares pursuant to this Agreement, and the Company’s performance of its obligations
hereunder, shall not (a) result in the creation or imposition of any liens, charges, claims or other encumbrances upon the Put
Shares, or any of the assets of the Company, or (b) entitle the holders of outstanding shares of Common Stock to preemptive or
other rights to subscribe to or acquire the Common Stock or other securities of the Company. The Put Shares shall not subject
Investor to personal liability, in excess of the subscription price by reason of the ownership thereof.

 

Section
4.7NO CONFLICTS. The execution, delivery and performance of this Agreement by the Company and the consummation by the Company
of the transactions contemplated hereby, including without limitation the issuance of the Put Shares, do not and will not (a)
result in a violation of the Company’s Articles of Incorporation or By-Laws or (b) conflict with, or constitute a material
default (or an event that with notice or lapse of time or both would become a material default) under, or give to others any rights
of termination, amendment, acceleration or cancellation of, any material agreement, indenture, instrument or any “lock-up”
or similar provision of any underwriting or similar agreement to which the Company is a party, or (c) result in a violation of
any federal, state or local law, rule, regulation, order, judgment or decree (including federal and state securities laws and
regulations) applicable to the Company or by which any property or asset of the Company is bound or affected (except for such
conflicts, defaults, terminations, amendments, accelerations, cancellations and violations as would not, individually or in the
aggregate, have a Material Adverse Effect) nor is the Company otherwise in violation of, conflict with or in default under any
of the foregoing. The business of the Company is not being conducted in violation of any law, ordinance or regulation of any governmental
entity, except for possible violations that either singly or in the aggregate do not and will not have a Material Adverse Effect.
The Company is not required under federal, state or local law, rule or regulation to obtain any consent, authorization or order
of, or make any filing or registration with, any court or governmental agency in order for it to execute, deliver or perform any
of its obligations under this Agreement or issue and sell the Common Stock in accordance with the terms hereof (other than any
SEC, FINRA or state securities filings that may be required to be made by the Company subsequent to any Closing, any registration
statement that may be filed pursuant hereto); provided that, for purposes of the representation made in this sentence, the Company
is assuming and relying upon the accuracy of the relevant representations and agreements of Investor herein.

 

    	8

    	 

    

 

Section
4.8NO MATERIAL ADVERSE CHANGE. Since December 31, 2014 no event has occurred that would have a Material Adverse Effect on
the Company.

 

Section
4.9LITIGATION AND OTHER PROCEEDINGS. Except as disclosed in the Company’s SEC filings, there are no lawsuits or proceedings
pending or to the knowledge of the Company threatened, against the Company, nor has the Company received any written or oral notice
of any such action, suit, proceeding or investigation, which would have a Material Adverse Effect. No judgment, order, writ, injunction
or decree or award has been issued by or, so far as is known by the Company, requested of any court, arbitrator or governmental
agency which would have a Material Adverse Effect.

 

Section
4.10DILUTION. The number of shares of Common Stock issuable as Put Shares may increase substantially in certain circumstances,
including, but not necessarily limited to, the circumstance wherein the trading price of the Common Stock declines during the
period between the Effective Date and the end of the Commitment Period. The Company’s executive officers and directors have
studied and fully understand the nature of the transactions contemplated by this Agreement and recognize that they have a potential
dilutive effect. The board of directors of the Company has concluded in its good faith business judgment that such issuance is
in the best interests of the Company. The Company specifically acknowledges that, subject to Section 2.2(c), its obligation to
issue the Put Shares is binding upon the Company and enforceable regardless of the dilution such issuance may have on the ownership
interests of other shareholders of the Company.

 

ARTICLE
V

COVENANTS
OF INVESTOR

 

Section
5.1COMPLIANCE WITH LAW; TRADING IN SECURITIES. Investor’s trading activities with respect to shares of the Common Stock
will be in compliance with all applicable state and federal securities laws, rules and regulations and the rules and regulations
of FINRA and the Principal Market on which the Common Stock is listed or quoted.

 

Section
5.2 SHORT SALES AND CONFIDENTIALITY. Neither Investor nor any affiliate of the Investor acting on its behalf or pursuant to
any understanding with it will execute any Short Sales during the period from the date hereof to the end of the Commitment Period.
For the purposes hereof, and in accordance with Regulation SHO, the sale after delivery of a Put Notice of such number of shares
of Common Stock reasonably expected to be purchased under a Put Notice shall not be deemed a Short Sale.

 

Other
than to other Persons party to this Agreement, Investor has maintained the confidentiality of all disclosures made to it in connection
with this transaction (including the existence and terms of this transaction).

 

ARTICLE
VI

COVENANTS
OF THE COMPANY

 

Section
6.1RESERVATION OF COMMON STOCK. The Company will, from time to time as needed in advance of a Closing Date, reserve and keep
available until the consummation of such Closing, free of preemptive rights sufficient shares of Common Stock for the purpose
of enabling the Company to satisfy its obligation to issue the Put Shares to be issued in connection therewith. The number of
shares so reserved from time to time, as theretofore increased or reduced as hereinafter provided, may be reduced by the number
of shares actually delivered hereunder.

 

    	9

    	 

    

 

Section
6.2LISTING OF COMMON STOCK. If the Company applies to have the Common Stock traded on any other Principal Market, it shall
include in such application the Put Shares, and shall take such other action as is necessary or desirable in the reasonable opinion
of Investor to cause the Common Stock to be listed on such other Principal Market as promptly as possible. The Company shall use
its commercially reasonable efforts to continue the listing and trading of the Common Stock on the Principal Market (including,
without limitation, maintaining sufficient net tangible assets) and will comply in all respects with the Company’s reporting,
filing and other obligations under the bylaws or rules of the FINRA and the Principal Market.

 

Section
6.3CERTAIN AGREEMENTS. So long as this Agreement remains in effect, the Company covenants and agrees that it will not, without
the prior written consent of the Investor, enter into any other equity line of credit agreement with a third party during the
Commitment Period having terms and conditions substantially comparable to this Agreement. For the avoidance of doubt, nothing
contained in the Transaction Documents shall restrict, or require the Investor’s consent for, any agreement providing for
the issuance or distribution of (or the issuance or distribution of) any equity securities pursuant to any agreement or arrangement
that is not commonly understood to be an “equity line of credit.”

 

ARTICLE
VII

CONDITIONS
TO DELIVERY OF

PUT
NOTICES AND CONDITIONS TO CLOSING

 

Section
7.1CONDITIONS PRECEDENT TO THE OBLIGATION OF THE COMPANY TO ISSUE AND SELL COMMON STOCK. The obligation hereunder of the Company
to issue and sell the Put Shares to Investor is subject to the satisfaction of each of the conditions set forth below.

 

(a)ACCURACY
OF INVESTOR’S REPRESENTATIONS AND WARRANTIES. The representations and warranties of Investor shall be true and correct in
all material respects as of the date of this Agreement and as of the date of each such Closing as though made at each such time.

 

(b)PERFORMANCE
BY INVESTOR. Investor shall have performed, satisfied and complied in all respects with all covenants, agreements and conditions
required by this Agreement to be performed, satisfied or complied with by Investor at or prior to such Closing.

 

(c)Principal
Market Regulation. The Company shall not issue any Put Shares, and the Investor shall not have the right to receive any
Put Shares, if the issuance of such shares would exceed the aggregate number of shares of Common Stock which the Company may issue
without breaching the Company’s obligations under the rules or regulations of the Principal Market (the “Exchange
Cap”).

 

Section
7.2CONDITIONS PRECEDENT TO THE RIGHT OF THE COMPANY TO DELIVER A PUT NOTICE AND THE OBLIGATION OF INVESTOR TO PURCHASE PUT
SHARES. The right of the Company to deliver a Put Notice and the obligation of Investor hereunder to acquire and pay for the Put
Shares is subject to the satisfaction of each of the following conditions:

 

(a)EFFECTIVE
REGISTRATION STATEMENT. The Registration Statement, and any amendment or supplement thereto, shall remain effective for the sale
by Investor of the Registered Securities subject to such Put Notice, and (i) neither the Company nor Investor shall have received
notice that the SEC has issued or intends to issue a stop order with respect to such Registration Statement or that the SEC otherwise
has suspended or withdrawn the effectiveness of such Registration Statement, either temporarily or permanently, or intends or
has threatened to do so and (ii) no other suspension of the use or withdrawal of the effectiveness of such Registration Statement
or related prospectus shall exist.

 

    	10

    	 

    

 

(b)ACCURACY
OF THE COMPANY’S REPRESENTATIONS AND WARRANTIES. The representations and warranties of the Company shall be true and correct
in all material respects (except for representations and warranties specifically made as of a particular date), except for any
conditions which have temporarily caused any representations or warranties herein to be incorrect and which have been corrected
with no continuing impairment to the Company or Investor.

 

(c)PERFORMANCE
BY THE COMPANY. The Company shall have performed, satisfied and complied in all material respects with all covenants, agreements
and conditions required by this Agreement to be performed, satisfied or complied with by the Company.

 

(d)NO
INJUNCTION. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or adopted by any court or governmental authority of competent jurisdiction that prohibits or directly and materially adversely
affects any of the transactions contemplated by this Agreement, and no proceeding shall have been commenced that may have the
effect of prohibiting or materially adversely affecting any of the transactions contemplated by this Agreement.

 

(e)ADVERSE
CHANGES. Since the date of filing of the Company’s most recent SEC Document, no event that had or is reasonably likely to
have a Material Adverse Effect has occurred.

 

(f)NO
SUSPENSION OF TRADING IN OR DELISTING OF COMMON STOCK. The trading of the Common Stock shall not have been suspended by the SEC,
the Principal Market or the FINRA and the Common Stock shall have been approved for listing or quotation on and shall not have
been delisted from the Principal Market.

 

(g)[INTENTIONALLY
OMITTED]

 

(h)TEN
PERCENT LIMITATION. On each Closing Date, the number of Put Shares then to be purchased by Investor shall not exceed the number
of such shares that, when aggregated with all other shares of Common Stock then owned by Investor beneficially or deemed beneficially
owned by Investor, would result in Investor owning more than 9.99% of all of such Common Stock as would be outstanding on such
Closing Date, as determined in accordance with Section 16 of the Exchange Act and the regulations promulgated thereunder. For
purposes of this Section, in the event that the amount of Common Stock outstanding as determined in accordance with Section 16
of the Exchange Act and the regulations promulgated thereunder is greater on a Closing Date than on the date upon which the Put
Notice associated with such Closing Date is given, the amount of Common Stock outstanding on such Closing Date shall govern for
purposes of determining whether Investor, when aggregating all purchases of Common Stock made pursuant to this Agreement, would
own more than 9.99% of the Common Stock following such Closing Date.

 

(i)Principal
Market Regulation. The Company shall not issue any Put Shares, and the Investor shall not have the right to receive any Put
Shares, if the issuance of such shares would exceed the Exchange Cap.

 

(j)NO
KNOWLEDGE. The Company shall have no knowledge of any event more likely than not to have the effect of causing such Registration
Statement to be suspended or otherwise ineffective (which event is more likely than not to occur within the fifteen (15) Trading
Days following the Trading Day on which such Put Notice is deemed delivered).

 

(k)NO
VIOLATION OF SHAREHOLDER APPROVAL REQUIREMENT. The issuance of shares of Common Stock with respect to the applicable Closing,
if any, shall not violate the shareholder approval requirements of the Principal Market. 

 

    	11

    	 

    

 

(l)NO
VALUATION EVENT. No Valuation Event shall have occurred since the Put Date.

 

(m)OTHER.
On the date of delivery of each Put Notice, Investor shall have received a certificate in substantially the form and substance
of Exhibit B hereto, executed by an executive officer of the Company and to the effect that all the conditions to such Closing
shall have been satisfied as at the date of each such certificate.

 

ARTICLE
VIII

LEGENDS

 

Section
8.1 NO STOCK LEGEND OR STOCK TRANSFER RESTRICTIONS. No legend shall be placed on the share certificates representing the Put
Shares.

 

Section
8.2INVESTOR’S COMPLIANCE. Nothing in this Article VIII shall affect in any way Investor’s obligations under any
agreement to comply with all applicable securities laws upon the sale of the Common Stock.

 

ARTICLE
IX

NOTICES;
INDEMNIFICATION

 

Section
9.1 NOTICES. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder
shall be in writing and, unless otherwise specified herein, shall be (a) personally served, (b) deposited in the mail, registered
or certified, return receipt requested, postage prepaid, (c) delivered by reputable air courier service with charges prepaid,
or (d) transmitted by hand delivery, telegram, facsimile, or email as a PDF, addressed as set forth below or to such other address
as such party shall have specified most recently by written notice given in accordance herewith. Any notice or other communication
required or permitted to be given hereunder shall be deemed effective (i) upon hand delivery or delivery by facsimile, with accurate
confirmation generated by the transmitting facsimile machine, or email as a PDF, at the address or number designated below (if
delivered on a business day during normal business hours where such notice is to be received), or the first business day following
such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or
(ii) on the second business day following the date of mailing by express courier service or on the fifth business day after deposited
in the mail, in each case, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first
occur.

 

    	12

    	 

    

 

The
addresses for such communications shall be:

 

	 	If to the Company:	 
	 	 	 	 
	 	 	TEXTMUNICATION
    HOLDINGS, INC.	 
	 	 	1940
    Contra Costa Blvd.	 
	 	 	Pleasant
    Hill, CA 94523	 
	 	 	Attn: Wais
    Asefi                                      	 
	 	 	Chief
    Executive Officer	 
	 	 	 	 
	 	 	Copy
    to (which shall not constitute notice):	 
	 	 	______________________	 
	 	 	______________________	 
	 	 	______________________	 
	 	 	Attn:
    _______________	 
	 	 	Tel:
    _______________	 
	 	 	Fax:
    _______________	 
	 	 	 	 
	 	If to Investor:	 
	 	 	 	 
	 	 	Tarpon
    Bay Partners LLC	 
	 	 	17210
    Germano Court	 
	 	 	Naples,
    FL 34110	 
	 	 	Tel:	 
	 	 	Fax:	 

 

Either
party hereto may from time to time change its address or facsimile number for notices under this Section 9.1 by giving at least
ten (10) days’ prior written notice of such changed address or facsimile number to the other party hereto.

 

Section
9.2INDEMNIFICATION. Each party (an “Indemnifying Party”) agrees to indemnify and hold harmless the other party
along with its officers, directors, employees, and authorized agents, and each Person or entity, if any, who controls such party
within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (an “Indemnified Party”)
from and against any Damages, joint or several, and any action in respect thereof to which the Indemnified Party becomes subject
to, resulting from, arising out of or relating to (i) any misrepresentation, breach of warranty or nonfulfillment of or failure
to perform any covenant or agreement on the part of Indemnifying Party contained in this Agreement, (ii) any untrue statement
or alleged untrue statement of a material fact contained in the Registration Statement or any post-effective amendment thereof
or supplement thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary
to make the statements therein not misleading, (iii) any untrue statement or alleged untrue statement of a material fact contained
in any preliminary prospectus or contained in the final prospectus (as amended or supplemented, if the Company files any amendment
thereof or supplement thereto with the SEC) or the omission or alleged omission to state therein any material fact necessary to
make the statements made therein, in the light of the circumstances under which the statements therein were made, not misleading,
or (iv) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any state securities law or
any rule or regulation under the Securities Act, the Exchange Act or any state securities law, as such Damages are incurred, except
to the extent such Damages result primarily from Indemnified Party’s failure to perform any covenant or agreement contained
in this Agreement or Indemnified Party’s negligence, recklessness or bad faith in performing its obligations under this
Agreement; provided, however, that the foregoing indemnity agreement shall not apply to any Damages of an Indemnified Party to
the extent, but only to the extent, arising out of or based upon any untrue statement or alleged untrue statement or omission
or alleged omission made by an Indemnifying Party in reliance upon and in conformity with written information furnished to the
Indemnifying Party by the Indemnified Party expressly for use in the Registration Statement, any post-effective amendment thereof
or supplement thereto, or any preliminary prospectus or final prospectus (as amended or supplemented).

 

    	13

    	 

    

 

Section
9.3METHOD OF ASSERTING INDEMNIFICATION CLAIMS. All claims for indemnification by any Indemnified Party (as defined below)
under Section 9.2 shall be asserted and resolved as follows:

 

(a)In
the event any claim or demand in respect of which an Indemnified Party might seek indemnity under Section 9.2 is asserted against
or sought to be collected from such Indemnified Party by a person other than a party hereto or an affiliate thereof (a “THIRD
PARTY CLAIM”), the Indemnified Party shall deliver a written notification, enclosing a copy of all papers served, if any,
and specifying the nature of and basis for such Third Party Claim and for the Indemnified Party’s claim for indemnification
that is being asserted under any provision of Section 9.2 against an Indemnifying Party, together with the amount or, if not then
reasonably ascertainable, the estimated amount, determined in good faith, of such Third Party Claim (a “CLAIM NOTICE”)
with reasonable promptness to the Indemnifying Party. If the Indemnified Party fails to provide the Claim Notice with reasonable
promptness after the Indemnified Party receives notice of such Third Party Claim, the Indemnifying Party shall not be obligated
to indemnify the Indemnified Party with respect to such Third Party Claim to the extent that the Indemnifying Party’s ability
to defend has been prejudiced by such failure of the Indemnified Party. The Indemnifying Party shall notify the Indemnified Party
as soon as practicable within the period ending thirty (30) calendar days following receipt by the Indemnifying Party of either
a Claim Notice or an Indemnity Notice (as defined below) (the “DISPUTE PERIOD”) whether the Indemnifying Party disputes
its liability or the amount of its liability to the Indemnified Party under Section 9.2 and whether the Indemnifying Party desires,
at its sole cost and expense, to defend the Indemnified Party against such Third Party Claim.

 

(i)If
the Indemnifying Party notifies the Indemnified Party within the Dispute Period that the Indemnifying Party desires to defend
the Indemnified Party with respect to the Third Party Claim pursuant to this Section 9.3(a), then the Indemnifying Party shall
have the right to defend, with counsel reasonably satisfactory to the Indemnified Party, at the sole cost and expense of the Indemnifying
Party, such Third Party Claim by all appropriate proceedings, which proceedings shall be vigorously and diligently prosecuted
by the Indemnifying Party to a final conclusion or will be settled at the discretion of the Indemnifying Party (but only with
the consent of the Indemnified Party in the case of any settlement that provides for any relief other than the payment of monetary
damages or that provides for the payment of monetary damages as to which the Indemnified Party shall not be indemnified in full
pursuant to Section 9.2). The Indemnifying Party shall have full control of such defense and proceedings, including any compromise
or settlement thereof; provided, however, that the Indemnified Party may, at the sole cost and expense of the Indemnified Party,
at any time prior to the Indemnifying Party’s delivery of the notice referred to in the first sentence of this clause (i),
file any motion, answer or other pleadings or take any other action that the Indemnified Party reasonably believes to be necessary
or appropriate to protect its interests; and provided further, that if requested by the Indemnifying Party, the Indemnified Party
will, at the sole cost and expense of the Indemnifying Party, provide reasonable cooperation to the Indemnifying Party in contesting
any Third Party Claim that the Indemnifying Party elects to contest. The Indemnified Party may participate in, but not control,
any defense or settlement of any Third Party Claim controlled by the Indemnifying Party pursuant to this clause (i), and except
as provided in the preceding sentence, the Indemnified Party shall bear its own costs and expenses with respect to such participation.
Notwithstanding the foregoing, the Indemnified Party may takeover the control of the defense or settlement of a Third Party Claim
at any time if it irrevocably waives its right to indemnity under Section 9.2 with respect to such Third Party Claim.

 

    	14

    	 

    

 

(ii)If
the Indemnifying Party fails to notify the Indemnified Party within the Dispute Period that the Indemnifying Party desires to
defend the Third Party Claim pursuant to Section 9.3(a), or if the Indemnifying Party gives such notice but fails to prosecute
vigorously and diligently or settle the Third Party Claim, or if the Indemnifying Party fails to give any notice whatsoever within
the Dispute Period, then the Indemnified Party shall have the right to defend, at the sole cost and expense of the Indemnifying
Party, the Third Party Claim by all appropriate proceedings, which proceedings shall be prosecuted by the Indemnified Party in
a reasonable manner and in good faith or will be settled at the discretion of the Indemnified Party(with the consent of the Indemnifying
Party, which consent will not be unreasonably withheld). The Indemnified Party will have full control of such defense and proceedings,
including any compromise or settlement thereof; provided, however, that if requested by the Indemnified Party, the Indemnifying
Party will, at the sole cost and expense of the Indemnifying Party, provide reasonable cooperation to the Indemnified Party and
its counsel in contesting any Third Party Claim which the Indemnified Party is contesting. Notwithstanding the foregoing provisions
of this clause (ii), if the Indemnifying Party has notified the Indemnified Party within the Dispute Period that the Indemnifying
Party disputes its liability or the amount of its liability hereunder to the Indemnified Party with respect to such Third Party
Claim and if such dispute is resolved in favor of the Indemnifying Party in the manner provided in clause (iii) below, the Indemnifying
Party will not be required to bear the costs and expenses of the Indemnified Party’s defense pursuant to this clause (ii)
or of the Indemnifying Party’s participation therein at the Indemnified Party’s request, and the Indemnified Party
shall reimburse the Indemnifying Party in full for all reasonable costs and expenses incurred by the Indemnifying Party in connection
with such litigation. The Indemnifying Party may participate in, but not control, any defense or settlement controlled by the
Indemnified Party pursuant to this clause (ii), and the Indemnifying Party shall bear its own costs and expenses with respect
to such participation.

 

(iii)If
the Indemnifying Party notifies the Indemnified Party that it does not dispute its liability or the amount of its liability to
the Indemnified Party with respect to the Third Party Claim under Section 9.2 or fails to notify the Indemnified Party within
the Dispute Period whether the Indemnifying Party disputes its liability or the amount of its liability to the Indemnified Party
with respect to such Third Party Claim, the amount of Damages specified in the Claim Notice shall be conclusively deemed a liability
of the Indemnifying Party under Section 9.2 and the Indemnifying Party shall pay the amount of such Damages to the Indemnified
Party on demand. If the Indemnifying Party has timely disputed its liability or the amount of its liability with respect to such
claim, the Indemnifying Party and the Indemnified Party shall proceed in good faith to negotiate a resolution of such dispute;
provided, however, that if the dispute is not resolved within thirty (30) days after the Claim Notice, the Indemnifying Party
shall be entitled to institute such legal action as it deems appropriate.

 

(b)In
the event any Indemnified Party should have a claim under Section 9.2 against the Indemnifying Party that does not involve a Third
Party Claim, the Indemnified Party shall deliver a written notification of a claim for indemnity under Section 9.2 specifying
the nature of and basis for such claim, together with the amount or, if not then reasonably ascertainable, the estimated amount,
determined in good faith, of such claim (an “INDEMNITY NOTICE”) with reasonable promptness to the Indemnifying Party.
The failure by any Indemnified Party to give the Indemnity Notice shall not impair such party’s rights hereunder except
to the extent that the Indemnifying Party demonstrates that it has been irreparably prejudiced thereby. If the Indemnifying Party
notifies the Indemnified Party that it does not dispute the claim or the amount of the claim described in such Indemnity Notice
or fails to notify the Indemnified Party within the Dispute Period whether the Indemnifying Party disputes the claim or the amount
of the claim described in such Indemnity Notice, the amount of Damages specified in the Indemnity Notice will be conclusively
deemed a liability of the Indemnifying Party under Section 9.2 and the Indemnifying Party shall pay the amount of such Damages
to the Indemnified Party on demand. If the Indemnifying Party has timely disputed its liability or the amount of its liability
with respect to such claim, the Indemnifying Party and the Indemnified Party shall proceed in good faith to negotiate a resolution
of such dispute; provided, however, that if the dispute is not resolved within thirty (30) days after the Claim Notice, the Indemnifying
Party shall be entitled to institute such legal action as it deems appropriate.

 

(c)The
Indemnifying Party agrees to pay the Indemnified Party, promptly as such expenses are incurred and are due and payable, for any
reasonable legal fees or other reasonable expenses incurred by them in connection with investigating or defending any such Claim.

 

    	15

    	 

    

 

(d)The
indemnity provisions contained herein shall be in addition to (i) any cause of action or similar rights of the Indemnified Party
against the Indemnifying Party or others, and (ii) any liabilities the Indemnifying Party may be subject to.

 

ARTICLE
X

MISCELLANEOUS

 

Section
10.1GOVERNING LAW; JURISDICTION. This Agreement shall be governed by and interpreted in accordance with the laws of the State
of Florida without regard to the principles of conflicts of law. Each of the Company and Investor hereby submit to the exclusive
jurisdiction of the United States Federal and state courts located in Collier County, State of Florida with respect to any dispute
arising under this Agreement, the agreements entered into in connection herewith or the transactions contemplated hereby or thereby.

 

Section
10.2JURY TRIAL WAIVER. The Company and the Investor hereby waive a trial by jury in any action, proceeding or counterclaim
brought by either of the parties hereto against the other in respect of any matter arising out of or in connection with the Transaction
Documents.

 

Section
10.3ASSIGNMENT. This Agreement shall be binding upon and inure to the benefit of the Company and Investor and their respective
successors. Neither this Agreement nor any rights of Investor or the Company hereunder may be assigned by either party to any
other person.

 

Section
10.4THIRD PARTY BENEFICIARIES. This Agreement is intended for the benefit of the Company and Investor and their respective
successors, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

 

Section
10.5TERMINATION. The Company may terminate this Agreement at any time by written notice to the Investor. Additionally, this
Agreement shall terminate at the end of Commitment Period or as otherwise provided herein; provided, however, that the provisions
of Articles IX, and Sections 10.1 and 10.2 shall survive the termination of this Agreement for a period of twenty four (24) months.

 

Section
10.6ENTIRE AGREEMENT, AMENDMENT; NO WAIVER. This Agreement and the instruments referenced herein contain the entire understanding
of the Company and Investor with respect to the matters covered herein and therein and, except as specifically set forth herein
or therein, neither the Company nor Investor makes any representation, warranty, covenant or undertaking with respect to such
matters. This Agreement may not be amended.

 

Section
10.7FEES AND EXPENSES. The Company agrees to pay its own expenses in connection with the preparation of this Agreement and
performance of its obligations hereunder. The Company shall pay all stamp or other similar taxes and duties levied in connection
with issuance of the Put Shares pursuant hereto.

 

Section
10.8COUNTERPARTS. This Agreement may be executed in multiple counterparts, each of which may be executed by less than all
of the parties and shall be deemed to be an original instrument which shall be enforceable against the parties actually executing
such counterparts and all of which together shall constitute one and the same instrument. This Agreement may be delivered to the
other parties hereto by facsimile transmission or email of a copy of this Agreement bearing the signature of the parties so delivering
this Agreement.

 

Section
10.9SEVERABILITY. In the event that any provision of this Agreement 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; provided
that such severability shall be ineffective if it materially changes the economic benefit of this Agreement to any party.

 

Section
10.10FURTHER ASSURANCES. Each party shall do and perform, or cause to be done and performed, all such further acts and things,
and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably
request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions
contemplated hereby.

 

    	16

    	 

    

 

Section
10.11NO STRICT CONSTRUCTION. The language used in this Agreement will be deemed to be the language chosen by the parties to
express their mutual intent, and no rules of strict construction will be applied against any party.

 

Section
10.12EQUITABLE RELIEF. The Company recognizes that in the event that it fails to perform, observe, or discharge any or all
of its obligations under this Agreement, any remedy at law may prove to be inadequate relief to Investor. The Company therefore
agrees that Investor shall be entitled to temporary and permanent injunctive relief in any such case without the necessity of
proving actual damages.

 

Section
10.13TITLE AND SUBTITLES. The titles and subtitles used in this Agreement are used for the convenience of reference and are
not to be considered in construing or interpreting this Agreement.

 

Section
10.14REPORTING ENTITY FOR THE COMMON STOCK. The reporting entity relied upon for the determination of the Closing Price for
the Common Stock on any given Trading Day for the purposes of this Agreement shall be Bloomberg Finance L.P. or any successor
thereto. The written mutual consent of Investor and the Company shall be required to employ any other reporting entity.

 

Section
10.15PUBLICITY. The Company and Investor shall consult with each other in issuing any press releases or otherwise making public
statements with respect to the transactions contemplated hereby and no party shall issue any such press release or otherwise make
any such public statement without the prior written consent of the other parties, which consent shall not be unreasonably withheld
or delayed, except that no prior consent shall be required if such disclosure is required by law, in which such case the disclosing
party shall provide the other parties with prior notice of such public statement. Notwithstanding the foregoing, the Company shall
not publicly disclose the name of Investor without the prior written consent of such Investor, except to the extent required by
law. Investor acknowledges that this Agreement and all or part of the Transaction Documents may be deemed to be “material
contracts” as that term is defined by Item 601(b)(10) of Regulation S-K, and that the Company may therefore be required
to file such documents as exhibits to reports or registration statements filed under the Securities Act or the Exchange Act. Investor
further agrees that the status of such documents and materials as material contracts shall be determined solely by the Company,
in consultation with its counsel.

 

    	17

    	 

    

 

[SIGNATURE
PAGE]

 

IN
WITNESS WHEREOF, the parties hereto have caused this Equity Purchase Agreement to be executed by the undersigned, thereunto
duly authorized, as of the date first set forth above.

 

	 	TARPON BAY PARTNERS LLC
	 	 	 
	 	By:	/s/
    Stephen Hicks
	 	Name:	Stephen
    Hicks
	 	Title:	Manager
	 	 	 
	 	TEXTMUNICATION HOLDINGS, INC.
	 	 	 
	 	By:	/s/
    Wais Asefi
	 	Name:	Wais
    Asefi
	 	Title:	Chief
    Executive Officer

 

    	 

    	 

    

 

Schedule
4.3 – Outstanding Securities

 

    	 

    	 

    

 

EXHIBITS

 

	EXHIBIT
    A	 	Put
    Notice
	 	 	 
	EXHIBIT
    B	 	Closing
    Certificate

 

    	 

    	 

    

 

EXHIBIT
A

 

FORM
OF PUT NOTICE

 

TO: TARPON
BAY PARTNERS LLC

 

We
refer to the Equity Purchase Agreement dated May____, 2015 (the “Agreement”) entered into by TEXTMUNICATION HOLDINGS,
INC. (the “Company”) and you. Capitalized terms defined in the Agreement shall, unless otherwise defined, have
the same meaning when used herein.

 

We
hereby:

 

	 	1.	Give
    you notice that we require you to purchase $_________ (the “Investment Amount”) in Put Shares;
	 	 	 
	 	2.	Determine
    the Floor Price for this Put, as defined in Section 2.2(c) of the Agreement, to be $___________; and
	 	 	 
	 	3.	Certify
that, as of the date hereof, to the best of our knowledge, the conditions set forth in Section 7.2 of the Agreement are satisfied.

 

Date: _____________,
20__

 

	 	TEXTMUNICATION HOLDINGS, INC.
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	Chief
    Executive Officer

 

    	 

    	 

    

 

EXHIBIT
B

 

FORM
OF

 

CERTIFICATE
OF THE CHIEF EXECUTIVE OFFICER

 

OF

 

TEXTMUNICATION
HOLDINGS, INC. 

 

Pursuant
to Section 7.2(m) of that certain Equity Purchase Agreement dated May____, 2015 (the “Agreement”) by and between the
Company and Tarpon Bay Partners LLC (the “Investor”), the undersigned, in his capacity as the Chief Executive Officer
of TEXTMUNICATION HOLDINGS, INC. (the “Company”), and not in his individual capacity, hereby certifies,
as of the date hereof (such date, the “Condition Satisfaction Date”), the

following:

 

1.The
representations and warranties of the Company are true and correct in all material respects as of the Condition Satisfaction Date
as though made on the Condition Satisfaction Date (except for representations and warranties specifically made as of a particular
date) with respect to all periods, and as to all events and circumstances occurring or existing to and including the Condition
Satisfaction Date, except for any conditions which have temporarily caused any representations or warranties of the Company set
forth in the Agreement to be incorrect and which have been corrected with no continuing impairment to the Company or Investor;
and

 

2.All
of the Company’s conditions to Closing set forth in Section 7.2 of the Agreement have been satisfied as of the Condition
Satisfaction Date.

 

Capitalized
terms used herein shall have the meanings set forth in the Agreement unless otherwise defined herein.

 

IN
WITNESS WHEREOF, the undersigned has hereunto affixed his hand as of the ___ day of ____________, 20__.

 

	 	By:	
	 	 	Chief
    Executive Officer

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