Document:

ex10-5.htm

Exhibit 10.5

 

 

 

DIGITAL BUSINESS CONTINGENT PAYMENT AGREEMENT

 

 

dated as of December 3, 2014

 

 

by and between

 

 

NOOK MEDIA INC.,

 

 

BARNES & NOBLE, INC.

 

 

and

 

 

PEARSON EDUCATION, INC.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

  

  

 

 

Table of Contents

 

 

	 	 	Page
	 	 	 
	
SECTION 1.

	
Definitions

	
1

	
SECTION 2.

	
No Certificates

	
6

	
SECTION 3.

	
Rights of the Investor

	
6

	
SECTION 4.

	
Non-transferability

	
6

	
SECTION 5.

	
CPR Payment Amount and Procedures

	
6

	
SECTION 6.

	
Adjustment Procedures

	
8

	
SECTION 7.

	
The Digital Business

	
9

	
SECTION 8.

	
Guarantee of Obligations

	
10

	
SECTION 9.

	
Assumption of Obligations

	
10

	
SECTION 10.

	
Termination; Effect of Termination

	
10

	
SECTION 11.

	
Intent

	
10

	
SECTION 12.

	
Notices

	
11

	
SECTION 13.

	
Amendments, Waivers, etc.

	
12

	
SECTION 14.

	
Severability

	
12

	
SECTION 15.

	
No Third-Party Beneficiaries

	
12

	
SECTION 16.

	
Assignment

	
12

	
SECTION 17.

	
Successors

	
12

	
SECTION 18.

	
Counterparts

	
13

	
SECTION 19.

	
No Fiduciary Obligations

	
13

	
SECTION 20.

	
Headings

	
13

	
SECTION 21.

	
Specific Enforcement; Governing Law; Submission to Jurisdiction; Waiver of Jury Trial

	
13

 

 

 

  

i  

  

 

 

This DIGITAL BUSINESS CONTINGENT PAYMENT AGREEMENT (this “Agreement”), dated as of December 3, 2014, is entered into by and between NOOK Media Inc., a Delaware corporation (“NMI”), Barnes & Noble, Inc., a Delaware corporation (the “Company”), and Pearson Education, Inc., a Delaware corporation (the “Investor”). NMI, the Company and the Investor each may be referred to herein individually as a “Party” and collectively as the “Parties.”

 

WHEREAS, the Investor is consenting on the date hereof to the Digital business being distributed by NOOK Media LLC (“NOOK Media”) to NMI; and

 

WHEREAS, in connection with such consent, NMI desires to confer on the Investor a contingent payment right (the “Contingent Payment Right”) in the event NMI engages in a CPR Sale Transaction or CPR Dividend Event, subject to the terms and conditions set forth herein.

 

NOW, THEREFORE, for good and valuable consideration, NMI, the Company and Investor hereby agree as follows:

 

SECTION 1.  Definitions.  The following terms shall have the meaning as set forth below:

 

(a)  “Affiliate” means, with respect to any specified person or entity, any other person or entity directly or indirectly controlling or controlled by, or under direct or indirect common control with, such specified person or entity; provided, that NOOK Media and its subsidiaries shall not be deemed to be Affiliates of the Investor.  For the purposes of this definition, “control”, when used with respect to any specified person, means the power to direct the management and policies of such person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing.

 

(b)  “Agreement” has the meaning set forth in the Preamble.

 

(c)  “Business Day” means any weekday that is not a day on which banking institutions in New York, New York are authorized or required by law, regulation or executive order to be closed.

 

(d)  “Company” has the meaning set forth in the Preamble.

 

(e)  “Contingent Payment Right” has the meaning set forth in the Recitals.

 

(f)  “CPR Deadline” means 5:00 p.m., New York City time, on the third anniversary of the date hereof; provided, however, that if any Person (or group of Persons) has submitted to the Company or any of its Affiliates or representatives a bona fide proposal, inquiry or offer relating to a CPR Sale Transaction or the Company or any of its Affiliates (which proposal, inquiry or offer has not been withdrawn or lapsed) or representatives have engaged in any negotiations or discussions with any Person (or 

 

 

 

  

  

  

 

 

 

group of Persons), other than the Investor and its Affiliates, relating to a CPR Sale Transaction (which negotiations have not terminated) after the date hereof and prior to the third anniversary of the Closing Date, then the CPR Deadline shall be the fourth anniversary of the Closing Date.

 

(g)  “CPR Dividend Declaration Date” means the date and time on which there is a declaration of a dividend or other distribution, the payment of which would result in a CPR Dividend Event.

 

(h)  “CPR Dividend Event” means any dividend or other distribution (other than a dividend or distribution in connection with a CPR Sale Transaction to the extent such dividend or distribution is included in CPR Sale Distributable Proceeds), the CPR Dividend Declaration Date (or, if earlier, the CPR Dividend Payment Date) for which is on or prior to the CPR Deadline, distributed, directly or indirectly, to NMI or any of its Affiliates (other than barnesandnoble.com llc or any of its subsidiaries) from or in respect of the Digital Business.

 

(i)  “CPR Dividend Payment Date” means the date and time on which there is a payment of any dividend or other distribution resulting in a CPR Dividend Event.

 

(j)  “CPR Dividend Proceeds” means an amount equal to the aggregate proceeds received, directly or indirectly, by NMI or any of its Affiliates in a CPR Dividend Event.  For the avoidance of doubt, if any proceeds received by NMI or any of its Affiliates in a CPR Dividend Event are in the form of non-cash consideration, the aggregate proceeds received by NMI and its Affiliates with respect to such non-cash consideration shall be the fair market value of such non-cash consideration (which fair market value shall be equal to (x) in the case of consideration in the form of securities that are listed on either the New York Stock Exchange or the Nasdaq Stock Market, as applicable, the weighted average closing price for the thirty (30) trading days immediately preceding the CPR Dividend Declaration Date and (y) in the case of all other non-cash consideration, the fair market value of such non-cash consideration).

 

(k)  “CPR Notice” has the meaning set forth in Section 5(c).

 

(l)  “CPR Payment Amount” means an amount equal to 5.0% multiplied by the CPR Sale Distributable Proceeds or the CPR Dividend Proceeds, as applicable.

 

(m)  “CPR Payment Date” has the meaning set forth in Section 5(c).

 

(n)  “CPR Sale Distributable Proceeds” means an amount equal to the aggregate proceeds received (taking into account Section 5(g)), directly or indirectly by NMI or any of its Affiliates in a CPR Sale Transaction minus the sum of (i) any federal, state, local or foreign income, transfer or similar taxes payable by NMI or any of its subsidiaries as a result of such CPR Sale Transaction, provided, that (x) any such taxes shall be reduced to the extent of any tax benefit which NMI or any of its Affiliates is entitled to by reason of any payment made hereunder, and (y) taxes payable by NMI or any of its subsidiaries shall not include any amounts required to be withheld on account 

 

 

  

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of payments made to other Persons, as estimated (after consultation from the Company’s outside tax advisors) in good faith by the Board of Directors of the Company, and (ii) net third party indebtedness (i.e., third party indebtedness for borrowed money, guarantees of such indebtedness and drawn letters of credit less cash and cash equivalents (other than cash and cash equivalents received in connection with the CPR Sale Transaction)) relating exclusively to the Digital Business that is retained by NMI and its subsidiaries following such CPR Sale Transaction. For the avoidance of doubt, if any proceeds received by NMI or any of its Affiliates in a CPR Sale Transaction are in the form of non-cash consideration, the aggregate proceeds received by NMI and its Affiliates with respect to such non-cash consideration shall be the fair market value of such non-cash consideration (which fair market value shall be equal to (x) in the case of consideration in the form of securities that are listed on either the New York Stock Exchange or the Nasdaq Stock Market, as applicable, the weighted average closing price for the thirty (30) trading days immediately preceding the CPR Sale Transaction Signing Date and (y) in the case of all other non-cash consideration, the fair market value of such non-cash consideration).

 

(o)  “CPR Sale Transaction” means in one or more transactions (whether related or not), other than an Excluded Transaction, the CPR Sale Transaction Signing Date (or, if earlier, the CPR Sale Transaction Closing Date) for which is on or prior to the CPR Deadline, pursuant to which (i) barnesandnoble.com llc or any Affiliate thereof (which Affiliate holds, directly or indirectly, all or substantially all of the Digital Business) completes, directly or indirectly, a consolidation, recapitalization, conversion, reorganization, merger or similar transaction with or into another Person (other than the Company or any of its wholly-owned subsidiaries) or any spin-off, split-off, public offering or similar transaction involving barnesandnoble.com llc or any such Affiliate, (ii) the Company and its wholly-owned subsidiaries no longer own more than 50% of the outstanding equity interests of barnesandnoble.com llc or any Affiliate thereof (which Affiliate holds, directly or indirectly, all or substantially all of the Digital Business) or (iii) barnesandnoble.com llc or any Affiliate thereof (which Affiliate holds, directly or indirectly, all or substantially all of the Digital Business) sells, assigns, transfers, conveys or otherwise disposes of all or a substantial portion of the properties, rights or assets of the Digital Business.

 

(p)  “CPR Sale Transaction Closing Date” means the date and time on which the closing of a CPR Sale Transaction occurs.

 

(q)  “CPR Sale Transaction Signing Date” means the date and time on which the signing of definitive documentation (which, if the transactions contemplated by such definitive documentation were consummated, would result in a CPR Sale Transaction) occurs.

 

(r)  “Digital Business” means the assets, rights and properties, including all goodwill relating thereto, whether tangible or intangible, real, personal or mixed, and liabilities of barnesandnoble.com llc and its Affiliates primarily related to, or used primarily in connection with, the digital device, digital content and nook.com businesses (excluding, for the avoidance of doubt, assets and liabilities primarily related to the retail 

 

 

 

  

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business (including the Barnes & Noble trademark) and the retail eCommerce business conducted through barnesandnoble.com) conducted by barnesandnoble.com llc and its Affiliates as of the date hereof, including:

 

(i)  Digital device manufacturing, development, sale and distribution work and rights and each Nook line of devices;

 

(ii)  Application software development, sale and distribution work and rights;

 

(iii)  Intellectual property to the extent associated with such digital device, digital content, eCommerce and nook.com businesses (including patents primarily related to such digital device, digital content, eCommerce and nook.com businesses, the Nook trademark and copyrights and licenses for digital content, but only including certain URLs, such as nook.com);

 

(iv)  Customer data, including all data associated with a customer’s consumption of digital content (including bookmarks, last page read, highlighting and annotations), originating in such digital device, digital content, eCommerce and nook.com businesses and rights to maintain digital lockers for digital customers (subject to applicable restrictions under privacy policies and applicable law);

 

(v)  Rights to sell digital content, including electronic books, magazines, newspapers, periodicals, comic books, children’s books and other reading and reading-related content, together with associated data thereto including any annotations by such end user, and contracts related to such digital device, digital content, eCommerce and nook.com businesses;

 

(vi)  Claims primarily related to such digital device, digital content, eCommerce and nook.com businesses, including all claims against third parties, whether choate or inchoate, known or unknown, contingent or non-contingent, or otherwise, and the right to obtain all proceeds therefrom;

 

(vii)  Obligations with respect to third-party channel partner returns, price protection agreements with third-party channel partners, rebates and offsets of rebates from suppliers and liabilities with respect to gift cards, in each case primarily related to such digital device, digital content, eCommerce and nook.com businesses;

 

(viii)  Obligations under digital device warranties (including pre-separation digital device warranties);

 

(ix)  Obligations under the Settlement and Patent License Agreement, dated as of April 27, 2012, among the Company, barnesandnoble.com llc, Microsoft and Microsoft Licensing GP;

 

 

 

  

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(x)  Substantially all the employees of barnesandnoble.com llc or its subsidiaries who are engaged primarily in such digital device, digital content, eCommerce and nook.com businesses (and the liabilities associated therewith);

 

(xi)  Such other assets, rights, properties, obligations and liabilities described or referenced in the sections of the Company’s Annual Report on Form 10-K for the year ended May 3, 2014, and subsequently filed Quarterly Reports on Form 10-Q as are primarily related to the “NOOK” segment;

 

(xii)  Rights and obligations under the Retail Agreement to the extent relating to the other items included in this definition of “Digital Business”; and

 

(xiii)  All credits and deposits (including customer deposits, security deposits for rent, electricity, telephone or otherwise), and prepaid charges and expenses, and all permits or franchises, in each case, primarily related to such digital device, digital content, eCommerce and nook.com businesses.

 

(s)  “Excluded Transaction” means (i) any transaction involving a merger, consolidation, issuance or acquisition of equity interests or sale of all or substantially all the assets of, in each case, the Company or any of its subsidiaries (other than barnesandnoble.com llc and its subsidiaries), unless barnesandnoble.com llc and its subsidiaries (or the Digital Business) constitute all or substantially all the assets thereof and (ii) any transaction involving a sale, merger, consolidation, issuance or acquisition of equity interests or sale of all or substantially all the assets of, in each case, barnesandnoble.com llc and its subsidiaries (or the Digital Business) if (A) barnesandnoble.com llc and its subsidiaries (or the Digital Business) is still owned by NOOK Media and (B) the Investor still owns membership interests in NOOK Media.

 

(t)   “Final CPR Payment Amount” has the meaning set forth in Section 6(a).

 

(u)  “Independent Accounting Firm” means a nationally recognized, independent accounting firm as mutually agreed upon by the Parties, or if such firm cannot or refuses to accept the engagement contemplated by this Agreement, another nationally recognized, independent accounting firm as mutually agreed upon by the Parties.

 

(v)   “Investor” has the meaning set forth in the Preamble.

 

(w)  “NMI” has the meaning set forth in the Recitals.

 

(x)  “NOOK Media” has the meaning set forth in the Recitals.

 

(y)  “Notice of Objection”  has the meaning set forth in Section 6.

 

 

 

  

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

 

(aa)  “Retail Agreement” has the meaning set forth in Section 6.

 

(bb)  “subsidiary” of any Person means another Person, an amount of the voting securities, other voting rights or voting partnership interests of which is sufficient to elect at least a majority of its board of directors or other governing body (or, if there are no such voting interests, more than 50% of the equity interests of which) is owned directly or indirectly by such first Person.  For the avoidance of doubt, NMI and Nook Media shall be deemed to be a subsidiary of the Company.

 

SECTION 2.  No Certificates.  The Contingent Payment Right shall not be evidenced by a certificate or any other instrument.

 

SECTION 3.  Rights of the Investor.  Nothing contained in this Agreement shall be construed as conferring upon the Investor, by virtue of the Contingent Payment Right, the right to vote or to consent or to receive notice as a stockholder or member of the Company, NMI or any of their respective subsidiaries, as applicable, or any rights or obligations of any kind or nature whatsoever as a stockholder or member of the Company, NMI or any of their respective subsidiaries, as applicable, either at law or in equity.  The rights of the Investor and the obligations of the Company, NMI, their Affiliates and their respective officers, directors and controlling Persons are contract rights limited to those expressly set forth in this Agreement.

 

SECTION 4.  Non-transferability.  The Contingent Payment Right and any interest therein shall not be sold, assigned, transferred, pledged, encumbered or in any other manner transferred or disposed of, in whole or in part, without the prior written consent of NMI; provided, that the Investor may sell, assign, transfer or pledge the Contingent Payment Right and any interest therein to any of its Affiliates.

 

SECTION 5.  CPR Payment Amount and Procedures.

 

(a)  If a CPR Sale Transaction occurs, then upon the CPR Sale Transaction Closing Date, the Investor (or its designee) shall be entitled to receive the CPR Payment Amount, as may be adjusted pursuant to Section 6, with respect to such CPR Sale Transaction.

 

(b)  If a CPR Dividend Event occurs, then upon the CPR Dividend Payment Date, the Investor (or its designee) shall be entitled to receive the CPR Payment Amount, as may be adjusted pursuant to Section 6, with respect to such CPR Dividend Event.

 

(c)  As promptly as practicable (and in no event later than five (5) Business Days) following the CPR Sale Transaction Closing Date or the CPR Dividend Payment Date, if any, NMI shall deliver to the Investor a written notice (the “CPR Notice”) notifying the Investor that a CPR Sale Transaction Closing Date or a CPR 

 

 

 

  

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Dividend Payment Date, as applicable, has occurred.  The CPR Notice shall set forth in reasonable detail the calculation of the CPR Payment Amount (and its components) and include all necessary supporting documentation for such calculation.  The Investor and its Affiliates and their respective representatives shall be entitled to reasonable access to all books, records, financial information and personnel and representatives (including accountants) of NMI and its Affiliates related to the calculation of the CPR Payment Amount. The CPR Notice shall also establish a payment date (the “CPR Payment Date”) of the CPR Payment Amount that is no later than fifteen (15) Business Days following the CPR Sale Transaction Closing Date or CPR Dividend Payment Date, as applicable. In addition, to the extent the CPR Payment Amount includes any non-cash consideration, the CPR Notice shall set forth in reasonable detail the composition of the CPR Payment Amount.

 

(d)  If NMI or any of its Affiliates receives non-cash consideration in a CPR Sale Transaction or a CPR Dividend Event, NMI shall have the option, in its sole discretion, to pay or deliver the CPR Payment Amount in any combination of cash or non-cash consideration; provided, that such non-cash consideration is valued at its fair market value as described in the definition of “CPR Sale Distributable Proceeds” or “CPR Dividend Proceeds”, as applicable, and is of the type of non-cash consideration received by NMI or its Affiliates in the applicable CPR Sale Transaction or CPR Dividend Event; provided, further, that such proportion of non-cash consideration to cash shall not exceed the proportion of non-cash consideration to cash received by NMI or its Affiliates in the applicable CPR Sale Transaction or CPR Dividend Event.

 

(e)  On the CPR Payment Date set forth in any CPR Notice, NMI shall (i) deliver the non-cash consideration portion of the CPR Payment Amount, if any, to the Investor at the address specified by the Investor and (ii) pay the cash portion of the CPR Payment Amount to the Investor by wire transfer of immediately available funds to the account specified by the Investor, in each case, in written instructions delivered by the Investor to NMI not less than two (2) Business Days prior to the CPR Payment Date.  Upon such payment and/or delivery, no further payment or delivery by NMI pursuant to this Agreement shall be required, except as set forth in Section 6.

 

(f)  NMI shall pay and/or deliver, as applicable, the CPR Payment Amount to the Investor prior to distributing, by dividend or otherwise, any CPR Sale Distributable Proceeds or CPR Dividend Proceeds, as applicable, to any other Person.

 

(g)  In the event any of the consideration to be received by NMI or its Affiliates in a CPR Sale Transaction or a CPR Dividend Event, as applicable, is not paid at the CPR Sale Transaction Closing Date or CPR Dividend Payment Date, as applicable, but payment of such consideration is conditioned or contingent upon the occurrence of other events or circumstances thereafter or is otherwise scheduled to be paid on a delayed basis, then NMI shall, if and when such additional conditional or contingent consideration is actually received by NMI or its Affiliates, recalculate the CPR Payment Amount as described herein, taking into account both the closing consideration and such conditional or contingent consideration, and shall pay to Investor, within fifteen (15) Business Days of receipt of such conditional or contingent proceeds from such CPR Sale 

 

 

  

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Transaction or CPR Dividend Event, as applicable, the additional payment amount that the Investor would have been entitled to in the event such conditional or contingent payments had been received by NMI or its Affiliates at the CPR Sale Transaction Closing Date or CPR Dividend Payment Date, as applicable.

 

SECTION 6.  Adjustment Procedures.

 

(a)  The Investor will have twenty (20) Business Days following delivery of the CPR Notice during which to notify NMI in writing of any objections with respect to the calculation of the CPR Payment Amount, including the value of any non-cash consideration, net third party indebtedness (“Notice of Objection”). If the Investor fails to deliver a Notice of Objection in accordance with this Section 6(a), the CPR Payment Amount shall be conclusive and binding on the Parties.  If the Investor submits a Notice of Objection, then (i) for fifteen (15) Business Days after the date upon which NMI receives the Notice of Objection, the Parties will each use their commercially reasonable efforts to agree on the calculation of the disputed amounts and (ii) failing such agreement within such fifteen (15) Business Day period, then the Investor and NMI, acting jointly, shall refer the matter for resolution to the Independent Accounting Firm. Promptly (but in any event within five (5) Business Days) after engagement of the Independent Accounting Firm, the Investor, on the one hand, and NMI, on the other hand, shall each deliver to the Independent Accounting Firm, a notice setting forth in reasonable detail their calculation, to the extent in dispute under the Notice of Objection, of the CPR Payment Amount as of the CPR Sale Transaction Closing Date or the CPR Dividend Payment Date, as applicable. Within fifteen (15) Business Days after receipt thereof, the Independent Accounting Firm shall deliver its determination of the disputed amounts and of the CPR Payment Amount as of the CPR Sale Transaction Closing Date or the CPR Dividend Payment Date, as applicable, which determination shall be final and binding on each of the Parties.  For the avoidance of doubt, the only matter the Independent Accounting Firm shall have the authority to determine shall be the CPR Payment Amount, including the value of any non-cash consideration, net third party indebtedness.  The fees and expenses of the Independent Accounting Firm shall be paid in equal proportions (i.e., 50% each) by the Investor, on the one hand, and NMI, on the other hand. The CPR Payment Amount that is final and binding on the Parties, as determined either through agreement of the Parties or through the action of the Independent Accounting Firm pursuant to this Section 6(a), is referred to as the “Final CPR Payment Amount”.  The Independent Accounting Firm shall act as an expert under the New York CPLR.

 

(b)  If the Final CPR Payment Amount that is greater than the CPR Payment Amount, NMI shall pay to the Investor, within two (2) Business Days after the CPR Payment Amount becomes final and binding pursuant to Section 6(a), an amount in cash equal to such difference by wire transfer in immediately available funds to an account designated by the Investor. If the CPR Payment Amount is greater than the Final CPR Payment Amount, the Investor shall pay to NMI, within two (2) Business Days after the CPR Payment Amount becomes final and binding pursuant to Section 6(a), an amount in cash equal to such difference by wire transfer in immediately available funds to an account designated by NMI. Any payment required pursuant to this Section 6(b) shall be 

 

 

 

  

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made in cash regardless of whether the CPR Payment Amount includes or is comprised of non-cash consideration.

 

SECTION 7.  The Digital Business.  (a)  Prior to the earlier to occur of the expiration of the Contingent Payment Right and a CPR Sale Transaction Closing Date, (i) the Company shall not be permitted to modify the existing Retail Agreement between the Company and NOOK Media (the “Retail Agreement”) other than any modifications of the Retail Agreement (A) to allow the Company to purchase devices directly from device manufacturers, (B) to make non-economic changes to the Retail Agreement, which changes will not impact the commissions payable or cost allocations between the Digital Business and the retail business and would not otherwise reasonably be expected to have a detrimental impact in any material respect on the value of the Digital Business, (C) to allow for an assignment and assumption of the rights and obligations of NOOK Media under the Retail Agreement relating to the Digital Business by any entity (including any subsidiary of the Company) to which all or substantially all of the Digital Business is assigned and (D) to provide for the Retail Agreement to expire immediately prior to the CPR Sale Transaction Closing Date and (ii) the Company and its subsidiaries shall be permitted to replace the Retail Agreement upon its expiration or termination in accordance with its terms with a successor retail agreement that is no less favorable to the entity holding the Digital Business than the Retail Agreement in effect immediately prior to such termination or expiration.

 

(b)   Subject to the provisions of Section 9, prior to the earlier to occur of the expiration of the Contingent Payment Right and a CPR Sale Transaction Closing Date, (i) the Digital Business shall be conducted through barnesandnoble.com llc and its subsidiaries and (ii) neither NMI nor its Affiliates shall (A) transfer the Digital Business out of barnesandnoble.com llc and its subsidiaries to any Person (other than barnesandnoble.com llc or any of its subsidiaries) or (B) cause barnesandnoble.com llc or any of its subsidiaries to create or assume any obligations or liabilities other than obligations or liabilities to the extent arising out of or relating to the Digital Business (which shall include, for the avoidance of doubt, credit support under the Company’s credit facility) or (C) enter into any transaction between the Digital Business, on the one hand, and the Company and any of its subsidiaries (other than barnesandnoble.com llc and its subsidiaries), on the other hand, that meets all of the following conditions (1) is on terms that are less favorable than would be available to unrelated third parties bargaining at arm’s length, (2) is outside the ordinary course of the Digital Business and the Company’s retail business (which ordinary course transactions include, without limitation, purchases and sales of digital devices, purchase and sales of digital content, existing cost allocations under the Transition Services Agreement between the Company and NOOK Media, transactions under the existing Retail Agreement (taking into account the modifications permitted by Section 7(a)) and transactions under the existing Separation Agreement between the Company and NOOK Media) and (3) would reasonably be expected to have a detrimental impact in any material respect on the value of the Digital Business.

 

(c)  Nothing in this Agreement shall require the Company, NMI, NOOK Media or any of their respective Affiliates to engage in, or to attempt to engage in, a CPR 

 

 

 

  

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Sale Transaction or a CPR Dividend Event or to fund any obligations of NOOK Media or the Digital Business.

 

SECTION 8.  Guarantee of Obligations.  The Company hereby irrevocably and unconditionally guarantees NMI’s obligations contained in this Agreement, including Sections 5 and 6, on the terms and subject to the conditions set forth in this Agreement. This guarantee (i) is a present and continuing guarantee of payment and not of collectability, and (ii) is in no way conditioned or contingent upon any attempts to collect or upon any other condition or contingency.  Notwithstanding anything in this Agreement to the contrary, in the event that the Company irrevocably assumes all of the obligations of NMI under this Agreement pursuant to Section 9, the Company’s guarantee of NMI’s obligations pursuant to this Section 8 shall terminate.

 

SECTION 9.  Assumption of Obligations.  Notwithstanding anything in this Agreement to the contrary, NMI shall not be prevented from transferring barnesandnoble.com llc to the Company or any of its subsidiaries; provided, however, in the event barnesandnoble.com llc is transferred to the Company or any of its subsidiaries (other than to NMI or any of its subsidiaries), the Company shall assume all rights, interests and obligations of NMI under this Agreement.

 

SECTION 10.  Termination; Effect of Termination.  (a)  In the event that neither a CPR Sale Transaction Signing Date nor CPR Dividend Declaration Date shall have occurred on or prior to the CPR Deadline, then this Agreement shall terminate at 5:00 p.m., New York City time, on the date of the CPR Deadline, and the Contingent Payment Right will automatically terminate in its entirety and all rights thereunder and all rights in respect thereof under this Agreement shall cease and be of no further force or effect.

 

(b)  In the event that a CPR Sale Transaction Signing Date or CPR Dividend Declaration Date, as applicable, shall have occurred on or prior to the CPR Deadline, then on the earlier of (i) the date on which NMI pays in full the CPR Payment Amount (and if there is non-cash consideration, delivery of such non-cash consideration) to the Investor, including any adjustments thereto pursuant to Section 6, and (ii) the date on which (x) the definitive documentation relating to the CPR Sale Transaction and/or the CPR Sale Transaction contemplated in such documents, are irrevocably terminated or (y) the declaration of any dividend or other distribution, the payment of which would have resulted in a CPR Dividend Event, is irrevocably rescinded, this Agreement will immediately and automatically terminate in its entirety, and the Contingent Payment Right will automatically terminate in its entirety and all rights thereunder and all rights in respect thereof under this Agreement shall cease and be of no further force or effect.

 

SECTION 11.  Intent.  The Parties agree that the provisions of this Agreement shall be interpreted in order to give effect to their intent and NMI covenants, on behalf of itself and its Affiliates, not to structure any transaction with the intent or purpose of avoiding the provisions of this Agreement.

 

 

 

  

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SECTION 12.  Notices.  Any notice required to be given hereunder shall be sufficient if in writing, and sent by facsimile transmission (provided, that any notice received by facsimile transmission or otherwise at the addressee’s location on any Business Day after 5:00 p.m. (addressee’s local time) shall be deemed to have been received at 9:00 a.m. (addressee’s local time) on the next Business Day), by reliable overnight delivery service (with proof of service), or hand delivery, addressed as follows:

 

	 (i)	 	If to NMI or the Company:
	 	 	 
	 	 	Barnes & Noble, Inc.
	 	 	122 Fifth Avenue
	 	 	New York, NY 10011
	 	 	 
	 	 	Attention:	Vice President, General Counsel & Secretary
	 	 	Facsimile:    	212-463-5683 
	 	 	 
	 	 	with a copy to (which copy alone shall not constitute notice):
	 	 	 
	 	 	Cravath, Swaine & Moore LLP
	 	 	 
	 	 	Worldwide Plaza
	 	 	825 Eighth Avenue
	 	 	New York, NY 10019
	 	 	 
	 	 	Attention:   	Scott A. Barshay, Esq.
	 	 	 	Andrew R. Thompson, Esq. 
	 	 	Facsimile: 	(212) 474-3700 
	 	 	 
	(ii)	 	If to the Investor:
	 	 	 
	 	 	Pearson Education, Inc.
	 	 	c/o Pearson Inc.
	 	 	330 Hudson Street
	 	 	New York, NY 10013
	 	 	 
	 	 	Attention:	Chief Corporate Finance and Strategy Officer
	 	 	 
	 	 	Facsimile:	(917) 260-8859
	 	 	 
	 	 	with a copy to (which copy alone shall not constitute notice):
	 	 	 
	 	 	Morgan Lewis & Bockius LLP
	 	 	101 Park Avenue
	 	 	New York, NY 10178
	 	 	Attention:	Robert W. Dickey, Esq
	 	 	 
	 	 	Facsimile:	(212) 309-6001

 

  

 

  

11

  

 

or to such other address as any person shall specify by written notice so given, and such notice shall be deemed to have been delivered as of the date so telecommunicated, personally delivered or scheduled to be received if sent by overnight delivery service.  Any Party to this Agreement may notify any other Party of any changes to the address or any of the other details specified in this paragraph; provided, however, that such notification shall only be effective on the date specified in such notice or five Business Days after the notice is given, whichever is later.  Rejection or other refusal to accept or the inability to deliver because of changed address of which no notice was given shall be deemed to be receipt of the notice as of the date of such rejection, refusal or inability to deliver.

 

SECTION 13.  Amendments, Waivers, etc.  This Agreement may be amended or waived if, and only if, such amendment or waiver is in writing and signed by the Party against whom such amendment or waiver shall be enforced.  The failure of any Party to exercise any right, power or remedy provided under this Agreement or otherwise available in respect hereof at law or in equity, or to insist upon compliance by any other Party with its obligations hereunder, shall not constitute a waiver by such Party of its right to exercise any such other right, power or remedy or to demand such compliance.

 

SECTION 14.  Severability.  Any term or provision of this Agreement which is invalid or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Agreement in any other jurisdiction.  If any provision of this Agreement is so broad as to be unenforceable, such provision shall be interpreted to be only so broad as is enforceable.

 

SECTION 15.  No Third-Party Beneficiaries.  Nothing expressed or referred to in this Agreement will be construed to give any person, other than the Parties, any legal or equitable right, remedy or claim under or with respect to this Agreement or any provision of this Agreement.

 

SECTION 16.  Assignment.  Except as otherwise provided herein, neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any of the Parties (whether by operation of law or otherwise) without the prior written consent of the other Parties; provided, however, NMI’s rights, interests and obligations under this Agreement shall be permitted to be assigned without the consent of any Party solely as a result of NMI being converted into another form of entity such as a limited liability company or merging with a direct or indirect subsidiary of the Company; provided further, that the Investor shall be permitted to assign its rights, interests or obligations hereunder to any Affiliate without the consent of any Party.

 

SECTION 17.  Successors.  All the covenants and provisions of this Agreement by or for the benefit of NMI, the Company and the Investor shall bind and inure to the benefit of their respective successors, assigns, heirs and personal representatives.

 

 

 

  

12

  

 

 

SECTION 18.  Counterparts.  This Agreement may be executed in two or more identical counterparts (including by facsimile), each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument, and shall become effective when one or more counterparts have been signed by each of the Parties and delivered (by telecopy or otherwise) to the other Parties.

 

SECTION 19.  No Fiduciary Obligations.  Each Party acknowledges and agrees that the other Parties, their Affiliates and their respective officers, directors and controlling Persons do not owe any fiduciary duties to the first Party or any of its respective Affiliates, officers, directors or controlling Persons.  The only obligations of the Parties, their Affiliates and their respective officers, directors and controlling Persons arising out of this Agreement are the contractual obligations expressly set forth in this Agreement.

 

SECTION 20.  Headings.  The headings and table of contents contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

 

SECTION 21.  Specific Enforcement; Governing Law; Submission to Jurisdiction; Waiver of Jury Trial. (a) This Agreement shall be governed by and construed in accordance with the Laws of the State of New York.

 

(b)  THE PARTIES ACKNOWLEDGE AND AGREE THAT IRREPARABLE DAMAGE WOULD OCCUR IN THE EVENT THAT ANY OF THE PROVISIONS OF THIS AGREEMENT WERE NOT PERFORMED IN ACCORDANCE WITH THEIR SPECIFIC TERMS OR WERE OTHERWISE BREACHED.  IT IS ACCORDINGLY AGREED THAT THE PARTIES SHALL BE ENTITLED TO AN INJUNCTION OR INJUNCTIONS TO PREVENT BREACHES OR THREATENED BREACHES OF THIS AGREEMENT AND TO ENFORCE SPECIFICALLY THE TERMS AND PROVISIONS OF THIS AGREEMENT IN ANY COURT OF COMPETENT JURISDICTION, IN EACH CASE WITHOUT PROOF OF DAMAGES OR OTHERWISE (AND EACH PARTY HEREBY WAIVES ANY REQUIREMENT FOR THE SECURING OR POSTING OF ANY BOND IN CONNECTION WITH SUCH REMEDY), THIS BEING IN ADDITION TO ANY OTHER REMEDY TO WHICH THEY ARE ENTITLED AT LAW OR IN EQUITY.  THE PARTIES AGREE NOT TO ASSERT THAT A REMEDY OF SPECIFIC ENFORCEMENT IS UNENFORCEABLE, INVALID, CONTRARY TO LAW OR INEQUITABLE FOR ANY REASON, NOR TO ASSERT THAT A REMEDY OF MONETARY DAMAGES WOULD PROVIDE AN ADEQUATE REMEDY.  IN ADDITION, EACH PARTY IRREVOCABLY AGREES THAT ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS ARISING HEREUNDER, OR FOR RECOGNITION AND ENFORCEMENT OF ANY JUDGMENT IN RESPECT OF THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS ARISING HEREUNDER, BROUGHT BY ANY OTHER PARTY OR ITS SUCCESSORS OR ASSIGNS SHALL BE BROUGHT AND DETERMINED EXCLUSIVELY IN ANY STATE OR FEDERAL COURT IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN, SO LONG AS ONE OF 

 

 

 

 

  

13

  

 

 

SUCH COURTS SHALL HAVE SUBJECT MATTER JURISDICTION OVER SUCH LEGAL ACTION OR PROCEEDING, AND THAT ANY CAUSE OF ACTION ARISING OUT OF THIS AGREEMENT SHALL BE DEEMED TO HAVE ARISEN FROM A TRANSACTION OF BUSINESS IN THE STATE OF NEW YORK.  EACH PARTY HEREBY IRREVOCABLY SUBMITS WITH REGARD TO ANY SUCH ACTION OR PROCEEDING FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, TO THE PERSONAL JURISDICTION OF THE AFORESAID COURTS AND AGREES THAT IT WILL NOT BRING ANY ACTION RELATING TO THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT IN ANY COURT OTHER THAN THE AFORESAID COURTS.  EACH PARTY HEREBY IRREVOCABLY WAIVES, AND AGREES NOT TO ASSERT, BY WAY OF MOTION, AS A DEFENSE, COUNTERCLAIM OR OTHERWISE, IN ANY ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT, (1) ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF THE ABOVE-NAMED COURTS FOR ANY REASON, (2) ANY CLAIM THAT IT OR ITS PROPERTY IS EXEMPT OR IMMUNE FROM JURISDICTION OF ANY SUCH COURT OR FROM ANY LEGAL PROCESS COMMENCED IN SUCH COURTS (WHETHER THROUGH SERVICE OF NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OF JUDGMENT, EXECUTION OF JUDGMENT OR OTHERWISE) AND (3) TO THE FULLEST EXTENT PERMITTED BY THE APPLICABLE LAW, ANY CLAIM THAT (A) THE SUIT, ACTION OR PROCEEDING IN SUCH COURT IS BROUGHT IN AN INCONVENIENT FORUM, (B) THE VENUE OF SUCH SUIT, ACTION OR PROCEEDING IS IMPROPER OR (C) THIS AGREEMENT, OR THE SUBJECT MATTER HEREOF, MAY NOT BE ENFORCED IN OR BY SUCH COURTS.  EACH PARTY HEREBY IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS IN ANY ACTION, SUIT OR OTHER PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, ON BEHALF OF ITSELF OR ITS PROPERTY, BY U.S. REGISTERED MAIL TO SUCH PARTY’S RESPECTIVE ADDRESS SET FORTH BELOW, AND NOTHING IN THIS SECTION 22(B) SHALL AFFECT THE RIGHT OF ANY PARTY TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.

 

(c)  EACH PARTY HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION, CLAIM OR OTHER PROCEEDING ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT.  EACH PARTY (1) CERTIFIES THAT NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF ANY ACTION, SUIT OR PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND (2) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVER AND CERTIFICATIONS IN THIS SECTION 22(C).

 

[Remainder of page intentionally left blank]

 

 

 

 

14

  

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed, as of the day and year first above written.

 

 

	 	NOOK MEDIA INC.	 
	 	 	 	 
	
 

	
by: 

	
 

/s/ Michael P. Huseby

	 
	 	 	Name:    	Michael P. Huseby	 
	 	 	Title:	Chief Executive Officer	 
	 	 	 	 

 

 

 

	 	BARNES & NOBLE, INC.	 
	 	 	 	 
	
 

	
by: 

	
 

/s/ Michael P. Huseby

	 
	 	 	Name:    	Michael P. Huseby	 
	 	 	Title:	Chief Executive Officer	 
	 	 	 	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page – Digital Business Contingent Payment Agreement]

 

 

  

  

  

 

 

 

	 	
PEARSON EDUCATION, INC.

	 
	 	 	 	 
	
 

	
by: 

	
 

/s/ Philip J. Hoffman

	 
	 	 	Name:    	Philip J. Hoffman	 
	 	 	Title:	Executive Vice President 	 
	 	 	 	 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page – Digital Business Contingent Payment Agreement]Exhibit 10.1

 

	 	EXECUTION VERSION
	 	11/20/2014

 

 

 

PURCHASE
AGREEMENT

 

by and between:

 

CERTUSHOLDINGS,
INC.

 

a
Delaware Corporation

 

and

 

INVESTVIEW,
INC.

a
Nevada Corporation

 

 

 

Dated as of November 21, 2014

 

 

 

 

 

    	 

    	 

    

  

TABLE OF CONTENTS

 

	1.	definitions.	1
	 	 	 
	2.	sale and transfer of shares; closing	1
	 	2.1	purchase and sale	1
	 	2.2	purchase price	1
	 	2.3	Transactions to Be Effected at the Closing	1
	 	2.4	Closing	2
	 	2.5	Withholding Tax	2
	 	 	 	 
	3.	REPRESENTATIONS AND WARRANTIES OF SELLER	3
	 	3.1	Organization; Existence, and Good Standing	3
	 	3.2	Enforceability; Authority; No Conflict	3
	 	3.3	Financial Statements	4
	 	3.4	Absence of Certain Changes, Events, and Conditions	4
	 	3.5	Material Contracts	4
	 	3.6	Title to Assets; Encumbrances	5
	 	3.7	Customer Issues	5
	 	3.8	Taxes	6
	 	3.9	No Material Adverse Effects	6
	 	3.10	Compliance with Legal Requirements; Governmental Authorizations	7
	 	3.11	Legal Proceedings; Judgments	8
	 	3.12	Intellectual Property; Trade Secrets	8
	 	3.13	Interests of Related Persons	9
	 	 	 	 
	4.	Representations and Warranties of Buyer	9
	 	4.1	Existence and Good Standing	9
	 	4.2	Authorization	9
	 	4.3	Regulatory Consents	9
	 	 	 	 
	5.	Covenants of Seller Prior to Closing Date	9
	 	5.1	Clients List; Access and Investigation	9
	 	5.2	Operation of the Business of the Targets	10
	 	5.3	Available Cash after Closing	10
	 	5.4	Negative Covenant	10
	 	5.5	Required Approvals	10
	 	 	 	 
	6.	Covenants of Buyer Prior to Closing Date	10
	 	6.1	Approvals of Governmental Bodies	10
	 	6.2	Reasonable Best Efforts	11
	 	 	 	 
	7.	Conditions Precedent to Buyer’s Obligation to Close	11
	 	7.1	Due Diligence and Disclosure Schedule	11
	 	7.2	Accuracy of Representations	11
	 	7.3	Seller’s Performance	11

 

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	 	7.4	Regulatory Consents	11
	 	7.5	No Proceedings	11
	 	7.6	No Prohibition	11
	 	7.7	Operation in the Ordinary Course; No Adverse Change	12
	 	 	 	 
	8.	Conditions Precedent to Seller’ Obligation to Close	12
	 	8.1	Accuracy of Representations	12
	 	8.2	Buyer’s Performance	12
	 	8.3	No Injunction	12
	 	8.4	Regulatory Consents	12
	 	8.5	Employee Hiring	12
	 	8.6	License
    Agreements	13
	 	 	 	 
	9.	INDEMNIFICATION	13
	 	9.1	Survival; Right to Indemnification not Affected by Knowledge	13
	 	9.2	Indemnification and Payment of Damages by Seller	13
	 	9.3	Indemnification and Payment of Damages by Buyer	14
	 	9.4	Procedure of Indemnification—Third Party Claims	14
	 	9.5	Procedure for Indemnification—Other Claims	15
	 	9.6	arbitration	15
	 	 	 	 
	10.	Termination.	15
	 	10.1	Termination Events	15
	 	10.2	Effect of Termination	16
	 	 	 	 
	11.	POST-CLOSING COVENANTS	16
	 	11.1	Taxes	16
	 	11.2	Confidentiality	16
	 	11.3	Employee Matters	17
	 	 	 	 
	12.	General Provisions.	17
	 	12.1	Expenses	17
	 	12.2	Casualty Loss	17
	 	12.3	Public Announcements	17
	 	12.4	Notices	17
	 	12.5	Further Assurances	18
	 	12.6	Waiver	18
	 	12.7	Entire Agreement and Modification	18
	 	12.8	Assignments, Successors, and No Third-Party Rights	19
	 	12.9	Severability	19
	 	12.10	Section Headings; Construction	19
	 	12.11	Arbitration	19
	 	12.12	Litigation	20
	 	12.13	Legal Fees and Costs	20
	 	12.14	Mutual Drafting	20
	 	12.15	Execution of Agreement	20

 

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PURCHASE AGREEMENT

 

This
Purchase Agreement (this “Agreement”) is made effective as of November 21, 2014, by and between CertusHoldings,
Inc. (“Seller”), a Delaware corporation, and Investview, Inc.
(“Buyer”), a Nevada corporation.

 

Background

 

Whereas,
Seller owns the outstanding shares of common stock (the “Shares”) of CertusSecurities, Inc. (“CSI”),
a Georgia corporation and wholly owned subsidiary of Seller. CSI is a registered broker-dealer engaged in the business of providing
investment advice and other financial advisory services and products to private accounts of certain institutional and individual
investors (the “CSI Business”).

 

Whereas,
Seller owns 100% of the membership interests (the “Membership Interests”) of CertusInvestment Advisors, LLC
(“CIA”; together with CSI, the “Targets”), a limited liability company and wholly
owned subsidiary of Seller. CIA is a registered investment advisor engaged in the business of providing investment advice and other
financial advisory services and products to private accounts of certain institutional and individual investors (the “CIA
Business”; together with the CSI Business, the “Businesses”).

 

Whereas,
Buyer desires to acquire, and Seller desires to sell to Buyer, upon the terms and subject to the conditions set forth in this Agreement,
(1) all of the outstanding and issued Shares of common stock of CSI; and (2) 100% of the Membership Interests in CIA.

 

Now,
Therefore, in consideration of the foregoing and the terms and conditions set forth herein, the parties hereby agree
as follows:

 

Terms
and Conditions

 

1.          definitions.
Unless otherwise indicated, capitalized terms of general applicability are defined in Exhibit
A.

 

2.          sale
and transfer of shares; closing.

 

2.1         purchase
and sale. Subject to the terms and conditions set forth herein, at the Closing, Seller shall sell to Buyer, and Buyer
shall purchase from Seller, the Shares.

 

2.2         purchase
price. Buyer shall pay to Seller an aggregate purchase price
of $190,000 (the “Purchase Price”). The Purchase Price will be payable at the Closing. The payment of this Purchase
Price is referred to herein as the “Purchase Payment.”

 

2.3         Transactions
to Be Effected at the Closing.

 

(a)          At
the Closing, Buyer shall deliver to Seller:

 

    	 

    	 

    

  

(i)          The
Purchase Payment by wire transfer of immediately available funds to an account of Seller designated in writing by Seller to Buyer
no later than three Business Days prior to the Closing Date;

 

(ii)         A
certificate executed by Buyer representing and warranting to Seller that each of Buyer’s representations and warranties in
this Agreement was accurate in all respects as of the date of this Agreement and is accurate in all respects as of the Closing
Date as if made on the Closing Date;

 

(iii)        All
other agreements, documents, instruments, license agreements substantially in the form of Exhibit
B, or certificates (collectively, the “Ancillary Agreements”) required to be delivered by Buyer at
or prior to the Closing pursuant to Article 7 of this Agreement or otherwise necessary to effect the Contemplated Transactions.

 

(b)         At
the Closing, Seller shall deliver to Buyer:

 

(i)          Stock
certificates evidencing the Shares, free and clear of all encumbrances, duly endorsed in blank or accompanied by stock powers or
other instruments of transfer duly executed in blank in the form of Exhibit
C to this Agreement (the “Assignment of Shares”);

 

(ii)         An
executed copy of the assignment of Membership Interests free and clear of all encumbrances, duly endorsed in blank or accompanied
by such other instruments of transfer duly executed in blank in the form of Exhibit
D to this Agreement (the “Assignment of Membership Interest”);

 

(iii)        A
certificate executed by Seller representing and warranting to Buyer that each of Seller’s representations and warranties
in this Agreement was accurate in all respects as of the date of this Agreement and is accurate in all respects as of the Closing
Date as if made on the Closing Date; and

 

(iv)        All
other agreements, documents, instruments, or certificates required to be delivered by Seller at or prior to the Closing pursuant
to Article 8 of this Agreement or otherwise necessary to effect the Contemplated Transactions.

 

2.4         Closing.
Subject to the terms and conditions of this Agreement, the purchase and sale of the Shares and the Membership Interests contemplated
by this Agreement shall take place at a closing (the “Closing”) to be held at 9:00 a.m., no later than three
Business Days after the last of the conditions to the Closing set forth in Article 7 and Article 8 have been satisfied or waived
(other than conditions which, by their nature, are to be satisfied on the Closing Date), at a mutually agreeable location, or by
facsimile or electronic transmission of signed counterparts of this Agreement and the Ancillary Agreements, and wire transfer payments
(the day on which the Closing takes place being the “Closing Date”).

 

2.5         Withholding
Tax. Buyer and Seller shall be entitled to deduct and withhold from the Purchase Price all Taxes that Buyer and Seller
may be required to deduct and withhold under any provision of Tax Law. All such withheld amounts shall be treated as delivered
to Seller hereunder.

 

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3.        REPRESENTATIONS
AND WARRANTIES OF SELLER. Seller hereby represents and warrants to Buyer as follows:

 

3.1         Organization;
Existence, and Good Standing.

 

(a)          Seller
is a corporation duly organized and validly existing under the laws of the State of Delaware and is the owner of 100% of the authorized
and outstanding capital stock of CSI and 100% of the Membership Interests in CIA.

 

(b)          CSI
is a corporation duly organized and validly existing under the laws of the State of Georgia, with full corporate power and authority
to conduct the CSI Business as it is now being conducted, to own or use its properties and assets, and to perform all its obligations
under such CSI’s contracts. CSI is duly qualified to do business and is in good standing under the laws of each other state
or jurisdiction in which either the ownership or use of the properties owned or used by it, or the nature of the activities conducted
by it, requires such qualification except in each case where the failure to qualify or to be in good standing would not have a
material adverse effect on CSI.

 

(c)          CIA
is a limited liability company duly organized and validly existing under the laws of the State of Georgia, with full corporate
power and authority to conduct the CIA Business as it is now being conducted, to own or use its properties and assets, and to perform
all its obligations. CIA is duly qualified to do business and is in good standing under the laws of each other state or jurisdiction
in which either the ownership or use of the properties owned or used by it, or the nature of the activities conducted by it, requires
such qualification except in each case where the failure to qualify or to be in good standing would not have a material adverse
effect on CIA.

 

(d)          Seller
has made available to Buyer complete and accurate copies of each of the Targets’ Organizational Documents, as currently in
effect.

 

3.2         Enforceability;
Authority; No Conflict.

 

(a)          This
Agreement and the Contemplated Transactions constitute the legal, valid, and binding obligations of Seller, enforceable against
Seller in accordance with the terms contained herein and therein. Seller has the absolute and unrestricted right, power, and authority
to execute and deliver this Agreement and to perform its obligations under this Agreement, and such action has been duly authorized
by all necessary action by Seller.

 

(b)          Except
as set forth on Schedule 3.2(b), neither the execution and delivery of this Agreement nor the consummation or performance
of any of the Contemplated Transactions by Seller will, directly or indirectly (with or without notice or lapse of time): (i) contravene,
conflict with, or result in a violation of (A) any provision of the Organizational Documents of Seller or either of the Targets,
or (B) any resolution adopted by Seller; (ii) contravene, conflict with, or result in a violation of any Legal Requirement
or any Order to which Seller may be subject; (iii) contravene, conflict with, or result in a violation of any of the terms or requirements
of, or give any Governmental Body the right to revoke, withdraw, suspend, cancel, terminate, or modify any Governmental Authorization
that is held by Seller or otherwise give any Governmental Body the right to challenge the Contemplated Transactions; (iv) contravene,
conflict with, or result in a violation or breach of any provision of, or give any Person the right to declare a default or exercise
any remedy under, or to accelerate the maturity or performance of, or to cancel, terminate, or modify, any contract; or (v) cause
either of the Targets to become subject to or liable for the payment of any Tax

 

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(c)          Except
as set forth in Schedule 3.2(c), Seller will not be required to give any notice to or obtain any Consent from any Person
in connection with the execution and delivery of this Agreement or the consummation of any of the Contemplated Transactions.

 

(d)          Seller
is and will be, on the Closing Date, the record and beneficial owner and holder of the Shares, free and clear of all Encumbrances.
Except as set forth on Schedule 3.2(a), there are no contracts relating to the issuance, sale, or transfer of any Shares,
Membership Interest, or other equity securities of either of the Targets.

 

3.3         Financial
Statements. Seller has delivered to Buyer: (a) unaudited consolidated balance sheets of each of CSI and CIA for the
twelve-month period ending December 31, 2013 and the nine-month period ending September 30, 2014, and the related unaudited consolidated
statements of income. To the best of Seller’s knowledge, such financial statements are in accordance with GAAP.

 

3.4         Absence
of Certain Changes, Events, and Conditions. Since the date of the financial statements made available to Buyer pursuant
to Section 3.3 and other than in the Ordinary Course of Business consistent with past practice, there has not been, with respect
to either of the Targets, any:

 

(a)          event,
occurrence, or development that has had, or could reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect; or

 

(b)          imposition
of any Encumbrance upon either of the Targets’ equity or assets, tangible or intangible.

 

3.5         Material
Contracts.

 

(a)          Schedule
3.5(a) lists each of the following contracts of either of the Targets (such contracts, together with all contracts concerning
the occupancy, management, or operation of any real property listed or otherwise disclosed in Schedule 3.13 and all contracts
relating to Intellectual Property set forth in Schedule 3.13, being “Material Contracts”):

 

(i)          each
contract of either of the Targets involving aggregate consideration in excess of $30,000 and which, in each case, cannot be cancelled
by either of the Targets without penalty or without more than 90 days’ notice;

 

(ii)         all
broker, distributor, dealer, franchise, agency, sales promotion, market research, marketing consulting, and advertising contracts
to which either of the Targets are a party;

 

    	4

    	 

    

  

(iii)        all
Employment Agreements and contracts with independent contractors or consultants (or similar arrangements) to which either of the
Targets are a party and which are not cancellable without penalty or without more than ninety days’ notice;

 

(iv)        all
contracts with payments, termination provisions, or any other provision which will be triggered by a change in control of the Shares
or Membership Interest; and

 

(v)         all
contracts between or among CSI on the one hand and Seller or any affiliate or subsidiary of Seller (other than CSI) on the other
hand; and all contracts between or among CIA on the one hand and Seller or any affiliate or subsidiary of Seller (other than CIA)
on the other hand.

 

(b)          Each
Material Contract is valid and binding on each of the Targets in accordance with its terms and is in full force and effect. To
the Knowledge of Seller, neither of the Targets nor any other party thereto is in breach of or default under (or is alleged to
be in breach of or default under) or has provided or received any notice of any intention to terminate any Material Contract. No
event or circumstance has occurred that, with notice or lapse of time or both, would constitute an event of default under any Material
Contract or result in a termination thereof or would cause or permit the acceleration or other changes of any right or obligation
or the loss of any benefit thereunder. Complete and correct copies of each Material Contract (including all modifications, amendments,
and supplements thereto and waivers thereunder) have been made available to Buyer.

 

(c)          On
the date that is the 30th day after the Closing Date, or if such date is not a business day, on the date that is the
first business day following the date that is the 30th day after the Closing Date, Buyer and Seller shall make a post-closing
adjustment payment with respect to the Material Contracts. Seller shall be responsible for payment of any amounts attributable
to seller under the Material Contracts which were accrued or which are related to Seller’s receipt of services, goods, materials
or other things of benefit prior to the Closing Date.

 

3.6         Title
to Assets; Encumbrances. Neither of the Targets own any real
property for the conduct of the Businesses. Schedule 3.6 contains a complete and accurate list of all leasehold
or other interests of each of the Targets in real property for the conduct of the Businesses. Seller has made available to
Buyer copies of the instruments (whether or not recorded) by which Seller or the either of the Targets acquired such
interests, and copies of all title insurance policies, bills of sale, opinions, abstracts, and surveys of either of the
Targets relating to such interests. Each of the Targets have good title to all personal property and equipment they own, all
of which are free and clear of all Encumbrances.

 

3.7         Customer
Issues.

 

(a)          Schedule
3.7(a) sets forth all Licenses held by each of the Targets and any agent of either of the Targets listed by jurisdiction. The
Licenses are current and in full force and effect, and no Governmental Body has Threatened to terminate any License.

 

    	5

    	 

    

  

(b)          Schedule
3.7(b) sets forth a list and reasonable description of all claims or Proceedings involving either of the Targets or any employees
or agents of either of the Targets since January 1, 2013: (i) relating to the Businesses; (ii) relating to Liabilities for
payments under any bond, or (iii) brought or Threatened by a customer or former customer of either of the Targets with respect
to a product or service provided by either of the Targets during such period.

 

3.8         Taxes.

 

(a)          Each
of the Targets have filed all Tax Returns that are or were required to be filed by or with respect to it pursuant to applicable
Legal Requirements (including, without limitation, the Targets’ most current Tax Returns). Each of the Targets have paid
all Taxes that have or may have become due pursuant to those Tax Returns or otherwise for all periods up to and including the Closing
Date, or pursuant to any assessment received by either of the Targets except in respect of such Taxes as are listed in Schedule
3.10(a) and are being contested in good faith.

 

(b)          Seller
has made available to Buyer complete and accurate copies of each of the Targets’ Tax Returns as of each of the Targets’
year-end in each of the years 2012 and 2013.

 

(c)          Except
as set forth on Schedule 3.8(c), since January 1, 2013, neither of the Targets’ Tax Returns have been,
or are presently, subject to audits by any Governmental Body.

 

(d)          There
exists no proposed tax assessment against either of the Targets. No consent to the application of Section 341(f)(2) of the
IRC has been filed with respect to any property or assets held, acquired, or to be acquired by either of the Targets. All Taxes
that each of the Targets are or were required by Legal Requirements to withhold or collect have been duly withheld or collected
and, to the extent required, have been paid to the proper Governmental Body or other Person, except for unintentional, incidental,
and immaterial errors in the calculation, withholding, or collection of such Taxes of a type and nature made or incurred in a manner
consistent with operation of each of the Targets in accordance with prudent business practices.

 

(e)          All
Tax Returns filed by or on behalf of each of the Targets are true, correct, and complete. There is no tax sharing agreement that
will require any payment by either of the Targets after the date of this Agreement.

 

3.9         No
Material Adverse Effects. Since January 1, 2013, there have not been any events that have had a Material Adverse Effect
upon the business, operations, properties, prospects, assets, or condition of either of the Targets, and no event has occurred
or circumstance exists that may result in such a Material Adverse Effect, and, except for this Agreement, the neither of the Targets
have, except as set forth on Schedule 3.9:

 

(a)          had
any material adverse changes in the its condition (financial or otherwise), operations, business, properties, assets, or Liabilities,
other than changes in the Ordinary Course of Business;

 

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(b)          suffered
any substantial losses or waived any substantial rights;

 

(c)          had
any resignations or terminations of employment of any of its key officers or key employees;

 

(d)          entered
into any transactions not in the Ordinary Course of Business;

 

(e)          been
Threatened with any Proceedings or received any notice of or become aware of any facts that would reasonably be expected to lead
to any Proceedings; or

 

(f)          agreed,
whether orally or in writing, to do any of the foregoing.

 

3.10      Compliance
with Legal Requirements; Governmental Authorizations.

 

(a)         Except
as set forth in Schedule 3.10(a):

 

(i)          Each
of the Targets are, and at all times since January 1, 2012, have been, in compliance with each material Legal Requirement that
is or was applicable to either of the Targets or to the conduct or operation of either of its Businesses or the ownership or use
of either of the Targets’ assets, including but not limited to compliance with all Licenses; and

 

(ii)         Neither
of the Targets has received, at any time since January 1, 2012, any notices or other written communications from any Governmental
Body, including the Financial Industry Regulatory Authority (“FINRA”), or any other Person regarding any violation
of, or failure to comply with, any Legal Requirement.

 

(b)         Schedule
3.10(b) contains a complete and accurate list of each material Governmental Authorization, including but not limited to the
Licenses, that are held by each of the Targets or that otherwise relates to the Businesses of each of the Targets. Each Governmental
Authorization listed or required to be listed in Schedule 3.10(b) of the Disclosure Schedule is valid and in full force
and effect. Except as set forth in Schedule 3.10(b):

 

(i)          Following
reasonable investigation and inquiry, to the best of the Knowledge of Seller, there is no fact, event, or circumstance indicating
that either of the Targets have not, and at all times since January 1, 2012, have not been, in compliance in all material respects
with the terms and requirements of each Governmental Authorization identified or required to be identified in Schedule 3.10(b);

 

(ii)         Following
reasonable investigation and inquiry, to the best of the Knowledge of Seller, there is no event, occurrence, or circumstance that
(with or without notice or lapse of time) (A) constitutes or results directly or indirectly in a violation of or a failure
to comply with any term or requirement of any Governmental Authorization listed or required to be listed in Schedule 3.10(b)
of the Disclosure Schedule or (B) results directly or indirectly in the revocation, withdrawal, suspension, cancellation,
or termination of, or any modification to, any Governmental Authorization listed or required to be listed in Schedule 3.10(b);

 

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(iii)        Neither
of the Targets have received, at any time since January 1, 2013, any notices or other written communications from any Governmental
Body or any other Person regarding (A) any violations of or failure to comply with any terms or requirements of any Governmental
Authorization, or (B) any revocations, withdrawals, suspensions, cancellations, terminations of, or modifications to any Governmental
Authorization; and

 

(iv)        all
applications required to have been filed for the renewal of the Governmental Authorizations listed or required to be listed in
Schedule 3.10(b) and for renewal of the Licenses have been duly filed on a timely basis with the appropriate Governmental
Bodies, and all other filings required to have been made with respect to such Governmental Authorizations have been duly made on
a timely basis with the appropriate Governmental Bodies.

 

(c)         The
Governmental Authorizations listed in Schedule 3.10(b) collectively constitute all of the Governmental Authorizations necessary
to lawfully conduct and operate the Businesses in the manner currently conducted and operated.

 

(d)         To
the best of Seller’s Knowledge, and following a reasonable investigation, there is no ongoing investigation into either CSI
Business or CIA Business by any Governmental Body.

 

3.11       Legal
Proceedings; Judgments. Except as set forth in Schedule 3.11,
(a) no Proceeding involving or related to either of the Targets, the Businesses or any officers, employees, directors, or agents
of either of the Targets, are currently pending; (b) no Judgments involving or related to either of the Targets or the Businesses
are currently outstanding; and (c) no breach of contracts, breach of warranties, torts, negligence, infringements, product liabilities,
discrimination, wrongful discharges, or other claims of any nature or related to the Businesses have been asserted or, to the Knowledge
of Seller following reasonable investigation and inquiry, Threatened against either of the Targets at any time since January 1,
2012.

 

3.12       Intellectual
Property; Trade Secrets.

 

(a)          Schedule
3.12(a) sets forth a complete list of all of the Intellectual Property each of the Targets own or have the right to use, except
for mass-produced, shrink wrap computer software products licensed by third parties at a cost to each of the Targets of less than
$2,500 (“Target Intellectual Property”). To the Knowledge of Seller, the Targets are not, and have not received
written notices or complaints that they are, infringing upon the intellectual property rights of any third party with respect to
either of the Targets’ use of Targets Intellectual Property, nor does Seller have Knowledge that any third party is infringing
upon the rights of either of the Targets in Target Intellectual Property. To the Knowledge of Seller, there are no claims pending
against either of the Targets alleging that either of the Targets’ use of Target Intellectual Property infringes on the intellectual
property rights of any third party and no such claim is Threatened.

 

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(b)          To
the Knowledge of Seller, each of the Targets has taken commercially reasonable precautions to protect the secrecy, confidentiality,
and value of the Trade Secrets. Following reasonable investigation and inquiry, to the Knowledge of Seller, each of the Targets
own or have the unrestricted right to use and to transfer to Buyer all of the Trade Secrets.

 

3.13       Interests
of Related Persons.  Except for normal advances for business
expenses incurred in the Ordinary Course of Business, no Related Person of Seller, nor any affiliate of any of the foregoing
parties, has any loan or other obligation outstanding to or from either of the Targets, or for which either of the Targets
are or may be liable under a guaranty or otherwise, or has any material interest in any firm, person, or entity with which
either of the Targets have entered into any contract or lease, or with which either of the Targets do business and which
would influence that person in doing business with either of the Targets, other than as set forth in Schedule
3.13.

 

4.         Representations
and Warranties of Buyer.  Buyer
represents and warrants to Seller as follows:

 

4.1           Existence
and Good Standing. Buyer is a limited liability company duly organized, validly existing, and in good standing under
the laws of the State of Nevada, with full power and authority to own or lease and use its properties and assets and to carry on
its business as such business is now conducted.

 

4.2           Authorization.
Buyer has the requisite corporate power and authority to execute, deliver, and perform this Agreement and the Contemplated Transactions
to which it is a party, all necessary corporate actions of Buyer’s Board of Directors authorizing the execution, delivery,
and performance hereof and thereof having been taken. This Agreement has been duly executed and delivered by Buyer and constitutes,
and the Contemplated Transactions to which it will be a party will be duly executed and delivered and, when so executed and delivered,
will constitute valid and legally binding agreements of Buyer enforceable against it in accordance with their respective terms,
subject, as to enforcement, bankruptcy, insolvency, moratorium, reorganization, fraudulent transfer, and other laws affecting creditors’
rights generally and to general equitable principles.

 

4.3           Regulatory
Consents. Except for notice filings or applications required by
Buyer with FINRA, no applications, notices, reports, or other filings are required to be made by Buyer with, and no consents, registrations,
approvals, permits, or authorizations are required to be obtained by Buyer from, any Governmental Body in connection with the execution,
delivery and performance of this Agreement or the Contemplated Transactions by Buyer, and the consummation by it of the transactions
contemplated hereby. To Buyer’s Knowledge, there is no reason why any required regulatory approvals or consents may
not be received or may be subject to the imposition of an onerous condition.

 

5.         Covenants
of Seller Prior to Closing Date.

 

5.1           Clients
List; Access and Investigation. Between the date of this Agreement and the Closing Date, Seller or Representatives of
Seller and each of the Targets will (a) furnish to Buyer on Schedule 5.1 a list of Clients of each of the Targets as of
the date hereof showing for each Client the Client’s name, Managed Assets as of June 30, 2014, (b) afford Buyer and its Representatives
full and free access to each of the Targets’ personnel, properties (including environmental testing), contracts, books and
records, and other documents and data during reasonable and customary business hours, (c) furnish Buyer and its Representatives
with copies of all such contracts, books and records, and other existing documents and data as Buyer may reasonably request, and
(d) furnish Buyer and its Representatives with such additional financial, operating, and other data and information as Buyer
may reasonably request.

 

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5.2        Operation
of the Business of the Targets. Between the date of this Agreement
and the Closing Date, Seller will ensure that each of the Targets will:

 

(a)          conduct
the Businesses only in the Ordinary Course of Business;

 

(b)          use
its reasonable best efforts to preserve intact the current business organization of each of the Targets, keep available the services
of the current officers, employees, and agents of each of the Targets, and maintain the relations and good will with suppliers,
customers, landlords, creditors, employees, agents, insurers, and others having business relationships with either of the Targets;

 

5.3           Available
Cash after Closing. Seller will have no obligation to ensure that
any cash is on deposit in any account owned or controlled by either of the Targets after the Closing Date. Each of the Targets
will be allowed to dividend all available cash to Seller concurrent with the Closing.

 

5.4           Negative
Covenant. Except as otherwise expressly required pursuant to this Agreement, between the date of this Agreement and
the Closing Date, Seller and each of the Targets will not, without the prior written approval from Buyer, take any affirmative
action, or fail to take any reasonable action within its control, as a result of which any of the changes or events listed in Section 3.6
occurs or is reasonably likely to occur.

 

5.5           Required
Approvals. As promptly as practicable after the date of this Agreement, Seller will use commercially reasonable efforts
to make, or to cause each of the Targets to make, all filings required by Legal Requirements to be made by any of them in order
to consummate the Contemplated Transactions and will use commercially reasonable efforts to obtain, or will use commercially reasonable
efforts to cause each of the Targets to obtain, all consents identified on Schedule 3.12(c); provided, however, that this
Agreement will not require either of the Targets or Seller to dispose of or make any commercially unreasonable change in any portion
of either of the Businesses or Seller’s business or assets or to incur any commercially unreasonable burden to obtain a Governmental
Authorization.

 

6.         Covenants
of Buyer Prior to Closing Date.

 

6.1           Approvals
of Governmental Bodies. As promptly as practicable after the date
of this Agreement, Buyer will, and will cause each of its Related Persons to, make all filings required by Legal Requirements to
be made by them to consummate the Contemplated Transactions. Between the date of this Agreement and the Closing Date, Buyer will,
and will cause each such Related Person to, (a) cooperate with Seller with respect to all filings that Seller is required
by Legal Requirements to make in connection with the Contemplated Transactions, and (b) cooperate with Seller in obtaining all
consents identified in Section 3.2 of the Disclosure Schedule.

 

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6.2         Reasonable
Best Efforts. Except as set forth in Section 6.1, between the date of this Agreement and the Closing Date, Buyer
will use its reasonable best efforts to cause the conditions in Sections 7 and 8 to be satisfied.

 

7.          Conditions
Precedent to Buyer’s Obligation to Close. Buyer’s obligation to purchase the Shares and the Membership
Interestsand to take the other actions required to be taken by Buyer to consummate the Contemplated Transactions are subject to
the satisfaction, at or prior to the Closing, of each of the following conditions (any of which may be waived by Buyer, in whole
or in part):

 

7.1         Due
Diligence and Disclosure Schedule. Buyer shall have completed its due diligence investigation and review of each of
the Targets and its review of the Disclosure Schedules attached to this Agreement and the results thereof shall be satisfactory
to Buyer in its sole discretion; provided, however, that it shall be conclusively presumed that this condition has been satisfied
on the earlier of (i) the Closing Date, or (ii) the thirtieth day after the date hereof.

 

7.2         Accuracy
of Representations. Seller’s representations and warranties in this Agreement must have been accurate in all material
respects as of the date of this Agreement, and must be accurate in all material respects as of the Closing Date as if made on the
Closing Date except (a) for any changes resulting from activities or transactions which may have taken place after the date
hereof and are permitted or contemplated by this Agreement or which have been entered into or have otherwise occurred in the Ordinary
Course of Business of each of the Targets and (b) except to the extent that such representations and warranties are made as
of another specified date and, as to such representations and warranties, the same shall be true as of such specified date.

 

7.3         Seller’s
Performance.

 

(a)          All
of the covenants and obligations that Seller is required to perform or to comply with pursuant to this Agreement at or prior to
the Closing must have been duly performed and complied with in all material respects.

 

(b)          Each
document required to be delivered pursuant to Section 2.3 must have been delivered, and each of the other covenants and obligations
in Article 5 must have been performed and complied with in all material respects.

 

7.4         Regulatory
Consents. Each of the Consents contemplated by Section 5.5 of this
Agreement must have been obtained and must be in full force and effect.

 

7.5         No
Proceedings. There shall not have been commenced or Threatened
against Buyer, or against any Person affiliated with Buyer, any Proceeding (a) involving any challenge to, or seeking damages
or other relief in connection with, any of the Contemplated Transactions, or (b) that may have the effect of preventing, delaying,
making illegal, or otherwise interfering with any of the Contemplated Transactions.

 

7.6         No
Prohibition. Neither the consummation nor the performance of any of the Contemplated Transactions will, directly or
indirectly (with or without notice or lapse of time), materially contravene, or conflict with, or result in a material violation
of, or cause Buyer or any Person affiliated with Buyer to suffer any Material Adverse Effect under, (a) any applicable Legal
Requirement or Order, or (b) any Legal Requirement or Order that has been published, introduced or otherwise proposed by or
before any Governmental Body.

 

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7.7         Operation
in the Ordinary Course; No Adverse Change.  From the effective date of this Agreement through the Closing Date,
each of the Targets shall have operated in the Ordinary Course of Business without undertaking any extraordinary activities
or transactions (including, without limitation, material sales of assets outside the Ordinary Course of Business). There
shall not have been any Material Adverse Effect with respect to either of the Targets, either of the Targets’ financial
condition, prospects, or results of operations, and none of the changes or events listed in Section 3.7 and Section 3.14
hereof shall have occurred.

 

7.8         License
Agreements. Within 30 days of the date of this Agreement, Seller and Buyer shall enter into a license agreement permitting
the current employees of Seller who will become employees of Buyer on the Closing Date to use the premises of Seller to continue
conducting the Business on the premises, provided that all requirements of the license agreement are satisfied.

 

8.        Conditions
Precedent to Seller’ Obligation to Close.  Seller’s obligation to sell the Shares and the Membership Interests
and to take the other actions required to be taken by Seller to consummate the Contemplated Transactions are subject to the satisfaction,
at or prior to the Closing, of each of the following conditions (any of which may be waived by Seller, in whole or in part):

 

8.1         Accuracy
of Representations. Each of Buyer’s representations and warranties in this Agreement must have been accurate in
all material respects as of the date of this Agreement and must be accurate in all material respects as of the Closing Date as
if made on the Closing Date.

 

8.2         Buyer’s
Performance. All of the covenants and obligations that Buyer is required to perform or to comply with pursuant to this
Agreement at or prior to the Closing must have been performed and complied with in all material respects.

 

8.3         No
Injunction. There must not be in effect any Legal Requirement or any injunction or other Order that (a) prohibits
the sale of the Shares by Seller to Buyer, and (b) has been adopted or issued, or has otherwise become effective, since the
date of this Agreement.

 

8.4         Regulatory
Consents. Each of the Consents contemplated by Section 6.1 of this
Agreement must have been obtained and must be in full force and effect.

 

8.5         Employee
Hiring. Within 15 days of the date of this Agreement, Buyer shall offer employment, subject to customary hiring practices,
including pre-hire screenings and pre-hire drug testing, to each of the employees of the Targets listed on Schedule 8.5 of the
Disclosure Schedules (the “Employees”). Schedule 8.5 shall include the name, position, location, and Target
Start Date for each Employee. Buyer shall require each Employee to accept or reject the offer of employment within 15 days of receipt
of the offer by Buyer. If any Employee ceases to be employed by Buyer within 45 days of the Closing Date, and such Employee is
not terminated for cause by Buyer, Seller shall reimburse Buyer for the wages paid to such Employee.

 

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8.6         License
Agreements.  Within 30 days of the date of this Agreement, Seller and Buyer shall enter into a license agreement permitting
the current employees of Seller who will become employees of Buyer on the Closing Date to use the premises of Seller to continue
conducting the Business, provided that all requirement of the license agreement are satisfied.

 

9.         INDEMNIFICATION.

 

9.1         Survival;
Right to Indemnification not Affected by Knowledge. All representations,
warranties, covenants, and obligations in this Agreement, the certificate delivered pursuant to Section 2.3(b)(iii), and any other
certificate or document delivered pursuant to this Agreement will survive the Closing. The waiver of any condition based on the
accuracy of any representation or warranty, or on the performance of or compliance with any covenant or obligation, will not affect
the right to indemnification, payment of Damages, or other remedy based on such representations, warranties, covenants, or obligations.

 

9.2         Indemnification
and Payment of Damages by Seller.

 

(a)         Seller
will indemnify and hold harmless Buyer, each of the Targets, and their respective Representatives, stockholders, controlling persons,
and affiliates (collectively, the “Indemnified Persons”) for, and will pay to the Indemnified Persons the amount
of, any loss, liability, claim, damage (including incidental, special, consequential, and punitive damages), expense (including
the cost of investigation and offense and reasonable attorneys’ fees), whether or not involving a third party claim (collectively,
“Damages”), arising, directly or indirectly, from or in connection with:

 

(i)          any
breach of any representation or warranty made by Seller in this Agreement or any other certificate or document delivered by Seller
pursuant to this Agreement;

 

(ii)         any
breach of any representation or warranty made by Seller in this Agreement as if such representation or warranty were made on and
as of the Closing Date, other than any such breach that is expressly identified in the certificate delivered pursuant to Section
2.3(b)(iii) as having caused any condition specified in Section 7 not to be satisfied; and

 

(iii)        any
breach by Seller of any covenant or obligation of Seller in this Agreement.

 

(b)         The
Seller will not have any liability (for indemnification or otherwise) with respect to any breach of any representation or warranty
unless, on or before the twelve-month anniversary of the Closing Date, the Buyer notifies the Seller of a claim specifying the
factual basis of that claim in reasonable detail to the extent then known by the Buyer.

 

(c)         The
Seller’ maximum liability for Damages with respect to a claim for indemnification or reimbursement based upon a breach of
any representation or warranty shall be limited to and shall not exceed 50% of the Purchase Price proceeds actually received by
Seller.

 

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(d)          The
indemnification obligations of Seller under this Article 9 shall be the sole and exclusive remedy of the Buyer or any other Indemnified
Person available at law or in equity for any breach of any representation, warranty, covenant or other terms, conditions or obligations
of Seller under this Agreement and the Buyer (on its behalf and on behalf of all Indemnified Persons) hereby waives and releases
any and all tort claims and causes of action that may be based upon, arise out of or relate to this Agreement, or the negotiation,
execution or performance of this Agreement (including any tort claim or cause of action based upon, arising out of or related to
any representation or warranty made in or in connection with this Agreement or as an inducement to enter into this Agreement).

 

(e)          The
remedies provided in this Section 9 shall be the exclusive remedies that may be available to Buyer or the other Indemnified Persons.

 

9.3         Indemnification
and Payment of Damages by Buyer. Buyer will indemnify and hold
harmless Seller, and pay to Seller the amount of any Damages arising, directly or indirectly, from (a) any breach or inaccuracy
of any representation and warranty of the Buyer contained in this Agreement or in any certificate delivered by Buyer pursuant to
this Agreement, or (b) any breach of, or failure of the Buyer to perform, any covenant or agreement of the Buyer contained in this
Agreement or in any certificate delivered by Buyer pursuant to this Agreement.

 

9.4         Procedure
of Indemnification—Third Party Claims.

 

(a)          Promptly
after receipt by an Indemnified Person of notice of the commencement of any Proceeding against it, such, if a claim is to be made
against an indemnifying party (i.e., Seller), give notice to the indemnifying party of the commencement of such claim, but
the failure to notify the indemnifying party will not relieve the indemnifying party of any liability that it may have to any Indemnified
Person, except to the extent that the indemnifying party demonstrates that the defense of such action is prejudiced by the Indemnified
Person’s failure to give such notice.

 

(b)          If
any Proceeding referred to in Section 9.4(a) is brought against an Indemnified Person and it gives notice to the indemnifying party
of the commencement of such Proceeding, the indemnifying party will, unless the claim involves Taxes, be entitled to participate
in such Proceeding and, to the extent that it wishes (unless (i) the indemnifying party is also a party to such Proceeding and
the Indemnified Person determines in good faith that joint representation would be inappropriate, or (ii) the indemnifying party
fails to provide reasonable assurance to the Indemnified Person of its financial capacity to defend such Proceeding and provide
indemnification with respect to such Proceeding), to assume the defense of such Proceeding with counsel satisfactory to the Indemnified
Person and, after notice from the indemnifying party to the Indemnified Person of its election to assume the defense of such Proceeding,
the indemnifying party will not, as long as it diligently conducts such defense, be liable to the Indemnified Person, under this
Section 9.4 for any fees of other counsel or any other expenses with respect to the defense of such Proceeding, in each case subsequently
incurred by the Indemnified Person in connection with the defense of such Proceeding, other than reasonable costs of investigation.
If the indemnifying party assumes the defense of a Proceeding, (i) it will be conclusively established for purposes of this Agreement
that the claims made in the Proceeding within the scope of and subject to indemnification; (ii) no compromise or settlement of
such claims may be affected by the indemnifying party without the Indemnified Person’s consent unless (A) there is no finding
or admission of any violation of Legal Requirements or any violation of the rights of any Person in the effect any other claims
that may be made against the Indemnified Person, and (B) the sole relief provided is monetary damages that are paid in full by
the indemnifying party; and (iii) the Indemnified Person will have no liability with respect to any compromise or settlement of
such claims effected without its consent. If notice is given to an indemnifying party of the commencement of any Proceeding and
the indemnifying party does not, within 10 days after the Indemnified Person’s notice, give notice to the Indemnified Person
of its election to assume the defense of such Proceeding, the indemnifying party will be bound by any determination made in such
Proceeding or any compromise or settlement effected by the Indemnified Person.

 

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(c)          Notwithstanding
the foregoing, if an Indemnified Person determines in good faith that there is a reasonable probability that a Proceeding may adversely
affect it or its affiliates other than as a result of monetary damages for which it would be entitled to indemnification under
this Agreement, the Indemnified Person may, by notice to the indemnifying party, assume the exclusive right to defend, compromise,
or settle such Proceeding, but the indemnifying party will not be bound by any determination of a Proceeding so defended or any
compromise or settlement effected without its consent (which may not be unreasonably withheld).

 

9.5         Procedure
for Indemnification—Other Claims. A claim for indemnification for any matter not involving a third party claim
may be asserted by notice to the party from whom indemnification is sought.

 

9.6         arbitration.
Any disputes regarding any claims for indemnification under this Article 9 shall be resolved in accordance with Section 12.12 hereof.

 

10.       Termination.

 

10.1       Termination
Events. This Agreement may, by notice given prior to or at the Closing, be terminated:

 

(a)          by
either Buyer or Seller if a material breach of this Agreement has been committed by the other party and such breach has not been
(i) remedied within ten business days following receipt of written notice from the other party specifying such breach and
demanding that it be remedied or (ii) waived;

 

(b)          (i)
by Buyer if any of the conditions in Section 7 have not been satisfied as of the Closing Date or if satisfaction of such condition
is or becomes impossible (other than through the failure of Buyer to comply with its obligations under this Agreement) and Buyer
has not waived such condition on or before the Closing Date; or (ii) by Seller, if any of the conditions in Section 8
has not been satisfied as of the Closing Date or if satisfaction of such condition is or becomes impossible (other than through
the failure of Seller to comply with their obligations under this Agreement) and Seller has not waived such condition on or before
the Closing Date;

 

(c)          by
mutual consent of Buyer and Seller; or

 

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(d)          by
either Buyer or Seller if the Closing has not occurred (other than through the failure of any party seeking to terminate this Agreement
to comply fully with its obligations under this Agreement) on or before December 31, 2014.

 

10.2       Effect
of Termination. Each party’s right of termination under Section 10.1 is in addition to any other rights it
may have under this Agreement or otherwise, and the exercise of a right of termination will not be an election of remedies. If
this Agreement is terminated pursuant to Section 10.1, all further obligations of the parties under this Agreement will terminate,
except that the obligations in Sections 12.1 will survive; provided, however, that if this Agreement is terminated
by a party because of the breach of this Agreement by the other party or because one or more of the conditions to the terminating
party’s obligations under this Agreement is not satisfied as a result of the other party’s failure to comply with its
obligations under this Agreement, the terminating party’s right to pursue all legal remedies will survive such termination
unimpaired.

 

11.         POST-CLOSING
COVENANTS.

 

11.1       Taxes.

 

(a)         Any
sales, use, real estate transfer, recording, excise, transfer or similar Tax upon or with respect to the transactions contemplated
hereunder, and any recording or filing fees with respect thereto, will be borne by Seller and Seller shall, at its own expense,
file, to the extent required by Law, all necessary Tax Returns and other documentation with respect to all such Taxes. If required
by applicable Law, Buyer shall join in the execution of any such Tax Returns after its review and approval of the contents thereof.

 

(b)         After
the Closing Date, Seller and Buyer shall:

 

(i)          assist
the other in preparing any Tax Returns which such other party is responsible for preparing and filing in accordance with the provisions
of this Section 11.1;

 

(ii)         cooperate
fully in preparing for any audits or examinations of, or any disputes with Tax authorities regarding, any Tax Returns of Seller
for any Tax period or portion of a tax period ending on or before the Closing Date; and

 

(iii)        furnish
each other with copies of correspondence received from any Tax authority in connection with any Tax audit or examination with respect
to any such Tax Return or any administrative or court proceedings relating to any such Tax audit or examination.

 

11.2       Confidentiality.
After the Closing, except as required by applicable Law, each party will, and will cause all Related Persons to, hold, and will
cause its and their respective Representatives to hold, in confidence any and all information, whether written or oral, concerning
the terms of the transactions contemplated by this Agreement and the Ancillary Agreements; provided, however, that
a party may disclose any such information to the extent that such party is required to disclose for tax purposes, financial reporting
purposes, or otherwise by Law. If a party or any of its Related Persons or Representatives discloses any such information in accordance
with the immediately preceding proviso as a result of tax purposes (other than in connection with preparing, filing, and/or amending
tax returns or handling any matters with respect to such tax returns), financial reporting purposes or otherwise by Law, such party
shall promptly notify the other party in writing and, if applicable, shall exercise its commercially reasonable efforts to obtain
an appropriate protective order or other reasonable assurance that confidential treatment will be accorded such information.

 

    	16

    	 

    

  

11.3       Employee
Matters. Buyer shall provide each Employee who accepts an offer of employment with substantially similar compensation
to such Employee’s current level. Buyer and Seller shall use commercially reasonable efforts to ensure that each Employee
who accepts an offer of employment with Buyer is employed by Buyer on his or her Target Start Date. Nothing herein shall be construed
to require Buyer to hire any Employee for any particular period of time and all Employees (except any employed pursuant to an employment
agreement) who become employees of Buyer shall be considered “at will” employees of Buyer.

 

12.       General
Provisions.

 

12.1       Expenses.
Except as otherwise expressly provided in this Agreement, each party to this Agreement will bear its respective expenses incurred
in connection with the preparation, execution, and performance of this Agreement and the Contemplated Transactions, including all
fees and expenses of agents, representatives, counsel, financial advisors, investment bankers and accountants. In the event of
termination of this Agreement, the obligation of each party to pay its own expenses will be subject to any rights of such party
arising from a breach of this Agreement by the other party.

 

12.2       Casualty
Loss. Seller shall bear the risk of loss, destruction, or damage to each of the Targets and the assets of each of the
Targets caused by fire or other casualty through the Closing Date. Thereafter such risk shall shift to Buyer.

 

12.3       Public
Announcements. Any public announcement or similar publicity with respect to this Agreement or the Contemplated Transactions
will be issued, if at all, at such time and in such manner as Buyer and Seller mutually determine. Unless consented to by each
party hereto in advance or required by Legal Requirements, prior to the Closing, the parties shall and shall cause their Representatives
to keep this Agreement strictly confidential and may not make any disclosure of this Agreement to any Person other than the parties’
Representatives.

 

12.4       Notices.
All notices, demands, and requests required or permitted to be given under the provisions of this Agreement shall be in writing
and shall be deemed given: (a) when personally delivered to the party to be given such notice or other communication; (b) on the
business day that such notice or other communication is sent by facsimile or similar electronic device, fully prepaid, which facsimile
or similar electronic communication shall promptly be confirmed by mailed notice; (c) on the third business day following the date
of deposit in the United States mail if such notice or other communication is sent by certified or registered mail with return
receipt requested and postage thereon fully prepaid; or (d) on the business day following the day such notice or other communication
is sent by reputable overnight courier, to the following:

 

    	17

    	 

    

  

	
        If to Seller:

         
	
        CertusHoldings, Inc.

        2 West Washington Street, Suite 700

        Greenville, SC 29601

        Attn: Thomas Simpson

        Telephone: (864) 478-1389

        Email: thomassimpson@certusbank.com

	 	 
	If to Buyer:	
        Investview, Inc.

        54 Broad Street, Suite 304

        Red Bank, NJ 07701

        Attn: Dr. Joseph Louro

        Telephone:

        Email: drjoelouro@investview.com

 

or to such other address or facsimile number
as the parties may designate by proper notice.

 

12.5       Further
Assurances. The parties agree (a) to furnish upon request to each other such further information, (b) to execute
and deliver to each other such other documents, and (c) do such other acts and things, all as the other party may reasonably
request for the purpose of effecting the intent of this Agreement and the documents referred to in this Agreement or effecting
or memorializing the Contemplated Transactions.

 

12.6       Waiver.
The rights and remedies of the parties to this Agreement are cumulative and not alternative. Neither the failure nor any delay
by any party in exercising any right, power, or privilege under this Agreement or the documents referred to in this Agreement or
any document delivered in connection with the Contemplated Transactions will operate as a waiver of such right, power or privilege,
and no single or partial exercise of any such right, power, or privilege will preclude any other or further exercise of such right,
power or privilege or the exercise of any other right, power, or privilege. To the maximum extent permitted by applicable law,
(a) no claim or right arising out of this Agreement or the documents referred to in this Agreement can be discharged by one
party, in whole or in part, by a waiver or renunciation of the claim or right unless in writing signed by the other party; (b) no
waiver that is given by a party will be applicable except in the specific instance for which it is given; and (c) no notice
to or demand on one party will be deemed to be a waiver of any obligation of such party or of the right of the party giving such
notice or demand to take further action without notice or demand as provided in this Agreement or the documents referred to in
this Agreement or in any document delivered in connection with the Contemplated Transactions.

 

12.7       Entire
Agreement and Modification. This Agreement supersedes all prior agreements between Buyer and Seller and constitutes
(together with the documents referred to in this Agreement) a complete and exclusive statement of the terms of the agreement between
the parties with respect to its subject matter. This Agreement may not be amended except by a written agreement executed by the
parties hereto.

 

    	18

    	 

    

  

12.8       Assignments,
Successors, and No Third-Party Rights. No party may assign any of its rights under this Agreement without the prior
written approval from the other parties except that Buyer may assign any of its rights under this Agreement to any Related Person
or Subsidiary of Buyer; but no such assignment will release Buyer from any obligations hereunder. Subject to the preceding sentence,
this Agreement will apply to, be binding in all respects upon, and inure to the benefit of the heirs, successors, personal representatives
and permitted assigns of the parties. Nothing expressed or referred to in this Agreement will be construed to give any Person other
than the parties to this Agreement any legal or equitable right, remedy, or claim under or with respect to this Agreement or any
provision of this Agreement. This Agreement and all of its provisions and conditions are for the sole and exclusive benefit of
the parties to this Agreement and their heirs, successors, personal representatives and permitted assigns.

 

12.9       Severability.
If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the other provisions
of this Agreement will remain in full force and effect. Any provision of this Agreement that is held invalid or unenforceable only
in part or degree or in a particular circumstance will remain in full force and effect to the extent not held invalid or unenforceable
and in all other circumstances.

 

12.10     Section
Headings; Construction. The headings of Sections in this Agreement are provided for convenience only and will not affect
its construction or interpretation. Except as otherwise expressly set forth herein, all references to “Article” or
“Articles” or “Section” or “Sections” refer to the corresponding Article or Articles or Section
or Sections of this Agreement. All words used in this Agreement will be construed to be of such gender or number as the circumstances
require. Unless otherwise expressly provided, the word “including” does not limit the preceding words or terms.

 

12.11     Arbitration.
Any controversy or claim arising out of or relating to this Agreement or any related agreement shall be settled by arbitration
in accordance with the following provisions:

 

(a)          The
agreement of the parties to arbitrate covers all disputes of every kind relating to or arising out of this Agreement or any of
the transactions contemplated by this Agreement. Disputes include actions for breach of contract with respect to this Agreement,
as well as any claim based upon tort or any other causes of action. In addition, the arbitrators selected according to procedures
set forth below shall determine the arbitrability of any matter brought to them, and their decision shall be final and binding
on the parties, and judgment upon the award may be entered in any court of competent jurisdiction in the United States. The forum
for the arbitration shall be Atlanta, Georgia, and the governing Law for the arbitration shall be the Law of the State of Georgia,
without reference to its conflicts of laws provisions. There shall be three arbitrators, unless the parties are able to agree on
a single arbitrator. In the absence of such agreement within ten days after the initiation of an arbitration proceeding, Seller
shall select one arbitrator and Buyer shall select one arbitrator, and those two arbitrators shall then select, within ten days,
a third arbitrator. If those two arbitrators are unable to select a third arbitrator within such ten-day period, a third arbitrator
shall be appointed by the commercial panel of the American Arbitration Association. The decision in writing of at least two of
the three arbitrators shall be final and binding upon the parties. Each party shall bear its own fees and expenses with respect
to the arbitration and any proceeding related thereto and the parties shall share equally the fees and expenses of the American
Arbitration Association and the arbitrators.

 

    	19

    	 

    

  

(b)          The
arbitration shall be administered by the American Arbitration Association. The rules of arbitration shall be the Commercial Arbitration
Rules of the American Arbitration Association, as modified by any other instructions that the parties may agree upon at the time,
except that each party shall have the right to conduct discovery in any manner and to the extent authorized by the Federal Rules
of Civil Procedure as interpreted by the federal courts. If there is any conflict between those rules and the provisions of this
Section, the provisions of this Section shall prevail.

 

(c)          The
arbitrators shall be bound by and shall strictly enforce the terms of this Agreement and may not limit, expand or otherwise modify
its terms. The arbitrators shall not have power to award damages in connection with any dispute in excess of actual compensatory
damages and shall not multiply actual damages or award consequential or punitive damages.

 

12.12    Litigation.
In the event that the prior, binding arbitration set forth in Sections 12.11(a)-(c) above shall for any reason be deemed unenforceable,
the parties to this Agreement consent and agree that any disputes between the parties or any disputes arising under this Agreement
shall be exclusively resolved in the State Courts of Greenville, South Carolina or the United States District Court for South Carolina.
The parties to this Agreement consent to jurisdiction in and agree to have any such disputes exclusively resolved in these two
courts. The parties agree that these courts are the most convenient venue for the resolution of any such disputes.

 

12.13    Legal
Fees and Costs. Except as provided in Section 12.11 above, if a
legal action is initiated by any party to this Agreement against another, arising out of or relating to the alleged performance
or non-performance of any right or obligation established hereunder, or any dispute concerning the same, the prevailing party shall
be entitled to recover its reasonable legal fees and costs from the other party.

 

12.14    Mutual
Drafting. The parties hereto have participated jointly in the negotiation and drafting of this Agreement and, in the
event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as jointly drafted by the
parties hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship
of any provision of this Agreement.

 

12.15    Execution
of Agreement. This Agreement may be executed in one or more counterparts,
each of which will be deemed to be an original copy of this Agreement and all of which, when taken together, will be deemed to
constitute one and the same agreement. The exchange of copies of this Agreement and of signature pages by facsimile transmission
shall constitute effective execution and delivery of this Agreement as to the parties and may be used in lieu of the original Agreement
for all purposes. Signatures of the parties transmitted by facsimile or via .pdf format shall be deemed to be their original signatures
for all purposes.

 

    	20

    	 

    

  

IN WITNESS WHEREOF,
the parties have executed and delivered this Agreement as of the date first written above.

 

	SELLER	 
	 	 
	CERTUSHOLDINGS, INC.	 
	 	 
	By:	/s/ Len Davenport	 
	Name: Len Davenport	 
	Title: Treasurer	 

 

	BUYER	 
	 	 
	INVESTVIEW, INC.	 
	 	 
	By:	/s/Dr. Joseph Louro	 
	Name: Dr. Joseph Louro	 
	Title: Chief Executive Officer	 

 

    	21

    	 

    

 

Schedule 3.2(b)

 

Conflicts

 

To be delivered by Seller prior to Closing

 

    	22

    	 

    

  

Schedule 3.2(c)

 

Required Notices, Consents, and Authorizations

 

To be delivered by Seller prior to Closing

 

    	23

    	 

    

  

Schedule 3.2(d)

 

Contracts Relating to the Issuance, Sale
or Transfer or Shares or Membership Interest

 

To be delivered by Seller prior to Closing

 

    	24

    	 

    

  

Schedule 3.5(a)

 

Material Contracts

 

To be delivered by Seller prior to Closing

 

    	25

    	 

    

  

Schedule 3.7(a)

 

Licenses

 

To be delivered by Seller prior to Closing

 

    	26

    	 

    

  

Schedule 3.7(b)

 

Complaints or Actions

 

To be delivered by Seller prior to Closing

 

    	27

    	 

    

  

Schedule 3.8(a)

 

Taxes Contested

 

To be delivered by Seller prior to Closing

 

    	28

    	 

    

  

Schedule 3.8(c)

 

Taxes Returns Under Audit

 

To be delivered by Seller prior to Closing

 

    	29

    	 

    

 

 Schedule 3.9

 

Material Changes

 

To be delivered by Seller prior to Closing

 

    	30

    	 

    

  

Schedule 3.10(a)

 

Exceptions to Legal Compliance

 

To be delivered by Seller prior to Closing

 

    	31

    	 

    

  

Schedule 3.10(b)

 

Government Authorization

 

To be delivered by Seller prior to Closing

 

    	32

    	 

    

 

 Schedule 3.11

 

Legal Proceedings

 

To be delivered by Seller prior to Closing

 

    	33

    	 

    

  

Schedule 3.12(a)

 

Intellectual Property

 

To be delivered by Seller prior to Closing

 

    	34

    	 

    

  

Schedule 3.13

 

Interests of Related Persons

 

To be delivered by Seller prior to Closing

 

    	35

    	 

    

  

Schedule 5.1

 

Client List

 

To be delivered by Seller prior to Closing

 

    	36

    	 

    

  

Section 8.5

 

Hiring Employees

To be provided by Buyer

 

	Teammate

Number	Name	Dept
    No	Department	Function	Job Title	Location	Target Start Date	Disposition
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

 

    	37

    	 

    

  

Exhibit
A

 

DEFINITIONS

 

“Accounts
Receivable” means all trade accounts receivable and other rights to payment from customers of any Seller and the
full benefit of all security for such accounts or rights to payment, including all commissions, compensation, and bonuses received
from any insurers arising from the sale or renewal of any insurance policies or products and all trade accounts receivable representing
amounts receivable in respect of products sold or services rendered to customers of any Seller, all other accounts receivable
of any Seller and full benefit of all security for such accounts and any claim, remedy or any other right related to any of the
foregoing.

 

“Agreement”
has the meaning set forth in the Introduction and Background Sections of this Agreement.

 

“Ancillary
Agreements” has the meaning set forth in Section 2.3(a)(iii) of this Agreement.

 

“Businesses”
has the meaning set forth in the Background Section of this Agreement.

 

“Buyer”
has the meaning set forth in the Introduction and Background Sections of this Agreement.

 

“CIA”
has the meaning set forth in the Background Section of this Agreement.

 

“CIA Business”
has the meaning set forth in the Background Section of this Agreement.

 

“CSI Business”
has the meaning set forth in the Background Section of this Agreement.

 

“Clients”
shall mean, collectively, the clients to which Seller provide investment management or investment advisory services as of the date
hereof.

 

“Closing”
has the meaning set forth in Section 2.4 of this Agreement.

 

“Closing
Date” means the date and time as of which the Closing actually takes place, as set forth in Section 2.4.

 

“Consent”
means any approval, consent, ratification, waiver or other authorization (including any Governmental Authorization).

 

“Contemplated
Transactions” means this Agreement along with the Ancillary Agreements.

 

“Damages”
has the meaning set forth in Section 9.2(a) of this Agreement.

 

“Employees”
has the meaning set forth in Section 8.5 of this Agreement.

 

    	38

    	 

    

  

“Encumbrance”
means any charge, claim, community property interest, condition, equitable interest, lien, option, pledge, security interest, right
of first refusal or restriction of any kind, including any restriction on use, voting, transfer (other than restrictions on transfer
under applicable securities laws), receipt of income or exercise of any other attribute of ownership.

 

“GAAP”
means United States generally accepted accounting principles applied consistently.

 

“Governmental
Authorization” means any approval, consent, license, permit, waiver, or other authorization issued, granted, given,
or otherwise made available by or under the authority of any Governmental Body or pursuant to any Legal Requirement.

 

“Governmental
Body” means any:

 

(a)          nation,
state, county, city, town, village, or district;

 

(b)          federal,
state, local, municipal, foreign, or other government;

 

(c)          governmental
or quasi-governmental authority or any similar recognized organization or body (including any governmental agency, branch, department,
official, or entity and any court or other tribunal);

 

(d)          multi-national
organization or any similar recognized organization or body; or

 

(e)          other
similar recognized organization or body of any federal, state, county, municipal, local, or foreign government or other similar
recognized organization or body exercising similar powers or authority.

 

“Intellectual
Property” means any and all trade names, and all derivatives thereof, trademarks, service marks, logos, patents,
patent rights, copyrights (as well as applications, registrations and certificates for any of the foregoing), and proprietary processes
and formulas, inventions, Trade Secrets, know-how of each of the Targets and other proprietary rights of either of the Targets
generally considered to be intellectual property.

 

“IRC”
means the Internal Revenue Code of 1986, as amended, and regulations issued pursuant to the IRC.

 

“Judgment”
means any order, writ, injunction, citation, award, decree or other judgment of any nature of any foreign, federal, state or local
court, Governmental Body, administrative agency, regulatory authority or arbitration tribunal.

 

“Knowledge”
means, with respect to a Person, and includes those facts or matters that any individual who is serving, or who has at any time
served, as an owner, director, officer, executive, partner, manager, member, executor, or trustee of that Person (or in any similar
capacity) (a) is, or at any time was, actually aware of that fact or matter; or (b) could be expected to discover or otherwise
become aware of that fact or matter in the course of conducting a reasonably comprehensive investigation regarding the accuracy
of any representation or warranty contained in this Agreement.

 

    	39

    	 

    

  

“Knowledge
of Seller” and all derivative forms thereof means, collectively, the knowledge of the Seller and executive officers
of Seller with respect to such facts or matters of which such Persons are actually aware or reasonably should be aware in their
capacity as the executive officers of Seller, and such knowledge is supported by the Affidavit and Certificate.

 

“Legal
Requirement” means any federal, state, local, municipal, foreign, international, multinational, self regulatory agency,
or other administrative order, constitution, law, ordinance, principle of common law, regulation,rule, statute, or treaty including,
but not limited to, approval from FIRNA with respect to the change in ownership of CSI under Rule 1017.

 

“Liability”
means any liability or obligation (whether known or unknown, whether asserted or unasserted, whether absolute or contingent, whether
accrued or unaccrued, whether liquidated or unliquidated, and whether due or to become due) related to the Businesses.

 

“Licenses”
means all permits, licenses, qualifications, consents, orders, waivers, Governmental Authorizations, or other authorizations used
in, necessary for, relating to or arising from the conduct of the Businesses.

 

“Managed
Assets” shall mean, as of any date, with respect to any Client, the aggregate asset value of the Client’s assets
as of such date with respect to which Seller provides investment management or investment advisory services.

 

“Membership
Interest” means the membership interest in CIA, a Georgia limited liability company.

 

“Order”
means any award, decision, injunction, judgment, order, ruling, subpoena or verdict entered, issued, made or rendered by any court,
administrative agency or other Governmental Body or by any arbitrator.

 

“Ordinary
Course of Business” means an action taken by a Person will be deemed to have been taken in the “Ordinary Course
of Business” only if such action is consistent in all material respects with the past practices of such Person and is taken
in the ordinary course of the normal operations of such Person.

 

“Organizational
Documents” means (a) the articles of organization and the operating agreement of a limited liability company;
(b) the articles of incorporation and the bylaws of a corporation; (c) any charter or similar document adopted or filed in
connection with the creation, formation, or organization of a Person; and (d) any amendment to any of the foregoing.

 

“Person”
means any individual, corporation (including any non-profit corporation), general or limited partnership, limited liability company,
joint venture, estate, trust, association, organization, labor union, or other entity or Governmental Body.

 

    	40

    	 

    

  

“Proceeding”
means any action, arbitration, audit, hearing, investigation, litigation, or suit (whether civil, criminal, administrative, investigative
or informal) commenced, brought, conducted, or heard by or before, or otherwise involving, any Governmental Body or arbitrator.

 

“Purchase
Price” has the meaning set forth in Section 2.2 of this Agreement.

 

“Related
Person” means, with respect to a specified Person other than an individual:

 

(a)          any
Person that directly or indirectly controls, is directly or indirectly controlled by, or is directly or indirectly under common
control with such specified Person;

 

(b)          any
Person that holds a Material Interest in such specified Person;

 

(c)          each
Person that serves as a director, officer, partner, executor, or trustee of such specified Person (or in a similar capacity);

 

(d)          any
Person in which such specified Person holds a Material Interest; and

 

(e)          any
Person with respect to which such specified Person serves as a general partner or a trustee (or in a similar capacity).

 

For purposes of this
definition, “Material Interest” means direct or indirect beneficial ownership (as defined in Rule 13d-3
under the Securities Exchange Act of 1934) of voting securities or other voting interests representing at least 10% of the outstanding
voting power of a Person or equity securities or other equity interests representing at least 10% of the outstanding equity securities
or equity interests in a Person.

 

“Representative”
means, with respect to a particular Person, any director, officer, employee, agent, consultant, advisor, or other representative
of such Person, including legal counsel, accountants, and financial advisors.

 

“Schedule”
means any disclosure schedule delivered by Seller to Buyer concurrently with the execution and delivery of this Agreement.

 

“Seller”
has the meaning set forth in the Background Section of this Agreement.

 

“Shares”
means shares of the outstanding common stock of CertusSecurities, Inc., a Georgia corporation.

 

“Subsidiary”
means, with respect to any Person (the “Owner”), any corporation or other Person of which securities or other
interests (a) having the power to elect a majority of that corporation’s or other Person’s board of directors
or similar governing body, or (b) otherwise having the power to direct the business and policies of that corporation or other
Person (other than securities or other interests having such power only upon the happening of a contingency that has not occurred)
are held by the Owner or one or more of its Subsidiaries.

 

“Target
Intellectual Property” has the meaning set forth in Section 3.12(a) of this Agreement.

 

    	41

    	 

    

  

“Targets”
has the meaning set forth in the Background Section of this Agreement.

 

“Tax”
means all federal, state, local or foreign income, gross income, gains, gross receipts, sales, use, ad valorem, goods and
services, capital, production, transfer, franchise, windfall profits, license, payroll, withholding, employment, occupation, disability,
excise, estimated, stamp, property (personal or real), environmental, custom duties, unemployment, or other taxes of any kind whatsoever,
together with any interest, additions, or penalties thereto and any interest in respect of such interest and penalties, related
to the Businesses.

 

“Tax Return”
means any return (including any information return), declaration, report, or statement relating to Taxes required to be filed with,
or submitted to, any Governmental Body, including any schedule or attachment thereto and including any amendment thereof, on behalf
of the Business.

 

“Threatened”
means, with respect to any claim, Proceeding, dispute, action or other matter, that a demand with respect to such claim, Proceeding,
dispute action or matter has been made in writing or a notice of such claim, Proceeding, dispute, action or other matter has been
given in writing.

 

“Trade
Secrets” means all information of either of the Targets, including all know-how, trade secrets, confidential information,
customer identities and lists, revenue figures from customers’ accounts, customer risk requirements and characteristics,
key contact personnel, financial data and performance, payroll, policy expiration dates, policy terms, conditions and rates, information
about prospective customers, information about methods of soliciting business and marketing programs, information about specialized
insurance markets, software, technical information, data, process technology, plans, drawings, and blue prints which (a) derives
economic value from not being generally known to, and not being readily ascertainable by proper means by, other persons who can
obtain economic value from its disclosure or use, and (b) is the subject of efforts that are reasonable under the circumstances
to maintain its secrecy.

 

    	42

    	 

    

  

Exhibit
B

 

Form
of License Agreement

 

    	43

    	 

    

  

Exhibit
C

 

Assignment
of Shares

 

FOR VALUE RECEIVED,
the undersigned, CertusHoldings, Inc. (“Assignor”), a Delaware corporation, does hereby irrevocably assign and
transfer unto Investview, Inc. (“Assignee”), a [___________] corporation, all of Assignor’s right, title
and interest in and to the shares of stock of CertusSecurities, Inc. (“CSI”), a Georgia corporation (the “Shares”),
standing or listed in the name of Assignor on the books of CSI. Assignor hereby represents and warrants to Assignee that Assignor
has not pledged, assigned, hypothecated, or otherwise encumbered the Shares in any way and is the sole and exclusive owner of the
Shares.

 

	Dated: October_, 2014	 

 

	Address:	Assignor:
	 	 
	1170 Peachtree Street, Suite 2400	CERTUSHOLDINGS, INC.
	Atlanta, GA 30309	 
	 	 
	  	 
	 	By: Len Davenport
	 	Its: Treasurer

 

    	44

    	 

    

  

Exhibit
D

 

ASSIGNMENT OF MEMBERSHIP INTEREST

 

This Assignment of
Membership Interestsis made as of October __, 2014, by and between CertusHoldings, Inc., a Delaware Corporation (“Assignor”),
and Investview, Inc., a [_________] corporation (“Assignee”). Capitalized terms used but not defined herein
shall have the meanings set forth in the Purchase Agreement (the “Agreement”), dated as of October __, 2014,
by and between Assignor and Assignee.

 

For good and valuable
consideration, receipt of which is hereby acknowledged, Assignor and Assignee agree as follows:

 

1.          Assignor
does hereby assign, transfer, and convey unto Assignee the right, title, and interest in and to all of Assignor’s Membership
Interests in Certus Investment Advisors, LLC (“CIA”), a Georgia limited liability company, together with all
right, title, and interest in and under the Operating Agreement of CIA, as amended from time to time.

 

2.          Assignee
hereby acknowledges and accepts the foregoing assignment and acknowledges and accepts that hereinafter the Membership Interests
shall be owned by the Assignee.

 

	Address:   	ASSIGNEE:
	 	 
	 	INVESTVIEW, INC. 
	 	 
	 	By: Dr. Joseph Louro
	 	Its: Chief Executive Officer
	 	 
	Address:   	ASSIGNOR:
	 	 
	 	CERTUSHOLDINGS, INC.
	 	 
	 	 
	 	By: Len Davenport
	 	Its: Treasurer

 

    	45

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