Document:

Exhibit 10.5 

 

CONTRIBUTION
AGREEMENT

 

 

THIS
CONTRIBUTION AGREEMENT is by and among Odyssey Group International, Inc. a Nevada Corporation (“Odyssey”),
and each of Market Group International, Inc. (“Market Group”), EcoScientific, Inc. (“EcoScientific”),
Adwin, Inc. (“Adwin”), and Regal Growth, LLC (“Regal Growth”). Market Group, EcoScientific,
Adwin, and Regal Growth together, the “StemFit Parties”)

 

WHEREAS,
the StemFit Parties owns or controls all proprietary rights in and to the formula of StemFit Active (the “Formula”);

 

WHEREAS,
Odyssey (the “Company”) desires to acquire the Formula and the business related to the Formula
(the “Business”);

 

WHEREAS,
the StemFit Parties desire to transfer to Odyssey, and Odyssey desires to accept, all of the respective rights, titles and interests
in and to the Formula of the StemFit Parties used in the operation of the Business, as consideration for their membership interests
in Odyssey, upon the terms and subject to the conditions set forth in this Agreement; and

 

WHEREAS,
Odyssey desires to contribute one hundred million shares of common stock of Odyssey (the “Shares”) divided
equally among the StemFit Parties described below as consideration for the Formula.

 

NOW,
THEREFORE, in consideration of the premises, agreements and covenants contained herein, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, and in reliance upon the mutual representations and warranties contained
herein, the parties hereto agree as follows:

 

 

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ARTICLE
I

DEFINITIONS

 

Section
1.1 Certain Defined Terms.

 

(a)
As used in this Agreement, the following terms shall have the following
meanings”

 

“Affiliate”
means with respect to any specified Person, any other Person that directly or indirectly through one or more intermediaries
controls, is controlled by or is under common control with such specified Person.

 

“Agreement”
means this Agreement (including all Exhibits and Schedules hereto) as amended, supplemented or modified and in effect from
time to time.

 

“Business
Day” means any day that is not a Saturday, a Sunday or other day on which federal banks are required or authorized
by law to be closed.

 

“Code”
means the Internal Revenue Code of 1986, as amended through the date hereof, and the regulations thereunder, published by
the IRS rulings, and court decisions in respect thereof, all as the same shall be in effect at the time.

 

“Enforceable”
means, with respect to any contract or other agreement, that such contract or other agreement is the legal, valid and binding
obligation of the Person in question, enforceable against such Person in accordance with its terms, except as such enforceability
may be limited by bankruptcy, insolvency, reorganization or other Legal Requirements affecting creditors' rights generally and
general principles of equity (whether considered in a proceeding at law or in equity).

 

“Environmental
Claims” means any and all actual or potential actions, suits, demands, demand letters, claims, Liens, notices of
noncompliance or violation, notices of Liability or potential Liability, investigations, proceedings, consent orders or consent
agreements or other obligations pursuant to a Governmental Order or contractual obligation to any Person relating in any way to
any Environmental Law or any Permit issued thereunder.

 

“Family”
means, with respect to an individual, (i) the individual, (ii) the
individual's spouse, (iii) any other natural Person who is related to the individual or the individual's spouse within the second
degree and (iv) any other natural Person who resides with such individual.

 

“Governmental
Order” means any order, writ, subpoena, judgment, injunction, decree, stipulation, determination or award entered
by or with any Regulatory Authority.

 

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“Indebtedness”
means, with respect to any Person, (i) the principal, accreted
value, accrued and unpaid interest, prepayment and redemption premium (if any), unpaid fees or expenses and other monetary obligations
in respect of (A) indebtedness of such Person for money borrowed and (B) indebtedness evidenced by notes, debentures, bonds or
other similar instruments for the payment of which such Person is responsible or liable, (ii) all obligations of such Person issued
or assumed as the deferred purchase price of property, all conditional sale obligations of such Person and all obligations of
such Person under any title retention agreement, (iii) all obligations of such Person under leases required to be capitalized
in accordance with GAAP, (iv) all obligations of such Person for the reimbursement of any obligor on any letter of credit, banker's
acceptance or similar credit transaction, (v) the liquidation value, accrued and unpaid dividends and prepayment or redemption
premium (if any), unpaid fees or expenses and other monetary obligations in respect of any redeemable preferred stock of
such Person, (vi) all obligations of the type referred to in clauses (i) through (v) of any Persons for the payment of which such
Person is responsible or liable, directly or indirectly, as obligor, guarantor, surety or otherwise, including guarantees of such
obligations and (vii) all obligations of the type referred to in clauses (i) through (vi) of other Persons secured by any Lien
on any property or asset of such Person (whether or not such obligation is assumed by such Person).

 

“IRS”
means the Internal Revenue Service of the United States of
America.

 

“Knowledge”
when used in respect of any Person, is determined as follows: (i) an individual is deemed to have “Knowledge”
of a particular fact or other matter if that individual is actually aware of that fact or matter; and (ii) a Person other
than an individual is deemed to have "Knowledge" of a particular fact or other matter if any individual who is serving
or who has at any time served as a director, manager, officer or partner of that Person or owns an equity interest in that Person
has, or at any time had, Knowledge of that fact or other matter (as set forth above).

 

“Legal
Requirements” means all statutes, laws, rules, codes, ordinances, regulations, orders, judgments, decrees and Permits
of any Regulatory Authority.

 

“Liability”
means any Indebtedness or other liability or obligation, whether accrued or fixed, absolute or contingent, matured or unmatured,
known or unknown, or determined or determinable.

 

“Lien”
means any lien (including the lien of any mortgage or deed of trust, any mechanic's or materialmen's liens and any judgment
liens), pledge, hypothecation, security interest, encumbrance, lease, sublease, license, occupancy agreement, adverse claim or
interest, easement, right-of-way, covenant, encroachment, burden, option, lien, right of first refusal or other similar restriction.

 

“Material
Adverse Effect” means any change or effect on (a) such party or its assets that is materially adverse to the condition
(financial or otherwise), results of operations or prospects of such party or such party's business, (b) the ability of such party
to materially perform its obligations under any of the Transaction Documents or (c) the validity or enforceability of the Transaction
Documents against any party hereto.

 

“Material
Interest” means direct or indirect beneficial ownership 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.

 

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“Permits”
means all licenses, consents, approvals, permits, registrations, certificates and determinations of need and other authorizations,
if any, issued by any Regulatory Authority that are required or convenient to operate a party's Business.

 

“Permitted
Encumbrances” means: (a) Liens imposed by law for Taxes that are not yet due or that are being contested in good
faith and for which adequate reserves have been set 'aside therefore or are secured by a bond; (b) carriers', warehousemen's,
mechanics', materialmen's, repairmen's or other like Liens imposed by law, arising or incurred in the ordinary course of business
consistent with past practice not yet delinquent or the amount or validity of which is being contested in good faith by appropriate
proceedings; (c) pledges and deposits made in the ordinary course of business consistent with past practice in compliance with
workers' compensation, unemployment insurance and other social security laws or regulations; (d) cash deposits to secure the performance
of bids, trade contracts, leases, statutory obligations, surety and appeal bonds, performance bonds and other obligations of a
like nature, in each case in the ordinary course of business consistent with past practice; (e) Liens arising solely by virtue
of any statutory or common law provisions relating to banker's Liens, rights of set-off or similar rights and remedies as to deposit
accounts or other funds maintained with a creditor depository institution; (f) easements, rights-of-way, restrictions, defects
or other exceptions to title or other similar encumbrances incurred in the ordinary course of business consistent with past practice,
which do not detract in any material respect from the value or marketability of the property subject thereto or substantially
interfere with the ordinary conduct of business consistent with past practice; (g) Liens arising under the Material Agreements;
and (h) Liens arising under the Operating Agreement.

 

“Person”
means any individual, partnership, firm, corporation, association, trust, unincorporated organization or other entity, as
well as any syndicate or group that would be deemed to be a “person“ under Section 13(d)(3) of the Exchange Act.

 

“Regulatory
Authority” means all agencies, authorities, bodies, boards, commissions, institutions, instrumentalities, legislatures
and offices of any nature whatsoever for any governing unit or political subdivision, whether foreign, federal, state, county,
district, municipal, city or otherwise and whether now or hereafter in existence.

 

“Related
Person” means, with respect to (a) a particular individual: (1) each other member of such individual's Family;
(2) any Person that is directly or indirectly controlled by any one or more members of such individual's Family; (3) any Person
in which members of such individual's Family hold (individually or in the aggregate) a Material Interest; and (4) any Person with
respect to which one or more members of such individual's Family serves as a director, officer, partner, executor or trustee
(or in a similar capacity) and (b) a specified Person other than an individual: (1) 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; (2) any
Person that holds a Material Interest in such specified Person; (3) each Person that serves as a director, officer, partner, executor
or trustee of such specified Person (or in a similar capacity); (4) any Person in which such specified Person holds a Material
Interest; and (4) any Person which respect to which such specified Person serves as a general partner or trustee (or in a similar
capacity).

 

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“Tax”
or “Taxes” means any and all taxes, levies, duties, tariffs, imposts and other similar charges of
any kind (together with any and all interest, penalties, additions to tax and additional amounts imposed with respect thereto)
imposed by any Regulatory Authority, including taxes on or with respect to income, franchises, windfall or other profits, gross
receipts, property, sales, use, capital stock, payroll, employment, social security or net worth; taxes or other charges in the
nature of excise, withholding, ad valorem, stamp, transfer, value added or gains taxes for any Person, or imposed on such Person
with respect to another Person by contract, as transferee or successor, under U.S. Treasury regulation Section 1.1502-6 or any
similar provision of any Legal Requirement.

 

“Tax
Return” means all Tax returns, Tax reports, claims for a refund of Taxes, amended Tax returns and declarations of
estimated Tax or other statement relating to Taxes and any schedule or attachments to any of the foregoing filed or maintained
or required to be filed or maintained in connection with the calculation, determination, assessment or collection of any Tax,
including any amended filings.

 

“Transaction
Documents” means this Agreement and each other instrument, document and agreement to be executed and delivered pursuant
hereto.

 

Section
1.2Rules of Construction. Unless the context otherwise requires:

 

(a)
References to Articles, Sections, Schedules and Exhibits shall refer to Articles, Sections, Schedules and Exhibits of this Agreement,
unless otherwise specified.

 

(b)
The words “herein,” “hereof” and “hereunder” and words of similar import refer to this Agreement as a
whole and not to any particular provision of this Agreement.

 

(c)
References to a “party” means a party to this Agreement and include references to such party's successors and permitted
assigns.

 

(d)
References to a “third party” means a Person not party to this Agreement. (e) The headings in this Agreement are for
convenience and identification only and are not intended to describe, interpret, define or limit the scope, extent or intent of
this Agreement or any provision hereof.

 

(f)
All references to any time during a day refer to prevailing Eastern Time.

 

(g)
An accounting term not otherwise defined has the meaning assigned to it in accordance with, or shall otherwise be interpreted
by reference to, GAAP.

 

(h)
References in the singular or to “him,” “her,” “it,” “itself,” or other like references
and references in the plural or the feminine or masculine reference, as the case may be, shall also, when the context so requires,
be deemed to include the plural or singular or the masculine, feminine or neuter reference, as the case may be.

 

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(i)
The word “or” is not exclusive.

 

(j)
With respect to any matter or thing, the terms “including” or “includes” means” including but not limited
to“ such matter or thing.

 

(k)
Any definition of or reference to any Legal Requirement, agreement, instrument or other document herein shall be construed as
referring to such Legal Requirement, agreement, instrument or other document as from time to time amended, supplemented or otherwise
modified; and any definition of or reference to any statute shall be construed as referring also to any rules and regulations
promulgated thereunder.

 

ARTICLE
II

CONTRIBUTIONS
OF THE PARTIES

 

 

Section
2.1 Contribution of the StemFit Parties. On the terms and subject to the conditions set forth in this Agreement,
will contribute all of their respective rights, titles and interests, legal and equitable, in and to the assets identified below
(the “Formula” to the Company, its successors and assigns, free and clear of all Liens other than Permitted
Encumbrances, per the definitions outlined herein:

 

(a)
The Formula controlled through a power of attorney by the StemFit
Parties.

 

(b)
Indefinite usage of the Formula, and all rights in and to the Formula;

 

(c)Usage
and control of all existing licenses or permits necessary or advisable to operate the Business and use the Formula; and

 

(d)
All rights to causes of action, lawsuits, claims and demands of any nature available to or being pursued by the StemFit Parties
with respect to the Formula.

 

Section
2.2 Consideration for the Contributions. In consideration for the contributions, the Company shall issue the
following units:

 

(a)
Market Group will own Twenty-Five Million (25,000,000) fully paid and non-assessable Units of the issued and outstanding membership
interests of the Company on a fully diluted basis, immediately following the Closing;

 

(b)
EcoScientific will own Twenty-Five Million (25,000,000) fully paid and non-assessable Units of the issued and outstanding membership
interests of the Company on a fully diluted basis, immediately following the Closing;

 

(c)
Adwin will own Twenty-Five Million (25,000,000) fully paid and non- assessable Units of the issued and outstanding membership
interests of the Company on a fully diluted basis, immediately following the Closing; and

 

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(d)
Regal Growth will own Twenty-Five Million (25,000,000) fully paid and non-assessable Units of the issued and outstanding membership
interests of the Company on a fully diluted basis, immediately following the Closing;

 

Section
2.3 Company Assumed Obligations. Subject to the following sentence, the Company hereby assumes and agrees to pay,
perform and discharge all of the obligations arising from or relating to (i) the Formula, (ii) contractual obligations associated
with the Business as may be unanimously agreed by the Parties from and after the Effective Date collectively, the (“Assumed
Obligations”). Notwithstanding the foregoing, the Company is not assuming any liabilities or obligations arising
from or relating to the ownership of the Formula or the operation of the Business prior to the Closing, including Liability for
Taxes (the “ Excluded Liabilities”). For the avoidance of doubt, it is understood and agreed that each
individual party, respectively, shall retain all liability for, and the Company shall not assume or have any obligation with respect
to, any Excluded Liabilities.

 

Section
2.4 Closing. The closing of the transactions contemplated by this Agreement and the other Transaction Documents
(the “Closing“) shall take place within 90 days after the date hereof, at the offices of Wilson &
Oskam, LLP, 9110 Irvine Center Drive, Irvine, CA 92618 (currently, such Closing is estimated to
occur on or about March 15, 2014), or at such other time or place as the parties hereto may agree. The date on which the Closing
occurs is referred to herein as the “Closing Date”.

 

Section
2.5 Valuation and Tax Treatment. For purposes of determining the amount credited for each of the StemFit Parties,
the value of the Formula will be treated as having value of $100,000 with
the result that account of the StemFit Parties with respect to the Units issued to will be $0.001 per Unit issued. The
same price per Unit shall be allocated to each of the StemFit Parties in accordance with their respective number of Units. For
United States federal income Tax purposes, the parties recognize that under Treasury Regulation § 1.707-3
the transfer of Assets to the Company pursuant to this Agreement will be treated as a contribution of such Assets.

 

Section
2.6 Taking of Necessary Action; Further Action. Each of the Parties hereto will take all such reasonable and lawful
actions as may be necessary or appropriate in order to effectuate the transactions contemplated hereunder in accordance with this
Agreement as promptly as possible.

 

ARTICLE
III

REPRESENTATIONS
AND WARRANTIES OF THE STEMFIT PARTIES

 

The
StemFit Parties make the following representations and warranties as of the date hereof and as of the Closing Date to the Company:

 

Section
3.1Authority; Enforceability.

 

(a) Each of the
StemFit Parties has all requisite power to enter into this Agreement and to consummate the transactions contemplated hereby. The
execution and delivery of this Agreement and all other Transaction Documents executed or to be executed by either of them pursuant
to this Agreement and the consummation by each of them of the transactions
contemplated hereby and thereby, have been duly authorized by all necessary action. This Agreement and all other Transaction Documents
executed or to be executed by them pursuant to this Agreement have been, at the time of their respective execution and delivery,
duly executed and delivered by each of them.

 

(b)
This Agreement constitutes and, upon execution and delivery by each of the StemFit Parties each of the Transaction Documents executed
or to be executed by any of them will constitute, a valid and legally binding obligation of each of them, Enforceable against
them in accordance with their respective terms.

 

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Section
3.2 No Conflict or Violation. The execution and delivery by each of the StemFit
Parties of this Agreement and the consummation of the transactions contemplated hereby do not and will not (a) conflict with or
violate any order, judgment or decree of any Regulatory Authority or any Legal Requirement applicable to any of them is a party
or (c) violate, conflict with or result in a breach of or constitute a default (or event that with the giving of notice or lapse
of time or both, would become a default) under or give others any rights of termination, amendment, acceleration or cancellation
of or result in the creation of any Lien on any of the assets or properties of any either of them pursuant to any note, bond,
mortgage, indenture, contract, agreement, lease, license, permit, franchise or instrument to which either of them is a party or
to which any of the Assets are subject or affected.

 

Section
3.3 Consents and Approvals. Neither the execution nor delivery of this Agreement by either of them nor the consummation
of the transactions contemplated hereby requires any consent, waiver, approval, license, authorization or Permit of or filing
with or notification to, any Person.

 

Section 3.4 Title
to Personal Property Assets; Assets Sufficient for the Business.

 

(a)
The StemFit Parties have, and each has, good and marketable title to all tangible and intangible personal property included in
the Formula, free and clear of all Liens except for Permitted Encumbrances, including but not limited to the Formula.

 

(b) The Formula
constitutes all of the assets, tangible and intangible, of any nature whatsoever (other than the Excluded Assets) necessary to
operate the Business.

 

Section
3.5 Absence of Litigation. There are no claims, actions, proceedings
or investigations pending, or, to the Knowledge of the StemFit Parties, threatened against the Formula or the Business in the
past five years there have been no claims, actions, proceedings or investigations against the StemFit Parties, the Business, the
Formula, and none of them nor any of the Assets are subject to any order, writ, judgment, injunction, decree, determination or
award that have not already been disclosed to them, respectively. None of the StemFit Parties know of any basis for any action,
proceeding or investigation by any Regulatory Authority relating to the Formula.

 

Section 3.6 Intellectual
Property Assets.

 

(a)
As used in this Agreement, the term “Intellectual Property Assets” means
each of the following relating to or in connection with the Formula: (i) all
fictitious business  names and trade names, all registered and unregistered trademarks and service marks, and all trademark
and service mark applications (collectively, “Marks”), (ii) all issued patents and reissues, divisions,
continuations, and extensions of such patents, patents pending and applications for - patents, patent disclosures docketed, and
inventions and discoveries whether patentable or unpatentable (collectively, “Patents”), (iii) all copyrights
in both published and unpublished works of authorship whether or not registered (collectively, “Copyrights”),
and (iv) all know-how, trade secrets, confidential information, customer and supplier lists, software, technical information,
data, database process technology, proprietary formulae, business and marketing plans, drawings, and blue prints (collectively,
“Trade Secrets”); in each case owned, used or licensed by the contributing Parties of this agreement.

 

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(b)
The Formula does not have any Intellectual Property Assets, or any license or other contract or agreement relating thereto (including
agreements with current or former employees, consultants or contractors pertaining to Marks, Patents and Copyrights).

 

(c)
The StemFit Parties are the sole owners of or, to their Knowledge, possesses an adequate license or has the right to use without
consideration, each Intellectual Property Asset necessary to conduct the Business, free and clear of all assignments, licenses,
restrictions, Liens, charges or claims for infringement, and no such Intellectual Property Asset is subject to any outstanding
order, decree, judgment, stipulation or charge. The Intellectual Property Assets are sufficient for the conduct of the Business
as contemplated by the StemFit Parties. The rights of the StemFit Parties to the Intellectual Property Assets shall not be limited
or otherwise affected by reason of the consummation of the transactions contemplated by this Agreement, whom shall maintain ownership
and control of the Intellectual Property Assets, but give indefinite usage to the Company under the provisions of this Agreement.

 

(d)
None of the Intellectual Property Assets are subject to any maintenance fees or Taxes or·actions due within 90 calendar
days after the Closing. To the Knowledge of the StemFit Parties, no Mark, Patent or Copyright owned or used by either of them
has been infringed or challenged or threatened in any way. No Intellectual Property Asset is involved in any interference, reissue,
reexamination, opposition, invalidation or cancellation proceeding and, to their Knowledge, no such proceeding is threatened.
To their Knowledge, the use of the Intellectual Property Assets by them does not conflict with, infringe upon, violate or interfere
with or constitute an appropriation of any right, title, interest or goodwill in any intellectual property asset of any other
Person and in the past five years there have been no claims made, and neither of them has received, any notice of any claim or
otherwise knows that any of the Intellectual Property Assets is invalid or conflicts with the asserted rights of any other Person.

 

Section 3.7 Material
Contracts.

 

(a)
If applicable to this transaction, set forth on Exhibit D is a true, correct and complete listing of the following contracts or
agreements to which the StemFit Parties is a party (each, a “Material Contract”) that relates to the
Formula.

 

(b) The SternFit Parties have delivered to the Company true
and complete copies of all Material Contracts and none of them is (and, to their Knowledge, no other party is) in breach of, in
violation of or default under, any of the Material Contracts.

 

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Section
3.8 Brokers. No broker, finder or investment banker is entitled to any brokerage, finders' or other fee or commission
in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of the StemFit
Parties.

 

Section 3.9 Compliance
with Laws; Permits; Licenses.

 

(a)
None of the StemFit Parties are, and they have not been at any time in the past five years, in violation of any Legal Requirement
or Governmental Order applicable to them or their business or by which any of the Assets is bound.

 

(b)
There are no investigations, proceedings or sanctions pending or, to the Knowledge of the StemFit Parties, threatened before any
Regulatory Authority that seek to limit, restrict, suspend, revoke or terminate any Permits or to impose any other remedy with
respect to such licensure, ·and to their Knowledge no grounds exist for such limitation, restriction, suspension, revocation
or termination.

 

Section
3.10 Books and Records. The books and records relating to the Formula have been made available to the Company and
set forth in all respects all material transactions affecting the Formula and the Business, including all material items of income
and expense, and such books and records are complete and correct and do not contain or reflect any material inaccuracies or discrepancies
and have been properly kept and maintained in a manner consistent with sound business practices.

 

Section 3.11 Investment
Representations.

 

(a)
Each of the StemFit Parties is acquiring the Units for investment purposes only, solely for its own account and not with a view
to the sale or other distribution thereof, and none of them have a contract, understanding, agreement or arrangement with any
Person to transfer any of the Units, and neither of them has any present intention to enter into any such contract, understanding,
agreement or arrangement, notwithstanding the StemFit Parties' sole rights and initiatives to sell, distribute, or assign to individuals
or entities that hold an operational role within the StemFit Parties, or are defined as a beneficiary to the StemFit Parties upon
death or disability of any Founding Shareholder.

 

(b)
Each of the StemFit Parties acknowledges that the Units have not been registered under the Securities Act or any applicable state
securities laws and, therefore, cannot be sold unless subsequently registered under the Securities Act and any applicable state
securities laws or an exemption from such registration is available and that there are substantial restrictions on the transferability
of the Units under the Agreement and that transfers of the Units may be further restricted by applicable state securities laws,
notwithstanding the provisions of this Agreement. Each of the StemFit Parties acknowledges that the availability of the exemptions
relied upon by the Company in issuing the Units to them are dependent upon the truth of their representations and warranties in
this Agreement, and as set forth herein. Accordingly, it may be necessary for the Parties to submit a breakdown of the distribution
and intent of assignment of said membership units by the Closing date.

 

Section 3.12 Full
Disclosure. No representation or warranty of the StemFit Parties in this Agreement contains any untrue statement of
material fact or omits or will omit to state a material fact that  is necessary to make the statements
contained herein and therein not misleading.

 

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Section 3.13 Governmental Authorizations.
No consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing with,
any Governmental Authority is required on the part of any of the StemFit Parties or any of their respective affiliates in connection
with the execution, delivery and performance by them of this Agreement.

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

The Company makes the following representations
and warranties as of the date hereof and as of the Closing Date to the StemFit Parties:

 

Section 4.1 Organization.
The Company is a corporation, duly organized, validly existing and in good standing under the laws of the State of Nevada
and has the requisite corporate power and authority to own or lease the properties and assets now owned or leased by it. The Company
is duly qualified to do business and is in good standing, in each jurisdiction in which the character of the properties and assets
owned or leased by it or the nature of the business conducted by it makes such qualification necessary.

 

Section 4.2 Authority. The Company
has the requisite power to enter into this Agreement and to consummate the transactions contemplated hereby. The execution and
delivery of this Agreement and all other Transaction Documents executed or to be executed by the Company pursuant to this Agreement
and the consummation by the Company of the transactions contemplated hereby and thereby have been duly authorized by all necessary
corporation company action on the part of the Company. This Agreement and all other Transaction Documents executed or to be executed
by the Company pursuant to this Agreement have been, at the time of their respective execution and delivery, duly executed and
delivered by the Company. This Agreement constitutes and, upon execution and delivery by the Company, each of the Transaction Documents
executed or to be executed by the Company will constitute, a valid and binding obligation of the Company, Enforceable against the
Company in accordance with its terms.

 

Section 4.3 No Conflict.
The execution and delivery by the Company of this Agreement
and the consummation of the transactions contemplated hereby do not and will not (i) violate or conflict with any provision of
its certificate of formation or the Agreement, (ii) conflict with or violate any order, judgment or decree of any Regulatory Authority
or any Legal Requirement applicable to the Company or (iii) violate, conflict with or result in a breach of or constitute a default
(or an event that with the giving of notice or lapse of time or both, would become a default) under or give others any rights
of termination, amendment, acceleration or cancellation of or result in the creation of any Lien on any of the assets or properties
of the Company pursuant to any note, bond, mortgage, indenture, contract, agreement, lease, license, permit, franchise or instrument
to which the Company is a party.

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Section 4.4 Consents,
Waivers and Approvals. Neither the execution and delivery of this Agreement by the Company nor the consummation of the
transactions contemplated hereby by the Company require any consent, waiver, approval, license, authorization or Permit or filing
with or notification to any Person.

 

Section 4.5 Absence
of Litigation. There are no claims, actions, proceedings or investigations pending or, to the Knowledge of the Company,
threatened against the Company; and, nor is the Company subject to any order, writ, judgment, injunction, decree, determination
or award. Nor does the Company know of any basis for any action proceeding or investigation by any Regulatory Authority relating
to the Company.

 

Section 4.6 Units.
Upon delivery of the Units to the StemFit Parties pursuant to and in accordance with the terms of this Agreement, each of them
will acquire record and beneficial title to the Units free and clear of all Liens other than Permitted Encumbrances. The Units
shall, upon issuance, be duly and validly authorized and issued, fully paid and non-assessable and shall have been issued in compliance
with all applicable securities laws and other Legal Requirements.

 

Section 4.7 Brokers.
No broker, finder or investment banker is entitled to any brokerage, finders' or other fee or commission in connection with the
transactions contemplated by this Agreement based upon arrangements made by or on behalf of the Company.

 

Section 4.8 Compliance
with Laws; Permits; Licenses. The Company is not, and has not been at. any time in the past three years, in violation
of any Legal Requirement or Governmental Order applicable to the Business.

 

Section 4.9 Books
and Records. The books and records of the Company made available to the StemFit parties set forth in all respects all
material transactions affecting the Company or the Business, including all material items of income and expense, and such books
and records are complete and correct and do not contain or reflect any material inaccuracies or discrepancies and have been properly
kept and maintained in a manner consistent with sound business practices.

 

Section 4.10 Full
Disclosure. No representation or warranty of the Company in this Agreement contains any
untrue statement of a material fact or omits or will omit to state a material fact that is necessary to make the statements contained
herein and therein not misleading.

 

Section 4.11 Governmental
Authorizations. No consent, approval, order or authorization of, or registration, qualification, designation, declaration
or filing with, any Governmental Authority is required on the part of the Company or any of its respective affiliates in com1ection
with the execution, delivery and performance by the the Company of this Agreement.

 

    	12

    	 

    

 

ARTICLE V

COVENANTS

 

 

Section 5.1 Confidentiality.
Unless expressly consented to in writing by the other parties, no party shall nor shall any such party permit any of its Affiliates,
agents, representatives and employees to, directly or indirectly, disclose to any other Person, any trade secret, financial data,
customer list, pricing or marketing policies or plans or other proprietary or confidential information relating to the other party,
each of the parties' Businesses, the Formula or the Assumed Obligations, except for such disclosures as may be required to comply
with any Legal Requirement or Governmental Order. No party hereto nor its Affiliates shall disclose to any third party the financial
terms of this Agreement, except for disclosures to their respective advisors, representatives or lenders, each of whom shall agree
to keep such information confidential or .disclosures as may be required to comply with any Legal Requirement or Governmental Order.

 

Section 5.2Regulatory and Other Authorizations, Consents.

 

(a) Each party hereto shall use its commercially
reasonable efforts to obtain all approvals, certifications, waivers, authorizations, consents, orders and approvals of all third
parties, Regulatory Authorities and officials that may be or become necessary for its execution and delivery of, and the performance
of its obligations pursuant to, this Agreement and will cooperate fully with the other parties hereto in promptly seeking to obtain
all such approvals, certifications, waivers, authorizations, consents, orders and approvals (collectively, the “Approvals”).

 

(b) Upon the request of any party, the other
party(ies) shall provide to such requesting party such reasonably requested information, reports, documentation, signatures and
testimony that may be required in connection with obtaining any of the Approvals referenced herein.

 

Section 5.3 Public
Announcements. The parties hereto will consult with each other before issuing any press releases or otherwise making any
public statements with respect to this Agreement and the transactions contemplated hereby and shall not issue any such press release
or make any such public statement prior to the Closing without the prior written consent of the other, except that such approval
shall not be required for a public statement to the extent any party is advised by its legal counsel that such disclosure is required
pursuant to any Legal Requirement or Governmental Order.

 

Section 5.4 Transfer
Taxes; Fees and Expenses. All transfer, documentary, sales, use, value-added, stamp and registration Taxes, all conveyance
fees, recording fees, deed stamps, deed excise, mortgage or deed of trust recording, assignment or intangible Taxes and all other
such Taxes and fees (including any penalties and interest) incurred by Odyssey Group International, Inc., the Company, and the
StemFit Parties in connection with any of the Asset transfer, Assumed Obligations assumptions and Units issuance transactions
under this Agreement shall be borne by their Company.

 

    	13

    	 

    

 

ARTICLE VI

CONDITIONS
TO CLOSING

 

Section
6.1 Conditions to Obligations of the StemFit Parties. The obligations
of each of the StemFit Parties to consummate the transactions contemplated by this Agreement shall be subject to the fulfillment
or waiver, at or prior to the Closing, of each of the following conditions:

 

(a) Representations
and Warranties; Covenants. (i) All of the representations and warranties of the Company contained in this Agreement
(considered collectively), and each of the representations and warranties (considered individually), shall be true and correct
as of the date of this Agreement and shall be true and correct in all material respects (except such representations as are qualified
by materiality which shall be true and correct in all respects) as of the Closing Date; and (ii) all of the covenants and agreements
contained in this Agreement to be complied with by the Company at or prior to the Closing (considered collectively), and each
of these covenants and obligations (considered individually) shall have been complied with in all material respects.

 

(b) No
Order or Proceedings. No Regulatory Authority shall have enacted, issued, promulgated, enforced, entered, proposed
or introduced any Legal Requirement or Governmental Order, and there shall have not commenced any legal proceeding or any threatened
proceeding, that has, or would have, the effect of making the transactions contemplated by this Agreement illegal or otherwise
restraining or prohibiting the consummation of such transactions.

 

(c) Deliveries. The
Company shall have delivered to the StemFit Parties each of the following:

 

(i) a certificate or certificates representing the Units;

 

(ii) a proprietary rights agreement in such form
as the Company may request;

 

(iii) such other documents as they may reasonable
requested in  connection with the transactions contemplated by this Agreement.

 

(d) Consents.
All consents, authorizations or approvals, in each case in form and substance reasonable satisfactory to the StemFit
Parties, shall have been obtained and no such consent, authorization, approval or arrangement shall have been revoked.

 

Section 6.2 Conditions
to Obligations of the Company. The obligations of the Company to consummate the transactions contemplated by this
Agreement shall be subject to the fulfillment or waiver, at or prior to the Closing, of each of the following conditions:

 

(a) Representations and Warranties;
Covenants. (i) All of the representations and warranties of the Company contained in this Agreement (considered collectively),
and each of the representations and warranties (considered individually), shall be true and correct as of the date of this Agreement
and shall be true and correct in all material respects (except such representations as are qualified by materiality, which shall
be true and correct in all respects) as of the Closing Date; and (ii) all of the covenants and agreements contained in this Agreement
to be complied with by either of them at or prior to the Closing (considered collectively), and each of these covenants and obligations
(considered individually), shall have been complied with in all material respects.

 

    	14

    	 

    

 

(b) No Order or Proceedings. No Regulatory
Authority shall have enacted, issued, promulgated, enforced, entered, proposed or introduced any Legal Requirement or Governmental
Order, and there shall not have commenced any legal proceeding or any threatened proceeding, that has, or would have, the effect
of making the transactions contemplated by this Agreement illegal or otherwise restraining or prohibiting the consummation of such
transactions.

 

(c) Deliveries. The
Company shall have delivered to the StemFit Parties each of the following:

 

(i) the
Assignment, Assumption and
Bill of Sale, duly executed by the Company;

 

(ii) such documents and instruments as may be necessary
to acknowledge indefinite usage of the Formula to the Company;

 

(iii) any forms required to comply with IRS reporting requirements;

 

(iv) a non-competition and
non-solicitation agreement, in the form attached as Exhibit B (the “Non-Compete
Agreement”), duly executed by the Company;

 

(v) such other documents as the Company may reasonably request
in connection with the transactions contemplated by this Agreement.

 

ARTICLE VII

TERMINATION AND WAIVER

 

Section 7.1 Termination. This
Agreement may be terminated at any time prior to the Closing:

 

(a) by the mutual written consent of the
parties hereto;

 

(b) by the StemFit Parties on the one hand
or the Company on the other if any Regulatory Authority with jurisdiction over such matters shall have issued a Governmental Order
restraining, enjoining or otherwise prohibiting the transactions contemplated hereby;

 

(c) by the StemFit Parties in the event of
a material breach by the Company of any representation, warranty or covenant contained herein that has not been cured with 15 Business
Days of receipt of written notice from them or is not capable of being cured; or

 

    	15

    	 

    

 

(d) by the Company in the event of a material
breach by the StemFit Parties of any representation, warranty or covenant contained herein that has not been cured with 15 Business
Days of receipt of written notice from the Company or is not capable of being cured.

 

Section 7.2 Effect
of Termination and Right to Proceed. In the event that this Agreement shall be terminated pursuant to Section 7.1,
all further obligations of the parties under this Agreement shall terminate without further Liability on the part of any party
(except as provided below). Notwithstanding anything contained herein to the contrary, included but not limited to, (a) no termination
of this Agreement pursuant to Section 7.1 shall relieve a party for Liability as a result of such party's breach of any representation,
warranty or covenant set forth in this Agreement or any duty or obligation relating hereto prior to such termination and (b) such
termination shall not constitute an election of remedies and the other parties may pursue whatever legal rights and remedies it
may have at law or in equity against such party by reason of such breach or non-fulfillment.

 

ARTICLE VIII

INDEMNIFICATION

 

Section 8.1 Survival.
All representations and warranties of the parties contained in this Agreement shall survive the Closing for a period of two (2)
years. Notwithstanding the first sentence of this Section 8.1, any expiration of the survival period pursuant to such sentence
shall not terminate or limit in any manner whatsoever any Damages any party has or may have for (i) fraud or (ii) knowing and
intentional misrepresentations and knowing and intentional breaches of any provision of this Agreement. Notwithstanding the above
provisions of this paragraph, any covenant, agreement, representation or warranty in respect of which indemnity may be sought
under Section 8.2 shall survive the time at which it would otherwise terminate pursuant to the above provisions if notice
of the inaccuracy or breach thereof giving rise to such right to indemnity shall have been given to the party against whom such
indemnity may be sought prior to such time and then only with respect to the claim specified in such notice.

 

Section 8.2 Indemnification.

 

(a) Subject to the provisions of this Article VIII,
the StemFit parties, jointly and severally, hereby indemnify the Company (including their officers, directors, employees, Related
Persons and agents) from and agree to hold the Company harmless against any and all losses, Liabilities, claims, damages and out-of-pocket
expenses (including reasonable legal expenses) (“Damages“) that the Company may suffer or incur insofar
as such Damages arise out of or are based upon (i) any Liabilities of either or both of them other than the Assumed Obligations,
(ii) the inaccuracy of any representation or warranty (or a third party claim that, if valid, would constitute an inaccuracy of
any representation or warranty) or (iii) a breach of any covenant or agreement made or to be performed by any of them; provided
that the Company shall give each of the StemFit Parties written notice in respect of such claim for Damages (“Claim”)
and if any such Claim shall have been made in writing by the Company prior to the termination of the applicable indemnification
obligation, such termination shall not affect the indemnification obligation in respect of the particular matter as to which such
Claim was made. It is expressly understood and agreed that the limitations on indemnification set forth in this Article
VIII shall not apply to any claim arising out of or based on fraud, knowing and intentional misrepresentations or knowing
and intentional breaches.

 

    	16

    	 

    

 

(b) Subject to the provisions of this Article
VIII, effective as of the Closing, the Company hereby indemnifies each of the StemFit parties (including each of their respective
officers, directors, employees, Related Persons and agents) from and agrees to hold them harmless against any and all Damages that
any of them may suffer or incur insofar as such Damages arise out of or are based upon the inaccuracy of any representation or
warranty (or a third party claim that if valid, would constitute an inaccuracy of any representation or warranty) or a breach of
any covenant or agreement made or to be performed by the Company; provided that they shall give the Company written notice
in respect of such Claim and if any such Claim shall have been made in writing by the StemFit Parties prior to the termination
of the applicable indemnification obligation, such termination shall not affect the indemnification obligation in respect of the
particular matter as to which such Claim was made. It is expressly understood and agreed that the limitations on indemnification
set forth in this Article VIII shall not apply to any claim arising out of or based on fraud, knowing and intentional misrepresentations
or knowing and intentional breaches.

 

Section 8.3 Procedure
for Indemnification. The respective indemnification obligations of the StemFit Parties on the one hand and the Company
on the other pursuant to Section 8.2 shall be conditioned upon compliance by the StemFit Parties on the one hand and the Company
on the other with the following procedures for Claims:

 

(a) The party seeking indemnification
under Section 8.2 (the “Aggrieved Party”) agrees to give notice in writing to the party(ies) from
whom indemnity is sought (the “Indemnifying Party”) of the assertion of any Claim or the commencement
of any suit, action or proceeding in respect thereof for which indemnity may be sought under Section 8.2. The Indemnifying Party
may participate in and control the defense of any third party suit, action or proceeding at its own expense, provided that
the Indemnifying Party agrees in writing to be responsible for the full amount of the Aggrieved Party's Damages attributable to
such suit, action or proceeding. Except as otherwise provided in Section 8.3(b), the Aggrieved Party shall not settle any
Claim in respect of which indemnity may be sought hereunder without the consent of the Indemnifying Party,

 

(b) If the Indemnifying
Party assumes the defense of any such Claim or action or proceeding in respect thereof, (i) it shall take all steps necessary
in the defense or settlement thereof and shall hold the Aggrieved Party harmless from and against any and all Damages caused by
or arising out of any settlement approved by the Indemnifying Party or any judgment rendered in connection with such Claim, action
or proceeding and (ii) the Aggrieved Party agrees to cooperate and make available to the Indemnifying Party all books and records
and such officers, employees and agents as are reasonably necessary and useful in connection with the defense. The Indemnifying
Party shall not, in the defense of such claim, action or proceeding, consent to the entry of any judgment or enter into any settlement,
except, in either event, with the prior consent of the Aggrieved Party unless the judgment or settlement (w) does not provide
for any remedy against the Aggrieved Party other than the payment of money, (x) the Indemnifying Party promptly pays all amounts
required thereunder, (y) includes as an unconditional term thereof the giving by the claimant or the plaintiff to the Aggrieved
Party of a release from all Liability in respect of such claim or litigation and (z) such judgment or settlement could not be
the basis of any claim or action by any third party (whether governmental or otherwise). If the Indemnifying Party assumes the
defense of any such Claim or action or proceeding in respect thereof, the Aggrieved Party will have the right to participate in
such litigation and to retain its own counsel at such Aggrieved Party's own expense.

 

    	17

    	 

    

 

(c) If the Indemnifying
Party does not assume the defense of any such Claim, action or proceeding, the Indemnifying Party agrees to (i) cooperate and make
available to the Aggrieved Party (A) all such books and records that are in the possession or control
of the Indemnifying Party and (B) such officers, employees and agents of the Indemnifying
Party that are reasonably necessary and useful in connection with the defense and (ii) promptly grant consent to any reasonable
settlement.

 

 

ARTICLE IX

MISCELLANEOUS

 

Section
9.1 No Third-Party Beneficiaries. Nothing expressed or mentioned in this Agreement
is intended or shall be construed to give any Person other than the parties hereto and their respective heirs, permitted successors,
permitted assigns or legal representatives any legal or equitable right, remedy or claim in respect of this Agreement or any provision
herein contained, except to the extent expressly provided in this Agreement.

 

Section 9.2 Amendment; Waiver.

 

(a) This Agreement may not be amended, modified,
supplemented or restated, nor may any provision of this Agreement be waived, other than through a written instrument adopted, executed
and agreed to by the parties hereto.

 

(b) A waiver
or consent, express or implied, to or of any breach or
default by any party hereto in the performance by such party of its obligations hereunder is not a consent or waiver to or of any
other breach or default in the performance by such party of the same or any other obligations of such party hereunder. Failure
on the part of any party hereto to complain of any act of any other party hereto or to declare any other party hereto in default
hereunder, in respective of how long that failure continues, does not constitute a waiver by such party of its rights with respect
to that default until the applicable statute-of-limitations period has run.

 

Section 9.3 Further Assurances. In connection
with this Agreement and the transactions contemplated hereby, each party hereto shall execute and deliver all such future
instruments and take such further action as may be reasonably necessary or appropriate to carry out the provisions of this
Agreement and the intention of the parties as expressed herein. Without limiting the foregoing, if any of the Assets is not
assignable, or if the Company is not vested with good title to any of the Assets, for any reason, the parties hereto shall
cooperate with each other in any reasonable and lawful arrangements designed to provide the Company with the benefits and
burdens of such Asset (/or any right, benefit, obligation or duty arising thereunder, including the enforcement for the
benefit of the Company of any and all rights of the Stemfit Parties against a third party thereunder), notwithstanding the
provisions of this agreement as otherwise delineated.

 

 

    	18

    	 

    

 

(a) All notices, requests or consents provided
for or required to be given hereunder shall be in writing and shall be deemed to be duly given if personally delivered or mailed
by certified mail, return receipt requested, or nationally recognized overnight delivery service with proof of receipt maintained,
to the address that any such party may designate by written notice to the other parties:

 

(i) if to the Company, to the following address:

 

Odyssey Group
International, Inc.

4262 Diamond Rd., Suite 102-281

Las Vegas, NV 89139

Tel: (702) 751-1418

Fax:

 

with a copy (which shall not constitute
notice) to:

 

Wilson & Oskam , LLP

9110 Irvine Center Drive

Irvine, CA 92618

Attention: Christopher Wilson, Esq.

Tel: (949) 752-1100 ext. 302

Fax: (949) 752-1144

 

Any such notice shall, if delivered personally,
be deemed received upon delivery; shall, if delivered by certified mail, be deemed received upon the earlier of actual receipt
thereof or five Business Days after the date of deposit in the United States mail, as the case may be; and shall, if delivered
by nationally recognized overnight delivery service, be deemed received the first Business Day after the date of deposit with the
delivery service.

 

(b) Whenever any notice is required to be given
by any Legal Requirement or this Agreement, a written waiver thereof, signed by the party entitled to notice, whether before or
after the time stated therein, shall be deemed equivalent to the giving of such notice.

 

Section 9.5 Specific Performance. Each
party acknowledges that the other parties would be irreparably damaged if any of the provisions of this Agreement are not
performed in accordance with their specific terms, and that any MATERIAL breach of this Agreement by such party could not be
adequately compensated in all cases by monetary damages alone. Therefore, to assure the other parties that they will obtain
the bargained-for benefits of this Agreement, such party, in addition to any other right or remedy to which it may be
entitled, shall also be entitled to obtain injunctive relief, including a decree of specific performance, and to obtain
temporary, preliminary and permanent injunctive relief to enforce the provisions of this Agreement, without posting any bond
or other undertaking and without the necessity of proving actual damages, except to the extent required by any court of
competent jurisdiction.

 

    	19

    	 

    

 

Section 9.6 Entire
Agreement; Supersedure. This Agreement, the other Transaction Documents and any other writings referred to herein or delivered
pursuant hereto, constitutes the entire agreement among the parties hereto with respect to the subject matter hereof and supersedes
all prior contracts, agreements and understandings, whether oral or written, among the parties with respect to the subject matter
hereof.

 

Section 9.7 Governing Law; Venue.

 

(a) THIS AGREEMENT IS GOVERNED BY AND SHALL
BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA, WITHOUT REGARD TO THE CONFLICTS OF LAW PRINCIPLES OF SUCH
STATE.

 

(b)
The parties hereto hereby irrevocably submit to the exclusive jurisdiction of the courts of the State of California and the federal
courts of the United States of America located in California, and appropriate appellate courts therefrom, over any dispute arising
out of or relating to this Agreement or any of the transactions contemplated hereby, and each party hereby irrevocably agrees
that all claims in respect of such dispute or proceeding may be heard and determined in such courts. The parties hereby irrevocably
waive, to the fullest extent permitted by applicable Law, any objection that they may now or hereafter have to the laying of venue
of any dispute arising out of or relating to this Agreement or any of the transactions contemplated hereby brought in such court
or any defense of inconvenient forum for the maintenance of such dispute. Each of the parties hereto agrees that a judgment in
any such dispute may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by Law. This consent
to jurisdiction is being given solely for purposes of this Agreement and 1s not intended to, and shall not, confer consent to
jurisdiction with respect to any other dispute in which a party to this Agreement may become involved. Each of the parties hereto
hereby consents to process being served by any party to this Agreement in any suit, action or proceeding of the nature specified
in this subsection (b) by the mailing of a copy thereof in the manner specified by the provisions of Section 9.4. EACH
OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT.

 

Section 9.8 Severability.
If any provision of this Agreement is held to be illegal, invalid or unenforceable under present or future Legal Requirements
effective during the term of this Agreement, such provision shall be fully severable; this Agreement shall be construed and enforced
as if such illegal, invalid or unenforceable provision had never comprised a part of this Agreement; and the remaining provisions
of this Agreement shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision
or by its severance from this Agreement. Furthermore, in lieu of each such illegal, invalid or unenforceable provision, there
shall be added automatically as a part of this Agreement a provision as similar in terms to such illegal, invalid or unenforceable
provision as may be possible and be legal, valid and enforceable.

 

    	20

    	 

    

 

Section 9.9 Waiver of Punitive and Exemplary
Damage Claims. EACH PARTY, BY EXECUTING THIS AGREEMENT, WAIVES, TO THE FULLEST EXTENT ALLOWED BY LAW, ANY CLAIMS TO RECOVER
PUNITIVE, EXEMPLARY OR SIMILAR DAMAGES NOT MEASURED BY THE PREVAILING PARTY’S ACTUAL DAMAGES IN ANY DISPUTE OR CONTROVERSY ARISING
UNDER, RELATING TO OR IN CONNECTION WITH THIS AGREEMENT, INCLUDING BUT NOT LIMITED TO, ANY ARBITRATION PROCEEDING.

 

Section 9.10 Fees
and Expenses. Except as otherwise expressly provided in this Agreement, all fees and expenses incurred in connection with
this Agreement and the transactions contemplated herein, shall be paid by the party incurring such expense; provided, however,
that in any action or proceeding brought by one party hereto against the other party(ies) hereto in connection with this Agreement,
the reasonable, documented out-of-pocket fees and expenses (including without limitation reasonable attorneys' fees) of the prevailing
party in such action or proceeding shall be paid by the losing party.

 

Section 9.11 Headings. The descriptive
headings used herein are inserted for convenience of reference only, do not constitute a part of this Agreement, and shall not
affect in any manner the meaning or interpretation of this Agreement.

 

Section 9.12 Counterparts. This
Agreement may be executed in any number of counterparts (including facsimile counterparts), all of which together shall constitute
a single instrument.

 

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

 

 

	 	ODYSSEY GROUP INTERNATIONAL, INC.
	 	 
	 	 
	 	By:	 /s/ James Short
	 	 	 
	 	Title: 	CFO/Secretary

 

 

 

 

SIGNATURE PAGE TO CONTRIBUTION AGREEMENT

 

 

    	21

    	 

    

 

 

	 	MARKET GROUP INTERNATIONAL, INC.
	 	 	 
	 	By:	/s/ Robert VanBoren
	 	 	 
	 	Title:	 
	 	 	 
	 	 	 
	 	ECO SCIENTIFIC, INC.
	 	 	 
	 	By:	/s/ Steven Miller
	 	 	 
	 	Title:	 
	 	 	 
	 	 	 
	 	ADWIN, INC.
	 	 	 
	 	By:	/s/ Pablo Penaloza
	 	 	 
	 	Title:	 
	 	 	 
	 	 	 
	 	REGAL GROWTH, LLC
	 	 	 
	 	By:	/s/ William Reininger
	 	 	 
	 	Title:	 

 

 

 

 

SIGNATURE PAGE TO CONTRIBUTION AGREEMENT
(CONTINUED)

    	22

    	 

    

 

Exhibit A

 

Exhibit B

 

Form of Non-Compete Agreement

 

Exhibit C

 

Exhibit DEX-10.1

 Exhibit 10.1 

DISTRIBUTOR AGREEMENT 

 CONTENTS 
  

							
	1.		 DEFINITIONS
		 	3	  
			
	2.		 APPOINTMENT AND DURATION
		 	5	  
			
	3.		 GENERAL OBLIGATIONS OF THE DISTRIBUTOR
		 	5	  
			
	4.		 SERVICE RESPONSIBILITIES OF THE DISTRIBUTOR
		 	9	  
			
	5.		 DIRECT SUPPLY
		 	10	  
			
	6.		 SPECIFIED PREMISES
		 	10	  
			
	7.		 IMPROVEMENTS TO PRODUCTS
		 	11	  
			
	8.		 COMPANY RESPONSIBILITIES
		 	11	  
			
	9.		 AUTHORISED DEALERS
		 	12	  
			
	10.		 INSPECTIONS, REPORTS AND PROCEDURES
		 	12	  
			
	11.		 ORDERING PROCEDURES, CONDITIONS OF SALE AND PRICES
		 	13	  
			
	12.		 DISTRIBUTOR’S CONDITIONS OF PURCHASE AND SALE
		 	14	  
			
	13.		 TERMS AND METHOD OF PAYMENT
		 	14	  
			
	14.		 CHANGES TO AGREEMENT
		 	15	  
			
	15.		 CHANGES IN SPECIFICATIONS
		 	15	  
			
	16.		 ENQUIRIES
		 	15	  
			
	17.		 CONFIDENTIALITY
		 	15	  
			
	18.		 RELATIONSHIP BETWEEN THE PARTIES
		 	16	  
			
	19.		 ASSIGNMENT AND TRANSFER
		 	17	  
			
	20.		 TERMINATION
		 	17	  
			
	21.		 RESULTS OF TERMINATION
		 	18	  
			
	22.		 WAIVER OF DEFAULT AND GENERAL LIABILITY
		 	19	  
			
	23.		 GENERAL
		 	20	  
		
	SCHEDULE 1: DISTRIBUTOR TERRITORY		 	23	  
		
	SCHEDULE 2: TERMS AND METHOD OF PAYMENT		 	24	  

  
 2 

 THIS AGREEMENT is made the 1st day of January 2015 

BETWEEN  
 Perkins Engines Company Limited
of Eastfield, Frank Perkins Way, Peterborough, PE1 5FQ, England (hereinafter called “the Company”) 
 AND 

Power Great Lakes, a division of Power Solution International Inc. of 201 Mittel Drive Wood Dale, Illinois 60191 (hereinafter called “the
Distributor”) and collectively referred to as “the Parties” or individually “the Party”. 
 WHEREAS 

 

	(A)	The Company desires to secure sales, support and servicing of its products in the territory as hereinafter defined and the Distributor wishes to take on the responsibilities of a Company distributor in that territory.

  

	(B)	Therefore the Parties have agreed that the Company will appoint the Distributor on the terms hereinafter set out. 

NOW IT IS AGREED as follows: 
 1. DEFINITIONS 

 

	 	1.1	In this Agreement unless the context otherwise requires the following expressions bear the following meanings: 

“Agreement” means this Agreement, its Schedules and any other documents specifically referenced herein; 

“Authorised Dealers” means persons appointed by the Distributor as dealers in the Territory pursuant to Article 8 hereof;

 “Commencing Date” means 1 January 2015; 

“Competing Item” means any goods of similar description to or which in the Company’s reasonable opinion are competitive
with any of the Products including but not limited to any Distributor remanufactured Product; 
 “Parts” means parts,
assemblies, sub-assemblies and components (including proprietary items except as otherwise agreed) supplied by the Company or a Perkins Supplying Company for use as replacements in Perkins Engines; 

  
 3 

 “Perkins Engines” means each of those types of Perkins branded engine (new or
reconditioned) which are from time to time designated by the Company to the Distributor for application to the agricultural, vehicle, and industrial sectors 

“Perkins Group” means collectively Perkins Engines Company Limited and each of those companies falling within the definition
of a “subsidiary” of the ultimate “holding company” of Perkins Group Ltd as defined in section 1159 of the Companies Act 2006; 

“Perkins Standards” means those standards of business performance issued and produced by the Company from time to time
applicable to all its distributors; 
 “Perkins Supplying Companies” means either the Company or those entities designated
by the Company to accept orders from the Distributor including but without limitation to Perkins Engines Inc.; 
 “Price
List” means the price list issued by the Company on behalf of Perkins Supplying Companies during the term hereof and notified to the Distributor; 

“Products” means Perkins Engines and/or Parts; 

“Specified Premises” means those premises which are from time to time agreed by the parties in writing and from which the
Distributor shall carry out its sales and/or service obligations hereunder; Specified Premises shall expressly exclude any premises owned or occupied by Authorised Dealers unless otherwise agreed by the Company; 

“Territory” means North Dakota, South Dakota, Minnesota, Wisconsin, Iowa, Michigan, Ohio, Indiana, Illinois, Missouri,
Nebraska, Kansas, Pennsylvania, New Jersey, Delaware, Maryland (including Washington, District of Columbia), West Virginia, New Hampshire, Vermont, Massachusetts, Maine, Rhode Island, Connecticut, New York as more specifically described in Schedule
1 of this Agreement; 
 “Trade Mark Agreement” means the licence on the agreed terms entered into by the Parties on the
date of this Agreement; and 
 “UK” means the United Kingdom of Great Britain and Northern Ireland, the Channel Islands and
the Isle of Man. 
  

	 	1.2	The headings in this Agreement are for convenience only and shall not affect its construction or interpretation. 

  

	 	1.3	Words signifying the singular shall include the plural and vice versa where the context so admits. 

  
 4 

 2. APPOINTMENT AND DURATION 
  

	 	2.1	Subject to the terms hereof the Company appoints the Distributor, on a non-exclusive basis, as its Distributor for the Territory and the Distributor accepts such appointment. 

 

	 	2.2	The Distributor’s appointment shall be deemed to have commenced on the Commencing Date. 

  

	 	2.3	Unless sooner terminated under the provision of Article 3.11 or 20 hereof, this Agreement shall remain in force for an initial period of 3 years from the Commencing Date. It shall continue in force thereafter until
terminated by either Party giving to the other at least 6 months prior written notice of termination to expire at the end of such initial period or at any time thereafter. 

3. GENERAL OBLIGATIONS OF THE DISTRIBUTOR 
  

	 	3.1	The Distributor acknowledges that it has been entrusted with considerable responsibility for developing and exploiting the business potential for the Products in the Territory. The Distributor undertakes diligently to
discharge such responsibility in the interests of optimising sales and service of the Products in the Territory. In particular the Distributor agrees at all times and at its own expense except as provided in Articles 3.1.4 and 8.2 below:

  

	 	3.1.1	To use all reasonable endeavours to give full and proper representation of the Products throughout the Territory; 

  

	 	3.1.2	To identify, promote and realise opportunities for supply of the Products in the Territory; 

  

	 	3.1.3	To publicise the Distributor’s appointment as an authorised Perkins Distributor within the Territory such publicity to include the use of prominent signs at the Specified Premises and on the Distributor’s
service and parts vehicles, which signs shall conform strictly to designs and specifications from time to time laid down by the Company; 

  

	 	3.1.4	 To advertise and promote interest in the Products in the Territory in an extensive and effective manner. This shall include (but shall not be limited
to) the use of local communications media and exhibition or display facilities and have due regard to such advice on 

  
 5 

	 	
advertising policy as may from time to time be issued by the Company. The Distributor may, with the Company’s prior written consent, exhibit and be involved in exhibiting any of the Products
at any exhibition and take part in, support or be involved in competitions, competitive trials or demonstrations of the Products. The Distributor shall upon the Company’s reasonable request withdraw at its own expense any particular
advertisements, catalogues, sales literature or other printed matter relating to the Products; 

  

	 	3.1.5	To provide service training courses in line with appropriate Company guidelines in respect of the Products within the Territory; 

  

	 	3.1.6	To distribute current sales and service literature supplied by the Company in respect of the Products throughout the Territory; and 

  

	 	3.1.7	To maintain adequate Products in stock in accordance with Article 4.3 and ensure that they are available for supply to customers. 

  

	 	3.2	For the avoidance of doubt, this Article 3 is without prejudice to the Trade Mark Agreement and the Distributor shall perform its obligations under this Agreement strictly in accordance with the terms of the Trade Mark
Agreement. If there is any inconsistency or conflict between the terms of this Agreement and the Trade Mark Agreement in relation to the use of the licensed Perkins trademarks as defined therein, the provisions of the Trade Mark Agreement shall
prevail. 

  

	 	3.3	The Distributor shall perform its obligations hereunder in accordance with the business plan agreed by the parties. The plan shall include the following information for a projected one-year and/ or longer period, as
appropriate: 

  

	 	3.3.1	the Distributor’s marketing objectives, including sales and penetrations; and 

  

	 	3.3.2	the resources and facilities required to achieve its objectives. 

  

	 	3.4	The Parties shall review the plan at least annually and agree a revised plan following each such review. 

  

	 	3.5	The Distributor shall, unless otherwise agreed in writing by the Company, purchase from the Company or Perkins Supplying Companies or another Perkins distributor all of its requirements for the Products whether for
supply to Authorised Dealers or to other entities requiring the same for use within the Territory. 

  
 6 

	 	3.6	Subject to Articles 3.5 and 3.7 the Distributor shall not without the Company’s prior written consent: 

  

	 	3.6.1	hold any Competing Item in stock in the Territory; or 

  

	 	3.6.2	solicit or be directly or indirectly engaged or interested in soliciting orders in the Territory for any Competing Item; or 

  

	 	3.6.3	supply or be directly or indirectly engaged or interested in the supply in the Territory of any Competing Item. 

  

	 	3.7	The prohibition contained in Article 3.6 above shall not in any way preclude the Distributor from: 

  

	 	3.7.1	holding in stock, supplying or advertising for supply other products (which are not Competing Items) manufactured or purchased by the Distributor in the ordinary course of its business. These products may include those
Perkins Engines as an integral and subsidiary part or in which Perkins Engines are installed; or 

  

	 	3.7.2	servicing or remanufacturing engines other than Perkins Engines and holding in stock, supplying and advertising for supply parts for the purpose of such servicing or remanufacture, provided that in the reasonable
opinion of the Company, the Distributor’s performance as a distributor of Products is not adversely affected by such activity. 

  

	 	3.8	The Distributor shall not, without the Company’s prior written consent, solicit outside the Territory customers for any of the Products, nor for the purpose of delivery of the same establish branches or warehouses
outside the Territory, nor advertise any of the Products outside the Territory. This shall not prevent the Distributor from advertising in a publication in circulation both within and outside the Territory. 

 

	 	3.9	The Distributor shall comply in all respects with the Perkins Standards with regard to its activities hereunder to the extent that such standards have been notified in writing to the Distributor. 

 

	 	3.10	The Distributor shall ensure so far as is reasonably practicable that: 

  

	 	3.10.1	the Perkins Engines supplied by it or its Authorised Dealers are installed and applied by customers in accordance with the limitations and specifications laid down by the Company; 

  
 7 

	 	3.10.2	the purchaser of the Perkins Engines is fully aware of and properly instructed in all aspects of the operation and maintenance thereof; 

 

	 	3.10.3	it shall make available to a prospective purchaser all brochures, booklets and other literature and information provided by the Company and which the Company designates as intended for such users. 

 

	 	3.11	The Distributor represents and warrants that it has read, understands, and has been in compliance, and agrees that it shall comply, with all applicable laws, rules, regulations, directives, ordinances, orders, or
statutes (collectively, the “Laws”), including, but not limited to, the UK Bribery Act 2010, the U.S. Foreign Corrupt Practices Act and any applicable anti-bribery Laws of other countries, the UK Export Control Regulations, the U.S. Export
Administration Regulations, the International Traffic in Arms Regulations, and any applicable sanctions regulations including but not limited to the sanctions regulations administered by the U.K. Department for Innovation, Business and Skills (BIS)
and the U.S. Treasury Department Office of Foreign Assets Control. 

 Further, Distributor represents and warrants that it has
not acted, will not act, and has not and will not cause, directly or indirectly, any other party to act, in any manner that would cause Company, or any of its affiliates or persons employed by Company, to violate the Laws. Upon Company’s
request, Distributor shall at its expense provide to Company in a timely manner any and all material, documentation, information, data, or certification(s) regarding Distributor’s compliance with the Laws and this Article 3.11. 

If Company has reason to believe that Distributor is not in compliance with the Laws or this Article 3.11, Company reserves the right to
audit, or to have Company’s authorised representatives conduct audits, to ascertain the extent of Distributor’s non-compliance with the Laws and this Article. Distributor agrees to indemnify, defend, and hold harmless Company,
Company’s affiliates, and Company’s and Company’s affiliates’ respective directors, officers, employees, agents, successors, and assigns, against demands, liabilities, fines, penalties, losses, and damages (including costs,
investigation and litigation expenses and counsel fees incurred in connection therewith) arising out of or related to Distributor’s obligations under this Article 3.11. In the event of any enforcement action against Distributor relating to
Distributor’s non-compliance with the Laws that reasonably relate to Distributor’s performance under this Agreement, Distributor shall provide to Company written notice of such enforcement action prior to any publication or disclosure of
such enforcement action, and in no event later than ten (10) business days following such enforcement action. 

  
 8 

 In the event of a change to the Laws or a significant change to the Company’s policy which
at the Company’s sole discretion negatively impacts the Company’s ability pursuant to this Agreement to perform its obligations to Distributor, Company shall be entitled to suspend deliveries to, refuse orders from Distributor and or serve
notice to terminate this Agreement during the initial period as defined in Article 2.3 or any time after the initial period. 
 4. SERVICE
RESPONSIBILITIES OF THE DISTRIBUTOR 
  

	 	4.1	Subject to the proviso in Article 4.4 below, the Distributor shall provide a repairs and warranty service for the Products (whether or not supplied by the Distributor) in the Territory. It shall also carry out repairs
to the Products to a standard of workmanship acceptable to the Company. It shall also provide a warranty service for all Products in accordance with the procedures from time to time laid down by the Company either in the Perkins Service Warranty
Manual (as supplied and updated by the Company from time to time) or in notices issued by the Company and notified in writing to the Distributor. 

  

	 	4.2	The Distributor undertakes to the Company that it shall at all times comply with the provisions of the law in force in the Territory from time to time including but not limited to that regarding warranty and the
provision of technical and essential health and safety literature which provisions shall prevail in the event of any conflicts with the Perkins requirements. 

  

	 	4.3	The Distributor shall ensure that it maintains adequate resources including personnel, equipment and facilities and stocks to perform its obligations hereunder. 

 

	 	4.4	The Distributor shall also provide a repair and warranty service as specified in Article 4.1 above for Products in the Territory which have been: 

 

	 	4.4.1	Supplied by the Company or any other member of the Perkins Group direct to an entity within or outside the Territory; or 

  

	 	4.4.2	Incorporated in or attached to original equipment manufactured or assembled within or outside the Territory. 

However the above obligation will not apply where Products are subject to a separate repair and warranty service agreement between the
original equipment manufacturer (“OEM”) and the Company. 

  
 9 

	 	4.5	The Distributor shall be paid for the provision of the repairs and warranty services provided under Articles 4.1 and 4.4 above in accordance with the pricing schedules contained in the Perkins Service Warranty Manual
referred to in Article 4.1. 

 5. DIRECT SUPPLY 
  

	 	5.1	The Distributor acknowledges that the terms of this Agreement do not in any way limit the right of the Company for itself, the companies within the Perkins Group and their licensees the right at all times to supply
Products direct to any entity in the Territory, including but not limited to: 

  

	 	5.1.1	any central, local or municipal government authorities or departments or state owned or controlled organisations; 

  

	 	5.1.2	OEM’s wishing to incorporate the Products in their own product line; 

  

	 	5.1.3	recognised export houses within the Territory whose main purpose is to re-export the Products outside the Territory; 

  

	 	5.1.4	as provided in Article 21.4 below. 

 The Company shall notify the Distributor in writing and,
where time permits, consult the Distributor where it decides to exercise this right. 
  

	 	5.2	The Distributor shall promptly notify the Company of any opportunity for supply of the Products within the Territory which it considers likely to be advanced by the direct intervention or support of the Company or other
members of the Perkins Group or its licensees. 

  

	 	5.3	The Company shall have no liability to the Distributor where any of the Products are brought into the Territory by reason of the direct supply of Products by the Company to any entity in the Territory.

 6. SPECIFIED PREMISES 
  

	 	6.1	The Distributor shall install by a date agreed with the Company and thereafter maintain in full working order adequate equipment and facilities in accordance with Article 4.3 at each of the Specified Premises.

  
 10 

	 	6.2	The Distributor shall take out and maintain throughout its appointment insurances sufficient for the Specified Premises, the Products held thereon and all work in progress relating to its activities. Certificates of
insurance shall be provided to the Company within a reasonable period of time after its request. 

  

	 	6.3	The Distributor shall be able to use the Specified Premises for purposes other than its activities hereunder, provided that such alternative uses do not in any way affect the extent and standard of its performance
hereunder. The Company shall be entitled to its absolute discretion to require the Distributor to take appropriate remedial action where it reasonably believes the Distributors performance has been or is likely to be materially affected by such
alternative uses. 

  

	 	6.4	The Distributor shall notify the Company in writing of its intention either to reduce the facilities available within the Specified Premises or to effect any significant alteration in the land or buildings comprising
the Specified Premises, and consult with the Company prior to taking any action. 

 7. IMPROVEMENTS TO PRODUCTS 

The Distributor shall notify the Company forthwith in writing of all particulars of any improvement applicable to any Products (whether patentable or not) that
it discovers or which comes to its or its Authorised Dealer’s attention during the term hereof. In any such case the Parties shall actively consider how and on what terms such improvements may be made available to the Company, and any other
member of the Perkins Group or its licensees. 
 8. COMPANY RESPONSIBILITIES 

 

	 	8.1	The Company shall support the Distributor’s performance hereunder by both providing those facilities and services and carrying out its obligations all as detailed herein in an efficient, professional and timely
manner. 

  

	 	8.2	The Company will from time to time and where possible in advance, notify the Distributor in writing as to the extent to which the Company will in any one year reimburse to the Distributor expenses incurred by the
Distributor in discharge of its obligations under Article 3.1.4 above. The Company shall not be obliged to make reimbursement of any expenses so incurred except to the extent notified by the Company. 

 

	 	8.3	The Company will actively continue to seek ways of improving the services provided to the Distributor and thus enhancing the value of this Perkins’ distributorship. 

  
 11 

	 	8.4	The Company shall, notwithstanding the general policy as stated in Article 11.4 below, endeavour to adjust and maintain its prices for the Products to be competitive with those of most major competitors for their own
comparable products. 

  

	 	8.5	The Company shall as soon as is reasonably practicable notify the Distributor in writing of any additions, deletions or modifications from time to time made to the Perkins Standards, its standard terms and conditions of
purchase and sale, the Perkins Service Procedure Manual and its Price Lists as far as they relate to this Agreement. 

 9. AUTHORISED
DEALERS 
  

	 	9.1	The Distributor shall have the right to appoint Authorised Dealers within the Territory for the purpose of providing proper representation throughout the Territory for the supply and servicing of Products, subject to
the following provisions: 

  

	 	9.1.1	the Distributor shall consult with the Company prior to appointing any Authorised Dealer; 

  

	 	9.1.2	the appointment of Authorised Dealers shall automatically terminate upon termination of this Agreement; 

  

	 	9.1.3	the Distributor shall ensure that the Company’s authorised representatives shall be permitted access to the premises of Authorised Dealers for the purposes described in Article 10.1.2. 

 

	 	9.2	The Distributor shall remain solely liable to the Company for its performance hereunder, notwithstanding its appointment of any Authorised Dealers. 

10. INSPECTIONS, REPORTS AND PROCEDURES 
  

	 	10.1	The Distributor shall: 

  

	 	10.1.1	Instigate and maintain an accurate system of engine and parts stock control, workshop control and job card system; 

  

	 	10.1.2	permit the Company’s authorised representatives to have access to the Specified Premises at any time during normal business hours to inspect the equipment installed and the work carried out in connection with the
maintenance and repair of the Products, and to inspect and check the Distributor’s stock of Products and the stock records applicable thereto; 

  
 12 

	 	10.1.3	deliver to the Company a written monthly report stating its stocks, sales and estimates of future requirements for the Products; 

  

	 	10.1.4	establish and maintain procedures for: 

  

	 	(a)	registering supplies of the Products; 

  

	 	(b)	dealing with warranty claims; 

  

	 	(c)	regulating any other matters in connection with the supply and servicing of the Products, such procedures to ensure compliance with the relevant Perkins Standards; 

 

	 	10.1.5	submit a copy of the Distributor’s annual audited accounts, (if the Distributor is required to submit any such accounts to the Registrar of Companies or to any similar statutory body in its country of registration)
not later than 6 months either from the end of the financial year to which such accounts relate or from the end of each calendar year during the term hereof, whichever is earlier; 

 

	 	10.1.6	submit to the Company such financial and other information as the Company may reasonably require (including profit and loss accounts and operating expenses); 

 

	 	10.1.7	report in writing immediately to the Company full details of any material change or proposed change occurring either in the Distributor’s constitution, management or control, or that of any company under the same
ultimate direction, management or control as itself which handles Competing Items. 

 11. ORDERING PROCEDURES, CONDITIONS OF SALE AND
PRICES 
  

	 	11.1	Orders for Products required by the Distributor shall be placed by the Distributor with such Perkins Supplying Company as the Company may from time to time designate for the purpose. 

 

	 	11.2	Each order addressed to a Perkins Supplying Company may be accepted or (upon giving to the Distributor reasons for such rejection) rejected by that Perkins Supplying Company. No order placed will be deemed accepted
until a formal acceptance has been despatched to the Distributor by the relevant Perkins Supplying Company which is accepting the Order or until delivery of the Products has been made. 

  
 13 

	 	11.3	Each order placed on and accepted by a Perkins Supplying Company as per Article 11.2 will (whether or not expressly stated in the order or acceptance) be deemed to have been so accepted subject to the standard
Conditions of Sale (including warranty) of the Perkins Supplying Company current at the time of acceptance of such order to the extent that such conditions have been previously notified to the Distributor in writing. 

 

	 	11.4	Prices for the Products shall be those specified in the Price List current at the date of delivery by the Perkins Supplying Company. Prices as stated in the Price List shall be determined by the Perkins Supplying
Company at its absolute discretion. Unless the contrary is stated in the Price List the cost of packing, transport and insurance will be payable as an addition to the price of the Products. 

 

	 	11.5	The Distributor shall be solely responsible for all fiscal, tax, customs duties, fees and other charges howsoever arising out of its orders on the Company for Products. 

12. DISTRIBUTOR’S CONDITIONS OF PURCHASE AND SALE 
  

	 	12.1	Any and all terms of business stated on any Distributor originated orders or other related documentation and passing between the Parties (including any Perkins Supplying Companies) are hereby expressly excluded and
superseded by those terms referred to in Article 11.3 above. 

  

	 	12.2	In supplying Products acquired by the Distributor from the Company, the Distributor shall ensure that the purchaser of the Products is provided with a warranty no less favourable to the purchaser than the warranty given
to the Distributor by the Company and in accordance with the law in force in the Territory from time to time. 

 13. TERMS AND METHOD OF
PAYMENT 
  

	 	13.1	The Distributor acknowledges that its obligation to make payment strictly in accordance with the agreed programme and terms of payment for each order is a fundamental obligation of this Agreement and each such order.

  

	 	13.2	The detailed terms and method of payment applicable to all purchases of Products by the Distributor hereunder shall be those set out in Schedule 2. 

  
 14 

 14. CHANGES TO AGREEMENT 

For any amendment to this Agreement or any part thereof to be valid and binding on the Parties, it must be reduced to writing and signed by authorised
representatives of each Party. 
 15. CHANGES IN SPECIFICATIONS 
  

	 	15.1	The Company may make modifications to the design of or fitments to any of the Products or make improvements to them at any time. The Company shall be under no obligation to apply the same to any of the Products
previously purchased by the Distributor except on such occasions as the Company deems it necessary to initiate a campaign to rectify known product defects. 

  

	 	15.2	The Company reserves the right to discontinue the manufacture of any of the Products without incurring any obligation or liability to the Distributor. In such cases the Company will promptly notify the Distributor and
will use all reasonable endeavours to do so at least six months prior to discontinuing manufacture. 

  

	 	15.3	The Distributor agrees, except with the prior approval of the Company, not to make any modifications to or in any material way vary, the specification of Products supplied to it by the Company or Perkins Supplying
Companies or to be repaired or serviced by it. 

 16. ENQUIRIES 

 

	 	16.1	If the Company refers enquiries to the Distributor for the repair, servicing or supply of the Products within the Territory, the Distributor shall as and when reasonably required by the Company report upon progress in
respect of such enquiries. 

  

	 	16.2	In order to aid the Company’s monitoring of its distributors’ performance, the Distributor shall keep the Company advised of enquiries relating to the Products which it receives either from persons outside the
Territory or from persons (other than OEMs) situated in the Territory who intend to resell the Products outside the Territory. 

 17.
CONFIDENTIALITY 
  

	 	17.1	 Where either Party discloses to the other any information, data or drawings (whether visually, orally, in writing or in machine readable form) -
“Information” - then, to the extent the originating Party specifically marks or identifies such Information as confidential, the receiving Party shall treat it as confidential and

  
 15 

	 	
shall not disclose the same to any third party without the prior written consent of the originating Party. The receiving Party may only use the Information for the purposes hereof and shall
ensure that only those of its employees with a need to know actually receive it. The receiving Party shall be solely liable to the originating Party for the acts and omissions of its employees in this respect. 

 

	 	17.2	The above obligations shall not apply where the receiving Party can show that the Information is: 

  

	 	17.2.1	in or comes into the public domain at any time otherwise than through a breach by either Party of any of its obligations hereunder, or is made available to the general public without restrictions by the originating
Party; 

  

	 	17.2.2	known to the receiving Party at the time of disclosure or is independently developed by it or its employees without reference to or use of the disclosed Information; 

 

	 	17.2.3	received from a duly entitled third party without restriction and without breach of these terms; 

  

	 	17.2.4	required to be disclosed pursuant to applicable law, government authority, duly authorised subpoena, or court order, in which case the receiving Party will provide prompt notice to the originating Party and endeavour to
give the originating Party an opportunity to respond prior to such disclosure. 

  

	 	17.3	At any time during the term hereof or upon termination hereof howsoever caused, the originating Party may require the receiving Party to return all Information disclosed to it. 

 

	 	17.4	The above obligations of Article 17 shall survive the termination of this Agreement for a period of 5 years. 

18. RELATIONSHIP BETWEEN THE PARTIES 
  

	 	18.1	The Distributor agrees it is not and shall not represent itself to be an agent of the Company or any member of the Perkins Group or its licensees for any purpose and shall not incur any obligations nor make any promise
or representation on behalf of the same. 

  

	 	18.2	This Agreement does not in any way create an employer/employee relationship between the Company or any member of the Perkins Group and the Distributor and/or the Distributor’s employees. 

  
 16 

	 	18.3	The Distributor shall be solely responsible for the discharge of its obligations and liabilities to third parties and shall have no right to indemnity or contribution from the Company or any member of the Perkins Group
in respect thereof, except insofar as expressly provided herein or in the Company’s warranty as from time to time current. 

  

	 	18.4	The Distributor acknowledges that, save for the licence granted under the Trade Mark Agreement, it does not have any right, title or interest in any intellectual property owned by the Company or any member of the
Perkins Group. 

 19. ASSIGNMENT AND TRANSFER 

This Agreement shall be binding on the Parties hereto. It is personal to the Distributor who may not assign, transfer or sublet the whole or any part of it
without the Company’s prior written consent. The Company shall have absolute discretion as to whether or not to give such consent and as to the terms on which it is given. 

20. TERMINATION 
  

	 	20.1	In addition to any other rights to terminate contained herein, the Company may by written notice to the Distributor terminate this Agreement forthwith upon: 

 

	 	20.1.1	any attempted assignment or transfer without the Company’s prior approval by the Distributor of this Agreement or any part thereof or any rights or obligations thereunder; or 

 

	 	20.1.2	the commencement or happening of any occurrence connected with insolvency, bankruptcy, dissolution, administration, receivership or liquidation (or the national equivalent of any of the above within the Territory or any
part thereof) of the Distributor; or 

  

	 	20.1.3	a breach of any of the terms of any payment guarantee referenced in Schedule 2 by any party giving that guarantee to the Company; or 

 

	 	20.1.4	a breach of Article 3.10 of this Agreement; or 

  

	 	20.1.5	termination or breach of any term of the Trade Mark Agreement. 

  

	 	20.2	 Subject to Article 20.3 relating specifically to deficient performance, if the Distributor is in breach of any of its obligations hereunder, the
Company may serve written notice on the 

  
 17 

	 	
Distributor requiring it to remedy the same within 45 days thereof. Where the Distributor fails, in the Company’s opinion, to so remedy, the Company may serve a written notice on the
Distributor forthwith terminating this Agreement. 

  

	 	20.3	If during the term hereof, the Company is in its absolute discretion dissatisfied with the Distributor’s performance including without limitation, the Distributors failure to perform in accordance with the agreed
business plan, it may notify the Distributor in writing, detailing the required remedial actions that must be taken within the following 3 months. If the Company remains dissatisfied at the end of the 3 months period, it may thereafter terminate
this Agreement by serving not less than 3 months written notice of termination on the Distributor. 

  

	 	20.4	The Company may terminate this Agreement by 3 months written notice to the Distributor if there is any change after the Commencing Date in the management, constitution or circumstances of the Distributor which the
Company in its absolute discretion deems materially detrimental to its interests hereunder. 

 Without prejudice to the
generality of the foregoing provision, where the Distributor is a company, the acquisition of shares representing 25% or more of the issued share capital or controlling 25% or more of the voting rights in the Distributor by any person or entity not
previously approved in writing by the Company shall be deemed detrimental to the Company’s interests. In addition if the acquiring party is engaged directly or indirectly in a business competing with that of the Company, this too shall also be
deemed to be detrimental to the Company. 
 21. RESULTS OF TERMINATION 
  

	 	21.1	The termination of this Agreement by the Company for cause shall operate as a cancellation of all unfulfilled orders for any of the Products received by the Company or any Perkins Supplying Company from the Distributor
prior to the date of such termination. The Distributor shall have no express or implied right to receive any compensation from the Company as a result directly or indirectly from such cancellation. 

 

	 	21.2	Upon termination howsoever arising, the Company shall have the right to purchase any or all of the Products held by the Distributor or its Authorised Dealers at the date of termination, subject to the following
conditions: 

  

	 	21.2.1	the Company may oblige the Distributor or its Authorised Dealers to deliver such Products free of any liens or encumbrances to the Company or its nominee; 

  
 18 

	 	21.2.2	the Company shall pay the invoiced cost of such Products as incurred by the Distributor less the cost of any necessary modifications, refinishing or reconditioning of the same as determined by the Company in its
absolute discretion to restore them to their original condition less a 15% handling charge. 

  

	 	21.2.3	The Distributor shall not be obliged to sell and the Company may not purchase any Products which are the subject of a binding contract of sale or supply entered into by the Distributor or any of its Authorised Dealers
with any third party prior to the date of termination. 

 The Company may exercise its right hereunder by written notice
during any termination notice period or within 120 days after the effective date of any such termination. 
  

	 	21.3	The termination hereof (howsoever caused) shall be without prejudice to any rights or obligations which shall have accrued prior to such termination. Such termination shall not affect any provision hereof expressed to
continue or come into force after the termination including those relating to confidentiality and intellectual property rights. 

  

	 	21.4	During any termination notice period the Company may supply the Products direct to any customers within the Territory where this will serve the best interests of such customers or the customer has so requested. In such
cases the Distributor shall have no right to compensation or commission. 

  

	 	21.5	Upon expiry or termination of this Agreement howsoever arising the Trade Mark Agreement shall automatically terminate. 

22. WAIVER OF DEFAULT AND GENERAL LIABILITY 
  

	 	22.1	No waiver by one party of any breach, default or omission by the other in the performance or observance of any of its obligations hereunder shall be valid unless agreed to in writing signed on behalf of the other. No
such waiver shall apply to or be deemed a waiver of any other breach, default or omission hereunder. The failure of one party to enforce at any time any of the provisions hereof or to require at any time performance by the other of any of its
obligations hereunder shall not be construed to be a waiver of such provisions or obligations. 

  
 19 

	 	22.2	Notwithstanding any other provision herein, neither party shall have any liability for any indirect or consequential loss or damage suffered by the other including but not limited to loss of profits, trade, contracts or
production, howsoever arising out of or in relation to this Agreement. 

 23. GENERAL 

 

	 	23.1	Any notice hereunder shall be delivered by hand at or sent by prepaid first class post (or airmail if outside the UK) to the registered address of the Party upon whom it is being served or any such other address as
notified in writing for the purpose of serving notices hereunder. If posted any such notice shall be deemed to have been served at the expiration of 48 hours after it was posted. In proving such service it shall be sufficient to show that the
envelope containing the notice was both duly addressed, stamped and delivered into the custody of the Post Office. Where the Party being notified has an address outside the UK, then the period of 48 hours shall be extended to 96 hours.

  

	 	23.2	“Force Majeure” means any act or event outside the reasonable control of one of the Parties affecting its ability to perform one or more of its obligations hereunder. The affected Party shall forthwith inform
the other in writing of the matters constituting the Force Majeure and thereby affecting its performance. It shall keep that Party fully informed with regard thereto and of any change therein. If Force Majeure continues for longer than 6 months then
either Party may forthwith by notice in writing to the other terminate this Agreement. Neither Party shall be entitled to claim any compensation from the other for breach of the Agreement or for any contract entered into pursuant to this Agreement
arising out of a termination under this Article 23.2. 

  

	 	23.3	Any element of this Agreement which is or may be held to be void or unenforceable shall, to the extent of such invalidity or unenforceability, be deemed severable and shall not affect any other elements hereof.

  

	 	23.4	This Agreement constitutes the entire agreement between the Parties concerning the subject matter hereof and supersedes and replaces any prior communications, representations or agreements (whether oral or in writing).

  

	 	23.5	This Agreement shall be deemed to be an agreement made in England and shall be read and construed and take effect in all respects in accordance with the Laws of England and the Parties hereby submit to the jurisdiction
of the English Courts. 

  

	 	23.6	 To the extent that there is no reciprocal enforcement procedures between the United Kingdom and the country in which the

  
 20 

	 	
Distributor is located, the Parties agree to submit any dispute arising between them that cannot amicably be settled to arbitration. The arbitration shall be held in London, England before a
single arbitrator appointed by the Parties or failing agreement the matter shall be referred upon either Party’s application to the then current President of the Institute of Arbitrators in London. His nomination of an arbitrator shall be
binding on the Parties. The arbitration shall be governed by the UNCITRAL rules of arbitration and the Parties agree to be finally bound by any and all awards made thereunder by the arbitrator. 

 

	 	23.7	Where the arbitration procedures are applicable, nothing shall prevent the Company from applying to the appropriate court for any injunction or other like remedy to restrain the Distributor from committing any breach or
any anticipated breach of this Agreement and for consequential relief. 

  
 21 

 IN WITNESS WHEREOF this Agreement has been entered into the day and year first before written. 

  

									
	SIGNED for and on behalf of				SIGNED for and on behalf of
	Perkins Engines Company Limited				Power Solution International Inc.
					
	by:		 /s/ Ramin Younessi
				by:		 /s/ Gary Winemaster

					
	Name:		Ramin Younessi				Name:		Gary Winemaster
					
	Position:		Vice President of Perkins Engines Company Limited				Position:		Chief Financial Officer

  
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 SCHEDULE 1: DISTRIBUTOR TERRITORY 

 

	S.1.1	North Dakota, South Dakota, Minnesota, Wisconsin, Iowa, Michigan, Ohio, Indiana, Illinois, Missouri, Nebraska, Kansas, Pennsylvania, New Jersey, Delaware, Maryland (including Washington, District of Columbia), West
Virginia, New Hampshire, Vermont, Massachusetts, Maine, Rhode Island, Connecticut, New York 

  
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 SCHEDULE 2: TERMS AND METHOD OF PAYMENT 

 

	S.2.1	This Schedule details the terms of payment applicable to all purchases of products by the Distributor as ascribed by Article 13.2 of the Agreement. 

 

	S.2.2	Company agrees (but reserves the right to withdraw such agreement at any time on notifying the Distributor) that the Distributor shall make payment on the terms of payment set out in Article S2.5 of this Schedule.
During each calendar month the Company shall send a statement of account for the products invoiced to the Distributor before the first week of the said calendar month detailing which is due and payable by the Distributor. 

 

	S.2.3	The Distributor shall make payments by electronic transfer into the Company’s nominated bank account to ensure that payment is received by the Company on or before the agreed due date. The Company reserves the
right to charge interest on all invoices that remain unpaid on their due date until actual payment is received. Delay payment interest will be charged at a rate of 4% above the prevailing Lloyds Bank Group PLC interest rate. These provisions are
without prejudice to the generality of the Companies rights to set off in Article S2.4 below. 

  

	S.2.4	The Company shall have the right to apply in or towards the payment of any amount due to it, any funds or credits belonging or due to it which may be in the others possession. 

 

	S.2.5	Terms of Payment for Engines and/ or Parts 

 The Company is prepared to trade with the
Distributor on the following terms of payment: 
  

	 	S.2.5.1	Payment Terms 

 Payment for all orders placed on the Company shall be due on the 15th of the second month following date of invoice unless otherwise advised by the Company. Payment for all order placed on Perkins Supplying Companies (including but without limitation to Perkins
Engines Inc.) shall be due 120 days following date of invoice unless otherwise advised by the Company. 
  

	 	S.2.5.2	All prices in quotations and acceptances are in the currency stated in the quotation or invoice unless otherwise stated and the prices to be paid shall be those ruling at the date of delivery. 

 

	S2.6	Company reserves the right to request a parent company guarantee or other such security from the Distributor in respect of its financial obligations to the Company and in the absence of which the Company may review and
revise any credit limit then offered to the Distributor. 

  
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