Document:

Exhibit 10.2

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT
AGREEMENT (the “Agreement”) is effective as of the Effective Date (as defined below), by and between VACCINOGEN,
INC. (the “Company”), and Michael G. Hanna, Jr., Ph.D. (the “Executive”).

 

WHEREAS, prior
to the Effective Date, the Executive served as Chief Executive Officer of the Company on the terms and conditions set forth in
that certain Employment Agreement dated February 1, 2010, as previously amended by that certain side letter dated December 21,
2010 (the “Current Employment Agreement”);

 

WHEREAS, the Company
entered into that certain agreement dated April 24, 2014, with The Investment Syndicate (“TIS”), as amended from time
to time (the “TIS Agreement”), pursuant to which TIS agreed (among other things) to purchase shares of the Company’s
common stock for an aggregate purchase price of $80,000,000 on the terms and conditions set forth therein;

 

WHEREAS, in approving
the TIS Agreement, the Board of Directors of the Company (the “Board”), including the Executive (then serving as Chairman
of the Board), determined, based on (among other things) the Company’s need for additional working capital, that it is in
the best interests of the Company to consummate the transactions set forth in the TIS Agreement on the terms and conditions set
forth therein;

 

WHEREAS, as a
condition precedent to TIS’ obligation to consummate the initial closing with respect to TIS’ investment in the Company
contemplated in the TIS Agreement (collectively, the “TIS Investment Conditions”), the Executive is required to (i)
transition his role with the Company from Chief Executive Officer and Chairman of the Board to “Special Advisor to the Chief
Executive Officer” (as described herein), Chairman Emeritus, and member of the Company’s Medical Advisory Committee,
and (ii) cooperate with the Company to transfer his knowledge, technical and other know-how, ideas and related “Inventions”
(as defined herein) to the Company and the Company’s current and new clinical and technical personnel, in each case, with
respect to research and development, and the advancement of the Company’s opportunities, in the promising human antibody
field, including, among other things, Oncavert and other vaccines and cancer therapeutic products (collectively, the “Human
Antibody Field”);

 

WHEREAS, in connection
with the TIS Agreement, the Executive (then serving as the Company’s Chief Executive Officer) signed the Company’s
Form 8-K, filed on April 28, 2014, generally indicating his agreement, in his individual capacity, to satisfy the TIS Investment
Conditions;

 

WHEREAS, in recognition
of the foregoing, the Company and the Executive have agreed to amend, restate and supersede the Current Employment Agreement in
its entirety in the manner set forth in this Agreement; and

 

    	 

    	 

    

 

WHEREAS, the
Executive recognizes and acknowledges the Company’s legitimate purposes of protecting its Inventions and related intellectual
property rights, Confidential Information (as defined herein), assets, business relationships, and goodwill by (i) clarifying that
the Company is the owner thereof, (ii) avoiding for limited times competition as described herein, and (iii) avoiding unauthorized
use or disclosure of the Company’s Confidential Information at any time.

 

NOW, THEREFORE,
in consideration of the mutual covenants and agreements set forth in this Agreement, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as
follows:

 

1.
Employment.

 

(a)Service
as an Employee. The Company hereby employs the Executive, upon the terms and conditions set forth herein, as Special Advisor
to the Chief Executive Officer of the Company. In this role, the Executive shall (i) provide advice and guidance to, and as requested
by, the Chief Executive Officer and Chief Medical Officer, (ii) assist the Chief Executive Officer and Chief Medical Officer in
implementing and managing OncoVAX, Oncavert and other related research and development programs with respect to the Human Antibody
Field, (iii) serve as a member of the Company’s Medical Advisory Committee, and (iv) serve as technical representative of
the Company at medical conferences and similar events. The Executive agrees to devote the Executive’s full working time and
effort to the business and affairs of the Company and its affiliates and to perform all services and acts necessary or advisable
to fulfill the duties and responsibilities as are commensurate and consistent with the Executive’s position as may be assigned
to the Executive from time to time by the Company and to perform such duties to the best of the Executive’s ability. Notwithstanding
the foregoing, (i) the Executive with the prior approval of the Company, may serve as a director on other corporate boards, provided
that such activities do not interfere with the performance of the Executive’s duties under this Agreement or create a conflict
of interest or appearance of a conflict of interest with the performance of the Executive’s duties under this Agreement;
and (ii) the Executive may tend to the Executive’s own investments, and pursue civic activities on a volunteer basis, provided
that none of such activities interferes with the performance of the Executive’s duties under this Agreement. The Executive
shall report to the Chief Executive Officer of the Company.

 

(b)Service
as Chairman Emeritus and as a Director. The Executive shall serve as Chairman Emeritus of the Company and as a director
of the Company, in the latter case until immediately prior to TIS funding $80,000,000 as contemplated in the TIS Agreement, at
which time the Executive shall resign from the Board. In his role as Chairman Emeritus, the Executive shall be entitled to attend
meetings of the Company’s Board of Directors, on a non-voting basis. The Executive’s service as Chairman Emeritus shall
continue during the Term.

 

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2.Initial
Term and Additional Term. The term of the Executive’s employment hereunder shall commence on the Effective Date,
and, unless terminated earlier pursuant to Section 4 hereof, shall (i) continue for a term of three (3) years (the “Initial
Term”), and (ii) thereafter be extended for additional one (1) year periods (each, an “Additional Term”), unless
either party, in its discretion, provides written notice of an intention to not renew the Agreement at the end of the Term at
least one hundred and twenty (120) days prior to the end of the Term. As used in this Agreement, “Term” shall refer
to the Initial Term and any Additional Term.

 

3.Base Salary, Bonuses,
and Benefits.

 

(a)Base Salary. During
the Term, the Company agrees to pay to the Executive an annual base salary of Three Hundred and Fifty Thousand Dollars ($350,000)
(the actual amount payable from time to time hereunder is referred to as the “Base Salary”); provided, however, that
the Base Salary may from time to time be increased (but not reduced) by the Board of Directors, in its sole discretion. The Base
Salary, less all amounts required to be withheld under applicable law, shall be payable in equal periodic installments in accordance
with the practice of the Company in effect from time to time for the payment of salaries to executives of the Company, but in no
event less frequently than monthly.

 

(b)Annual Bonus. 

 

(1)For any
calendar year during the Term, the Board of Directors may, in its sole discretion, authorize the Company to pay to the Executive
a bonus of an amount up to seventy-five percent (75%) of the Executive’s Base Salary for such calendar year (“Annual
Bonus”). Any such Annual Bonus (less all amounts required to be withheld under applicable law) shall be paid to the Executive
by the March 15th of the calendar year following the calendar year for which it is payable. In order to receive an Annual
Bonus, the Executive must remain an active employee of the Company on and until the date the Annual Bonus is paid.

 

(2)Notwithstanding
Section 3(b)(1), if and when the Company becomes subject to the limitation on deductible compensation under Section 162(m) of the
Internal Revenue Code, the Company may, in lieu of (or in addition to) paying an Annual Bonus under the terms and conditions set
forth in Section 3(b)(1), establish a bonus plan intended to meet the requirements for treatment as “performance-based compensation”,
including approval of the bonus by “outside directors”, all as set forth in Section 1.162-27 of the Treasury Regulations
(as amended from time to time).

 

(c)Benefits. During
the Term, the Company shall provide the Executive with the following benefits:

 

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(1)The
Executive will receive paid leave, medical and other benefits as set forth in the Employee Handbook (as revised from time to time)
and as otherwise offered by the Company to its employees during the Term. The Executive agrees that the benefits described in this
Section 3(c)(1) will be provided in accordance with the terms of each plan, arrangement or policy, as the case may be, and any
issues as to entitlement or payment will be governed by the terms of such documents. The Executive further agrees that the Company
may unilaterally, without notice or pay in lieu thereof, revise, change, add, delete, or eliminate these benefits, and that no
such change shall be considered a constructive dismissal. The Executive further understands that nothing contained herein shall
obligate the Company to adopt any particular benefit plans or programs nor to maintain any such plans or programs.

 

(2)The Executive
shall be entitled to a Pinnacle Care membership (or similar medical concierge membership selected by the Company) covering the
Executive and the Executive’s family at the equivalent to the top membership level.

 

(3)The Executive
shall be entitled to reimbursement by the Company for expenses incurred in a calendar year with respect to tax, financial and legal
planning services (including tax return preparation), up to a maximum of $20,000 per calendar year during the Term.

 

(4)The Executive shall be
entitled to receive reimbursement from the Company for necessary business expenses reasonably incurred by him in performing his
duties hereunder during the Term. The Company acknowledges that extensive travel, including international travel, is an integral
part of the Executive's duties, and acknowledges that it is important for the Company's purposes for the Executive to be provided
with travel conditions that are safe and comfortable, to enable the Executive to properly perform his duties. To this end, when
the Executive is flying on Company business, the Executive shall be entitled to fly business or first class, and shall be provided
access to first class airport lounges.

 

4.Termination.

 

(a)General.
The employment of the Executive hereunder (and the Agreement) shall terminate upon expiration of the Term pursuant to Section 2
hereof, unless earlier terminated in accordance with the provisions of this Section 4.

 

(b)Termination Upon
Death of the Executive. The employment of the Executive hereunder (and the Agreement) shall terminate as of the date of
the Executive’s death, in which event the Company shall have no further obligations or liabilities under this Agreement (including,
without limitation, Section 3 hereof) except to pay to the Executive’s designated beneficiary (or estate or his personal
representative, as the case may be, if no beneficiary has been designated) (i) that portion, if any, of the Base Salary that remains
unpaid for the period prior to the date of death, and (ii) a lump sum cash payment equal to one (1) times the Base Salary, plus
an Annual Bonus equal to seventy-five percent (75%) of the Executive’s Base Salary. Such payment shall be made thirty (30)
days following the date of the Executive’s death.

 

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(c)Termination Upon Disability
of the Executive.

 

(1) The employment of the
Executive hereunder (and the Agreement) shall terminate as of the date of the Executive’s Disability (as defined below),
in which event the Company shall have no further obligations or liabilities under this Agreement (including, without limitation,
Section 3 hereof) except to pay to the Executive (i) that portion, if any, of the Base Salary that remains unpaid for the period
prior to the date of Disability, and (ii) a lump sum cash payment equal to one (1) times the Base Salary, plus an Annual Bonus
equal to seventy-five percent (75%) of the Executive’s Base Salary. Such payment shall be made upon the Executive’s
Separation from Service (within the meaning of Section 409A(a)(2)(A)(i) of the Internal Revenue Code) (a "Separation from
Service") due to Disability, subject, however, to the requirement under Section 409A(a)(2)(B)(i) of the Internal Revenue Code
to delay payment to a “specified employee”, as set forth in Section 18.

 

(2)For purposes of the Agreement,
“Disability” shall mean that, pursuant to the written determination by two physicians (one selected by the Company
and one selected by the Executive), because of a medically determinable disease, condition, injury, or other physical or mental
disability, the Executive is unable to substantially perform the duties of the Executive required hereby, and that such disability
is determined or reasonably expected to last for a continuous period of one-hundred and eighty (180) days; provided that, in the
event such physicians fail to agree on such determination, such determination shall be made by a third physician selected by mutual
agreement of the first two physicians. If the Executive refuses or fails to select a physician within fourteen (14) days after
a request by the Company, the physician selected by the Company, acting alone, shall make the determination.

 

(d)Termination By
the Company for Cause.

 

(1)The employment
of the Executive hereunder (and the Agreement) shall be terminated, at the option of the Company, for “Cause” (as defined
herein), upon written notice to the Executive specifying in reasonable detail the reason therefor, in which event the Company shall
have no further obligations or liabilities under the Agreement (including, without limitation, Section 3 hereof) except to pay
to the Executive that portion, if any, of the Base Salary and any prior year bonus (under Section 3(b)(1)) that remains unpaid
for the period prior to the date of termination.

 

(2)For purposes of the Agreement,
“Cause” shall mean: (i) willful misconduct (including but not limited to misappropriation of a material Company business
opportunity, material violation of a confidentiality or non-competition obligation, or abuse of drugs or alcohol that results in
the Executive being materially adversely affected in the performance of the Executive’s job duties), or fraud by the Executive;
(ii) conviction of (including a plea of guilty or nolo contendere to) a felony which has a material effect on the Company or the
Executive's performance; or (iii) the failure to comply with any material obligation imposed upon the Executive pursuant to the
Agreement; provided, however, that if such failure under clause (i) or (iii) is susceptible of cure, “Cause” shall
be deemed to exist only after the failure has remained uncured for thirty (30) days following receipt by the Executive of written
notice from the Company of the failure. Notwithstanding the foregoing, if the Executive disagrees with the good faith determination
of the Company that there is no cure after the 30-day cure period, the Executive may request that such determination be submitted
to binding arbitration before a single arbitrator in accordance with the then existing Employment Dispute Resolution Rules of the
American Arbitration Association (with the each party responsible for its own fees and costs). If the Executive makes such a request
for arbitration, the termination of the Executive shall not become effective unless and until it is upheld by a final decision
issued through such arbitration process; provided, that the Company shall have the right, in its sole discretion, to relieve the
Executive of all or any portion of his duties during such arbitration period pending the arbitration decision so long as the Company
continues to pay and provide to the Executive on a timely basis the compensation and benefits that it would otherwise owe to the
Executive during such period under this Agreement.

 

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(e)Voluntary Resignation
by the Executive. If the Executive voluntarily terminates employment other than for Good Reason during the Term, the Company
shall have no further obligations or liabilities under the Agreement (including, without limitation, Section 3 hereof) except to
pay to the Executive that portion, if any, of the Base Salary that remains unpaid for the period prior to the date of termination.

 

(f)Termination by the Company
Other than for Cause. 

 

(1)If the Executive incurs
an involuntary Separation from Service for reasons other than for Cause (and for reasons other than death or Disability), then
subject to the Executive meeting the release requirements described in Section 4(f)(2) below, the Executive shall receive the following
payments and benefits (subject to Section 18 below):

 

(A) Continued payments
(on the Company’s regular payroll schedule) for the greater of (i) the remainder of the Term (not including any renewal terms
that have not yet begin, even if the notice period for nonrenewal has expired), or (ii) one (1) year (the greater of such two periods,
the “Severance Period”). Each such payment shall be equal to one hundred and seventy-five percent (175%) of the Executive’s
per-pay period Base Salary amount as of such Separation from Service, and shall be paid as follows:

 

(i)Payments that
would otherwise have been made within the 90-day period following the Executive’s Separation from Service (had they commenced
with the first regularly scheduled paydate following the Executive’s Separation from Service) shall be paid in a lump sum
on the final regularly scheduled paydate preceding the end of such ninety (90) day period (unless the Company, in its discretion,
decides to make such lump sum payment on an earlier date within such 90-day period).

 

(ii)Payments that
are not due to be made until after the 90-day period following the Executive’s Separation from Service (based on the Company’s
regular payroll schedule) shall be made when due, based on such regular payroll schedule.

 

(iii)Notwithstanding
the foregoing, payments under this Section 4(f)(1)(A) shall be subject to the six-month delay for “specified employees”,
if applicable, as described in more detail in Section 18.

 

 

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(B)Continued medical and dental
benefits as provided by the Company from time to time for its employees, at the Company’s expense, for the period of time
equal to the shorter of the Severance Period or the maximum period of COBRA continuation coverage provided under Section 4980B(f)
of the Internal Revenue Code (with such coverage to be treated as COBRA coverage).

 

(2)The Executive complies
with the requirements of this Section 4(f)(2), and becomes entitled to the payments and benefits described in Section 4(f)(1),
only if the Executive executes a release of claims in favor of the Company in connection with the Executive’s employment
in a form to be provided by the Company, and any revocation period with respect to such release expires, by the final regularly
scheduled paydate preceding the end of the ninety (90) day period following the Executive's Separation from Service.

 

(3)If the Executive incurs
an involuntary Separation from Service due to the non-renewal of the Agreement by the Company without Cause at the expiration of
an Initial Term or an Additional Term, such Separation from Service shall be treated as an involuntary Separation from Service
for purposes of this Section 4(f).

 

(g)Resignation for Good Reason.
The Executive may resign the Executive’s employment under this Agreement for Good Reason as set forth below.

 

(1)“Good
Reason” means one or more of the following conditions arising without the consent of the Executive, upon which the
Executive resigns and incurs a Separation from Service within six (6) months following the initial existence of the condition:

 

(i)A reduction in the
Executive’s base compensation.

 

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(ii)A diminution in the Executive's
authority, duties, or responsibilities, when compared with the authority, duties and responsibilities described in Section 1(a).

 

(iii)A requirement that the Executive
report to a Company officer or employee other than the Chief Executive Officer.

 

(iv)A change of seventy-five (75)
miles or more in the geographic location at which the Executive must perform the services.

 

(v)  Any other
action or inaction that constitutes a material breach by the Company of this Agreement.

 

(2)When
the Executive becomes aware of a condition that constitutes what the Executive regards as Good Reason under Section 4(g)(1)), the
Executive shall provide the Company with written notice of the basis for Good Reason with sufficient specificity to enable the
Company to attempt to cure the situation. The Company shall then have thirty (30) business days from receipt of the notice to cure
the situation. If the Company fails to cure the situation within such cure period, the Executive may resign from employment for
Good Reason. In the event that the Company cures the situation(s) that constitutes the basis of the Good Reason as identified in
the notice of Good Reason, the Executive may not terminate based on said notice of Good Reason. If the Company asserts that it
has cured the situation, but the Executive does not agree with such assertion, the Executive may request that such determination
be submitted to binding arbitration before a single arbitrator in accordance with the then existing Employment Dispute Resolution
Rules of the American Arbitration Association (with the each party responsible for its own fees and costs). If the Executive makes
such a request for arbitration, the Executive may not terminate his employment for Good Reason unless and until the Executive's
position (that Good Reason was not cured) is upheld by a final decision issued through such arbitration process. The Executive
must provide said notice of Good Reason within ninety (90) days of the initial existence of the condition that constitutes what
the Executive regards as Good Reason. 

 

(3)In the event that
the Company cures the matter(s) that constitute(s) the basis of the Good Reason as identified in the Notice of Good Reason, the
Executive may not resign for Good Reason based on said Notice of Good Reason. A resignation of employment by the Executive after
the Good Reason has been cured shall be deemed to be a voluntary resignation without Good Reason under Section 4(e).

 

(4)Upon
a Separation from Service by the Executive for Good Reason, and upon satisfaction of the release requirement described in Section
4(f)(2), the Company shall pay to the Executive the compensation and benefits described in Section 4(f)(1), as though the Executive
had incurred an involuntary Separation from Service without Cause.

 

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5.Non-Solicitation, Non-Competition,
Confidentiality, and Intellectual Property.

 

(a)Non-Solicitation
and Non-Competition

 

(1)During
the Restriction Period (as defined below), the Executive shall not (without the prior written consent of the Company), in each
instance directly or indirectly, conduct or engage in any Competing Business (as defined below). A “Competing Business”
shall mean each business conducted or engaged in by the Company at any time during the Restriction Period, including, without limitation,
the business of providing or developing autologous tumor cell vaccines.

 

(2)The “Restriction
Period” shall include (i) the Term (and prior thereto, during the Executive’s employment with the Company) and (ii)
the three (3) year period following termination or expiration of the Term for any reason.

 

(3)The term “conduct
or engage in a Competing Business” shall include engaging in any of the following activities, directly or indirectly, other
than carrying on or engaging in activities expressly permitted under this Agreement:

 

(A)Conducting or engaging
in a Competing Business as a principal, or on the Executive’s own account, or solely or jointly with others as a director,
officer, agent, employee, consultant or partner, member, stockholder, limited partner or other interest holder in, or for, any
individual or entity (each, a “Person”) that is conducting or engaging in a Competing Business (other than the Executive’s
ownership of two (2) percent or less of the stock of an entity whose stock is traded on a nationally recognized exchange).

 

(B)As agent or principal,
conducting or engaging in any activities or negotiations with respect to the acquisition or disposition of a Competing Business.

 

(C)Extending credit for
the purpose of establishing or operating a Competing Business.

 

(D)Lending or allowing the
Executive’s name or reputation to be used in a Competing Business.

 

(E)Otherwise
allowing the Executive’s skill, knowledge or experience to be used in a Competing Business.

 

(4)During
the Restriction Period, the Executive shall not, without the prior written consent of the Company or for the Company’s benefit,
in each case directly or indirectly, solicit, raid, entice, induce or offer any Person who is then employed by the Company, to
leave the Company’s employment or to become employed by any Person in any business, whether or not it is a Competing Business.

 

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(5)During
the Restriction Period, the Executive shall not, without the prior written consent of the Company, in each case directly or indirectly,
solicit business for a Competing Business from any Person that is then a customer of the Company or that is being solicited by
the Company.

 

(6)During
the Restriction Period, the Executive shall not, without the prior written consent of the Company, in each case directly or indirectly,
provide, or arrange for or assist in the provision of services by a Competing Business to any Person that is then a customer of
the Company or that is being solicited by the Company.

 

(b)Confidentiality
and Non-Disclosure.

 

(1)Except as permitted or
directed by the Company or in connection with the Executive’s employment by the Company or one of its subsidiaries or affiliates,
the Executive agrees to keep confidential and not to divulge or use any Confidential Information or Biological Materials (as these
terms are defined below) which the Executive has acquired or become acquainted with during the Executive’s employment with
the Company or any of its subsidiaries or affiliates, whether developed by the Executive or by others. The Executive agrees to
use Confidential Information or Biological Materials only in carrying out the duties and responsibilities related to the Executive’s
employment hereunder and, except in connection therewith, the Executive will not at any time disclose Confidential Information
or Biological Materials to any Person or use the same for another Person’s benefit, or the benefit of anyone other than the
Company. The Executive shall take all reasonable precautions to safeguard Confidential Information and Biological Materials which
is entrusted to the Executive.

 

(2)For
purposes of this Agreement, “Confidential Information” shall mean:

 

(A)Any non-public information
of the Company that, (i) due to its character and nature, a reasonable Person employed or engaged by the Company would know was
confidential or proprietary, or (ii) that derives independent value from not being generally known to the public.

 

(B)Non-public information
regarding or comprising the Company’s customers and customer lists, suppliers and supplier lists, procurement programs, customer
and “net-net” pricing, financial matters, rebates and allowances, business matters, business policies, sales, marketing,
processes, techniques, know-how, trade secrets, strategic, tactical or development plans, personnel information, or means of doing
business.

 

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(C)Other non-public Company
information obtained or developed directly or indirectly by the Executive in the course of the Executive’s employment.

 

(D)By way of illustration,
but not limitation, Confidential Information may include inventions, trade secrets, technical information, know-how, research and
development activities of the Company, product and marketing plans, customer and supplier information and information disclosed
to the Company or to the Executive by third parties of a proprietary or confidential nature or under an obligation of confidence.
Confidential Information is contained in various media, including without limitations, patent applications, computer programs in
object and/or source code, flow charts and other program documentation, manuals, plans, drawings, designs, technical specifications,
laboratory notebooks, supplier and customer lists, internal financial data and other documents and records of the Company, whether
or not in writing and whether or not labeled or identified as confidential or proprietary.

 

(E)Without limiting the
foregoing, “Confidential Information” shall include any information arising from the Company’s research and development
activities, including but not limited to information relating to the Human Antibody Field.

 

(3)As used herein, “Biological
Materials” shall include, without limitation, any and all reagents, substances, chemical compounds, subcellular constituents,
cells or cell lines, organisms and progeny, mutants, derivatives or replications thereof or therefrom.

 

(4)The Executive shall not
be liable for disclosure of Confidential Information if made in response to a valid order of a court or authorized agency of government;
provided that, if available, five days’ notice first be given by the Executive to the Company so a protective order, if appropriate,
may be sought.

 

(5)The Executive acknowledges
that the Company’s Confidential Information and Biological Materials constitute a unique and valuable asset of the Company
and represents a substantial investment of time and expense by the Company and that any disclosure or use of such Confidential
Information or Biological Materials other than for the sole benefit of the Company or any of its subsidiaries or affiliates would
be wrongful and would cause irreparable harm to the Company and/or its subsidiaries and affiliates.

 

(6)The Executive agrees
to return to the Company at any time the Executive separates from the Company’s employment, or earlier if so requested by
the Company, all Confidential Information and Biological Materials in the Executive’s possession, including any copies made
by the Executive, and the relevant documents, diskettes, files, hardware, computers, devices, memories, software and generally
all other materials or devices which contain or embody the same.

 

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(7)The terms of this Section
5(b) shall be applicable to the Executive at all times during the Executive’s employment with the Company and shall survive
the termination of such employment forever.

 

(c)Intellectual Property.
 

 

(1)The Executive
agrees to promptly disclose to the Company in writing on an ongoing basis whether or not upon request any and all ideas, concepts,
discoveries, inventions, developments, original works of authorship, software programs, software and systems documentation, trade
secrets, technical data, know-how and Biological Materials that are conceived, devised, invented, developed or reduced to practice
or tangible medium by the Executive, under the Executive’s direction or jointly with others during any period that the Executive
was or is employed or engaged by the Company, whether or not during normal working hours or on the premises of the Company, which,
directly or indirectly (i) relate to any actual or anticipated business of the Company, (ii) arise out of, result from, or are
connected with, the Executive’s employment with the Company, or (iii) use (or are otherwise derived from) any Confidential
Information (in each case, hereinafter “Inventions”).

 

(2)The Executive
hereby assigns to the Company all of the Executive’s right, title and interest in and to the Inventions and any and all related
patent rights, copyrights, trademarks, and applications and registrations therefore and any other intellectual property rights.
During and after the Executive’s employment, the Executive shall cooperate with the Company, at the Company’s expense,
in obtaining proprietary protection for the Inventions (and any and all such related intellectual property rights) and the Executive
shall execute all documents which the Company shall reasonably request in order to perfect the Company’s rights in the Inventions.
In the event the Company is unable for any reason, after reasonable effort, to secure the Executive’s signature on any document
needed in connection with the actions specified above, the Executive hereby irrevocably designates and appoints the Company and
its duly authorized officers and agents as the Executive’s agent and attorney in fact, which appointment is coupled with
an interest, to act for and on the Executive’s behalf to execute, verify and file any such documents and to do all other
lawfully permitted acts to further the purposes of the provisions above with the same legal force and effect as if executed by
the Executive. The Executive hereby waives and quitclaims to the Company any and all claims, of any nature whatsoever, which the
Executive now or may hereafter have for infringement of any intellectual property rights assigned hereunder to the Company. The
Executive agrees to keep and maintain adequate and current records (in the form of notes, sketches, drawings and in any other form
that may be required by the Company) of all Confidential Information developed by the Executive and all Inventions created by the
Executive during the period of the Executive’s employment at the Company, which records shall be available to and remain
the sole property of the Company at all times.

 

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(3)The Executive
acknowledges that all original works of authorship made by the Executive within the scope of the Executive’s employment which
are protectible by copyright are intended to be “works made for hire”, as that term is defined in Section 101 of the
United States Copyright Act of 1976 (the “Act”), and shall be the property of the Company and the Company shall be
the sole author within the meaning of the Act. If the copyright to any such copyrightable work shall not be the property of the
Company by operation of law, the Executive shall, without further consideration, assign to the Company all of the Executive’s
right, title and interest in such copyrightable work and shall cooperate with the Company and its designees, at the Company’s
expense, to secure, maintain and defend for the Company’s benefit copyrights and any extensions and renewals thereof on any
and all such work. The Executive hereby waives all claims to moral rights in any Inventions.

 

(4)The Executive
further represents that the attached Schedule A contains a complete list of all inventions made, conceived or first reduced to
practice by the Executive, under the Executive’s direction or jointly with others prior to the execution by the Executive
of this restated Agreement (“Prior Inventions”) and which are not assigned to the Company hereunder. If there is no
such Schedule A attached hereto, the Executive represents that there are no such Prior Inventions.

 

(5)The Executive
hereby represents to the Company that, except as identified on Schedule B, the Executive is not bound by any agreement or any other
previous or existing business relationship which conflicts with or prevents the full performance of the Executive’s duties
and obligations to the Company (including the Executive’s duties and obligations under this or any other agreement with the
Company) during the Executive’s employment.

 

(6)The Executive
understands that the Company does not desire to acquire from the Executive any trade secrets, know-how or confidential business
information that the Executive may have acquired from others. Therefore, the Executive agrees that during the Executive’s
employment with the Company, the Executive shall not improperly use or disclose any proprietary information or trade secrets of
any former or concurrent employer, or any other Person with whom the Executive has an agreement or to whom the Executive owes a
duty to keep such information in confidence. Those Persons with whom the Executive has such agreements or to whom the Executive
owes such a duty are identified on Schedule B.

 

6.Remedies for Breach of
Section 5. The Executive acknowledges and agrees that if the Executive breaches any of the provisions of Section 5 of this
Agreement, the Company will suffer immediate and irreparable harm for which monetary damages alone will not be a sufficient remedy,
and that, in addition to all other remedies that the Company may have, the Company shall be entitled to seek injunctive relief,
specific performance or any other form of equitable relief to remedy a breach or threatened breach of this Agreement by the Executive
and to enforce the provisions of this Agreement, and the Executive hereby waives any and all defenses the Executive may have on
the grounds of lack of jurisdiction or competence of a court to grant such an injunction or other equitable relief. The existence
of this right shall not preclude or otherwise limit the applicability or exercise of any other rights and remedies which the Executive
or the Company may have at law or in equity. If the Company prevails in litigation on a claim that the Executive violated any of
the provisions of Section 5, the Executive shall reimburse the Company for its reasonable litigation costs.

 

    	-13-

    	 

    

 

7.Interpretation; Severability.

 

(a)The Executive has carefully
considered the possible effects on the Executive of the covenants not to compete and other obligations contained in this Agreement,
and the Executive (i) recognizes that the Company has made every effort to limit the restrictions placed upon the Executive to
those that are reasonable and necessary to protect the Company’s and its affiliates’ legitimate business interests,
and (ii) acknowledges and agrees that the restrictions set forth in this Agreement are reasonable and necessary in order to protect
the Company’s and its affiliates’ legitimate business interests.

 

(b)It is the intention of
the parties hereto that the covenants, provisions, and agreements contained herein shall be enforceable to the fullest extent allowed
by law. If any covenant, provision, or agreement contained herein is found by a court having jurisdiction to be unreasonable in
duration, geographic scope, or character of restrictions, such covenant, provision, or agreement shall not be rendered unenforceable
thereby, but rather the duration, geographic scope, or character of restrictions of such covenant, provision, or agreement shall
be deemed reduced or modified with retroactive effect to render such covenant, provision, or agreement reasonable, and such covenant,
provision, or agreement shall be enforced as modified. If the court having jurisdiction will not revise the covenant, provision,
or agreement, the parties hereto shall mutually agree to a revision having an effect as close as permitted by applicable law to
the provision declared unenforceable. The parties hereto agree that if a court having jurisdiction determines, despite the express
intent of the parties hereto, that any portion of the covenants, provisions, or agreements contained herein are not enforceable,
the remaining covenants, provisions, and agreements herein shall be valid and enforceable. Moreover, to the extent that any provision
is declared unenforceable, the Company shall have any and all rights under applicable statutes, civil law, or common law to enforce
its rights with respect to any and all Confidential Information or unfair competition by the Executive.

 

8.Applicable Law; Jurisdiction;
Company Policies; Compensation Committee.

 

(a)The parties
shall use their best efforts to resolve amicably any and all disputes relating to this Agreement (“Disputes”). Subject
to preemption by federal law, all Disputes arising under this Agreement shall be determined pursuant to the laws of the State of
Maryland, regardless of applicable principles of conflicts of laws. The parties irrevocably submit to the exclusive jurisdiction
of (1) the courts of the State of Maryland and (2) if federal jurisdiction exists, to the United States District Court of Maryland.
THE EXECUTIVE AGREES TO WAIVE HIS RIGHTS TO A JURY TRIAL OF ANY AND ALL CLAIMS OR CAUSES OF ACTION BASED UPON OR ARISING OUT
OF THIS AGREEMENT.

 

    	-14-

    	 

    

 

(b)All payments,
grants and benefits under this Agreement shall be made in accordance with, and shall be subject to, all applicable Company policies
and procedures (including but not limited to the Company’s claw back policy, as amended from time to time), and all applicable
laws, including but not limited to securities laws and exchange listing requirements. All references in this Agreement to the Board
of Directors shall be deemed to refer to the Compensation Committee thereof with respect to items within the authority of the Compensation
Committee.

 

9.Mitigation and Offset.
Notwithstanding anything herein to the contrary, the Executive will not be required to seek other employment if the Executive’s
employment terminates under circumstances that entitle the Executive to benefits under Sections 4(f) or 4(g) herein.

 

10.Notices.
All notices and communications pursuant to this Agreement shall be in writing and shall be deemed to have been duly given and effective
when received if (i) personally delivered, (ii) mailed by registered or certified mail, postage prepaid, return receipt
requested, or (iii) sent by other delivery services providing evidence of delivery, to the following:

 

If to the Executive:

 

Michael G. Hanna, Jr.,
Ph.D.

39572 North Cotton
Patch Hills Road

Bethany Beach, Delaware
19930

 

If to the Company:

 

Vaccinogen, Inc.

5300 Westview Drive, Suite 406

Frederick, Maryland 21703

 

or to such other address as a party provides
(in accordance herewith) to the other party from time to time.

 

11.Entire Agreement;
Amendment; Waiver. This Agreement constitutes the entire agreement between the parties pertaining to the subject matter
hereof, and supersedes any and all prior and contemporaneous agreements, understandings, negotiations, and discussions of the parties,
whether oral or written. No amendment, modification, or waiver of this Agreement shall be binding unless executed in writing by
all of the parties hereto, or in the case of a waiver, by the party for whom such benefit was intended. No waiver of any of the
provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision of this Agreement, whether or
not similar, nor shall such waiver constitute a continuing waiver unless otherwise expressly so provided in writing.

 

    	-15-

    	 

    

 

12.Successors and
Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs,
personal representatives, successors, and assigns; provided, however, that the Executive may not assign any of the Executive’s
rights or obligations hereunder without the prior written consent of the Company.

 

13.Representation
by Counsel. Each of the parties hereto acknowledges that (i) they have read the Agreement in its entirety and understands
all of its terms and conditions, (ii) they have had the opportunity to consult with any individuals of their choice regarding
their agreement to the provisions contained herein, including legal counsel of their choice, and any decision not to do so was
theirs alone, and (iii) they are entering into the Agreement of their own free will, without coercion from any source. Venable
LLP has represented the Company, not the Executive, in connection with this Agreement.

 

14.Indemnification; Insurance;
Assistance with Legal Action. 

 

(a)The Company shall indemnify
and hold the Executive harmless, to the maximum extent permitted by law, against judgments, fines, amounts paid in settlement and
reasonable expenses, including attorneys’ fees, incurred by the Executive in connection with the defense of, or as a result
of any action or proceeding (or any appeal from any action or proceeding) in which the Executive is made or is threatened to be
made a party by reason of the fact that the Executive is or was an officer of the Company, other than a breach by the Executive
of any of the Executive’s obligations under this Agreement.

 

(b)The Executive agrees
that the Executive will, upon reasonable notice, furnish such information and assistance to the Company as may be reasonably required
by the Company in connection with any litigation, or governmental inquiry or proceeding, in which it or any of its predecessors,
successors, subsidiaries, officers, directors, shareholders, agents, affiliates, investors, and attorneys is, or may become, a
party or otherwise involved.

 

15.Interpretation. The
parties and their respective legal counsel actively participated in the negotiation and drafting of this Agreement, and in the
event of any ambiguity or mistake herein, or any dispute among the parties with respect to the provisions hereto, no provision
of this Agreement shall be construed unfavorably against any of the parties on the ground that they or their counsel was the drafter
thereof.

 

    	-16-

    	 

    

 

16.Survival. The
provisions of Sections 5, 6, 7, and 8 through 14, inclusive, shall survive the termination of this Agreement.

 

17.Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, and all of which together
shall constitute one and the same Agreement.

 

18.Section 409A.
The parties intend that the payments and benefits to which the Executive is entitled hereunder shall comply with or meet an exemption
from Section 409A of the Internal Revenue Code.  In this regard:

 

(a)Notwithstanding
anything in this Agreement to the contrary, all cash amounts that become payable under this Agreement shall be paid no later than
March 15 of the year following the year in which such amounts are earned or become vested, shall qualify for the exception for
“separation pay” set forth in Section 1.409A-1(b)(9) of the Treasury Regulations or another exemption under Section
409A of the Internal Revenue Code, or shall comply with Section 409A of the Internal Revenue Code. 

 

(b)Payments subject
to Section 409A of the Internal Revenue Code that are due upon termination of employment shall be made only upon “separation
from service” within the meaning of Section 409A(a)(2)(A)(i) of the Internal Revenue Code, and shall be subject to the 6-month
payment delay described in Section 409A(a)(2)(B)(i) of the Internal Revenue Code if Section 409A(a)(2)(B)(i) of the Internal Revenue
Code is applicable and the Executive is a “specified employee” as described therein. Payments subject to such 6-month
delay shall not be paid until the first payroll date that occurs after the date that is six (6) months following the Executive’s
Separation from Service. If any payments are postponed due to such requirements, such postponed amounts shall be paid in a lump
sum to the Executive on the first payroll date that occurs after the date that is six (6) months following the Executive’s
Separation from Service.  If the Executive dies during the postponement period prior to the payment of postponed amount, the
amounts withheld on account of Section 409A of the Internal Revenue Code shall be paid to the personal representative of the Executive’s
estate within sixty (60) days after the date of the Executive’s death.

 

(c)Notwithstanding
anything herein to the contrary, any taxable reimbursements provided under this Agreement shall be subject to the following requirements:
(i) no reimbursement shall affect the expenses eligible for reimbursement in any other calendar year; (ii) the Executive shall
submit to the Company such statements and other evidence supporting the expenses to be reimbursed no later than as the Company
may reasonably require; provided, however, that the reimbursement deadlines for the Executive shall not be shorter than the deadlines
that apply to similarly-situated executives of the Company; (iii) all reimbursements shall be made no later than December 31 of
the calendar year following the calendar year in which such related expenses were incurred; and (iv) the right to any reimbursements
shall not be subject to liquidation or exchange for another benefit.

 

    	-17-

    	 

    

 

(d)In the event
that it is determined that the terms of this Agreement do not comply with Section 409A of the Internal Revenue Code, the parties
will negotiate reasonably and in good faith to amend the terms of this Agreement so that it complies (in a manner that preserves
the economic value of the payments and benefits to which the Executive may become entitled) so that payments are made within the
time period and in a manner permitted by the applicable Treasury Regulations.

 

(e)If any payment
due or made by the Company to the Executive under the terms of this Agreement or otherwise is subject to interest, penalties or
additional tax under Section 409A, then the Executive shall be entitled to receive an indemnification payment (“Section 409A
Indemnification Payment”) in an amount equal to the sum of (1) the Section 409A interest, penalties and additional tax attributable
to any such payment, (2) any federal, state and local income taxes, employment taxes (including FICA) or other taxes payable by
the Executive with respect to (A) the payment due under clause (1) above, and (B) the payment due under this clause (2), plus (3)
reimbursement for attorneys’ fees actually and reasonably incurred by the Executive in contesting the application of Section
409A, in order to put the Executive in the same position he would have been in if the Section 409A interest, penalties and additional
tax did not apply to such payment. That portion of the Section 409A Indemnification Payment provided for in clauses (1) and (2)
of this Section 18(d) shall be paid to the Executive not less than ten (10) business days prior to the Executive remitting the
related taxes and penalties, and that portion of the Section 409A Indemnification Payment provided for in clause (3) of this Section
18(d) shall be paid to the Executive no later than thirty (30) days after the Executive incurs the attorneys’ fees.

 

19.Effective Date. This
Agreement shall be effective retroactively to the date on which it is executed by the Executive (the “Effective Date”)
upon approval of the Agreement by the Compensation Committee of the Company and execution of the Agreement by the Company.

 

 

    	-18-

    	 

    

 

IN WITNESS WHEREOF,
the Company has caused this Agreement to be executed by its duly authorized representative, and the Executive has executed
this Agreement, each as of the Effective Date.

  

	WITNESS/ATTEST:	 	COMPANY:
	 	 	 	 
		 	Vaccinogen, Inc.
	 	 	 	 
	 	 	 	 
	 	 	By:   	/s/ Andrew L. Tussing (SEAL)
	 	 	 	Name:  
	 	 	 	Title:  
	 	 	 	 
	 	 	Date: 	9/19/14
	 	 	 	 
	 		EXECUTIVE:
	 	 	 	 
	 	 	 	 
	 	 	/s/ Michael G. Hanna (SEAL)
	 	 	Michael G. Hanna, Jr.
	 	 	 	 
	 	 	Date:	 9 July 2014

 

 

    	-19-

    	 

    

 

SCHEDULE A

 

PRIOR INVENTIONS

 

See Section 5(c)(4) of the Employment Agreement

 

 

The following is a complete list of all
Prior Inventions

 

	 	 	 
	 	 	No Prior Inventions
	 	 	 
	 	 	 
	 	 	See below for description of Prior Inventions
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	Additional Sheets Attached

 

If the Executive is claiming any Prior
Inventions above, the Executive agrees that, if in the course of the Executive’s employment with the Company, the Executive
incorporates into a Company product, process or machine, a Prior Invention owned by the Executive or in which the Executive has
an interest, the Company shall automatically be granted and shall have a non-exclusive, royalty-free, irrevocable, transferable,
perpetual world-wide license to make, have made, modify, use and sell such Prior Invention as part of, or in connection with, such
product, process or machine.

 

 

    	-20-

    	 

    

 

  SCHEDULE B

  

PRIOR COMMITMENTS

 

See Section 5(c)(5) of the Employment Agreement

 

    	-21-Exhibit 10.1

 

ASSET PURCHASE AGREEMENT

 

THIS ASSET PURCHASE
AGREEMENT dated September 18, 2014 (this “Agreement”) by and between SpendSmart Networks, Inc., a
California corporation (the “Purchaser”), SpendSmart Networks, Inc., a Delaware Corporation (the “Parent”),
TechXpress, Inc., a California corporation (the “Seller”) and Bryan A. Sarlitt (“Sarlitt”
and together with the Purchaser, the Parent and the Seller referred to as the “Parties”).

 

RECITALS

 

Whereas, the Seller
is engaged in the Seller is in the business of designing, developing, and hosting eCommerce websites (the “Business”);

 

Whereas, Sarlitt is
the sole shareholder of Seller;

 

Whereas, the Seller
desires to sell to the Purchaser certain Web Assets (as defined in Section 1.2 of this Agreement) used by the Business,
and the Purchaser desires to acquire the Web Assets upon the terms, in the manner and subject to the conditions hereinafter set
forth;

 

Whereas, contemporaneously
with the Purchaser’s acquisition of the Web Assets, a third party is purchasing certain other assets of the Business, namely
Seller’s IT Assets (as defined in Section 1.3); and

 

Whereas, Seller intends
to close the Web Asset sale to Purchaser and the IT Assets sale to a third party on the same Closing Date in order to ensure that
all proceeds from the sale of assets of the Business collectively pay off the debts, liabilities or obligations of the Company.

 

Based on foregoing
Recitals, and in consideration of the premises and of the mutual covenants, representations and warranties contained in this Agreement,
and intending to be legally bound hereby, the parties hereto agree as follows:

 

ARTICLE I.

PURCHASE AND SALE OF THE WEB ASSETS

 

SECTION 1.1. The
Closing. The sale and transfer of the Assets (as defined herein) and the consummation of all of the other transactions
contemplated by this Agreement (the “Closing” or the “Closing Date”) shall
occur at the offices of Ruskin Moscou Faltischek, P.C., Uniondale, New York, at such time and on such date as the parties may jointly
agree, as the same may be extended by the Purchaser and subject to Section 9.7 hereof, provided the terms and conditions of this
Agreement are satisfied (the applicable date of the Closing being referred to as the “Closing Date”).
At the Closing, the Seller and the Purchaser shall exchange certificates, instruments and other documents required to be delivered
under Article VI hereof.

 

SECTION 1.2. Purchase
and Sale of the Assets. At the Closing, the Seller shall sell, assign and transfer to the Purchaser, free and clear of
all liens, pledges, security interests, mortgages, claims, debts, charges, agreements or other encumbrances or restrictions on
transfer of any kind whatsoever (collectively, the “Encumbrances”), all of its property, rights, privileges
and interests, whether tangible or intangible, real, personal or mixed, that are held or leased or used in connection with the
Assets listed on Schedule 1.2 of the Disclosure Schedules, other than the Excluded Assets as defined in Section 1.3
below (collectively, the “Web Assets”). The Web Assets shall include, but not be limited to, all of Seller's
rights in, but only with regard to the Web Assets: (a) tangible personal property, including, without limitation, work in process,
inventory, furniture and equipment; (b) contracts and personal property leases expressly assumed by the Purchaser; (c) licenses
and permits, which may require consent to assignment; (d) patents, trademarks, copyrights and all other intellectual property,
if any, which may require consent to assignment; (e) know how and trade secrets; (f) accounts receivable; (g) customer lists and
account information; (h) goodwill; and (i) copies of all files, books and records. For purposes of this Agreement, “Disclosure
Schedules” means the Disclosure Schedules delivered by Seller and Purchaser concurrently with the execution
and delivery of this Agreement. 

 

    	1

    	 

    

 

SECTION 1.3. Excluded
Assets. The following assets of the Seller are expressly excluded from the Assets and shall not be sold, assigned, transferred
or delivered to the Purchaser hereunder (collectively, the “Excluded Assets”): (a) the corporate minute
books and stock record books of the Seller (copies of which, however, will be delivered to Purchaser); (b) all of Seller’s
interest in Seller’s IT Assets (“Seller’s IT Assets”), whether tangible or intangible, associated
with Seller’s IT Assets, including, without limitation, the following: customer lists and related data for both active and
inactive clients and prospective clients relating solely to Seller’s IT Assets; all digital files associated with Seller’s
IT Assets; ConnectWise software, license agreements, and all related intellectual property; Kaseya software, license agreements
and all related intellectual property; “TechXpress” name, logo, trademarks, trade names, service marks, copyrights,
marketing collateral including signage; TechXpress domain names, including techxpress.net and all other aliases or alternatives;
website content, including all social media accounts relating solely to Seller’s IT Assets; telephone system; telephone numbers;
facsimile numbers; email addresses; eight (8) desks with cabinetry and office supplies contained therein; eight (8) complete computer
workstations, including associated peripheral equipment and miscellaneous spare parts as specified in Schedule 1.3, attached
hereto and incorporated herein by reference; six (6) laptop computers, including associated peripheral equipment as specified in
Schedule 1.3; servers and networking equipment specified in Schedule 1.3; and all spare parts, tools, and any equipment
originally purchased for the IT Services department to conduct IT Service on behalf of TechXpress; and (c) any rights the Seller
may have to enforce the obligations of the Purchaser pursuant to this Agreement and any and all agreements, certificates, instruments
and other documents related to this Agreement (collectively, the “Related Documents”).

 

SECTION 1.4. Excluded
Liabilities. Except for post-Closing adjustment for accounts paid by Seller prior to Closing, which payments benefit Purchaser
post-Closing as prepaid expense, which amounts shall be reconciled within 60 days of Closing, the Purchaser shall not assume or
be deemed to have assumed any debts, liabilities or obligations of any kind, character or nature, whether known or unknown, fixed,
contingent, absolute or otherwise, arising or made prior to, on or after the Closing Date, of the Seller and its affiliates, or
relating to or arising from the Web Assets, Seller’s IT Assets or any other assets of the Business (each an “Excluded
Liability” and collectively, the “Excluded Liabilities”). Except as set forth in the Disclosure
Schedules immediately prior to, and in conjunction with, the Closing, the Seller covenants and agree to timely and fully discharge
and satisfy all Excluded Liabilities so that the same are not asserted against the Web Assets, the Purchaser or the Parent.

 

SECTION 1.5. Employees.
Seller shall terminate all employees at Closing, including payment of all outstanding wages, accrued vacation and other benefits
due through the Closing Date. Either Purchaser or Parent shall have the right, but not the obligation, to rehire those Seller employees
related to the Web Assets, who consent to rehire, as named on the Disclosures Schedules at Schedule 3.12(c). Purchaser agrees
to pay to Seller within sixty (60) days after Closing the pro rata share (based the actual Closing date) of all payments made for
health insurance covering those employees hired by Purchaser to ensure continued coverage immediately post-Closing until such employees
are covered or otherwise eligible for Purchaser’s health coverage.

 

    	2

    	 

    

 

ARTICLE II.

CONSIDERATION FOR TRANSFER

 

SECTION 2.1. Purchase
Price. The purchase price (the “Purchase Price”) shall consist of:

 

(a)The payment by
Purchaser and/or Parent of those certain Seller liabilities as set forth on Schedule 2.1(a) (the “Seller Liabilities”)
in an amount not to exceed $460,400 in the aggregate (the “Seller Liabilities Cap”). If Seller Liabilities
equal less than the Seller Liabilities Cap, the remainder, if any, shall be remitted to Sarlitt. If the Seller Liabilities are
greater than the Seller Liabilities Cap, such Seller Liabilities shall be paid from the sale of the IT Assets to the buyer of the
IT Assets or otherwise expressly assumed by Seller and Sarlitt.

 

(b)Such number of
shares of Parent’s common stock (the “Stock Consideration”), par value $.001 per share (the “SSPC
Common Stock”) in an amount equal to $741,814 in the aggregate at a price per share equal to the Value Weighted Average
Price of the Parent’s common stock listed on the OTCQB market place for the ten (10) Business Days prior to the Closing,
shall be issued to certain Note Holders of the Seller, listed in Schedule 2.1(b) (the “Note Holders”)
attached hereto, subject to such Note Holders executing a Purchase and Release Agreement substantially in the form attached hereto
as Exhibit A and the Lock Up and Leak Out Agreement substantially in the form annexed hereto as Exhibit A-1
(the “Lock Up and Leak Out Agreement”). Purchaser acknowledges that the Note Holders consist of individuals
that loaned funds to the Company for working capital, the amount of which has been subject to amendment and compromise. Such Note
Holders have agreed to accept a portion of the Purchase Price payment to resolve any and all claims related to the amounts owed
under their respective notes issued to the Seller, as amended. The Stock Consideration shall be issued to each Note Holder based
on the amount outstanding principal balance of each note, relative to the total amount of consideration $741,814 to be paid on
behalf of all of them. Stock Consideration shall consist of a number of authorized but unissued shares of SSPC Common Stock to
be issued at the Closing and shall be subject to the Lock Up and Leak Out Agreement. The certificate for the Stock Consideration
shall bear a legend under the Securities Act of 1933, as amended (the “Securities Act”) relating to the
status of the Stock Consideration as restricted securities and will also bear a legend stating:

 

“THE ISSUANCE AND SALE
OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
OR APPLICABLE STATE SECURITIES LAWS AND THESE SECURITIES MAY NOT BE SOLD OR TRANSFERRED UNLESS (I) A REGISTRATION STATEMENT COVERING
SUCH SALE OR TRANSFER IS EFFECTIVE UNDER THE ACT OR (II) THE TRANSACTION IS EXEMPT FROM REGISTRATION UNDER THE ACT, AND IF THE
ISSUER REQUESTS, AN OPINION SATISFACTORY TO THE CORPORATION TO SUCH EFFECT HAS BEEN RENDERED BY COUNSEL.”

 

SECTION 2.2. Payment
of the Purchase Price. At the Closing, the Purchaser shall pay the Stock Consideration by delivery to the Seller of one
or more certificates representing the same and shall coordinate the payment of the Seller Liabilities.

 

SECTION 2.3. Allocation
of Purchase Price. The Purchase Price has been allocated among the Assets consistent with the requirements of Section 1060
and the regulations promulgated thereunder as set forth in Schedule 2.3, attached hereto. The parties agree to complete
jointly and to file separately Form 8594 with its federal income tax return consistent with such allocation for the tax year in
which the Closing occurs. Purchase acknowledges that the sale of tangible Web Assets, is subject to sales tax under California
law. Purchase shall be responsible for payment of such taxes as reported by Seller at Closing.

 

    	3

    	 

    

 

SECTION 2.4. Third
Party Consents. To the extent that Seller's rights under any contract or permit constituting a portion of the Asset, or
any other Asset, may not be assigned to Purchaser without the consent of another person which has not been obtained, this Agreement
shall not constitute an agreement to assign the same if an attempted assignment would constitute a breach thereof or be unlawful,
and Seller, at its expense, shall use its reasonable best efforts to obtain any such required consent(s) as promptly as possible.
If any such consent shall not be obtained or if any attempted assignment would be ineffective or would impair Purchaser’s
rights under the Asset in question so that Purchaser would not in effect acquire the benefit of all such rights, Seller, to the
maximum extent permitted by law and the Asset, shall act after the Closing as Purchaser’s agent in order to obtain for it
the benefits thereunder and shall cooperate, to the maximum extent permitted by law and the Asset, with Purchaser in any other
reasonable arrangement designed to provide such benefits to Purchaser. Notwithstanding any provision in this Section 2.4
to the contrary, Purchaser shall not be deemed to have waived its rights under Section 7.2(f) hereof unless and until Purchaser
either provides written waivers thereof or elects to proceed to consummate the transactions contemplated by this Agreement at Closing.

 

SECTION 2.5. Pre-Paid
Expense Reconciliation. To the extent Seller has prepaid certain expenses and other accounts payable relating to the
Web Assets between September 1, 2014 and the Closing, the Seller and Purchaser shall each be responsible for the payment of their
respective pro rata share of such prepaid expenses and accounts payable for such period. At Closing, Seller and Purchaser shall
determine their respective pro rata portions of the prepaid expenses including, without limitation, wage and payroll/insurance
expenses and all other Accounts Payable paid by Seller between September 1, 2014, and the Closing relating to the Web Assets, and
Purchaser shall thereupon reimburse Seller for its pro rata share of such prepaid expenses and Accounts Payable as a credit to
Seller at Closing.

 

SECTION
2.6. Accounts Receivable. Seller shall retain all accounts receivable relating to the Web Assets, including
prepaid accounts receivable, received by Seller prior to the Closing. Notwithstanding the foregoing, Seller shall retain only
the pro rata portion of all Web Asset related prepaid accounts receivable that Seller receives for work done, in process or billed
as of September 1, 2014, for the period between September 1, 2014 and the Closing, the balance of which shall be credited to Purchaser
at Closing.

 

ARTICLE III.

REPRESENTATIONS AND WARRANTIES OF

THE SELLER AND SARLITT

 

For purposes hereof,
“Seller's knowledge” or “the best of the Seller's knowledge” shall mean the knowledge of the Seller and
any manager, officer and/or employee of the Seller, and shall include information which such individuals actually knew or should
have known through the performance of the duties of such individuals in a manner that is customary in the industry including the
Business. The Seller and Sarlitt hereby jointly and severally represent and warrant to the Purchaser and the Parent, as of the
date hereof (except as to any representation or warranty which specifically relates to an earlier date), and as of the moment immediately
prior to Closing, as follows:

 

SECTION 3.1. Organization
and Qualification. The Seller is a corporation duly organized, validly existing and in good standing under the laws of
the state of California, with all requisite power and authority to own the Assets, lease its properties, and to conduct
the Business as it is presently conducted. The Seller is qualified to do business and is in good standing in the state of California,
which is the only jurisdiction in which it owns assets, leases property or conducts the Business. The Seller has delivered to the
Purchaser true and complete copies of the Seller Articles of Incorporation and bylaws, and all amendments thereto.

 

    	4

    	 

    

 

SECTION 3.2. Authorization.
The Seller has full power and authority to perform the transactions contemplated by this Agreement. The Seller's execution and
delivery of this Agreement and the Related Documents and its performance of the transactions contemplated herein have been duly
authorized by all requisite action, including, without limitation, by the Seller's officers and directors. This Agreement and the
Related Documents have been duly and validly executed and delivered by the Seller and constitute legal, valid and binding obligations
of the Seller, enforceable in accordance with their terms, except to the extent that such enforcement may be subject to applicable
bankruptcy, insolvency or similar laws relating to creditors' rights and remedies generally.

 

SECTION 3.3. No
Violation. Neither the execution nor delivery of this Agreement or the Related Documents by the Seller and the performance
of the Seller's obligations hereunder and thereunder, nor the purchase and sale of the Web Assets, will: (a) violate or result
in any breach of any provision of the Seller's Articles of Incorporation or bylaws; (b) except as set forth on Schedule 3.3
of the Disclosure Schedule violate, conflict with or result in a violation or breach of, or constitute a default (with or without
due notice or lapse of time or both) under, or permit the termination of, or require the consent of any other party to, or result
in the acceleration of, or entitle any party to accelerate (whether as a result of a change in control of any Seller or otherwise)
any obligation under, or result in the loss of any benefit under, any agreement to which the Seller is a party, or give rise to
the creation of any Encumbrance upon any of the Web Assets; or (c) violate any order, writ, judgment, injunction, decree, statute,
law, rule, regulation or ordinance of any court or governmental, quasi-governmental or regulatory department or authority (“Governmental
Authority”) applicable to the Seller, Sarlitt or any of the Web Assets.

 

SECTION 3.4. Ownership.
Bryan Sarlitt, with the address listed in Section 9.4, entitled Notice, below, is the sole shareholder of Seller.
No other person or entity has any equity or other interest except as a creditor in the Company.

 

SECTION 3.5. Consents
and Approvals. No filing or registration with, no notice to, and no permit, authorization, consent or approval of any Governmental
Authority or any other person is necessary for the Seller to execute and deliver this Agreement and the Related Documents, including
all contract and lease assignments or to enable the Purchaser after the Closing to continue to conduct the Business as presently
conducted.

 

SECTION 3.6. Financial
Statements. The Seller has delivered to the Purchaser the unaudited financial statements of the Seller for the fiscal
years ended December 31, 2013 and December 31, 2012 and unaudited and reviewed financial statements for the periods ended March
31, 2014 and June 30, 2014 (the “Financial Statements”). The Financial Statements are accurate in all
material respects and have been prepared from the books and records of the Seller and in accordance with income tax basis of accounting
and fairly present the financial condition of the Seller as of the date thereof and the results of the operations of the Business
for the period indicated. A copy of the Financial Statements is attached hereto as Schedule 3.6 of the Disclosure Schedule.
The Seller shall provide any and all information required in order to assist the Parent in filing a Current Report on Form 8-K
which shall include Seller’s, audited financial statements per Section 6.14, below, to be audited by Purchaser at
its expense after Closing.

 

SECTION 3.7. Absence
of Undisclosed Liabilities. Except as set forth on Schedule 3.7 of the Disclosure Schedule, on December 31, 2013,
the Seller had no liability (whether accrued, absolute, contingent or otherwise, and whether then due or to become due) nor loss
contingency, except as reflected on the Financial Statements, which would be required to be included therein in accordance with
cash based accounting, and the Seller and Sarlitt have no knowledge of any valid basis for the assertion of any such liability
or loss contingency.

 

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SECTION 3.8. Absence
of Certain Changes. Except as disclosed in  Schedule 3.8 of the Disclosure Schedule, since June 30, 2014, the Seller
has conducted the Business and utilized the Web Assets in the usual ordinary course, and, without limiting the generality of the
foregoing, since such date, there has not been: (a) a Material Adverse Effect (as hereinafter defined); (b) any capital expenditure
or commitment thereof in excess of $25,000 individually or $50,000 in the aggregate, or the making or any loans or advances; (c)
any sale, lease, license, Encumbrance or other transfer or disposition of any assets or properties of the Seller, except in the
ordinary course of the Business; (d) any forgiveness or cancellation of any debts or claims; (e) any entry into or commitment to
enter into any material contract by the Seller or any change or amendment to any material contract, or any entry into any or commitment
to enter into any contract with an affiliate of the Seller; (f) any damage, destruction or loss to the properties or assets owned,
leased or used by the Seller, whether or not covered by insurance, which adversely affected the operations of the Business; (g)
any change by the Seller in its financial or tax accounting principles or methods, or any failure to maintain the books, accounts
and records of the Seller in the usual, regular and ordinary manner on a basis consistent with prior practice and in accordance
with income tax basis of accounting.; (h) any acquisition (by merger, consolidation or acquisition of stock or assets) by the Seller
of any business entity or division or significant assets thereof; (i) any change made or authorized in the Seller's certificate
of incorporation or by-laws; or (j) any failure by the Seller to use its customary best efforts to preserve the Seller's goodwill
with suppliers, customers and others with which it has business relationships and to maintain its business, employees, licenses
and operations consistent with past practices. For purposes of this Agreement, a “Material Adverse Effect”
means any event, occurrence, fact, condition or change that is, or could reasonably be expected
to become, individually or in the aggregate, materially adverse to (a) the business, results of operations, condition (financial
or otherwise) or assets of the Business, (b) the value of the Web Assets, or (c) the ability of Seller to consummate the transactions
contemplated hereby on a timely basis.

 

SECTION 3.9. Litigation.
Except as set forth in Schedule 3.9 of the Disclosure Schedule, there is no action, dispute, suit, litigation, hearing,
inquiry, proceeding, arbitration or investigation, as it relates to the Web Assets, pending or threatened against the Seller or
any of its properties, assets or rights, before any court, arbitrator or Governmental Authority, nor is there any judgment, decree,
injunction, rule or order of any court, arbitrator or Governmental Authority outstanding against, and unsatisfied by, the Seller
(any of the foregoing being herein referred to as “Existing Litigation”), nor to the Seller’s knowledge,
does any fact or condition exist which could reasonably be expected to serve as a basis for the assertion of any such action, suit,
inquiry, judicial or administrative proceeding, arbitration or investigation. There is no action, suit, proceeding or investigation
by any Seller pending or that the Seller intends to initiate or is considering initiating.

 

SECTION 3.10. Title
to Web Assets. Except as set forth in Schedule 3.10 of the Disclosure Schedule, the Seller has good
and marketable title to the Web Assets, free and clear of any and all liens and Encumbrances (except for those properties or
assets disposed of in the ordinary course of business).

 

SECTION 3.11. Contracts.
Schedule 3.11 of the Disclosure Schedule sets forth a complete and accurate list of all of the contracts, agreements
and arrangements, whether written or oral, formal or informal, which relate to the Web Assets (the “Material Contracts”).
Other than as set forth in Schedule 3.11 of Disclosure Schedule, the Seller is not in default with respect to any obligation
to be performed under any Material Contract, and to the knowledge of the Seller, each other party to a Material Contract is not
in default with respect to any obligation to be performed. Except as set forth in Schedule 3.11 of the Disclosure Schedule,
no consent by, notice to or approval from any third party is required under any Material Contract as a result of or in connection
with the execution, delivery or performance of this Agreement and/or the Related Agreements or the consummation of the transactions
contemplated herein. The contracts to be assumed by the Purchaser include the contracts marked with an asterisk on Schedule
3.11.

 

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SECTION 3.12. Employee
Benefit Plans; Labor Relations; Employees.

 

(a)Schedule
3.12(a) of the Disclosure Schedule contains a complete and accurate list of each employee benefit plan, program, agreement
or arrangement, whether written or oral, covering employees, former employees or managers of the Seller, or providing benefits
to such persons in respect of services provided to the Seller (collectively, the “Benefit Plans”). Schedule
3.12(a) of the Disclosure Schedule indicates which of the Benefit Plans is an “employee benefit plan” within the
meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”),
and which of the Benefit Plans is subject to Section 302 or Title IV of ERISA. With respect to each Benefit Plan, the Seller heretofore
delivered to the Purchaser a accurate and complete copy of such Benefit Plan and any amendments thereto (or if the Benefit Plan
is not a written plan, an accurate and detailed written description thereof), and, if applicable, (i) any related trust or other
funding documents, and (ii) any reports or summaries required under ERISA and the most recent determination letter received from
the Internal Revenue Service with respect to each Benefit Plan intended to qualify under section 401 of the Code.

 

(b)Seller is not
a party to any collective bargaining agreement or other labor agreement with any union or labor organization, and to the knowledge
of the Seller or Sarlitt, there is no activity or proceeding of any labor organization or employee group to organize any such employees.

 

(c)Schedule
3.12(c) of the Disclosure Schedules contains a list of all persons who are employees,
independent contractors or consultants of the Business as of the date hereof, including any employee who is on a leave of absence
of any nature, paid or unpaid, authorized or unauthorized, and sets forth for each such individual the following: (i) name; (ii)
title or position (including whether full or part time); (iii) hire date; (iv) current annual base compensation rate; (v) commission,
bonus or other incentive-based compensation; and (vi) a description of the fringe benefits provided to each such individual as
of the date hereof. As of the date hereof, all compensation, including wages, commissions and bonuses payable to all employees,
independent contractors or consultants of the Business for services performed on or prior to the date hereof have been paid in
full and there are no outstanding agreements, understandings or commitments of Seller with respect to any compensation, commissions
or bonuses.

 

SECTION 3.13. Taxes.

 

(a)Except as set
forth in Schedule 3.13 of the Disclosure Schedule or attachment thereto: (i) , the Seller has timely filed or caused to
be filed with appropriate governmental agencies or departments all Federal, state, local and foreign returns (the “Tax
Returns”) for Taxes (as hereinafter defined) required to be filed by it; (ii) , the Seller has made available to
the Purchaser complete and accurate copies of such Tax Returns for the past three (3) years; (iii) , the Seller has paid or caused
to be paid all Taxes (including any additions or penalties if any) if any required to be paid by the Seller in respect of the periods
for which its Tax Returns are due, and will establish an adequate accrual or reserve for the payment of all Taxes payable in respect
of the period, including portions thereof, subsequent to the last of said periods up to and including the Closing Date; (iv) no
extensions or waivers of statutes of limitations have been given or requested with respect to any Taxes (as hereinafter defined)
of Seller; (v) all deficiencies asserted, or assessments made, against Seller as a result of any examinations by any taxing authority
have been fully paid; (vi) Seller is not a party to any action by any taxing authority and there are no pending or threatened actions
by any taxing authority; and (vii) there are no Encumbrances for Taxes upon any of the Web Assets nor is any taxing authority in
the process of imposing any Encumbrances for Taxes on any of the Web Assets.
The Tax Returns are complete and accurate in all respects, and the calculations and deductions set forth therein
have been made, in all respects, in compliance with all applicable Tax statutes, laws, rules and regulations.

 

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(b)The term “Tax”
or “Taxes” shall include all taxes, charges, withholdings, fees, levies, penalties, additions, interest
or other assessments imposed by any United States Federal, state or local and foreign or other taxing department or authority on
any Seller (including, without limitation, as a result of being a member of an affiliated, combined or unitary group or as a result
of any obligation arising out of an agreement to indemnify any other person), and including, but not limited to, those related
to income, gross receipts, gross income, sales, use, excise, occupation, services, leasing, valuation, transfer, license, customs
duties or franchise.

 

SECTION
3.14. Environmental Matters. Except as disclosed in Schedule 3.14 of the Disclosure Schedule, (i) the Seller
is in full compliance with all Environmental Laws, (ii) the Seller does not have knowledge of any notice of any suit, litigation,
arbitration, hearing, investigation, dispute or other action (whether civil, criminal, administrative or investigative) brought
by or before any court, Governmental Authority or arbitration. “Environmental Laws” means all applicable
federal, state, or local laws, regulations, ordinances, decrees, rules, judgments, orders or directives now or hereinafter in effect
relating to the protection of human health, safety or the environment, or otherwise relating to hazardous substances generation,
production, use, storage, treatment, transportation or disposal.

 

SECTION 3.15. Compliance
with Applicable Laws; Permits and Licenses. Schedule 3.15 of the Disclosure Schedule sets forth all of the licenses,
franchises, permits, consents and authorizations necessary for the lawful conduct of the Business. Except as set forth in Schedule
3.15 of the Disclosure Schedule, the Seller properly holds, and at all relevant times has held, all material licenses, franchises,
permits, consents and authorizations necessary for the lawful conduct of the Business, and the Business is not being and, during
the relevant statute of limitations period, has not been conducted in violation of any provision of any federal, state, local or
foreign statute, law, ordinance, rule, regulation, judgment, decree, order, concession, grant, franchise, permit, consent or license
or other governmental authorization or approval (“Law”) applicable to it. Except as set forth in Schedule
3.15 of the Disclosure Schedule, the Seller has not received any notification of any failure by the Seller to comply with any
Law applicable to it.

 

SECTION 3.16. Brokers'
Fees and Commissions. Neither the Seller nor any of its managers, officers, employees or agents has employed any investment
banker, broker, finder or intermediary, and no fee or other commission is owed to any third party, in connection with the
transactions contemplated herein.

 

SECTION 3.17. Proprietary
Rights.

 

(a)Set forth in
Schedule 3.17(a) of the Disclosure Schedule is a complete and accurate list of all patents, registered copyrights, trademarks,
trade names, trade secrets and all other intellectual property in which the Seller has proprietary rights and which relates to
the Web Assets (hereinafter referred to as the “Proprietary Rights”) and all licenses, sublicenses or
other agreements with respect thereto. The Seller owns all of the Proprietary Rights and to the best of Seller’s knowledge,
the use of such Proprietary Rights does not infringe upon the rights of any other person or entity. The Seller has not received
any notice of a claim of such infringement nor was any such claims the subject of any action, suit or proceeding involving the
Seller. The Seller has no knowledge of any infringement or improper use by any third party of the Proprietary Rights, nor has the
Seller instituted any action, suit or proceeding in which an act constituting an infringement of any of the Proprietary Rights
was alleged to have been committed by a third party.

 

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(b)Schedule
3.17(b) of the Disclosure Schedule identifies (i) all of the software and computer databases (collectively, the “DataBases”)
that are used in the conduct of the Web Assets, (ii) states whether such DataBases are owned or licensed by the Seller and, (iii)
if licensed, the name of such licensor. Except as set forth on Schedule 3.17(b) of the Disclosure Schedule, the Seller has
all legal right to use the DataBases as they are currently being used, and the Purchaser will continue to have the legal right
to use the DataBases in this manner following the consummation of the transactions contemplated herein. The use of the DataBases
does not infringe upon the rights of any other person or entity, nor has any Seller received any notice of a claim of such infringement.
Except as listed on Schedule 3.17(b) of the Disclosure Schedule, there are no licenses, sublicenses or other agreements
relating to the use of the DataBases by the Seller.

 

SECTION 3.18.
Accounts Receivable. The Accounts Receivable reflected on the Schedule 3.18 and the Accounts Receivable arising
after the date thereof (a) have arisen from bona fide transactions entered into by Seller involving the sale of goods or the rendering
of services in the ordinary course of business consistent with past practice; and (b) except as noted, constitute only valid, undisputed
claims of Seller not subject to claims of set-off or other defenses or counterclaims other than normal cash discounts accrued in
the ordinary course of business consistent with past practice.

 

SECTION 3.19. Insurance.
Schedule 3.19 of the Disclosure Schedule sets forth a complete and accurate list (including the name of the insurer, name,
address and telephone number of the insurance broker or agent, type of coverage, premium, policy number, limits of liability for
personal injury and property damage and expiration date) of all binders, policies of insurance, self insurance programs or fidelity
bonds, other than bonds for excise taxes and custom duties (collectively the “Insurance Policies”) maintained
by the Seller or for which the Seller is a named insured. All of the Insurance Policies have been issued under valid policies or
binders for the benefit of the Seller, and are in amounts and for risks, casualties and contingencies customarily insured against
by enterprises with operations similar to those of the Seller. Except as provided in Schedule 3.19, all of the Insurance
Policies are currently valid, issued, outstanding and enforceable, and each of the Insurance Policies shall remain in full force
and effect at least through the respective expiration dates as set forth on Schedule 3.19. There are no pending or asserted
claims against any Insurance Policy as to which any insurer has denied liability, and there are no claims under any Insurance Policy
that have been disallowed or improperly filed.

 

SECTION 3.20. Real
Estate. Schedule 3.20 of the Disclosure Schedule sets forth a complete and accurate list of all real property leased
or subleased by or on behalf of each Seller (the “Real Estate Leases”), if any. Other than as set forth
on Schedule 3.20 of the Disclosure Schedule, the Seller has delivered to the Purchaser accurate, correct, and complete copies
of the Real Estate Leases, as amended, which leases are not being transferred with the Web Assets. Seller has paid the Lease payments
through August of 2014, but intends to abandon the Lease at Closing if the lessor thereunder will not agree to terminate same.
Seller has claims against lessor under the lease, which it will retain, and all of lessor’s claims against Seller related
to abandonment or termination of the lease shall be subject to Seller’s indemnity obligations as set forth Article VIII,
below.

 

SECTION 3.21. Regulatory
Reports. The Seller has filed all material reports, registrations and statements, together with any amendments required
to be made with respect thereto, that it was required to file with any Governmental Authority, and has paid all fees or assessments
due and payable in connection therewith.

 

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SECTION 3.22. Customers
of the Seller. Schedule 3.22 of the Disclosure Schedules sets forth with respect to the Web Assets (i) each customer
who has paid aggregate consideration to Seller for goods or services rendered in an amount greater than or equal to $10,000 for
each of the two (2) most recent fiscal years (collectively, the “Material Customers”); and (ii) the amount
of consideration paid by each Material Customer during such periods. Seller has not received any notice, and has no reason to believe,
that any of the Material Customers has ceased, or intends to cease after the Closing, to use the goods or services related to the
Web Assets or to otherwise terminate or materially reduce its relationship related to the Web Assets.

 

SECTION 3.23. Untrue
or Misleading Statements. No representation or warranty contained in this Article III contains any untrue statement
of a material fact or omits to state a material fact required to be stated herein or necessary in order to make the statements
herein, in light of the circumstances under which they are made, not misleading.

 

SECTION 3.24.Condition
and Sufficiency of Web Assets. The tangible and intangible property included in the
Web Assets is in good operating condition, repair, and are adequate for their current uses. The Web Assets are sufficient for the
continued conduct of the Business as it related to such Web Assets after the Closing in substantially the same manner as conducted
prior to the Closing and constitute all of the rights, property and assets necessary to conduct the Business as it relates to the
Web Assets as currently conducted. 

 

ARTICLE IV.

REPRESENTATIONS AND WARRANTIES OF THE
PURCHASER

 

The Purchaser hereby
represents and warrants to the Seller, as of the date hereof (except as to any representation or warranty which specifically relates
to an earlier date) and immediately prior to Closing, as follows:

 

SECTION 4.1. Organization
and Qualification. The Purchaser is a corporation duly organized, validly existing and in good standing under the laws
of California, with all requisite power and authority and legal right to own assets, to lease properties, and to
conduct its business as presently conducted.

 

SECTION 4.2. Authorization.
The Purchaser has full corporate power and authority to execute and deliver this Agreement and the Related Agreements and to consummate
the transactions contemplated herein. The execution and delivery of this Agreement and the Related Documents by the Purchaser and
the performance by the Purchaser of its obligations hereunder have been duly authorized by all requisite corporate action. This
Agreement and the Related Documents have been duly and validly executed and delivered by the Purchaser and constitute the legal,
valid and binding obligation of the Purchaser, enforceable against the Purchaser in accordance with their terms, except to the
extent that such enforcement may be subject to applicable bankruptcy, insolvency, or similar laws relating to creditors' rights
and remedies generally.

 

SECTION 4.3. No
Violation. Neither the execution and delivery of this Agreement and the Related Documents by the Purchaser, nor the performance
by the Purchaser of its obligations hereunder, will: (a) violate or result in any breach of any provision of the Purchaser's Articles
of Incorporation or bylaws; or (b) violate any order, writ, judgment, injunction, decree, statute, rule or regulation of any court
or Governmental Authority applicable to the Purchaser.

 

SECTION 4.4. Consents
and Approvals. Except as listed on Schedule 4.4 of the Disclosure Schedule, no filing or registration with, no notice
to and no permit, authorization, consent or approval of any third party or any Governmental Authority not heretofore delivered
to the Seller is necessary for the Purchaser's consummation of the transactions contemplated herein.

 

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SECTION 4.5. Brokers'
Fees and Commissions. Neither the Purchaser nor any of its shareholders, directors, officers, employees or agents has employed
any investment banker, broker, finder or intermediary, and such no fee or other commission is owed to any third party, in connection
with the transactions contemplated herein.

 

SECTION 4.6. Untrue
or Misleading Statements. No representation or warranty contained in this Article IV contains any untrue statement
of a material fact or omits to state a material fact required to be stated herein or necessary in order to make the statements
herein, in light of the circumstances under which they are made, not misleading.

 

ARTICLE V.

REPRESENTATIONS AND WARRANTIES OF THE
PARENT

 

SECTION 5.1. Organization.
The Parent is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware, and
has all requisite power and authority to lease its properties and to conduct its business as it is presently conducted.
The Parent is qualified to do business and is in good standing in each jurisdiction in which it owns assets, leases property or
conducts its business. The Parent has delivered to the Seller true and complete copies of the Parent's Articles of Incorporation
and bylaws, and all amendments thereto.

 

SECTION 5.2. Authorization.
The Parent has full power and authority to perform the transactions contemplated by this Agreement. The Parent's execution and
delivery of this Agreement and the Related Documents and its performance of the transactions contemplated herein have been duly
authorized by all requisite action, including, without limitation, by the Parent's board of directors. This Agreement and the Related
Documents have been duly and validly executed and delivered by the Parent and constitute legal, valid and binding obligations of
the Parent, enforceable in accordance with their terms, except to the extent that such enforcement may be subject to applicable
bankruptcy, insolvency or similar laws relating to creditors' rights and remedies generally.

 

SECTION 5.3. Valid
Issuance.The Stock Consideration to be issued to the Note Holder at the Closing pursuant to Section 2.1 hereof,
when issued and delivered in accordance with the terms hereof, shall be duly and validly issued, fully paid and nonassessable and
free of all preemptive rights.

 

SECTION 5.4. Consents
and Approvals. No filing or registration with, no notice to, and no permit, authorization, consent or approval of any Governmental
Authority or any other person is necessary for the Parent to execute and deliver this Agreement and the Related Documents.

 

SECTION 5.5. Brokers'
Fees and Commissions. Neither the Parent nor any of its directors, officers, employees or agents has employed any investment
banker, broker, finder or intermediary, and no fee or other commission is owed to any third party, in connection with the
transactions contemplated herein.

 

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ARTICLE VI

COVENANTS

 

SECTION 6.1. Conduct
of the Business Prior to the Closing. During the period from the date of this Agreement and continuing until the Closing
Date, the Seller agrees that, except as expressly contemplated or permitted by this Agreement or to the extent that Purchaser shall
otherwise consent in writing, the Seller shall carry on the Business and use the Web Assets in the usual, regular and ordinary
course in substantially the same manner as heretofore conducted in all material respects. The Seller agrees to promptly notify
the Purchaser within two (2) business days of any event or series of events which has resulted in any of the representations and
warranties as to the Seller being misleading in any material respect (receipt of such notice will not be a waiver with respect
to the same). Without limiting the generality of the foregoing, prior to the Closing, and except as expressly contemplated or permitted
by this Agreement, the Seller will not, without the prior written consent of the Purchaser, take any action that would constitute
a change which violates the terms of Section 3.8 hereof.

 

SECTION 6.2. Access
to Information. During the period from the date of this Agreement and continuing until the Closing, at all reasonable times
without causing unreasonable disruption to the Web Assets or related business, the Seller shall give the Purchaser and its authorized
representatives full access to all personnel, offices and other facilities, and to all books and records of the Seller (including,
without limitation, Tax Returns and accounting work papers) and will permit the Purchaser to make, and will fully cooperate with
regard to, such inspections in order to conduct, among other things, interviews of individuals and visual inspections of facilities
as the Purchaser may reasonably require and will fully cooperate in such interviews and inspections and will cause the Seller's
officers to furnish to the Purchaser such financial and operating data and other information with respect to the Web Assets and
related business as the Purchaser may from time to time reasonably request.

 

SECTION 6.3. Maintenance
of Employee and Customer Relations. During the period from the date of this Agreement and continuing until the Closing,
the Seller shall use its best commercial efforts to retain the services and goodwill of the employees of the Business and the Assets
and to maintain the goodwill of its customers, and shall not take, nor permit any manager, officer, employee, agent or independent
contractor of the Seller to take, any action (i) with respect to any employee, which action is intended to solicit, entice, persuade
or induce such employee to terminate his or her employment with the Seller which action is in contravention of the foregoing requirements,
and (ii) with respect to its customers, which action is intended to cause its customers, to terminate or substantially diminish
their business dealings with the Seller which action is in contravention of the foregoing requirements.

 

SECTION 6.4. All
Reasonable Efforts. Subject to the terms and conditions herein provided, each of the parties hereto agrees to use all reasonable
efforts to take, or cause to be taken, all action, and to do, or cause to be done as promptly as practicable, all things necessary,
proper and advisable under applicable laws and regulations to consummate the transactions contemplated by this Agreement including,
without limitation, fulfillment of the Conditions of Closing set forth in Article VI hereof. If at any time after the Closing
any further action is necessary or desirable to carry out the purposes of this Agreement including, without limitation, the execution
of additional instruments, the proper officers and directors of the Purchaser and the Seller shall take all such necessary action.

 

SECTION 6.5. Consents
and Approvals. The parties hereto each will cooperate with one another and use all reasonable efforts to prepare all necessary
documentation to effect promptly all necessary filings and to obtain all necessary permits, consents, approvals, orders
and authorizations of or any exemptions by, all third parties and Governmental Authorities necessary to consummate the transactions
contemplated herein.

 

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SECTION 6.6. Public
Announcements. The Purchaser and the Seller will consult with each other and will mutually agree upon the content and timing
of any press releases or other public statements with respect to the transactions contemplated by this Agreement and shall not
issue any such press release or make any such public statement prior to such consultation and agreement, except as may be required
by applicable law or based upon the advice of counsel that such disclosure would be prudent under applicable securities laws.

 

SECTION 6.7. Confidentiality.
The Seller shall not use, publish, or disclose to any other person any confidential or proprietary information comprising part
of the Web Assets or relating to the Business or the transactions contemplated by this Agreement; provided, however,
that the foregoing restrictions shall not apply to information: (a) that is necessary to enforce the rights of the Seller under,
or defend against a claim asserted under, this or any other agreement with the Purchaser, (b) that is necessary or appropriate
to disclose to any Governmental or Regulatory Authority having jurisdiction over the Seller, or as otherwise required by law, (c)
that becomes generally known other than through a breach of this Agreement by the Seller, or (d) that is necessary or appropriate
in the ordinary course of the Seller's business. The Seller, acknowledges that the Purchaser does not have an adequate remedy at
law for the breach of this Section 6.7 and that, in addition to any other remedies available, injunctive relief may be granted
for any such breach.

 

SECTION 6.8. Disclosure
Supplements. Prior to the Closing, each party to this Agreement will promptly supplement or amend the Disclosure Schedule
with respect to any matter heretofore existing or hereafter arising which, if existing, occurring or known at the date of this
Agreement, would have been required to be set forth or described in such Disclosure Schedule or which is necessary to correct any
information in such Disclosure Schedule which has been rendered inaccurate thereby. For purposes of determining the accuracy of
the representations and warranties of the Seller and Sarlitt contained in Article III hereof and for purposes of determining satisfaction
of the conditions set forth in Section 7.2 hereof, the Disclosure Schedule delivered by the Seller shall be deemed to include only
that information contained therein on the date of this Agreement and shall be deemed to exclude any information contained in any
subsequent supplement or amendment thereto.

 

SECTION 6.9. Restrictions
on Transfer. The Seller agrees that prior to a termination under this Agreement pursuant to Section 9.7 and Section
9.8 hereof, it will not directly or indirectly sell, assign, transfer, give, pledge, encumber or otherwise dispose of any portion
of the Web Assets and the Seller further agrees not to enter into any agreement relating to these matters or to conduct any discussions
related to any of these matters.

 

SECTION 6.10. No
Solicitation of Transaction. The Seller shall not, and shall use its best efforts to cause its representatives not to,
directly or indirectly, take any of the following actions with any person other than the Purchaser without the prior written consent
of the Purchaser: (A) solicit, initiate, facilitate or encourage, or furnish information with respect to the Seller, in connection
with, any inquiry, proposal or offer with respect to any merger, consolidation or other business combination involving the Seller
or the acquisition of all or a substantial portion of the assets of, or any securities of, the Seller, except as relates to the
Seller’s IT Assets (an “Alternative Transaction”); (B) negotiate, discuss, explore or otherwise
communicate or cooperate in any way with any third party with respect to any Alternative Transaction; or (C) enter into any agreement,
arrangement or understanding with respect to an Alternative Transaction or requiring the Seller to abandon, terminate or refrain
from consummating a transaction with the Purchaser.

 

SECTION 6.11. No
Trading. The Seller and its shareholder, Bryan Sarlitt, directly or indirectly, and no person acting on behalf of or pursuant
to any understanding with them, has engaged in any transactions in the securities of the Parent (including, without limitation,
any short sales involving any of the SSPC’s securities) since the time that the Seller was first contacted by the Parent,
any of Parent’s representatives or any other person regarding Parent’s acquisition of the Assets.

 

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SECTION 6.12. Non-Competition;
Non-solicitation.

 

(a) For a period
of two (2) years commencing on the Closing Date (the “Restricted Period”), neither Seller nor Bryan Sarlitt
(except for work provided to Purchaser post-Closing, if any, or in association with consulting services to buyer of the Seller’s
IT Assets, if any) shall directly or indirectly, (i) engage in or assist others in engaging in a business that competes with the
Web Assets being acquired by the Purchaser (the “Restricted Business”) within the State of California
(the “Territory”); (ii) have an interest in any entity that engages directly or indirectly in the Restricted
Business in the Territory in any capacity, including as a partner, shareholder, member, employee, principal, agent, trustee or
consultant; or (iii) cause, induce or encourage any material actual or prospective client, customer, supplier or licensor of the
Business, as it relates to use of the Web Assets (including any existing or former client or customer of Seller and any person
that becomes a client or customer involved in the Web Assets of the Business after the Closing), or any other person who has a
material business relationship with the Business, to terminate or modify any such actual or prospective relationship. Notwithstanding
the foregoing, Seller may work for Purchaser, its Parent or the purchaser of the Seller’s IT Assets or may own, directly
or indirectly, solely as an investment, securities of any Person traded on any national securities exchange if Seller is not a
controlling Person of, or a member of a group which controls, such person and does not, directly or indirectly, own five percent
(5%) or more of any class of securities of such entity.

 

(b)Seller acknowledges
that a breach or threatened breach of this Section 6.12 would give rise to irreparable harm to Purchaser, for which monetary
damages would not be an adequate remedy, and hereby agrees that in the event of a breach or a threatened breach by Seller of any
such obligations, Purchaser shall, in addition to any and all other rights and remedies that may be available to it in respect
of such breach, be entitled to equitable relief, including a temporary restraining order, an injunction, specific performance and
any other relief that may be available from a court of competent jurisdiction (without any requirement to post bond).

 

(c) Seller acknowledges
that the restrictions contained in this Section 6.12 are reasonable and necessary to protect the legitimate interests of
Purchaser and constitute a material inducement to Purchaser to enter into this Agreement and consummate the transactions contemplated
by this Agreement. In the event that any covenant contained in this Section 6.12 should ever be adjudicated to exceed the
time, geographic, product or service or other limitations permitted by applicable law in any jurisdiction, then any court is expressly
empowered to reform such covenant, and such covenant shall be deemed reformed, in such jurisdiction to the maximum time, geographic,
product or service or other limitations permitted by applicable law. The covenants contained in this Section 6.12 and each
provision hereof are severable and distinct covenants and provisions. The invalidity or unenforceability of any such covenant or
provision as written shall not invalidate or render unenforceable the remaining covenants or provisions hereof, and any such invalidity
or unenforceability in any jurisdiction shall not invalidate or render unenforceable such covenant or provision in any other jurisdiction.

 

SECTION 6.13. Bulk
Sale Laws. The parties hereby waive compliance with the provisions of any bulk sales,
bulk transfer or similar laws of any jurisdiction that may otherwise be applicable with respect to the sale of any or all of the
Web Assets to the Purchaser; it being understood that any liabilities arising out of the failure of Seller to comply with the requirements
and provisions of any bulk sales, bulk transfer or similar laws of any jurisdiction which would not otherwise constitute Assumed
Liabilities shall be treated as Excluded Liabilities.

 

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SECTION 6.14. Financial
Statements. Seller and Sarlitt shall assist Parent in the preparation of audited financial statements by PCAOB
approved auditors relating to the Assets, at Purchaser’s sole expense, with such audited being completed no later than seventy-five
(75) days after the Closing.

 

SECTION 6.16.
Pay Off of Seller Liabilities. Seller and Sarlitt shall use the proceeds from the sale of the Web Assets to pay off
the Seller liabilities as set forth on Schedule 6.16.

 

ARTICLE VII

CLOSING CONDITIONS

 

SECTION 7.1. Conditions
to Each Party's Obligations under this Agreement. Each party's obligations under Article I and Article II of this Agreement
shall be subject to each of the Parties having obtained any and all approvals, consents, licenses, permits and authorizations from
Governmental Authorities, if any, in form and substance satisfactory to the other Party, necessary to permit such Party to perform
its obligations hereunder, to consummate the transactions contemplated herein, and to continue to conduct the Business as presently
conducted and in accordance with applicable Law.

 

SECTION 7.2. Conditions
to the Obligations of the Purchaser. The Purchaser's obligations under this Agreement shall be further subject to the satisfaction
or to the waiver by the Purchaser of the following conditions precedent:

 

(a)Performance
of Obligations of Seller. Each of the Seller's pre-Closing obligations shall have been duly performed in all material respects,
and each of the representations and warranties of the Seller contained in this Agreement shall be true and correct, in all material
respects, as of the date of this Agreement and as of the Closing as if made immediately prior to the Closing (except as to any
representation or warranty which specifically relates to another date), and the Purchaser shall have received a certificate to
that effect signed by an officer of the Seller and/or Sarlitt, in a form reasonably satisfactory to the Purchaser.

 

(b)Secretary's
Certificate. The Purchaser shall have received from the Secretary of the Seller, in a form reasonably satisfactory to the Purchaser,
a certificate enclosing the filed Article of Incorporation Seller, resolution authorizing all of the transactions contemplated
herein, and a good standing certificate of the Seller dated as of a date reasonably close to the Closing Date.

 

(c)Shareholder's
Certificate. The Purchaser shall have received a certificate from Bryan A. Sarlitt, the principal shareholder of the Seller,
in a form reasonably satisfactory to the Purchaser, that the representations and warranties of the Seller set forth in Article
III hereof are true and accurate as of the execution hereof and as of the Closing Date.

 

(d)Financial
Statements. The Seller shall have delivered to the Purchaser the audited financial statements of the Seller as of December
31, 2013 and as of December 31, 2012 and unaudited and reviewed financial statements for the periods ended March 31, 2014 and June
30, 2014.

 

(e)Contract
Consents. Except as set forth in Section 2.4, any and all requisite consents, waivers or authorizations from third parties
required for the assumption by the Purchaser of the assumed contracts shall have been obtained without any adverse effect on the
terms of such contracts.

 

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(f)Bill of Sale.
The Purchaser shall have received a Bill of Sale selling and transferring to Purchaser the Business and all of the Assets, executed
by each Seller and in the form and substance reasonable acceptable to the Parties and all other transfer documents reasonably requested
by it.

 

(g)Legal Opinion.
The Purchaser shall have received an opinion of Duggan Smith & Heath LLP substantially in the form and substance reasonable
acceptable to the Purchaser.

 

(h)Seller Liabilities.
All of the Seller Liabilities and Encumbrances shall have been terminated through payment in cash or other property, or otherwise,
and the Seller shall have no liability for the same including principal, interest, fees and other changes of any description whatsoever.

 

(i)Due Diligence.
Purchaser and Parent shall have completed its due diligence of the operation of the Assets and Business of the Seller, the results
of which shall have been deemed satisfactory in the sole discretion of Purchaser and Parent, their agents, employees and representatives.

 

(j)Note &
Personal Guaranty. The Parent and Snyder Computer Service, Inc. shall have duly executed a secured promissory note in substantially
the form annexed hereto as Exhibit B (the “Promissory Note”), which shall facilitate the
purchase by Snyder Computer Service, Inc. of the Seller’s IT Assets. Tim Snyder shall have executed the Personal Guaranty
in substantially the form annexed hereto as Exhibit C, which shall serve as a guaranty of the payment of the Promissory
Note.

 

(k)IT Asset
Purchase Agreement. The Seller and Tim Snyder shall have duly executed the Asset Purchase Agreement substantially in the form
annexed hereto as Exhibit D (the “IT Asset Purchase Agreement”) simultaneously with the
Closing relating to Tim Snyder’s purchase of Seller’s IT Assets.

 

(l)Purchase
and Waiver Agreement & Lock Up and Leak Out Agreement. The Company and each Note Holder of Seller shall have duly executed
the Purchase and Wavier Agreement/Lock Up and Leak Out Agreement substantially in the form annexed hereto as Exhibit A
and Exhibit A-1 relating to the disposition of the Stock Consideration.

 

(m)Other Documents.
The Purchaser shall have received any such other documents or other materials it may reasonably request to consummate the transactions
contemplated herein.

 

SECTION 7.3. Conditions
to the Obligations of the Seller. The Seller's obligations under Article I and Article II of this Agreement shall be further
subject to the satisfaction or to the waiver by the Seller of the following conditions precedent:

 

(a)Closing Payment.
The Seller shall have received the Stock Consideration and the Purchaser and Parent shall have satisfied the Seller Liabilities.

 

(b)Performance
of Obligations of Purchaser. Each of the pre-Closing obligations of the Purchaser shall have been duly performed, and the representations
and warranties of the Purchaser contained in this Agreement shall be true and correct, in all material respects as of the date
of this Agreement and as of the Closing Date as though made immediately prior to the Closing (except as to any representation or
warranty which specifically relates to another date), and the Seller shall have received a certificate to that effect signed by
an officer of the Purchaser substantially in a form reasonably acceptable to the Seller.

 

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(c)Other Documents.
The Seller shall have received from the Purchaser any such other documents or other materials as the Seller may reasonably request
to consummate the transactions contemplated herein.

 

ARTICLE VIII

SURVIVAL AND INDEMNIFICATION

 

SECTION 8.1. Survival.
All representations, warranties, covenants and agreements contained in this Agreement and the Related Documents shall be deemed
to have been relied upon by the parties hereto, and shall survive the Closing; provided that any such representations, warranties,
covenants and agreements shall be fully effective and enforceable only for a period of three (3) years following the Closing Date,
and shall thereafter be of no further force or effect, except that the representations and warranties set forth in Section 3.12
(Employee Benefit Plans; Labor Relations), Section 3.13 (Taxes) and Section 3.14 (Environmental Matters) and the
indemnification obligations of any party hereto in respect of any misrepresentations or related warranties to which such party
had knowledge prior to the Closing, shall survive indefinitely. Additionally, the parties agree that the indemnification obligations
set forth in this Article VII shall survive with respect to any Existing Litigation and as to any claims made within the applicable
survival period until finally resolved. The representations, warranties, covenants, and agreements contained in this Agreement
or in any certificate, schedule, document, or other writing delivered by or on behalf of any party pursuant hereto shall not be
affected by any investigation, verification, examination or knowledge acquired or capable of being acquired by any other party
hereto or by any person acting on behalf of any such other party.

 

SECTION 8.2. Indemnification
of the Purchaser. From and after the Closing, the Seller and Sarlitt, jointly and severally agree to indemnify, defend
and hold harmless the Purchaser and the Parent and their respective directors, officers, employees, owners, agents and affiliates
and their successors and assigns or heirs and personal representatives, as the case may be (each a “Purchaser Indemnified
Party”) from and against, and to promptly pay to or reimburse a Purchaser Indemnified Party for, any and all losses,
damages and expenses (including, without limitation, reasonable attorneys' and other advisors' fees and expenses), suits, actions,
claims, deficiencies, liabilities or obligations (collectively, the “Losses”) sustained by such Purchaser
Indemnified Party relating to, caused by or resulting from: (a) any misrepresentation, breach of warranty, or failure to fulfill
or satisfy any covenant or agreement made by the Seller; (b) the operations and business of the Seller through the Closing Date,
to the extent such Losses do not constitute Assumed Liabilities; (c) any prepaid expenses or accounts payable as set forth in Section
2.5 hereof; and (d) the Excluded Liabilities.

 

SECTION 8.3. Indemnification
of the Seller. From and after the Closing, the Purchaser agrees to indemnify, defend and hold harmless the Seller and its
directors, officers, employees, owners, agents and affiliates and their successors and assigns or heirs and personal representatives,
as the case may be (each, a “Seller Indemnified Party”) from and against, and to promptly pay to or reimburse
a Seller Indemnified Party for, any and all Losses sustained by such Seller Indemnified Party relating to, caused by or resulting
from: (a) any misrepresentation, breach of warranty, or failure to fulfill or satisfy any covenant or agreement made by the Purchaser
contained herein or in any of the Related Documents; (b) the operation of the Business solely by the Purchaser after the Closing;
and (c) the Assumed Liabilities.

 

SECTION 8.4. Indemnification
Procedure for Third Party Claims Against Indemnified Parties.

 

(a)Notice.
With respect to any matter for which indemnification is claimed pursuant to Section 8.2, the Purchaser Indemnified Party
will notify the Seller in writing promptly after becoming aware of such matter. With respect to any matter for which indemnification
is claimed pursuant to Section 8.3, the Seller Indemnified Party will notify the Purchaser in writing promptly after becoming
aware of such matter. A failure or delay to promptly notify an indemnifying party of a claim will only relieve such indemnifying
part of its obligations pursuant to this Section 8 to the extent, if at all, that such party is prejudiced by reason of
such failure or delay.

 

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(b)Defense of
Claim. Promptly after receipt of any notice pursuant to Section 8.4, the indemnifying party shall defend, contest, settle,
compromise or otherwise protect the indemnified party against any such claim for Losses at its own cost and expense. Each indemnified
party will have the right, but not the obligation, to participate, at its own expense, in the defense by counsel of its own choosing;
provided, however, that the indemnifying party will be entitled to control the defense unless the indemnified party has relieved
the indemnifying party in writing from liability with respect to the particular matter. The indemnified party shall reasonably
cooperate with the indemnifying party’s requests, and at the indemnifying party’s expenses (including, but not limited
to, indemnifying party’s paying or reimbursing the indemnified party’s reasonable attorneys’ fees and investigation
expenses), concerning the defense of the claim for Losses. The indemnifying party shall include the indemnified party in any settlement
discussions.

 

(c)Failure to
Defend. If the indemnifying party does not timely defend, contest or otherwise protect against a claim for Losses after receipt
of the required notice, the indemnified party will have the right, but not the obligation, to defend, contest or otherwise protect
against same, make any compromise or settlement therefore, and record the entire cost therefore from the indemnifying party, including,
without limitation, reasonable attorneys’ fees, disbursements and all amounts paid as a result of such suit, action, investigation
and Losses.

 

ARTICLE IX

GENERAL PROVISION

 

SECTION 9.1. Amendment
and Modification; Waiver of Compliance. Neither the Purchaser, on the one hand, nor the Seller and Sarlitt, on the
other hand, will be deemed as a consequence of any delay, failure, omission, forbearance or other indulgence of such party:
(i) to have waived, or to be estopped from exercising, any of its rights or remedies under this Agreement; or (ii) to have
modified or amended any of the terms of this Agreement, unless such modification or amendment is set forth in writing and
signed by the party to be bound thereby. No single or partial exercise by the Purchaser or the Seller of any right or remedy
will preclude any other right or remedy, and a waiver expressly made in writing on one occasion will be effective only in
that specific instance and only for the precise purpose for which given, and will not be construed as a consent to or a
waiver of any right or remedy on any future occasion or a waiver of any right or remedy against any other party.

 

SECTION 9.2. Validity.
If any provision of this Agreement or the application of any such provision to any party hereto or any circumstances relating hereto
shall be determined by any court of competent jurisdiction to be invalid and unenforceable to any extent, the remainder of this
Agreement or the application of such provision to such party or circumstances, other than those to which it is so determined to
be invalid and unenforceable, shall not be affected thereby, and each provision hereof shall be validated and shall be enforced
to the fullest extent permitted by Law.

 

SECTION 9.3. Parties
in Interest. This Agreement shall not confer upon any other person any rights or remedies of any nature whatsoever.

 

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SECTION 9.4. Notices.
All notices and other communications hereunder shall be in writing and shall be deemed given upon the earlier to occur of delivery
thereof if by hand or upon receipt or on the second next business day after deposit if sent by a recognized overnight delivery
service or upon transmission if sent by facsimile (in each case with receipt verified) as follows:

 

	If to the Purchaser:	With a copy to:
	
        SpendSmart Networks, Inc.

        805 Aerovista Place, Suite 205

        San Luis Obispo,
        CA 93401

         

         
	
        Seth I. Rubin, Esq.

        Ruskin Moscou Faltischek, P.C.

        1425 RXR Plaza

        East Tower, 15th Floor

        Uniondale, NY 11556

         

	If to the Seller or Bryan Sarlitt, to:	With a copy to:
	
        Bryan Sarlitt

        3200 Rockview Pl.

        San Luis Obispo, CA 93401

         
	
        Linda Somers Smith, Esq.

        Duggan Smith & Heath LLP

        560 Higuera Street, Suite B

        San Luis Obispo, CA 93401

 

provided that each of the parties
hereto shall promptly notify the other parties hereto of any change of address, which address shall become such party's address
for the purposes of this Section 9.4.

 

SECTION 9.5. Governing
Law; Consent to Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of the State
of California, without regard to the choice of law principles thereof. In the event of a dispute hereunder, there shall be exclusive
jurisdiction in the Federal and State courts with jurisdiction over San Luis Obispo County, California. The party prevailing shall
be entitled to recover its reasonable legal fees and expenses from the party not prevailing.

 

SECTION 9.6. Entire
Agreement. This Agreement, including the Disclosure Schedule, and the Related Documents embody the entire agreement and
understanding of the parties hereto and supersede all prior agreements and understandings between the parties hereto, whether written
or oral, express or implied, with respect to such subject matter herein and therein.

 

SECTION 9.7. Termination.
This Agreement may be terminated and the transactions contemplated hereby may be abandoned:

 

(i)by mutual written
consent of the Purchaser and the Seller;

 

(ii)by the Purchaser
if any of the representations or warranties of the Seller or Sarlitt contained herein are not in all material respects true, accurate
and complete, or if the Seller or Sarlitt breaches any covenant or agreement contained herein in any material respect, and the
same is not cured within 10 days after notice thereof;

 

(iii)by the Seller
if any of the representations or warranties of the Purchaser contained herein are not in all material respects true, accurate and
complete or if the Purchaser breaches any covenant or agreement contained herein in any material respect; and the same is not cured
within 10 days after notice thereof; or

 

(iv)By Purchaser
if (A) the Closing has not occurred by October 1, 2014 and (B) such party has performed all of its obligations hereunder and has
satisfied all of the conditions to Closing to be satisfied for the other party to proceed.

 

Section
9.8. Effect of Termination. In the event of the termination of this Agreement in accordance with this Article, this
Agreement shall forthwith become void and there shall be no liability on the part of any party hereto except: (a) as set forth
in this Article IX and Section 6.7 hereof; and (b) that nothing herein shall relieve any party hereto from liability
for any willful breach of any provision hereof.

 

    	19

    	 

    

 

Section
9.9. Assignment. The Seller may not assign any of its rights under this Agreement without the prior consent of the Purchaser.
The Purchaser may assign this Agreement without the prior consent of the Seller. Notwithstanding the foregoing, this Agreement
will apply to, be binding in all respects upon, and inure to the benefit of and be enforceable by the respective successors and
permitted assigns of the parties.

 

Section
9.10. Enforceability. If any provision of this Agreement is found to be unenforceable, the balance of this Agreement
shall be deemed enforceable without the provision in questions.

 

Section
9.11. Counterparts. This Agreement may be executed in one or more counterparts, each of which will be
deemed to be an original copy of this Agreement and all of which, when taken together, will be deemed to constitute one and the
same agreement. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf”
format data file, such signature shall create a valid and binding obligation of the Party executing (or on whose behalf such signature
is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original thereof.

 

Section
9.12. Expenses. Except as otherwise expressly provided in this Agreement, each party will bear its respective
expenses incurred in connection with the preparation, execution, and performance of this Agreement and the transactions contemplated
by this Agreement, including, without limitations, all fees and expenses of agents, representatives, counsel, and accountants.

 

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IN WITNESS WHEREOF,
each of the parties hereto has caused this Agreement to be executed as of the date first above written.

 

	 	PURCHASER:
	 	 	 
	 	THE SPENDSMART PAYMENTS COMPANY, a California Corporation
	 	 	 
	 	 	 
	 	By:  	/s/ Bill Hernandez
	 	 	Name:  Bill Hernandez 
	 	 	Title:    President
	 	 	 
	 	 	 
	 	PARENT:
	 	 	 
	 	SPENDSMART NETWORKS, INC., a Delaware Corporation
	 	 	 
	 	 	 
	 	By:  	/s/ Alex Minicucci 
	 	 	Name:  Alex Minicucci 
	 	 	Title:    Chief Executive Officer 
	 	 	 
	 	 	 
	 	SELLER:
	 	 	 
	 	TECHXPRESS, INC., a California corporation
	 	 	 
	 	 	 
	 	By:  	/s/ Bryan A. Sarlitt
	 	 	Name:  Bryan A. Sarlitt 
	 	 	Title:    Chief Executive Officer
	 	 	 
	 	 	 
	 	Bryan A. Sarlitt, Individually
	 	 	 
	 	 	 
	 	By:  	/s/ Bryan A. Sarlitt
	 	 	Name:  Bryan A. Sarlitt 

 

    	21

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