Document:

ex10x1.htm

    Exhibit 10.1

     

     

     

     

     

     

     

    
      AGREEMENT
AND PLAN OF MERGER

      

      BY
AND AMONG

      

      NEWGEN
BIOPHARMA CORPORATION,

      

      RETROSPETTIVA,
INC. AND

      

      RETROSPETTIVA
ACQUISITIONS, INC.

      

      

      

      Dated
as of July 22, 2010

       

       

       

       

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      TABLE OF
CONTENTS

       

      
      

       

      
        	 	 	Page
	

                ARTICLE
      I

              	

                DEFINITIONS 

              	 1
	 	1.1	

                Definitions 

              	 1
	 	1.2	

                Exhibits 

              	 8

      

       

      
        
          	

                  ARTICLE
      II

                	

                  THE
      MERGER 

                	 8
	 	2.1	

                  The
      Merger 

                	 8
	 	2.2	

                  Closing 

                	 8
	 	2.3	

                  Filing
      of Certificate of Merger 

                	 8
	 	2.4	Effect of
      Merger	 8
	 	2.5	Certificates of
      Incorporation and Bylaws	 9
	 	2.6	

                  Directors
      and Officers 

                	 9
	 	2.7	

                  Effect
      on Stock. 

                	 9
	 	2.8	

                  No
      Further Ownership Rights in Company Stock 

                	 10
	 	2.9	Exchange of
      Certificates.	 10
	 	2.10	

                  Exemption
      from Registration 

                	 11
	 	2.11	

                  Further
      Action 

                	 11

        

         

        
          
            	

                    ARTICLE
      III

                  	

                    

                      CONDITIONS
      TO CLOSING 

                    

                  	 11
	 	3.1	

                    

                      Conditions
      to the Obligations of the Company 

                    

                  	 11
	 	3.2	

                    

                      Conditions
      to Parent’s and the Merger Subsidiary’s
      Obligations 

                    

                  	 14

          

           

          
            
              
                	

                        ARTICLE
      IV

                      	

                        

                          COVENANTS
      PRIOR TO CLOSING 

                        

                      	 16
	 	4.1	

                        

                          Affirmative
      Covenants 

                        

                      	 16
	 	4.2	

                        

                          Negative
      Covenants 

                        

                      	 17
	 	4.3	

                        

                          Notice
      of Developments. 

                        

                      	 19
	 	4.4	

                        Exclusivity 

                      	 20
	 	4.5	

                        HSR
      Act Filing 

                      	 20
	 	4.6	

                        

                          Consents 

                        

                      	 20
	 	4.7	

                        

                          Publicity 

                        

                      	 20
	 	4.8	

                        

                          Super
      8-K Preparation and Filing 

                        

                      	 20
	 	4.9	

                        Other
      Filings 

                      	 21
	 	4.10	

                        

                          Company
      Shareholder Approval 

                        

                      	 21
	 	4.11	

                        

                          Votes
      of Principal Shareholders 

                        

                      	 21
	 	4.12	

                        Financing 

                      	 21
	 	4.13	

                        Copies
      of Tax Returns 

                      	 21
	 	4.14	

                        Other
      Actions 

                      	 22
	 	4.15	

                        Required
      Information 

                      	 22

              

               

            

          

          
            
              
                	

                        ARTICLE
      V

                      	

                        

                          REPRESENTATIONS
      AND WARRANTIES OF THE COMPANY

                        

                      	 22
	 	5.1	

                        

                          

                            Organization
      and Power; Subsidiaries and Investments 

                          

                        

                      	 23
	 	5.2	

                        

                          

                            Authorization 

                          

                        

                      	 23
	 	5.3	

                        Capitalization 

                      	 23

              

            

          

        

      

       

       

      i

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
         

        
          
            
              	 	5.4	

                      

                        

                          No
      Breach 

                        

                      

                    	 24
	 	5.5	

                      

                        

                          Financial
      Statements. 

                        

                      

                    	 24
	 	5.6	

                      

                        

                          Absence
      of Certain Developments 

                        

                      

                    	 24
	 	5.7	

                      

                        Real
      Property Leases 

                      

                    	 25
	 	5.8	

                      

                        Title
      to Assets 

                      

                    	 25
	 	5.9	

                      

                        

                          Contracts
      and Commitments. 

                        

                      

                    	 25
	 	5.10	

                      

                        

                          Proprietary
      Rights. 

                        

                      

                    	 27
	 	5.11	

                      

                        

                          Governmental
      Licenses and Permits 

                        

                      

                    	 28
	 	5.12	

                      

                        Proceedings 

                      

                    	 29
	 	5.13	

                      

                        

                          Compliance
      with Laws 

                        

                      

                    	 29
	 	5.14	

                      

                        

                          Environmental
      Matters 

                        

                      

                    	 29
	 	5.15	

                      

                        Employees 

                      

                    	 29
	 	5.16	

                      

                        Employee
      Benefit Plans. 

                      

                    	 30
	 	5.17	

                      

                        Insurance. 

                      

                    	 31
	 	5.18	

                      

                        Tax
      Matters. 

                      

                    	 31
	 	5.19	

                      Brokerage 

                    	 32
	 	5.20	

                      Undisclosed
      Liabilities 

                    	 32
	 	5.21	

                      Information
      Regarding Directors and Officers 

                    	 32
	 	5.22	

                      Books
      and Records 

                    	 32
	 	5.23	

                      Interest
      in Customers, Suppliers and Competitors 

                    	 32
	 	5.24	

                      Shareholder
      Notice Materials 

                    	 33
	 	5.25	

                      FCPA
      Compliance 

                    	 33
	 	5.26	

                      Financial
      Recordkeeping and Reporting Compliance 

                    	 33
	 	5.27	

                      OFAC
      Compliance 

                    	 33
	 	5.28	

                      Full
      Disclosure 

                    	 33

            

             

            
              
                
                  
                    	

                            ARTICLE
      VI

                          	

                            

                              

                                REPRESENTATIONS
      AND WARRANTIES OF PARENT AND THE MERGER
      SUBSIDIARY 

                              

                            

                          	 34
	 	6.1	

                            

                              

                                Organization
      and Power; Subsidiaries and Investments 

                              

                            

                          	 34
	 	6.2	

                            

                              

                                Authorization 

                              

                            

                          	 34
	 	6.3	

                            

                              

                                Capitalization 

                              

                            

                          	 35
	 	6.4	

                            

                              No
      Breach 

                            

                          	 35
	 	6.5	

                            

                              Financial
      Statements. 

                            

                          	 35
	 	6.6	

                            

                              

                                Absence
      of Certain Developments 

                              

                            

                          	 36
	 	6.7	

                            

                              

                                Real
      Property Leases 

                              

                            

                          	 36
	 	6.8	

                            

                              

                                Title
      to Assets 

                              

                            

                          	 36
	 	6.9	

                            

                              Contracts
      and Commitments. 

                            

                          	 36
	 	6.10	

                            

                              

                                Proprietary
      Rights. 

                              

                            

                          	 37
	 	6.11	

                            

                              Governmental
      Licenses and Permits

                            

                          	 38
	 	6.12	

                            

                              Proceedings 

                            

                          	 38
	 	6.13	

                            

                              Compliance
      with Laws 

                            

                          	 38
	 	6.14	

                            

                              Environmental
      Matters 

                            

                          	 38
	 	6.15	

                            

                              Employees 

                            

                          	 39
	 	6.16	

                            Employee
      Benefit Plans. 

                          	 39
	 	6.17	

                            Insurance 

                          	 40
	 	6.18	

                            Tax
      Matters. 

                          	 40
	 	6.19	

                            Brokerage 

                          	 41

                  

                   

                

              

            

          

        

      

       

      ii

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      
         

        
          
            
              
                	 	6.20	

                        

                          

                            Undisclosed
      Liabilities

                          

                        

                      	 41
	 	6.21	

                        

                          

                            

                              Information
      Regarding Directors and Officers 

                            

                          

                        

                      	 41
	 	6.22	

                        

                          

                            

                              Books
      and Records 

                            

                          

                        

                      	 41
	 	6.23	

                        

                          

                            Interest
      in Customers, Suppliers and Competitors 

                          

                        

                      	 41
	 	6.24	

                        

                          

                            Other
      Filings 

                          

                        

                      	 42
	 	6.25	

                        

                          

                            

                              Full
      Disclosure 

                            

                          

                        

                      	 42
	 	6.26	

                        

                          

                            

                              SEC
      Filings 

                            

                          

                        

                      	 42
	 	6.27	

                        

                          

                            

                              Independent
      Accountants 

                            

                          

                        

                      	 42
	 	6.28	

                        

                          

                            Sarbanes-Oxley
      Compliance 

                          

                        

                      	 43
	 	6.29	

                        

                          

                            

                              FCPA
      Compliance 

                            

                          

                        

                      	 43
	 	6.30	

                        

                          

                            Financial
      Recordkeeping and Reporting Compliance 

                          

                        

                      	 43
	 	6.31	

                        

                          

                            OFAC
      Compliance 

                          

                        

                      	 43
	 	6.32	

                        

                          

                            Internal
      Controls 

                          

                        

                      	 43

              

               

              
                
                  
                    
                      	

                              ARTICLE
      VII

                            	

                              

                                

                                  TERMINATION 

                                

                              

                            	 44
	 	7.1	

                              

                                

                                  

                                    Termination 

                                  

                                

                              

                            	 44
	 	7.2	

                              

                                

                                  

                                    Effect
      of Termination 

                                  

                                

                              

                            	 44
	 	7.3	

                              

                                Waiver
      of Right to Terminate 

                              

                            	 44

                    

                  

                

                 

                
                  
                    
                      	

                              ARTICLE
      VIII

                            	

                              ADDITIONAL
      AGREEMENTS; COVENANTS AFTER CLOSING

                            	 45
	 	8.1	

                              Mutual
      Assistance

                            	 45
	 	8.2	

                              Survival
      of Representations, Warranties, Covenants and Agreements

                            	 45
	 	8.3	

                              

                                Indemnification
      by the Parent Control Shareholders. 

                              

                            	 45
	 	8.4	

                              Indemnification
      by the Company 

                            	 46
	 	8.5	

                              Remedies 

                            	 46
	 	8.6	

                              

                                Specific
      Performance 

                              

                            	 46
	 	8.7	

                              

                                Notice
      Of Claim 

                              

                            	 47
	 	8.8	

                              

                                Confidentiality 

                              

                            	 48
	 	8.9	

                              Expenses 

                            	 48
	 	8.10	

                              

                                Disputes;
      Arbitration Procedure. 

                              

                            	 48
	 	8.11	

                              

                                Further
      Transfers 

                              

                            	 49
	 	8.12	

                              Transfer
      Taxes; Recording Charges 

                            	 49

                    

                     

                  

                

                
                  
                    
                      
                        	

                                ARTICLE
      IX

                              	

                                

                                  MISCELLANEOUS 

                                

                              	 49
	 	9.1	

                                Amendment
      and Waiver

                              	 49
	 	9.2	

                                

                                  Notices 

                                

                              	 49
	 	9.3	

                                

                                  

                                    Assignment 

                                  

                                

                              	 50
	 	9.4	

                                

                                  Severability 

                                

                              	 50
	 	9.5	

                                

                                  No
      Strict Construction 

                                

                              	 50
	 	9.6	

                                

                                  

                                    Captions 

                                  

                                

                              	 51
	 	9.7	

                                

                                  

                                    No
      Third Party Beneficiaries 

                                  

                                

                              	 51
	 	9.8	

                                

                                  

                                    Complete
      Agreement 

                                  

                                

                              	 51
	 	9.9	

                                

                                  Counterparts 

                                

                              	 51
	 	9.10	

                                

                                  

                                    Governing
      Law and Jurisdiction 

                                  

                                

                              	 51

                      

                       

                    

                  

                   

                

              

            

          

        

      

      iii

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AGREEMENT AND PLAN OF
MERGER

       

      THIS
AGREEMENT AND PLAN OF MERGER is made and entered into as of July 22, 2010,
by and among NewGen BioPharma Corporation, a New Jersey corporation (the “Company”),
Retrospettiva, Inc., a California corporation (“Parent”), and
Retrospettiva Acquisitions, Inc., a New Jersey corporation and wholly-owned
subsidiary of Parent (the “Merger
Subsidiary”).  The Company, Parent and the Merger Subsidiary
are sometimes referred to herein, individually, as a “Party” and,
collectively, as the “Parties.”

       

      RECITALS:

       

      A.           Parent,
the Merger Subsidiary and the Company desire to enter into this Agreement
pursuant to which the Merger Subsidiary will be merged (the “Merger”) with and
into the Company and whereby each outstanding share of the Company’s common
stock, no par value (the “Company Stock”) will
be converted into the right to receive the Merger Consideration.

       

      B.           The
respective Boards of Directors of Parent, the Merger Subsidiary and the Company
have determined that the Merger is fair to and in the best interests of Parent,
the Merger Subsidiary and the Company and their respective
Shareholders.

       

      C.           The
respective Boards of Directors of Parent, the Merger Subsidiary and the Company
have unanimously approved this Agreement and the transactions contemplated
hereby.

       

      D.           The
Parties desire to effect the Merger as a “reorganization” under the Internal
Revenue Code of 1986, as amended (the “Code”), so that the
Merger will not be taxable to the Parties or their respective Shareholders and
this Agreement constitutes a “plan of reorganization” within the meaning of
Treasury Regulations Section 1.368-1(c).

       

      In
consideration of the premises, the mutual promises contained herein and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Parties hereto agree as follows:

       

      ARTICLE
I

       

      DEFINITIONS

       

      1.1 Definitions.  As
used in this Agreement, the following terms have the meanings set forth
below.

       

      “1933 Act” means the
Securities Act of 1933, as amended.

       

      “1934 Act” means the
Securities Exchange Act of 1934, as amended.

       

      “Affiliate” of any
particular Person means any other Person controlling, controlled by or under
common control with such Person.

       

       

      1

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “Agreement” means this
Agreement and Plan of Merger, together with all schedules and exhibits attached
hereto.

       

      “Business” means the
Company’s business of discovering and developing proprietary pharmaceutical
drugs designed to address a range of human diseases.

       

      “Certificate of
Merger” means the Certificate of Merger satisfying the applicable
requirements of the NJBCA, a copy of which is attached as Exhibit A
hereto.

       

      “Claims” or a “Claim” mean all
demands, claims, actions or causes of action, assessments, complaints,
directives, citations, information requests issued by any Governmental Agency,
legal proceedings, orders, notices of potential responsibility, losses, all
damages of whatever nature (including, without limitation, diminution in value
and lost profits), Liabilities,

       

      “Closing” means,
subject to the satisfaction of the conditions set forth in this Agreement and
compliance with the other provisions hereof, the closing of the transaction
contemplated by this Agreement.

       

      “Closing Date” means
the date on which the Closing shall occur.

       

      “Code” has the meaning
set forth in the Recitals.

       

      “Company Financial
Statements” means financial statements of the Company to be filed as part
of the Super 8-K, which shall include a presentation of such periods as is
required by SEC rules and regulations.

       

      “Company Material Adverse
Effect” means any Event that, individually or in the aggregate with all
other Events, is materially adverse to the Company’s Business or the assets,
liabilities, financial condition or operating results of the Company or would
reasonably be expected to prevent or materially delay or impair the consummation
of the transactions contemplated by this Agreement; provided, however, that no
Event will be deemed (either alone or in combination) to constitute, nor will be
taken into account in determining whether there has been or may be, a Company
Material Adverse Effect to the extent that it arises out of or relates to: (i) a
general deterioration in the United States economy, (ii) the outbreak or
escalation of hostilities involving the United States, the declaration by the
United States of a national emergency or war (whether or not declared) or the
occurrence of any other calamity or crisis, including an act of terrorism, (iii)
a natural disaster or any other natural occurrence beyond the control of the
Company, (iv) the disclosure of the fact that Parent is the prospective acquirer
of the Company, (v) the announcement or pendency of the transactions
contemplated hereby, or (vi) any action required by this
Agreement.

       

      “Company Stock” has
the meaning set forth in the Recitals.

       

      “Contracts” means with
respect to any Person, all agreements, contracts, commitments, franchises,
covenants, authorizations, understandings, licenses, mortgages, promissory
notes, deeds of trust, indentures, leases, plans or other instruments,
certificates or obligations, whether written or oral, to which said Person is a
party, under which said Person has or may acquire any right or has or may become
subject to any obligation or by which said Person, any of said Person’s
outstanding shares of stock or any of its assets is bound.

       

      2

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “Effective Time” means
the effective time of the Merger pursuant to the application of
Section 10.4.1 of the NJBCA, which shall be the date of filing of the
Certificate of Merger with the New Jersey Secretary of State or such later date
as may be agreed to by the Company and Parent and specified in the Certificate
of Merger.

       

      “Environmental Laws”
means all applicable Laws concerning public health and safety, the pollution or
protection of the environment or the use, generation, transportation, storage,
treatment, processing, disposal or release of Hazardous Substances, as the
foregoing are enacted and in effect on the Closing Date, including, without
limitation, the Federal Solid Waste Disposal Act, as amended, the Federal Clean
Air Act, as amended, the Federal Clean Water Act, as amended, the Federal
Resource Conservation and Recovery Act of 1976, as amended, the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, as amended, the
Toxic Substances Control Act, as amended, regulations of the Environmental
Protection Agency, regulations of the Nuclear Regulatory Agency and regulations
of any state or local department of natural resources or other environmental
protection agency.

       

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

       

      “Event” means any
event, circumstance, change or effect relating to any Party, as the case may
be.

       

      “FCPA” means the
Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations
thereunder.

       

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

       

      “Governmental Agency”
means any court, tribunal, administrative agency or commission, taxing authority
or other governmental or regulatory authority, domestic or foreign, of competent
jurisdiction, including, without limitation, agencies, departments, boards,
commissions or other instrumentalities of any country or any political
subdivisions thereof.

       

      “Governmental
Licenses” means all permits, licenses, franchises, orders, registrations,
certificates, variances, approvals and other authorizations obtained from any
Governmental Agency.

       

      “Hazardous Substances”
means any flammables, explosives, radon, radioactive materials, asbestos, urea
formaldehyde foam insulation, polychlorinated biphenyls, petroleum and petroleum
products, methane, hazardous materials, hazardous wastes, hazardous or toxic
substances, pollutants or contaminants or related materials regulated under, or
as defined in any Environmental Law.

       

       

      3

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “Indebtedness” means,
with respect to any Person at any date, without duplication: (i) all obligations
of such Person for borrowed money; (ii) all obligations of such Person evidenced
by bonds, debentures, notes or other similar instruments (including, without
limitation, any shareholder notes, deferred purchase price obligations or
earn-out obligations issued or entered into in connection with any acquisition
undertaken by such Person); (iii) all obligations in respect of letters of
credit and bankers’ acceptances issued for the account of such Person; (iv) all
obligations of such Person under any capitalized lease; (v) all liabilities and
obligations pursuant to any interest rate swap agreements; and (vi) any accrued
interest, prepayment premiums, breakage fees, penalties or similar amounts
related to any of the foregoing.

       

      “Knowledge” means (i)
in the case of an individual, the actual knowledge of such individual, (ii) in
the case of any Person other than an individual, the actual knowledge of the
Board of Directors or senior level management employees (or individuals serving
in similar capacities) of such Person.

       

      “Law” or “Laws” means any and
all federal, state, local or foreign laws, statutes, ordinances, codes, rules,
regulations or Orders.

       

      “Leased Real Property”
means all of the right, title and interest of the Company and/or Parent, as the
case may be, under all leases, subleases, licenses, concessions and other
agreements (written or oral), pursuant to which the Company or Parent holds a
leasehold or sub-leasehold estate in, or is granted the right to use or occupy,
any land, buildings, improvements, fixtures or other interest in real property
which is used in the operation of the Company’s Business or leased by the
Company or Parent.

       

      “Leases” means those
leases and subleases of the Leased Real Property.

       

      “Liability” means,
with respect to any Person, any liability, debt, loss, cost, expense, fine,
penalty, obligation or damage of any kind, whether known, unknown, contingent,
asserted, accrued, unaccrued, liquidated or unliquidated, or whether due or to
become due.

       

      “Lien” means any
mortgage, pledge, security interest, conditional sale or other title retention
agreement, encumbrance, lien, easement, option, debt, charge, claim or
restriction of any kind.

       

      “Lock-Up Agreement”
means the agreement between the Parent Control Shareholders and Parent in
substantially the form attached hereto as Exhibit B.

       

      “Merger” has the
meaning set forth in the Recitals.

       

      “Merger Consideration”
means with respect to each share of Company Stock, a number of shares of Parent
Common Stock equal to 50,000,000 divided by the number or shares of Company
Stock outstanding immediately prior to the completion of the
Merger.

       

       

      4

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “Money Laundering and Related
Laws” means (i) applicable financial recordkeeping and reporting
requirements of the Currency and Foreign Transactions Reporting Act of 1970, as
amended, the money laundering statutes of all jurisdictions, including the Money
Laundering Control Act of 1986, as amended, and any related or similar rules,
regulations or guidelines, issued, administered or enforced by any Governmental
Agency, (ii) the Bank Secrecy Act, as amended, or (iii) the Uniting and
Strengthening of America by Providing Appropriate Tools Required to Intercept
and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001, and/or the rules and
regulations promulgated under any such law, or any successor law.

       

      “NJBCA” means the New
Jersey Business Corporation Act.

       

      “OFAC” means the
Office of Foreign Assets Control of the U.S.  Treasury
Department.

       

      “Order” means, with
respect to any Person, any award, decision, decree, injunction, judgment, order
or ruling directed to and naming such Person.

       

      “Other Filings” has
the meaning set forth in Section 4.9.

       

      “Parent Common Stock”
means the common stock, no par value per share, of Parent, the price of which is
quoted on the Over the Counter Bulletin Board under the ticker symbol “RTRO.”

       

      “Parent Control
Shareholders” means Gary A. Agron and Borivoje Vukadinovic, who, as
of the date hereof, collectively own, of record and beneficially, 11,891,974
shares of Parent Common Stock.

       

      “Parent Financial
Statements” mean the financial statements of Parent to be filed as part
of the Super 8-K, which shall include
a presentation of such periods as is required by SEC rules and regulations,
and/or the financial statements of Parent included in Parent’s Forms 10-K, Forms
10-Q, and registration statements or prospectuses filed with the SEC at any
time, as the context requires.

       

      “Parent Material Adverse
Effect” means any Event that, individually or in the aggregate with all
other Events, is materially adverse to the assets, liabilities or financial
condition of Parent or the Merger Subsidiary or would reasonably be expected to
prevent or materially delay or impair the consummation of the transactions
contemplated by this Agreement; provided, however, that no
Event will be deemed (either alone or in combination) to constitute, nor will be
taken into account in determining whether there has been or may be, a Company
Material Adverse Effect to the extent that it arises out of or relates to: (i) a
general deterioration in the United States economy, (ii) the outbreak or
escalation of hostilities involving the United States, the declaration by the
United States of a national emergency or war (whether or not declared) or the
occurrence of any other calamity or crisis, including an act of terrorism, (iii)
a natural disaster or any other natural occurrence beyond the control of Parent,
(iv) the announcement or pendency of the transactions contemplated hereby,
or (v) any action required by this Agreement.

       

      “Parent Preferred
Stock” means the Series A convertible preferred stock, no par value,
of Parent.

       

       

       

      5

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “Parent Stock” means
Parent Common Stock or Parent Preferred Stock, as applicable.

       

      “PCAOB” means the
Public Company Accounting Oversight Board.

       

      “Permitted Liens”
means (i) landlords’, mechanics’, materialmens’, carriers’, workmens’,
contractors’ and warehousemens’ Liens arising or incurred in the ordinary course
of business and for amounts which are not delinquent and are not, individually
or in the aggregate, material in nature, (ii) Liens for Taxes not yet due and
payable or for Taxes that are being contested in good faith, provided that a
reserve for such contested Taxes is maintained by the responsible Party,
(iii) liens imposed by applicable Laws, and (iv) Liens that do not
materially interfere with the ordinary conduct of the Company’s business or
materially detract from the use, occupancy, value or marketability of title of
the assets that are subject thereto.

       

      “Person” means any
individual, sole proprietorship, partnership, joint venture, trust,
unincorporated association, corporation, limited liability company, entity or
governmental entity (whether federal, state, county, city or otherwise and
including, without limitation, any instrumentality, division, agency or
department thereof).

       

      “Personal Property”
means all tangible personal property owned or used by the Company and Parent, as
the case may be, in the conduct of each entity’s business, including, without
limitation, all furniture, computer hardware, fixtures that are not affixed to
real property, laboratory equipment and quality control testing equipment,
accessories and tools, wherever located.

       

      “Pre-Closing Period”
means the period from the date of this Agreement through the Effective
Time.

       

      “Proceeding” means any
action, arbitration, audit, complaint, investigation, litigation or suit
(whether civil, criminal or administrative).

       

      “Proprietary Rights”
means: (i) all inventions (whether patentable or unpatentable and whether or not
reduced to practice), all improvements thereto and all foreign and domestic
patents, patent applications and patent disclosures, together with all
reissuances, continuations, continuations-in-part, divisionals, revisions,
extensions and reexaminations thereof; (ii) all foreign and domestic trademarks,
service marks, trade dress, logos and trade names and all goodwill associated
therewith; (iii) all foreign and domestic copyrightable works, all foreign and
domestic copyrights and all foreign and domestic applications, registrations and
renewals in connection therewith; (iv) all trade secrets and confidential
business information (including ideas, research and development, know-how,
formulas, code books, recipes, compositions, manufacturing and production
processes and techniques, technical data, designs, drawings, blue prints,
specifications, customer and supplier lists, pricing and cost information and
business and marketing plans and proposals); and (v) all copies and tangible
embodiments thereof in whatever form or medium.

       

       

      6

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “Representatives”
means a corporate or entity’s affiliates, officers, directors, employees or
other agents and representatives.

       

      “Rights” means, with
respect to any Person, any option, warrant or other right to subscribe for or
acquire shares of such Person’s capital stock.

       

      “SAI” means Schumacher
& Associates, Inc., Parent’s independent public accounting
firm.

       

      “Sarbanes-Oxley” means
the Sarbanes Oxley Act of 2002, and the rules and regulations promulgated in
accordance therewith, as the same may be amended from time to time.

       

      “SEC” means the United
States Securities and Exchange Commission.

       

      “Shareholders” mean
the shareholders of the Company, Parent or the Merger Subsidiary, as the case
may be.

       

      “Subsidiary” means,
with respect to any Person, any corporation, partnership, association or other
business entity of which (i) if a corporation, a majority of the total voting
power of shares of stock entitled (regardless of whether, at the time, stock of
any other class or classes of such corporation shall have or might have voting
power by reason of the happening of any contingency) to vote in the election of
directors, managers or trustees thereof is at the time owned or controlled,
directly or indirectly, by that Person or one or more of the other Subsidiaries
of that Person or a combination thereof or (ii) if a partnership, association or
other business entity, a majority of the partnership or other similar ownership
interest thereof is at the time owned or controlled, directly or indirectly, by
any Person or one or more Subsidiaries of that Person or a combination
thereof.

       

      “SJI” means Stonefield
Josephson, Inc., the Company’s independent public accounting firm.

       

      “Super 8-K” means the
Form 8-K that Parent shall file with the SEC within four business days after the
Effective Date, which Form 8-K will comply with all applicable SEC rules and
regulations.

       

      “Surviving
Corporation” means the Company after the Merger is consummated, as the
surviving corporation of the Merger.

       

      “Tax” means any
foreign, federal, state or local income, gross receipts, franchise, estimated,
alternative minimum, add-on minimum, sales, use, transfer, real property gains,
registration, value added, excise, natural resources, severance, stamp,
occupation, premium, windfall profit, environmental, customs, duties, real
property, personal property, capital stock, social security, unemployment,
disability, payroll, license, employee or other withholding, or other tax, of
any kind whatsoever, including any interest, penalties, fines or additions
thereto or additional amounts in respect of any of the foregoing.

       

      “Tax Return” means any
return, declaration, report, claim for refund, information return or other
document (including any related or supporting schedule, statement or
information) filed or required to be filed in connection with the determination,
assessment or collection of any Tax.

       

       

      7

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “Transfer Agent” means
Corporate Stock Transfer, Inc., located at 3200 Cherry Creek Drive South, Suite
430, Denver, Colorado 80209 or any successor transfer agent for the Parent
Common Stock designated by the Parent.

       

      1.2 Exhibits.  The
Exhibits attached to this Agreement are set forth below.

       

      Exhibit A  —  Certificate
of Merger

       

      Exhibit
B  —  Lock-up Agreement of Parent Control
Shareholders

       

      Exhibit C  —  Resignation
and Release

       

      Exhibit D  —  Officer’s
Certificate of Parent

       

      Exhibit E  —  Officer’s
Certificate of the Company

       

      ARTICLE
II

       

      THE
MERGER

       

      2.1  The
Merger.  Upon the terms and subject to the conditions set forth
herein and the applicable provisions of the NJBCA, and on the basis of the
representations, warranties, covenants and agreements contained herein, as of
the Effective Time, the Merger Subsidiary shall merge with and into the Company,
the separate corporate existence of the Merger Subsidiary shall cease and the
Company shall continue its corporate existence under the NJBCA as the surviving
corporation.

       

      2.2  Closing.  The
Closing shall take place at the offices of TroyGould PC, Suite 1600, 1801
Century Park East, Los Angeles, California 90067 on such date as is mutually
agreed to by Parent and the Company as promptly as practicable (but in no event
more than three business days) following the satisfaction or waiver of all
conditions of the Parties to consummate the transactions contemplated by this
Agreement (other than the conditions with respect to actions the respective
Parties will take at the Closing itself), or at such other place or on such
other date as is mutually agreeable to Parent and the Company.

       

      2.3  Filing of Certificate of
Merger.  Subject to the conditions set forth herein, the
Company and the Merger Subsidiary shall as soon as possible on the Closing Date
or such other date as Parent and the Company shall agree, cause the merger to be
consummated by filing with the New Jersey Division of Revenue the duly executed
Certificate of Merger.

       

      2.4  Effect of
Merger.  At the Effective Time, the effect of the Merger shall
be as provided herein and the applicable provisions of the
NJBCA.  Without limiting the generality of the foregoing, all of the
properties, rights, privileges, powers and franchises of the Company and the
Merger Subsidiary shall vest in the Surviving Corporation and all of the debts,
liabilities, duties and obligations of the Company and the Merger Subsidiary
shall become the debts, liabilities, duties and obligations of the Surviving
Corporation.

       

       

      8

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      2.5  Certificates of
Incorporation and Bylaws.  Unless otherwise agreed to in
writing by Parent and the Company:

       

      (a)  the
Certificate of Incorporation of the Company immediately prior to the Effective
Time shall be amended to change the name of the Company to “NewGen
Pharmaceutical Technologies, Inc.” and shall be the Certificate of Incorporation
of the Surviving Corporation; and

       

      (b)  the
Bylaws of the Company immediately prior to the Effective Time shall be the
Bylaws of the Surviving Corporation.

       

      2.6  Directors and
Officers.  As of the Closing, the members of the Board of
Directors of Parent and of the Merger Subsidiary, and each person serving as an
officer or employee of Parent or of the Merger Subsidiary, shall resign his or
her respective positions by tendering written resignations to Parent in the form
set forth as Exhibit C
attached hereto, with copies to the Company, and the members of the Board of
Directors of the Company who are members prior to the Closing shall
simultaneously be appointed to serve as members of the Board of Directors of
Parent, with such appointments to be effective as of the Closing.  The
officers and directors of the Company immediately prior to the Effective Time
shall be the officers and directors of the Surviving Corporation until their
successors have been duly appointed and qualified.

       

      2.7  Effect on
Stock.

       

      (a)  At the
Effective Time, by virtue of the Merger and without any further action on the
part of Parent, the Merger Subsidiary, the Company or any Shareholders
thereof:

       

      (i)  Each
share of Company Stock then outstanding shall be converted into the Merger
Consideration; and

       

      (ii)  Each
share of the common stock, $0.00001 par value per share, of the Merger
Subsidiary then outstanding shall be converted into one share of the validly
issued, fully paid and non-assessable authorized common stock of the Surviving
Corporation.

       

      (b)  If,
between the date of this Agreement and the Effective Time, the outstanding
shares of Company Stock or Parent Stock are changed into a different number or
class of shares by reason of any stock split, stock dividend, reverse stock
split, reclassification, recapitalization or other similar transaction, then the
Merger Consideration shall be appropriately adjusted.

       

      (c)  No
fractional shares of Parent Stock shall be issued in connection with the Merger,
and no certificates or scrip for any such fractional shares shall be issued, and
in lieu thereof, if a fractional share of Parent Stock would otherwise be issued
to any Company stockholder, the number of shares of Parent Common Stock to be
received by such Company stockholder who would otherwise be entitled to a
fraction of a share of Parent Stock (after aggregating all fractional shares of
Parent Stock to be received by such holder) shall receive $1 in cash in lieu of
any fraction of a share of Parent Common Stock that would otherwise be issuable
to such Company stockholder.

       

       

      9

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      2.8  No Further Ownership Rights
in Company Stock.  All shares of Parent Common Stock issued
upon the surrender of the Company Stock in accordance with the terms hereof
shall be deemed to have been issued in full satisfaction of all rights
pertaining to such Company Stock, and there shall be no further registration of
transfers on the records of the Company of shares of Company Stock which were
outstanding immediately prior to the Closing.

       

      2.9  Exchange of
Certificates.

       

      (a)  At the
Effective Time, the stock transfer books of the Company shall be closed and
thereafter there shall be no further resignation of transfers of the Company
Stock on the records of the Company.  From and after the Effective
Time, the holders of certificates representing ownership of the Company Stock
outstanding immediately prior to the Effective Time shall cease to have rights
with respect to such Common Stock, except as otherwise provided for
herein.

       

      (b)  Upon
surrender of a Company Stock certificate to Parent or the Transfer Agent, the
holder of such Company Stock certificate shall be entitled to receive in
exchange therefor a certificate representing the number of whole shares of
Parent Stock that such holder has the right to receive pursuant to the
provisions hereof and the Company Stock certificate so surrendered shall be
canceled.  Until surrendered as contemplated by this Section 2.9, each
Company Stock certificate shall be deemed, from and after the Effective Time, to
represent only the right to receive shares of Parent Stock as contemplated
hereby.  If any certificate for Parent Stock is to be issued in a name
other than that in which the certificate for shares of Company Stock surrendered
in exchange therefor is registered, it shall be a condition of that exchange
that the person requesting the exchange shall pay any transfer or other Taxes or
fees required by reason of the issuance of certificates for Parent Stock in a
name other than that of the registered holder of the Company Stock certificate
surrendered.

       

      (c)  If any
Company Stock certificates representing shares of Company Stock shall have been
lost or destroyed, the Company Shareholders who are the registered owners of
those shares may obtain the certificate representing the Parent Stock to which
the Company Shareholders are entitled by reason of the consummation of the
Merger, provided that the Company Shareholders deliver to Parent and the
Transfer Agent a statement certifying to the loss or destruction and providing
for indemnity or a bond satisfactory to Parent and the Transfer Agent
indemnifying Parent and the Transfer Agent against any loss or expense either of
them may incur if the lost or destroyed certificates are thereafter presented to
Parent or the Transfer Agent for exchange.

       

      (d)  All
shares of Parent Stock issued upon surrender and exchange of Company Common
Stock, in accordance with the terms hereof, shall be deemed to have been issued
in full satisfaction of all rights pertaining to such Company Common
Stock.

       

       

      10

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (e)  Any
shares of Parent Stock that remain undistributed to the holders of Company Stock
Certificates shall be retained by Parent to the extent permitted by
Law.  Notwithstanding the foregoing, neither Parent nor the Surviving
Corporation shall be liable to any Person for any Merger Consideration delivered
to a public official pursuant to any applicable abandoned property, escheat or
similar law.

       

      2.10  Exemption from
Registration.  The Parties intend that the shares of Parent
Stock to be issued in connection with the Merger will be issued in a transaction
exempt from registration under the 1933 Act and applicable state Blue Sky Laws
pursuant to Section 4(2) of the 1933 Act and analogous state exemptions under
applicable Blue Sky Laws, and, accordingly, such shares will constitute
“restricted securities” within the meaning of Rule 144 under the 1933
Act.

       

      2.11  Further
Action.  If, at any time after the Effective Time, any further
action is reasonably determined by Parent to be necessary or desirable to carry
out the purposes of this Agreement or to vest the Surviving Corporation with
full right, title and possession of and to all rights and property of the Merger
Subsidiary and the Company, the officers and directors of the Surviving
Corporation and Parent shall be fully authorized (in the name of the Merger
Subsidiary, in the name of the Company and otherwise) to take such
action.

       

      ARTICLE
III

       

      CONDITIONS TO
CLOSING

       

      3.1  Conditions to the
Obligations of the Company.  The obligations of the Company to
consummate the transactions contemplated by this Agreement are subject to the
satisfaction of the following conditions on or before the Closing
Date:

       

      (a)  Each of
the representations and warranties set forth in Article VI shall
be true and correct in all respects, at and as of the date of this Agreement and
as of the Closing Date as though then made and as though the Closing Date were
substituted for the date of this Agreement throughout such representations and
warranties (except that those representations and warranties that are made as of
a specific date need only be true and correct in all respects as of such date),
except where the failure of any such representations and warranties to be true
and correct has not had, individually or in the aggregate, a Parent Material
Adverse Effect;

       

      (b)  Parent
and the Merger Subsidiary shall have each performed in all material respects all
the covenants and agreements required to be performed by it under this Agreement
prior to the Closing;

       

      (c)  No
Proceeding before any Governmental Agency shall be pending which, if successful
for the Governmental Agency, would result in an Order that would prevent the
carrying out of this Agreement or any of the transactions contemplated hereby,
or cause such transactions to be rescinded;

       

       

      11

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (d)  Parent
shall have delivered to the Company an opinion of a law firm licensed to
practice law in California that is acceptable to the Company, dated the Closing
Date, in a form reasonably acceptable to the Company’s legal counsel and dated
the Closing Date, substantially to the effect that:

       

      (i)  The
incorporation, existence, good standing and capitalization of Parent and of the
Merger Subsidiary are as stated in this Agreement and, assuming the
effectiveness of the Merger, the shares of Parent Stock to be issued to and
received by the Company Shareholders pursuant to this Agreement will be duly and
validly authorized and issued, fully paid and non-assessable; all outstanding
shares of Parent Stock are duly and validly authorized and issued, fully paid
and non-assessable and have not been issued in violation of any preemptive right
of any Person; and, to the knowledge of such counsel, there are no existing
Rights of Parent or of the Merger Subsidiary other than as stated in this
Agreement.

       

      (ii)  Parent
and the Merger Subsidiary each has full corporate power and authority to
execute, deliver and perform this Agreement, and this Agreement has been duly
authorized, executed and delivered by Parent and the Merger Subsidiary, and
(assuming the due and valid authorization, execution and delivery by the
Company) constitutes the legal, valid and binding agreement of Parent and the
Merger Subsidiary, enforceable against Parent and the Merger Subsidiary in
accordance with its terms.

       

      (iii)  This
Agreement, as to Sections 4.11 and 8.3 hereof, and the Lock-Up Agreement
have been duly executed and delivered by the Parent Control Shareholders and
constitute the legal, valid and binding agreements of the Parent Control
Shareholders, enforceable against the Parent Control Shareholders in accordance
with their respective terms.

       

      (iv)  To the
knowledge of such counsel, there are no actions, suits or proceedings, pending
or threatened against Parent by any Governmental Authority, which seek to
restrain, prohibit or invalidate the transaction contemplated by this
Agreement.

       

      (v)  The
execution and performance by Parent and the Merger Subsidiary of this Agreement
will not violate the Articles of Incorporation or Certificate of Incorporation
or the Bylaws of Parent or the Merger Subsidiary.

       

      (vi)  Any
required approvals of the Shareholders of Parent and the Merger Subsidiary to
the execution, delivery and performance of this Agreement have been duly
obtained, and to the knowledge of such counsel, no consent, approval,
authorization or order of any court or Governmental Authority which has not been
obtained is required on behalf of Parent or the Merger Subsidiary for
consummation of the transactions contemplated by this Agreement.

       

      (vii)  The
issuance of the Parent Stock in the Merger is exempt from the registration
provisions of Section 5 of the 1933 Act and under applicable blue sky
laws.

       

      In
rendering its opinion, counsel may rely as to factual matters on certificates of
public officials and officers or employees of Parent, provided that copies of
such opinions and certificates shall be delivered with such opinion, and
provided further that in the case of any such reliance, counsel shall state that
it believes that it is justified in relying on such opinions and certificates
for such matters.

       

       

      12

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (e)  On or
prior to the Closing Date, Parent shall have delivered to the Company each of
the following:

       

      (i)  a
certificate in the form set forth as Exhibit D
attached hereto from the Chief Executive Officer of Parent, dated as of the
Closing Date, stating that the applicable preconditions specified in Section
3.1(a) and (b) hereof have been satisfied, and certifying such other matters as
set forth in Exhibit
D;

       

      (ii)  certified
copies of the resolutions duly adopted by the Board of Directors and
Shareholders (if Shareholder approval is required) of Parent and of the Merger
Subsidiary authorizing the execution, delivery and performance of this Agreement
and the consummation of all transactions contemplated hereby; and

       

      (iii)  copies of
any consents, approvals, releases from and filings with, Governmental Agencies
required in order to effect the transactions contemplated by this Agreement
which Parent or the Merger Subsidiary is responsible to obtain pursuant to the
terms of this Agreement;

       

      (f)  Any and
all debt owed to any related or third party by Parent shall have been paid and
discharged, or debt forgiveness agreements shall have been obtained from such
parties such that neither Parent nor the Merger Subsidiary shall have any debt
or liabilities of any kind as of the Effective Time, except for amounts owing to
the Parent Control Shareholders for services as an officer of Parent or for
legal services rendered to Parent that in the aggregate shall not exceed
$200,000 and which shall be paid by the Parent to the Parent Control
Shareholders promptly following the Closing;

       

      (g)  Dissenters’
rights of appraisal shall not have been exercised by any Parent Shareholders, if
such rights are applicable under applicable Law, or by any Company
Shareholders.

       

      (h)  Since the
date of this Agreement, there shall not have occurred any Parent Material
Adverse Effect, and no Event shall have occurred or circumstance shall exist
that, in combination with all other Events, could reasonably be expected to have
a Parent Material Adverse Effect.

       

      (i)  All
certificates, instruments and other documents required to effect the
transactions contemplated hereby reasonably requested by the Company shall be
reasonably satisfactory in form and substance to the Company;

       

      (j)  The
Parent Control Shareholders shall have executed and delivered to Parent the
Lock-Up Agreement;

       

       

      13

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (k)  The
Company shall have obtained the requisite approval of its Shareholders with
respect to the execution, delivery and performance of this Agreement and the
consummation of all transactions contemplated hereby;

       

      (l)  The
Company shall have raised at least $500,000 in capital in one or more private
placements of its securities completed between June 1, 2010 and the Closing
Date; and

       

      (m)  The
Company or the Company’s Shareholders (as designated in writing by the Company)
shall have purchased from the Parent Control Shareholders for an aggregate
purchase price of $25,000 a total of 1,000 shares of Parent Preferred Stock that
will be convertible into 320,264,837 shares of Parent Common Stock, so that the
Company’s Shareholders immediately following the Closing will own 96.25% of the
then outstanding shares of the Parent Common Stock (on a fully diluted basis and
assuming distribution of all of the shares of Parent Preferred Stock to the
Company’s Shareholders and conversion of all of the Parent Preferred
Stock).

       

      Any
condition specified in this Section 3.1, except the conditions in clauses (c)
and (k) may be waived by the Company; provided, however, that no such waiver
will be effective unless it is set forth in a writing executed by the
Company.

       

      (n)  A
certificate of determination in form acceptable to the Company creating 1,000
authorized shares of Parent Preferred Stock shall have been filed by Parent with
the California Secretary of State, and all of these shares shall have been
issued to the Parent Control Shareholders in cancellation of $25,000 that is
owed to them by Parent.

       

      3.2  Conditions to Parent’s and
the Merger Subsidiary’s Obligations.  The obligations of Parent
and the Merger Subsidiary to consummate the transactions contemplated by this
Agreement are subject to the satisfaction of the following conditions on or
before the Closing Date:

       

      (a)  Each of
the representations and warranties set forth in Article V shall be
true and correct in all respects, at and as of the date of this Agreement and as
of the Closing Date as though then made and as though the Closing Date were
substituted for the date of this Agreement throughout such representations and
warranties (except that those representations and warranties that are made as of
a specific date need only be true and correct in all respects as of such date),
except where the failure of any such representations and warranties to be true
and correct has not had, individually or in the aggregate, a Company Material
Adverse Effect;

       

      (b)  The
Company shall have performed in all material respects all of the covenants and
agreements required to be performed by it under this Agreement prior to the
Closing;

       

      (c)  No
Proceeding before any Governmental Agency shall be pending which, if successful
for the Governmental Agency, would result in a Order that would prevent the
carrying out of this Agreement or any of the transactions contemplated hereby,
declare unlawful the transactions contemplated hereby or cause such transactions
to be rescinded;

       

       

      14

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (d)  shall
have received an opinion of counsel from TroyGould PC, legal counsel to the
Company, dated the Closing Date, substantially to the effect that:

       

      (i)  The
incorporation, existence, good standing and capitalization of the Company are as
stated in this Agreement; all outstanding shares of Company Stock are duly and
validly authorized and issued, fully paid and non-assessable and have not been
issued in violation of any preemptive right of any Person; and, to the knowledge
of such counsel, there are no existing Rights of the Company other than as
stated in this Agreement.

       

      (ii)  The
Company has full corporate power and authority to execute, deliver and perform
this Agreement and this Agreement has been duly authorized, executed and
delivered by the Company, and (assuming the due and valid authorization,
execution and delivery by Parent) constitutes the legal, valid and binding
agreement of the Company.

       

      (iii)  To the
knowledge of such counsel, there are no actions, suits or proceedings, pending
or threatened against the Company or its Subsidiary by any Governmental
Authority which seek to restrain, prohibit or invalidate the transactions
contemplated by this Agreement.

       

      (iv)  The
execution and performance by the Company of this Agreement will not violate the
Certificate of Incorporation or the Bylaws of the Company.

       

      (v)  Any
required approval by the Company Shareholders to the execution, delivery and
performance of this Agreement has been obtained, and to the knowledge of such
counsel, no consent, approval, authorization or order of any court or
Governmental Authority which has not been obtained is required on behalf of the
Company for consummation of the transactions contemplated by this
Agreement.

       

      In
rendering its opinion, counsel may rely as to factual matters on certificates of
public officials and officers or employees of the Company, provided that copies
of such opinions and certificates shall be delivered with such opinion, and
provided further that in the case of any such reliance, counsel shall state that
it believes that it is justified in relying on such opinions and certificates
for such matters.

       

      (e)  On or
prior to the Closing Date, the Company shall have delivered to Parent each of
the following:

       

      (i)  a
certificate in the form set forth as Exhibit E
attached hereto from the Chief Executive Officer of the Company on its behalf
dated the Closing Date, stating that the applicable preconditions specified in
Section 3.2(a)
and (b)
hereof have been satisfied, and certifying such other matters; and

       

      (ii)  certified
copies of the resolutions duly adopted by the board of directors and
shareholders of the Company authorizing the execution, delivery and performance
of this Agreement and the consummation of all transactions contemplated hereby,
including, without limitation, the Merger.

       

       

      15

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (f)  Parent
and the Merger Subsidiary shall have each obtained the approval of its
Shareholders, if required, with respect to the execution, delivery and
performance of this Agreement and the consummation of all transactions
contemplated hereby.

       

      (g)  Parent
shall have obtained the Governmental Agency and third-party consents, approvals
and releases all of which are necessary in connection with the consummation of
the transactions contemplated hereby.

       

      (h)  The
Company shall have delivered to Parent the Company Financial
Statements.

       

      (i)  Since the
date of this Agreement, there shall not have occurred any Company Material
Adverse Effect with respect to the Company, and no Event shall have occurred or
circumstance shall exist that, in combination with all other Events, could
reasonably be expected to have a Company Material Adverse Effect.

       

      (j)  All
certificates, instruments and other documents required to effect the
transactions contemplated hereby reasonably requested by Parent shall be
reasonably satisfactory in form and substance to Parent.

       

      (k)  The
Company shall have raised at least $500,000 in capital in one or more private
placements of its securities completed between June 1, 2010 and the Closing
Date.

       

      Any
condition specified in this Section 3.2, except
the conditions in clauses (c) and (f), may be waived by Parent; provided, however, that no such
waiver shall be effective unless it is set forth in a writing executed by
Parent.

       

      ARTICLE
IV

       

      COVENANTS PRIOR TO
CLOSING

       

      4.1  Affirmative
Covenants.  From the date hereof and prior to the Closing Date,
except as otherwise provided herein:

       

      (a)  During
the Pre-Closing Period, subject to any laws and regulations relating to the
exchange of information, confidentiality or similar provisions in agreements to
which the Company is a party, and reasonable restrictions on the disclosure of
trade secrets or proprietary information, the Company shall, and shall cause the
Representatives of the Company to: (i) provide Parent and Parent’s
Representatives with reasonable access to the Company’s Representatives,
personnel and assets and to all existing books, records, Tax Returns, work
papers and other documents and information relating to the Company; and (ii)
provide Parent and Parent’s Representatives with such copies of the existing
books, records, Tax Returns, work papers and other documents and information
relating to the Company, and with such additional financial, operating and other
data and information regarding the Company, as Parent may reasonably
request.

       

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      (b)  During
the Pre-Closing Period, subject to laws and regulations relating to the exchange
of information, Parent shall, and shall cause the Representatives of Parent to:
(i) provide the Company and the Company’s Representatives with reasonable
access to Parent’s Representatives, personnel and assets and to all existing
books, records, Tax Returns, work papers and other documents and information
relating to Parent and the Merger Subsidiary; and (ii) provide the Company and
the Company’s Representatives with such copies of the existing books, records,
Tax Returns, work papers and other documents and information relating to Parent
and the Merger Subsidiary, and with such additional financial, operating and
other data and information regarding the Parent and the Merger Subsidiary as the
Company may reasonably request.

       

      (c)  Parent
and the Company will conduct their respective businesses only in the usual and
ordinary course of business in accordance with past custom and practice,
including, without limitation, paying all accounts payable within terms
consistent with past practices and paying all Taxes of the Company and
Parent.

       

      (d)  Parent
and the Company will permit the other Party’s officers, accountants and legal
counsel, at the sole cost of the Party to which such access is provided, to (i)
have reasonable access to the non-requesting Party’s premises, books and
records, during normal business hours and with prior written notice, provided
that any inspections of the premises by the requesting Party shall be conducted
in a reasonable manner and at such reasonable times as shall not unreasonably
disrupt the non-requesting Party’s business, and (ii) discuss its affairs,
finances and accounts with the non-requesting Party’s executive
officers.

       

      (e)  By the
end of the Pre-Closing Period, Parent shall have terminated all consulting,
management or any other agreements to which it is currently a party, if any,
such that Parent shall be free of any and all contractual obligations (except
under this Agreement) of any kind or nature.  In addition, by the end
of the Pre-Closing Period, Parent shall have negotiated the payment, or
forgiveness, of all indebtedness or liabilities owing by Parent at the date
hereof to any party, related or otherwise, such that neither Parent nor the
Merge Subsidiary will have any indebtedness or liabilities of any kind, whether
actual, contingent, realized or realizable, on the Closing Date, except for the
obligations to the Parent Control Shareholders described in Section
3.1(f).

       

      4.2  Negative
Covenants.  From the date hereof and prior to the Closing Date
or as otherwise provided herein, neither the Company nor Parent nor any of their
Subsidiaries shall, without the prior written consent of the other
Party:

       

      (i)  declare,
accrue, set aside or pay any dividend or make any other distribution in respect
of any shares of capital stock, or repurchase, redeem or otherwise reacquire any
shares of capital stock or other securities;

       

      (ii)  sell,
issue, grant or authorize the issuance or grant of (A) any capital stock or
other security, (B) any option, call, warrant or right to acquire any capital
stock or other security except in the ordinary course of business, or (C) any
instrument convertible into or exchangeable for any capital stock or other
security, except that the Company may issue securities in connection with its
capital raising activities or to its officers, directors, employees and
consultants;

       

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      (iii)  amend or
waive any of its rights under, or accelerate the vesting under (except as
otherwise provided in such stock option, warrant, stock purchase agreement or
related contract on the date hereof), any provision of any of its stock option
plans, any provision of any agreement evidencing any outstanding stock option or
any restricted stock purchase agreement, or otherwise modify any of the terms of
any outstanding option, warrant or other security or any related
contract;

       

      (iv)  amend or
permit the adoption of any amendment to its articles or certificate of
incorporation or bylaws or other charter or organizational documents, or effect
or become a party to any merger, consolidation, share exchange, business
combination, recapitalization, reclassification of shares, stock split, reverse
stock split or similar transaction, other than the Merger and except as
otherwise contemplated by this Agreement;

       

      (v)  form any
Subsidiary or acquire any equity interest or other interest in any other Entity,
except as contemplated by this Agreement;

       

      (vi)  except in
the ordinary course of business, make any capital expenditure;

       

      (vii)  enter
into or become bound by, or permit any of the assets owned or used by it to
become bound by, any material contract, or amend or terminate, or waive or
exercise any material right or remedy under, any material contract;

       

      (viii)  acquire,
lease or license any right or other asset from any other Person or sell or
otherwise dispose of, or lease or license, any right or other asset to any other
Person (except for licensing activities by the Company conducted in the ordinary
course of its business), or waive or relinquish any material contractual
right;

       

      (ix)  lend
money to any Person, or incur or guarantee any indebtedness (except for loans or
advances to subsidiaries, in each case in accordance with past
practices);

       

      (x)  establish,
adopt or amend any employee benefit plan, pay any bonus or make any
profit-sharing or similar payment to, or increase the amount of the wages,
salary, commissions, fringe benefits or other compensation or remuneration
payable to, any of its directors, officers or employees (except the Company may
initiate and pay salaries and bonuses to its officers, directors and
employees);

       

      (xi)  change
any of its business policies, or, except as required by GAAP or a change in
applicable law, any of its methods of accounting or accounting practices in any
respect;

       

      (xii)  make any
Tax election or take or omit to take any other action, in any such action or
omission would increase such Party’s Tax liability or reduce a Tax
asset;

       

      (xiii)  commence
or settle any Legal Proceeding material to such Party taken as a whole or the
settlement of which will not have a Material Adverse Effect on such
Party;

       

       

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      (xiv)  except as
otherwise permitted by this Agreement, enter into any material transaction or
take any other material action outside the ordinary course of business
inconsistent with past practices;

       

      (xv)  revalue
in any material respect any of its assets, including without limitation,
writing-off notes or accounts receivable other than in the ordinary course of
business;.

       

      (xvi)  take or
omit to take any action that would have the effect of causing such Party’s
representations or warranties herein to be untrue; or

       

      (xvii)  agree or
commit to take any of the actions described in clauses “(i)” through “(xvi)” of
this Section
4.2, except as otherwise permitted or contemplated by this
Agreement.

       

      4.3  Notice of
Developments.

       

      (a)  During
the Pre-Closing Period, the Company shall promptly notify Parent in writing of:
(i) the discovery by the Company of any Event that occurred or existed on or
prior to the date of this Agreement and that caused or constitutes a material
inaccuracy in any representation or warranty made by the Company in this
Agreement; (ii) any event, condition, fact or circumstance that occurs, arises
or exists after the date of this Agreement and that would cause or constitute a
material inaccuracy in any representation or warranty made by the Company in
this Agreement if (A) such representation or warranty had been made as of the
time of the occurrence, existence or discovery of such event, condition, fact or
circumstance, or (B) such event, condition, fact or circumstance had
occurred, arisen or existed on or prior to the date of this Agreement; (iii) any
material breach of any covenant or obligation of the Company; and (iv) any
event, condition, fact or circumstance that would make the timely satisfaction
of any of the conditions set forth in Article III
impossible or unlikely or that has had or could reasonably be expected to have a
Company Material Adverse Effect.

       

      (b)  During
the Pre-Closing Period, Parent shall promptly notify the Company in writing of:
(i) the discovery by Parent of any event, condition, fact or circumstance that
occurred or existed on or prior to the date of this Agreement and that caused or
constitutes a material inaccuracy in any representation or warranty made by
Parent in this Agreement; (ii) any event, condition, fact or circumstance that
occurs, arises or exists after the date of this Agreement and that would cause
or constitute a material inaccuracy in any representation or warranty made by
Parent in this Agreement if (A) such representation or warranty had been made as
of the time of the occurrence, existence or discovery of such event, condition,
fact or circumstance, or (B) such event, condition, fact or circumstance
had occurred, arisen or existed on or prior to the date of this Agreement; (iii)
any material breach of any covenant or obligation of Parent; and (iv) any
event, condition, fact or circumstance that would make the timely satisfaction
of any of the conditions set forth in Article III
impossible or unlikely or that has had or could reasonably be expected to have a
Parent Material Adverse Effect.

       

       

       

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      4.4  Exclusivity.  From
and after the date hereof until the earlier of (a) the Closing or (b) the
termination of this Agreement pursuant to Section 7.1 hereof, neither the
Company, Parent nor their respective Representatives (acting in any capacity,
including individually) shall solicit, negotiate, act upon or entertain in any
way an offer from any other Person to purchase all or any part of the securities
or assets of the Company or Parent (other than sales of assets in immaterial
amounts or in the normal and ordinary course of business of the Company), or
furnish any information to any other Person in that regard.  The
Parties hereby represent and warrant that neither is obligated to sell to or
discuss with any other potential purchaser the sale of all or any portion of
each Party’s securities or any material part of each Party’s
assets.

       

      4.5  HSR Act
Filing.  [Intentionally Omitted]

       

      4.6  Consents.  As
soon as reasonably practical after the execution and delivery of this Agreement,
the Company and Parent shall give any notices to those Persons entitled to such
notice and obtain, prior to the Closing Date, all material consents and
authorizations of other Persons necessary to consummate, or required in
connection with, the transactions contemplated hereby.

       

      4.7  Publicity.  Parent
acknowledges that certain information relating to the Company which may be
acquired by Parent in connection with the Merger constitutes material and
non-public information about the Company.  Except as provided in
Sections 4.9 and 4.10 or as required by federal securities Laws or other
applicable Laws as reasonably determined by Parent and counsel for Parent, with
the concurrence of counsel for the Company, and such disclosures necessary to
allow the Company to consummate its capital-raising activities, no Party will
make any public announcement or disclosure of the transaction contemplated
hereby, without the prior written consent of Parent and the Company which is
concurred in by counsel for both Parties.  The Parties shall cooperate
in preparing and disseminating press releases upon execution of this Agreement,
subject to prior review and approval by counsel for both
Parties.  Furthermore, the Company shall prepare and distribute the
press release announcing the consummation of the Merger hereunder, which shall
be approved by Parent and its counsel before its release.

       

      4.8  Super 8-K Preparation and
Filing.  The Company will prepare and deliver to Parent at
least seven (7) days prior to Closing a draft Super 8-K, together with the
Company Financial Statements accompanied by the audit report thereon of SJI, pro
forma financial statements, and such other information that is required to be
disclosed with respect to the Merger under applicable SEC rules and
regulations.  The Super 8-K shall be in a form reasonably acceptable
to Parent and its counsel prior to being filed with the SEC, and will be filed
by the Company on behalf of Parent.

      
20

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      4.9  Other
Filings.  As promptly as practicable after the execution of
this Agreement, the Company and Parent will cooperate in the preparation and
filing of any other filings required under any federal or state blue sky laws
relating to the Merger and the transactions contemplated by this Agreement
(collectively, the “Other
Filings”).  The Company hereby consents to the disclosure of
information regarding the Company, as well as the terms of the transactions
contemplated hereby, in the Other Filings.  Each Party will notify the
other promptly upon the receipt of any comments from any federal or state
securities regulator and of any request by any Governmental Agency for
amendments or supplements to any Other Filing or for additional information, and
will supply the other Party with copies of all correspondence between such Party
or any of its Representatives, on the one hand, and any Governmental Agency, on
the other hand, with respect to the Merger or any Other Filing.  The
Other Filings will comply in all material respects with all applicable
requirements of Law.  Whenever any event occurs which is required to
be set forth in an amendment or supplement to any Other Filing, the Company or
Parent, as the case may be, will promptly inform the other of such occurrence
and cooperate in filing with any Governmental Agency and/or mailing to
shareholders of the Company and Parent, such amendment or
supplement.  Parent will not solicit proxies from its shareholders in
connection with seeking approval of the Merger, and Parent represents that it
can obtain the requisite shareholder approvals of the transactions contemplated
hereby without soliciting proxies from its shareholders.

       

      4.10  Company Shareholder
Approval.  The Company will (i) use its commercially reasonable
efforts to obtain the approval of its Shareholders of the adoption, execution
and delivery of this Agreement and the consummation of the transactions
contemplated hereby and the approval of the Merger.  Prior to any
Company Shareholder vote or written consent concerning the matters described in
this Section
4.10, the Company shall provide to Parent drafts of all materials to be
distributed to the Company shareholders including proposed resolutions, and
allow Parent and its counsel a reasonable opportunity to review and comment on
same.

       

      4.11  Votes of Principal
Shareholders.  The principal Shareholders’ obligations to act
in the best interests of Parent or the Company, respectively, in their
capacities as directors (as the case may be) and in accordance with their
fiduciary duties shall not in any way be affected by the foregoing.

       

      4.12  Financing.  The
Company will use reasonable efforts to secure financing described in Section 3.2(k), and
will provide Parent with periodic updates from time to time of the status of
those efforts.  In connection therewith, Parent will provide its
reasonable cooperation in promptly reviewing and commenting upon securities
purchase agreements or other documents that the Company prepares or intends to
use prior to the Closing in connection with its financing activities, copies of
which the Company will provide to Parent at a reasonable time prior to their
dissemination or use.

       

      4.13  Copies of Tax
Returns.  The Parties shall provide each other with copies of
all state and federal income Tax Returns filed by the Company or Parent
subsequent to the date hereof reasonably promptly following said filing and
shall provide each other with written notice of all estimated state and federal
income Tax payments made by the Company or Parent after the date
hereof.  At least three (3) days prior to the Closing Date, the
Parties shall have prepared and filed applicable state and federal income Tax
returns for 2009.  Notwithstanding the foregoing, if the preparation
of such Tax returns is unable to be completed prior to the Closing, then the
Parties agree that they shall reasonably cooperate in the preparation and filing
of all Tax returns to be filed with any Governmental Agency, and will provide
copies of such proposed filings a reasonable period of time prior to the filing
of same.

       

       

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      4.14  Other
Actions.  The Company and Parent shall further cooperate with
each other and use their respective reasonable best efforts to take or cause to
be taken all actions, and do or cause to be done all things, necessary, proper
or advisable on its part under this Agreement and applicable Laws to consummate
the Merger and the other transactions contemplated hereby as soon as
practicable, including preparing and filing as soon as practicable all
documentation to effect all necessary notices, reports and other filings and to
obtain as soon as practicable all consents, registrations, approvals, permits
and authorizations necessary or advisable to be obtained from any Person
(including the respective independent accountants of the Company and Parent)
and/or any Governmental Agency in order to consummate the Merger or any of the
other transactions contemplated hereby.  Subject to applicable Laws
relating to the exchange of information and the preservation of any applicable
attorney-client privilege, work-product doctrine, self-audit privilege or other
similar privilege, each of the Company and Parent shall have the right to review
and comment on in advance, and to the extent practicable each will consult the
other on, all the information relating to such Party that appears in any filing
made with, or written materials submitted to, any Person and/or any Governmental
Agency in connection with the Merger and the other transactions contemplated
hereby.  In exercising the foregoing right, each of the Company and
Parent shall act reasonably and as promptly as practicable.

       

      4.15  Required
Information.  In connection with the preparation of the Super
8-K, and the approval of the Merger by the Company Shareholders, and for other
reasonable purposes, the Company and Parent each shall, upon request by the
other, furnish the other with all information concerning themselves, their
respective directors, officers and shareholders and such other matters as may be
reasonably necessary or advisable in connection with the Merger, or any other
statement, filing, notice or application made by or on behalf of the Company or
Parent to any Person or any Governmental Agency in connection with the Merger
and the other transactions contemplated hereby.  Each Party warrants
and represents to the other Party, and only the other Party, that all such
information shall be true and correct in all material respects and will not
contain any untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements contained
therein, in light of the circumstances under which they were made, not
misleading.  Notwithstanding anything to the contrary contained in
Sections 4.8,
4.9 or 4.10, neither Party
may amend, supplement or distribute the Other Filings containing information
concerning any other Party hereto or its respective directors, officers ad
shareholders without the prior written consent of such other Party.

       

      ARTICLE
V

       

      REPRESENTATIONS AND
WARRANTIES OF THE COMPANY

       

      As a
material inducement to Parent to enter into this Agreement, the Company hereby
represents and warrants to Parent as follows, which representations and
warranties are true, correct and complete as of the date hereof and will be
true, correct and complete as of the Closing (as though made then and as though
the Closing were substituted for the date of this Agreement throughout this
Article V),
except as set forth in the Disclosure Schedule.  Nothing in the
Disclosure Schedule shall be deemed adequate to disclose an exception to a
representation or warranty made herein, however, unless the Disclosure Schedule
identifies the exception with particularity and describes the relevant facts in
detail.  Without limiting the generality of the foregoing, the mere
listing (or inclusion of a copy) of a document or other item shall not be deemed
adequate to disclose an exception to a representation or warranty made herein
(unless the representation or warranty has to do with the existence of the
document or other item itself).  The Disclosure Schedule will be
arranged in paragraphs corresponding to the lettered and numbered paragraphs
contained in this Article
V.

       

       

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      5.1  Organization and Power;
Subsidiaries and Investments.  The Company is a corporation
duly organized, validly existing and in good standing under the laws of New
Jersey.  The Company is qualified to do business as a foreign entity
and is in good standing in any jurisdiction in which the ownership of properties
or the conduct of the Company’s business requires the Company to be so
qualified, except where the failure to be qualified would not result in the
Company incurring any material Liability.  The Company has all
requisite power and authority to own its assets and carry on its business as now
conducted.  The Company has all requisite power and authority to
execute and deliver this Agreement and the other agreements contemplated hereby
and to perform its obligations hereunder and thereunder.  The
certificate of incorporation and bylaws of the Company which have previously
been furnished to Parent reflect all amendments thereto and are correct and
complete in all respects.  The Company has no
Subsidiaries.  The Company does not own or control (directly or
indirectly) any partnership interest, joint venture interest, equity
participation or other security or interest in any Person.

       

      5.2  Authorization.  The
execution, delivery and performance by the Company of this Agreement, the other
agreements contemplated hereby and each of the transactions contemplated hereby
or thereby will be, upon approval of the Company’s shareholders, duly and
validly authorized by all requisite corporate action and, other than the
approval of the Company’s shareholders, no other act or proceeding on the part
of the Company or its board of directors is necessary to authorize the
execution, delivery or performance by the Company of this Agreement or any other
agreement contemplated hereby or the consummation of any of the transactions
contemplated hereby or thereby.  This Agreement has been duly executed
and delivered by the Company and this Agreement constitutes, and the other
agreements contemplated hereby upon execution and delivery by the Company will
each constitute, a valid and binding obligation of the Company, enforceable
against the Company in accordance with its terms.

       

      5.3  Capitalization.  As
of the date of this Agreement, the Company had issued and outstanding a total of
3,935,000 shares of Company Stock.  All of the issued and outstanding
shares of the Company Stock have been duly authorized, are validly issued, fully
paid and nonassessable and none were issued in violation of the preemptive
rights of any Person.  No other class of capital stock of the Company
is authorized or outstanding at the date hereof.  Except for any
issuances of securities pursuant to the Company’s private placements described
in Section
3.2(k), there are no outstanding or authorized options, warrants, rights,
contracts, pledges, calls, puts, rights to subscribe, conversion rights or other
agreements or commitments to which the Company is a party or which is binding
upon the Company providing for the issuance, disposition or acquisition of any
of its equity or any rights or interests exercisable therefor.  There
are no outstanding or authorized equity appreciation, phantom stock or similar
rights with respect to the Company.

       

       

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      5.4  No
Breach.  The execution, delivery and performance by the Company
of this Agreement and the other agreements contemplated hereby and the
consummation of each of the transactions contemplated hereby or thereby will not
(a) violate, result in any breach of, constitute a default under, result in the
termination or acceleration of, create in any party the right to accelerate,
terminate, modify or cancel, or require any notice under the certificate of
incorporation or bylaws of the Company, any material Law, any material Order or
any material Contract to which the Company or its assets is bound; (b) result in
the creation or imposition of any Lien upon any assets or any of the equities of
the Company; or (c) require any material authorization, consent, approval,
exemption or other action by or notice to any Governmental Agency or other
Person under the provisions of any material Law, material Order or any material
Contract by which the Company or its assets is bound.

       

      5.5  Financial
Statements.

       

      (a)  Each of
the Company Financial Statements when delivered will be accurate and complete in
all material respects and will present fairly in all material respects the
financial condition, results of operations and cash flows of the Company
throughout the periods covered thereby and will have been prepared in accordance
with GAAP consistently applied throughout the periods indicated.  The
Company Financial Statements shall be in compliance with Regulation S-X to the
extent required.  The representations and warranties contained in this
Section 5.5(a)
shall only become effective as to each Company Financial Statement as and when
the Company delivers such Financial Statement to Parent and indicates that it is
acceptable for inclusion in the Super 8-K.

       

      (b)  There has
not been, since December 31, 2009, nor to the Company’s Knowledge is there
pending, any material change in accounting requirements or principles imposed on
the Company.

       

      5.6  Absence of Certain
Developments.  Since December 31, 2009, the Company has
conducted its businesses only in the ordinary course of business consistent with
past custom and practice, and the Company has not:

       

      (a)  Suffered
a Material Adverse Effect;

       

      (b)  Sold,
leased, assigned, licensed or transferred any of its material assets or any
material portion thereof (other than in the ordinary course of business, or
sales of obsolete assets) or mortgaged, pledged or subjected them to any
Lien;

       

      (c)  Made any
material capital expenditures or commitments, other than in the ordinary course
of business consistent with past custom and practice;

       

       

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      (d)  Created,
incurred or assumed any material Indebtedness, other than Indebtedness that is
incurred in the ordinary course of business, and has not guaranteed any
Indebtedness or Liability of any Person;

       

      (e)  Declared,
set aside or paid any dividend or distribution of cash or other property to any
shareholder of the Company with respect to its equity or purchased, or redeemed
or otherwise acquired any of its equity or any warrants, options or other rights
to acquire its equity;

       

      (f)  Amended
or authorized the amendment of its certificate of incorporation (except with
respect to the increase in authorized common stock effective June 23, 2010)
or bylaws;

       

      (g)  Committed
or agreed to any of the foregoing; or

       

      (h)  Received
any notice from any Person with whom the Company has a material business
relationship indicating that said Person intends to change their respective
relationship the Company.

       

      5.7  Real Property
Leases.  The Company has no Leases.

       

      5.8  Title to
Assets.  The Company owns or has a valid right to use, free and
clear of all Liens other than Permitted Liens, all of the personal, tangible and
intangible personal property and assets used in its business, including, without
limitation, the assets shown on the Company Audited Financial
Statements.

       

      5.9  Contracts and
Commitments.

       

      (a)  The
Company has no:

       

      (i)  Contracts
(other than purchase orders entered into in the ordinary course of business)
which involve commitments to make capital expenditures or which provide for the
purchase of goods or services by the Company from any one Person under which the
undelivered balance of such products or services has a purchase price in excess
of $10,000;

       

      (ii)  Contracts
(other than purchase orders entered into in the ordinary course of business)
which provide for the sale of products or services by the Company and under
which the undelivered balance of such products or services has a sale price in
excess of $10,000;

       

      (iii)  Contracts
relating to the borrowing of money by the Company, to the granting by the
Company of a Lien on any of its assets, or any guaranty by the Company of any
obligation or liability in any case involving a liability in excess of
$10,000;

       

      (iv)  Contracts
pursuant to which the Company is a lessor or a lessee of any property, personal
or real, or holds or operates any tangible personal property owned by another
Person, except for any leases of personal property;

       

       

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      (v)  Contracts
for the use, license or sublicense of any Proprietary Rights owned or licensed
by the Company or otherwise used in the Business (other than any license of
mass-marketed or otherwise generally available software);

       

      (vi)  any power
of attorney (whether revocable or irrevocable) given to any Person by the
Company;

       

      (vii)  Contracts
by the Company not to compete in any business or in any geographical area or
with respect to which the Company is the beneficiary of any non-compete
provision;

       

      (viii)  Contracts
restricting the right of the Company to use or disclose any information in its
possession or with respect to which the Company is the beneficiary of any
confidentiality, nondisclosure or non-use provision;

       

      (ix)  any
partnership, joint venture or other similar arrangements;

       

      (x)  any
employment agreements, severance agreements, bonus agreements and
non-competition agreements with non-officer employees of the Company;
and

       

      (xi)  any
Contract with any officer, director, shareholder or any of their respective
Affiliates except for employment agreements with its officers which shall be
identified on Schedule 5.9(a)).

       

      (b)  The
Company has not materially breached or cancelled any material Contract to which
it is a party; to the Company’s Knowledge, none of the Company’s material
Contracts have been breached in any respect or canceled by the other party which
has not been duly cured or reinstated; to the Company’s Knowledge, the Company
is not in receipt of any written claim of default under any material Contract to
which it is a party; to the Company’s Knowledge, no event has occurred which
with the passage of time or the giving of notice or both would result in a
material breach or default under any Contract or create in any Person the right
to accelerate, suspend, terminate, modify, cancel or exercise any other material
right under any Company material Contract; no Person has given notice to the
Company of repudiation of any provision of any material Contract to which it is
a party; and the Company has not received any notice of any, and to the
Company’s Knowledge there is no, impending change of any business relationship
with any Person with whom the Company has a material business relationship, in
each case, except as would not have a Company Material Adverse
Effect.  To the Company’s Knowledge, each material Contract to which
it is a party is valid, binding and in full force and effect and enforceable in
accordance with its terms.

       

      (c)  Each of
the Company’s material Contracts has been entered into without the commission of
any act by or on behalf of the Company, alone or in concert with any other
Person, or any consideration having been paid or promised, that, in either case,
is or would be in violation of any Law.

       

       

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      5.10  Proprietary
Rights.

       

      (a)  As of the
Closing Date, the Company will be the owner of, or have the exclusive right to
use all Proprietary Rights used in the operation of the Business as presently
conducted and as presently proposed to be conducted by the Surviving Corporation
following the Closing.  Each item of Proprietary Rights will be owned
or available for use by the Company on identical terms and conditions
immediately subsequent to the Effective Time.

       

      (b)  To the
Knowledge of the Company, the Company has not interfered with, infringed upon,
misappropriated, or otherwise come into conflict with any Proprietary Rights of
any Person, and there are no unresolved charges, complaints, claims, demands, or
notices alleging any such interference, infringement, misappropriation, or
violation (including any claim that Company must license, or refrain from using,
any Proprietary Rights of any Person.  To the Knowledge of Company, no
Person has interfered with, infringed upon, misappropriated, or otherwise come
into conflict with any Proprietary Rights owned or used by the Company in the
Company’s business.  There are no Proceedings pending or, to the
Knowledge of the Company, threatened, which challenges the validity, legality,
enforceability, use or ownership of any Proprietary Rights owned or used by the
Company in its business.

       

      (c)  To the
Knowledge of the Company, the Company has not engaged in any business practices
that are unfair, improper or illegal, including any misrepresentation of the
origin, source, or composition of any of its Proprietary Rights and any
misrepresentation as to the endorsement, sponsorship or affiliation of any of
the Company’s Proprietary Rights by any Person or group.

       

      (d)  The
Company has made available to Parent correct and complete copies of any patent,
trademark registration and copyright registration which has been issued to the
Company or its predecessor in interest, as well as applications for any patents,
trademark registrations and copyright applications (as amended to date or
otherwise modified) and all other written documentation evidencing ownership and
prosecution (if applicable) of each such item.  With respect to each
of the foregoing items of Proprietary Rights, except as disclosed to Parent, the
Company possesses all right, title and interest in and to the item, free and
clear of any Lien; the item is not subject to any outstanding Order; and to the
Knowledge of the Company, all necessary application, registration, maintenance
and renewal fees in connection with all patent, trademark and copyright
registrations and applications for registration have been paid and all necessary
documents and certificates in connection therewith have been filed with the
relevant authority for the purpose of maintaining the registrations or
applications for registration; and to the Knowledge of the Company, no issued
patent and no trademark or copyright registration is subject to cancellation,
re-examination, termination or withdrawal based upon circumstances existing on
or prior to the date of the Closing.

       

      (e)  The
Company has also made available to Parent correct and complete copies of (a) any
item of Proprietary Rights that the Company exploits pursuant to a license,
sublicense, permission or other agreement, and (b) any item of Proprietary
Rights that the Company licenses or sublicenses to any third Person or otherwise
allows any third Person to use.  With respect to each of the foregoing
items of Proprietary Rights, to the Company’s Knowledge:

       

      (i)  the
license, sublicense, agreement, or permission covering the item is legal, valid,
binding, enforceable and in full force and effect;

       

       

      27

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (ii)  the
license, sublicense, agreement or permission shall continue to be legal, valid,
binding, enforceable and in full force and effect on identical terms following
the consummation of the transactions contemplated hereby;

       

      (iii)  no party
to the license, sublicense, agreement or permission is in breach or default and
no event has occurred which with notice or lapse of time would constitute a
breach or default or permit termination, modification or acceleration
thereunder;

       

      (iv)  no party
to the license, sublicense, agreement or permission has repudiated any provision
thereof;

       

      (v)  with
respect to each sublicense, the representations and warranties set forth in
subsections (i) through (iv) above are true and correct with respect to the
underlying license;

       

      (vi)  no item
is subject to any outstanding Order; and

       

      (vii)  the
Company’s ability to exploit each item is not limited in any material
respect.

       

      (f)  The
Company has taken all reasonably necessary and desirable actions to maintain and
protect its right, title and interest in Proprietary Rights, including efforts
to obtain confidentiality and non-disclosure agreements from each Person with
access to such Proprietary Rights.  To the Knowledge of the Company,
each Person who has had access to confidential and proprietary information
relating to the Business has a legal obligation of confidentiality to the
Company or Parent with respect to such information.

       

      5.11  Governmental Licenses and
Permits.  The Company owns or possesses all right, title and
interest in and to all material Governmental Licenses that are necessary to its
business as presently conducted.  Each such Governmental License has
been duly obtained, is valid and in full force and effect and is not subject to
any Proceeding to revoke, cancel, modify, limit, restrict or declare such
Governmental Licenses invalid in any material respect.  The Company
has materially complied with and is in material compliance with the terms and
conditions of such Governmental Licenses and has not received any written
notices of the violation of any of the terms or conditions of such Governmental
Licenses.  The consummation of the transactions contemplated hereby
will not, and no event has occurred or circumstance exists that may (with or
without the giving of notice or the passage of time or both or otherwise) (i)
constitute or result, directly or indirectly in a material violation of or a
failure to comply with any term or requirement of any material Governmental
License, or (ii) result directly or indirectly in the revocation, withdrawal,
suspension, cancellation, termination or modification of any material
Governmental License.  All applications required to have been filed
for the continued validity or renewal of any Governmental License have been duly
filed on a timely basis with the appropriate Governmental Agency or other
Person, and all other filings required to have been made with respect to the
Governmental License have been duly made on a timely basis with the appropriate
Governmental Agency or other Person.

       

       

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      5.12  Proceedings.  There
are no material Proceedings pending or, to the Knowledge of the Company,
threatened against the Company, or any of its assets or its business and to the
Company’s Knowledge, there is no basis for any Proceeding against the Company or
any of its assets or its business.  Except as set forth in the
Company’s Certificate of Incorporation or Bylaws, the Company is not currently
required, whether by contract or operation of Law, to indemnify any of the
officers, directors or employees (past or present) of the Company and there have
been no claims made against the Company for indemnity by any past or present
officer, director or employee.

       

      5.13  Compliance with
Laws.  The Company has materially complied with and is in
compliance in all material respects with all applicable Laws and
Orders.  No written notice has been received by the Company alleging a
violation of or liability or potential responsibility under any such Law or
Order.  To the Company’s Knowledge, since December 31, 2009, there has
been no change in any applicable Laws that may have a Company Material Adverse
Effect and there is no impending change in any applicable Laws that may have a
Company Material Adverse Effect.

       

      5.14  Environmental
Matters.  The Company has materially complied with and is in
compliance in all material respects with all Environmental Laws.  The
has not received any notice regarding any, and to the Company’s Knowledge, there
has been no, violation of, or any liability or investigatory, corrective or
remedial obligation under, any Environmental Law with respect to the past or
current operations, properties or facilities of the Company.  The
Company has not treated, stored, disposed of, arranged for or permitted the
disposal of, transported, handled, or released any Hazardous Substance in a
manner which has given rise to any liabilities or investigatory, corrective or
remedial obligations pursuant to Environmental Laws.  To the Company’s
Knowledge, (i) there has been no disposal, burial or placement of Hazardous
Substances on or about the Leased Real Property; (ii) the Company has not used
all or part of the Leased Real Property or any lands contiguous to the Leased
Real Property in violation of any Environmental Laws; (iii) there is no
contamination, pollution or danger of pollution resulting from a condition on or
under the Leased Real Property, or on or under any lands in the vicinity of the
Leased Real Property; (iv) there are no storage tanks on or under the Leased
Real Property; (v) environmental conditions associated with the Leased Real
Property are in compliance with all Environmental Laws, in each case, except as
would not have a Company Material Adverse Effect; and (vi) the Company has
disclosed to Parent all information in the Company’s possession relating to the
environmental condition of the Leased Real Property.  The Company has
not received any information from neighboring property owners indicating they
have any concerns about existing environmental conditions which could affect the
Leased Real Property or suggesting they might look to the Company for
contribution to clean up such condition.

       

      5.15  Employees.  The
Company has materially complied with and is in compliance in all material
respects with all applicable Laws relating to the employment of
labor.  There are no administrative charges or court complaints
pending or, to the Company’s Knowledge, threatened against the Company before
the U.S.  Equal Employment Opportunity Commission or any federal,
foreign, state or local court or agency concerning alleged employment
discrimination or any other matters relating to the employment of
labor.  To the Company’s Knowledge, there is no basis for any
administrative charge or court complaint regarding any matters relating to the
employment of labor.  The Company has not experienced any union
organization attempts, labor disputes or work stoppage or slowdowns due to labor
disagreements.  There is no labor strike, dispute, work stoppage or
slowdown involving any of the employees of the Company pending or, to the
Company’s Knowledge, threatened.  The Company is not a party to any
labor or union agreement.

       

       

      29

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      5.16  Employee Benefit
Plans.

       

      (a)  The
Company has no employee pension benefit plan as defined in Section 3(2) of
ERISA, and has no employee welfare benefit plan as defined in Section 3(1) of
ERISA.  The Company maintains no plan, policy, program or arrangement
which provides nonqualified deferred compensation benefits, equity-based
compensation, options or bonuses, health, life, disability, accident, vacation,
severance, tuition reimbursement or other fringe benefits or with respect to
which the Company is reasonably expected to have any material
Liability.

       

      (b)  Neither
the Company nor any other Person that is or that has been a member of a
controlled group or any other similar arrangement that would be combined with
the Company under Code Section(s) 414(b), (c), (m) or (o) participates in or
contributes to and has not participated in or contributed to any multiemployer
plan (as defined in Section 3(37) of ERISA).

       

      (c)  The
Company provides no post-termination health, accident or life insurance
benefits.

       

      (d)  The
Company has no plan subject to Title IV of ERISA or the minimum funding
requirements of Code Section 412.

       

      (e)  Except as
disclosed on Schedule 5.16(i), the completion of the transactions contemplated
by this Agreement will not result, separately or in the aggregate, in the
payment of any amount that will be: (i) non-deductible to the Company or the
Surviving Corporation under Code Section 280G; (ii) characterized as an “excess
parachute payment” within the meaning of Code Section 280G; or (iii) subject to
the excise tax under Code Section 4999.

       

      (f)  Since its
inception, the Company has acted in good faith compliance with the requirements
of Code Section 409A and, to the Company’s Knowledge, no employee of the Company
will have compensation includable in his or her gross compensation as a result
of the application of Code Section 409A.  The Company is not, nor has
it ever been, party to any tax indemnity agreement or other agreement that
requires the Company to “gross up” or otherwise compensate any employee because
of the imposition of any income, excise or other Tax.

       

       

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      5.17  Insurance.

       

      (a)  The
Company maintains insurance coverage adequate for its business as currently
conducted.  True and correct copies of any insurance policies of the
Company have been provided to Parent.

       

      (b)  To the
Company’s Knowledge, each of its policies is legal, valid, binding, enforceable
and in full force and effect.  Prior to the Closing Date, the Company
will not cancel or allow to expire any such policies unless replaced with other
comparable insurance.  The Company is not in breach or default of the
terms of the policies (including with respect to the payment of premiums or the
giving of notices), and to the Company’s Knowledge, no event has occurred which,
with notice or the lapse of time, would constitute such a breach or default, or
permit termination, modification or acceleration, under the policy; and to the
Company’s Knowledge, no party to the policies has repudiated any provision
thereof.

       

      5.18  Tax
Matters.

       

      (a)  The
Company has filed all material Tax Returns that it is required to file as of the
date of this Agreement and has paid in full all Taxes required to be paid by the
Company as disclosed by such Tax Returns, which Tax Returns are true, correct
and complete in all material respects.  On or before the Closing Date,
the Company will have filed all Tax Returns that it will have been required to
file on or before the Closing Date and will have paid in full all Taxes required
to be paid by it on or before the Closing Date as disclosed by such Tax Returns
and said Tax Returns will be true, correct and complete in all material
respects.  The Company has not requested any extension of time within
which to file any Tax Return, which Tax Return has not since been filed, nor
between the date hereof and the Effective Time will the Company request any
extension of time within which to file any Tax Return without promptly
delivering to Parent a copy of such request.  As of immediately before
the Effective Time, there will be no Liens for Taxes on any of the Company’s
assets other than Permitted Liens.  The Company has not ever been a
member of a group of corporations that file a consolidated Tax Return for
federal income Taxes or a member of an affiliated group other than a group of
which the Company is the common parent.

       

      (b)  The
Company has, and by the Closing will have, complied with all Laws relating to
the withholding of Taxes required to be paid or withheld by the Company in all
respects and has, within the manner prescribed by applicable Law, withheld from
its employees, customers and any applicable payees and paid over to the proper
Governmental Agencies all material amounts required to be withheld and paid
over.

       

      (c)  The
Company has not waived any statute of limitations or otherwise agreed to any
extension of time with respect to an assessment or collection of Taxes which is
still effective; no Proceedings with the Internal Revenue Service or a state,
local or foreign taxing authority are presently pending with regard to Taxes of
the Company; the Company has not received written notice of any impending audit
relating to the Taxes of the Company which has not yet commenced; and no
deficiency for any Taxes required to be paid by the Company has been proposed,
asserted or assessed against the Company which has not been resolved and paid in
full.

       

       

       

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      (d)  The
Company is not a party to any Tax allocation or Tax sharing
agreement.

       

      (e)  The
Company has not ever been and is not currently liable to pay any Tax to, or file
any Tax Return with, any foreign Governmental Agency.

       

      5.19  Brokerage.  The
Company is not responsible for, and has not received, any claims for brokerage
commissions, finders fees or similar compensation in connection with the
transactions contemplated by this Agreement based on any arrangement or
agreement made by the Company or any Company director, officer or
shareholder.

       

      5.20  Undisclosed
Liabilities.  To the Company’s knowledge, since March 31,
2010, the Company has not incurred any Liability required to be disclosed on a
balance sheet or the notes thereto pursuant to GAAP, except for
Liabilities:

       

      (a)  Reflected,
disclosed or reserved against in (i) the balance sheet as of March 31, 2010
or the notes thereto;

       

      (b)  Incurred
in the ordinary course of business (but excluding any material Liability arising
out of tort, violations of law or breaches of contract); or

       

      (c)  Fully
satisfied on the Closing Date.

       

      5.21  Information Regarding
Directors and Officers.  The Company has provided a Secretary’s
certificate to Parent which sets forth the name of each executive officer of the
Company and the offices held by each such Person and the name of each member of
the Board of Directors of the Company.

       

      5.22  Books and
Records.  The books of account, minute books, stock record
books and other records of the Company, all of which have been made available to
Parent prior to the date hereof, are complete and correct in all material
respects, and have been maintained in accordance with sound business practices,
including the maintenance of an adequate system of internal
controls.  The minute books of the Company contain substantially
accurate and complete records of all meetings held of, and corporate actions
taken by, the Shareholders, the Board of Directors or any committee of the Board
of Directors, and no meeting of the Shareholders, Board of Directors or any
committee of the Board of Directors has been held for which minutes have not
been prepared and are not contained in such minute books.

       

      5.23  Interest in Customers,
Suppliers and Competitors.  Except for a proposed license and
assignment agreement with, and sale of shares of the Company’s common stock to,
another pharmaceutical company that may be completed prior to the Closing, no
Company shareholder and no officer or director of the Company, nor any Affiliate
thereof or any member of their respective family, has any direct or indirect
interest in any customer, supplier or competitor of the Company or in any
business, firm or Person from whom or to whom the Company leases any Asset, or
in any other business, firm or Person with whom the Company does
business.  The Company has no outstanding loans to any officer,
director or shareholder.

       

       

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      5.24  Shareholder Notice
Materials.  The information to be supplied by the Company for
inclusion in any Other Filings shall not contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein
or necessary in order to make the statements therein, in light of the
circumstances under which they are made, not false or misleading.  If
at any time prior to the Effective Time, any event relating to the Company or
any of its Affiliates, officers or directors should be discovered by the Company
which should be set forth in a supplement to any Other Filings, the Company
shall promptly inform Parent.  Notwithstanding the foregoing, the
Company makes no representation or warranty with respect to any information
supplied by Parent or any Person other than the Company or any agent or
representative thereof which is contained in any Other Filings.

       

      5.25  FCPA
Compliance.  [Intentionally Omitted]

       

      5.26  Financial Recordkeeping and
Reporting Compliance.  The operations of the Company are and
have been conducted at all times in compliance with applicable financial
recordkeeping and reporting requirements of the Money Laundering and Related
Laws, and no action, suit or proceeding by or before any court or Governmental
Authority or any arbitrator involving the Company with respect to the Money
Laundering and Related Laws is pending or, to the best knowledge of the Company,
threatened.  The Company has not violated the Money Laundering and
Related Laws, and/or the rules and regulations promulgated under any such law,
or any successor law.

       

      5.27  OFAC
Compliance.  None of the Company or, to the knowledge of the
Company, any director, officer, agent, employee or affiliate of the Company is
currently subject to any U.S. sanctions administered by OFAC, and the Company
has not knowingly directly or indirectly lent, contributed or otherwise made
available funds to any joint venture partner or other person or entity, for the
purpose of financing the activities of any person currently subject to any U.S.
sanctions administered by OFAC.

       

      5.28  Full
Disclosure.  None of the representations and warranties made by
the Company in this Agreement and the schedules, certificates and other
documents delivered to Parent contains, or will contain, any untrue statement of
a material fact or omit to state a material fact necessary to make the
statements therein in light of the circumstances in which they were made, not
misleading as of the date to which it speaks.

       

       

       

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      ARTICLE
VI

       

      REPRESENTATIONS AND
WARRANTIES

      OF PARENT AND THE MERGER
SUBSIDIARY

       

      As a
material inducement to the Company to enter into this Agreement, Parent and the
Merger Subsidiary hereby jointly and severally represent and warrant to the
Company as follows, which representations and warranties are true, correct and
complete as of the date hereof and will be true, correct and complete as of the
Closing (as though made then and as though the Closing were substituted for the
date of this Agreement throughout this Article VI), except
as set forth in the Disclosure Schedule.  Nothing in the Disclosure
Schedule shall be deemed adequate to disclose an exception to a representation
or warranty made herein, however, unless the Disclosure Schedule identifies the
exception with particularity and describes the relevant facts in
detail.  Without limiting the generality of the foregoing, the mere
listing (or inclusion of a copy) of a document or other item shall not be deemed
adequate to disclose an exception to a representation or warranty made herein
(unless the representation or warranty has to do with the existence of the
document or other item itself).  The Disclosure Schedule will be
arranged in paragraphs corresponding to the lettered and numbered paragraphs
contained in this Article
VI.  References in this Article VI to Parent
will, in all instances, be read to include the Merger Subsidiary unless
specifically provided to the contrary below or unless the context otherwise
requires.

       

      6.1  Organization and Power;
Subsidiaries and Investments.  Each of Parent and the Merger
Subsidiary is a corporation duly organized, validly existing and in good
standing under the laws of the State of California.  This jurisdiction
is the only jurisdiction in which the ownership of properties or the conduct of
the its business requires Parent or the Merger Subsidiary to be so qualified
except where the failure to be qualified would not result in Parent incurring
any material Liability.  Parent and the Merger Subsidiary have all
requisite power and authority to own their assets and carry on their business as
now conducted.  Parent and the Merger Subsidiary have all requisite
power and authority to execute and deliver this Agreement and the other
agreements contemplated hereby and to perform their obligations hereunder and
thereunder.  The articles or certificate of incorporation and bylaws
of Parent and the Merger Subsidiary which have previously been furnished to the
Company reflect all amendments thereto and are correct and complete in all
respects.  Parent has one Subsidiary, the Merger Subsidiary, and has
no other Subsidiaries.  Parent does not own or control (directly or
indirectly) any partnership interest, joint venture interest, equity
participation or other security or interest in any Person.

       

      6.2  Authorization.  The
execution, delivery and performance by Parent and the Merger Subsidiary of this
Agreement, the other agreements contemplated hereby and each of the transactions
contemplated hereby or thereby will be duly and validly authorized by all
requisite corporate action and no other act or proceeding on the part of Parent
or the Merger Subsidiary or their boards of directors is necessary to authorize
the execution, delivery or performance by Parent and the Merger Subsidiary of
this Agreement or any other agreement contemplated hereby or the consummation of
any of the transactions contemplated hereby or thereby.  This
Agreement has been duly executed and delivered by Parent and the Merger
Subsidiary and this Agreement constitutes, and the other agreements contemplated
hereby upon execution and delivery by Parent and the Merger Subsidiary will each
constitute, a valid and binding obligation of Parent and the Merger Subsidiary,
enforceable against Parent and the Merger Subsidiary in accordance with its
terms.

       

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      6.3  Capitalization.  Parent’s
authorized and outstanding common stock is as set forth in the Form 10-Q for the
three months ended March 31, 2010, a copy of which is filed with the
SEC.  All of the issued and outstanding shares of Parent Common Stock
have been duly authorized, are validly issued, fully paid and nonassessable and
none were issued in violation of the preemptive rights of any
Person.  Parent as of the Closing Date will have authorized 1,000
shares of Series A convertible preferred stock, all of which will be issued
and outstanding.  No other class of capital stock of Parent is
authorized or outstanding at the date hereof.  The only shareholder of
the Merger Subsidiary is Parent.  All of the outstanding capital stock
of the Merger Subsidiary is owned by Parent, free and clear of any
Liens.  There are no outstanding or authorized options, warrants,
rights, contracts, pledges, calls, puts, rights to subscribe, conversion rights
or other agreements or commitments to which Parent or the Merger Subsidiary is a
party or which is binding upon Parent and the Merger Subsidiary providing for
the issuance, disposition or acquisition of any of its equity or any rights or
interests exercisable therefor.  There are no outstanding or
authorized equity appreciation, phantom stock or similar rights with respect to
Parent or the Merger Subsidiary.

       

      6.4  No
Breach.  The execution, delivery and performance by Parent of
this Agreement and the other agreements contemplated hereby and the consummation
of each of the transactions contemplated hereby or thereby will not (a) violate,
result in any breach of, constitute a default under, result in the termination
or acceleration of, create in any party the right to accelerate, terminate,
modify or cancel, or require any notice under the articles of incorporation or
bylaws of Parent or the Merger Subsidiary, any material Law, any material Order
or any material Contract to which Parent or the Merger Subsidiary or their
assets is bound; (b) result in the creation or imposition of any Lien upon any
assets or any of the equities of Parent; or (c) require any material
authorization, consent, approval, exemption or other action by or notice to any
Governmental Agency or other Person under the provisions of any material Law,
material Order or any material Contract by which Parent or the Merger Subsidiary
or their assets is bound.

       

      6.5  Financial
Statements.

       

      (a)  Each of
Parent’s Financial Statements on file with the SEC are accurate and complete in
all material respects and present fairly in all material respects the financial
condition, results of operations and cash flows of Parent throughout the periods
covered thereby and have been prepared in accordance with GAAP consistently
applied throughout the periods indicated.  The Parent Financial
Statements are in compliance with Regulation S-X to the extent
required.

       

      (b)  There has
not been, since December 31, 2009, nor to Parent’s Knowledge is there pending,
any material change in accounting requirements of Parent.

       

       

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      6.6  Absence of Certain
Developments.  Parent has conducted its businesses only in the
ordinary course of business consistent with past custom and practice, and Parent
has not:

       

      (a)  Suffered
a Material Adverse Effect;

       

      (b)  Sold,
leased, assigned, licensed or transferred any of its material assets or any
material portion thereof (other than in the ordinary course of business, or
sales of obsolete assets) or mortgaged, pledged or subjected them to any
Lien;

       

      (c)  Made any
material capital expenditures or commitments, other than in the ordinary course
of business consistent with past custom and practice;

       

      (d)  Created,
incurred or assumed any material Indebtedness, other than Indebtedness that is
incurred in the ordinary course of business, and has not guaranteed any
Indebtedness or Liability of any Person;

       

      (e)  Declared,
set aside or paid any dividend or distribution of cash or other property to any
shareholder of Parent with respect to its equity or purchased, or redeemed or
otherwise acquired any of its equity or any warrants, options or other rights to
acquire its equity;

       

      (f)  Amended
or authorized the amendment of its articles of incorporation or
bylaws;

       

      (g)  Committed
or agreed to any of the foregoing; or

       

      (h)  Received
any notice from any Person with whom the Company has a material business
relationship indicating that said Person intends to change their respective
relationship the Company.

       

      6.7  Real Property
Leases.  Parent is not a party to any Lease.

       

      6.8  Title to
Assets.  Parent owns good and valid title, free and clear of
all Liens other than Permitted Liens, to all of the personal, tangible and
intangible personal property and assets reflected on the Parent Financial
Statements.  At the Closing Date, Parent will have no assets other
than its ownership of all of the issued and outstanding stock of the Merger
Subsidiary, free and clear of all Liens.

       

      6.9  Contracts and
Commitments.

       

      (a)  Neither
Parent nor the Merger Subsidiary is currently a party to any Contract, and will
not be a party to any Parent Contract that will be in effect at the Effective
Time

       

       

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      (b)  Neither
Parent nor the Merger Subsidiary has materially breached or cancelled any
Contract in violation of the terms thereof; (ii) to Parent’s Knowledge, none of
Parent’s Contracts have been breached in any respect or canceled by the other
party except in accordance with the terms thereof; (iii) to Parent’s Knowledge,
Parent is not in receipt of any written claim of default under any Contract;
(iv) to Parent’s Knowledge, no event has occurred which with the passage of time
or the giving of notice or both would result in a material breach or default
under any Parent Contract or create in any Person the right to accelerate,
suspend, terminate, modify, cancel or exercise any other material right under
any Parent Contract; (v) no Person has given notice to Parent of repudiation of
any provision of any Parent Contract; and (vi) Parent has not received any
notice of any, and to Parent’s Knowledge there is no, impending change of any
business relationship with any Person except the cancellation or termination of
any Parent Contracts currently in effect.

       

      (c)  Each
Parent Contract has been entered into without the commission of any act by or on
behalf of Parent, alone or in concert with any other Person, or any
consideration having been paid or promised, that, in either case, is or would be
in violation of any Law.

       

      6.10  Proprietary
Rights.

       

      (a)  Parent
owns no, and has no exclusive rights to use, any Proprietary Rights in the
operation of its business.

       

      (b)  To the
Knowledge of Parent, Parent has not interfered with, infringed upon,
misappropriated, or otherwise come into conflict with any Proprietary Rights of
any Person, and there are no unresolved charges, complaints, claims, demands, or
notices alleging any such interference, infringement, misappropriation, or
violation (including any claim that Parent must license, or refrain from using,
any Proprietary Rights of any Person.  To the Knowledge of Parent, no
Person has interfered with, infringed upon, misappropriated, or otherwise come
into conflict with any Proprietary Rights owned or used by Parent in Parent’s
business.  There are no Proceedings pending or, to the Knowledge of
Parent, threatened, which challenges the validity, legality, enforceability, use
or ownership of any Proprietary Rights owned or used by Parent in its
business.

       

      (c)  To the
Knowledge of Parent, Parent has not engaged in any business practices that are
unfair, improper or illegal, including any misrepresentation of the origin,
source, or composition of any of its Proprietary Rights and any
misrepresentation as to the endorsement, sponsorship or affiliation of any of
Parent’s Proprietary Rights by any Person or group.

       

      (d)  Parent
neither owns nor licenses or sublicenses any patent, trademark registration or
copyright registration, nor does Parent have ownership of, or rights to,
applications for any patents, trademark registrations and copyright applications
(as amended to date or otherwise modified).

       

       

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      6.11  Governmental Licenses and
Permits.  Parent neither has nor uses any Governmental Licenses
in the conduct of its business except such as are associated with Parent’s
organization in the State of California.  Parent owns or possesses all
right, title and interest in and to all material Governmental Licenses that are
necessary to its business as presently conducted.  Each such
Governmental License has been duly obtained, is valid and in full force and
effect and is not subject to any Proceeding to revoke, cancel, modify, limit,
restrict or declare such Governmental Licenses invalid in any material
respect.  Parent has materially complied with and is in material
compliance with the terms and conditions of such Governmental Licenses and has
not received any written notices of the violation of any of the terms or
conditions of such Governmental Licenses.  The consummation of the
transactions contemplated hereby will not, and no event has occurred or
circumstance exists that may (with or without the giving of notice or the
passage of time or both or otherwise) (i) constitute or result, directly or
indirectly in a material violation of or a failure to comply with any term or
requirement of any material Governmental License, or (ii) result directly or
indirectly in the revocation, withdrawal, suspension, cancellation, termination
or modification of any material Governmental License.  All
applications required to have been filed for the continued validity or renewal
of any Governmental License have been duly filed on a timely basis with the
appropriate Governmental Agency or other Person, and all other filings required
to have been made with respect to the Governmental License have been duly made
on a timely basis with the appropriate Governmental Agency or other
Person.

       

      6.12  Proceedings.  There
are no material Proceedings pending or, to the Knowledge of Parent, threatened
against Parent, or any of its assets or its business and to Parent’s Knowledge,
there is no basis for any Proceeding against Parent or any of its assets or its
business.  Except as set forth in Parent’s articles of incorporation
or bylaws, Parent is not currently required, whether by contract or operation of
Law, to indemnify any of the officers, directors or employees (past or present)
of Parent and there have been no claims made against Parent for indemnity by any
past or present officer, director or employee.

       

      6.13  Compliance with
Laws.  Parent has materially complied with and is in compliance
in all material respects with all applicable Laws and Orders.  No
written notice has been received by Parent alleging a violation of or liability
or potential responsibility under any such Law or Order.  To Parent’s
Knowledge, since December 31, 2009, there has been no change in any applicable
Laws that may have a Parent Material Adverse Effect and there is no impending
change in any applicable Laws that may have a Parent Material Adverse
Effect.

       

      6.14  Environmental
Matters.  Parent has materially complied with and is in
compliance in all material respects with all Environmental
Laws.  Parent has not received any notice regarding any, and to
Parent’s Knowledge, there has been no, violation of, or any liability or
investigatory, corrective or remedial obligation under, any Environmental Law
with respect to the past or current operations, properties or facilities of
Parent.  Parent has not treated, stored, disposed of, arranged for or
permitted the disposal of, transported, handled, or released any Hazardous
Substance in a manner which has given rise to any liabilities or investigatory,
corrective or remedial obligations pursuant to Environmental Laws.  To
Parent’s Knowledge, (i) there has been no disposal, burial or placement of
Hazardous Substances on or about the Parent Leased Real Property; (ii) Parent
has not used all or part of the Parent Leased Real Property or any lands
contiguous to the Parent Leased Real Property in violation of any Environmental
Laws; (iii) there is no contamination, pollution or danger of pollution
resulting from a condition on or under the Parent Leased Real Property, or on or
under any lands in the vicinity of the Parent Leased Real Property; (iv) there
are no storage tanks on or under the Parent Leased Real Property; (v)
environmental conditions associated with the Parent Leased Real Property are in
compliance with all Environmental Laws; and (vi) Parent has disclosed to the
Company all information in Parent’s possession relating to the environmental
condition of the Parent Leased Real Property.  Parent has not received
any information from neighboring property owners indicating they have any
concerns about existing environmental conditions which could affect the Parent
Leased Real Property or suggesting they might look to Parent for contribution to
clean up such condition.

       

       

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      6.15  Employees.  Parent
has materially complied with and is in compliance in all material respects with
all applicable Laws relating to the employment of labor.  There are no
administrative charges or court complaints pending or, to Parent’s Knowledge,
threatened against Parent before the U.S.  Equal Employment
Opportunity Commission or any federal, foreign, state or local court or agency
concerning alleged employment discrimination or any other matters relating to
the employment of labor.  To Parent’s Knowledge, there is no basis for
any administrative charge or court complaint regarding any matters relating to
the employment of labor.  Parent has not experienced any union
organization attempts, labor disputes or work stoppage or slowdowns due to labor
disagreements.  There is no labor strike, dispute, work stoppage or
slowdown involving any of the employees of Parent pending or, to Parent’s
Knowledge, threatened.  Parent is not a party to any labor or union
agreement.

       

      6.16  Employee Benefit
Plans.

       

      (a)  Parent
has no employee pension benefit plan as defined in Section 3(2) of ERISA, has no
employee welfare benefit plan (as defined in Section 3(1) of ERISA, and has no
Parent Employee Plan.  Parent maintains no plan, policy, program or
arrangement which provides nonqualified deferred compensation benefits,
equity-based compensation, options or bonuses, health, life, disability,
accident, vacation, severance, tuition reimbursement or other fringe benefits or
with respect to which Parent is reasonably expected to have any material
Liability.

       

      (b)  Parent is
not and has not been a member of a controlled group or any other similar
arrangement that would be combined with Parent under Code Section(s) 414(b),
(c), (m) or (o) participates in or contributes to and has not participated in or
contributed to any multiemployer plan (as defined in Section 3(37) of
ERISA).

       

      (c)  Parent
provides no post-termination health, accident or life insurance
benefits.

       

      (d)  Parent
has no plan subject to Title IV of ERISA or the minimum funding requirements of
Code Section 412.

       

       

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      (e)  No
contributions, premiums or other such payments have been paid, or are required
to be paid now or in the future, by Parent to any employer or employee plan for
any period ending on or before the Effective Time.

       

      (f)  The
completion of the transactions contemplated by this Agreement will not result,
separately or in the aggregate, in the payment of any amount that will be: (i)
non-deductible to Parent or the Surviving Corporation under Code Section 280G;
(ii) characterized as an “excess parachute payment” within the meaning of Code
Section 280G; or (iii) subject to the excise tax under Code Section
4999.

       

      (g)  Since its
inception, Parent has acted in good faith compliance with the requirements of
Code Section 409A and, to Parent’s Knowledge, no employee of Parent will have
compensation includable in his or her gross compensation as a result of the
application of Code Section 409A.  Parent is not, nor has it ever
been, party to any tax indemnity agreement or other agreement that requires
Parent to “gross up” or otherwise compensate any employee because of the
imposition of any income, excise or other Tax.

       

      6.17  Insurance.  Parent
maintains no insurance policies currently in force.

       

      6.18  Tax
Matters.

       

      (a)  Parent
has filed all material Tax Returns that it is required to file as of the date of
this Agreement and has paid in full all Taxes required to be paid by Parent as
disclosed by such Tax Returns, which Tax Returns are true, correct and complete
in all material respects.  On or before the Closing Date, Parent will
have timely filed all Tax Returns that it will have been required to file on or
before the Closing Date and will have paid in full all Taxes required to be paid
by it on or before the Closing Date as disclosed by such Tax Returns and said
Tax Returns will be true, correct and complete in all material
respects.  Parent has not requested any extension of time within which
to file any Tax Return, which Tax Return has not since been filed, nor between
the date hereof and the Effective Time will Parent request any extension of time
within which to file any Tax Return without promptly delivering to the Company a
copy of such request.  As of immediately before the Effective Time,
there will be no Liens for Taxes on any of Parent’s assets other than Permitted
Liens.  Parent has not ever been a member of a group of corporations
that file a consolidated Tax Return for federal income Taxes or a member of an
affiliated group other than a group of which Parent is the common
parent.

       

      (b)  Parent
has, and by the Closing will have, complied with all Laws relating to the
withholding of Taxes required to be paid or withheld by Parent in all respects
and has, within the manner prescribed by applicable Law, withheld from its
employees, customers and any applicable payees and paid over to the proper
Governmental Agencies all material amounts required to be withheld and paid
over.

       

      (c)  Parent
has not waived any statute of limitations or otherwise agreed to any extension
of time with respect to an assessment or collection of Taxes which is still
effective; no Proceedings with the Internal Revenue Service or a state, local or
foreign taxing authority are presently pending with regard to Taxes of Parent;
Parent has not received written notice of any impending audit relating to the
Taxes of Parent which has not yet commenced; and no deficiency for any Taxes
required to be paid by Parent has been proposed, asserted or assessed against
Parent which has not been resolved and paid in full.

       

       

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      (d)  Parent is
not a party to any Tax allocation or Tax sharing agreement.

       

      (e)  Parent
has not ever been and is not currently liable to pay any tax to, or file any Tax
Return with, any foreign Governmental Agency.

       

      6.19  Brokerage.  Except
for any finder fees that may be paid by and will be the sole responsibility of
the Parent Control Shareholders, there are no claims for brokerage commissions,
finders fees or similar compensation in connection with the transactions
contemplated by this Agreement based on any arrangement or agreement made by
Parent or any Parent director, officer or shareholder.

       

      6.20  Undisclosed
Liabilities.  To Parent’s knowledge, since December 31, 2009,
Parent has not incurred any Liability required to be disclosed on a balance
sheet or the notes thereto pursuant to GAAP, except for
Liabilities:

       

      (a)  Disclosed
or reserved against in the most recent balance sheet of Parent included in the
Parent Financial Statements or described in the notes thereto;

       

      (b)  Incurred
in the ordinary course of business not exceeding $5,000 in the aggregate;
or

       

      (c)  Fully
satisfied on or before the Closing Date.

       

      6.21  Information Regarding
Directors and Officers.  Parent’s Officer’s Certificate sets
forth the name of each director and executive officer of Parent and the offices
held by each such Person.

       

      6.22  Books and
Records.  The books of account, minute books, stock record
books and other records of Parent, all of which have been made available to the
Company prior to the date hereof, are complete and correct in all material
respects, and have been maintained in accordance with sound business practices,
including the maintenance of an adequate system of internal controls (except as
otherwise publicly disclosed by Parent).  The minute books of Parent
contain substantially accurate and complete records of all meetings held of, and
corporate actions taken by, the shareholders, the board of directors or any
committee of the board of directors, and no meeting of the shareholders, board
of directors or any committee of the board of directors has been held for which
minutes have not been prepared and are not contained in such minute
books.

       

      6.23  Interest in Customers,
Suppliers and Competitors.  To Parent’s Knowledge, no officer
or director of Parent, nor any Affiliate thereof or any member of their
respective family, has any direct or indirect interest in any customer, supplier
or competitor of the Company or in any other business, firm or Person with whom
the Company does business.  Parent has no outstanding loans to any
officer, director or shareholder of Parent or the Company or any member of their
respective families.

       

       

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      6.24  Other
Filings.  The information to be supplied by Parent for
inclusion in any Other Filings shall not, on the date the such materials are
first mailed to Parent’s shareholders, contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein
or necessary in order to make the statements therein, in light of the
circumstances under which they are made, not false or misleading.  If
at any time prior to the Effective Time, any event relating to Parent or any of
its Affiliates, officers or directors should be discovered by Parent which
should be set forth in a supplement to any Other Filings, Parent shall promptly
inform the Company and promptly take action to supplement the Other
Filings.  Notwithstanding the foregoing, Parent makes no
representation or warranty with respect to any information supplied by the
Company or any Person other than Parent or any agent or representative thereof
which is contained in any Other Filings.

       

      6.25  Full
Disclosure.  None of the representations and warranties made by
Parent or the merger Subsidiary in this Agreement and the schedules,
certificates and other documents delivered to the Company contains, or will
contain, any untrue statement of a material fact or omit to state a material
fact necessary to make the statements therein in light of the circumstances in
which they were made, not misleading as of the date to which it
speaks.

       

      6.26  SEC
Filings.  Parent has made available to the Company each
statement, report, registration statement (with the prospectus in the form filed
pursuant to Rule 424(b) of the 1933 Act), and other filings filed with the SEC
by Parent since inception and, prior to the Closing, Parent will have furnished
or made available to the Company true and complete copies of any additional
documents filed with the SEC by Parent after the date hereof and prior to the
Closing (collectively, the “Parent SEC
Documents”).  As of their respective filing dates, the Parent
SEC Documents complied in all material respects with the requirements of the
1934 Act and the 1933 Act.  Parent has timely filed with the SEC all
filings required by the 1934 Act and the 1933 Act and has provided all
certifications of its officers which are required by Sarbanes-Oxley and the
rules and regulations promulgated in connection therewith, as such rules and
regulations have been enacted by the SEC.  All documents required to
be filed as exhibits to the Parent SEC Documents have been so filed, and all
material contracts so filed as exhibits are in full force and effect, except
those which have expired or been terminated in accordance with their terms, and
Parent is not in material default thereof.  None of the Parent SEC
Documents, as of their respective dates, contained any untrue statement of a
material fact or omitted to state a material fact required to be stated therein
or necessary in order to make the statements made therein, in light of the
circumstances under which they were made, not misleading; provided, however,
that Parent makes no representations or warranties as to the information
contained in or omitted from Parent SEC Documents in reliance upon and in
conformity with information furnished to Parent by or on behalf of
counterparties to the material contracts included in the Parent SEC
Documents.

       

      6.27  Independent
Accountants.  SAI are independent public accountants with
respect to Parent within the meaning of the 1933 Act and the applicable
published rules and regulations thereunder and the rules, regulations and
standards of the PCAOB.  SAI is duly registered and in good standing
with the PCAOB.  SAI has not, during the periods covered by the Parent
Financial Statements, provided to Parent any material non-audit services, as
such term is used in Section 10A(g) of the 1934 Act.

       

       

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      6.28  Sarbanes-Oxley
Compliance.  Parent has, since being legally required to do so,
and its directors and officers, in their capacities as such have, taken all
actions necessary to comply with the provisions of Sarbanes-Oxley, including
Section 402 related to loans, to the extent such compliance is required by
Sarbanes-Oxley or the rules and regulations of the SEC.

       

      6.29  FCPA
Compliance.  None of Parent or any director, officer, agent,
employee or affiliate of Parent is aware of or has taken any action, directly or
indirectly, that would result in a violation by such persons of the FCPA,
including, without limitation, making use of the mails or any means or
instrumentality of interstate commerce corruptly in furtherance of an offer,
payment, promise to pay or authorization of the payment of any money, or other
property, gift, promise to give, or authorization of the giving of anything of
value to any “foreign official” (as such term is defined in the FCPA) or any
foreign political party or official thereof or any candidate for foreign
political office, in contravention of the FCPA.  Parent and, to the
knowledge of Parent, its executive officers and directors, have conducted their
businesses in compliance with the FCPA and have instituted and maintain policies
and procedures designed to ensure, and which are reasonably expected to continue
to ensure, continued compliance therewith.

       

      6.30  Financial Recordkeeping and
Reporting Compliance.  The operations of Parent are and have
been conducted at all times in compliance with applicable financial
recordkeeping and reporting requirements of the Money Laundering and Related
Laws, and no action, suit or proceeding by or before any court or Governmental
Authority or any arbitrator involving Parent with respect to the Money
Laundering and Related Laws is pending or, to the best knowledge of Parent,
threatened.  Parent has not violated the Money Laundering and Related
Laws, and/or the rules and regulations promulgated under any such law, or any
successor law.

       

      6.31  OFAC
Compliance.  None of Parent or, to the knowledge of Parent, any
director, officer, agent, employee or affiliate of Parent is currently subject
to any U.S. sanctions administered by OFAC, and Parent has not knowingly
directly or indirectly lent, contributed or otherwise made available funds to
any Subsidiary, joint venture partner or other person or entity, for the purpose
of financing the activities of any person currently subject to any U.S.
sanctions administered by OFAC.

       

      6.32  Internal
Controls.  Except as otherwise disclosed in the Parent SEC
Documents, Parent has a system of internal accounting controls sufficient to
provide reasonable assurance that (i) transactions are executed in accordance
with management’s general or specific authorizations; (ii) transactions are
recorded as necessary to permit preparation of Parent Financial Statements in
conformity with GAAP and to maintain asset accountability; (iii) access to
assets is permitted only in accordance with management’s general or specific
authorization; and (iv) the recorded accountability for assets is compared with
the existing assets at reasonable intervals and appropriate action is taken with
respect to any differences.

       

       

       

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      ARTICLE
VII

       

      TERMINATION

       

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

       

      (a)  By the
mutual consent of Parent and the Company;

       

      (b)  By Parent
providing written notice to the Company at any time prior to the Closing in the
event (i) the Company is in material breach of any representation, warranty,
covenant or agreement contained in this Agreement, (ii) Parent has notified the
Company of the breach and such breach has continued without cure for a period of
30 days after delivery of such notice of breach, and (iii) there is a reasonable
likelihood that such breach will result in an inability of the Company to
satisfy the conditions set forth in Sections 3.2(a) or
3.2(b);

       

      (c)  By the
Company providing written notice to Parent at any time prior to the Closing in
the event (i) Parent is in material breach of any representation, warranty,
covenant or agreement contained in this Agreement, (ii) the Company has notified
Parent of the breach and such breach has continued without cure for a period of
30 days after delivery of such notice of breach, and (iii) there is a reasonable
likelihood that such breach will result in an inability of Parent to satisfy the
conditions set forth in Sections 3.1(a) or
3.1(b);

       

      (d)  Subject
to complying with Section 7.1(f) by
either Parent or the Company if the transactions contemplated hereby have not
been consummated by August 24, 2010; provided, however, that a Party
shall not be entitled to terminate this Agreement pursuant to this subsection
(d) if that Party’s breach of this Agreement has prevented the consummation of
the transactions contemplated hereby at or prior to such time; or

       

      Any
dispute between the Parties with respect to any Party’s right to terminate this
Agreement shall be resolved in accordance with Section
8.11.

       

      7.2  Effect of
Termination.  In the event of termination of this Agreement as
provided in Section
7.1 hereof, this Agreement shall forthwith become void and there shall be
no liability or obligation hereunder on the part of any of the Company or
Parent, except that, in the event of an intentional or willful breach of this
Agreement prior to the time of such termination, the other Parties hereto shall
be entitled to the remedy of specific performance of the covenants contained
herein.

       

      7.3  Waiver of Right to
Terminate.  Parent shall be deemed to have waived its right to
terminate this Agreement upon consummation of the transactions contemplated
hereby.  No such waiver shall constitute a waiver of any other rights
arising from the non-fulfillment of any condition precedent set forth in Article III hereof or
any misrepresentation or breach of any warranty, covenant or agreement contained
herein unless such waiver is made in writing and then any such written waiver
shall only constitute a waiver of the specific matters set forth
therein.

       

       

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      ARTICLE
VIII

       

      ADDITIONAL AGREEMENTS;
COVENANTS AFTER CLOSING

       

      8.1  Mutual
Assistance.  Subsequent to the Closing, each of the Parties
hereto, at their own cost, will assist each other (including by the retention of
records and the provision of access to relevant records) in the preparation of
their respective Tax Returns and the filing and execution of Tax elections, if
required, as well as in the defense of any audits or litigation that may ensue
as a result of the filing thereof, to the extent that such assistance is
reasonably requested.

       

      8.2  Survival of Representations,
Warranties, Covenants and Agreements.  Notwithstanding any
right of Parent or the Company (whether or not exercised) to investigate the
affairs of the Company or Parent or a waiver by Parent or the Company of any
condition to Closing set forth in this Agreement, each Party shall have the
right to rely fully upon the representations, warranties, covenants and
agreements of the other Party contained in this Agreement or in any instrument
delivered pursuant to this Agreement.  Unless earlier terminated under
Article VII,
all of the representations, warranties, covenants and agreements of Parent and
the Merger Subsidiary contained in this Agreement or in any instrument delivered
pursuant to this Agreement shall survive the Closing and continue until the
second anniversary of the Closing, provided, however, that the representations,
warranties and agreements set forth in Sections 6.18 (Taxes) and
8.1 (Tax
Cooperation) shall survive until expiration of the applicable statute of
limitations for claims applicable to the matters covered thereby.

       

      8.3  Indemnification by the
Parent Control Shareholders.

       

      (a)  The
Parent Control Shareholders hereby agree to jointly and severally indemnify and
hold harmless the Company and the Company’s executive officers, directors,
Shareholders, employees and agents, including any person who is an officer,
director, employee or agent of the Company prior to the Closing, against any and
all losses, Claims, damages, Liabilities, costs and expenses (including but not
limited to reasonable attorneys’ and expert witness fees and other expenses of
investigation and defense of any Claims or actions) to which they or any of them
may become subject due to, or which results from, any of the
following:

       

      (i)  Any
breach of Parent’s covenants, agreements, warranties or representations
contained in this Agreement as of the date made or as of the Closing
Date.

       

      (ii)  Any
misstatement of a material fact contained in this Agreement or in any of the
documents executed in connection with transactions contemplated by this
Agreement, but only if the misstatement relates to information concerning
Parent.

       

      (iii)  The
omission to state any fact necessary to make the statements contained in this
Agreement or in any of the documents executed in connection with the
transactions contemplated by this Agreement not misleading, but only if the
omission relates to information concerning Parent.

       

       

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      (iv)  The
operations of Parent or the acts of its employees, acting in their capacities as
such, prior to the Closing.

       

      (v)  The
ownership of the Real Estate (including, without limitation, the violation or
infringement of any Environmental Laws) by Parent prior to the
Closing.

       

      (vi)  Actions
or inactions of Parent, or the agents of Parent acting in their capacity as
agents, prior to the Closing.

       

      (vii)  Any Taxes
due and payable by Parent which are payable for activities of Parent prior to
the Closing.

       

      (b)  Notwithstanding
the foregoing, the maximum liability of each of the Parent Control Shareholders
for indemnification in connection with the foregoing shall not exceed
$225,000.

       

      (c)  Notwithstanding
any other provision of this Agreement, including but not limited to Sections
8.3(b) and 8.5, to the extent that the Company incurs any liabilities, costs or
other damages related to the storage, contamination, placement or contamination
of the Real Estate by Hazardous Substances (whether initiated or maintained by
Parent or an adjoining property owner), each Parent Control Shareholder shall be
liable for indemnification for the total amount of any such liability, cost or
other damage related to such Hazardous Substances.

       

      8.4  Indemnification by the
Company.  [Intentionally Omitted]

       

      8.5  Remedies.  The
Parties shall retain all rights to bring actions seeking specific performance as
provided in Section
8.6 and other equitable relief, except as expressly provided otherwise in
Section 8.7;
provided, however, that from and after the Closing, the rights provided for in
Article VIII
(other than as described in Section 8.6) shall be
the exclusive remedy of any Party for damages resulting from the breach of any
provision of this Agreement by any other Party except for damages incurred as a
result of fraud, willful misconduct or willful representation.

       

      8.6  Specific
Performance.  Each Party’s obligation under this Agreement is
unique.  If any Party should default in its obligations under this
Agreement, the Parties each acknowledge that it would be extremely impracticable
to measure the resulting damages; accordingly, the nondefaulting Party, in
addition to any other available rights or remedies, may sue in equity for
specific performance, and the Parties each expressly waive the defense that a
remedy in damages will be adequate.  Notwithstanding any breach or
default by any of the Parties of any of their respective representations,
warranties, covenants or agreements under this Agreement, if Closing occurs as
contemplated, each of the Parties waives any rights that it or they may have to
rescind this Agreement or the transactions consummated pursuant to it; provided,
however, this wavier shall not affect any other rights or remedies available to
the Parties under this Agreement or under applicable Law.

       

      46

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      8.7  Notice Of
Claim.  Should any Indemnified Party suffer any loss, damage or
expense for which the Indemnifying Party is obligated to indemnify and hold such
Indemnified Party harmless pursuant to Article VIII of this
Agreement, the following shall apply: Promptly upon receipt by the Indemnified
Party of notice of any demand, assertion, Claim, action or proceeding, judicial
or otherwise, with respect to any matter as to which the Indemnifying Party is
obligated to indemnify the Indemnified Party under the provisions of this
Agreement, the Indemnified Party shall give prompt notice thereof to the
Indemnifying Party, together with a statement of such information respecting
such matter as the Indemnified Party shall then have and a statement advising
that the Indemnifying Party must notify it within 10 days whether the
Indemnifying Party will undertake the defense of such
matter.  Promptly after receipt by an Indemnified Party of notice of
the commencement of any action, such Indemnified Party will, if a Claim in
respect thereof is to be made by the Indemnified Party against the Indemnifying
Party, notify the Indemnifying Party in writing of the commencement thereof; but
the failure so to notify the Indemnifying Party (i) will not relieve the
Indemnifying Party from liability under this Section except to the extent that
such failure results in prejudice or other damage to the Indemnifying Party, and
(ii) will not, in any event, relieve the Indemnifying Party from any obligations
to any Indemnified Party other than the indemnification obligation provided
above.  Notice of the intention of the Indemnifying Party to contest
any such Claim, and the identity of counsel that the Indemnifying Party intends
to employ to contest any such Claim, shall be given by the Indemnifying Party to
the Indemnified Party within 10 days from the date of receipt by the
Indemnifying Party of notice by the Indemnified Party of the assertion of any
such Claim.  The Indemnified Party shall have the right to approve the
counsel named in the Notice provided pursuant to the preceding sentence,
provided that such approval shall not be unreasonably withheld.  The
Indemnified Party shall have the right to participate in such proceedings and to
be represented by attorneys of its own choosing; however, such representation
shall be at the Indemnified Party’s own expense if the Indemnifying Party
selects different counsel of its own choosing.  Notwithstanding the
Indemnifying Party’s election to appoint counsel to represent the Indemnified
Party in an action, the Indemnified Party shall have the right to employ
separate counsel and the Indemnifying Party shall bear the reasonable fees,
costs and expenses of such separate counsel if (i) the use of counsel chosen by
the Indemnifying Party to represent the Indemnified Party would present such
counsel with a conflict of interest, or (ii) the actual or potential defendants
in, or targets of, any such action include both the Indemnified Party and the
Indemnifying Party, the Indemnifying Party has chosen the same counsel to
represent the Indemnified Party and the Indemnifying Party, and the Indemnified
Party shall have reasonably concluded that there may be legal defenses available
to it and/or other Indemnified Parties which are different from or additional to
those available to the Indemnifying Party.  If the Indemnifying Party
does not elect to contest any Claim, the Indemnifying Party shall be bound by
the results obtained with respect thereto by the Indemnified Party, including
any settlement of such Claim.  If the Indemnifying Party elects to
contest any Claim, the Indemnified Party shall be bound by the results obtained
with respect thereto by the Indemnifying Party, including any settlement of such
Claim.  Notwithstanding any language to the contrary herein, an
Indemnifying Party will not, without the prior written consent of the
Indemnified Party, settle or compromise or consent to the entry of any judgment
with respect to any pending or threatened Claim, action, suit or proceeding in
respect of which indemnification may be sought hereunder (whether or not the
Indemnified Party is an actual or potential party to such Claim or action)
unless such settlement, compromise or consent includes an unconditional release
of each Indemnified Party from all Liability arising out of such Claim, action,
suit or proceeding.

       

       

      47

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      8.8  Confidentiality.  The
Parent Control Shareholders shall, for the period of two years from and after
the Closing Date, hold in strict confidence and will keep confidential all
information regarding the Company and the Business and will not use or disclose
any such information to any Person except: (a) with the prior written consent of
the Company; (b) to the extent that such disclosure is required by Law (provided
that the disclosing party agrees to give to the Company prompt notice thereof so
that the Company may seek a protective order or other appropriate remedy in
connection therewith); or (c) to the extent that such information can be shown
to be generally available to the public other than as a result of disclosure by
one or more of the Parent Control Shareholders or their
representatives.

       

      8.9  Expenses.  Except
as otherwise set forth in this Agreement, each of the Parties hereto shall be
solely responsible for and shall bear all of its own costs and expenses incident
to its obligations under and in respect of this Agreement and the transactions
contemplated hereby, including, but not limited to, any such costs and expenses
incurred by any Party hereto in connection with the negotiation, preparation and
performance of and compliance with the terms of this Agreement (including,
without limitation, the fees and expenses of legal counsel, accountants,
investment bankers or other representatives and consultants), regardless of
whether the transactions contemplated hereby are consummated, it being
understood and agreed that the Parent Control Shareholders shall pay all costs,
fees and expenses incurred by Parent and the Merger Subsidiary in connection
with this transaction prior to Closing if the assets of Parent are not
sufficient to pay such costs, fees and expenses, except for up to $200,000 of
the expenses described in Section
3.1(f).

       

      8.10  Disputes; Arbitration
Procedure.

       

      (a)  Each of
the Parties hereto agrees that it will attempt to settle any dispute, claim or
controversy arising out of this Agreement through good faith negotiations in the
spirit of mutual cooperation between senior business executives of Parent and
the Company who have the authority to resolve the controversy.

       

      (b)  Any
dispute, claim or controversy (other than claims for equitable relief or
rescission of this Agreement) that cannot be resolved by the Parties hereto
through good faith negotiations within thirty (30) days of notification to the
counter-party of the commencement of the dispute resolution procedures of this
Section 8.10
will then, upon the written request of any Party hereto, be resolved by binding
arbitration conducted in accordance with the then effective Commercial
Arbitration Rules of the American Arbitration Association by a sole
arbitrator.  Such arbitrator shall be mutually agreeable to the
Parties.  If the Parties cannot mutually agree upon the selection of
an arbitrator, the arbitrator shall be selected in accordance with the rules of
the then effective Commercial Arbitration Rules of the American Arbitration
Association.  To the extent not governed by such rules, such
arbitrator shall be directed by the Parties to set a schedule for determination
of such dispute, claim or controversy that is reasonable under the
circumstances.  Such arbitrator shall be directed by the Parties to
determine the dispute in accordance with this Agreement and the substantive
rules of law (but not the rules of procedure or evidence) that would be applied
by a federal court required to apply the internal law (and not the law of
conflicts) of the State of California.  The arbitration will be
conducted in Los Angeles, California.  Judgment upon the award
rendered by the arbitrator may be entered by any court having
jurisdiction.

       

       

      48

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (c)  Nothing
contained in this Section 8.10 shall
prevent any Party hereto from resorting to judicial process if injunctive or
other equitable relief from a court is necessary to prevent injury to such Party
or its Affiliates.  The use of arbitration procedures will not be
construed under the doctrine of laches, waiver or estoppel to affect adversely
the rights of any Party hereto to assert any claim or defense.

       

      8.11  Further
Transfers.  Each of the Parties hereto shall, and shall cause
its Affiliates to, execute and deliver such further instruments and take such
additional action as any other Party hereto may reasonably request to effect or
consummate the transactions contemplated hereby.  Each such Party
shall, on or prior to the Closing, use its best efforts to fulfill or obtain the
fulfillment of the conditions precedent to the consummation of the transactions
contemplated hereby, including the execution and delivery of any documents,
certificates, instruments or other papers that are reasonably required for the
consummation of the transactions contemplated hereby.

       

      8.12  Transfer Taxes; Recording
Charges.  Notwithstanding anything to the contrary herein, all
transfer, documentary, sales, use, stamp, registration and other such similar
Taxes, and all conveyance fees, recording charges and other fees and charges
(including any penalties and interest) incurred in connection with consummation
of the transactions contemplated by this Agreement shall be paid by the Party
incurring such Taxes when due, and each Party will, at their own expense, file
all necessary Tax Returns and other documentation with respect to all such
Taxes, fees and charges, and, if required by applicable law.

       

      ARTICLE
IX

       

      MISCELLANEOUS

       

      9.1  Amendment and
Waiver.  This Agreement may not be amended, altered or modified
except by a written instrument executed by Parent, the Merger Subsidiary and the
Company .  No course of dealing between or among any Persons having
any interest in this Agreement will be deemed effective to modify, amend or
discharge any part of this Agreement or any rights or obligations of any Person
under or by reason of this Agreement.  No waiver of any of the
provisions of this Agreement shall be deemed or shall constitute, a waiver of
any other provisions, whether or not similar, nor shall any waiver constitute a
continuing waiver.

       

      9.2  Notices.  All
notices, demands and other communications to be given or delivered to Parent,
the Company or the Parent Control Shareholders under or by reason of the
provisions of this Agreement will be in writing and will be deemed to have been
given when personally delivered, sent by reputable overnight courier or
transmitted by facsimile or telecopy (transmission confirmed), to the addresses
indicated below (unless another address is so specified in
writing):

       

      49

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                If to Parent or the Merger Subsidiary prior to the
      Closing or to the Parent Control Shareholders after the Closing,
      to:

                 

                c/o
      Borivoje Vukadinovic

                1251
      Point View Street

                Los
      Angeles, California 90035

                 

              
	
                with
      a copy to:

                 

                Law
      Office of Gary A. Agron

                5445
      DTC Parkway

                Suite
      520

                Greenwood
      Village, Colorado 80111

                Attention:
      Gary A. Agron, Esq.

              
	
                 

                If to the Company prior to the Closing or to the
      Surviving Corporation or Parent after the Closing, to:

                 

                NewGen
      BioPharma Corporation

                210
      Jacobs Creek Road

                Titusville,
      New Jersey 08560

                Attention:
      Dr. Navdeep Jaikaria

              
	
                 

                with
      a copy to:

                 

                TroyGould
      PC

                1801
      Century Park East

                Suite
      1600

                Los
      Angeles, California 90067-2367

                Attention:
      Sanford J. Hillsberg, Esq.

              

      

       

      9.3  Assignment.  This
Agreement and all of the provisions hereof shall be binding upon and inure to
the benefit of each of the Parties hereto and their respective successors and
permitted assigns.  Neither this Agreement nor any rights, benefits or
obligations set forth herein may be assigned by any of the Parties
hereto.

       

      9.4  Severability.  Whenever
possible, each provision of this Agreement will be interpreted in such manner as
to be effective and valid under applicable law, but if any provision of this
Agreement is held to be prohibited by or invalid under applicable law, such
provision will be ineffective only to the extent of such prohibition or
invalidity, without invalidating the remainder of such provision or the
remaining provisions of this Agreement.

       

      9.5  No Strict
Construction.  The language used in this Agreement shall be
deemed to be the language chosen by the Parties hereto to express their mutual
intent, and no rule of strict construction will be applied against any
Person.  The use of the word “including” in this Agreement or in any
of the agreements contemplated hereby shall be by way of example rather than by
limitation.

       

       

      50

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      9.6  Captions.  The
captions used in this Agreement are for convenience of reference only and do not
constitute a part of this Agreement and shall not be deemed to limit,
characterize or in any way affect any provision of this Agreement, and all
provisions of this Agreement shall be enforced and construed as if no caption
had been used in this Agreement.

       

      9.7  No Third Party
Beneficiaries.  Except as otherwise expressly set forth in this
Agreement, nothing herein expressed or implied is intended or shall be construed
to confer upon or give to any Person, other than the Parties hereto and any
permitted successors and assigns, any rights or remedies under or by reason of
this Agreement, such third parties specifically including, without limitation,
employees, creditors or Shareholders of any of the Parties (other than the Chay
Control Shareholders).

       

      9.8  Complete
Agreement.  This document and the documents referred to herein
contain the complete Agreement between the Parties and supersede any prior
understandings, agreements or representations by or between the Parties, written
or oral, which may have related to the subject matter hereof in any way,
including, without limitation, that certain Letter of Intent dated June 18,
2010.

       

      9.9  Counterparts.  This
Agreement may be executed in one or more counterparts, any one of which may be
by facsimile, and all of which taken together shall constitute one and the same
instrument.

       

      9.10  Governing Law and
Jurisdiction.  This Agreement shall be governed by and
construed in accordance with the domestic laws of the State of California,
without giving effect to any choice of law or conflict of law provision or rule
(whether of the State of Delaware or any other jurisdiction) that would cause
the application of the laws of any jurisdiction other than the State of
California.  Except as to matters subject to arbitration (other than
enforcement of awards therefrom or enforcement of any Party’s agreement to
arbitrate) as described in Section 8.10, to the
extent permitted by law, each of the Parties hereto hereby irrevocably submits
to the jurisdiction of any state court sitting in Los Angeles, California or
United States federal court sitting in Los Angeles, California, over any suit,
action or other proceeding brought by any Party arising out of or relating to
this Agreement, and each of the Parties hereto hereby irrevocably agrees that
all claims with respect to any such suit, action or other proceeding shall be
heard and determined in such courts.

       

      [Remainder
of page intentionally left blank]

       

       

       

       

       

       

      51

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      * * *
*

       

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

       

      
        	 
      	
                COMPANY:

                 

                NewGen
      BioPharma Corporation

                 

                 

                By:               /s/
      Navdeep Jaikaria                                                            

                Name:             Dr.
      Navdeep Jaikaria

                Title:             Chief
      Executive Officer

                 

                 

              
	 
      	
                PARENT:

                 

                Retrospettiva,
      Inc.

                 

                 

                By:          /s/
      Borivoje Vukadinovic                                                            

                Name:             Borivoje
      Vukadinovic

                Title:             Chief
      Executive Officer

                 

                 

              
	 
      	
                MERGER
      SUBSIDIARY:

                 

                Retrospettiva
      Acquisitions, Inc.

                 

                 

                By:             /s/
      Borivoje Vukadinovic                                                         

                Name:             Borivoje
      Vukadinovic

                Title:           
        Chief Executive Officer

                 

              
	
                 

                ACKNOWLEDGED
      AND AGREED AS TO SECTIONS 4.11 AND 8.3 ONLY:

                 

              
	
                PARENT
      CONTROL SHAREHOLDERS:

                 

              	 
      
	
                /s/
      Borivoje
      Vukadinovic                                                                    

                Borivoje
      Vukadinovic

                 

              
	
                /s/ Gary
      A.
      Agron                                                                   

                Gary
      A. Agron

              

      

       

       

      52

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

     

     

     

     

     

    
      Exhibit
A

       

      Certificate
of Merger

       

      [See attached]

       

       

       

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      UMC-2
11/03

      

      New
Jersey Division of Revenue

      Certificate
of Merger/Consolidation

      (Profit
Corporations)

       

      This form
may be used to record the merger or consolidation of a corporation with or into
another business entity or entities, pursuant to NJSA 14A. Applicants must
insure strict compliance with the requirements of State law and insure that all
filing requirements are met. This form is intended to simplify filing with the
State Treasurer. Applicants are advised to seek out private legal advice before
submitting filings to the Department of the Treasury, Division of Revenue’s
office.

       

      1.      Type
of Filing (check
one):                                                ý
Merger                       ̈  Consolidation

      

      2.      Name of Surviving Business
Entity:  NewGen
BioPharma Corporation

      

      3.      Name(s)/Jurisdiction(s)
of All Participating Business Entities including Surviving Entity:

       

      
      

      
        	Name	Jurisdiction	

                Identification
      # Assigned by

                Treasurer
      (if applicable)

              
	

                NewGen
      BioPharma Corporation

              	New Jersey	 
	

                Retrospettiva
      Acquisitions, Inc.

              	New Jersey	 

      

       

      4.      Date
Merger/Consolidation adopted:

      

      5.      Voting:
(all corporations involved; attach additional sheets if necessary)

       
-a      Corp. Name NewGen BioPharma
Corporation                                                                                     Outstanding Shares

      

      If
applicable, set forth the number and designation of any class or series of
shares entitled to vote.

       

      Voting
For ___________________       Voting
Against ___________________; OR

       

      

      Merger/consolidation
plan was adopted by the unanimous written consent of the shareholders without a
meeting (check) ý

      -b      Corp.
Name  Retrospettiva
Acquisitions,
Inc.                                                                                     Outstanding
Shares

      

      If
applicable, set forth the number and designation of any class or series of
shares entitled to vote.

      

      
        Voting
For ___________________       Voting
Against ___________________; OR

         

      Merger/consolidation
plan was adopted by the unanimous written consent of the shareholders without a
meeting (check) ý

      -c      Corp.
Name                                                                                     Outstanding
Shares

      

      If
applicable, set forth the number and designation of any class or series of
shares entitled to vote.

       

      
        Voting
For ___________________       Voting
Against ___________________; OR

      

      Merger/consolidation
plan was adopted by the unanimous written consent of the shareholders without a
meeting (check)  ̈

      

      
        	
                6.

              	
                Service
      of Process Address (For use if the surviving business entity is not
      authorized or registered by the State
Treasurer:

              

      

      

      The
surviving business entity agrees that it may be served with process in this
State in any action, suit or proceeding for the enforcement of any obligation of
any domestic or foreign corporation, previously amenable to suit in this State,
which is a party to this merger/consolidation, and in any proceeding for the
enforcement of the rights of a dissenting shareholder of such domestic
corporation against the surviving corporation.

      

      The
Treasurer is hereby appointed as agent to accept service of process in any such
action, suit, or proceeding which shall be forwarded to the surviving business
entity at the Service of Process address stated above.

      

      The
Surviving Business Entity also agrees that it will promptly pay to the
dissenting shareholders of any such domestic corporation the amount, if any, to
which they may be entitled under the provisions of Title 14A.

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Certificate
of Merger/Consolidation

      UMC-2

      Page
2

      

      

      

      
        	
                7.

              	
                Effective
      Date (see inst.):

              

      

      

      
        	
                Signature

              	 
      	
                Name

              	 
      	
                Title

              	 
      	
                Date

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                Dr.
      Navdeep Jaikaria

              	 
      	
                NewGen
      CEO

              	 
      	 
      
	 
      	 
      	
                Borivoje
      Vukadinovic

              	 
      	
                Retrospettiva
      CEO

              	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      

      

      

      

      **Remember
to attach: 1) the plan of merger or consolidation; and 2) if the surviving or
resulting business is not a registered or authorized domestic or foreign
corporation, a Tax Clearance Certificate for each participating
corporation.

       

      

       

      NJ
Division of Revenue, PO Box 308, Trenton NJ 08646

    

     

     

     

     

     

     

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

     

     

    
      Exhibit
B

       

      Lock-Up
Agreement of Parent Control Shareholders

       

      [See attached]

       

       

       

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      

      LOCK-UP
AGREEMENT

       

      THIS
LOCK-UP AGREEMENT (this “Agreement”) is dated
as of August ___, 2010 (“Effective Date”), by
and among Borivoje Vukadinovic and Gary A. Agron (each a “Holder” and
collectively, the “Holders”) and
Retrospettiva, Inc., a California corporation (“Parent”).  Capitalized
terms used but not otherwise defined herein shall have the meaning ascribed to
such terms in the Merger Agreement (as defined below).

       

      W I T N E S S E T
H

       

      WHEREAS,
pursuant to that certain Agreement and Plan of Merger, dated as of July 22, 2010
(“Merger
Agreement”), by and among NewGen BioPharma Corporation, a New Jersey
corporation (“Company”), Parent and
Retrospettiva Acquisitions, Inc., a New Jersey corporation and wholly-owned
subsidiary of Parent (the “Merger Subsidiary”),
Merger Subsidiary will be merged with and into Company;

       

      WHEREAS,
Holders are the beneficial owner of the Lock-up Shares (as defined below);
and

       

      WHEREAS,
as a material inducement for the Company to enter into and consummate the
transactions contemplated by the Merger Agreement, Holders have agreed to
execute, deliver and be bound by the terms and conditions of this
Agreement.

       

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

       

      1.  Definitions.

       

      (a)  “Lock-Up Shares” means
the shares of common stock, no par value per share (“Common Stock”), of
Parent beneficially owned by the respective Holders as specified on the
signature hereto (which constitutes all of the shares of Common Stock
beneficially owned by each Holder as of the Effective Date after taking into
account the sale by each Holder to the Company of any shares of Parent Preferred
Stock owned by Holder), plus any additional
securities of Parent acquired during the Lock-Up Period, including, without
limitation, all
shares of Common Stock that Holders may receive as a stock dividend or other
distribution on shares of Common Stock, and shares of Common Stock that Holders
may receive in a recapitalization or similar transaction.

       

      (b)  “Lock-Up
Period” means
the period beginning on the Closing Date and ending on the first
anniversary thereof.

       

      2.  Lock-Up.

       

      (a)  Each
Holder hereby acknowledges and agrees that except as provided herein, he will
not, directly or indirectly, without the prior written consent of Parent, sell,
offer, contract to sell, pledge, grant any option to purchase or otherwise
dispose (collectively, a “Disposition”) of any
of the Lock-Up Shares at any time during the Lock-Up Period.  For the
avoidance of doubt, the foregoing restriction is expressly agreed to preclude,
among other Dispositions, each Holder from engaging in any hedging or other
transaction which is designed to or reasonably expected to lead to or result in
a Disposition of the Lock-Up Shares during the Lock-Up Period, including,
without limitation, any short sale (whether or not against the box) or any
purchase, sale or grant of any right (including, without limitation, any put or
call option) with respect to the Lock-Up Shares or with respect to any security
(other than a broad-based market basket or index) that includes, relates to or
derives any significant part of its value from the Lock-Up Shares.

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

        (b)  Holders
hereby consent to the entry of stop transfer instructions with Parent’s transfer
agent against any Disposition of the Lock-Up Shares except in compliance with
the provisions of this Agreement.  Holders also consent to the
placement of the following legend on any and all stock certificates that
evidence the Lock-Up Shares:

      

       

      “THE
SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS OF THAT CERTAIN
LOCK-UP AGREEMENT BETWEEN RETROSPETTIVA, INC. AND THE STOCKHOLDER DATED AS OF
_______, 2010.”

       

      3.  Permitted
Dispositions.  Notwithstanding Section 2 hereof, each Holder
shall be permitted to Dispose of the Lock-Up Shares as follows:

       

      (a)  Each
Holder may transfer all or any portion of the Lock-up Shares as a bona fide gift
or gifts, provided that the donee or donees thereof agree in writing to be bound
by the restrictions set forth in this Agreement;

       

      (b)  Subject
to compliance with all applicable securities laws, Holders may Dispose of any or
all of their Lock-Up Shares at any time following and subject to the
registration of their Lock-Up Shares pursuant to Section 4(a) hereof;
and

       

      (c)  Subject
to compliance with all applicable securities laws, Holders may Dispose of up to
an aggregate number of their Lock-Up Shares on a combined basis equal to the
aggregate number of shares of the Parent’s common stock owned by
Dr. Navdeep Jaikaria and the other Company founders (Tom Korula, Abu Alam
and Dinesh Shenoy) that are sold or otherwise disposed of by him (excluding
Section 3(a) gifts) during the one-year period following the Closing Date
at any time following and subject to the registration of their Lock-Up Shares
pursuant to Section 4(b) hereof.

       

      4.  Piggy-Back
Registration.

       

       

      2

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (a)  If Parent
and the Company shall not have raised at least $1,000,000 in capital in one or
more private placements of their respective securities (such securities, the
“Private Placement
Shares”) completed between June 1, 2010, and thirty (30) days
following the Closing Date, and
if, at any time during the Lock-Up Period, Parent proposes to file a
registration statement under the Securities Act of 1933, as amended (“Securities Act”),
with respect to registering the Private Placement Shares, then Parent shall
(i) give written notice of such proposed filing to Holders as soon as
practicable but in no event less than ten (10) days before the anticipated
filing date, which notice shall describe the amount and type of securities to be
included in such offering, the intended method(s) of distribution, and the name
of the proposed managing underwriter or underwriters, if any, of the offering,
and (ii) offer to Holders the opportunity to register the sale of such
number of shares of the Lock-Up Shares as Holders may request in writing within
ten (10) days following receipt of such notice. Parent shall cause such
number of the Lock-Up Shares specified by Holders to be included in such
registration, to the extent Parent may do so, on the same terms and conditions
as any similar securities of Parent without violating the registration rights of
others as in effect from time to time, subject to customary underwriter cutbacks
applicable to all holders of registration rights (which cutbacks shall be pro rata according to the
shares that the holders of registration rights wish to sell) (such conditions
and limitations, collectively, the “Registration
Conditions”).  Following such registration and subject to
complying with all applicable securities laws, Holders may sell all of the
registered shares without limitation.

       

      (b)  Notwithstanding
Section 4(a), if Parent proposes to file a registration statement under the
Securities Act with respect to registering securities of Parent held by
Dr. Navdeep Jaikaria (the “Jaikaria Shares”),
then Parent or the Company, as applicable, shall (i) give written notice of
such proposed filing to Holders as soon as practicable but in no event less than
ten (10) days before the anticipated filing date, which notice shall
describe the amount and type of securities to be included in such offering, the
intended method(s) of distribution, and the name of the proposed managing
underwriter or underwriters, if any, of the offering, and (ii) offer to
Holders the opportunity to register the sale of such number of shares of the
Lock-Up Shares as Holders may request in writing within ten (10) days
following receipt of such notice. Parent shall cause such number of the Lock-Up
Shares specified to be included in such registration, subject to the
Registration Conditions; provided, however, that Holders shall
remain subject to the restrictions included in Section 3(c)
hereof.

       

      5.  Representations and
Warranties.

       

      (a)  General. Each of the
parties hereto, by their respective execution and delivery of this Agreement,
hereby represents and warrants to the other party that (a) such party has the
full right, capacity and authority to enter into, deliver and perform its
respective obligations under this Agreement, (b) this Agreement has been duly
executed and delivered by such party and is the binding and enforceable
obligation of such party, enforceable against such party in accordance with the
terms of this Agreement, and (c) the execution, delivery and performance of such
party’s obligations under this Agreement will not conflict with or breach the
terms of any other agreement, contract, commitment or understanding to which
such party is a party or to which the assets or securities of such party are
bound.

       

      (b)  Beneficial Ownership
Representation.  Each Holder hereby represents and warrants
that it does not beneficially own, directly or through its nominees, (as
determined in accordance with Section 13(d) of the Exchange Act of 1934, as
amended, and the rules and regulations promulgated thereunder) any shares of
Common Stock (or other security of Parent convertible into Common Stock), or any
economic interest therein or derivative therefrom, other than those shares
specified on the signature page hereto.

       

       

      3

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      6.  Miscellaneous.

       

      (a)  This
Agreement shall become null and void if the Merger Agreement is terminated prior
to the Closing.

       

      (b)  The
captions and headings contained in this Agreement are for convenience of
reference only and shall not control or affect the meaning or construction of
any of the provisions of this Agreement.

       

      (c)   This
Agreement may be executed in facsimile and in any number of counterparts, each
of which when so executed and delivered shall be deemed an original, but all of
which shall together constitute one and the same agreement.

       

      (d)  This
Agreement and the terms, covenants, provisions and conditions hereof shall be
binding upon, and shall inure to the benefit of, the respective heirs,
successors and assigns of the parties hereto.

       

      (e)  If any
provision of this Agreement is held to be invalid or unenforceable for any
reason, such provision will be conformed to prevailing law rather than voided,
if possible, in order to achieve the intent of the parties and, in any event,
the remaining provisions of this Agreement shall remain in full force and effect
and shall be binding upon the parties hereto.

       

      (f)  This
Agreement may be amended or modified by written agreement executed by each of
the parties hereto.

       

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

       

      (h)  This
Agreement shall be governed by and construed in accordance with the domestic
laws of the State of California.

       

      

      

      [Signature Page
Follows]

       

       

       

       

      4

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
WITNESS WHEREOF, the parties hereto have caused this Lock-Up Agreement to be
duly executed as of the date first indicated above.

       

      
        	 
      	
                RETROSPETTIVA,
      INC.

                 

                By:                                                   
                      

                Name:             Borivoje
      Vukadinovic

                Title:             Chief
      Executive Officer

                 

                 

              
	 
      	
                HOLDER:

                 

                                                             
      

                Gary
      A. Agron

                 

                 

                 

                Borivoje
      Vukadinovic

                 

              
	 
      	
                LOCK-UP
      SHARES:

                 

                 

                Gary
      A. Agron:  _____________ shares

                 

                 

                Borivoje
      Vukadinovic:  _____________ shares

                 

              

      

      

      

      

      5

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

         

         

         

         

        
          Exhibit
C

           

          Resignation
and Release

           

          [See attached]

           

           

           

           

           

           

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          

           

          RESIGNATION
AND RELEASE

           

          THIS
RESIGNATION AND RELEASE is made as of ________, 2010, by and between Jovan
Keeman (“Executive”) and
Retrospettiva, Inc., a California corporation (“Parent”). Capitalized
terms used herein but not otherwise defined shall have the meaning ascribed to
them in the Merger Agreement (as defined below).

           

          W I T N E S S E T
H

           

          WHEREAS,
pursuant to that certain Agreement and Plan of Merger, dated as of July 22, 2010
(“Merger
Agreement”), by and among NewGen BioPharma Corporation, a New Jersey
corporation (“Company”), Parent and
Retrospettiva Acquisitions, Inc., a New Jersey corporation and wholly-owned
subsidiary of Parent (the “Merger Subsidiary”),
Merger Subsidiary will be merged with and into Company; and

           

          WHEREAS,
Executive is an officer and director of Parent and this Resignation and Release
is being made pursuant to Section 2.6 of the Merger Agreement.

           

          NOW
THEREFORE, in consideration of the premises and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, and
as a material inducement to the Company to complete the transactions
contemplated by the Merger Agreement, the parties hereto, intending to be
legally bound, agrees as follows:

           

          1.  Resignation.  Effective
as of the Effective Time of the Merger, Executive hereby voluntarily resigns in
all capacities with Parent, including, without limitation, as an officer and a
director of Parent and from all committees of the Board of Directors of Parent
on which Executive serves, if any.

           

          2.  Release.  Effective
as of the Effective Time, Executive, on behalf of himself and each of his heirs,
legal representatives, successors and assigns, hereby releases, forever
discharges and covenants not to sue each of the Company, the Merger Subsidiary,
Parent and, following the Merger, the Surviving Corporation, and their
respective shareholders, directors and officers (but only in such person’s
capacity as a shareholder, director or officer, and regardless of whether such
claim may be brought individually or derivatively) (individually, a “Company Releasee” and
collectively, “Company
Releasees”), and Parent hereby releases, forever discharges and covenants
not to sue Executive, in each case from and with respect to any and all claims,
actions, demands, proceedings, causes of action, orders, obligations, contracts,
agreements, debts, costs, attorneys’ fees, charges, controversies, promises,
expenses, compensation and all other liabilities whatsoever, whether known or
unknown, suspected or unsuspected, both at law and in equity, which such party
or any of such party’s heirs, legal representatives, successors and assigns, now
has, has ever had or may hereafter have against any of the Company Releasees or
Executive, as applicable, arising contemporaneously with or prior to the
Effective Time (“Claims”), except (a)
in the case of both parties hereto, rights and claims arising under the Merger
Agreement or any other agreement between the parties which is identified in
either the Merger Agreement or the schedules attached thereto, if any, (b) in
the case of Parent’s release of Executive, claims based on willful misconduct or
malfeasance, criminal violations, willful failure to deal fairly with the Parent
(including, without limitation, conflicts of interest), or improper personal
profit or benefit at the expense of Parent, and (c) in the case of the
Executive’s release of the Company Releasees, rights and claims for
indemnification pursuant to the Articles of Incorporation or Bylaws of
Parent.

           

           

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          3.  No
Claims.  Without limiting or expanding the release of claims
set forth in Section 2 hereof, each of Executive and Parent hereby represents
and warrants to the other that it does not know of any Claim against any of the
Company Releasees in the case of the representation and warranty by Executive,
or Executive in the case of the representation and warranty by Parent,
including, without limitation, any right to any compensation or any severance
payments or any indemnification by Parent.  Executive is not aware of
any events or circumstances that would serve as the basis for a Claim by
Executive against any of the Company Releasees and Parent is not aware of any
events or circumstances that would serve as the basis for a Claim by Parent
against Executive.  Each party hereto agrees that on and after the
date hereof such party will use best efforts to cooperate with each other party
and will not disparage such other party.

           

          4.  Confidentiality.  Executive
agrees that, for the period of two (2) years from and after the Closing Date, he
shall hold in strict confidence and will keep confidential all information
regarding Parent and its operations, and will not use or disclose any such
information to any person except: (a) with the prior written consent of Parent;
(b) to the extent that such disclosure is required by law (provided that the
disclosing party agrees to give to Parent prompt notice thereof so that Parent
may seek a protective order or other appropriate remedy in connection
therewith); or (c) to the extent that such information can be shown to be
generally available to the public other than as a result of disclosure by
Executive or his representatives.

           

          5.  Indemnity.  Executive
agrees to indemnify and hold the Company Releasees harmless from and against any
and all liability, loss, cost, expense and damage arising from or related to,
directly or indirectly, (a) any Claim herein released or any suit, claim,
demand, administrative proceeding, arbitration or other alternative dispute
resolution mechanism of any kind asserting any Claim herein released initiated
against any of the Company Releasees by or on behalf of Executive and (b) any
breach of any of the provisions of this Resignation and Release by Executive or
his heirs, legal representatives, successors or assigns.  Parent
agrees to indemnify and hold Executive harmless from and against any and all
liability, loss, cost, expense and damage arising from or related to, directly
or indirectly, (a) any Claim herein released or any suit, claim, demand,
administrative proceeding, arbitration or other alternative dispute resolution
mechanism of any kind asserting any Claim herein released initiated against
Executive by or on behalf of Parent and (b) any breach of any of the provisions
of this Resignation and Release by Parent or its successors or
assigns.

           

          6.  No Limitation of
Rights.  For the avoidance of doubt, no provision of this
Resignation and Release shall in any way impair, modify, alter or limit the
right of the Company (and the Company’s executive officers, directors,
shareholders, employees and agents, including any person who is an officer,
director, employee or agent of the Company prior to the Closing) to
indemnification pursuant to Section 8.3 of the Merger Agreement.

           

           

          2

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          7.  General.

           

          a.           Each
of Parent and Executive represents and warrants that such party is fully
informed and has full knowledge and understanding of the terms, conditions and
effects of this Release and Resignation, that such party has had the opportunity
to consult with and has consulted with such party’s legal counsel regarding this
Resignation and Release, that such party has delivered this Resignation and
Release voluntarily and such party’s own free will and that, other than those
contained herein, such party has not relied on any representation of the Parent,
or any of their representatives in the case of Executive, or Executive in the
case of Parent, in connection with the execution and delivery of this
Resignation and Release.

           

          b.           Each
party agrees that this Resignation and Release shall be binding upon such party
and his or its heirs, legal representatives, successors and
assigns.

           

          c.           If
any portion of this Resignation and Release is held invalid by the final
judgment of any court of competent jurisdiction, each party agrees that the
remaining provisions shall remain in full force and effect as if such invalid
provision had not been included in this Resignation and Release.

           

          IN
WITNESS WHEREOF, Executive has executed this Resignation and Release as of the
day and year first written.

           

          
            	 
      	
                                                         
      

                    Jovan
      Keeman

                  

          

          

           

           

           

           

          3

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          RESIGNATION
AND RELEASE

           

          THIS
RESIGNATION AND RELEASE is made as of ________, 2010, by and between Gary A.
Agron (“Executive”) and
Retrospettiva, Inc., a California corporation (“Parent”). Capitalized
terms used herein but not otherwise defined shall have the meaning ascribed to
them in the Merger Agreement (as defined below).

           

          W I T N E S S E T
H

           

          WHEREAS,
pursuant to that certain Agreement and Plan of Merger, dated as of July 22, 2010
(“Merger
Agreement”), by and among NewGen BioPharma Corporation, a New Jersey
corporation (“Company”), Parent and
Retrospettiva Acquisitions, Inc., a New Jersey corporation and wholly-owned
subsidiary of Parent (the “Merger Subsidiary”),
Merger Subsidiary will be merged with and into Company; and

           

          WHEREAS,
Executive is an officer and director of Parent and this Resignation and Release
is being made pursuant to Section 2.6 of the Merger Agreement.

           

          NOW
THEREFORE, in consideration of the premises and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, and
as a material inducement to the Company to complete the transactions
contemplated by the Merger Agreement, the parties hereto, intending to be
legally bound, agrees as follows:

           

          1.  Resignation.  Effective
as of the Effective Time of the Merger, Executive hereby voluntarily resigns in
all capacities with Parent, including, without limitation, as an officer and a
director of Parent and from all committees of the Board of Directors of Parent
on which Executive serves, if any.

           

          2.  Release.  Effective
as of the Effective Time, Executive, on behalf of himself and each of his heirs,
legal representatives, successors and assigns, hereby releases, forever
discharges and covenants not to sue each of the Company, the Merger Subsidiary,
Parent and, following the Merger, the Surviving Corporation, and their
respective shareholders, directors and officers (but only in such person’s
capacity as a shareholder, director or officer, and regardless of whether such
claim may be brought individually or derivatively) (individually, a “Company Releasee” and
collectively, “Company
Releasees”), and Parent hereby releases, forever discharges and covenants
not to sue Executive, in each case from and with respect to any and all claims,
actions, demands, proceedings, causes of action, orders, obligations, contracts,
agreements, debts, costs, attorneys’ fees, charges, controversies, promises,
expenses, compensation and all other liabilities whatsoever, whether known or
unknown, suspected or unsuspected, both at law and in equity, which such party
or any of such party’s heirs, legal representatives, successors and assigns, now
has, has ever had or may hereafter have against any of the Company Releasees or
Executive, as applicable, arising contemporaneously with or prior to the
Effective Time (“Claims”), except (a)
in the case of both parties hereto, rights and claims arising under the Merger
Agreement or any other agreement between the parties which is identified in
either the Merger Agreement or the schedules attached thereto, if any, (b) in
the case of Parent’s release of Executive, claims based on willful misconduct or
malfeasance, criminal violations, willful failure to deal fairly with the Parent
(including, without limitation, conflicts of interest), or improper personal
profit or benefit at the expense of Parent, and (c) in the case of the
Executive’s release of the Company Releasees, rights and claims for
indemnification pursuant to the Articles of Incorporation or Bylaws of
Parent.

           

           

           

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          3.  No
Claims.  Without limiting or expanding the release of claims
set forth in Section 2 hereof, each of Executive and Parent hereby represents
and warrants to the other that it does not know of any Claim against any of the
Company Releasees in the case of the representation and warranty by Executive,
or Executive in the case of the representation and warranty by Parent,
including, without limitation, any right to any compensation or any severance
payments or any indemnification by Parent.  Executive is not aware of
any events or circumstances that would serve as the basis for a Claim by
Executive against any of the Company Releasees and Parent is not aware of any
events or circumstances that would serve as the basis for a Claim by Parent
against Executive.  Each party hereto agrees that on and after the
date hereof such party will use best efforts to cooperate with each other party
and will not disparage such other party.

           

          4.  Confidentiality.  Executive
agrees that, for the period of two (2) years from and after the Closing Date, he
shall hold in strict confidence and will keep confidential all information
regarding Parent and its operations, and will not use or disclose any such
information to any person except: (a) with the prior written consent of Parent;
(b) to the extent that such disclosure is required by law (provided that the
disclosing party agrees to give to Parent prompt notice thereof so that Parent
may seek a protective order or other appropriate remedy in connection
therewith); or (c) to the extent that such information can be shown to be
generally available to the public other than as a result of disclosure by
Executive or his representatives.

           

          5.  Indemnity.  Executive
agrees to indemnify and hold the Company Releasees harmless from and against any
and all liability, loss, cost, expense and damage arising from or related to,
directly or indirectly, (a) any Claim herein released or any suit, claim,
demand, administrative proceeding, arbitration or other alternative dispute
resolution mechanism of any kind asserting any Claim herein released initiated
against any of the Company Releasees by or on behalf of Executive and (b) any
breach of any of the provisions of this Resignation and Release by Executive or
his heirs, legal representatives, successors or assigns.  Parent
agrees to indemnify and hold Executive harmless from and against any and all
liability, loss, cost, expense and damage arising from or related to, directly
or indirectly, (a) any Claim herein released or any suit, claim, demand,
administrative proceeding, arbitration or other alternative dispute resolution
mechanism of any kind asserting any Claim herein released initiated against
Executive by or on behalf of Parent and (b) any breach of any of the provisions
of this Resignation and Release by Parent or its successors or
assigns.

           

          6.  No Limitation of
Rights.  For the avoidance of doubt, no provision of this
Resignation and Release shall in any way impair, modify, alter or limit the
right of the Company (and the Company’s executive officers, directors,
shareholders, employees and agents, including any person who is an officer,
director, employee or agent of the Company prior to the Closing) to
indemnification pursuant to Section 8.3 of the Merger Agreement.

           

           

           

          2

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          7.  General.

           

          a.  Each of
Parent and Executive represents and warrants that such party is fully informed
and has full knowledge and understanding of the terms, conditions and effects of
this Release and Resignation, that such party has had the opportunity to consult
with and has consulted with such party’s legal counsel regarding this
Resignation and Release, that such party has delivered this Resignation and
Release voluntarily and such party’s own free will and that, other than those
contained herein, such party has not relied on any representation of the Parent,
or any of their representatives in the case of Executive, or Executive in the
case of Parent, in connection with the execution and delivery of this
Resignation and Release.

           

          b.  Each
party agrees that this Resignation and Release shall be binding upon such party
and his or its heirs, legal representatives, successors and
assigns.

           

          c.  If any
portion of this Resignation and Release is held invalid by the final judgment of
any court of competent jurisdiction, each party agrees that the remaining
provisions shall remain in full force and effect as if such invalid provision
had not been included in this Resignation and Release.

           

          IN
WITNESS WHEREOF, Executive has executed this Resignation and Release as of the
day and year first written.

           

          
            	 
      	
                     

                                                       
      

                    Gary
      A. Agron

                  

          

           

           

           

           

           

           

          3

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          
 

          RESIGNATION
AND RELEASE

           

          THIS
RESIGNATION AND RELEASE is made as of ________, 2010, by and between
Borivoje Vukadinovic (“Executive”) and
Retrospettiva, Inc., a California corporation (“Parent”). Capitalized
terms used herein but not otherwise defined shall have the meaning ascribed to
them in the Merger Agreement (as defined below).

           

          W I T N E S S E T
H

           

          WHEREAS,
pursuant to that certain Agreement and Plan of Merger, dated as of July 22, 2010
(“Merger
Agreement”), by and among NewGen BioPharma Corporation, a New Jersey
corporation (“Company”), Parent and
Retrospettiva Acquisitions, Inc., a New Jersey corporation and wholly-owned
subsidiary of Parent (the “Merger Subsidiary”),
Merger Subsidiary will be merged with and into Company; and

           

          WHEREAS,
Executive is an officer and director of Parent and the Merger Subsidiary and
this Resignation and Release is being made pursuant to Section 2.6 of the Merger
Agreement.

           

          NOW
THEREFORE, in consideration of the premises and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, and
as a material inducement to the Company to complete the transactions
contemplated by the Merger Agreement, the parties hereto, intending to be
legally bound, agrees as follows:

           

          1.  Resignation.  Effective
as of the Effective Time of the Merger, Executive hereby voluntarily resigns (i)
in all capacities with Parent, including, without limitation, as an officer and
a director of Parent and from all committees of the Board of Directors of Parent
on which Executive serves, if any; and (ii) in all capacities with Merger
Subsidiary, including, without limitation, as an officer and a director of
Merger Subsidiary and from all committees of the Board of Directors of Merger
Subsidiary on which Executive serves, if any.

           

          2.  Release.  Effective
as of the Effective Time, Executive, on behalf of himself and each of his heirs,
legal representatives, successors and assigns, hereby releases, forever
discharges and covenants not to sue each of the Company, the Merger Subsidiary,
Parent and, following the Merger, the Surviving Corporation, and their
respective shareholders, directors and officers (but only in such person’s
capacity as a shareholder, director or officer, and regardless of whether such
claim may be brought individually or derivatively) (individually, a “Company Releasee” and
collectively, “Company
Releasees”), and Parent hereby releases, forever discharges and covenants
not to sue Executive, in each case from and with respect to any and all claims,
actions, demands, proceedings, causes of action, orders, obligations, contracts,
agreements, debts, costs, attorneys’ fees, charges, controversies, promises,
expenses, compensation and all other liabilities whatsoever, whether known or
unknown, suspected or unsuspected, both at law and in equity, which such party
or any of such party’s heirs, legal representatives, successors and assigns, now
has, has ever had or may hereafter have against any of the Company Releasees or
Executive, as applicable, arising contemporaneously with or prior to the
Effective Time (“Claims”), except (a)
in the case of both parties hereto, rights and claims arising under the Merger
Agreement or any other agreement between the parties which is identified in
either the Merger Agreement or the schedules attached thereto, if any, (b) in
the case of Parent’s release of Executive, claims based on willful misconduct or
malfeasance, criminal violations, willful failure to deal fairly with the Parent
(including, without limitation, conflicts of interest), or improper personal
profit or benefit at the expense of Parent, and (c) in the case of the
Executive’s release of the Company Releasees, rights and claims for
indemnification pursuant to the Articles of Incorporation or Bylaws of
Parent.

           

           

           

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          3.  No
Claims.  Without limiting or expanding the release of claims
set forth in Section 2 hereof, each of Executive and Parent hereby represents
and warrants to the other that it does not know of any Claim against any of the
Company Releasees in the case of the representation and warranty by Executive,
or Executive in the case of the representation and warranty by Parent,
including, without limitation, any right to any compensation or any severance
payments or any indemnification by Parent.  Executive is not aware of
any events or circumstances that would serve as the basis for a Claim by
Executive against any of the Company Releasees and Parent is not aware of any
events or circumstances that would serve as the basis for a Claim by Parent
against Executive.  Each party hereto agrees that on and after the
date hereof such party will use best efforts to cooperate with each other party
and will not disparage such other party.

           

          4.  Confidentiality.  Executive
agrees that, for the period of two (2) years from and after the Closing Date, he
shall hold in strict confidence and will keep confidential all information
regarding Parent and its operations, and will not use or disclose any such
information to any person except: (a) with the prior written consent of Parent;
(b) to the extent that such disclosure is required by law (provided that the
disclosing party agrees to give to Parent prompt notice thereof so that Parent
may seek a protective order or other appropriate remedy in connection
therewith); or (c) to the extent that such information can be shown to be
generally available to the public other than as a result of disclosure by
Executive or his representatives.

           

          5.  Indemnity.  Executive
agrees to indemnify and hold the Company Releasees harmless from and against any
and all liability, loss, cost, expense and damage arising from or related to,
directly or indirectly, (a) any Claim herein released or any suit, claim,
demand, administrative proceeding, arbitration or other alternative dispute
resolution mechanism of any kind asserting any Claim herein released initiated
against any of the Company Releasees by or on behalf of Executive and (b) any
breach of any of the provisions of this Resignation and Release by Executive or
his heirs, legal representatives, successors or assigns.  Parent
agrees to indemnify and hold Executive harmless from and against any and all
liability, loss, cost, expense and damage arising from or related to, directly
or indirectly, (a) any Claim herein released or any suit, claim, demand,
administrative proceeding, arbitration or other alternative dispute resolution
mechanism of any kind asserting any Claim herein released initiated against
Executive by or on behalf of Parent and (b) any breach of any of the provisions
of this Resignation and Release by Parent or its successors or
assigns.

           

          6.  No Limitation of
Rights.  For the avoidance of doubt, no provision of this
Resignation and Release shall in any way impair, modify, alter or limit the
right of the Company (and the Company’s executive officers, directors,
shareholders, employees and agents, including any person who is an officer,
director, employee or agent of the Company prior to the Closing) to
indemnification pursuant to Section 8.3 of the Merger Agreement.

           

           

          2

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          7.  General.

           

          a.  Each of
Parent and Executive represents and warrants that such party is fully informed
and has full knowledge and understanding of the terms, conditions and effects of
this Release and Resignation, that such party has had the opportunity to consult
with and has consulted with such party’s legal counsel regarding this
Resignation and Release, that such party has delivered this Resignation and
Release voluntarily and such party’s own free will and that, other than those
contained herein, such party has not relied on any representation of the Parent,
or any of their representatives in the case of Executive, or Executive in the
case of Parent, in connection with the execution and delivery of this
Resignation and Release.

           

          b.  Each
party agrees that this Resignation and Release shall be binding upon such party
and his or its heirs, legal representatives, successors and
assigns.

           

          c.  If any
portion of this Resignation and Release is held invalid by the final judgment of
any court of competent jurisdiction, each party agrees that the remaining
provisions shall remain in full force and effect as if such invalid provision
had not been included in this Resignation and Release.

           

          IN
WITNESS WHEREOF, Executive has executed this Resignation and Release as of the
day and year first written.

           

          
            	 
      	
                     

                                                            
      

                    Borivoje
      Vukadinovic

                  

          

          

        

         

         

         

        3

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

    

     

     

     

     

     

     

    
      Exhibit
D

       

      Officer’s
Certificate of Parent

       

      [See attached]

       

       

       

       

       

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      OFFICER’S
CERTIFICATE

       

      OF

       

      RETROSPETTIVA,
INC.

       

      This
Certificate is delivered pursuant to Section 3.1(e) of that certain Agreement
and Plan of Merger (the “Merger Agreement”)
dated as of as of July 22, 2010, by and among NewGen BioPharma Corporation,
a New Jersey corporation (the “Company”),
Retrospettiva, Inc., a California corporation (“Parent”), and
Retrospettiva Acquisitions, Inc., a New Jersey corporation and wholly-owned
subsidiary of Parent (the “Merger
Subsidiary”).  Capitalized terms used herein but not otherwise
defined shall have the meaning ascribed to them in the Merger
Agreement.

       

      The
undersigned, in his capacity as an officer of Parent, and not individually,
hereby certifies as follows:

       

      1.  I am the
duly elected, authorized and acting Chief Executive Officer of
Parent.

       

      2.  Each of
the representations and warranties set forth in Article VI of the Merger
Agreement is true and correct in all respects, at and as of the date of the
Merger Agreement and as of the Closing Date as though then made and as though
the Closing Date were substituted for the date of the Merger Agreement
throughout such representations and warranties (except that those
representations and warranties that are made as of a specific date need only be
true and correct in all respects as of such date), except where the failure of
any such representations and warranties to be true and correct has not had,
individually or in the aggregate, a Parent Material Adverse Effect.

       

      3.  Each of
Parent and Merger Subsidiary has performed in all material respects all the
covenants and agreements required to be performed by it under the Merger
Agreement at or prior to the date hereof.

       

      4.  Attached
hereto as Schedule
1 is a true and correct copy of resolutions duly adopted by written
consents of each of the Board of Directors of Parent and Merger Subsidiary, each
dated as of July __, 2010, which resolutions authorize each of Parent and Merger
Subsidiary to execute, deliver and perform its obligations under the Merger
Agreement and to consummate the Merger and other transactions contemplated
thereby, and such resolutions have not in any way been rescinded or amended,
have been in full force and effect at all times since their adoption up to and
including the date hereof and are in full force and effect as of the date
hereof.

       

      5.  Attached
hereto as Schedule
2 is a true and correct copy of resolutions duly adopted by written
consent of Parent as the sole stockholder of Merger Subsidiary, dated July ___,
2010, which resolutions authorize Merger Subsidiary to execute, deliver and
perform its obligations under the Merger Agreement and to consummate the Merger
and other transactions contemplated thereby, and such resolutions have not in
any way been rescinded or amended, have been in full force and effect at all
times since their adoption up to and including the date hereof and are in full
force and effect as of the date hereof.

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      6. The
following are the names, titles and true signatures of the duly elected and
acting officers of Parent and Merger Subsidiary authorized by the attached
resolutions to execute and deliver the Merger Agreement and all other agreements
and documents required by the Merger Agreement referred to in the attached
resolutions:

       

      For Parent:

       

      
        	
                Name

              	
                Title

              	
                Signature

                 

              
	
                Borivoje
      Vukadinovic

              	
                Chief
      Executive Officer and Secretary

              	 
      
	 
      	 
      	 
      
	
                For Merger
      Subsidiary:

                 

              	 
      	 
      
	
                Name

              	
                Title

              	
                Signature

                 

              
	
                Borivoje
      Vukadinovic

              	
                Chief
      Executive Officer and Secretary

              	 
      
	 
      	 
      	 
      

      

      

      IN WITNESS WHEREOF, the
undersigned has executed this Certificate as of the ___ day of ______
2010.

       

      
        	 
      	
                PARENT:

                 

                Retrospettiva,
      Inc.

                 

                 

                By:                                                                          
          

                Name:             Borivoje
      Vukadinovic

                Title:             Chief
      Executive Officer

                 

                 

              

      

       

       

       

       

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

       

       

      Schedule
1

       

      Parent
and Merger Subsidiary Board of Directors Consent

       

      [See attached]

       

       

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      RESOLUTIONS
ADOPTED BY

      THE
UNANIMOUS WRITTEN CONSENT

      OF
THE BOARD OF DIRECTORS

      OF

      RETROSPETTIVA,
INC.

      

      July __,
2010

      The
undersigned, constituting all of the members of the Board of Directors (the
“Board”) of
Retrospettiva, Inc., a California corporation (“Corporation”), in
accordance with the authority contained in this Corporation’s Bylaws and
pursuant to the California Corporations Code, do hereby take the following
actions, adopt the following resolutions, and transact the following business
via written consent (this “Written Consent”), to
be effective as of the date first set above, and such actions and resolutions to
have the same force and effect as though duly taken and adopted at a meeting of
the Board, duly called and held:

       

      Agreement and Plan of
Merger

       

      WHEREAS,
the Board has determined that it is the best interests of this Corporation and
its stockholders for this Corporation to effect a reverse merger between a
wholly owned subsidiary of this corporation and another entity (the “Merger”);

       

      WHEREAS,
in connection with the Merger, the Board has reviewed and considered (i) the
Letter of Intent with respect to the Merger attached hereto as Exhibit A (the “LOI”); (ii) the form
of Agreement and Plan of Merger by and among NewGen BioPharma Corporation, a New
Jersey corporation (“NewGen”), this
Corporation and Retrospettiva Acquisitions, Inc., a New Jersey corporation and
wholly owned subsidiary of this Corporation (the “Merger Subsidiary”),
attached hereto as Exhibit B (the “Merger Agreement”);
(iii) the Certificate Of Merger attached hereto as Exhibit C (the “Merger Certificate”)
to be filed with the New Jersey Division of Revenue in connection with the
Merger; (iv) the form of lock-up agreement attached hereto as Exhibit D (the “Lock-Up Agreement”);
and (v) the form of resignation and release attached hereto as  Exhibit E (the “Resignation and
Release”);

       

      WHEREAS,
pursuant to the Merger Agreement, Merger Subsidiary will merge with and into
NewGen, with NewGen being the surviving corporation in the Merger (the “Surviving
Corporation”) and becoming a wholly owned subsidiary of this
Corporation;

       

      WHEREAS,
upon effectiveness of the Merger, all of the properties, rights, privileges,
powers and franchises of Merger Subsidiary will vest in the Surviving
Corporation, and all of the debts, liabilities, duties and obligations of Merger
Subsidiary will become the debts, liabilities, duties and obligations of the
Surviving Corporation;

       

      WHEREAS,
upon effectiveness of the Merger, each outstanding share of NewGen’s common
stock, no par value, will be converted into the right to receive 50,000,000
shares of this Corporation’s common stock, no par value per share (“Common
Stock”);

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      WHEREAS,
upon effectiveness of the Merger, each share of the common stock, no par value
per share, of Merger Subsidiary then outstanding shall be converted into one
share of the validly issued, fully paid and non-assessable authorized common
stock of the Surviving Corporation; and

       

      WHEREAS,
the Board deems it advisable and in the best interests of this Corporation and
its stockholders for this Corporation to effect the Merger, and the transactions
contemplated in the Merger Agreement.

       

      NOW,
THEREFORE, BE IT RESOLVED, that the Merger, on the terms set forth in the Merger
Agreement, be, and it hereby is, authorized and approved; and it is

       

      RESOLVED
FURTHER, that the LOI be, and it hereby is, authorized, ratified and approved in
the form attached hereto as Exhibit A; and it
is

       

      RESOLVED
FURTHER, that the Merger Agreement be, and it hereby is, authorized and approved
in substantially the form attached hereto as Exhibit B; and it
is

       

      RESOLVED
FURTHER, that the Merger Certificate be, and it hereby is, authorized and
approved in substantially the form attached hereto as Exhibit C; and it
is

       

      RESOLVED
FURTHER, that the Lock-Up Agreement be, and it hereby is, authorized and
approved in substantially the form attached hereto as Exhibit D; and it
is

       

      RESOLVED
FURTHER, that the Resignation and Release be, and it hereby is, authorized and
approved in substantially the form attached hereto as Exhibit E; and it
is

       

      RESOLVED
FURTHER, that the officers of this Corporation be, and each of them alone hereby
is, authorized and directed to execute and deliver the LOI and the Merger
Agreement, with such modifications to the Merger Agreement, the Lock-Up
Agreement and the Resignation and Release as such officers shall approve, such
approval to be conclusively evidenced by such officer’s execution thereof; and
it is

       

      RESOLVED,
FURTHER, that the officers of this Corporation be, and each of them alone hereby
is, authorized and directed to execute, deliver or file, on behalf of this
Corporation and in its name the Merger Certificate with such modifications, and
any other documents, instruments and agreement determined by such officers to be
necessary or proper for the completion of the Merger and the other actions
contemplated by the Merger Agreement; and it is

       

      RESOLVED,
FURTHER, that the officers of this Corporation be, and each of them alone hereby
is, authorized and directed to perform, on behalf of this Corporation and in its
name, all acts reasonably required by the Merger Agreement or the Merger
Certificate; and it is

       

      RESOLVED,
FURTHER, that the officers of this Corporation be, and each of them alone hereby
is, authorized and directed to execute, deliver and file, on behalf of this
Corporation and in its name, any instrument, certificate, agreement or document
required to be executed, delivered or filed with the New Jersey Division of
Revenue, or any other governmental agency in connection with the Merger, in each
case in such form as such officers may approve, which approval shall be
conclusively established by the execution, delivery or filing of such agreement
by such officer or officers; and it is

       

       

      2

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      RESOLVED
FURTHER, that this Corporation is authorized to issue 50,000,000 shares of its
Common Stock (collectively, the “Merger
Consideration”) to the stockholders of NewGen, subject to the provisions
of, and as contemplated in, the Merger Agreement; and it is

       

      RESOLVED
FURTHER, that this Corporation is hereby authorized to reserve for issuance up
to 50,000,000 shares of its Common Stock, comprising the Merger Consideration,
to be issued in connection with the Merger, subject to the provisions of, and as
contemplated in the Merger Agreement, upon closing of the transactions
contemplated in the Merger Agreement; and it is

       

      RESOLVED
FURTHER, that the Merger Consideration to be issued as contemplated in the
Merger Agreement, when issued in accordance therewith, will be duly authorized,
validly issued, fully paid and non-assessable shares of this Corporation’s
Common Stock; and it is

       

      RESOLVED,
FURTHER, that the officers of this Corporation be, and each of them alone hereby
is, authorized and directed to issue the required number of shares of this
Corporation’s Common Stock comprising the Merger Agreement, and to deliver
certificates therefor; and it is

       

      RESOLVED
FURTHER, that the officers of this Corporation be, and each of them alone hereby
is, authorized and directed to determine the states in which appropriate action
shall be taken to qualify all or such part of the Merger Consideration issuable
under the Merger Agreement, or any other securities which may be offered or
sold, as such officers may deem advisable; that the officers of this Corporation
be, and each of them hereby is, authorized to perform on behalf of this
Corporation any and all such acts as they may deem necessary or advisable in
order to comply with the applicable laws of any such states, and in connection
therewith to execute and file all requisite papers and documents, including, but
not limited to, applications, reports, irrevocable consents and appointments of
attorneys for service of process; and the execution by such officers of any such
paper or document or the doing by them of any act in connection with the
foregoing matters shall conclusively establish their authority therefor from
this Corporation and the approval and ratification by this Corporation of the
papers and documents so executed and the action so taken; and it is

       

      General Enabling
Resolution

       

      RESOLVED,
that the officers of this Corporation be, and each of them acting alone hereby
is, authorized and directed, by and on behalf of this Corporation and in its
name, to take all such other actions, to cause to be prepared and filed all such
other documents, to make all expenditures and to execute all instruments deemed
by such officer(s) to be necessary or appropriate in carrying out the purposes
of all of the foregoing resolutions.

       

      Ratifying
Resolution

       

      RESOLVED
FURTHER, that all actions by any and all officers and agents of this Corporation
taken or performed prior to the date hereof in respect of the matters referred
to in the foregoing resolutions be and such actions here by are, approved,
ratified and confirmed in all respects.

       

       

      3

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Stockholder
Approval

       

      RESOLVED
FURTHER, this Corporation, as the sole stockholder of Merger Subsidiary and in
accordance with applicable provisions of the New Jersey Business Corporation
Act, hereby authorizes and approves the Merger, the Merger Agreement and the
transactions contemplated thereby; and it is

       

      RESOLVED,
that the officers of Merger Subsidiary be, and each of them acting alone hereby
is, authorized and directed, by and on behalf of Merger Subsidiary and in its
name, to take all such other actions, to cause to be prepared and filed all such
other documents, to make all expenditures and to execute all instruments deemed
by such officer(s) to be necessary or appropriate in carrying out the purposes
of all of the foregoing resolutions; and it is

       

      RESOLVED
FURTHER, that all actions by any and all officers and agents of Merger
Subsidiary taken or performed prior to the date hereof in respect of the matters
referred to in the foregoing resolutions be and such actions here by are,
approved, ratified and confirmed in all respects.

       

      

       

      

       

      

       

      

       

      [Signature page
follows]

       

       

       

      4

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      IN
WITNESS WHEREOF, the undersigned constituting the sole member of the Board has
executed this Unanimous Written Consent as of the date first set forth
above.

       

      

       

      
        	 
      	
                DIRECTORS:

              
	 
      	 
      
	 
      	 
      
	 
      	
                Borivoje
      Vukadinovic

              
	 
      	 
      
	 
      	 
      
	 
      	
                Gary
      A. Agron

              
	 
      	 
      
	 
      	 
      
	 
      	
                Jovan
      Keeman

              
	 
      	 
      

      

      

       

      

       

       

       

      5

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      RESOLUTIONS
ADOPTED BY

      THE
UNANIMOUS WRITTEN CONSENT

      OF
THE BOARD OF DIRECTORS

      OF

      RETROSPETTIVA
ACQUISITIONS, INC.

      

      July __,
2010

       

      The
undersigned, constituting the sole member of the Board of Directors (the “Board”) of
Retrospettiva Acquisitions, Inc., a New Jersey corporation (“Corporation”),
pursuant to the New Jersey Business Corporation Act, does hereby take the
following actions, adopts the following resolutions, and transacts the following
business via written consent (this “Written Consent”), to
be effective as of the date first set above, and such actions and resolutions to
have the same force and effect as though duly taken and adopted at a meeting of
the Board, duly called and held:

       

      Appointment of
Officers

       

      NOW,
THEREFORE, BE IT RESOLVED, that Borivoje Vukadinovic is hereby appointed as the
President, Treasurer/Chief Financial Officer and Secretary of the
Corporation.

       

      Issuance of
Stock

       

      WHEREAS,
the Certificate of Incorporation of the Corporation authorizes the issuance of
1,000 shares of common stock, no par value per share (“Common
Stock”);

       

      WHEREAS,
none of the shares of Common Stock has been offered, issued or sold to any
person;

       

      WHEREAS,
it has been proposed that 100 shares of Common Stock be issued and sold to
Retrospettiva, Inc., a California corporation and parent of this Corporation
(“Parent”); and

       

      WHEREAS,
all of such shares proposed to be issued shall be sold for cash and issued for
the same price per share;

       

      NOW,
THEREFORE, BE IT RESOLVED, that the Corporation shall issue and sell 100 shares
of Common Stock to Parent for a purchase price of $0.01 per share in
cash;

       

      RESOLVED
FURTHER, that Parent shall acquire such shares for investment and not with a
view to distribution; and

       

      RESOLVED
FURTHER, that said shares of Common Stock, when so sold and delivered, and when
the Corporation has received the purchase price therefor, shall be duly and
validly issued, fully paid and non-assessable, and that the consideration
received shall be credited to the appropriate capital accounts of the
Corporation.

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Agreement and Plan of
Merger

       

      WHEREAS,
the Board has determined that it is the best interests of this Corporation and
its stockholder for this Corporation to merge with and into another entity (the
“Merger”)
pursuant to which such entity will become a wholly owned subsidiary of
Parent;

       

      WHEREAS,
in connection with the Merger, the Board has reviewed and considered (i) the
Letter of Intent with respect to the Merger attached hereto as Exhibit A (the “LOI”); (ii) the form
of Agreement and Plan of Merger by and among NewGen BioPharma Corporation, a New
Jersey corporation (“NewGen”), this
Corporation and Parent (the “Merger Subsidiary”),
attached hereto as Exhibit B (the “Merger Agreement”);
(iii) the Certificate Of Merger attached hereto as Exhibit C (the “Merger Certificate”)
to be filed with the New Jersey Division of Revenue in connection with the
Merger; (iv) the form of lock-up agreement attached hereto as Exhibit D (the “Lock-Up Agreement”);
and (v) the form of resignation and release attached hereto as  Exhibit E (the “Resignation and
Release”);

       

      WHEREAS,
pursuant to the Merger Agreement, this Corporation will merge with and into
NewGen, with NewGen being the surviving corporation in the Merger (the “Surviving
Corporation”) and becoming a wholly owned subsidiary of
Parent;

       

      WHEREAS,
upon effectiveness of the Merger, all of the properties, rights, privileges,
powers and franchises of this Corporation will vest in the Surviving
Corporation, and all of the debts, liabilities, duties and obligations of this
Corporation will become the debts, liabilities, duties and obligations of the
Surviving Corporation;

       

      WHEREAS,
upon effectiveness of the Merger, each share of the common stock, $0.00001 par
value per share, of this Corporation then outstanding shall be converted into
one share of the validly issued, fully paid and non-assessable authorized common
stock of the Surviving Corporation; and

       

      WHEREAS,
the Board deems it advisable and in the best interests of this Corporation and
its stockholder for this Corporation to effect the Merger, and the transactions
contemplated in the Merger Agreement.

       

      NOW,
THEREFORE, BE IT RESOLVED, that the Merger, on the terms set forth in the Merger
Agreement, be, and it hereby is, authorized and approved; and it is

       

      RESOLVED
FURTHER, that the LOI be, and it hereby is, authorized, ratified and approved in
the form attached hereto as Exhibit A; and it
is

       

      RESOLVED
FURTHER, that the Merger Agreement be, and it hereby is, authorized and approved
in substantially the form attached hereto as Exhibit B; and it
is

       

      RESOLVED
FURTHER, that the Merger Certificate be, and it hereby is, authorized and
approved in substantially the form attached hereto as Exhibit C; and it
is

       

      RESOLVED
FURTHER, that the Lock-Up Agreement be, and it hereby is, authorized and
approved in substantially the form attached hereto as Exhibit D; and it
is

       

       

      2

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      RESOLVED
FURTHER, that the Resignation and Release be, and it hereby is, authorized and
approved in substantially the form attached hereto as Exhibit E; and it
is

       

       RESOLVED
FURTHER, that the officers of this Corporation be, and each of them alone hereby
is, authorized and directed to execute and deliver the LOI and the Merger
Agreement, with such modifications to the Merger Agreement, the Lock-Up
Agreement and the Resignation and Release as such officers shall approve, such
approval to be conclusively evidenced by such officer’s execution thereof; and
it is

       

      RESOLVED,
FURTHER, that the officers of this Corporation be, and each of them alone hereby
is, authorized and directed to execute, deliver or file, on behalf of this
Corporation and in its name the Merger Certificate with such modifications, and
any other documents, instruments and agreement determined by such officers to be
necessary or proper for the completion of the Merger and the other actions
contemplated by the Merger Agreement; and it is

       

      RESOLVED,
FURTHER, that the officers of this Corporation be, and each of them alone hereby
is, authorized and directed to perform, on behalf of this Corporation and in its
name, all acts reasonably required by the Merger Agreement or the Merger
Certificate; and it is

       

      RESOLVED,
FURTHER, that the officers of this Corporation be, and each of them alone hereby
is, authorized and directed to execute, deliver and file, on behalf of this
Corporation and in its name, any instrument, certificate, agreement or document
required to be executed, delivered or filed with the New Jersey Division of
Revenue, or any other governmental agency in connection with the Merger, in each
case in such form as such officer or officers may approve, which approval shall
be conclusively established by the execution, delivery or filing of such
agreement by such officer or officers; and it is

       

      RESOLVED,
FURTHER, that the terms of the Merger, the Merger Agreement and the transactions
contemplated thereby be submitted to the stockholder of this Corporation for its
consideration and approval, and the Board hereby recommends that the stockholder
of this Corporation approve the terms of the terms of the Merger, the Merger
Agreement and the transactions contemplated thereby.

       

      General Enabling
Resolution

       

      RESOLVED,
that the officers of this Corporation be, and each of them acting alone hereby
is, authorized and directed, by and on behalf of this Corporation and in its
name, to take all such other actions, to cause to be prepared and filed all such
other documents, to make all expenditures and to execute all instruments deemed
by such officer(s) to be necessary or appropriate in carrying out the purposes
of all of the foregoing resolutions.

       

      Ratifying
Resolution

       

      RESOLVED
FURTHER, that all actions by any and all officers and agents of this Corporation
taken or performed prior to the date hereof in respect of the matters referred
to in the foregoing resolutions be and such actions here by are, approved,
ratified and confirmed in all respects.

       

       

      3

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
WITNESS WHEREOF, the undersigned constituting the sole member of the Board has
executed this Unanimous Written Consent as of the date first set forth
above.

       

      

       

      
        	 
      	
                DIRECTOR:

              
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
                Borivoje
      Vukadinovic

              

      

      

       

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

       

      Schedule
2

       

      Parent
and Merger Subsidiary Board of Directors Consent

       

      [See attached]

       

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      RESOLUTIONS
ADOPTED BY

      THE
UNANIMOUS WRITTEN CONSENT

      OF
THE BOARD OF DIRECTORS

      OF

      RETROSPETTIVA,
INC.

      

      July __,
2010

      The
undersigned, constituting all of the members of the Board of Directors (the
“Board”) of
Retrospettiva, Inc., a California corporation (“Corporation”), in
accordance with the authority contained in this Corporation’s Bylaws and
pursuant to the California Corporations Code, do hereby take the following
actions, adopt the following resolutions, and transact the following business
via written consent (this “Written Consent”), to
be effective as of the date first set above, and such actions and resolutions to
have the same force and effect as though duly taken and adopted at a meeting of
the Board, duly called and held:

       

      Agreement and Plan of
Merger

       

      WHEREAS,
the Board has determined that it is the best interests of this Corporation and
its stockholders for this Corporation to effect a reverse merger between a
wholly owned subsidiary of this corporation and another entity (the “Merger”);

       

      WHEREAS,
in connection with the Merger, the Board has reviewed and considered (i) the
Letter of Intent with respect to the Merger attached hereto as Exhibit A (the “LOI”); (ii) the form
of Agreement and Plan of Merger by and among NewGen BioPharma Corporation, a New
Jersey corporation (“NewGen”), this
Corporation and Retrospettiva Acquisitions, Inc., a New Jersey corporation and
wholly owned subsidiary of this Corporation (the “Merger Subsidiary”),
attached hereto as Exhibit B (the “Merger Agreement”);
(iii) the Certificate Of Merger attached hereto as Exhibit C (the “Merger Certificate”)
to be filed with the New Jersey Division of Revenue in connection with the
Merger; (iv) the form of lock-up agreement attached hereto as Exhibit D (the “Lock-Up Agreement”);
and (v) the form of resignation and release attached hereto as  Exhibit E (the “Resignation and
Release”);

       

      WHEREAS,
pursuant to the Merger Agreement, Merger Subsidiary will merge with and into
NewGen, with NewGen being the surviving corporation in the Merger (the “Surviving
Corporation”) and becoming a wholly owned subsidiary of this
Corporation;

       

      WHEREAS,
upon effectiveness of the Merger, all of the properties, rights, privileges,
powers and franchises of Merger Subsidiary will vest in the Surviving
Corporation, and all of the debts, liabilities, duties and obligations of Merger
Subsidiary will become the debts, liabilities, duties and obligations of the
Surviving Corporation;

       

      WHEREAS,
upon effectiveness of the Merger, each outstanding share of NewGen’s common
stock, no par value, will be converted into the right to receive 50,000,000
shares of this Corporation’s common stock, no par value per share (“Common
Stock”);

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      WHEREAS,
upon effectiveness of the Merger, each share of the common stock, no par value
per share, of Merger Subsidiary then outstanding shall be converted into one
share of the validly issued, fully paid and non-assessable authorized common
stock of the Surviving Corporation; and

       

      WHEREAS,
the Board deems it advisable and in the best interests of this Corporation and
its stockholders for this Corporation to effect the Merger, and the transactions
contemplated in the Merger Agreement.

       

      NOW,
THEREFORE, BE IT RESOLVED, that the Merger, on the terms set forth in the Merger
Agreement, be, and it hereby is, authorized and approved; and it is

       

      RESOLVED
FURTHER, that the LOI be, and it hereby is, authorized, ratified and approved in
the form attached hereto as Exhibit A; and it
is

       

      RESOLVED
FURTHER, that the Merger Agreement be, and it hereby is, authorized and approved
in substantially the form attached hereto as Exhibit B; and it
is

       

      RESOLVED
FURTHER, that the Merger Certificate be, and it hereby is, authorized and
approved in substantially the form attached hereto as Exhibit C; and it
is

       

      RESOLVED
FURTHER, that the Lock-Up Agreement be, and it hereby is, authorized and
approved in substantially the form attached hereto as Exhibit D; and it
is

       

      RESOLVED
FURTHER, that the Resignation and Release be, and it hereby is, authorized and
approved in substantially the form attached hereto as Exhibit E; and it
is

       

      RESOLVED
FURTHER, that the officers of this Corporation be, and each of them alone hereby
is, authorized and directed to execute and deliver the LOI and the Merger
Agreement, with such modifications to the Merger Agreement, the Lock-Up
Agreement and the Resignation and Release as such officers shall approve, such
approval to be conclusively evidenced by such officer’s execution thereof; and
it is

       

      RESOLVED,
FURTHER, that the officers of this Corporation be, and each of them alone hereby
is, authorized and directed to execute, deliver or file, on behalf of this
Corporation and in its name the Merger Certificate with such modifications, and
any other documents, instruments and agreement determined by such officers to be
necessary or proper for the completion of the Merger and the other actions
contemplated by the Merger Agreement; and it is

       

      RESOLVED,
FURTHER, that the officers of this Corporation be, and each of them alone hereby
is, authorized and directed to perform, on behalf of this Corporation and in its
name, all acts reasonably required by the Merger Agreement or the Merger
Certificate; and it is

       

      RESOLVED,
FURTHER, that the officers of this Corporation be, and each of them alone hereby
is, authorized and directed to execute, deliver and file, on behalf of this
Corporation and in its name, any instrument, certificate, agreement or document
required to be executed, delivered or filed with the New Jersey Division of
Revenue, or any other governmental agency in connection with the Merger, in each
case in such form as such officers may approve, which approval shall be
conclusively established by the execution, delivery or filing of such agreement
by such officer or officers; and it is

       

       

      2

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      RESOLVED
FURTHER, that this Corporation is authorized to issue 50,000,000 shares of its
Common Stock (collectively, the “Merger
Consideration”) to the stockholders of NewGen, subject to the provisions
of, and as contemplated in, the Merger Agreement; and it is

       

      RESOLVED
FURTHER, that this Corporation is hereby authorized to reserve for issuance up
to 50,000,000 shares of its Common Stock, comprising the Merger Consideration,
to be issued in connection with the Merger, subject to the provisions of, and as
contemplated in the Merger Agreement, upon closing of the transactions
contemplated in the Merger Agreement; and it is

       

      RESOLVED
FURTHER, that the Merger Consideration to be issued as contemplated in the
Merger Agreement, when issued in accordance therewith, will be duly authorized,
validly issued, fully paid and non-assessable shares of this Corporation’s
Common Stock; and it is

       

      RESOLVED,
FURTHER, that the officers of this Corporation be, and each of them alone hereby
is, authorized and directed to issue the required number of shares of this
Corporation’s Common Stock comprising the Merger Agreement, and to deliver
certificates therefor; and it is

       

      RESOLVED
FURTHER, that the officers of this Corporation be, and each of them alone hereby
is, authorized and directed to determine the states in which appropriate action
shall be taken to qualify all or such part of the Merger Consideration issuable
under the Merger Agreement, or any other securities which may be offered or
sold, as such officers may deem advisable; that the officers of this Corporation
be, and each of them hereby is, authorized to perform on behalf of this
Corporation any and all such acts as they may deem necessary or advisable in
order to comply with the applicable laws of any such states, and in connection
therewith to execute and file all requisite papers and documents, including, but
not limited to, applications, reports, irrevocable consents and appointments of
attorneys for service of process; and the execution by such officers of any such
paper or document or the doing by them of any act in connection with the
foregoing matters shall conclusively establish their authority therefor from
this Corporation and the approval and ratification by this Corporation of the
papers and documents so executed and the action so taken; and it is

       

      General Enabling
Resolution

       

      RESOLVED,
that the officers of this Corporation be, and each of them acting alone hereby
is, authorized and directed, by and on behalf of this Corporation and in its
name, to take all such other actions, to cause to be prepared and filed all such
other documents, to make all expenditures and to execute all instruments deemed
by such officer(s) to be necessary or appropriate in carrying out the purposes
of all of the foregoing resolutions.

       

      Ratifying
Resolution

       

      RESOLVED
FURTHER, that all actions by any and all officers and agents of this Corporation
taken or performed prior to the date hereof in respect of the matters referred
to in the foregoing resolutions be and such actions here by are, approved,
ratified and confirmed in all respects.

       

       

      3

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Stockholder
Approval

       

      RESOLVED
FURTHER, this Corporation, as the sole stockholder of Merger Subsidiary and in
accordance with applicable provisions of the New Jersey Business Corporation
Act, hereby authorizes and approves the Merger, the Merger Agreement and the
transactions contemplated thereby; and it is

       

      RESOLVED,
that the officers of Merger Subsidiary be, and each of them acting alone hereby
is, authorized and directed, by and on behalf of Merger Subsidiary and in its
name, to take all such other actions, to cause to be prepared and filed all such
other documents, to make all expenditures and to execute all instruments deemed
by such officer(s) to be necessary or appropriate in carrying out the purposes
of all of the foregoing resolutions; and it is

       

      RESOLVED
FURTHER, that all actions by any and all officers and agents of Merger
Subsidiary taken or performed prior to the date hereof in respect of the matters
referred to in the foregoing resolutions be and such actions here by are,
approved, ratified and confirmed in all respects.

       

      

       

      

       

      

       

      

       

      [Signature page
follows]

       

       

       

       

      4

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      IN
WITNESS WHEREOF, the undersigned constituting the sole member of the Board has
executed this Unanimous Written Consent as of the date first set forth
above.

       

      

       

      
        	 
      	
                DIRECTORS:

              
	 
      	 
      
	 
      	 
      
	 
      	
                Borivoje
      Vukadinovic

              
	 
      	 
      
	 
      	 
      
	 
      	
                Gary
      A. Agron

              
	 
      	 
      
	 
      	 
      
	 
      	
                Jovan
      Keeman

              
	 
      	 
      

      

      

       

      

       

       

       

      5

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

     

     

     

     

    
      Exhibit
E

       

      Officer’s
Certificate of the Company

       

      [See attached]

       

       

       

       

       

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      OFFICER’S
CERTIFICATE

       

      OF

       

      NEWGEN
BIOPHARMA CORPORATION

       

      This
Certificate is delivered pursuant to Section 3.2(e) of that certain Agreement
and Plan of Merger (the “Merger Agreement”)
dated as of as of July 22, 2010, by and among NewGen BioPharma Corporation,
a New Jersey corporation (the “Company”),
Retrospettiva, Inc., a California corporation (“Parent”), and
Retrospettiva Acquisitions, Inc., a New Jersey corporation and wholly-owned
subsidiary of Parent (the “Merger
Subsidiary”).  Capitalized terms used herein but not otherwise
defined shall have the meaning ascribed to them in the Merger
Agreement.

       

      The
undersigned, in his capacity as an officer of the Company, and not individually,
hereby certifies as follows:

       

      1.  I am the
duly elected, authorized and acting Chief Executive Officer of the
Company.

       

      2.  Each of
the representations and warranties set forth in Article V of the Merger
Agreement is true and correct in all respects, at and as of the date of the
Merger Agreement and as of the Closing Date as though then made and as though
the Closing Date were substituted for the date of the Merger Agreement
throughout such representations and warranties (except that those
representations and warranties that are made as of a specific date need only be
true and correct in all respects as of such date), except where the failure of
any such representations and warranties to be true and correct has not had,
individually or in the aggregate, a Company Material Adverse
Effect.

       

      3.  The
Company has performed in all material respects all the covenants and agreements
required to be performed by it under the Merger Agreement at or prior to the
date hereof.

       

      4.  Attached
hereto as Schedule 1 is a true and correct copy of the resolutions duly adopted
by written consent of the Board of Directors of the Company, dated as of July
__, 2010, which resolutions authorize the Company to execute, deliver and
perform its obligations under the Merger Agreement and to consummate the Merger
and other transactions contemplated thereby, and such resolutions have not in
any way been rescinded or amended, have been in full force and effect at all
times since their adoption up to and including the date hereof and are in full
force and effect as of the date hereof.

       

      5.  Attached
hereto as Schedule 2 is a true and correct copy of resolutions duly adopted by
written consent of the Company’s stockholders, dated July __, 2010, which
resolutions authorize the Company to execute, deliver and perform its
obligations under the Merger Agreement and to consummate the Merger and other
transactions contemplated thereby, and such resolutions have not in any way been
rescinded or amended, have been in full force and effect at all times since
their adoption up to and including the date hereof and are in full force and
effect as of the date hereof.

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
WITNESS WHEREOF, the undersigned has executed this Certificate as of the ___ day
of _______ 2010.

       

      
        	 
      	
                COMPANY:

                 

                NewGen
      BioPharma Corporation

                 

                 

                By:                                                             
                      

                Name:             Dr.
      Navdeep Jaikaria

                Title:             Chief
      Executive Officer

                 

                 

              

      

       

       

       

       

       

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

       

      Schedule
1

       

      Company
Board of Directors Consent

       

      [See attached]

       

       

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      RESOLUTIONS
ADOPTED BY

      THE
UNANIMOUS WRITTEN CONSENT

      OF
THE BOARD OF DIRECTORS

      OF

      NEWGEN
BIOPHARMA CORPORATION

      

      July __,
2010

       

      The
undersigned, constituting the sole member of the Board of Directors (the “Board”) of NewGen
BioPharma Corporation, a New Jersey corporation (“Corporation”), in
accordance with the authority contained in this Corporation’s Bylaws and
pursuant to the New Jersey Business Corporation Act, does hereby take the
following actions, adopts the following resolutions, and transacts the following
business via written consent (this “Written Consent”), to
be effective as of the date first set above, and such actions and resolutions to
have the same force and effect as though duly taken and adopted at a meeting of
the Board, duly called and held:

       

      Amendment to Certificate of
Incorporation

       

      WHEREAS,
in connection with the Merger (as defined below), the Board deems it advisable
and in the best interests of this Corporation and its stockholders to amend the
Certificate of Incorporation of this Corporation (the “Certificate of
Incorporation”) to effect a name change; and

       

      WHEREAS,
the Board desires to amend the Certificate of Incorporation as set forth on
Exhibit A
attached hereto (the “Amendment”).

       

      NOW,
THEREFORE, BE IT RESOLVED, that the Board does hereby approve and adopt the
Amendment as provided in Exhibit A attached
hereto, and authorizes and directs the officers of this Corporation, and each of
them acting alone hereby is, authorized and directed, by and on behalf of this
Corporation and in its name, to take all action and execute all such documents
as may be necessary or appropriate in effecting the Amendment, including, filing
the Amendment with the New Jersey Division of Revenue, which such filing shall
be made subsequent to consummation of the Merger (as defined
below).

       

      Agreement and Plan of
Merger

       

      WHEREAS,
the Board has determined that it is the best interests of this Corporation and
its stockholders for this Corporation to effect a reverse merger with and into a
company (or its wholly owned subsidiary) with a class of securities registered
under Section 12 of the United States Securities Exchange Act of 1934, as
amended, and listed or quoted for trading on any national securities exchange or
national quotation system (the “Merger”);

       

      WHEREAS,
in connection with the Merger, the Board has reviewed and considered (i) the
Letter of Intent with respect to the Merger attached hereto as Exhibit B (the “LOI”); (ii) the form
of Agreement and Plan of Merger by and among this Corporation, Retrospettiva,
Inc., a California corporation (“Parent”), and
Retrospettiva Acquisitions, Inc., a New Jersey corporation and wholly owned
subsidiary of Parent (the “Merger Subsidiary”),
attached hereto as Exhibit C (the “Merger Agreement”);
(iii) the Certificate Of Merger attached hereto as Exhibit D (the “Merger Certificate”)
to be filed with the New Jersey Division of Revenue in connection with the
Merger; (iv) the form of lock-up agreement attached hereto as Exhibit E (the “Lock-Up Agreement”);
and (v) the form of resignation and release attached hereto as  Exhibit F (the “Resignation and
Release”);

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      WHEREAS,
pursuant to the Merger Agreement, Merger Subsidiary will merge with and into
this Corporation, with this Corporation being the surviving corporation in the
Merger (the “Surviving
Corporation”) and a wholly owned subsidiary of Parent;

       

      WHEREAS,
upon effectiveness of the Merger, all of the properties, rights, privileges,
powers and franchises of Merger Subsidiary will vest in the Surviving
Corporation, and all of the debts, liabilities, duties and obligations of Merger
Subsidiary will become the debts, liabilities, duties and obligations of the
Surviving Corporation;

       

      WHEREAS,
upon effectiveness of the Merger, each outstanding share of this Corporation’s
common stock, no par value, will be converted into the right to receive the
Merger Consideration (as defined in the Merger Agreement);

       

      WHEREAS,
upon effectiveness of the Merger, each share of the common stock, $0.00001 par
value per share, of Merger Subsidiary then outstanding shall be converted into
one share of the validly issued, fully paid and non-assessable authorized common
stock of the Surviving Corporation; and

       

      WHEREAS,
the Board deems it advisable and in the best interests of this Corporation and
its stockholders for this Corporation to effect the Merger, and the transactions
contemplated in the Merger Agreement.

       

      NOW,
THEREFORE, BE IT RESOLVED, that the Merger, on the terms set forth in the Merger
Agreement, be, and it hereby is, authorized and approved; and it is

       

      RESOLVED
FURTHER, that the LOI be, and it hereby is, authorized, ratified and approved in
the form attached hereto as Exhibit B; and it
is

       

      RESOLVED
FURTHER, that the Merger Agreement be, and it hereby is, authorized and approved
in substantially the form attached hereto as Exhibit C; and it
is

       

      RESOLVED
FURTHER, that the Merger Certificate be, and it hereby is, authorized and
approved in substantially the form attached hereto as Exhibit D; and it
is

       

      RESOLVED
FURTHER, that the Lock-Up Agreement be, and it hereby is, authorized and
approved in substantially the form attached hereto as Exhibit E; and it
is

       

      RESOLVED
FURTHER, that the Resignation and Release be, and it hereby is, authorized and
approved in substantially the form attached hereto as Exhibit F; and it
is

       

      RESOLVED
FURTHER, that the officers of this Corporation be, and each of them alone hereby
is, authorized and directed to execute and deliver the LOI and the Merger
Agreement, with such modifications to the Merger Agreement, the Lock-Up
Agreement and the Resignation and Release as such officers shall approve, such
approval to be conclusively evidenced by such officer’s execution thereof; and
it is

       

       

      2

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      RESOLVED,
FURTHER, that the officers of this Corporation be, and each of them alone hereby
is, authorized and directed to execute, deliver or file, on behalf of this
Corporation and in its name the Merger Certificate with such modifications, and
any other documents, instruments and agreement determined by such officers to be
necessary or proper for the completion of the Merger and the other actions
contemplated by the Merger Agreement; and it is

       

      RESOLVED,
FURTHER, that the officers of this Corporation be, and each of them alone hereby
is, authorized and directed to perform, on behalf of this Corporation and in its
name, all acts reasonably required by the Merger Agreement or the Merger
Certificate; and it is

       

      RESOLVED,
FURTHER, that the officers of this Corporation be, and each of them alone hereby
is, authorized and directed to execute, deliver and file, on behalf of this
Corporation and in its name, any instrument, certificate, agreement or document
required to be executed, delivered or filed with the New Jersey Division of
Revenue, or any other governmental agency in connection with the Merger, in each
case in such form as such officer or officers may approve, which approval shall
be conclusively established by the execution, delivery or filing of such
agreement by such officer or officers; and it is

       

      RESOLVED,
FURTHER, that the terms of the Merger, the LOI, the Merger Agreement and the
transactions contemplated thereby be submitted to the stockholders of this
Corporation for their consideration and approval, and the Board hereby
recommends that the stockholders of this Corporation approve the terms of the
terms of the Merger, the LOI, the Merger Agreement and the transactions
contemplated thereby.

       

      RESOLVED,
FURTHER, that the terms of the Merger, the Merger Agreement and the transactions
contemplated thereby be submitted to the stockholders of this Corporation for
their consideration and approval, and the Board hereby recommends that the
stockholders of this Corporation approve the terms of the terms of the Merger,
the Merger Agreement and the transactions contemplated thereby.

       

      General Enabling
Resolution

       

      RESOLVED,
that the officers of this Corporation be, and each of them acting alone hereby
is, authorized and directed, by and on behalf of this Corporation and in its
name, to take all such other actions, to cause to be prepared and filed all such
other documents, to make all expenditures and to execute all instruments deemed
by such officer(s) to be necessary or appropriate in carrying out the purposes
of all of the foregoing resolutions.

       

      Ratifying
Resolution

       

      RESOLVED
FURTHER, that all actions by any and all officers and agents of this Corporation
taken or performed prior to the date hereof in respect of the matters referred
to in the foregoing resolutions be and such actions here by are, approved,
ratified and confirmed in all respects.

       

       

       

       

       

      3

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
WITNESS WHEREOF, the undersigned constituting the sole member of the Board has
executed this Unanimous Written Consent as of the date first set forth
above.

       

      

       

      
        	 
      	
                DIRECTOR:

              
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
                Navdeep
      S. Jaikaria, Ph.D.

              

      

      

       

       

       

       

       

       

       

      4

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      
 

      Schedule
2

       

      Company
Stockholder Consent

       

      [See attached]

       

       

       

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      RESOLUTIONS
ADOPTED BY

       

      WRITTEN
CONSENT

      OF
THE STOCKHOLDERS

      OF

      NEWGEN
BIOPHARMA CORPORATION

      

      July __,
2010

       

      The
undersigned, constituting all of the stockholders (collectively, the “Stockholders”), of
NewGen BioPharma Corporation, a New Jersey corporation (“Corporation”), in
accordance with the authority contained in this Corporation’s Bylaws and
pursuant to the New Jersey Business Corporation Act, do hereby take the
following actions, adopt the following resolutions, and transact the following
business via written consent (this “Written Consent”), to
be effective as of the date first set above, and such actions and resolutions to
have the same force and effect as though duly taken and adopted at a meeting of
the stockholders, duly called and held:

       

      Amendment to Certificate of
Incorporation

       

      WHEREAS,
in connection with the Merger (as defined below), the Board of Directors of this
Corporation (the “Board”) deems it
advisable and in the best interests of this Corporation and its stockholders to
amend the Certificate of Incorporation of this Corporation (the “Certificate of
Incorporation”) to effect a name change;

       

      WHEREAS,
the Board desires to amend the Certificate of Incorporation as set forth on
Exhibit A
attached hereto (the “Amendment”);
and

       

      WHEREAS,
the Board has recommended that this Corporation’s stockholders approve and adopt
the Amendment.

       

      NOW,
THEREFORE, BE IT RESOLVED, that the Amendment is hereby approved and adopted by
the Stockholders, and that the officers of this Corporation be, and each of them
alone hereby is, authorized and directed, by and on behalf of this Corporation
and in its name, to take all action and execute all such documents as may be
necessary or appropriate in effecting the Amendment, including, filing the
Amendment with the New Jersey Division of Revenue.

       

      Agreement and Plan of
Merger

       

      WHEREAS,
the Board has determined that it is the best interests of this Corporation and
its stockholders for this Corporation to effect a reverse merger with and into a
company (or its wholly owned subsidiary) with a class of securities registered
under Section 12 of the United States Securities Exchange Act of 1934, as
amended, and listed or quoted for trading on any national securities exchange or
national quotation system (the “Merger”);

       

      WHEREAS,
in connection with the Merger, the Board has reviewed and approved (i) the
Letter of Intent with respect to the Merger, attached hereto as Exhibit B (the “LOI”); and (ii) the
form of Agreement and Plan of Merger by and among this Corporation,
Retrospettiva, Inc., a California corporation (“Parent”), and
Retrospettiva Acquisitions, Inc., a New Jersey corporation and wholly owned
subsidiary of Parent (the “Merger Subsidiary”),
attached hereto as Exhibit C (the “Merger
Agreement”);

       

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      WHEREAS,
pursuant to the Merger Agreement, Merger Subsidiary will merge with and into
this Corporation, with this Corporation being the surviving corporation in the
Merger (the “Surviving
Corporation”) and a wholly owned subsidiary of Parent;

       

      WHEREAS,
upon effectiveness of the Merger, all of the properties, rights, privileges,
powers and franchises of Merger Subsidiary will vest in the Surviving
Corporation, and all of the debts, liabilities, duties and obligations of Merger
Subsidiary will become the debts, liabilities, duties and obligations of the
Surviving Corporation;

       

      WHEREAS,
upon effectiveness of the Merger, each outstanding share of this Corporation’s
common stock, no par value, will be converted into the right to receive the
Merger Consideration (as defined in the Merger Agreement);

       

      WHEREAS,
upon effectiveness of the Merger, each share of the common stock, $0.00001 par
value per share, of Merger Subsidiary then outstanding shall be converted into
one share of the validly issued, fully paid and non-assessable authorized common
stock of the Surviving Corporation; and

       

      WHEREAS,
the Board deems it advisable and in the best interests of this Corporation and
its stockholders for the Company to effect the Merger, and the transactions
contemplated in the Merger Agreement, and recommends that this Corporation’s
stockholders approve the LOI, the Merger, the Merger Agreement and the
transactions contemplated thereby.

       

      NOW,
THEREFORE, BE IT RESOLVED, that the Merger is hereby approved and adopted by the
Stockholders; and it is

       

      RESOLVED
FURTHER, that the LOI and the Merger Agreement are hereby approved and adopted
by the Stockholders; and it is

       

      RESOLVED
FURTHER, that the officers of this Corporation be, and each of them alone hereby
is, authorized and directed to execute and deliver the LOI and the Merger
Agreement, with such changes and amendments to the Merger Agreement as either
such officer shall approve, such approval to be conclusively evidenced by such
officer’s execution thereof; and it is

       

      RESOLVED,
FURTHER, that the officers of this Corporation be, and each of them alone hereby
is, authorized and directed to perform, on behalf of this Corporation and in its
name, all acts reasonably required by the Merger Agreement.

       

      Omnibus
Resolutions

       

      RESOLVED,
that the officers of this Corporation be, and each of them alone hereby is,
authorized and directed to do and perform any and all acts, including execution
of documents and certificates, as such officers shall deem necessary or
advisable, to carry out the purposes of the foregoing resolutions;
and

       

       

       

       

      2

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      RESOLVED
FURTHER, that any actions taken by such officers prior to the date of these
resolutions that are within the authority conferred by these resolutions are
hereby ratified, confirmed, and approved as the acts and deeds of this
Corporation.

       

      

       

      [Signature page
follows]

       

       

       

       

       

       

       

      3

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      IN
WITNESS WHEREOF, the undersigned, constituting at least a majority of the
outstanding shares of this Corporation, have executed this Written Consent as of
the date first set forth above.

       

      

       

      
        	 
      	
                STOCKHOLDERS:

              
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
                Navdeep
      S. Jaikaria, Ph.D.

              
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
                Thomas
      Korula

              
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
                Abu
      Alam, Ph.D.

              
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
                Dinesh
      Shenoy

              
	 
      	 
      

      

      

       

       

       

       

      4exhibit10-1.htm

 

 

SECURITIES PURCHASE AGREEMENT

 

This SECURITIES PURCHASE AGREEMENT (the “Agreement”), dated as of July 14, 2010, by and between FRESHWATER TECHNOLOGIES, INC., a Nevada corporation, with headquarters located at 30 Denver Cresent - Suite 200, Toronto, Ontario M2J 1G8 Canada (the “Company”), and ASHER ENTERPRISES, INC., a Delaware corporation, with its address at 1 Linden Place, Suite 207, Great Neck, NY 11021 (the “Buyer”).

 

WHEREAS:

 

A.           The Company and the Buyer is executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by the rules and regulations as promulgated by the United States Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933, as amended (the “1933 Act”);

 

B.           Buyer desires to purchase and the Company desires to issue and sell, upon the terms and conditions set forth in this Agreement an 8% convertible note of the Company, in the form attached hereto as Exhibit A, in the aggregate principal amount of $30,000.00 (together with any note(s) issued in replacement thereof or as a dividend thereon or otherwise with respect thereto in accordance with the terms thereof, the “Note”), convertible into shares of common stock, $0.001 par value per share, of the Company (the “Common Stock”), upon the terms and subject to the limitations and conditions set forth in such Note.

 

C.           The Buyer wishes to purchase, upon the terms and conditions stated in this Agreement, such principal amount of Note as is set forth immediately below its name on the signature pages hereto; and

 

NOW THEREFORE, the Company and the Buyer severally (and not jointly) hereby agree as follows:

 

1.           Purchase and Sale of Note.

 

a.           Purchase of Note. On the Closing Date (as defined below), the Company shall issue and sell to the Buyer and the Buyer agrees to purchase from the Company such principal amount of Note as is set forth immediately below the Buyer’s name on the signature pages hereto.

 

b.           Form of Payment. On the Closing Date (as defined below), (i) the Buyer shall pay the purchase price for the Note to be issued and sold to it at the Closing (as defined below) (the “Purchase Price”) by wire transfer of immediately available funds to the Company, in accordance with the Company’s written wiring instructions, against delivery of the Note in the principal amount equal to the Purchase Price as is set forth immediately below the Buyer’s name on the signature pages hereto, and (ii) the Company shall deliver such duly executed on behalf of the Company, to the Buyer, against delivery of such Purchase Price.

 

c.           Closing Date. Subject to the satisfaction (or written waiver) of the conditions thereto set forth in Section 6 and Section 7 below, the date and time of the issuance

  

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and sale of the Note pursuant to this Agreement (the “Closing Date”) shall be 12:00 noon, Eastern Standard Time on July 19, 2010, or such other mutually agreed upon time. The closing of the transactions contemplated by this Agreement (the “Closing”) shall occur on the Closing Date at such location as may be agreed to by the parties.

 

2.           Buyer’s Representations and Warranties. The Buyer represents and warrants to the Company that:

 

a.           Investment Purpose. As of the date hereof, the Buyer is purchasing the Note and the shares of Common Stock issuable upon conversion of or otherwise pursuant to the Note (including, without limitation, such additional shares of Common Stock, if any, as are issuable (i) on account of interest on the Note, (ii) as a result of the events described in Sections 1.3 and 1.4(g) of the Note or (iii) in payment of the Standard Liquidated Damages Amount (as defined in Section 2(f) below) pursuant to this Agreement, such shares of Common Stock being collectively referred to herein as the “Conversion Shares” and, collectively with the Note, the “Securities”) for its own account and not with a present view towards the public sale or distribution thereof, except pursuant to sales registered or exempted from registration under the 1933 Act; provided, however, that by making the representations herein, the Buyer does not agree to hold any of the Securities for any minimum or other specific term and reserves the right to dispose of the Securities at any time in accordance with or pursuant to a registration statement or an exemption under the 1933 Act.

 

b.           Accredited Investor Status. The Buyer is an “accredited investor” as that term is defined in Rule 50 1(a) of Regulation D (an “Accredited Investor”).

 

c.           Reliance on Exemptions. The Buyer understands that the Securities are being offered and sold to it in reliance upon specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying upon the truth and accuracy of, and the Buyer’s compliance with, the representations, warranties, agreements, acknowledgments and understandings of the Buyer set forth herein in order to determine the availability of such exemptions and the eligibility of the Buyer to acquire the Securities.

 

d.           Information. The Buyer and its advisors, if any, have been, and for so long as the Note remain outstanding will continue to be, furnished with all materials relating to the business, finances and operations of the Company and materials relating to the offer and sale of the Securities which have been requested by the Buyer or its advisors. The Buyer and its advisors, if any, have been, and for so long as the Note remain outstanding will continue to be, afforded the opportunity to ask questions of the Company. Notwithstanding the foregoing, the Company has not disclosed to the Buyer any material nonpublic information and will not disclose such information unless such information is disclosed to the public prior to or promptly following such disclosure to the Buyer. Neither such inquiries nor any other due diligence investigation conducted by Buyer or any of its advisors or representatives shall modify, amend or affect Buyer’s right to rely on the Company’s representations and warranties contained in Section 3 below. The Buyer understands that its investment in the Securities involves a

  

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significant degree of risk. The Buyer is not aware of any facts that may constitute a breach of any of the Company’s representations and warranties made herein.

 

e.           Governmental Review. The Buyer understands that no United States federal or state agency or any other government or governmental agency has passed upon or made any recommendation or endorsement of the Securities.

 

f.           Transfer or Re-sale. The Buyer understands that (i) the sale or re-sale of the Securities has not been and is not being registered under the 1933 Act or any applicable state securities laws, and the Securities may not be transferred unless (a) the Securities are sold pursuant to an effective registration statement under the 1933 Act, (b) the Buyer shall have delivered to the Company, at the cost of the Company, an opinion of counsel that shall be in form, substance and scope customary for opinions of counsel in comparable transactions to the effect that the Securities to be sold or transferred may be sold or transferred pursuant to an exemption from such registration, which opinion shall be accepted by the Company, (c) the Securities are sold or transferred to an “affiliate” (as defined in Rule 144 promulgated under the 1933 Act (or a successor rule) (“Rule 144”)) of the Buyer who agrees to sell or otherwise transfer the Securities only in accordance with this Section 2(f) and who is an Accredited Investor, (d) the Securities are sold pursuant to Rule 144, or (e) the Securities are sold pursuant to Regulation S under the 1933 Act (or a successor rule) (“Regulation S”), and the Buyer shall have delivered to the Company, at the cost of the Company, an opinion of counsel that shall be in form, substance and scope customary for opinions of counsel in corporate transactions, which opinion shall be accepted by the Company; (ii) any sale of such Securities made in reliance on Rule 144 may be made only in accordance with the terms of said Rule and further, if said Rule is not applicable, any re-sale of such Securities under circumstances in which the seller (or the person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the 1933 Act) may require compliance with some other exemption under the 1933 Act or the rules and regulations of the SEC thereunder; and (iii) neither the Company nor any other person is under any obligation to register such Securities under the 1933 Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder (in each case). Notwithstanding the foregoing or anything else contained herein to the contrary, the Securities may be pledged as collateral in connection with a bona fide margin account or other lending arrangement. In the event that the Company does not accept the opinion of counsel provided by the Buyer with respect to the transfer of Securities pursuant to an exemption from registration, such as Rule 144 or Regulation S, within three (3) business days of delivery of the opinion to the Company, the Company shall pay to the Buyer liquidated damages of five percent (5%) of the outstanding amount of the Note per day plus accrued and unpaid interest on the Note, prorated for partial months, in cash or shares at the option of the Buyer (“Standard Liquidated Damages Amount”). If the Buyer elects to be pay the Standard Liquidated Damages Amount in shares of Common Stock, such shares shall be issued at the Conversion Price (as defined in the Note) at the time of payment.

 

g.           Legends. The Buyer understands that the Note and, until such time as the Conversion Shares have been registered under the 1933 Act may be sold pursuant to Rule 144 or Regulation S without any restriction as to the number of securities as of a particular date that can then be immediately sold, the Conversion Shares may bear a restrictive legend in

  

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substantially the following form (and a stop-transfer order may be placed against transfer of the certificates for such Securities):

 

“NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”

 

The legend set forth above shall be removed and the Company shall issue a certificate without such legend to the holder of any Security upon which it is stamped, if, unless otherwise required by applicable state securities laws, (a) such Security is registered for sale under an effective registration statement filed under the 1933 Act or otherwise may be sold pursuant to Rule 144 or Regulation S without any restriction as to the number of securities as of a particular date that can then be immediately sold, or (b) such holder provides the Company with an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable transactions, to the effect that a public sale or transfer of such Security may be made without registration under the 1933 Act, which opinion shall be accepted by the Company so that the sale or transfer is effected or (c) such holder provides the Company with reasonable assurances that such Security can be sold pursuant to Rule 144 or Regulation S. The Buyer agrees to sell all Securities, including those represented by a certificate(s) from which the legend has been removed, in compliance with applicable prospectus delivery requirements, if any.

 

h.           Authorization; Enforcement. This Agreement has been duly and validly authorized. This Agreement has been duly executed and delivered on behalf of the Buyer, and this Agreement constitutes a valid and binding agreement of the Buyer enforceable in accordance with its terms.

 

i.           Residency. The Buyer is a resident of the jurisdiction set forth immediately below the Buyer’s name on the signature pages hereto.

 

3.           Representations and Warranties of the Company.  The Company represents and warrants to the Buyer that:

  

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a.           Organization and Qualification. The Company and each of its Subsidiaries (as defined below), if any, is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction in which it is incorporated, with full power and authority (corporate and other) to own, lease, use and operate its properties and to carry on its business as and where now owned, leased, used, operated and conducted. Schedule 3(a) sets forth a list of all of the Subsidiaries of the Company and the jurisdiction in which each is incorporated.  The Company and each of its Subsidiaries is duly qualified as a foreign corporation to do business and is in good standing in every jurisdiction in which its ownership or use of property or the nature of the business conducted by it makes such qualification necessary except where the failure to be so qualified or in good standing would not have a Material Adverse Effect. “Material Adverse Effect” means any material adverse effect on the business, operations, assets, financial condition or prospects of the Company or its Subsidiaries, if any, taken as a whole, or on the transactions contemplated hereby or by the agreements or instruments to be entered into in connection herewith. “Subsidiaries” means any corporation or other organization, whether incorporated or unincorporated, in which the Company owns, directly or indirectly, any equity or other ownership interest.

 

b.           Authorization; Enforcement. (i) The Company has all requisite corporate power and authority to enter into and perform this Agreement, the Note and to consummate the transactions contemplated hereby and thereby and to issue the Securities, in accordance with the terms hereof and thereof, (ii) the execution and delivery of this Agreement, the Note by the Company and the consummation by it of the transactions contemplated hereby and thereby (including without limitation, the issuance of the Note and the issuance and reservation for issuance of the Conversion Shares issuable upon conversion or exercise thereof) have been duly authorized by the Company’s Board of Directors and no further consent or authorization of the Company, its Board of Directors, or its shareholders is required, (iii) this Agreement has been duly executed and delivered by the Company by its authorized representative, and such authorized representative is the true and official representative with authority to sign this Agreement and the other documents executed in connection herewith and bind the Company accordingly, and (iv) this Agreement constitutes, and upon execution and delivery by the Company of the Note, each of such instruments will constitute, a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms.

 

c.           Capitalization. As of the date hereof, the authorized capital stock of the Company consists of: (i) 300,000,000 shares of Class A Common Stock, $0.001 par value per share, of which 189,120,000 shares are issued and outstanding; and (ii) 100,00,000 shares of Class B Common Stock, $0.00 1 par value per share, of which no shares are issued and outstanding; no shares are reserved for issuance pursuant to the Company’s stock option plans (other then 12,000,000 shares under the 2010 Non Qualified Stock Plan, no shares are reserved for issuance pursuant to securities (other than the Note and two convertible promissory notes in favor of the Buyer: (A) redated as of May 3, 2010 in the amount of $55,000 for which 10,645,161 shares of Class A common stock are presently reserved and (B) dated May 18, 2010 in the amount of $35,000 for which 10,071,464 shares of Class A common stock are presently reserved) exercisable for, or convertible into or exchangeable for shares of Class A Common Stock and 26,785,714 shares are reserved for issuance upon conversion of the Note (subject to

  

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adjustment pursuant to the Company’s covenant set forth in Section 4(g) below). All of such outstanding shares of capital stock are, or upon issuance will be, duly authorized, validly issued, fully paid and non-assessable. No shares of capital stock of the Company are subject to preemptive rights or any other similar rights of the shareholders of the Company or any liens or encumbrances imposed through the actions or failure to act of the Company. Except as disclosed in Schedule 3(c), as of the effective date of this Agreement, (i) there are no outstanding options, warrants, scrip, rights to subscribe for, puts, calls, rights of first refusal, agreements, understandings, claims or other commitments or rights of any character whatsoever relating to, or securities or rights convertible into or exchangeable for any shares of capital stock of the Company or any of its Subsidiaries, or arrangements by which the Company or any of its Subsidiaries is or may become bound to issue additional shares of capital stock of the Company or any of its Subsidiaries, (ii) there are no agreements or arrangements under which the Company or any of its Subsidiaries is obligated to register the sale of any of its or their securities under the 1933 Act and (iii) there are no anti-dilution or price adjustment provisions contained in any security issued by the Company (or in any agreement providing rights to security holders) that will be triggered by the issuance of the Note or the Conversion Shares. The Company has furnished to the Buyer true and correct copies of the Company’s Certificate of Incorporation as in effect on the date hereof (“Certificate of Incorporation”), the Company’s By-laws, as in effect on the date hereof (the “By-laws”), and the terms of all securities convertible into or exercisable for Common Stock of the Company and the material rights of the holders thereof in respect thereto. The Company shall provide the Buyer with a written update of this representation signed by the Company’s Chief Executive on behalf of the Company as of the Closing Date.

 

d.           Issuance of Shares.  The Conversion Shares are duly authorized and reserved for issuance and, upon conversion of the Note in accordance with its respective terms, will be validly issued, fully paid and non-assessable, and free from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights of shareholders of the Company and will not impose personal liability upon the holder thereof.

 

e.           Acknowledgment of Dilution. The Company understands and acknowledges the potentially dilutive effect to the Common Stock upon the issuance of the Conversion Shares upon conversion of the Note. The Company further acknowledges that its obligation to issue Conversion Shares upon conversion of the Note in accordance with this Agreement, the Note is absolute and unconditional regardless of the dilutive effect that such issuance may have on the ownership interests of other shareholders of the Company.

 

f.           No Conflicts.  The execution, delivery and performance of this Agreement, the Note by the Company and the consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance and reservation for issuance of the Conversion Shares) will not (i) conflict with or result in a violation of any provision of the Certificate of Incorporation or By-laws or (ii) violate or conflict with, or result in a breach of any provision of, or constitute a default (or an event which with notice or lapse of time or both could become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture, patent, patent license or instrument to which the Company or any of its Subsidiaries is a party, or  (iii) result in a

  

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violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws and regulations and regulations of any self-regulatory organizations to which the Company or its securities are subject) applicable to the Company or any of its Subsidiaries or by which any property or asset of the Company or any of its Subsidiaries is bound or affected (except for such conflicts, defaults, terminations, amendments, accelerations, cancellations and violations as would not, individually or in the aggregate, have a Material Adverse Effect). Neither the Company nor any of its Subsidiaries is in violation of its Certificate of Incorporation, By-laws or other organizational documents and neither the Company nor any of its Subsidiaries is in default (and no event has occurred which with notice or lapse of time or both could put the Company or any of its Subsidiaries in default) under, and neither the Company nor any of its Subsidiaries has taken any action or failed to take any action that would give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company or any of its Subsidiaries is a party or by which any property or assets of the Company or any of its Subsidiaries is bound or affected, except for possible defaults as would not, individually or in the aggregate, have a Material Adverse Effect. The businesses of the Company and its Subsidiaries, if any, are not being conducted, and shall not be conducted so long as a Buyer owns any of the Securities, in violation of any law, ordinance or regulation of any governmental entity. Except as specifically contemplated by this Agreement and as required under the 1933 Act and any applicable state securities laws, the Company is not required to obtain any consent, authorization or order of, or make any filing or registration with, any court, governmental agency, regulatory agency, self regulatory organization or stock market or any third party in order for it to execute, deliver or perform any of its obligations under this Agreement, the Note in accordance with the terms hereof or thereof or to issue and sell the Note in accordance with the terms hereof and to issue the Conversion Shares upon conversion of the Note. All consents, authorizations, orders, filings and registrations which the Company is required to obtain pursuant to the preceding sentence have been obtained or effected on or prior to the date hereof. The Company is not in violation of the listing requirements of the Over-the-Counter Bulletin Board (the “OTCBB”) and does not reasonably anticipate that the Common Stock will be delisted by the OTCBB in the foreseeable future. The Company and its Subsidiaries are unaware of any facts or circumstances which might give rise to any of the foregoing.

 

g.           SEC Documents; Financial Statements. The Company has timely filed all reports, schedules, forms, statements and other documents required to be filed by it with the SEC pursuant to the reporting requirements of the Securities Exchange Act of 1934, as amended (the “1934 Act”) (all of the foregoing filed prior to the date hereof and all exhibits included therein and financial statements and schedules thereto and documents (other than exhibits to such documents) incorporated by reference therein, being hereinafter referred to herein as the “SEC Documents”). The Company has delivered to the Buyer true and complete copies of the SEC Documents, except for such exhibits and incorporated documents. As of their respective dates, the SEC Documents complied in all material respects with the requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with the SEC, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. None of the statements made in any such SEC

  

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Documents is, or has been, required to be amended or updated under applicable law (except for such statements as have been amended or updated in subsequent filings prior the date hereof). As of their respective dates, the financial statements of the Company included in the SEC Documents complied as to form in all material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto. Such financial statements have been prepared in accordance with United States generally accepted accounting principles, consistently applied, during the periods involved and fairly present in all material respects the consolidated financial position of the Company and its consolidated Subsidiaries as of the dates thereof and the consolidated results of their operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments). Except as set forth in the financial statements of the Company included in the SEC Documents, the Company has no liabilities, contingent or otherwise, other than (i) liabilities incurred in the ordinary course of business subsequent to March 31, 2010, and (ii) obligations under contracts and commitments incurred in the ordinary course of business and not required under generally accepted accounting principles to be reflected in such financial statements, which, individually or in the aggregate, are not material to the financial condition or operating results of the Company. The Company is subject to the reporting requirements of the 1934 Act.

 

h.           Absence of Certain Changes.  Since March 31, 2010, there has been no material adverse change and no material adverse development in the assets, liabilities, business, properties, operations, financial condition, results of operations, prospects or 1934 Act reporting status of the Company or any of its Subsidiaries.

 

i.           Absence of Litigation.  There is no action, suit, claim, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the Company or any of its Subsidiaries, threatened against or affecting the Company or any of its Subsidiaries, or their officers or directors in their capacity as such, that could have a Material Adverse Effect. Schedule 3(i) contains a complete list and summary description of any pending or, to the knowledge of the Company, threatened proceeding against or affecting the Company or any of its Subsidiaries, without regard to whether it would have a Material Adverse Effect. The Company and its Subsidiaries are unaware of any facts or circumstances which might give rise to any of the foregoing.

 

j.           Patents, Copyrights, etc.  The Company and each of its Subsidiaries owns or possesses the requisite licenses or rights to use all patents, patent applications, patent rights, inventions, know-how, trade secrets, trademarks, trademark applications, service marks, service names, trade names and copyrights (“Intellectual Property”) necessary to enable it to conduct its business as now operated (and, as presently contemplated to be operated in the future); there is no claim or action by any person pertaining to, or proceeding pending, or to the Company’s knowledge threatened, which challenges the right of the Company or of a Subsidiary with respect to any Intellectual Property necessary to enable it to conduct its business as now operated (and, as presently contemplated to be operated in the future); to the best of the Company’s knowledge, the Company’s or its Subsidiaries’ current and intended products, services and processes do not infringe on any Intellectual Property or other rights held by any person; and the Company is unaware of any facts or circumstances which might give rise

  

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to any of the foregoing. The Company and each of its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of their Intellectual Property.

 

k.           No Materially Adverse Contracts, Etc. Neither the Company nor any of its Subsidiaries is subject to any charter, corporate or other legal restriction, or any judgment, decree, order, rule or regulation which in the judgment of the Company’s officers has or is expected in the future to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries is a party to any contract or agreement which in the judgment of the Company’s officers has or is expected to have a Material Adverse Effect.

 

l.           Tax Status. The Company and each of its Subsidiaries has made or filed all federal, state and foreign income and all other tax returns, reports and declarations required by any jurisdiction to which it is subject (unless and only to the extent that the Company and each of its Subsidiaries has set aside on its books provisions reasonably adequate for the payment of all unpaid and unreported taxes) and has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports and declarations, except those being contested in good faith and has set aside on its books provisions reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company know of no basis for any such claim. The Company has not executed a waiver with respect to the statute of limitations relating to the assessment or collection of any foreign, federal, state or local tax. None of the Company’s tax returns is presently being audited by any taxing authority.

 

m.           Certain Transactions. Except for arm’s length transactions pursuant to which the Company or any of its Subsidiaries makes payments in the ordinary course of business upon terms no less favorable than the Company or any of its Subsidiaries could obtain from third parties and other than the grant of stock options disclosed on Schedule 3(c), none of the officers, directors, or employees of the Company is presently a party to any transaction with the Company or any of its Subsidiaries (other than for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any corporation, partnership, trust or other entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or partner.

 

n.           Disclosure. All information relating to or concerning the Company or any of its Subsidiaries set forth in this Agreement and provided to the Buyer pursuant to Section 2(d) hereof and otherwise in connection with the transactions contemplated hereby is true and correct in all material respects and the Company has not omitted to state any material fact necessary in order to make the statements made herein or therein, in light of the circumstances under which they were made, not misleading. No event or circumstance has occurred or exists with respect to the Company or any of its Subsidiaries or its or their business, properties, prospects, operations or financial conditions, which, under applicable law, rule or regulation, requires public disclosure or announcement by the Company but which has not been

  

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so publicly announced or disclosed (assuming for this purpose that the Company’s reports filed under the 1934 Act are being incorporated into an effective registration statement filed by the Company under the 1933 Act).

 

o.           Acknowledgment Regarding Buyer’ Purchase of Securities. The Company acknowledges and agrees that the Buyer is acting solely in the capacity of arm’s length purchasers with respect to this Agreement and the transactions contemplated hereby. The Company further acknowledges that no Buyer is acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to this Agreement and the transactions contemplated hereby and any statement made by any Buyer or any of their respective representatives or agents in connection with this Agreement and the transactions contemplated hereby is not advice or a recommendation and is merely incidental to the Buyer’ purchase of the Securities. The Company further represents to the Buyer that the Company’s decision to enter into this Agreement has been based solely on the independent evaluation of the Company and its representatives.

 

p.           No Integrated Offering. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf, has directly or indirectly made any offers or sales in any security or solicited any offers to buy any security under circumstances that would require registration under the 1933 Act of the issuance of the Securities to the Buyer. The issuance of the Securities to the Buyer will not be integrated with any other issuance of the Company’s securities (past, current or future) for purposes of any shareholder approval provisions applicable to the Company or its securities.

 

q.           No Brokers. The Company has taken no action which would give rise to any claim by any person for brokerage commissions, transaction fees or similar payments relating to this Agreement or the transactions contemplated hereby.

 

r.           Permits; Compliance. The Company and each of its Subsidiaries is in possession of all franchises, grants, authorizations, licenses, permits, easements, variances, exemptions, consents, certificates, approvals and orders necessary to own, lease and operate its properties and to carry on its business as it is now being conducted (collectively, the “Company Permits”), and there is no action pending or, to the knowledge of the Company, threatened regarding suspension or cancellation of any of the Company Permits. Neither the Company nor any of its Subsidiaries is in conflict with, or in default or violation of, any of the Company Permits, except for any such conflicts, defaults or violations which, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect. Since March 31, 2010, neither the Company nor any of its Subsidiaries has received any notification with respect to possible conflicts, defaults or violations of applicable laws, except for notices relating to possible conflicts, defaults or violations, which conflicts, defaults or violations would not have a Material Adverse Effect.

 

s.           Environmental Matters.

 

(i)           There are, to the Company’s knowledge, with respect to the Company or any of its Subsidiaries or any predecessor of the Company, no past or present

  

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violations of Environmental Laws (as defined below), releases of any material into the environment, actions, activities, circumstances, conditions, events, incidents, or contractual obligations which may give rise to any common law environmental liability or any liability under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 or similar federal, state, local or foreign laws and neither the Company nor any of its Subsidiaries has received any notice with respect to any of the foregoing, nor is any action pending or, to the Company’s knowledge, threatened in connection with any of the foregoing. The term “Environmental Laws” means all federal, state, local or foreign laws relating to pollution or protection of human health or the environment (including, without limitation, ambient air, surface water, groundwater, land surface or subsurface strata), including, without limitation, laws relating to emissions, discharges, releases or threatened releases of chemicals, pollutants contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous Materials”) into the environment, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands or demand letters, injunctions, judgments, licenses, notices or notice letters, orders, permits, plans or regulations issued, entered, promulgated or approved thereunder.

 

(ii)           Other than those that are or were stored, used or disposed of in compliance with applicable law, no Hazardous Materials are contained on or about any real property currently owned, leased or used by the Company or any of its Subsidiaries, and no Hazardous Materials were released on or about any real property previously owned, leased or used by the Company or any of its Subsidiaries during the period the property was owned, leased or used by the Company or any of its Subsidiaries, except in the normal course of the Company’s or any of its Subsidiaries’ business.

 

(iii)           There are no underground storage tanks on or under any real property owned, leased or used by the Company or any of its Subsidiaries that are not in compliance with applicable law.

 

t.           Title to Property. The Company and its Subsidiaries have good and marketable title in fee simple to all real property and good and marketable title to all personal property owned by them which is material to the business of the Company and its Subsidiaries, in each case free and clear of all liens, encumbrances and defects except such as are described in Schedule 3(t) or such as would not have a Material Adverse Effect. Any real property and facilities held under lease by the Company and its Subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions as would not have a Material Adverse Effect.

 

u.           Insurance. The Company and each of its Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as management of the Company believes to be prudent and customary in the businesses in which the Company and its Subsidiaries are engaged. Neither the Company nor any such Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not have a Material Adverse

  

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Effect. The Company has provided to Buyer true and correct copies of all policies relating to directors’ and officers’ liability coverage, errors and omissions coverage, and commercial general liability coverage.

 

v.           Internal Accounting Controls. The Company and each of its Subsidiaries maintain a system of internal accounting controls sufficient, in the judgment of the Company’s board of directors, to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s general or specific authorization and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences.

 

w.           Foreign Corrupt Practices. Neither the Company, nor any of its Subsidiaries, nor any director, officer, agent, employee or other person acting on behalf of the Company or any Subsidiary has, in the course of his actions for, or on behalf of, the Company, used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expenses relating to political activity; made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds; violated or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended, or made any bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any foreign or domestic government official or employee.

 

x.           Solvency. The Company (after giving effect to the transactions contemplated by this Agreement) is solvent (i.e., its assets have a fair market value in excess of the amount required to pay its probable liabilities on its existing debts as they become absolute and matured) and currently the Company has no information that would lead it to reasonably conclude that the Company would not, after giving effect to the transaction contemplated by this Agreement, have the ability to, nor does it intend to take any action that would impair its ability to, pay its debts from time to time incurred in connection therewith as such debts mature. The Company did not receive a qualified opinion from its auditors with respect to its most recent fiscal year end and, after giving effect to the transactions contemplated by this Agreement, does not anticipate or know of any basis upon which its auditors might issue a qualified opinion in respect of its current fiscal year. Notwithstanding anything herein to the contrary the Buyer is aware of the “going concern” opinion issued by the Company’s auditors.

 

y.           No Investment Company. The Company is not, and upon the issuance and sale of the Securities as contemplated by this Agreement will not be an “investment company” required to be registered under the Investment Company Act of 1940 (an “Investment Company”). The Company is not controlled by an Investment Company.

 

z.           Breach of Representations and Warranties by the Company. If the Company breaches any of the representations or warranties set forth in this Section 3, and in addition to any other remedies available to the Buyer pursuant to this Agreement, the Company shall pay to the Buyer the Standard Liquidated Damages Amount in cash or in shares of

  

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Common Stock at the option of the Company, until such breach is cured. If the Company elects to pay the Standard Liquidated Damages Amounts in shares of Common Stock, such shares shall be issued at the Conversion Price at the time of payment.

 

4.           COVENANTS.

 

a.           Best Efforts. The parties shall use their best efforts to satisfy timely each of the conditions described in Section 6 and 7 of this Agreement.

 

b.           Form D; Blue Sky Laws. The Company agrees to file a Form D with respect to the Securities as required under Regulation D and to provide a copy thereof to the Buyer promptly after such filing. The Company shall, on or before the Closing Date, take such action as the Company shall reasonably determine is necessary to qualify the Securities for sale to the Buyer at the applicable closing pursuant to this Agreement under applicable securities or “blue sky” laws of the states of the United States (or to obtain an exemption from such qualification), and shall provide evidence of any such action so taken to the Buyer on or prior to the Closing Date.

 

c.           Use of Proceeds. The Company shall use the proceeds from the sale of the Note in the manner set forth in Schedule 4(d) attached hereto and made a part hereof and shall not, directly or indirectly, use such proceeds for any loan to or investment in any other corporation, partnership, enterprise or other person (except in connection with its currently existing direct or indirect Subsidiaries).

 

d.           Right of First Refusal. Unless it shall have first delivered to the Buyer, at least seventy two (72) hours prior to the closing of such Future Offering (as defined herein), written notice describing the proposed Future Offering, including the terms and conditions thereof and proposed definitive documentation to be entered into in connection therewith, and providing the Buyer an option during the seventy two (72) hour period following delivery of such notice to purchase the securities being offered in the Future Offering on the same terms as contemplated by such Future Offering (the limitations referred to in this sentence and the preceding sentence are collectively referred to as the “Right of First Refusal”) (and subject to the exceptions described below), the Company will not conduct any equity financing (including debt with an equity component) (“Future Offerings”) during the period beginning on the Closing Date and ending nine (9) months following the Closing Date. In the event the terms and conditions of a proposed Future Offering are amended in any respect after delivery of the notice to the Buyer concerning the proposed Future Offering, the Company shall deliver a new notice to the Buyer describing the amended terms and conditions of the proposed Future Offering and the Buyer thereafter shall have an option during the seventy two (72) hour period following delivery of such new notice to purchase its pro rata share of the securities being offered on the same terms as contemplated by such proposed Future Offering, as amended. The foregoing sentence shall apply to successive amendments to the terms and conditions of any proposed Future Offering. The Right of First Refusal shall not apply to any transaction involving (i) issuances of securities in a firm commitment underwritten public offering (excluding a continuous offering pursuant to Rule 415 under the 1933 Act) or (ii) issuances of securities as consideration for a merger, consolidation or purchase of assets, or in connection with any

  

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strategic partnership or joint venture (the primary purpose of which is not to raise equity capital), or in connection with the disposition or acquisition of a business, product or license by the Company. The Right of First Refusal also shall not apply to the issuance of securities upon exercise or conversion of the Company’s options, warrants or other convertible securities outstanding as of the date hereof or to the grant of additional options or warrants, or the issuance of additional securities, under any Company stock option or restricted stock plan approved by the shareholders of the Company.

 

e.           Expenses. At the Closing, the Company shall reimburse Buyer for expenses incurred by them in connection with the negotiation, preparation, execution, delivery and performance of this Agreement and the other agreements to be executed in connection herewith (“Documents”), including, without limitation, reasonable attorneys’ and consultants’ fees and expenses, transfer agent fees, fees for stock quotation services, fees relating to any amendments or modifications of the Documents or any consents or waivers of provisions in the Documents, fees for the preparation of opinions of counsel, escrow fees, and costs of restructuring the transactions contemplated by the Documents. When possible, the Company must pay these fees directly, otherwise the Company must make immediate payment for reimbursement to the Buyer for all fees and expenses immediately upon written notice by the Buyer or the submission of an invoice by the Buyer Notwithstanding anything herein to the contrary, the Company’s obligation to reimburse Buyer’ expenses shall be $2,500.

 

f.           Financial Information. The Company agrees to send or make available the following reports to the Buyer until the Buyer transfers, assigns, or sells all of the Securities: (i) within ten (10) days after the filing with the SEC, a copy of its Annual Report on Form 10-K its Quarterly Reports on Form 10-Q and any Current Reports on Form 8-K; (ii) within one (1) day after release, copies of all press releases issued by the Company or any of its Subsidiaries; and (iii) contemporaneously with the making available or giving to the shareholders of the Company, copies of any notices or other information the Company makes available or gives to such shareholders.

 

g.           Authorization and Reservation of Shares.  The Company shall at all times have authorized, and reserved for the purpose of issuance, a sufficient number of shares of Common Stock to provide for the full conversion or exercise of the outstanding Note and issuance of the Conversion Shares in connection therewith (based on the Conversion Price of the Note in effect from time to time) and as otherwise required by the Note. The Company shall not reduce the number of shares of Common Stock reserved for issuance upon conversion of Note without the consent of the Buyer. The Company shall at all times maintain the number of shares of Common Stock so reserved for issuance at an amount (“Reserved Amount”) equal to five times the number that is then actually issuable upon full conversion of the Note and Additional Note (based on the Conversion Price of the Note in effect from time to time). If at any time the number of shares of Common Stock authorized and reserved for issuance (“Authorized and Reserved Shares”) is below the Reserved Amount, the Company will promptly take all corporate action necessary to authorize and reserve a sufficient number of shares, including, without limitation, calling a special meeting of shareholders to authorize additional shares to meet the Company’s obligations under this Section 4(g), in the case of an insufficient number of authorized shares, obtain shareholder approval of an increase in such authorized number of

  

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shares, and voting the management shares of the Company in favor of an increase in the authorized shares of the Company to ensure that the number of authorized shares is sufficient to meet the Reserved Amount. If the Company fails to obtain such shareholder approval within thirty (30) days following the date on which the number of Reserved Amount exceeds the Authorized and Reserved Shares, the Company shall pay to the Buyer the Standard Liquidated Damages Amount, in cash or in shares of Common Stock at the option of the Buyer. If the Buyer elects to be paid the Standard Liquidated Damages Amount in shares of Common Stock, such shares shall be issued at the Conversion Price at the time of payment. In order to ensure that the Company has authorized a sufficient amount of shares to meet the Reserved Amount at all times, the Company must deliver to the Buyer upon the Buyer’s request a list detailing (1) the current amount of shares authorized by the Company and reserved for the Buyer; and (2) amount of shares issuable upon conversion of the Note and as payment of interest accrued on the Note for one year. If the Company fails to provide such list within five (5) business days after the Buyer so requests it, the Company shall pay the Standard Liquidated Damages Amount, in cash or in shares of Common Stock at the option of the Buyer, until the list is delivered. If the Buyer elects to be paid the Standard Liquidated Damages Amount in shares of Common Stock, such shares shall be issued at the Conversion Price at the time of payment.

 

h.           Listing. The Company shall promptly secure the listing of the Conversion Shares upon each national securities exchange or automated quotation system, if any, upon which shares of Common Stock are then listed (subject to official notice of issuance) and, so long as any Buyer owns any of the Securities, shall maintain, so long as any other shares of Common Stock shall be so listed, such listing of all Conversion Shares from time to time issuable upon conversion of the Note. The Company will obtain and, so long as any Buyer owns any of the Securities, maintain the listing and trading of its Common Stock on the OTCBB or any equivalent replacement exchange, the Nasdaq National Market (“Nasdaq”), the Nasdaq SmallCap Market (“Nasdaq SmallCap”), the New York Stock Exchange (“NYSE”), or the American Stock Exchange (“AMEX”) and will comply in all respects with the Company’s reporting, filing and other obligations under the bylaws or rules of the Financial Industry Regulatory Authority (“FINRA”) and such exchanges, as applicable. The Company shall promptly provide to the Buyer copies of any notices it receives from the OTCBB and any other exchanges or quotation systems on which the Common Stock is then listed regarding the continued eligibility of the Common Stock for listing on such exchanges and quotation systems.

 

i.           Corporate Existence. So long as a Buyer beneficially owns any Note, the Company shall maintain its corporate existence and shall not sell all or substantially all of the Company’s assets, except in the event of a merger or consolidation or sale of all or substantially all of the Company’s assets, where the surviving or successor entity in such transaction (i) assumes the Company’s obligations hereunder and under the agreements and instruments entered into in connection herewith and (ii) is a publicly traded corporation whose Common Stock is listed for trading on the OTCBB, Nasdaq, Nasdaq SmallCap, NYSE or AMEX.

 

j.           No Integration.  The Company shall not make any offers or sales of any security (other than the Securities) under circumstances that would require registration of the Securities being offered or sold hereunder under the 1933 Act or cause the offering of the

  

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Securities to be integrated with any other offering of securities by the Company for the purpose of any stockholder approval provision applicable to the Company or its securities.

 

k.           Breach of Covenants. If the Company breaches any of the covenants set forth in this Section 4, and in addition to any other remedies available to the Buyer pursuant to this Agreement, the Company shall pay to the Buyer the Standard Liquidated Damages Amount, in cash or in shares of Common Stock at the option of Buyer, until such breach is cured. If the Buyer elects to pay the Standard Liquidated Damages Amount in shares, such shares shall be issued at the Conversion Price at the time of payment.

 

l.           Failure to Comply with the 1934 Act. So long as the Buyer beneficially owns the Note, the Company shall comply with the reporting requirements of the 1934 Act; and the Company shall continue to be subject to the reporting requirements of the 1934 Act.

 

m.           Trading Activities. Neither the Buyer nor their affiliates has an open short position in the common stock of the Company and the Buyer agree that they shall not, and that they will cause their affiliates not to, engage in any short sales of or hedging transactions with respect to the common stock of the Company.

 

5.           Transfer Agent Instructions. The Company shall issue irrevocable instructions to its transfer agent to issue certificates, registered in the name of the Buyer or its nominee, for the Conversion Shares in such amounts as specified from time to time by the Buyer to the Company upon conversion of the Note in accordance with the terms thereof (the “Irrevocable Transfer Agent Instructions”). In the event that the Borrower proposes to replace its transfer agent, the Borrower shall provide, prior to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions in a form as initially delivered pursuant to the Purchase Agreement (including but not limited to the provision to irrevocably reserve shares of Common Stock in the Reserved Amount) signed by the successor transfer agent to Borrower and the Borrower. Prior to registration of the Conversion Shares under the 1933 Act or the date on which the Conversion Shares may be sold pursuant to Rule 144 without any restriction as to the number of Securities as of a particular date that can then be immediately sold, all such certificates shall bear the restrictive legend specified in Section 2(g) of this Agreement. The Company warrants that: (i) no instruction other than the Irrevocable Transfer Agent Instructions referred to in this Section 5, and stop transfer instructions to give effect to Section 2(f) hereof (in the case of the Conversion Shares, prior to registration of the Conversion Shares under the 1933 Act or the date on which the Conversion Shares may be sold pursuant to Rule 144 without any restriction as to the number of Securities as of a particular date that can then be immediately sold), will be given by the Company to its transfer agent and that the Securities shall otherwise be freely transferable on the books and records of the Company as and to the extent provided in this Agreement and the Note; (ii) it will not direct its transfer agent not to transfer or delay, impair, and/or hinder its transfer agent in transferring (or issuing)(electronically or in certificated form) any certificate for Conversion Shares to be issued to the Buyer upon conversion of or otherwise pursuant to the Note as and when required by the Note and this Agreement; and (iii) it will not fail to remove (or directs its transfer agent not to remove or impairs, delays, and/or hinders its transfer agent from removing) any restrictive legend (or to withdraw any stop transfer

  

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instructions in respect thereof) on any certificate for any Conversion Shares issued to the Buyer upon conversion of or otherwise pursuant to the Note as and when required by the Note and this Agreement. Nothing in this Section shall affect in any way the Buyer’s obligations and agreement set forth in Section 2(g) hereof to comply with all applicable prospectus delivery requirements, if any, upon re-sale of the Securities. If a Buyer provides the Company, at the cost of the Company, with (i) an opinion of counsel in form, substance and scope customary for opinions in comparable transactions, to the effect that a public sale or transfer of such Securities may be made without registration under the 1933 Act and such sale or transfer is effected or (ii) the Buyer provides reasonable assurances that the Securities can be sold pursuant to Rule 144, the Company shall permit the transfer, and, in the case of the Conversion Shares, promptly instruct its transfer agent to issue one or more certificates, free from restrictive legend, in such name and in such denominations as specified by the Buyer. The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Buyer, by vitiating the intent and purpose of the transactions contemplated hereby. Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations under this Section 5 may be inadequate and agrees, in the event of a breach or threatened breach by the Company of the provisions of this Section, that the Buyer shall be entitled, in addition to all other available remedies, to an injunction restraining any breach and requiring immediate transfer, without the necessity of showing economic loss and without any bond or other security being required.

 

6.           Conditions to the Company’s Obligation to Sell. The obligation of the Company hereunder to issue and sell the Note to a Buyer at the Closing is subject to the satisfaction, at or before the Closing Date of each of the following conditions thereto, provided that these conditions are for the Company’s sole benefit and may be waived by the Company at any time in its sole discretion:

 

a.           The Buyer shall have executed this Agreement and delivered the same to the Company.

 

b.           The Buyer shall have delivered the Purchase Price in accordance with Section 1(b) above.

 

c.           The representations and warranties of the applicable Buyer shall be true and correct in all material respects as of the date when made and as of the Closing Date as though made at that time (except for representations and warranties that speak as of a specific date), and the applicable Buyer shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the applicable Buyer at or prior to the Closing Date.

 

d.           No litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization having authority over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated by this Agreement.

  

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7.           Conditions to The Buyer’s Obligation to Purchase. The obligation of the Buyer hereunder to purchase the Note at the Closing is subject to the satisfaction, at or before the Closing Date of each of the following conditions, provided that these conditions are for the Buyer’s sole benefit and may be waived by the Buyer at any time in its sole discretion:

 

a.           The Company shall have executed this Agreement and delivered the same to the Buyer.

 

b.           The Company shall have delivered to the Buyer duly executed Note (in such denominations as the Buyer shall request) in accordance with Section 1(b) above.

 

c.           The Irrevocable Transfer Agent Instructions, in form and substance satisfactory to a majority-in-interest of the Buyer, shall have been delivered to and acknowledged in writing by the Company’s Transfer Agent.

 

d.           The representations and warranties of the Company shall be true and correct in all material respects as of the date when made and as of the Closing Date as though made at such time (except for representations and warranties that speak as of a specific date) and the Company shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Company at or prior to the Closing Date. The Buyer shall have received a certificate or certificates, executed by the chief executive officer of the Company, dated as of the Closing Date, to the foregoing effect and as to such other matters as may be reasonably requested by the Buyer including, but not limited to certificates with respect to the Company’s Certificate of Incorporation, By-laws and Board of Directors’ resolutions relating to the transactions contemplated hereby.

 

e.           No litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization having authority over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated by this Agreement.

 

f.           No event shall have occurred which could reasonably be expected to have a Material Adverse Effect on the Company including but not limited to a change in the 1934 Act reporting status of the Company or the failure of the Company to be timely in its 1934 Act reporting obligations.

 

g.           The Conversion Shares shall have been authorized for quotation on the OTCBB and trading in the Common Stock on the OTCBB shall not have been suspended by the SEC or the OTCBB.

 

h.           The Buyer shall have received an officer’s certificate described in Section 3(c) above, dated as of the Closing Date.

 

8.           Governing Law; Miscellaneous.

  

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a.           Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Agreement shall be brought only in the state courts of New York or in the federal courts located in the state and county of Nassau. The parties to this Agreement hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The Company and Buyer waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Agreement or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Agreement or any other Transaction Document by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.

 

b.           Counterparts; Signatures by Facsimile. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which shall constitute one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party. This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile transmission of a copy of this Agreement bearing the signature of the party so delivering this Agreement.

 

c.           Headings. The headings of this Agreement are for convenience of reference only and shall not form part of, or affect the interpretation of, this Agreement.

 

d.           Severability. In the event that any provision of this Agreement is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision hereof.

 

e.           Entire Agreement; Amendments. This Agreement and the instruments referenced herein contain the entire understanding of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company nor the Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. No provision of this Agreement may be waived or amended other than by an instrument in writing signed by the majority in interest of the Buyer.

  

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

 

If to the Company, to:

FRESHWATER TECHNOLOGIES, INC.

30 Denver Cresent - Suite 200

Toronto, Ontario M2J 1G8 Canada

Attn: MAX WEISSENGRUBER, President

facsimile: [enter fax number]

 

With a copy by fax only to (which copy shall not constitute notice):

[enter name of law firm]

Attn: [attorney name]

[enter address line 1]

[enter city, state, zip]

facsimile: [enter fax number]

 

If to the Buyer:

ASHER ENTERPRISES, INC.

1 Linden Pl., Suite 207

Great Neck, NY. 11021

Attn: Curt Kramer, President

facsimile: 516-498-9894

 

With a copy by fax only to (which copy shall not constitute notice):

Naidich Wurman Birnbaum & Mayday LLP

80 Cuttermill Road, Suite 410

Great Neck, NY 11021

Attn: Bernard S. Feldman, Esq.

facsimile: 516-466-3555

 

Each party shall provide notice to the other party of any change in address.

  

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g.           Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and assigns. Neither the Company nor any Buyer shall assign this Agreement or any rights or obligations hereunder without the prior written consent of the other. Notwithstanding the foregoing, subject to Section 2(f), any Buyer may assign its rights hereunder to any person that purchases Securities in a private transaction from a Buyer or to any of its “affiliates,” as that term is defined under the 1934 Act, without the consent of the Company.

 

h.           Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

 

i.           Survival. The representations and warranties of the Company and the agreements and covenants set forth in this Agreement shall survive the closing hereunder notwithstanding any due diligence investigation conducted by or on behalf of the Buyer. The Company agrees to indemnify and hold harmless each of the Buyer and all their officers, directors, employees and agents for loss or damage arising as a result of or related to any breach or alleged breach by the Company of any of its representations, warranties and covenants set forth in this Agreement or any of its covenants and obligations under this Agreement, including advancement of expenses as they are incurred.

 

j.           Publicity.  The Company, and each of the Buyer shall have the right to review a reasonable period of time before issuance of any press releases, SEC, OTCBB or FINRA filings, or any other public statements with respect to the transactions contemplated hereby; provided, however, that the Company shall be entitled, without the prior approval of each of the Buyer, to make any press release or SEC, OTCBB (or other applicable trading market) or FINRA filings with respect to such transactions as is required by applicable law and regulations (although each of the Buyer shall be consulted by the Company in connection with any such press release prior to its release and shall be provided with a copy thereof and be given an opportunity to comment thereon).

 

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

 

l.           No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party.

 

m.           Remedies. The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Buyer by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations under this Agreement will be inadequate and agrees, in the event of a breach or threatened breach by the Company of the provisions of this

  

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Agreement, that the Buyer shall be entitled, in addition to all other available remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing or curing any breach of this Agreement and to enforce specifically the terms and provisions hereof, without the necessity of showing economic loss and without any bond or other security being required.

 

  

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IN WITNESS WHEREOF, the undersigned Buyer and the Company have caused this Agreement to be duly executed as of the date first above written.

 

FRESHWATER TECHNOLOGIES, INC.

 

 

By:           /s/ Max Weissengruber

MAX WEISSENGRUBER

President

 

ASHER ENTERPRISES, INC.

 

 

 

By:           /s/ Curt Kramer

Name:           Curt Kramer

Title:           President

 

1 Linden Pl., Suite 207

Great Neck, NY. 11021

 

 

AGGREGATE SUBSCRIPTION AMOUNT:

	
Aggregate Principal Amount of Note:

	
$30,000.00

	
Aggregate Purchase Price:

	
$30,000.00

 

  

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