Document:

eahc_ex101.htm

EXHIBIT 10.1

 

AGREEMENT

 

THIS AGREEMENT (the “Agreement”) made this _____day of ____________, 2013 by and among, Explore Anywhere Holding Corp., a Nevada corporation, with offices located at 1 Tara Boulevard, Suite 200, Nashua, NH 03062 (“Explore Anywhere Holding Corp.”) and Sponsor Me, Inc. a Florida corporation, with offices located at _________________________, (“SPONSOR ME” or “the Company”) on behalf of its shareholders, both parties hereinafter referred to as the “Parties.”

BACKGROUND:

 

A. The Boards of Directors of Explore Anywhere Holding Corp. and SPONSOR ME have determined that an acquisition of 100% of the outstanding shares in SPONSOR ME by Explore Anywhere Holding Corp. through a share exchange upon the terms and subject to the conditions set forth in this Agreement, would be fair and in the best interests of Explore Anywhere Holding Corp. and SPONSOR ME’s shareholders, and the Boards of Directors of Explore Anywhere Holding Corp. and SPONSOR ME have approved such Exchange, pursuant to which all of the right, title and interest in and to 100% of the ownership interest in SPONSOR ME (the “Ownership Interest”) will be exchanged for the right to receive 61,204,667 shares of common stock of Explore Anywhere Holding Corp. (the “Exchange Shares”).

 

B. Explore Anywhere Holding Corp. and SPONSOR ME desire to make certain representations, warranties, covenants and agreements in connection with the Exchange and also to prescribe various conditions to the Exchange.

 

C. For federal income tax purposes, the Parties intend that the Exchange shall qualify as reorganization under the provisions of Section 368(a)(1)(B) of the Internal Revenue Code of 1986, as amended (the “Code”).

 

NOW, THEREFORE, in consideration of the representations, warranties, covenants and agreements contained in this Agreement, the Parties agree as follows:

 

ARTICLE I

THE EXCHANGE

 

1.01 Exchange. Upon the terms and subject to the conditions set forth in this Agreement, and in accordance with the Nevada Revised Statutes (“Nevada Statutes”), at the Closing (as hereinafter defined), the Parties shall do the following:

 

(a) The shareholders of SPONSOR ME will sell, convey, assign, and transfer the Ownership Interest to Explore Anywhere Holding Corp. by delivering to Explore Anywhere Holding Corp. executed and transferable share certificates. The Ownership Interest transferred to Explore Anywhere Holding Corp. at the Closing shall constitute 100% of all issued and outstanding ownership interest in the Company.

 

  

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(b) As consideration for its acquisition of the Ownership Interest, Explore Anywhere Holding Corp. shall issue the Exchange Shares to SPONSOR ME by delivering a share certificate to SPONSOR ME evidencing the Exchange Shares (the “Exchange Shares Certificate”).

 

(c) For federal income tax purposes, the Exchange is intended to constitute a “reorganization” within the meaning of Section 368 of the Code, and the Parties shall report the transactions contemplated by the this Agreement consistent with such intent and shall take no position in any Tax filing or legal proceeding inconsistent therewith. The Parties to this Agreement hereby adopt this Agreement as a “Plan of Reorganization” within the meaning of Sections 1.368-2(g) and 1.368-3(a) of the United States Treasury Regulations. None of Explore Anywhere Holding Corp. or SPONSOR ME has taken or failed to take, and after the Effective Time (as defined below), Explore Anywhere Holding Corp. shall not take or fail to take, any action which reasonably could be expected to cause the Exchange to fail to qualify as a “reorganization” within the meaning of Section 368(a) of the Code.

 

1.02 Effect of the Exchange. The Exchange shall have the effects set forth in the applicable provisions of the Nevada Statutes.

 

1.03 Closing. Unless this Agreement shall have been terminated and the transactions herein contemplated shall have been abandoned pursuant to Article VI and subject to the satisfaction or waiver of the conditions set forth in Article V, the closing of the Exchange (the “Closing”) will take place at 10:00 a.m. U.S. Pacific Standard Time on ____________or earlier upon the business day after satisfaction of the conditions set forth in Article V (or as soon as practicable thereafter following satisfaction or waiver of the conditions set forth in Article V) (the “Closing Date”), at the offices of Harold P. Gewerter, Esq., 5536 S. Ft. Apache #102, Las Vegas, NV 89148, unless another date, time or place is agreed to in writing by the Parties hereto.

 

1.04 Effective Time of Exchange. As soon as practicable following the satisfaction or waiver of the conditions set forth in Article V, the Parties shall make all filings or recordings required under Nevada Statutes. The Exchange shall become effective at such time as is permissible in accordance with Nevada Statutes (the time the Exchange becomes effective being the “Effective Time”). Explore Anywhere Holding Corp. and the Company shall use reasonable efforts to have the Closing Date and the Effective Time to be the same day.

 

ARTICLE II

REPRESENTATIONS AND WARRANTIES

 

2.01 Representations and Warranties of the Company. Except as set forth in the disclosure schedule delivered by the SPONSOR ME to Explore Anywhere Holding Corp. at the time of execution of this Agreement (the “Company Disclosure Schedule”), the Company represents and warrants to Explore Anywhere Holding Corp. as follows:

 

(a) Organization, Standing and Power. The Company is duly organized, validly existing and in good standing under the laws of the State of Nevada and has the requisite power and authority and all government licenses, authorizations, permits, consents and approvals required to own, lease and operate its properties and carry on its business as now being conducted. The Company is duly qualified or licensed to do business and is in good standing in each jurisdiction in which the nature of its business or the ownership or leasing of its properties makes such qualification or licensing necessary, other than in such jurisdictions where the failure to be so qualified or licensed (individually or in the aggregate) would not have a material adverse effect (as defined in Section 8.02).

 

  

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(b) Subsidiaries. The Company does not own directly or indirectly, any equity or other ownership interest in any company, corporation, partnership, joint venture or otherwise.

 

(c) Ownership Interest. The Ownership Interest represents 100% of the issued and outstanding shares of the Company. There are no outstanding bonds, debentures, notes or other indebtedness or other securities of the Company. There are no rights, commitments, agreements, arrangements or undertakings of any kind to which the Company is a party or by which it is bound obligating the Company to issue, deliver or sell, or cause to be issued, delivered or sold, additional ownership interests of the Company or obligating the Company to issue, grant, extend or enter into any such right, commitment, agreement, arrangement or undertaking. There are no outstanding contractual obligations, commitments, understandings or arrangements of the Company to repurchase, redeem or otherwise acquire or make any payment in respect of the ownership interests of the Company.

 

(d) Authority; Noncontravention. The Company has all requisite power and authority to enter into this Agreement and to consummate the transactions contemplated by this Agreement. The execution and delivery of this Agreement by the Company and the consummation by the Company of the transactions contemplated hereby have been (or at Closing will have been) duly authorized by all necessary action on the part of the Company. This Agreement has been duly executed and when delivered by the Company shall constitute a valid and binding obligation of the Company, enforceable against the Company and the selling shareholders, as applicable, in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency or other similar laws affecting the enforcement of creditors’ rights generally or by general principles of equity. The execution and delivery of this Agreement do not, and the consummation of the transactions contemplated by this Agreement and compliance with the provisions hereof will not, conflict with, or result in any breach or violation of, or default (with or without notice or lapse of time, or both) under, or give rise to a right of termination, cancellation or acceleration of or “put” right with respect to any obligation or to a loss of a material benefit under, or result in the creation of any lien upon any of the properties or assets of the Company under, (i) the Company’s articles of incorporation or bylaws, if any, (ii) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, instrument, permit, concession, franchise or license applicable to the Company, its properties or assets, or (iii) subject to the governmental filings and other matters referred to in the following sentence, any judgment, order, decree, statute, law, ordinance, rule, regulation or arbitration award applicable to the Company, its properties or assets, other than, in the case of clauses (ii) and (iii), any such conflicts, breaches, violations, defaults, rights, losses or liens that individually or in the aggregate could not have a material adverse effect with respect to the Company or could not prevent, hinder or materially delay the ability of the Company to consummate the transactions contemplated by this Agreement.

 

  

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(e) Governmental Authorization. No consent, approval, order or authorization of, or registration, declaration or filing with, or notice to, any United States court, administrative agency or commission, or other federal, state or local government or other governmental authority, agency, domestic or foreign (a “Governmental Entity”), is required by or with respect to the Company in connection with the execution and delivery of this Agreement by the Company or the consummation by the Company of the transactions contemplated hereby, except, with respect to this Agreement, any filings under the Securities Act of 1933, as amended (the “Securities Act”) or Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder (the “Exchange Act”).

 

(f) Financial Statements.

 

(i) Explore Anywhere Holding Corp. has received a copy of the unaudited consolidated financial statements of the Company (collectively, the “Company Financial Statements”). The Company Financial Statements fairly present the financial condition of the Company at the dates indicated and its results of operations and cash flows for the periods then ended and, except as indicated therein, reflect all claims against, debts and liabilities of the Company, fixed or contingent, and of whatever nature.

 

(ii) Since the date of the balance sheet (the “Company Balance Sheet Date”), there has been no material adverse change in the assets or liabilities, or in the business or condition, financial or otherwise, or in the results of operations or prospects, of the Company, whether as a result of any legislative or regulatory change, revocation of any license or rights to do business, fire, explosion, accident, casualty, labor trouble, flood, drought, riot, storm, condemnation, act of God, public force or otherwise and no material adverse change in the assets or liabilities, or in the business or condition, financial or otherwise, or in the results of operation or prospects, of the Company except in the ordinary course of business.

 

(iii) Since the Company Balance Sheet Date, the Company has not suffered any damage, destruction or loss of physical property (whether or not covered by insurance) affecting its condition (financial or otherwise) or operations (present or prospective), nor has the Company, except as disclosed in writing to Explore Anywhere Holding Corp., issued, sold or otherwise disposed of, or agreed to issue, sell or otherwise dispose of, any shares or any other security of the Company and has not granted or agreed to grant any other right to subscribe for or to purchase any shares or any other security of the Company or has incurred or agreed to incur any indebtedness for borrowed money.

 

(g) Absence of Certain Changes or Events. Except as set forth on Schedule 2.01(g), since the Company Balance Sheet Date, the Company has conducted its business only in the ordinary course consistent with past practice, and there is not and has not been any:

 

(i) material adverse change with respect to the Company;

 

(ii) event which, if it had taken place following the execution of this Agreement, would not have been permitted by Section 3.01 without prior consent of Explore Anywhere Holding Corp.;

 

(iii) condition, event or occurrence which could reasonably be expected to prevent, hinder or materially delay the ability of the Company to consummate the transactions contemplated by this Agreement;

 

  

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(iv) incurrence, assumption or guarantee by the Company of any indebtedness for borrowed money other than in the ordinary course and in amounts and on terms consistent with past practices or as disclosed to Explore Anywhere Holding Corp. in writing;

 

(v) creation or other incurrence by the Company of any lien on any asset other than in the ordinary course consistent with past practices;

 

(vi) transaction or commitment made, or any contract or agreement entered into, by the Company relating to its assets or business (including the acquisition or disposition of any assets) or any relinquishment by the Company of any contract or other right, in either case, material to the Company, other than transactions and commitments in the ordinary course consistent with past practices and those contemplated by this Agreement;

 

(vii) labor dispute, other than routine, individual grievances, or, to the knowledge of the Company, any activity or proceeding by a labor union or representative thereof to organize any employees of the Company or any lockouts, strikes, slowdowns, work stoppages or threats by or with respect to such employees;

 

(viii) payment, prepayment or discharge of liability other than in the ordinary course of business or any failure to pay any liability when due;

 

(ix) write-offs or write-downs of any assets of the Company;

 

(x) creation, termination or amendment of, or waiver of any right under, any material contract of the Company;

 

(xi) damage, destruction or loss having, or reasonably expected to have, a material adverse effect on the Company;

 

(xii) other condition, event or occurrence which individually or in the aggregate could reasonably be expected to have a material adverse effect or give rise to a material adverse change with respect to the Company; or

 

(xiii) agreement or commitment to do any of the foregoing.

 

(h) Certain Fees. Except as set forth on Schedule 2.01(h), no brokerage or finder’s fees or commissions are or will be payable by the Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other person with respect to the transactions contemplated by this Agreement.

 

(i) Litigation; Labor Matters; Compliance with Laws.

 

(i) There is no suit, action or proceeding or investigation pending or, to the knowledge of the Company, threatened against or affecting the Company or any basis for any such suit, action, proceeding or investigation that, individually or in the aggregate, could reasonably be expected to have a material adverse effect with respect to the Company or prevent, hinder or materially delay the ability of the Company to consummate the transactions contemplated by this Agreement, nor is there any judgment, decree, injunction, rule or order of any Governmental Entity or arbitrator outstanding against the Company having, or which, insofar as reasonably could be foreseen by the Company, in the future could have, any such effect.

 

  

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(ii) The Company is not a party to, or bound by, any collective bargaining agreement, contract or other agreement or understanding with a labor union or labor organization, nor is it the subject of any proceeding asserting that it has committed an unfair labor practice or seeking to compel it to bargain with any labor organization as to wages or conditions of employment nor is there any strike, work stoppage or other labor dispute involving it pending or, to its knowledge, threatened, any of which could have a material adverse effect with respect to Company.

 

(iii) The conduct of the business of the Company complies with all statutes, laws, regulations, ordinances, rules, judgments, orders, decrees or arbitration awards applicable thereto.

 

(j) Benefit Plans. The Company is not a party to any Benefit Plan under which the Company currently has an obligation to provide benefits to any current or former employee, officer or director of the Company. As used herein, “Benefit Plan” shall mean any employee benefit plan, program, or arrangement of any kind, including any defined benefit or defined contribution plan, ownership plan with respect to any shares, executive compensation program or arrangement, bonus plan, incentive compensation plan or arrangement, profit sharing plan or arrangement, deferred compensation plan, agreement or arrangement, supplemental retirement plan or arrangement, vacation pay, sickness, disability, or death benefit plan (whether provided through insurance, on a funded or unfunded basis, or otherwise), medical or life insurance plan providing benefits to employees, retirees, or former employees or any of their dependents, survivors, or beneficiaries, severance pay, termination, salary continuation, or employee assistance plan.

 

(k) Tax Returns and Tax Payments.

 

(i) The Company has timely filed with the appropriate taxing authorities all Tax Returns required to be filed by it (taking into account all applicable extensions). All such Tax Returns are true, correct and complete in all respects. All Taxes due and owing by the Company has been paid (whether or not shown on any Tax Return and whether or not any Tax Return was required). The Company is not currently the beneficiary of any extension of time within which to file any Tax Return or pay any Tax. No claim has ever been made in writing or otherwise addressed to the Company by a taxing authority in a jurisdiction where the Company does not file Tax Returns that it is or may be subject to taxation by that jurisdiction. The unpaid Taxes of the Company did not, as of the Company Balance Sheet Date, exceed the reserve for Tax liability (excluding any reserve for deferred Taxes established to reflect timing differences between book and Tax income) set forth on the face of the financial statements (rather than in any notes thereto). Since the Company Balance Sheet Date, neither the Company nor any of its subsidiaries has incurred any liability for Taxes outside the ordinary course of business consistent with past custom and practice. As of the Closing Date, the unpaid Taxes of the Company and its subsidiaries will not exceed the reserve for Tax liability (excluding any reserve for deferred Taxes established to reflect timing differences between book and Tax income) set forth on the books and records of the Company.

 

  

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(ii) No material claim for unpaid Taxes has been made or become a lien against the property of the Company or is being asserted against the Company, no audit of any Tax Return of the Company is being conducted by a tax authority, and no extension of the statute of limitations on the assessment of any Taxes has been granted by the Company and is currently in effect. The Company has withheld and paid all Taxes required to have been withheld and paid in connection with amounts paid or owing to any employee, independent contractor, creditor, stockholder or other third party.

 

(iii) As used herein, “Taxes” shall mean all taxes of any kind, including, without limitation, those on or measured by or referred to as income, gross receipts, sales, use, ad valorem, franchise, profits, license, withholding, payroll, employment, excise, severance, stamp, occupation, premium value added, property or windfall profits taxes, customs, duties or similar fees, assessments or charges of any kind whatsoever, together with any interest and any penalties, additions to tax or additional amounts imposed by any governmental authority, domestic or foreign. As used herein, “Tax Return” shall mean any return, report or statement required to be filed with any governmental authority with respect to Taxes.

 

(l) Environmental Matters. The Company is in compliance with all Environmental Laws in all material respects. The Company has not received any written notice regarding any violation of any Environmental Laws, including any investigatory, remedial or corrective obligations. The Company holds all permits and authorizations required under applicable Environmental Laws, unless the failure to hold such permits and authorizations would not have a material adverse effect on the Company. The Company is in compliance with all terms, conditions and provisions of all such permits and authorizations in all material respects. No releases of Hazardous Materials have occurred at, from, in, to, on or under any real property currently or formerly owned, operated or leased by the Company or any predecessor thereof and no Hazardous Materials are present in, on, about or migrating to or from any such property which could result in any liability to the Company. The Company has not transported or arranged for the treatment, storage, handling, disposal, or transportation of any Hazardous Material to any off-site location which could result in any liability to the Company. The Company has no liability, absolute or contingent, under any Environmental Law that if enforced or collected would have a material adverse effect on the Company. There are no past, pending or threatened claims under Environmental Laws against the Company and Company is not aware of any facts or circumstances that could reasonably be expected to result in a liability or claim against the Company pursuant to Environmental Laws. “Environmental Laws” means all applicable foreign, federal, state and local statutes, rules, regulations, ordinances, orders, decrees and common law relating in any manner to contamination, pollution or protection of human health or the environment, and similar state laws. “Hazardous Material” means any toxic, radioactive, corrosive or otherwise hazardous substance, including petroleum, its derivatives, by-products and other hydrocarbons, or any substance having any constituent elements displaying any of the foregoing characteristics, which in any event is regulated under any Environmental Law.

 

  

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(m) Material Contract Defaults. The Company is not, or has not received any notice or has any knowledge that any other party is, in default in any respect under any Material Contract; and there has not occurred any event that with the lapse of time or the giving of notice or both would constitute such a material default. For purposes of this Agreement, a “Material Contract” means any contract, agreement or commitment that is effective as of the Closing Date to which the Company is a party (i) with expected receipts or expenditures in excess of $50,000, (ii) requiring the Company to indemnify any person, (iii) granting exclusive rights to any party, (iv) evidencing indebtedness for borrowed or loaned money in excess of $50,000 or more, including guarantees of such indebtedness, or (v) which, if breached by the Company in such a manner would (A) permit any other party to cancel or terminate the same (with or without notice of passage of time) or (B) provide a basis for any other party to claim money damages (either individually or in the aggregate with all other such claims under that contract) from the Company or (C) give rise to a right of acceleration of any material obligation or loss of any material benefit under any such contract, agreement or commitment.

 

(n) Accounts Receivable. All of the accounts receivable of the Company that are reflected on the Company Financial Statements or the accounting records of the Company as of the Closing (collectively, the “Accounts Receivable”) represent or will represent valid obligations arising from sales actually made or services actually performed in the ordinary course of business and are not subject to any defenses, counterclaims, or rights of set off other than those arising in the ordinary course of business and for which adequate reserves have been established. The Accounts Receivable are fully collectible to the extent not reserved for on the balance sheet on which they are shown.

 

(o) Properties. The Company has valid land use rights for all real property that is material to its business and good, clear and marketable title to all the tangible properties and tangible assets reflected in the latest balance sheet as being owned by the Company or acquired after the date thereof which are, individually or in the aggregate, material to the Company’s business (except properties sold or otherwise disposed of since the date thereof in the ordinary course of business), free and clear of all material liens, encumbrances, claims, security interest, options and restrictions of any nature whatsoever. Any real property and facilities held under lease by the Company is held by it under valid, subsisting and enforceable leases of which the Company is in compliance, except as could not, individually or in the aggregate, have or reasonably be expected to result in a material adverse effect.

 

(p) Intellectual Property.

 

(i) As used in this Agreement, the term “Trademarks” means trademarks, service marks, trade names, internet domain names, designs, slogans, and general intangibles of like nature; the term “Trade Secrets” means technology; trade secrets and other confidential information, know-how, proprietary processes, formulae, algorithms, models, and methodologies; the term “Intellectual Property” means patents, copyrights, Trademarks, applications for any of the foregoing, and Trade Secrets; the term “Company License Agreements” means any license agreements granting any right to use or practice any rights under any Intellectual Property (except for such agreements for off-the-shelf products that are generally available for less than $25,000), and any written settlements relating to any Intellectual Property, to which the Company is a party or otherwise bound; and the term “Software” means any and all computer programs, including any and all software implementations of algorithms, models and methodologies, whether in source code or object code.

 

  

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(ii) The Company owns or has valid rights to use the Trademarks, trade names, domain names, copyrights, patents, logos, licenses and computer software programs (including, without limitation, the source codes thereto) that are necessary for the conduct of its respective businesses as now being conducted. To the knowledge of the Company, none of the Company’s Intellectual Property or Company License Agreements infringe upon the rights of any third party that may give rise to a cause of action or claim against the Company or its successors.

 

(q) Undisclosed Liabilities. The Company has no liabilities or obligations of any nature (whether fixed or unfixed, secured or unsecured, known or unknown and whether absolute, accrued, contingent, or otherwise) except for liabilities or obligations reflected or reserved against in the Company Financial Statements incurred in the ordinary course of business or such liabilities or obligations disclosed in Schedule 2.01(g).

 

(r) Full Disclosure. All of the representations and warranties made by the Company in this Agreement, and all statements set forth in the certificates delivered by the Company at the Closing pursuant to this Agreement, are true, correct and complete in all material respects and do not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make such representations, warranties or statements, in light of the circumstances under which they were made, misleading. The copies of all documents furnished by the Company pursuant to the terms of this Agreement are complete and accurate copies of the original documents. The schedules, certificates, and any and all other statements and information, whether furnished in written or electronic form, to Explore Anywhere Holding Corp. or its representatives by or on behalf of any of the Company or its affiliates in connection with the negotiation of this Agreement and the transactions contemplated hereby do not contain any material misstatement of fact or omit to state a material fact or any fact necessary to make the statements contained therein not misleading.

 

2.02 Representations and Warranties of Explore Anywhere Holding Corp.. Except as set forth in the disclosure schedule delivered by Explore Anywhere Holding Corp. to the Company at the time of execution of this Agreement (the “Explore Anywhere Holding Corp. Disclosure Schedule”), Explore Anywhere Holding Corp. represents and warrants to the Company as follows:

 

(a) Organization, Standing and Corporate Power. Explore Anywhere Holding Corp. is duly organized, validly existing and in good standing under the laws of the State of Nevada and has the requisite corporate power and authority and all government licenses, authorizations, permits, consents and approvals required to own, lease and operate its properties and carry on its business as now being conducted. Explore Anywhere Holding Corp. is duly qualified or licensed to do business and is in good standing in each jurisdiction in which the nature of its business or the ownership or leasing of its properties makes such qualification or licensing necessary, other than in such jurisdictions where the failure to be so qualified or licensed (individually or in the aggregate) would not have a material adverse effect with respect to Explore Anywhere Holding Corp..

 

  

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(b) Subsidiaries. Explore Anywhere Holding Corp. does not own directly or indirectly, any equity or other ownership interest in any company, corporation, partnership, joint venture or otherwise.

 

(c) Capital Structure of Explore Anywhere Holding Corp.. As of the date of this Agreement, the authorized capital stock of Explore Anywhere Holding Corp. consists of 75,000,000 shares of Explore Anywhere Holding Corp. Common Stock, $0.001 par value, of which 8,000,000 shares of Explore Anywhere Holding Corp. Common Stock are issued and outstanding. There are no other shares of Explore Anywhere Holding Corp. stock issuable upon the exercise of outstanding warrants, convertible notes, options and otherwise. Except as set forth above, no shares of capital stock or other equity securities of Explore Anywhere Holding Corp. are issued, reserved for issuance or outstanding. All shares which may be issued pursuant to this Agreement will be, when issued, duly authorized, validly issued, fully paid and nonassessable, not subject to preemptive rights, and issued in compliance with all applicable state and federal laws concerning the issuance of securities.

 

(d) Corporate Authority; Noncontravention. Explore Anywhere Holding Corp. has all requisite corporate and other power and authority to enter into this Agreement and to consummate the transactions contemplated by this Agreement. The execution and delivery of this Agreement by Explore Anywhere Holding Corp. and the consummation by Explore Anywhere Holding Corp. of the transactions contemplated hereby have been (or at Closing will have been) duly authorized by all necessary corporate action on the part of Explore Anywhere Holding Corp.. This Agreement has been duly executed and when delivered by Explore Anywhere Holding Corp. shall constitute a valid and binding obligation of Explore Anywhere Holding Corp., enforceable against Explore Anywhere Holding Corp. in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency or other similar laws affecting the enforcement of creditors’ rights generally or by general principles of equity. The execution and delivery of this Agreement do not, and the consummation of the transactions contemplated by this Agreement and compliance with the provisions hereof will not, conflict with, or result in any breach or violation of, or default (with or without notice or lapse of time, or both) under, or give rise to a right of termination, cancellation or acceleration of or “put” right with respect to any obligation or to loss of a material benefit under, or result in the creation of any lien upon any of the properties or assets of Explore Anywhere Holding Corp. under, (i) its articles of incorporation, bylaws, or other charter documents of Explore Anywhere Holding Corp. (ii) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, instrument, permit, concession, franchise or license applicable to Explore Anywhere Holding Corp., its properties or assets, or (iii) subject to the governmental filings and other matters referred to in the following sentence, any judgment, order, decree, statute, law, ordinance, rule, regulation or arbitration award applicable to Explore Anywhere Holding Corp., its properties or assets, other than, in the case of clauses (ii) and (iii), any such conflicts, breaches, violations, defaults, rights, losses or liens that individually or in the aggregate could not have a material adverse effect with respect to Explore Anywhere Holding Corp. or could not prevent, hinder or materially delay the ability of Explore Anywhere Holding Corp. to consummate the transactions contemplated by this Agreement.

 

(e) Government Authorization. No consent, approval, order or authorization of, or registration, declaration or filing with, or notice to, any Governmental Entity, is required by or with respect to Explore Anywhere Holding Corp. in connection with the execution and delivery of this Agreement by Explore Anywhere Holding Corp., or the consummation by Explore Anywhere Holding Corp. of the transactions contemplated hereby, except, with respect to this Agreement, any filings under the Nevada Statutes, the Securities Act or the Exchange Act.

 

  

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(f) Financial Statements.

 

(i) The consolidated financial statements of Explore Anywhere Holding Corp. included in the reports, schedules, forms, statements and other documents filed by Explore Anywhere Holding Corp. with the SEC (collectively, and in each case including all exhibits and schedules thereto and documents incorporated by reference therein, the “Explore Anywhere Holding Corp. SEC Documents”), such Explore Anywhere Holding Corp. SEC Documents comply as to form in all material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto, have been prepared in accordance with U.S. generally accepted accounting principles (except, in the case of unaudited consolidated quarterly statements, as permitted by Form 10-Q of the SEC) applied on a consistent basis during the periods involved (except as may be indicated in the notes thereto) and fairly present the consolidated financial position of Explore Anywhere Holding Corp. and its consolidated subsidiaries as of the dates thereof and the consolidated results of operations and changes in cash flows for the periods then ended (subject, in the case of unaudited quarterly statements, to normal year-end audit adjustments as determined by Explore Anywhere Holding Corp.’s independent accountants). Except as set forth in the Explore Anywhere Holding Corp. SEC Documents, at the date of the most recent audited financial statements of Explore Anywhere Holding Corp. included in the Explore Anywhere Holding Corp. SEC Documents, Explore Anywhere Holding Corp. has not incurred any liabilities or obligations of any nature (whether accrued, absolute, contingent or otherwise) which, individually or in the aggregate, could reasonably be expected to have a material adverse effect with respect to Explore Anywhere Holding Corp..

 

(g) Absence of Certain Changes or Events. Except as disclosed in the Explore Anywhere Holding Corp. SEC Documents or as set forth on Schedule 2.02(g), since Sept. 30, 2012 (the “Explore Anywhere Holding Corp. Balance Sheet Date”) Explore Anywhere Holding Corp. has conducted its business only in the ordinary course consistent with past practice in light of its current business circumstances, and there is not and has not been any:

 

(i) material adverse change with respect to Explore Anywhere Holding Corp.;

 

(ii) event which, if it had taken place following the execution of this Agreement, would not have been permitted by Section 3.01 without prior consent of the Company;

 

(iii) condition, event or occurrence which could reasonably be expected to prevent, hinder or materially delay the ability of Explore Anywhere Holding Corp. to consummate the transactions contemplated by this Agreement;

 

  

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(iv) incurrence, assumption or guarantee by Explore Anywhere Holding Corp. of any indebtedness for borrowed money other than in the ordinary course and in amounts and on terms consistent with past practices or as disclosed to the Company in writing;

 

(v) creation or other incurrence by Explore Anywhere Holding Corp. of any lien on any asset other than in the ordinary course consistent with past practices;

 

(vi) transaction or commitment made, or any contract or agreement entered into, by Explore Anywhere Holding Corp. relating to its assets or business (including the acquisition or disposition of any assets) or any relinquishment by Explore Anywhere Holding Corp. of any contract or other right, in either case, material to Explore Anywhere Holding Corp., other than transactions and commitments in the ordinary course consistent with past practices and those contemplated by this Agreement;

 

(vii) labor dispute, other than routine, individual grievances, or, to the knowledge of Explore Anywhere Holding Corp., any activity or proceeding by a labor union or representative thereof to organize any employees of Explore Anywhere Holding Corp. or any lockouts, strikes, slowdowns, work stoppages or threats by or with respect to such employees;

 

(viii) payment, prepayment or discharge of liability other than in the ordinary course of business or any failure to pay any liability when due;

 

(ix) write-offs or write-downs of any assets of Explore Anywhere Holding Corp.;

 

(x) creation, termination or amendment of, or waiver of any right under, any material contract of Explore Anywhere Holding Corp.;

 

(xi) damage, destruction or loss having, or reasonably expected to have, a material adverse effect on Explore Anywhere Holding Corp.;

 

(xii) other condition, event or occurrence which individually or in the aggregate could reasonably be expected to have a material adverse effect or give rise to a material adverse change with respect to Explore Anywhere Holding Corp.; or

 

(xiii) agreement or commitment to do any of the foregoing.

 

(h) Certain Fees. Except as set forth on Schedule 2.02(h), no brokerage or finder’s fees or commissions are or will be payable by Explore Anywhere Holding Corp. to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other person with respect to the transactions contemplated by this Agreement.

 

(i) Litigation; Labor Matters; Compliance with Laws

 

(i) There is no suit, action or proceeding or investigation pending or, to the knowledge of Explore Anywhere Holding Corp., threatened against or affecting Explore Anywhere Holding Corp. or any basis for any such suit, action, proceeding or investigation that, individually or in the aggregate, could reasonably be expected to have a material adverse effect with respect to Explore Anywhere Holding Corp. or prevent, hinder or materially delay the ability of Explore Anywhere Holding Corp. to consummate the transactions contemplated by this Agreement, nor is there any judgment, decree, injunction, rule or order of any Governmental Entity or arbitrator outstanding against Explore Anywhere Holding Corp. having, or which, insofar as reasonably could be foreseen by Explore Anywhere Holding Corp., in the future could have, any such effect.

 

  

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(ii) Explore Anywhere Holding Corp. is not a party to, or bound by, any collective bargaining agreement, contract or other agreement or understanding with a labor union or labor organization, nor is it the subject of any proceeding asserting that it has committed an unfair labor practice or seeking to compel it to bargain with any labor organization as to wages or conditions of employment nor is there any strike, work stoppage or other labor dispute involving it pending or, to its knowledge, threatened, any of which could have a material adverse effect with respect to Explore Anywhere Holding Corp..

 

(iii) The conduct of the business of Explore Anywhere Holding Corp. complies with all statutes, laws, regulations, ordinances, rules, judgments, orders, decrees or arbitration awards applicable thereto.

 

(j) Benefit Plans. Explore Anywhere Holding Corp. is not a party to any Benefit Plan under which Explore Anywhere Holding Corp. currently has an obligation to provide benefits to any current or former employee, officer or director of Explore Anywhere Holding Corp..

 

(k) Certain Employee Payments. Explore Anywhere Holding Corp. is not a party to any employment agreement which could result in the payment to any current, former or future director or employee of Explore Anywhere Holding Corp. of any money or other property or rights or accelerate or provide any other rights or benefits to any such employee or director as a result of the transactions contemplated by this Agreement, whether or not (i) such payment, acceleration or provision would constitute a “parachute payment” (within the meaning of Section 280G of the Code), or (ii) some other subsequent action or event would be required to cause such payment, acceleration or provision to be triggered.

 

(l) Tax Returns and Tax Payments.

 

(i) Explore Anywhere Holding Corp. has timely filed with the appropriate taxing authorities all Tax Returns required to be filed by it (taking into account all applicable extensions). All such Tax Returns are true, correct and complete in all respects. All Taxes due and owing by Explore Anywhere Holding Corp. has been paid (whether or not shown on any Tax Return and whether or not any Tax Return was required). Explore Anywhere Holding Corp. is not currently the beneficiary of any extension of time within which to file any Tax Return or pay any Tax. No claim has ever been made in writing or otherwise addressed to Explore Anywhere Holding Corp. by a taxing authority in a jurisdiction where Explore Anywhere Holding Corp. does not file Tax Returns that it is or may be subject to taxation by that jurisdiction. The unpaid Taxes of Explore Anywhere Holding Corp. did not, as of the Explore Anywhere Holding Corp. Balance Sheet Date, exceed the reserve for Tax liability (excluding any reserve for deferred Taxes established to reflect timing differences between book and Tax income) set forth on the face of the financial statements (rather than in any notes thereto). Since the Explore Anywhere Holding Corp. Balance Sheet Date, neither the Company nor any of its subsidiaries has incurred any liability for Taxes outside the ordinary course of business consistent with past custom and practice. As of the Closing Date, the unpaid Taxes of Explore Anywhere Holding Corp. and its subsidiaries will not exceed the reserve for Tax liability (excluding any reserve for deferred Taxes established to reflect timing differences between book and Tax income) set forth on the books and records of Explore Anywhere Holding Corp..

 

  

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(ii) No material claim for unpaid Taxes has been made or become a lien against the property of Explore Anywhere Holding Corp. or is being asserted against Explore Anywhere Holding Corp., no audit of any Tax Return of Explore Anywhere Holding Corp. is being conducted by a tax authority, and no extension of the statute of limitations on the assessment of any Taxes has been granted by Explore Anywhere Holding Corp. and is currently in effect. Explore Anywhere Holding Corp. has withheld and paid all Taxes required to have been withheld and paid in connection with amounts paid or owing to any employee, independent contractor, creditor, stockholder or other third party.

 

(m) Environmental Matters. Explore Anywhere Holding Corp. is in compliance with all Environmental Laws in all material respects. Explore Anywhere Holding Corp. holds all permits and authorizations required under applicable Environmental Laws, unless the failure to hold such permits and authorizations would not have a material adverse effect on Explore Anywhere Holding Corp.. Explore Anywhere Holding Corp. is compliance with all terms, conditions and provisions of all such permits and authorizations in all material respects. No releases of Hazardous Materials have occurred at, from, in, to, on or under any real property currently or formerly owned, operated or leased by Explore Anywhere Holding Corp. or any predecessor thereof and no Hazardous Materials are present in, on, about or migrating to or from any such property which could result in any liability to Explore Anywhere Holding Corp.. Explore Anywhere Holding Corp. has not transported or arranged for the treatment, storage, handling, disposal, or transportation of any Hazardous Material to any off-site location which could result in any liability to Explore Anywhere Holding Corp.. Explore Anywhere Holding Corp. has no liability, absolute or contingent, under any Environmental Law that if enforced or collected would have a material adverse effect on Explore Anywhere Holding Corp.. There are no past, pending or threatened claims under Environmental Laws against Explore Anywhere Holding Corp. and Explore Anywhere Holding Corp. is not aware of any facts or circumstances that could reasonably be expected to result in a liability or claim against Explore Anywhere Holding Corp. pursuant to Environmental Laws.

 

(n) Material Contract Defaults. Explore Anywhere Holding Corp. is not, or has not, received any notice or has any knowledge that any other party is, in default in any respect under any Explore Anywhere Holding Corp. Material Contract; and there has not occurred any event that with the lapse of time or the giving of notice or both would constitute such a material default. For purposes of this Agreement, a “Explore Anywhere Holding Corp. Material Contract” means any contract, agreement or commitment that is effective as of the Closing Date to which Explore Anywhere Holding Corp. is a party (i) with expected receipts or expenditures in excess of $5,000, (ii) requiring Explore Anywhere Holding Corp. to indemnify any person, (iii) granting exclusive rights to any party, (iv) evidencing indebtedness for borrowed or loaned money in excess of $5,000 or more, including guarantees of such indebtedness, or (v) which, if breached by Explore Anywhere Holding Corp. in such a manner would (A) permit any other party to cancel or terminate the same (with or without notice of passage of time) or (B) provide a basis for any other party to claim money damages (either individually or in the aggregate with all other such claims under that contract) from Explore Anywhere Holding Corp. or (C) give rise to a right of acceleration of any material obligation or loss of any material benefit under any such contract, agreement or commitment.

 

  

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(o) Properties. Explore Anywhere Holding Corp. has valid land use rights for all real property that is material to its business and good, clear and marketable title to all the tangible properties and tangible assets reflected in the latest balance sheet as being owned by Explore Anywhere Holding Corp. or acquired after the date thereof which are, individually or in the aggregate, material to Explore Anywhere Holding Corp.’s business (except properties sold or otherwise disposed of since the date thereof in the ordinary course of business), free and clear of all material liens, encumbrances, claims, security interest, options and restrictions of any nature whatsoever. Any real property and facilities held under lease by Explore Anywhere Holding Corp. are held by them under valid, subsisting and enforceable leases of which Explore Anywhere Holding Corp. is in compliance, except as could not, individually or in the aggregate, have or reasonably be expected to result in a material adverse effect.

 

(p) Intellectual Property. Explore Anywhere Holding Corp. owns or has valid rights to use the Trademarks, trade names, domain names, copyrights, patents, logos, licenses and computer software programs (including, without limitation, the source codes thereto) that are necessary for the conduct of its business as now being conducted. All of Explore Anywhere Holding Corp.’s licenses to use Software programs are current and have been paid for the appropriate number of users. To the knowledge of Explore Anywhere Holding Corp., none of Explore Anywhere Holding Corp.’s Intellectual Property or Explore Anywhere Holding Corp. License Agreements infringe upon the rights of any third party that may give rise to a cause of action or claim against Explore Anywhere Holding Corp. or its successors.

 

(q) Board Determination. The Board of Directors of Explore Anywhere Holding Corp. has unanimously determined that the terms of the Exchange are fair to and in the best interests of Explore Anywhere Holding Corp. and its stockholders.

 

(r) Required Explore Anywhere Holding Corp. Share Issuance Approval. Explore Anywhere Holding Corp. represents that the issuance of the Exchange Shares to the Selling Member will be in compliance with the Nevada Statutes and the Bylaws of Explore Anywhere Holding Corp..

 

(s) Undisclosed Liabilities. Explore Anywhere Holding Corp. has no liabilities or obligations of any nature (whether fixed or unfixed, secured or unsecured, known or unknown and whether absolute, accrued, contingent, or otherwise) except for liabilities or obligations reflected or reserved against in the Explore Anywhere Holding Corp. SEC Documents incurred in the ordinary course of business.

 

  

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(t) Full Disclosure. All of the representations and warranties made by Explore Anywhere Holding Corp. in this Agreement, and all statements set forth in the certificates delivered by Explore Anywhere Holding Corp. at the Closing pursuant to this Agreement, are true, correct and complete in all material respects and do not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make such representations, warranties or statements, in light of the circumstances under which they were made, misleading. The copies of all documents furnished by Explore Anywhere Holding Corp. pursuant to the terms of this Agreement are complete and accurate copies of the original documents. The schedules, certificates, and any and all other statements and information, whether furnished in written or electronic form, to the Company or its representatives by or on behalf of Explore Anywhere Holding Corp. and the Explore Anywhere Holding Corp. Stockholders in connection with the negotiation of this Agreement and the transactions contemplated hereby do not contain any material misstatement of fact or omit to state a material fact or any fact necessary to make the statements contained therein not misleading.

 

ARTICLE III

COVENANTS RELATING TO CONDUCT OF BUSINESS PRIOR TO EXCHANGE

 

3.01 Conduct of the Company and Explore Anywhere Holding Corp.. From the date of this Agreement and until the Effective Time, or until the prior termination of this Agreement, the Company and Explore Anywhere Holding Corp. shall not, unless mutually agreed to in writing:

 

(a) engage in any transaction, except in the normal and ordinary course of business, or create or suffer to exist any lien or other encumbrance upon any of their respective assets or which will not be discharged in full prior to the Effective Time;

 

(b) sell, assign or otherwise transfer any of their assets, or cancel or compromise any debts or claims relating to their assets, other than for fair value, in the ordinary course of business, and consistent with past practice;

 

(c) fail to use reasonable efforts to preserve intact their present business organizations, keep available the services of their employees and preserve its material relationships with customers, suppliers, licensors, licensees, distributors and others, to the end that its good will and ongoing business not be impaired prior to the Effective Time;

 

(d) except for matters related to complaints by former employees related to wages, suffer or permit any material adverse change to occur with respect to the Company and Explore Anywhere Holding Corp. or their business or assets; or

 

(e) make any material change with respect to their business in accounting or bookkeeping methods, principles or practices, except as required by GAAP.

 

  

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ARTICLE IV

ADDITIONAL AGREEMENTS

 

4.01 Access to Information; Confidentiality.

 

(a) The Company shall, and shall cause its officers, employees, counsel, financial advisors and other representatives to, afford to Explore Anywhere Holding Corp. and its representatives reasonable access during normal business hours during the period prior to the Effective Time to its and to the Company’s properties, books, contracts, commitments, personnel and records and, during such period, the Company shall, and shall cause its officers, employees and representatives to, furnish promptly to Explore Anywhere Holding Corp. all information concerning its business, properties, financial condition, operations and personnel as such other party may from time to time reasonably request. For the purposes of determining the accuracy of the representations and warranties of Explore Anywhere Holding Corp. set forth herein and compliance by Explore Anywhere Holding Corp. of its obligations hereunder, during the period prior to the Effective Time, Explore Anywhere Holding Corp. shall provide the Company and its representatives with reasonable access during normal business hours to its properties, books, contracts, commitments, personnel and records as may be necessary to enable the Company to confirm the accuracy of the representations and warranties of Explore Anywhere Holding Corp. set forth herein and compliance by Explore Anywhere Holding Corp. of its obligations hereunder, and, during such period, Explore Anywhere Holding Corp. shall, and shall cause its officers, employees and representatives to, furnish promptly to the Company upon its request (i) a copy of each report, schedule, registration statement and other document filed by it during such period pursuant to the requirements of federal or state securities laws and (ii) all other information concerning its business, properties, financial condition, operations and personnel as such other party may from time to time reasonably request. Except as required by law, each of the Company and Explore Anywhere Holding Corp. will hold, and will cause its respective directors, officers, employees, accountants, counsel, financial advisors and other representatives and affiliates to hold, any nonpublic information in confidence.

 

(b) No investigation pursuant to this Section 4.01 shall affect any representations or warranties of the Parties herein or the conditions to the obligations of the Parties hereto.

 

4.02 Best Efforts. Upon the terms and subject to the conditions set forth in this Agreement, each of the Parties agrees to use its best efforts to take, or cause to be taken, all actions, and to do, or cause to be done, and to assist and cooperate with the other Parties in doing, all things necessary, proper or advisable to consummate and make effective, in the most expeditious manner practicable, the Exchange and the other transactions contemplated by this Agreement. Explore Anywhere Holding Corp. and the Company shall mutually cooperate in order to facilitate the achievement of the benefits reasonably anticipated from the Exchange.

 

4.03 Public Announcements. Explore Anywhere Holding Corp., on the one hand, and the Company, on the other hand, will consult with each other before issuing, and provide each other the opportunity to review and comment upon, any press release or other public statements with respect to the transactions contemplated by this Agreement and shall not issue any such press release or make any such public statement prior to such consultation, except as may be required by applicable law or court process. The Parties agree that the initial press release or releases to be issued with respect to the transactions contemplated by this Agreement shall be mutually agreed upon prior to the issuance thereof.

 

  

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4.04 Expenses. All costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such expenses.

 

4.05 No Solicitation. Except as previously agreed to in writing by the other party, neither the Company nor Explore Anywhere Holding Corp. shall authorize or permit any of its officers, directors, agents, representatives, or advisors to (a) solicit, initiate or encourage or take any action to facilitate the submission of inquiries, proposals or offers from any person relating to any matter concerning any exchange, merger, consolidation, business combination, recapitalization or similar transaction involving the Company or Explore Anywhere Holding Corp., respectively, other than the transaction contemplated by this Agreement or any other transaction the consummation of which would or could reasonably be expected to impede, interfere with, prevent or delay the Exchange or which would or could be expected to dilute the benefits to either the Company or Explore Anywhere Holding Corp. of the transactions contemplated hereby. The Company or Explore Anywhere Holding Corp. will immediately cease and cause to be terminated any existing activities, discussions and negotiations with any Parties conducted heretofore with respect to any of the foregoing.

 

ARTICLE V

CONDITIONS PRECEDENT

 

5.01 Conditions to Each Party’s Obligation to Effect the Exchange. The obligation of each Party to effect the Exchange and otherwise consummate the transactions contemplated by this Agreement is subject to the satisfaction, at or prior to the Closing, of each of the following conditions:

 

(a) No Restraints. No temporary restraining order, preliminary or permanent injunction or other order preventing the consummation of the Exchange shall have been issued by any court of competent jurisdiction or any other Governmental Entity having jurisdiction and shall remain in effect, and there shall not be any applicable legal requirement enacted, adopted or deemed applicable to the Exchange that makes consummation of the Exchange illegal.

 

(b) Governmental Approvals. All authorizations, consents, orders, declarations or approvals of, or filings with, or terminations or expirations of waiting periods imposed by, any Governmental Entity having jurisdiction which the failure to obtain, make or occur would have a material adverse effect on Explore Anywhere Holding Corp. or the Company shall have been obtained, made or occurred.

 

(c)  No Litigation. There shall not be pending or threatened any suit, action or proceeding before any court, Governmental Entity or authority (i) pertaining to the transactions contemplated by this Agreement or (ii) seeking to prohibit or limit the ownership or operation by the Company, Explore Anywhere Holding Corp. or any of its subsidiaries, or to dispose of or hold separate any material portion of the business or assets of the Company or Explore Anywhere Holding Corp..

 

  

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5.02 Conditions Precedent to Obligations of Explore Anywhere Holding Corp.. The obligation of Explore Anywhere Holding Corp. to effect the Exchange and otherwise consummate the transactions contemplated by this Agreement are subject to the satisfaction, at or prior to the Closing, of each of the following conditions:

 

(a) Representations, Warranties and Covenants. The representations and warranties of the Company in this Agreement shall be true and correct in all material respects (except for such representations and warranties that are qualified by their terms by a reference to materiality or material adverse effect, which representations and warranties as so qualified shall be true and correct in all respects) both when made and on and as of the Closing Date, and (ii) the Company shall have performed and complied in all material respects with all covenants, obligations and conditions of this Agreement required to be performed and complied with by each of them prior to the Effective Time.

 

(b) Consents. Explore Anywhere Holding Corp. shall have received evidence, in form and substance reasonably satisfactory to it, that such licenses, permits, consents, approvals, authorizations, qualifications and orders of governmental authorities and other third Parties as necessary in connection with the transactions contemplated hereby have been obtained.

 

(c) No Material Adverse Change. There shall not have occurred any change in the business, condition (financial or otherwise), results of operations or assets (including intangible assets) and properties of the Company that, individually or in the aggregate, could reasonably be expected to have a material adverse effect on the Company.

 

(d) Delivery of the Assignment of Ownership Interest. The selling shareholders shall have delivered the share certificates to Explore Anywhere Holding Corp. on the Closing Date.

 

(e) Due Diligence Investigation. Explore Anywhere Holding Corp. shall be reasonably satisfied with the results of its due diligence investigation of the Company in its sole and absolute discretion.

 

5.03 Conditions Precedent to Obligation of the Company. The obligation of the Company to effect the Exchange and otherwise consummate the transactions contemplated by this Agreement is subject to the satisfaction, at or prior to the Closing, of each of the following conditions:

 

(a) Representations, Warranties and Covenants. The representations and warranties of Explore Anywhere Holding Corp. in this Agreement shall be true and correct in all material respects (except for such representations and warranties that are qualified by their terms by a reference to materiality or material adverse effect, which representations and warranties as so qualified shall be true and correct in all respects) both when made and on and as of the Closing Date, and (ii) Explore Anywhere Holding Corp. shall have performed and complied in all material respects with all covenants, obligations and conditions of this Agreement required to be performed and complied with by it prior to the Effective Time.

 

  

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(b) Consents. The Company shall have received evidence, in form and substance reasonably satisfactory to it, that such licenses, permits, consents, approvals, authorizations, qualifications and orders of governmental authorities and other third Parties as necessary in connection with the transactions contemplated hereby have been obtained.

 

(c) No Material Adverse Change. There shall not have occurred any change in the business, condition (financial or otherwise), results of operations or assets (including intangible assets) and properties of Explore Anywhere Holding Corp. that, individually or in the aggregate, could reasonably be expected to have a material adverse effect on Explore Anywhere Holding Corp..

 

(d) Board Resolutions. The Company shall have received resolutions duly adopted by Explore Anywhere Holding Corp.’s board of directors approving the execution, delivery and performance of the Agreement and the transactions contemplated by the Agreement.

 

(e) Resignations. The current officers and directors of Explore Anywhere Holding Corp. shall appoint Vaughan Lazar and Randy Ramano to all officer and director positions and tender their resignations at the time of the closing.

 

(f) Delivery of the Exchange Shares Certificate. The Company shall have received the Exchange Shares Certificate on the Closing Date.

 

(g) Current Report. Explore Anywhere Holding Corp. shall file a Form 8-K with the SEC within four (4) business days of the Closing Date containing information about the Exchange.

 

(h) Due Diligence Investigation. The Company shall be reasonably satisfied with the results of its due diligence investigation of Explore Anywhere Holding Corp. in its sole and absolute discretion.

 

ARTICLE VI

TERMINATION, AMENDMENT AND WAIVER

 

6.01 Termination. This Agreement may be terminated and abandoned at any time prior to the Effective Time of the Exchange:

 

(a) by mutual written consent of Explore Anywhere Holding Corp. and the Company;

 

(b) by either Explore Anywhere Holding Corp. or the Company if any Governmental Entity shall have issued an order, decree or ruling or taken any other action permanently enjoining, restraining or otherwise prohibiting the Exchange and such order, decree, ruling or other action shall have become final and nonappealable;

 

  

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(c) by either Explore Anywhere Holding Corp. or the Company if the Exchange shall not have been consummated on or before June 28, 2013 (other than as a result of the failure of the party seeking to terminate this Agreement to perform its obligations under this Agreement required to be performed at or prior to the Effective Time.);

 

(d) by Explore Anywhere Holding Corp., if a material adverse change shall have occurred relative to the Company (and not curable within thirty (30) days);

 

(e) by the Company if a material adverse change shall have occurred relative to Explore Anywhere Holding Corp. (and not curable within thirty (30) days);

 

(f) by Explore Anywhere Holding Corp., if the Company willfully fails to perform in any material respect any of its material obligations under this Agreement; or

 

(g) by the Company, if Explore Anywhere Holding Corp. willfully fails to perform in any material respect any of its obligations under this Agreement.

 

6.02 Effect of Termination. In the event of termination of this Agreement by either the Company or Explore Anywhere Holding Corp. as provided in Section 6.01, this Agreement shall forthwith become void and have no effect, without any liability or obligation on the part of Explore Anywhere Holding Corp. or the Company, other than the provisions of the last sentence of Section 4.01(a) and this Section 6.02. Nothing contained in this Section shall relieve any party for any breach of the representations, warranties, covenants or agreements set forth in this Agreement.

 

6.03 Amendment. This Agreement may not be amended except by an instrument in writing signed on behalf of each of the Parties upon approval by the party, if such party is an individual, and upon approval of the Board of Director of Explore Anywhere Holding Corp. and of the Company.

 

6.04 Extension; Waiver. Subject to Section 6.01(c), at any time prior to the Effective Time, the Parties may (a) extend the time for the performance of any of the obligations or other acts of the other Parties, (b) waive any inaccuracies in the representations and warranties contained in this Agreement or in any document delivered pursuant to this Agreement, or (c) waive compliance with any of the agreements or conditions contained in this Agreement. Any agreement on the part of a party to any such extension or waiver shall be valid only if set forth in an instrument in writing signed on behalf of such party. The failure of any party to this Agreement to assert any of its rights under this Agreement or otherwise shall not constitute a waiver of such rights.

 

6.05 Return of Documents. In the event of termination of this Agreement for any reason, Explore Anywhere Holding Corp. and the Company will return to the other party all of the other party’s documents, work papers, and other materials (including copies) relating to the transactions contemplated in this Agreement, whether obtained before or after execution of this Agreement. Explore Anywhere Holding Corp. and the Company will not use any information so obtained from the other party for any purpose and will take all reasonable steps to have such other party’s information kept confidential.

 

  

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ARTICLE VII

INDEMNIFICATION AND RELATED MATTERS

 

7.01 Survival of Representations and Warranties. The representations and warranties in this Agreement or in any instrument delivered pursuant to this Agreement shall survive until twelve (12) months after the Effective Time (except for with respect to Taxes, which shall survive for the applicable statute of limitations plus 90 days, and covenants that by their terms survive for a longer period).

 

7.02 Indemnification.

 

(a) Explore Anywhere Holding Corp. shall indemnify and hold the selling shareholders and the Company harmless for, from and against any and all liabilities, obligations, damages, losses, deficiencies, costs, penalties, interest and expenses (including, but not limited to, any and all expenses whatsoever reasonably incurred in investigating, preparing or defending against any litigation, commenced or threatened, or any claim whatsoever) (collectively, “Losses”) to which Explore Anywhere Holding Corp. may become subject resulting from or arising out of any breach of a representation, warranty or covenant made by Explore Anywhere Holding Corp. as set forth herein.

 

(b) The Company and selling shareholders shall jointly indemnify and hold Explore Anywhere Holding Corp. and Explore Anywhere Holding Corp.’s officers and directors (“Explore Anywhere Holding Corp.’s Representatives”) harmless for, from and against any and all Losses to which Explore Anywhere Holding Corp. or Explore Anywhere Holding Corp.’s Representatives may become subject resulting from or arising out of (1) any breach of a representation, warranty or covenant made by the Company as set forth herein; or (2) any and all liabilities arising out of or in connection with: (A) any of the assets of the Company prior to the Closing; or (B) the operations of the Company prior to the Closing.

 

7.03 Notice of Indemnification. Promptly after the receipt by any indemnified party (the “Indemnitee”) of notice of the commencement of any action or proceeding against such Indemnitee, such Indemnitee shall, if a claim with respect thereto is or may be made against any indemnifying party (the “Indemnifying Party”) pursuant to this Article VII, give such Indemnifying Party written notice of the commencement of such action or proceeding and give such Indemnifying Party a copy of such claim and/or process and all legal pleadings in connection therewith. The failure to give such notice shall not relieve any Indemnifying Party of any of its indemnification obligations contained in this Article VII, except where, and solely to the extent that, such failure actually and materially prejudices the rights of such Indemnifying Party. Such Indemnifying Party shall have, upon request within thirty (30) days after receipt of such notice, but not in any event after the settlement or compromise of such claim, the right to defend, at its own expense and by its own counsel reasonably acceptable to the Indemnitee, any such matter involving the asserted liability of the Indemnitee; provided, however, that if the Indemnitee determines that there is a reasonable probability that a claim may materially and adversely affect it, other than solely as a result of money payments required to be reimbursed in full by such Indemnifying Party under this Article VII or if a conflict of interest exists between Indemnitee and the Indemnifying Party, the Indemnitee shall have the right to defend, compromise or settle such claim or suit; and, provided, further, that such settlement or compromise shall not, unless consented to in writing by such Indemnifying Party, which shall not be unreasonably withheld, be conclusive as to the liability of such Indemnifying Party to the Indemnitee. In any event, the Indemnitee, such Indemnifying Party and its counsel shall cooperate in the defense against, or compromise of, any such asserted liability, and in cases where the Indemnifying Party shall have assumed the defense, the Indemnitee shall have the right to participate in the defense of such asserted liability at the Indemnitee’s own expense. In the event that such Indemnifying Party shall decline to participate in or assume the defense of such action, prior to paying or settling any claim against which such Indemnifying Party is, or may be, obligated under this Article VII to indemnify an Indemnitee, the Indemnitee shall first supply such Indemnifying Party with a copy of a final court judgment or decree holding the Indemnitee liable on such claim or, failing such judgment or decree, the terms and conditions of the settlement or compromise of such claim. An Indemnitee’s failure to supply such final court judgment or decree or the terms and conditions of a settlement or compromise to such Indemnifying Party shall not relieve such Indemnifying Party of any of its indemnification obligations contained in this Article VII, except where, and solely to the extent that, such failure actually and materially prejudices the rights of such Indemnifying Party. If the Indemnifying Party is defending the claim as set forth above, the Indemnifying Party shall have the right to settle the claim only with the consent of the Indemnitee.

 

  

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ARTICLE VIII

GENERAL PROVISIONS

 

8.01 Notices. Any and all notices and other communications hereunder shall be in writing and shall be deemed duly given to the party to whom the same is so delivered, sent or mailed at addresses and contact information set forth below (or at such other address for a party as shall be specified by like notice.) Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be deemed given and effective on the earliest of: (a) on the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto prior to 5:30 p.m. (Pacific Standard Time) on a business day, (b) on the next business day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto on a day that is not a business day or later than 5:30 p.m. (Pacific Standard Time) on any business day, (c) on the second business day following the date of mailing, if sent by a nationally recognized overnight courier service, or (d) if by personal delivery, upon actual receipt by the party to whom such notice is required to be given.

 

If to Explore Anywhere Holding Corp.:

1 Tara Boulevard, Suite 200

Nashua, NH 03062

If to the Company:

____________________

___________________

 

  

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8.02 Definitions. For purposes of this Agreement:

 

(a) an “affiliate” of any person means another person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such first person;

 

(b) “material adverse change” or “material adverse effect” means, when used in connection with the Company or Explore Anywhere Holding Corp., any change or effect that either individually or in the aggregate with all other such changes or effects is materially adverse to the business, assets, properties, condition (financial or otherwise) or results of operations of such party and its subsidiaries taken as a whole (after giving effect in the case of Explore Anywhere Holding Corp. to the consummation of the Exchange);

 

(c) “person” means an individual, corporation, partnership, joint venture, association, trust, unincorporated organization or other entity; and (d) a “subsidiary” of any person means another person, an amount of the voting securities, other voting ownership or voting partnership interests of which is sufficient to elect at least a majority of its board of Directors or other governing body (or, if there are no such voting interests, fifty percent (50%) or more of the equity interests of which) is owned directly or indirectly by such first person.

 

8.03 Interpretation. When a reference is made in this Agreement to a Section, Exhibit or Schedule, such reference shall be to a Section of, or an Exhibit or Schedule to, this Agreement unless otherwise indicated. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Whenever the words “include”, “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation”.

 

8.04 Entire Agreement; No Third-Party Beneficiaries. This Agreement and the other agreements referred to herein constitute the entire agreement, and supersede all prior agreements and understandings, both written and oral, among the Parties with respect to the subject matter of this Agreement. This Agreement is not intended to confer upon any person other than the Parties any rights or remedies.

 

8.05 Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Nevada, regardless of the laws that might otherwise govern under applicable principles of conflicts of laws thereof.

 

8.06 Assignment. Neither this Agreement nor any of the rights, interests or obligations under this Agreement shall be assigned, in whole or in part, by operation of law or otherwise by any of the Parties without the prior written consent of the other Parties. Subject to the preceding sentence, this Agreement will be binding upon, inure to the benefit of, and be enforceable by, the Parties and their respective successors and assigns.

 

  

24

  

 

8.07 Enforcement. The Parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the Parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement in any court of the United States located in the State of Nevada, this being in addition to any other remedy to which they are entitled at law or in equity. In addition, each of the Parties hereto (a) agrees that it will not attempt to deny or defeat such personal jurisdiction or venue by motion or other request for leave from any such court, and (b) agrees that it will not bring any action relating to this Agreement or any of the transactions contemplated by this Agreement in any state court other than such court.

 

8.08 Severability. Whenever possible, each provision or portion of any provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law but if any provision or portion of any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or portion of any provision in such jurisdiction, and this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision or portion of any provision had never been contained herein.

 

8.09 Counterparts. This Agreement may be executed simultaneously in two or more counterparts, any one of which need not contain the signatures of more than one party, but all such counterparts taken together will constitute one and the same Agreement. This Agreement, to the extent delivered by means of a facsimile machine or electronic mail (any such delivery, an “Electronic Delivery”), shall be treated in all manner and respects as an original agreement or instrument and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person. At the request of any party hereto, each other party hereto shall re-execute original forms hereof and deliver them in person to all other Parties. No party hereto shall raise the use of Electronic Delivery to deliver a signature or the fact that any signature or agreement or instrument was transmitted or communicated through the use of Electronic Delivery as a defense to the formation of a contract, and each such party forever waives any such defense, except to the extent such defense related to lack of authenticity.

 

8.10 Attorneys Fees. In the event any suit or other legal proceeding is brought for the enforcement of any of the provisions of this Agreement, the Parties hereto agree that the prevailing party or Parties shall be entitled to recover from the other party or Parties upon final judgment on the merits reasonable attorneys’ fees, including attorneys’ fees for any appeal, and costs incurred in bringing such suit or proceeding.

 

8.11 Currency. All references to currency in this Agreement shall refer to the lawful currency of the United States of America.

 

[Signature Page Follows]

 

  

25

  

 

IN WITNESS WHEREOF, the undersigned have caused their duly authorized officers to execute this Agreement as of the date first above written.

 

	 	
Explore Anywhere Holding Corp.

	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	Bryan Hammond,	 
	 	 	President and CEO	 

 

	 	
Sponsor Me, Inc.

	 
	 	 	 	 
	 	
By: 

	 	 
	 	 	Brenden Garrison, 	 
	 	 	President and CEO	 

 

 

26EXHIBIT 10.1

 

Exhibit 10.1

 

DIGITAL ALLY, INC.

2013 STOCK OPTION
AND RESTRICTED STOCK PLAN

 

1. PURPOSES.

 

(a) Background.
This 2013 Stock Option and Restricted Stock Plan was adopted on March 22, 2013 by the Board of Directors, subject to the approval
of the Company’s stockholders. Options granted under the Plan prior to the stockholders’ approval will be effective
upon approval of the stockholders as of their respective dates of grant.

 

(b) Eligible Award
Recipients. The persons eligible to receive Awards are the Employees and Directors of the Company and its Affiliates.

 

(c) Available Awards.
The purpose of the Plan is to provide a means by which eligible recipients may be given an opportunity to benefit from increases
in value of the Common Stock through the granting of the following: (i) Incentive Stock Options, (ii) Nonqualified Stock Options,
(iii) rights to acquire restricted stock, and (iv) stock appreciation rights.

 

(d) General Purpose.
The Company, by means of the Plan, seeks to retain the services of the group of persons eligible to receive Awards, to secure and
retain the services of new members of this group and to provide incentives for such persons to exert maximum efforts for the success
of the Company and its Affiliates.

 

2. DEFINITIONS. 

 

(a) “Affiliate”
means any entity that controls, is controlled by, or is under common control with the Company.

 

(b) “Award”
means any right granted under the Plan, including an Option, a right to acquire restricted Common Stock, and a stock appreciation
right.

 

(c) “Award
Agreement” means a written agreement between the Company and a holder of an Award (other than an Option) evidencing
the terms and conditions of an individual Award grant.

 

(d) “Board”
means the board of directors of the Company.

 

(e) “Code”
means the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder.

 

(f) “Committee”
means a pre-existing or newly formed committee of members of the Board appointed by the Board in accordance with subsection 3(c).

 

(g) “Common
Stock” means the shares of the Company’s common stock par value $0.001 and other rights with respect to such
shares.

 

    	 

    	 

    

 

(h) “Company”
means Digital Ally, Inc., a Nevada corporation.

 

(i) “Continuous
Service” means that the Participant’s service with the Company or an Affiliate, whether as an Employee or Director
is not interrupted or terminated. Unless otherwise provided in an Award Agreement or Option Agreement, as applicable, the Participant’s
Continuous Service shall not be deemed to have terminated merely because of a change in the capacity in which the Participant renders
service to the Company or an Affiliate as an Employee or Director or a change in the entity for which the Participant renders such
service, provided that there is no interruption or termination of the Participant’s service to the Company or an Affiliate
as an Employee or Director. The Board, in its sole discretion, may determine whether Continuous Service shall be considered interrupted
in the case of any leave of absence, including sick leave, military leave or any other personal leave.

 

(j) “Covered
Employee” means the Company’s chief executive officer and the four (4) other highest compensated officers of
the Company for whom total compensation is required to be reported to stockholders under the Exchange Act, as determined for purposes
of Section 162(m) of the Code.

 

(k) “Director”
means a member of the Board of the Company.

 

(l) “Disability”
means the Participant’s inability, due to illness, accident, injury, physical or mental incapacity or other disability, to
carry out effectively the duties and obligations to the Company and its Affiliates performed by such person immediately prior to
such disability for a period of at least six (6) months, as determined in the good faith judgment of the Board.

 

(m) “Dollars”
or “$” means United States dollars.

 

(n) “Employee”
means any person employed by the Company or an Affiliate. Service as a Director or payment of a director’s fee by the Company
or an Affiliate alone shall not be sufficient to constitute “employment” by the Company or an Affiliate.

 

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

 

(p) “Fair
Market Value” means, as of any date, the value of the Common Stock determined as follows:

 

(i) If the Common
Stock is listed on any established stock exchange, or traded on the Nasdaq Global Market, the Nasdaq Capital Market or the Nasdaq
OTC Bulletin Board, the Fair Market Value of the Common Stock shall be the closing sales price for such stock (or the closing bid,
if no sales were reported) as quoted on such exchange or market (or the exchange or market with the greatest volume of trading
in Common Stock if such stock is traded on more than one such exchange or market) on the last market trading day prior to the day
of determination, as reported by such exchange or market or such other source as the Board reasonably deems reliable.

 

(ii) In the absence
of such markets for the Common Stock, the Fair Market Value shall be determined in good faith by the Board.

 

    	 

    	 

    

 

(q) “Incentive
Stock Option” means an option designated as an incentive stock option in an Option Agreement and that is granted
in accordance with the requirements of, and that conforms to the applicable provisions of, Section 422 of the Code.

 

(r) “Independent
Director” means (i) a Director who satisfies the definition of Independent Director or similar definition under the
applicable stock exchange or Nasdaq rules and regulations upon which the Common Stock is traded from time to time and (ii) a Director
who either (A) is not a current employee of the Company or an “affiliated corporation” (within the meaning of Treasury
Regulations promulgated under Section 162(m) of the Code), is not a former employee of the Company or an “affiliated corporation”
receiving compensation for prior services (other than benefits under a tax qualified pension plan), was not an officer of the Company
or an “affiliated corporation” at any time and is not currently receiving direct or indirect remuneration from the
Company or an “affiliated corporation” for services in any capacity other than as a Director or (B) is otherwise considered
an “outside director” for purposes of Section 162(m) of the Code.

 

(s) “Nonqualified
Stock Option” means an option that is not designated in an Option Agreement as an Incentive Stock Option or was not
granted in accordance with the requirements of, and does not conform to the applicable provisions of, Section 422 of the Code.

 

(t) “Officer”
means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations
promulgated thereunder.

 

(u) “Option”
means an Incentive Stock Option or a Nonqualified Stock Option granted pursuant to the Plan.

 

(v) “Option
Agreement” means a written agreement between the Company and an Option holder evidencing the terms and conditions
of an individual Option grant.

 

(w) “Option
holder” means a person to whom an Option is granted pursuant to the Plan or, if applicable, such other person who
holds an outstanding Option.

 

(x) “Participant”
means a person to whom an Award is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Award.

 

(y) “Plan”
means this Digital Ally, Inc. 2011 Stock Option and Restricted Stock Plan.

 

(z) “Rule
16b-3” means Rule 16b-3 promulgated under the Exchange Act or any successor to Rule 16b-3, as in effect from time
to time.

 

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

 

(bb) “Ten
Percent Stockholder” means a person who owns (or is deemed to own pursuant to Section 424(d) of the Code) stock possessing
more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any parent corporation
or any subsidiary corporation, both as defined in Section 424 of the Code.

 

    	 

    	 

    

 

3. ADMINISTRATION.

 

(a) Administration
by Board. The Board shall administer the Plan unless and until the Board delegates administration to a Committee, as provided
in subsection 3(c). The Board may, at any time and for any reason in its sole discretion, rescind some or all of such delegation.

 

(b) Powers of Board.
The Board shall have the power, subject to, and within the limitations of, the express provisions of the Plan:

 

(i) To determine
from time to time which of the persons eligible under the Plan shall be granted Awards; when and how each Award shall be granted;
what type or combination of types of Award shall be granted; the provisions of each Award granted (which need not be identical),
including the time or times when a person shall be permitted to receive Common Stock pursuant to an Award; and the number of shares
of Common Stock with respect to which an Award shall be granted to each such person.

 

(ii) To construe
and interpret the Plan, Awards granted under it, Option Agreements and Award Agreements, and to establish, amend and revoke rules
and regulations for their administration. The Board, in the exercise of this power, may correct any defect, omission or inconsistency
in the Plan or in any Option Agreement or Award Agreement, in a manner and to the extent it shall deem necessary or expedient to
make the Plan fully effective.

 

(iii) To amend
the Plan, an Award, an Award Agreement or an Option Agreement as provided in Section 12, provided that the Board shall not
amend the exercise price of an option, the Fair Market Value of an Award or extend the term of an Option or Award without obtaining
the approval of the stockholders if required by the rules of any stock exchange upon which the Common Stock is listed.

 

(iv) Generally,
to exercise such powers and to perform such acts as the Board deems necessary or expedient to promote the best interests of the
Company which are not in conflict with the provisions of the Plan.

 

(c) Delegation to
Committee. 

 

(i) General. The
Board may delegate administration of the Plan and its powers and duties thereunder to a Committee or Committees, and the term “Committee”
shall apply to any person or persons to whom such authority has been delegated. Upon such delegation, the Committee shall have
the powers theretofore possessed by the Board, including the power to delegate to a subcommittee any of the administrative powers
the Committee is authorized to exercise (and references in this Plan to the Board shall thereafter be deemed to include the Committee
or subcommittee), subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from
time to time by the Board. In its absolute discretion, the Board may at any time and from time to time exercise any and all rights
and duties of the Committee under this Plan, except respecting matters under Rule 16b-3 of the Exchange Act or Section 162(m) of
the Code, or any rules or regulations issued thereunder, which are required to be determined in the sole discretion of the Committee.

 

    	 

    	 

    

 

(ii) Committee Composition.
A Committee shall consist solely of two or more Independent Directors. Within the scope of its authority, the Board or the Committee
may (1) delegate to a committee of one or more members of the Board who are not Independent Directors the authority to grant Awards
to eligible persons who are either (a) not then Covered Employees and are not expected to be Covered Employees at the time of recognition
of income resulting from such Award or (b) not persons with respect to whom the Company wishes to comply with Section 162(m) of
the Code, and/or (2) delegate to a committee of one or more members of the Board who are not Independent Directors or to the Company’s
Chief Executive Officer the authority to grant Awards to eligible persons who are not then subject to Section 16 of the Exchange
Act.

 

(d) Effect of Board’s
Decision; No Liability. All determinations, interpretations and constructions made by the Board in good faith shall not be
subject to review by any person and shall be final, binding and conclusive on all persons. No member of the Board or the Committee
or any person to whom duties hereunder have been delegated shall be liable for any action, interpretation or determination made
in good faith, and such persons shall be entitled to full indemnification and reimbursement consistent with applicable law and
in the manner provided in the Company’s Articles of Incorporation and Bylaws, as the same may be amended from time to time,
or as otherwise provided in any agreement between any such member and the Company.

 

4. STOCK SUBJECT TO THE PLAN. 

 

(a) Stock Reserve.
Subject to the provisions of Section 11 relating to adjustments upon changes in Common Stock, the shares of Common Stock that may
be issued pursuant to Awards shall not exceed in the aggregate five hundred thousand (500,000) shares of Common Stock.

 

(b) Reversion of
Stock to the Stock Reserve. If any Award shall for any reason expire or otherwise terminate, in whole or in part, without having
been exercised in full, the shares of Common Stock not acquired under such Award shall revert to and again become available for
issuance under the Plan.

 

(c) Source of Stock.
The Common Stock subject to the Plan may be unissued stock or reacquired stock, bought on the market or otherwise.

 

5. ELIGIBILITY. 

 

(a) Eligibility for
Specific Awards. Incentive Stock Options may be granted only to Employees. Awards other than Incentive Stock Options may be
granted to Employees and Directors.

 

(b) Ten Percent Stockholders.
A Ten Percent Stockholder shall not be granted an Incentive Stock Option unless the exercise price of such Option is at least one
hundred ten percent (110%) of the Fair Market Value of the Common Stock at the date of grant and the Option is not exercisable
after the expiration of five (5) years from the date of grant.

 

    	 

    	 

    

 

6. OPTION PROVISIONS. 

 

Each Option Agreement shall
be subject to the terms and conditions of this Plan. Each Option and Option Agreement shall be in such form and shall contain such
terms and conditions as the Board shall deem appropriate. All Options shall be separately designated Incentive Stock Options or
Nonqualified Stock Options at the time of grant, and, if certificates are issued, a separate certificate or certificates will be
issued for the shares of Common Stock purchased on exercise of each type of Option. The provisions of separate Options need not
be identical.

 

(a) Provisions Applicable
to All Options. 

 

(i) Consideration.
The purchase price of the shares of Common Stock acquired pursuant to an Option shall be paid as follows: (a) in cash or by certified
or official bank check, payable to the order of the Company, in the amount (the “Purchase Price”) equal to the exercise
price of the Option multiplied by the number of shares plus payment of all taxes applicable upon such exercise; (b) with shares
owned by the Option holder having a Fair Market Value at the time the Option is exercised equal to the Purchase Price plus payment
in cash of all taxes applicable upon such exercise, with the prior approval of the Board; (c) by surrendering to the Company the
right to acquire a number of shares having an aggregate value such that the amount by which the Fair Market Value of such shares
exceeds the aggregate exercise price is equal to the Purchase Price plus payment in cash of all taxes applicable upon such exercise,
with the prior approval of the Board; (d) any combination of the foregoing; or (e) a manner acceptable to the Board.

 

(ii) Vesting Generally.
An Option may (A) vest, and therefore become exercisable, in periodic installments that may, but need not, be equal, or (B) be
fully vested at the time of grant. The Option may be subject to such other terms and conditions on the time or times when it may
be exercised (which may be based on performance or other criteria) as the Board may deem appropriate. The vesting provisions, if
any, of individual Options may vary. The provisions of this subsection 6(a)(ii) are subject to any Option Agreement provisions
governing the minimum number of Common Stock as to which an Option may be exercised.

 

(iii) Termination of
Continuous Service. Unless otherwise provided in the Option Agreement, in the event an Option holder’s Continuous Service
terminates (other than upon the Option holder’s death, Disability, retirement or as a result of a Change of Control), all
Options held by the Option holder shall immediately terminate; provided, however, that an Option Agreement may provide
that if an Option holder’s Continuous Service is terminated for reasons other than for cause, all vested Options held by
such person shall continue to be exercisable until the earlier of the expiration date of such Option or ninety (90) days after
the date of such termination. All such vested Options not exercised within the period described in the preceding sentence shall
terminate.

 

(iv) Disability or
Death of Option holder. Unless otherwise provided in the Option Agreement, in the event of an Option holder’s Disability
or death, all unvested Options shall immediately terminate, and all vested Options held by such person shall continue to be exercisable
for twelve months after the date of such Disability or death. All such vested Options not exercised within such twelve-month period
shall terminate.

 

    	 

    	 

    

 

(v) Retirement.
Unless otherwise provided in the Option Agreement, in the event of the Option holder’s retirement, all unvested Options shall
automatically vest on the date of such retirement and all Options shall be exercisable for the earlier of twelve (12) months after
such retirement date or the expiration date of such Options. All such Options not exercised within the period described in the
preceding sentence shall terminate.

 

(b) Provisions Applicable
to Incentive Stock Options.

 

(i) Term. Subject
to the provisions of subsection 5(b) regarding Ten Percent Stockholders, no Incentive Stock Option shall be exercisable after the
expiration of ten (10) years from the date it was granted. Further, no grant of an Incentive Stock Option shall be made under this
Plan more than ten (10) years after the date the Plan is approved by the stockholders of the Company.

 

(ii) Exercise Price
of an Incentive Stock Option. Subject to the provisions of subsection 5(b) regarding Ten Percent Stockholders, the exercise
price of each Incentive Stock Option shall be not less than one hundred percent (100%) of the Fair Market Value of the Common Stock
subject to the Option on the date the Option is granted.

 

(iii) Transferability
of an Incentive Stock Option. An Incentive Stock Option shall not be transferable except by will or by the laws of descent
and distribution and shall be exercisable during the lifetime of the Option holder only by the Option holder.

 

(iv) Incentive Stock
Option $100,000 Limitation. Notwithstanding any other provision of the Plan or an Option Agreement, the aggregate Fair Market
Value of the Common Stock with respect to which Incentive Stock Options are exercisable for the first time by an Option holder
in any calendar year, under the Plan or any other option plan of the Company or its Affiliates, shall not exceed One Hundred Thousand
Dollars ($100,000). For this purpose, the Fair Market Value of the Common Stock shall be determined as of the time an Option is
granted. The Options or portions thereof which exceed such limit (according to the order in which they were granted) shall be treated
as Nonqualified Stock Options.

 

(c) Provisions Applicable
to Nonqualified Stock Options.

 

(i) Exercise Price
of a Nonqualified Stock Option. The exercise price of each Nonqualified Stock Option shall be not less than one hundred percent
(100%) of the Fair Market Value of the Common Stock subject to the Option on the date the Option is granted.

 

(ii) Transferability
of a Nonqualified Stock Option. A Nonqualified Stock Option shall be transferable, if at all, to the extent provided in the
Option Agreement. If the Option Agreement does not provide for transferability, then the Nonqualified Stock Option shall not be
transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Option
holder only by the Option holder.

 

    	 

    	 

    

 

7. PROVISIONS OF AWARDS OTHER THAN OPTIONS.

 

(a) Restricted Stock
Awards. Each restricted stock Award agreement shall be in such form and shall contain such restrictions, terms and conditions,
if any, as the Board shall deem appropriate and shall be subject to the terms and conditions of this Plan. The terms and conditions
of restricted stock Award Agreements may change from time to time, and the terms and conditions of separate restricted stock Award
Agreements need not be identical, but each restricted stock Award Agreement shall include (through incorporation of provisions
hereof by reference in the agreement or otherwise) the substance of each of the following provisions:

 

(i) Consideration.
A restricted stock Award may be awarded in consideration for past services actually rendered, or for future services to be rendered,
to the Company or an Affiliate for its benefit.

 

(ii) Vesting.
Common Stock awarded under the restricted stock Award Agreement may (A) be subject to a vesting schedule to be determined by the
Board or (B) be fully vested at the time of grant.

 

(iii) Termination
of Participant’s Continuous Service. Unless otherwise provided in the restricted stock Award Agreement, in the event
a Participant’s Continuous Service terminates prior to a vesting date set forth in the restricted stock Award Agreement,
any unvested restricted stock Award shall be forfeited and automatically transferred to and reacquired by the Company at no cost
to the Company, and neither the Participant nor his or her heirs, executors, administrators or successors shall have any right
or interest in the restricted stock Award. Notwithstanding the foregoing, unless otherwise provided in the restricted stock Award
agreement, in the event a Participant’s Continuous Service terminates as a result of (A) being terminated by the Company
for reasons other than for cause, (B) death, (C) Disability, (D) retirement, or (E) a Change of Control (subject to the provisions
of Section 11(c) hereof), then any unvested restricted stock Award shall vest immediately upon such date.

 

(iv) Transferability.
Rights to acquire Common Stock under the restricted stock Award Agreement shall be transferable by the Participant only upon such
terms and conditions as are set forth in the restricted stock Award Agreement, as the Board shall determine in its discretion,
so long as Common Stock awarded under the restricted stock Award Agreement remain subject to the terms of the restricted stock
Award Agreement.

 

(b) Grant of Stock
Appreciation Rights. Stock appreciation rights to receive in shares of Common Stock the excess of the Fair Market Value of
Common Stock on the date the rights are surrendered over the Fair Market Value of Common Stock on the date of grant may be granted
to any Employee or Director selected by the Board. A stock appreciation right may be granted (i) in connection and simultaneously
with the grant of another Award, (ii) with respect to a previously granted Award, or (iii) independent of another Award. A stock
appreciation right shall be subject to such terms and conditions not inconsistent with this Plan as the Board shall impose and
shall be evidenced by a written stock appreciation right agreement, which shall be executed by the Participant and an authorized
officer of the Company. The Board, in its discretion, may determine whether a stock appreciation right is to qualify as performance-based
compensation as described in Section 162(m)(4)(C) of the Code and stock appreciation right agreements evidencing stock appreciation
rights intended to so qualify shall contain such terms and conditions as may be necessary to meet the applicable provisions of
Section 162(m) of the Code. The Board may, in its discretion and on such terms as it deems appropriate, require as a condition
of the grant of a stock appreciation right that the Participant surrender for cancellation some or all of the Awards previously
granted to such person under this Plan or otherwise. A stock appreciation right, the grant of which is conditioned upon such surrender,
may have an exercise price lower (or higher) than the exercise price of the surrendered Award, may contain such other terms as
the Board deems appropriate, and shall be exercisable in accordance with its terms, without regard to the number of shares, price,
exercise period or any other term or condition of such surrendered Award.

 

    	 

    	 

    

 

8. AVAILABILITY OF STOCK.

 

Subject to the restrictions
set forth in Section 4(a), during the terms of the Awards, the Company shall keep available at all times the number of shares of
Common Stock required to satisfy such Awards.

 

9. USE OF PROCEEDS FROM STOCK. 

 

Proceeds from the sale
of Common Stock pursuant to Awards shall constitute general funds of the Company.

 

10. MISCELLANEOUS. 

 

(a) Exercise of
Awards. Awards shall be exercisable at such times, or upon the occurrence of such event or events as the Board shall determine
at or subsequent to grant. Awards may be exercised in whole or in part. Common Stock purchased upon the exercise of an Award shall
be paid for in full at the time of such purchase.

 

(b) Acceleration
of Exercisability and Vesting. The Board shall have the power to accelerate the time at which an Award may first be exercised
or the time during which an Award or any part thereof will vest in accordance with the Plan, notwithstanding the provisions in
the Award stating the time at which it may first be exercised or the time during which it will vest.

 

(c) Stockholder
Rights. 

 

(i) Options. Unless
otherwise provided in and upon the terms and conditions in the Option Agreement, no Participant shall be deemed to be the holder
of, or to have any of the rights of a holder with respect to, any Common Stock subject to an Option unless and until such Participant
has satisfied all requirements for exercise of, and has exercised, the Option pursuant to its terms.

 

(ii) Restricted Stock.
Unless otherwise provided in and upon the terms and conditions in the restricted stock Award Agreement, a Participant shall have
the right to receive all dividends and other distributions paid or made respecting such restricted stock, provided, however, no
unvested restricted stock shall have any voting rights of a stockholder respecting such unvested restricted stock unless and until
such unvested restricted stock become vested.

 

    	 

    	 

    

 

(d) No Employment
or other Service Rights. Nothing in the Plan or any instrument executed or Award granted pursuant thereto shall confer upon
any Participant any right to continue to serve the Company or an Affiliate in the capacity in effect at the time the Award was
granted, or any other capacity, or shall affect the right of the Company or an Affiliate to terminate with or without notice and
with or without cause (i) the employment of an Employee or an Affiliate or (ii) the service of a Director of the Company or an
Affiliate.

 

(e) Withholding
Obligations. If the Company has or will have a legal obligation to withhold the taxes related to the grant, vesting or exercise
of the Award, such Award may not be granted, vested or exercised in whole or in part, unless such tax obligation is first satisfied
in a manner satisfactory to the Company. To the extent provided by the terms of an Award Agreement or Option Agreement, the Participant
may satisfy any federal, state or local tax withholding obligation relating to the exercise or acquisition of Common Stock under
an Award by any of the following means (in addition to the Company’s right to withhold from any compensation paid to the
Participant by the Company) or by a combination of such means: (i) tendering a cash payment in Dollars; (ii) authorizing the Company
to withhold Common Stock from the Common Stock otherwise issuable to the Participant as a result of the exercise or acquisition
of Common Stock under the Award, provided, however, that no shares of Common Stock are withheld with a value exceeding the minimum
amount of tax required to be withheld by law; or (iii) delivering to the Company owned and unencumbered Common Stock.

 

(f) Listing and
Qualification of Stock. This Plan and the grant and exercise of Awards hereunder, and the obligation of the Company to sell
and deliver Common Stock under such Awards, shall be subject to all applicable United States federal and state laws, rules and
regulations, and any other laws applicable to the Company, and to such approvals by any government or regulatory agency as may
be required. The Company, in its discretion, may postpone the issuance or delivery of Common Stock upon any exercise of an Award
until completion of any stock exchange listing, or the receipt of any required approval from any stock exchange or other qualification
of such Common Stock under any United States federal or state law rule or regulation as the Company may consider appropriate, and
may require any individual to whom an Award is granted, such individual’s beneficiary or legal representative, as applicable,
to make such representations and furnish such information as the Board may consider necessary, desirable or advisable in connection
with the issuance or delivery of the Common Stock in compliance with applicable laws, rules and regulations.

 

(g) Non-Uniform
Determinations. The Board’s determinations under this Plan (including, without limitation, determinations of the persons
to receive Awards, the form, term, provisions, amount and timing of the grant of such Awards and of the agreements evidencing the
same) need not be uniform and may be made by it selectively among persons who receive, or are eligible to receive, Awards under
this Plan, whether or not such persons are similarly situated.

 

    	 

    	 

    

 

11. ADJUSTMENTS UPON CHANGES IN STOCK.

 

(a) Capitalization
Adjustments. If any change is made in the Common Stock subject to the Plan, or subject to any Award, without the receipt
of consideration by the Company (through merger, consolidation, reorganization, recapitalization, reincorporation, stock
dividend, dividend in property other than cash, stock split, liquidating dividend, combination of stock, exchange of stock,
change in corporate structure or other transaction), the Plan will be appropriately adjusted in the class(es) and maximum
number of securities subject to the Plan pursuant to subsection 4(a) and the maximum number of securities subject to award to
any person pursuant to subsection 5(c), and the outstanding Awards will be appropriately adjusted in the class(es) and number
of securities and price per stock of Common Stock subject to such outstanding Awards. The Board shall make such adjustments,
and its determination shall be final, binding and conclusive. (The conversion of any convertible securities of the Company
shall not be treated as a transaction “without receipt of consideration” by the Company.)

 

(b) Dissolution
or Liquidation. In the event of a dissolution or liquidation of the Company, then all outstanding Awards shall terminate immediately
prior to such event.

 

(c) Asset Sale, Merger,
Consolidation or Reverse Merger. In the event of a Change of Control (as defined below), any unvested Awards shall vest immediately
prior to the closing of the Change of Control, and the Board shall have the power and discretion to provide for the Participant’s
election alternatives regarding the terms and conditions for the exercise of, or modification of, any outstanding Awards granted
hereunder, provided, however, such alternatives shall not affect the then current exercise provisions without such Participant’s
consent. The Board may provide that Awards granted hereunder must be exercised in connection with the closing of such transaction,
and that if not so exercised such Awards will expire. Any such determinations by the Board may be made generally with respect to
all Participants, or may be made on a case-by-case basis with respect to particular Participants. For the purpose of this Plan,
a “Change of Control” shall have occurred in the event one or more persons acting individually or as a group (i) acquires
sufficient additional stock to constitute more than fifty percent (50%) of (A) the total Fair Market Value of all Common Stock
issued and outstanding or (B) the total voting power of all shares of capital stock authorized to vote for the election of directors;
(ii) acquires, in a twelve (12) month period, thirty-five percent (35%) or more of the voting power of all shares of capital stock
authorized to vote for the election of directors, or alternatively a majority of the members of the board is replaced during any
twelve (12) month period by directors whose appointment was not endorsed by a majority of the members of the board; or (iii) acquires,
during a twelve (12) month period, more than forty percent (40%) of the total gross fair market value of all of the Company’s
assets. Notwithstanding the foregoing, the provisions of this Section 11(c) shall not apply to (i) any transaction involving any
stockholder that individually or as a group owns more than fifty percent (50%) of the outstanding Common Stock on the date this
Plan is approved by the Company’s stockholders, until such time as such stockholder first owns less than forty percent (40%)
of the total outstanding Common Stock, or (ii) any transaction undertaken for the purpose of reincorporating the Company under
the laws of another jurisdiction, if such transaction does not materially affect the beneficial ownership of the Company’s
capital stock.

 

    	 

    	 

    

 

12. AMENDMENT OF THE PLAN AND AWARDS.

 

(a) Amendment of
Plan. The Board at any time, and from time to time, may amend the Plan. However, except as provided in Section 11 relating
to adjustments upon changes in Common Stock, no amendment shall be effective unless approved by the stockholders of the Company
to the extent stockholder approval is necessary to satisfy the requirements of Section 422 of the Code, Rule 16b-3 or any applicable
Nasdaq or securities exchange listing requirements.

 

(b) Stockholder
Approval. The Board may, in its sole discretion, submit any other amendment to the Plan for stockholder approval, including,
but not limited to, amendments to the Plan intended to satisfy the requirements of Section 162(m) of the Code and the regulations
thereunder regarding the exclusion of performance-based compensation from the limit on corporate deductibility of compensation
paid to certain executive officers.

 

(c) Contemplated
Amendments. It is expressly contemplated that the Board may amend the Plan in any respect the Board deems necessary or advisable
to provide eligible Employees with the maximum benefits provided or to be provided under the provisions of the Code and the regulations
promulgated thereunder relating to Incentive Stock Options and/or to bring the Plan and/or Incentive Stock Options granted under
it into compliance therewith.

 

(d) No Impairment
of Rights. Rights under any Award granted before amendment of the Plan shall not be impaired by any amendment of the Plan unless
the Participant consents in writing.

 

(e) Amendment of
Awards. Subject to Section 3(b)(iii), the Board at any time, and from time to time, may amend the terms of any one or more
Awards; provided, however, that the rights under any Award shall not be impaired by any such amendment unless the applicable Participant
consents in writing.

 

13. TERMINATION OR SUSPENSION OF THE
PLAN. 

 

(a) Plan Term.
The Board may suspend or terminate the Plan at any time. Unless sooner terminated, the Plan shall terminate on the day before the
tenth (10th) anniversary of the date the Plan is adopted by the stockholders of the Company. No Awards may be granted under the
Plan while the Plan is suspended or after it is terminated.

 

(b) No Impairment
of Rights. Suspension or termination of the Plan shall not impair rights and obligations under any Award granted while the
Plan is in effect except with the written consent of the Participant.

 

(c) Savings Clause.
This Plan is intended to comply in all aspects with applicable laws and regulations. In case any one or more of the provisions
of this Plan shall be held invalid, illegal or unenforceable in any respect under applicable law or regulation, the validity, legality
and enforceability of the remaining provisions shall not in any way be affected or impaired thereby and the invalid, illegal or
unenforceable provision shall be deemed null and void; however, to the extent permissible by law, any provision which could be
deemed null and void shall first be construed, interpreted or revised retroactively to permit this Plan to be construed in compliance
with all applicable laws so as to foster the intent of this Plan.

 

    	 

    	 

    

 

14. EFFECTIVE DATE OF PLAN. 

 

The Plan shall become effective
as determined by the Board, but no Award shall be exercised (or, in the case of a restricted stock Award, shall be granted) unless
and until the Plan has been approved by the stockholders of the Company, which approval shall be within twelve (12) months before
or after the date the Plan is adopted by the Board.

 

15. CHOICE OF LAW. 

 

The law of the state of
Nevada shall govern all questions concerning the construction, validity and interpretation of this Plan, without regard to such
state’s conflict of laws rules.

 

(The Plan was adopted by the Board of Directors
on March 22, 2013).

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