Document:

Exhibit 10.1

 

SECURITIES
PURCHASE AGREEMENT

This Securities
Purchase Agreement (this “Agreement”) is dated as of __________, 2015, between MGT Capital Investments, Inc.,
a Delaware corporation (the “Company”), and each purchaser identified on the signature pages hereto (each, including
its successors and assigns, a “Purchaser” and collectively the “Purchasers”).

WHEREAS,
subject to the terms and conditions set forth in this Agreement and pursuant to an effective registration statement under the Securities
Act of 1933, as amended (the “Securities Act”), the Company desires to issue and sell to each Purchaser, and
each Purchaser, severally and not jointly, desires to purchase from the Company, securities of the Company as more fully described
in this Agreement.

NOW, THEREFORE,
IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt
and adequacy of which are hereby acknowledged, the Company and each Purchaser agree as follows:

ARTICLE I.

DEFINITIONS

1.1           Definitions.
In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms have the
meanings set forth in this Section 1.1:

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person as such terms are used in and construed under Rule 405 under the Securities Act.

“Board
of Directors” means the board of directors of the Company.

“Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or
any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to
close.

“Closing”
means the closing of the purchase and sale of the Shares pursuant to Section 2.1.

“Closing
Date” means the Trading Day on which all of the Transaction Documents have been executed and delivered by the applicable
parties thereto, and all conditions precedent to (i) the Purchasers’ obligations to pay the Subscription Amount and (ii)
the Company’s obligations to deliver the Shares, in each case, have been satisfied or waived, but in no event later than
the third Trading Day following the date hereof.

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

“Common
Stock” means the common stock of the Company, par value $0.001 per share, and any other class of securities into which
such securities may hereafter be reclassified or changed.

“Company
Counsel” means Sichenzia Ross Friedman Ference LLP, with offices located at 61 Broadway, New York, NY 10006.

“Disclosure
Schedules” means the Disclosure Schedules of the Company delivered concurrently herewith.

“Exchange Act”
means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“FCPA”
means the Foreign Corrupt Practices Act of 1977, as amended.

     

     

    

“Per Share
Purchase Price” equals $0.25, subject to adjustment for reverse and forward stock splits, stock dividends, stock combinations
and other similar transactions of the Common Stock that occur after the date of this Agreement.

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial
proceeding, such as a deposition), whether commenced or threatened.

“Prospectus”
means the final prospectus filed for the Registration Statement.

“Prospectus
Supplement” means the supplement to the Prospectus complying with Rule 424(b) of the Securities Act that is filed with
the Commission and delivered by the Company to each Purchaser at the Closing.

“Registration
Statement” means the effective registration statement with Commission file No. 333-
182298 which registers the sale of the Shares to the Purchasers.

“Rule 144”
means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time
to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect
as such Rule.

“Rule 424”
means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time
to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect
as such Rule.

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

“Shares”
means the shares of Common Stock issued to each Purchaser at the Closing.

“Short
Sales” means all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act(but shall
not be deemed to include the location and/or reservation of borrowable shares of Common Stock). 

“Subscription
Amount” means, as to each Purchaser, the aggregate amount to be paid for Shares hereunder as specified below such Purchaser’s
name on the signature page of this Agreement and next to the heading “Subscription Amount,” in United States dollars
and in immediately available funds.

“Trading
Day” means a day on which the principal Trading Market is open for trading.

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the NYSE AMEX, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the
New York Stock Exchange, OTC Markets, Inc., or the OTC Bulletin Board (or any successors to any of the foregoing).

“Transaction
Documents” means this Agreement and any other documents or agreements executed in connection with the transactions contemplated
hereunder.

“Transfer Agent”
means VStock Transfer, LLC the current transfer agent of the Company, with a mailing address of 18 Lafayette Place, Woodmere,
NY 11598, and any successor transfer agent of the Company. 

    	 	2	 

     

    

ARTICLE II.

PURCHASE AND SALE

2.1           Closing.
On the Closing Date, upon the terms and subject to the conditions set forth herein, substantially concurrent with the execution
and delivery of this Agreement by the parties hereto, the Company agrees to sell, and the Purchasers, severally and not jointly,
agree to purchase, up to an aggregate of _______ Shares. Each Purchaser shall deliver to the Company, via wire transfer or a certified
check, immediately available funds equal to such Purchaser’s Subscription Amount as set forth on the signature page hereto
executed by such Purchaser and the Company shall deliver to each Purchaser its respective Shares as determined pursuant to Section
2.2(a), and the Company and each Purchaser shall deliver the other items set forth in Section 2.2 deliverable at the
Closing. Upon satisfaction of the covenants and conditions set forth in Section 2.2 and Section 2.3, the Closing
shall occur at the offices of Company Counsel or such other location as the parties shall mutually agree.

2.2           Deliveries.

(a)           On or prior
to the Closing Date, the Company shall deliver or cause to be delivered to each Purchaser the following:

(i)           this Agreement
duly executed by the Company;

(ii)           the Shares,
delivery to be made through the facilities of The Depository Trust Company’s DWAC system in accordance with the instructions
set forth on the signature page attached hereto under the heading “DWAC Instructions”;

(iii)           the Prospectus
and Prospectus Supplement (which may be delivered in accordance with Rule 172 under the Securities Act).

(b)           On or prior
to the Closing Date, each Purchaser shall deliver or cause to be delivered to the Company the following:

(i)           this Agreement
duly executed by such Purchaser; and

(ii)           such Purchaser’s
Subscription Amount by wire transfer to the account designated in writing by the Company.

2.3           Closing
Conditions.

(a)           The obligations
of the Company hereunder in connection with the Closing with respect to each Purchaser are subject to the following conditions
being met:

(i)           the accuracy in all material respects
on the Closing Date of the representations and warranties of such Purchaser contained herein (unless as of a specific date therein
in which case they shall be accurate as of such date);

(ii)           all obligations,
covenants and agreements of such Purchaser required to be performed at or prior to the Closing Date shall have been performed;
and

(iii)           the delivery
by such Purchaser of the items set forth in Section 2.2(b) of this Agreement.

(b)           The respective
obligations of the Purchasers hereunder in connection with the Closing are subject to the following conditions being met:

(i)           the
accuracy in all material respects when made and on the Closing Date of the representations and warranties of the Company contained
herein (unless as of a specific date therein);

    	 	3	 

     

    

(ii)           all obligations,
covenants and agreements of the Company required to be performed at or prior to the Closing Date shall have been performed;

(iii)           the delivery
by the Company of the items set forth in Section 2.2(a) of this Agreement; and

(iv)           there shall
have been no Material Adverse Effect with respect to the Company since the date hereof.

ARTICLE III.

REPRESENTATIONS AND WARRANTIES

3.1           Representations and Warranties of
the Company. The Company hereby represents and warrants to each Purchaser, as of the Closing Date:

 

           (a)           Organization, Good Standing and
Power; Subsidiaries. The Company is a corporation duly organized, validly existing and in good standing under the laws of the
State of Delaware and has the requisite corporate power to own, lease and operate its properties and assets and to conduct its
business as it is now being conducted. The Company is duly qualified as a foreign corporation to do business and is in good standing
in every jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary
except for any jurisdiction(s) (alone or in the aggregate) in which the failure to be so qualified will not have or reasonably
be expected to result in: (i) a material adverse effect on the legality, validity or enforceability of any Transaction Document,
(ii) a material adverse effect on the results of operations, assets, business, prospects or condition (financial or otherwise)
of the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company’s ability to perform
in any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii) or (iii), a “Material
Adverse Effect”).

 

All of the direct and indirect
subsidiaries of the Company are listed on Schedule 3.1(a). Except as set forth on Schedule 3.1(a), the Company owns, directly or
indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear of any Liens (as such term is
defined below), and all of the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully
paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities.

 

           (b)           Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and perform this Agreement and to issue
and sell the Shares in accordance with the terms hereof. The execution, delivery and performance of this Agreement by the Company
and the consummation by it of the transactions contemplated hereby have been duly and validly authorized by all necessary corporate
action, and no further consent or authorization of the Company or its Board of Directors or stockholders is required in connection
therewith. This Agreement has been duly executed and delivered by the Company. This Agreement constitutes a valid and binding obligation
of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium, liquidation, conservatorship, receivership or similar laws relating to, or
affecting generally the enforcement of, creditor’s rights and remedies or by equitable principles of general application.

 

           (c)           Capitalization.
As of the Closing Date but prior to the issuance of any Shares pursuant to this Agreement, the authorized and issued and outstanding
capital stock of the Company consists solely of (i) 75,000,000 shares of Common Stock, par value $0.001 per such share, of which
17,209,655 shares of Common Stock are issued and outstanding, and (ii) 10,000,000 shares of preferred stock, of which 10, 29 6shares
are issued and outstanding.

 

The Company has furnished
or made available to the Purchasers true and correct copies of the Company’s Certificate of Incorporation and Bylaws, each
as in effect on the date hereof (the “Charter Documents”). All of the outstanding shares of Common Stock
have been duly and validly authorized and are fully paid and non-assessable. None of the shares of Common Stock are subject to
preemptive rights. No shares of Common Stock are entitled to registration rights. The Company is not a party to, and it has no
knowledge of, any agreement restricting the voting of any shares of the Common Stock of the Company, or restricting the transfer
of its securities.

 

    	 	4	 

     

    

 

           (d)           Issuance of
the Shares. The Shares to be purchased by the Purchasers from the Company have been duly authorized for issuance and sale to
the Purchasers and, when issued and delivered by the Company pursuant to the terms of the Agreements against payment of the consideration
set forth therein, will be validly issued and fully paid and non-assessable. The Shares have been registered on the Registration
Statement. The Registration Statement has been declared effective by the Securities and Exchange Commission and is effective on
the date hereof.

 

           (e)           No Conflicts.
The execution, delivery and performance of the Agreement by the Company, and the performance by the Company of its obligations
contemplated herein do not and will not (i) violate any provision of the Charter Documents, (ii) conflict with, or constitute a
default under any agreement, mortgage, deed of trust, indenture, note, bond, license, lease agreement, instrument or obligation
to which the Company is a party, or (iii) create or impose a lien, mortgage, security interest, charge or encumbrance of any nature
on any property of the Company under any agreement or any commitment to which the Company is a party or by which the Company is
bound or by which any of its respective properties or assets are bound.

 

           (f)           Financial Statements. The
Company has made available to the Purchasers, by reference to www.sec.gov, true and complete copies its audited financial
statements for the fiscal year ended December 31, 2014 (the “Annual Financial Statements Date”) and unaudited
financial statements for the Company for the nine (9) months ended September 30, 2015 (the “Quarterly Financial Statements
Date”). Such financial statements are collectively referred to as the “Financial Statements.”
The Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”)
applied on a consistent basis during the periods involved (except as may be otherwise indicated in such financial statements or
the notes thereto). Since the date of the latest audited financial statements included within the SEC Reports (as defined below),
except as specifically disclosed in a subsequent SEC Report filed prior to the date hereof, (i) there has been no event, occurrence
or development that has had or that could reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not
incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary
course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial
statements pursuant to GAAP or disclosed in filings made with the Commission, (iii) the Company has not altered its method of accounting,
(iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased,
redeemed or made any agreements to purchase or redeem any shares of its capital stock and (v) the Company has not issued any equity
securities to any officer, director or Affiliate, except pursuant to existing Company stock option plans. The Company does not
have pending before the Commission any request for confidential treatment of information.

 

           (g)           Title to Assets.
Except as set forth on Schedule 3.1(g), the Company has good and marketable title to all of its owned real and personal property
whether tangible or intangible (collectively, the “Assets”), free and clear of any mortgages, pledges,
charges, liens, security interests, claim, community property interest, condition, equitable interest or other encumbrances, license,
option, right of first refusal or restriction of any kind, including any restriction on use, voting, transfer, receipt of income
or exercise of any other attribute of ownership (“Liens”).

 

           (h)           Taxes.
The Company has accurately prepared and filed all material foreign, federal, state income and all other tax returns, reports and
declarations required by law to be paid or filed by it by any jurisdiction to which the Company is subject. The Company has no
knowledge of any assessments, adjustments or contingent tax liability (whether federal or state) of any nature whatsoever, whether
pending or threatened against the Company for any period, nor of any basis for any such assessment, adjustment or contingency.
The Company has complied in all material respects with all applicable legal requirements relating to the payment and withholding
of taxes and, within the time and in the manner prescribed by law, has withheld from wages, fees and other payments, and paid over
to the proper governments or regulatory authorities, all amounts required.

 

           (i)           Filings, Consents and Approvals.
The Company is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or
registration with, any court or other federal, state, local or other governmental authority or other Person in connection with
the execution, delivery and performance by the Company of the Transaction Documents, other than: (i) the filings required pursuant
to Section 4.1 of this Agreement, (ii) the filing with the Commission of the Prospectus Supplement, (ii) such filings as
are required to be made under applicable state securities laws (collectively, the “Required Approvals”).

 

    	 	5	 

     

    

 

           (j)           SEC Reports. The Company
has filed all reports, schedules, forms, statements and other documents required to be filed by the Company under the Securities
Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (or
such shorter period as the Company was required by law or regulation to file such material) (the foregoing materials, including
the exhibits thereto and documents incorporated by reference therein, together with the Prospectus and the Prospectus Supplement,
being collectively referred to herein as the “SEC Reports”) on a timely basis or has received a valid
extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension. As of their
respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange
Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state
a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances
under which they were made, not misleading.

 

           (k)           Litigation. There is no action,
suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of the Company, threatened against
or affecting the Company, any Subsidiary or any of their respective properties before or by any court, arbitrator, governmental
or administrative agency or regulatory authority (federal, state, county, local or foreign, including FINRA) (collectively, an
“Action”) which (i) adversely affects or challenges the legality, validity or enforceability of any of
the Transaction Documents or the Shares or (ii) could, if there were an unfavorable decision, have or reasonably be expected to
result in a Material Adverse Effect. Neither the Company nor any Subsidiary, nor any director or officer thereof, is or has been
the subject of any Action involving a claim of violation of or liability under federal or state securities laws or a claim of breach
of fiduciary duty. There has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation
by the Commission or FINRA involving the Company or any current or former director or officer of the Company. The Commission has
not issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company or any
Subsidiary under the Exchange Act or the Securities Act.

 

           (l)           Disclosure. Except with respect
to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company confirms that neither
it nor any other Person acting on its behalf has provided any of the Purchasers or their agents or counsel with any information
that it believes constitutes or might constitute material, non-public information which is not otherwise disclosed in the Prospectus
Supplement. The Company understands and confirms that the Purchasers will rely on the foregoing representation in effecting transactions
in securities of the Company. All disclosure furnished by or on behalf of the Company to the Purchasers regarding the Company,
its business and the transactions contemplated hereby is true and correct and does not contain any untrue statement of a material
fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under
which they were made, not misleading. The press releases disseminated by the Company during the twelve months preceding the date
of this Agreement taken as a whole do not contain any untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were
made and when made, not misleading. The Company acknowledges and agrees that no Purchaser makes or has made any representations
or warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section 3.2 hereof.

 

           (m)           No Integrated Offering. Assuming the accuracy
of the Purchasers’ representations and warranties set forth in Section 3.2, neither the Company, nor any of its Affiliates,
nor any Person acting on its or their behalf has, directly or indirectly, made any offers or sales of any security or solicited
any offers to buy any security, under circumstances that would cause this offering to be integrated with prior offerings by the
Company for purposes of any applicable shareholder approval provisions of any Trading Market on which any of the securities of
the Company are listed or designated.

 

(n)           Patents and Trademarks.
To the knowledge of the Company, the Company and the Subsidiaries have, or have rights to use, all patents, patent applications,
trademarks, trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual
property rights and similar rights necessary or material for use in connection with their respective businesses as described in
the SEC Reports and which the failure to so have could have a Material Adverse Effect (collectively, the “Intellectual Property
Rights”). Neither the Company nor any Subsidiary has received a notice (written or otherwise) that any of the Intellectual
Property Rights used by the Company or any Subsidiary violates or infringes upon the rights of any Person. To the knowledge of
the Company, all such Intellectual Property Rights are enforceable. The Company and its Subsidiaries have taken reasonable security
measures to protect the secrecy, confidentiality and value of all of their intellectual properties, except where failure to do
so could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

    	 	6	 

     

    

 

(o)           Regulation M
Compliance. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly, any
action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate
the sale or resale of any of the Shares, (ii) sold, bid for, purchased, or, paid any compensation for soliciting purchases of,
any of the Shares, or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities
of the Company.

 

3.2           Representations
and Warranties of the Purchasers. Each Purchaser, for itself and for no other Purchaser, hereby represents and warrants as
of the date hereof and as of the Closing Date to the Company as follows (unless as of a specific date therein):

 

(a)           Organization;
Authority. Such Purchaser, if an entity, is an entity duly incorporated or formed, validly existing and in good standing under
the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership, limited liability company
or similar power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to
carry out its obligations hereunder and thereunder. The execution and delivery of this Agreement and performance by such Purchaser
of the transactions contemplated by this Agreement have been duly authorized by all necessary corporate, partnership, limited liability
company or similar action, as applicable, on the part of such Purchaser. Each Transaction Document to which it is a party has been
duly executed by such Purchaser, and when delivered by such Purchaser in accordance with the terms hereof, will constitute the
valid and legally binding obligation of such Purchaser, enforceable against it in accordance with its terms, except: (i) as limited
by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application
affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by
applicable law.

(b)           Understandings
or Arrangements. Such Purchaser is acquiring the Shares as principal for its own account and has no direct or indirect arrangement
or understandings with any other persons to distribute or regarding the distribution of such Shares (this representation and warranty
not limiting such Purchaser’s right to sell the Shares pursuant to the Registration Statement or otherwise in compliance
with applicable federal and state securities laws). Such Purchaser is acquiring the Shares hereunder in the ordinary course of
its business.

(c)           Experience
of Such Purchaser. Such Purchaser, either alone or together with its representatives, has such knowledge, sophistication and
experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment
in the Shares, and has so evaluated the merits and risks of such investment. Such Purchaser is able to bear the economic risk of
an investment in the Shares and, at the present time, is able to afford a complete loss of such investment.

(d)           Access
to Information. Such Purchaser acknowledges that it has had the opportunity to review the Transaction Documents (including
all exhibits and schedules thereto) and the SEC Reports and, subject to the Company’s need to comply with Regulation FD,
has been afforded (i) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives
of the Company concerning the terms and conditions of the offering of the Shares and the merits and risks of investing in the Shares;
(ii) access to information about the Company and its financial condition, results of operations, business, properties, management
and prospects sufficient to enable it to evaluate its investment; and (iii) the opportunity to obtain such additional information
that the Company possesses or can acquire without unreasonable effort or expense that is necessary to make an informed investment
decision with respect to the investment. 

(e)           .

(f)           Confidentiality.
Other than to other Persons party to this Agreement, such Purchaser has maintained the confidentiality of all disclosures made
to it in connection with this transaction (including the existence and terms of this transaction).

    	 	7	 

     

    

(g)           Estimates;
Forward-Looking Statements. The Purchaser acknowledges that any and all estimates or forward-looking statements or projections
with which it may have been provided (collectively, the “Information”) were prepared by the Company in good
faith, but that the attainment of any such projections, estimates or forward-looking statements cannot be guaranteed, will not
be updated by the Company and should not be relied upon. The Purchaser further acknowledges that any and all Information regarding
the historical performance of the Company is not necessarily indicative of future performance.

(h)           No
Representations. No oral or written representations have been made, or oral or written information furnished, to the Purchaser
or its advisors, if any, in connection with the offering of the Shares which are in any way inconsistent with the information
contained in the Prospectus. 

ARTICLE IV.

OTHER AGREEMENTS OF THE PARTIES

4.1           Securities
Laws Disclosure; Publicity. The Company shall (a) by 9:00 a.m. (New York City time) on the Trading Day immediately following
the date hereof, issue a press release disclosing the material terms of the transactions contemplated hereby, and (b) file a Current
Report on Form 8-K, including the Transaction Documents as exhibits thereto, with the Commission within the time required by the
Exchange Act. The Company and each Purchaser shall consult with each other in issuing any other press releases with respect to
the transactions contemplated hereby, and neither the Company nor any Purchaser shall issue any such press release nor otherwise
make any such public statement without the prior consent of the Company, with respect to any press release of any Purchaser, or
without the prior consent of each Purchaser, with respect to any press release of the Company, which consent shall not unreasonably
be withheld or delayed, except if such disclosure is required by law, in which case the disclosing party shall promptly provide
the other party with prior notice of such public statement or communication. Notwithstanding the foregoing, the Company shall not
publicly disclose the name of any Purchaser, or include the name of any Purchaser in any filing with the Commission or any regulatory
agency or Trading Market, without the prior written consent of such Purchaser, except (a) as required by federal securities law
in connection with the filing of final Transaction Documents (including signature pages thereto) with the Commission and (b) to
the extent such disclosure is required by law or Trading Market regulations, in which case the Company shall provide the Purchasers
with prior notice of such disclosure permitted under this Section 4.1.

4.2           Indemnification
of Purchasers. Subject to the provisions of this Section 4.2, the Company will indemnify and hold each Purchaser and
its directors, officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally equivalent
role of a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls such Purchaser
(within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders,
agents, members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding such titles
notwithstanding a lack of such title or any other title) of such controlling persons (each, a “Purchaser Party”)
harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all
judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation that any such
Purchaser Party may suffer or incur as a result of or relating to any breach of any of the representations, warranties, covenants
or agreements made by the Company in this Agreement or in the other Transaction Documents. If any action shall be brought against
any Purchaser Party in respect of which indemnity may be sought pursuant to this Agreement, such Purchaser Party shall promptly
notify the Company in writing, and the Company shall have the right to assume the defense thereof with counsel of its own choosing
reasonably acceptable to the Purchaser Party. Any Purchaser Party shall have the right to employ separate counsel in any such
action and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Purchaser
Party except to the extent that (i) the employment thereof has been specifically authorized by the Company in writing, (ii) the
Company has failed after a reasonable period of time to assume such defense and to employ counsel or (iii) in such action there
is, in the reasonable opinion of counsel, a material conflict on any material issue between the position of the Company and the
position of such Purchaser Party, in which case the Company shall be responsible for the reasonable fees and expenses of no more
than one such separate counsel. The Company will not be liable to any Purchaser Party under this Agreement (y) for any settlement
by a Purchaser Party effected without the Company’s prior written consent, which shall not be unreasonably withheld or delayed;
or (z) to the extent that a loss, claim, damage or liability is attributable to any Purchaser Party’s breach of any of the
representations, warranties, covenants or agreements made by such Purchaser Party in this Agreement or in the other Transaction
Documents. The indemnification required by this Section 4.2 shall be made by periodic payments of the amount thereof during
the course of the investigation or defense, as and when bills are received or are incurred.

    	 	8	 

     

    

4.3           Equal Treatment
of Purchasers. No consideration (including any modification of any Transaction Document) shall be offered or paid to any Person
to amend or consent to a waiver or modification of any provision of any of this Agreement unless the same consideration is also
offered to all of the parties to this Agreement. For clarification purposes, this provision constitutes a separate right granted
to each Purchaser by the Company and negotiated separately by each Purchaser, and is intended for the Company to treat the Purchasers
as a class and shall not in any way be construed as the Purchasers acting in concert or as a group with respect to the purchase,
disposition or voting of Shares or otherwise.

4.4           Certain
Transactions and Confidentiality. Each Purchaser, severally and not jointly with the other Purchasers, covenants that neither
it nor any Affiliate acting on its behalf or pursuant to any understanding with it will execute any purchases or sales, including
Short Sales of any of the Company’s securities during the period commencing with the execution of this Agreement and ending
at such time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release
as described in Section 4.1.  Each
Purchaser, severally and not jointly with the other Purchasers, covenants that until such time as the transactions contemplated
by this Agreement are publicly disclosed by the Company pursuant to the initial press release as described in Section 4.1,
such Purchaser will maintain the confidentiality of the existence and terms of this transaction and the information included in
the Disclosure Schedules. 

ARTICLE V.

MISCELLANEOUS

5.1           Termination. 
This Agreement may be terminated by any Purchaser, as to such Purchaser’s obligations hereunder only and without any effect
whatsoever on the obligations between the Company and the other Purchasers, by written notice to the other parties, if the Closing
has not been consummated on or before December 31, 2015; provided, however, that no such termination will affect
the right of any party to sue for any breach by any other party (or parties).

5.2           Fees and
Expenses. Except as expressly set forth in the Transaction Documents to the contrary, each party shall pay the fees and expenses
of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the
negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all Transfer Agent fees
(including, without limitation, any fees required for same-day processing of any instruction letter delivered by the Company and
any exercise notice delivered by a Purchaser), stamp taxes and other taxes and duties levied in connection with the delivery of
any Shares to the Purchasers.

5.3           Entire Agreement.
The Transaction Documents, together with the exhibits and schedules thereto, the Prospectus and the Prospectus Supplement, contain
the entire understanding of the parties with respect to the subject matter hereof and thereof and supersede all prior agreements
and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents,
exhibits and schedules.

5.4           Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and
shall be deemed given and effective on the earliest of: (a) 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 at or prior to 5:30 p.m. (New York City
time) on a Trading Day, (b) the next Trading 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 Trading Day or later
than 5:30 p.m. (New York City time) on any Trading Day, (c) the second (2nd) Trading Day following the date of mailing,
if sent by U.S. nationally recognized overnight courier service or (d) upon actual receipt by the party to whom such notice is
required to be given. The address for such notices and communications shall be as set forth on the signature pages attached hereto.

    	 	9	 

     

    

5.5           Amendments;
Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed,
in the case of an amendment, by the Company and the Purchasers holding at least a majority in interest of the Shares based on the
initial Subscription Amounts hereunder or, in the case of a waiver, by the party against whom enforcement of any such waived provision
is sought. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to
be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement
hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such
right.

5.6           Headings.
The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect
any of the provisions hereof.

5.7           Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted
assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of
each Purchaser (other than by merger). Any Purchaser may assign any or all of its rights under this Agreement to any Person to
whom such Purchaser assigns or transfers any Shares, provided that such transferee agrees in writing to be bound by the provisions
of the Transaction Documents that apply to the “Purchasers.”

5.8           No Third-Party
Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted
assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise set forth
in Section 4.2 and this Section 5.8.

5.9           Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall
be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the
principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement
and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party
hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be commenced
exclusively in the state and federal courts sitting in the City of New York. Each party hereby irrevocably submits to the exclusive
jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for the adjudication of any
dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect
to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action
or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding
is improper or is an inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and
consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail
or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement
and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any other manner permitted by law. If either party shall commence
an action, suit or proceeding to enforce any provisions of the Transaction Documents, then the prevailing party in such action,
suit or proceeding shall be reimbursed by the other party for its reasonable attorneys’ fees and other costs and expenses
incurred with the investigation, preparation and prosecution of such action or proceeding.

5.10           Survival.
The representations and warranties contained herein shall survive the Closing and the delivery of the Shares.

5.11           Execution.
This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each party and delivered to each other party, it being
understood that the parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission
or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the
party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf”
signature page were an original thereof.

    	 	10	 

     

    

5.12           Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal,
void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full
force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially
reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated
by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that
they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

5.13           Replacement
of Securities. If any certificate or instrument evidencing any Shares is mutilated, lost, stolen or destroyed, the Company
shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation), or
in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory
to the Company of such loss, theft or destruction. The applicant for a new certificate or instrument under such circumstances shall
also pay any reasonable third-party costs (including customary indemnity) associated with the issuance of such replacement securities.

5.14           Remedies.
In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of
the Purchasers and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that
monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations contained in the
Transaction Documents and hereby agree to waive and not to assert in any action for specific performance of any such obligation
the defense that a remedy at law would be adequate.

5.15           Independent
Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction Document are several
and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance
or non-performance of the obligations of any other Purchaser under any Transaction Document. Nothing contained herein or in any
other Transaction Document, and no action taken by any Purchaser pursuant hereto or thereto, shall be deemed to constitute the
Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers
are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction
Documents. Each Purchaser shall be entitled to independently protect and enforce its rights including, without limitation, the
rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser
to be joined as an additional party in any proceeding for such purpose. Each Purchaser has been represented by its own separate
legal counsel in its review and negotiation of the Transaction Documents.

5.16           Saturdays,
Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or
granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding
Business Day.

5.17           Construction.
The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise the Transaction
Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting
party shall not be employed in the interpretation of the Transaction Documents or any amendments thereto. In addition, each and
every reference to share prices and shares of Common Stock in any Transaction Document shall be subject to adjustment for reverse
and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that occur after
the date of this Agreement.

WAIVER OF JURY
TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES EACH KNOWINGLY
AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY
WAIVES FOREVER TRIAL BY JURY. 

(Signature Pages Follow)

    	 	11	 

     

    

IN WITNESS WHEREOF,
the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories
as of the date first indicated above. 

	
        mgt capital investments,
        inc.

         

         
	
        Address for Notice:

        500 Mamaroneck Avenue

        Suite 204

        Harrison, NY 10528 USA

         

	
        By:__________________________________________

        Name:

        Title:

         

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

        Jay Kaplowitz

        Sichenzia Ross Friedman Ference LLP

        61 Broadway, 32nd Floor

        New York, NY 10006

         

         
	 

 

 

 

 

 

 

 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE FOR PURCHASER FOLLOWS]

 

    	 	12	 

     

    

 

[PURCHASER SIGNATURE PAGES TO MGT CAPITAL INVESTMENTS,
INC. SECURITIES PURCHASE AGREEMENT]

 

IN WITNESS WHEREOF,
the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as
of the date first indicated above.

Name of Purchaser: ________________________________________________________

Signature of Authorized Signatory of Purchaser:
_________________________________

Name of Authorized Signatory: _______________________________________________

Title of Authorized Signatory: ________________________________________________

Email Address of Authorized Signatory:_________________________________________

Facsimile Number of Authorized Signatory: __________________________________________

Address for Notice to Purchaser:

 

  

	DWAC Instructions:	 	 
	 	 	 
	Name of DTC Participant (broker-dealer at which the account or accounts to be credited with the Shares are maintained):
	 	 	 
	DTC Participant Number: _________________	 	 
	 	 	 
	
        Name of Account at DTC Participant being

        credited with the Shares: _________________
	 	 
	 	 	 
	Account Number at DTC Participant being credited 

with the Shares: _________________	 	 

 

  

Subscription Amount: $_________________

 

Shares: _________________

 

Shares: _________________

 

EIN Number: _______________________

 

    	 	13exhibit10-1.htm

 

 

EXHIBIT 10-1

 

AGREEMENT AND PLAN OF MERGER

 

This Agreement and Plan of Merger (the "Agreement") is made as of this 17th day of December 2015 by and among (i) Cantabio Pharmaceuticals Inc., a Delaware corporation (the "Company"), (ii) Cantabio Acquisition Inc., a Delaware corporation ("Merger Sub"), (iii) Gardedam Therapeutics, Inc., a Delaware corporation ("Gardedam"), (iv) Dr. Gergely Toth, (v) Dr. Thomas Roger Sawyer and (vi) Simon Peace (each a “Party” and together the “Parties”).

 

WHEREAS, the Company is authorized to issue 250,000,000 shares of its common stock, par value $0.001 per share ("Authorized Common Stock"), of which 27,250,000 shares ("Issued Common Shares") are issued and outstanding as of the date hereof and no shares of preferred stock exist, as of the date hereof; and

 

WHEREAS, Merger Sub is a wholly owned subsidiary of the Company and is authorized to issue 1,000,000 shares of common stock, par value $0.001 per share (the "Merger Sub Shares"), all of which are issued and outstanding and owned by the Company as of the date hereof; and

 

WHEREAS, the respective Boards of Directors of the Company, Merger Sub and Gardedam (the "Constituent Corporations") deem it advisable and in the best interests of the Constituent Corporations, and their respective stockholders, that Merger Sub be merged with and into the Gardedam (the "Merger") and the Merger be effected pursuant to the Delaware General Corporation Law (the "DGCL");

 

WHEREAS, as consideration for the Merger, (i) the Company will issue the Gardedam shareholders approximately 15,500,000 shares of the Company’s common stock, (ii) Dr. Toth will return 13,500,000 shares of the Company’s common stock to treasury, (iii) Dr. Sawyer will return 1,000,000 shares of the Company’s common stock to treasury (iv) Mr. Peace will return 1,000,000 shares of the Company’s common stock to treasury; and

 

WHEREAS, it is intended that the Merger each be treated as a tax free reorganization under Section 368(a) of the Internal Revenue Code of 1986, as amended (the "Code"); and

 

NOW, THEREFORE, in consideration of the premises, covenants and conditions hereof, the parties hereto do mutually agree as follows:

 

 

 

 

  

EXHIBIT 10.1, 1

  

 

ARTICLE I

 

The Merger

 

SECTION 1.1                                The Merger. On the basis of the representations, warranties, covenants and agreements set forth in this Agreement and subject to the satisfaction or waiver of the conditions set forth in this Agreement, at the Effective Time (as defined below) and in accordance with the applicable provisions of the DGCL:

(a)           Merger Sub shall merger with and into Gardedam. Upon completion of the Merger, the Gardedam shall be the surviving entity and the separate corporate existence of Merger Sub shall thereupon cease. Gardedam, as the surviving corporation in the Merger and a wholly-owned subsidiary of the Company shall continue its existence under the name “Gardedam Therapeutics, Inc." and shall continue to be governed by the DGCL. As consideration for the Merger, (i) the shareholders of Gardedam relinquish all ownership of shares of capital stock Gardedam to the Company in exchange for the issuance of approximately 15,500,000 common shares by the Company (the “Merger Common Stock”) and such Merger Common Stock shall be issued to the Gardedam shareholders on a pro rata basis as to their ownership of Gardedam, (ii) Dr. Gergely Toth Agrees to return to the Company’s treasury 13,500,000 shares of the Company’s Common Stock, (iii) Dr. Thomas Roger Sawyer agrees to return 1,000,000 shares of the Company’s Common Stock to treasury and (iv) Simon Peace agrees to return 1,000,000 shares of the Company’s Common Stock to treasury.

 

(b)           The Articles of Incorporation and By-laws of Gardedam, as in effect immediately prior to the Effective Time, shall thereafter be the articles of incorporation and by-laws of the surviving corporation in the Merger until duly amended or repealed.

 

(c)           The members of the Board of Directors of Gardedam immediately prior to the Effective Time shall thereafter be confirmed as members of the Board of Directors of Gardedam as the surviving corporation in the Merger until the earlier of their resignation or removal or until their respective successors are duly elected or appointed and qualified in the manner provided in the articles of incorporation and by-laws of the surviving corporation in the Merger, or as otherwise provided by law.

 

(d)           The officers of Gardedam immediately prior to the Effective Time shall be confirmed as the initial officers of Gardedam as the surviving corporation in the Merger until the earlier of their resignation or removal or until their respective successors are duly elected or appointed and qualified.

 

SECTION 1.2                                Closing. The closing of the transactions contemplated by this Agreement (the "Closing") will take place commencing at 9:00 Eastern time on the next business day after all the conditions set forth in this Agreement have been satisfied or waived, or such later date as agreed upon by the parties hereto (the "Closing Date").

 

    SECTION 1.3                          Filing of Certificate of Merger. Subject to the provisions of this Agreement, as soon as practicable on the Closing Date, Merger Sub and Gardedam shall cause Certificate of Merger substantially in the form of Exhibit A attached hereto (the "Certificate of Merger") or other appropriate documents, duly executed in accordance with the relevant provisions of the DGCL and to be filed and recorded as required by the DGCL and will take any other further actions in connection therewith as may be required by the DGCL to make the Merger effective. The Merger shall become effective at the later of the time the Certificate of Merger is duly filed or at the effective time set forth in the Certificate of Merger (the "Effective Time").

 

  

EXHIBIT 10.1, 2

  

       SECTION 1.4                             Certain Effects of the Merger.

 

(a)           At the Effective Time, Merger Sub shall be merged with and into Gardedam and the separate existence of Merger Sub shall cease. Gardedam, as the surviving corporation in the Merger, shall thereupon and thereafter possess all the rights, privileges, powers and franchises, of a public or of a private nature, and be subject to all restrictions, liabilities and duties of each of Gardedam and Merger Sub and shall continue its existence as a Mexican corporation.

 

(b)           The parties to this Agreement intend that the Merger shall constitute a tax free "reorganization". Each party to this Agreement hereby agrees to file all tax returns, reports, or other documents, and to act in all other respects, in a manner consistent therewith.

 

SECTION 1.5                           Effect of Merger on Capital Stock.

 

(a)           Cancellation of Gardedam Treasury Stock. At the Effective Time, by virtue of the Merger and without any action on the part of the holders of capital stock of Gardedam or of Merger Sub, each share of Gardedam Common Stock issued and held in the treasury of Gardedam immediately prior to the Effective Time shall cease to be outstanding, shall be canceled and retired without any conversion thereof and without payment of any consideration therefor and shall cease to exist.

 

(b)           Conversion of Gardedam Common Stock.

 

(i)           At the Effective Time, by virtue of the Merger and without any action on the part of the holders of capital stock of Gardedam or of Merger Sub, each share of Gardedam Common Stock issued and outstanding immediately prior to the Effective Time (other than the shares of Gardedam Common Stock being canceled pursuant to Section 1.5(a)), shall be converted into the right to receive, 14.824 shares of Merger Common Stock (the "Merger Ratio") for each share of Gardedam Common Stock without the need to surrender the certificate representing the Gardedam Common Stock.  Any fractional share of Merger Common Stock that would otherwise be issued pursuant to this Agreement shall be rounded up to the nearest whole share of common stock of the Company.

 

(ii)           Each share of Gardedam Common Stock so converted at the Effective Time shall be immediately canceled and retired without need for surrender to the Company and shall cease to exist, and each certificate which theretofore represented shares so converted and canceled shall thereafter cease to have any rights with respect to such shares except the right to receive the Merger Common Stock.

 

(c)           Merger Sub Shares. At the Effective Time, by virtue of the Merger and without any action on the part of the holder thereof, each Merger Sub Share issued and outstanding immediately prior to the Effective Time shall be converted into and become an issued and outstanding share of common stock of the surviving corporation in the Merger so that the Company will be the sole shareholder of Gardedam.

 

(d)           Securities Act Exemption. The Merger Common Stock to be issued in the Merger is intended to be exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"), pursuant to Section 4(2) of the Securities Act and/or Regulation S thereunder and from applicable state securities laws. The Company will use reasonable efforts to facilitate each Gardedam stockholder taking all reasonable actions and executing all necessary documents to qualify the issuance of Merger Common Stock for such exemptions.

 

  

EXHIBIT 10.1, 3

  

 

SECTION 1.6                       Delivery of New Certificates. Promptly after the Effective Time, the Company shall send, by overnight courier, to each record holder of certificates formerly representing all of such holder’s shares of Gardedam Common Stock (the "Old Certificates"), at the address set forth on books of Gardedam, (i) a notice of the effectiveness of the Merger and (ii) a Letter of Transmittal.

 

SECTION 1.7                       No Further Ownership Rights in Gardedam Common Stock. All consideration paid upon the conversion of Gardedam Common Stock shall be deemed to have been paid in full satisfaction of all rights pertaining to the shares of Gardedam Common Stock. At the Effective Time, the stock transfer books of Gardedam shall be closed, and there shall be no further registration of transfers on the stock transfer books of the surviving corporation in the Merger of the shares of Gardedam Common Stock that were outstanding immediately prior to the Effective Time. If, after the Effective Time, certificates representing common stock of Gardedam are presented to the Company for any reason, they shall not be recognized as valid and outstanding.

 

ARTICLE II

 

Representations and Warranties of Gardedam

 

Gardedam represents and warrants to each Party as follows:

 

SECTION 2.1                        Organization; Standing and Power. Gardedam is a corporation duly incorporated, validly existing and in good standing under the laws of Delaware and has all requisite corporate power and authority required to own, lease and operate its properties and to carry on its business as currently being conducted. Copies of the Articles of Incorporation and By-laws, corporate minute books, stock certificate books and stock transfer books of Gardedam have heretofore been delivered to the Company and are true, correct and complete. Gardedam is not required to be qualified or licensed as a foreign corporation in any other jurisdiction to conduct its business as currently conducted.

 

  SECTION 2.2                           Authorization.

 

(a)           Gardedam has all requisite corporate power and authority to execute and deliver this Agreement and, subject to the approval by the stockholders of Gardedam whose consent is required in accordance with the laws of Delaware, to consummate the transactions contemplated by this Agreement.

 

  

EXHIBIT 10.1, 4

  

(b)           Except for the consent and approval of the stockholders of Gardedam, the execution, delivery and performance of the Agreement by Gardedam and the consummation by Gardedam of the transactions contemplated by the Agreement will not require on the part of Gardedam any permit, approval, order or authorization of, or filing or registration with, or allowance by, or consent of or notification to any federal, state or local government or any court, administrative or regulatory agency or commission or other governmental agency or authority, domestic or foreign (a "Governmental Authority") or any individual, partnership, joint venture, corporation, limited liability company, trust, unincorporated organization or other entity (including a Governmental Authority) (a "Person").

 

SECTION 2.3                        Binding Agreement. This Agreement has been duly executed and delivered by Gardedam , and assuming the due execution and delivery of this Agreement by the Company, it constitutes the valid and binding obligation of Gardedam, enforceable against it in accordance with its terms, except to the extent that its enforceability may be limited by bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium, receivership and other similar laws affecting the enforcement of creditors' rights in general and general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

 

SECTION 2.4                        No Conflicts. The execution, delivery and performance of the Agreement by Gardedam and the consummation by Gardedam of the transactions contemplated by the Agreement will not, with or without the giving of notice or lapse of time, or both, violate, conflict with, result in a breach of, constitute a default under or accelerate the performance required by any of the terms, conditions or provisions of (i) the Articles of Incorporation or By-laws of Gardedam or (ii) except for such violations, conflicts, breaches, defaults or accelerations that, individually or in the aggregate, have a material adverse effect on the business of Gardedam, any contract, covenant, agreement or understanding, or any statute, rule, regulation, order, decree, ruling, judgment, arbitration award, law, ordinance or stipulation to which Gardedam is a party or to which it or any of its properties or assets is subject, or result in the creation of any liens, pledges, security interests, charges, equities, options, proxies, voting restrictions, rights of first refusal, encumbrances, restrictions (other than restrictions arising under applicable securities laws) and claims of every kind and character ("Encumbrances") on any of its properties or assets.

 

SECTION 2.5                        Broker's or Finder's Fees. No agent, broker, firm or other Person acting on behalf of Gardedam is, or will be, entitled to any investment banking, commission, broker's or finder's fees from any of the parties hereto, or from any Person controlling, controlled by or under common control with any of the parties hereto, in connection with any of the transactions contemplated by this Agreement.

 

SECTION 2.6                        Capitalization. The outstanding capitalization of Gardedam is set forth on Schedule A annexed hereto. There are issued and outstanding only the Issued Common Shares, all of which are duly authorized and validly issued. No securities of Gardedam are entitled to preemptive or similar rights and no Person has any right of first refusal, right of participation, or any similar right to participate in the transactions contemplated hereby. There are no outstanding options, warrants or other rights to acquire capital stock of Gardedam, and there are no options, warrants, calls, rights, commitments agreements, understandings or arrangements to which Gardedam is a party or by which Gardedam is or may become bound to issue additional shares of capital stock of Gardedam, or securities or rights convertible or exchangeable into shares of capital stock of Gardedam prior to the Effective Time.

 

  

EXHIBIT 10.1, 5

  

SECTION 2.7                        Subsidiaries. Gardedam does not have any subsidiaries, nor does it own any direct or indirect interest in any other business entity.

 

SECTION 2.8                        Financial Statements. Gardedam has furnished the Company with a true and complete copy of (i) the audited balance sheets of Gardedam as of December 31, 2014, and the related audited statements of income and statements of cash flow of Gardedam for the interim period ended September 30, 2015 (the "Financial Statements"). The Financial Statements fairly present in all material respects the financial position, results of operations and other information purported to be shown thereon of Gardedam, at the dates and for the respective periods to which they apply, subject, in the case of the Financial Statements, to normal, immaterial year-end audit adjustments. All such Financial Statements have been reviewed by PLS CPA and are accompanied by their report and were prepared in conformity with United States generally accepted accounting principles ("GAAP") consistently applied throughout the periods involved, and have been adjusted for all normal and recurring accruals.

 

SECTION 2.9                        No Adverse Changes. There has not been any material adverse change in the financial condition of Gardedam from that set forth in the Financial Statements except for (i) transactions in the ordinary course of business since September 30, 2015 and (ii) transactions, including but not limited to the incurring of expenses and liabilities, relating to this Agreement.

 

          SECTION 2.10                         Liabilities; Claims. There are no liabilities (including, but not limited to, tax liabilities) or claims against Gardedam (whether such liabilities or claims are contingent or absolute, direct or indirect, and matured or unmatured) not appearing in the Financial Statements, other than (i) liabilities incurred in the ordinary course of business since September 30, 2015, (ii) taxes accrued on earnings since September 30, 2015 which are not yet due or payable or (iii) other liabilities which do not exceed $5,000 in the aggregate.

 

          SECTION 2.11                         Material Contracts. All written agreements, contracts, letters of intent, arrangements, understandings and commitments to which Gardedam is a party and which are material to Gardedam (collectively, " Gardedam Contracts") are in good standing, valid and effective in accordance with their respective terms, and neither Gardedam nor any other party to a contract has violated any provision of, or committed or failed to perform any act which, with or without notice, lapse of time or both, would constitute a default under the provisions of, any such contract. Gardedam is not a party to or bound by any contract which would prohibit or materially delay the consummation of transactions contemplated by this Agreement. 

 

          SECTION 2.12                           Tax Matters.

 

(a)           All federal, state, county, local and foreign income, excise, property and other tax returns required to be filed by Gardedam have been timely filed and all such duly filed tax returns are true and correct in all material respects. All required taxes, fees or assessments have been paid or an adequate reserve therefore has been established (in accordance with GAAP) in the Financial Statements. The federal income tax returns and state and foreign income tax returns of Gardedam have not been audited by any taxing authority and Gardedam has not received any notice of deficiency or assessment from any taxing authority with respect to liability for taxes which has not been fully paid or finally settled. No state, local, foreign or other taxing authority has proposed in writing any additional taxes, interest or penalties with respect to Gardedam or any of its operations or businesses. There are no pending, or to the knowledge of Gardedam, threatened, tax claims or assessments, and there are no pending, or to the knowledge of Gardedam, threatened, tax examinations by any taxing authorities. Gardedam has not given any waivers of rights (which are currently in effect) under applicable statutes of limitations with respect to taxes of Gardedam for any taxable period. There are no liens for taxes upon the assets of Gardedam except for statutory liens for current taxes not yet due and payable or which may thereafter be paid without penalty or are being contested in good faith. Gardedam has not filed a request for changes in accounting methods within the last three (3) years which change would affect the accounting for tax purposes, directly or indirectly, of its business.

 

  

EXHIBIT 10.1, 6

  

(b)            Gardedam does not have any liability for taxes of any person as a result of being a member of an affiliated, consolidated, combined or unitary group, nor is it bound by any obligation under any tax sharing agreement, tax indemnification agreement or similar contract or arrangement.

 

SECTION 2.13                             Legal Proceedings. There are no legal, administrative, arbitral or other proceedings, claims, suits, actions or governmental investigations of any nature pending, or to Gardedam's knowledge, threatened, directly or indirectly involving Gardedam or its officers, directors, employees or affiliates, which would reasonably be expected to have a material adverse effect on the business of Gardedam or challenging the validity of the transactions contemplated by this Agreement. Gardedam is not a party to any order, judgment, injunction, rule or decree of any Governmental Authority or arbitrator which would reasonably be expected to have a material adverse effect on the business of Gardedam.

 

SECTION 2.14                             Permits; Compliance with Laws. Gardedam has all governmental licenses, authorizations, permits, consents and approvals ("Permits") required to own, lease and operate its properties and to carry on its business as currently conducted. Gardedam: (i) is not in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by Gardedam under), nor has Gardedam received notice of a claim that it is in default under or that it is in violation of, any indenture, mortgage, deed of trust or other agreement, instrument or contract to which Gardedam is a party or by which it or any of its assets or properties are bound (whether or not such default or violation has been waived), (ii) is not in violation of any order of any court, arbitrator or Governmental Authority, (iii) is not and has not been in violation of any law, order, rule, regulation, writ, injunction, judgment or decree of any Governmental Authority having jurisdiction over Gardedam or any of its business or properties, including federal and state securities laws and regulations and (iv) is not in violation of any of its Permits, except where the failure to so comply did not have and would not reasonably be expected to have a material adverse effect on the business of Gardedam.

 

SECTION 2.15                             Intellectual Property. Gardedam owns or possesses adequate rights or licenses to use all trademarks, trade names, service marks, service mark registrations, service names, patents, patent rights, copyrights, original works, inventions, licenses, approvals, governmental authorizations, trade secrets and other intellectual property rights and all applications and registrations therefor (“Intellectual Property Rights”) necessary to conduct their respective businesses as now conducted.  Gardedam has no knowledge of any infringement by Gardedam of intellectual property rights of others.  Gardedam has no knowledge of any claim, action or proceeding being made or brought it or being threatened, against Gardedam regarding their Intellectual Property Rights.  Gardedam has no knowledge of any facts or circumstances which might give rise to any of the foregoing infringements or claims, actions or proceedings.  Gardedam has taken reasonable security measures to protect the secrecy, confidentiality and value of all of its Intellectual Property Rights.

 

  SECTION 2.16                           Related Party Contracts None of the officers, directors, or affiliates of Gardedam is presently a party to any transaction with Gardedam (other than for services as employees, officers and directors), including any loans, leases, agreements, arrangements or understandings outstanding between Gardedam and any of its officers, directors, or affiliates or any person related to or affiliated with any such officers or directors.

 

  

EXHIBIT 10.1, 7

  

SECTION 2.17                           Benefit Plans. Gardedam does not have any pension, retirement, savings, profit sharing, stock-based, incentive compensation or other similar employee benefit plan.

 

ARTICLE III

 

Representations and Warranties Regarding Merger Sub

 

The Company and Merger Sub each jointly and severally represents and warrants to Gardedam as follows with respect to Merger Sub:

 

SECTION 3.1                           Organization; Capitalization. Merger Sub is a duly organized and validly existing corporation in good standing under the laws of Delaware, authorized to issue only the Merger Sub Shares.  There are no issued or outstanding options or warrants to purchase Merger Sub Shares or any issued or outstanding securities of any nature convertible into Merger Sub Shares, or any agreements or understandings to issue any Merger Sub Shares, options or warrants.

 

SECTION 3.2                           Authorization.

 

(a)           Merger Sub has all requisite corporate power and authority to execute and deliver this Agreement and to consummate the transactions contemplated by this Agreement.

 

(b)           Except for the filing of the Articles of Merger and the Certificate of Merger, the execution, delivery and performance of the Agreement by Merger Sub and the consummation by Merger Sub of the transactions contemplated by the Agreement will not require on the part of Merger Sub any permit, approval, order or authorization of, or filing or registration with, or allowance by, or consent of or notification to any Person.

 

        SECTION 3.3                         Binding Agreement. This Agreement has been duly executed and delivered by Merger Sub, and assuming the due execution and delivery of this Agreement by the Company and Merger Sub, constitutes the valid and binding obligation of Merger Sub, enforceable against it in accordance with its terms, except to the extent that its enforceability may be limited by bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium, receivership and other similar laws affecting the enforcement of creditors' rights in general and general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

 

        SECTION 3.4                         No Conflicts. The execution, delivery and performance of the Agreement by Merger Sub and the consummation by Merger Sub of the transactions contemplated by the Agreement will not, with or without the giving of notice or lapse of time, or both, violate, conflict with, result in a breach of, constitute a default under or accelerate the performance required by any of the terms, conditions or provisions of (i) the Certificate of Incorporation or By-laws of Merger Sub or (ii) any statute, rule, regulation, order, decree, ruling, judgment, arbitration award, law, ordinance or stipulation to which Merger Sub or any of its properties or assets is subject, or result in the creation of any Encumbrances on any of its properties or assets.

 

  

EXHIBIT 10.1, 8

  

SECTION 3.5                         Broker's or Finder's Fees. No agent, broker, firm or other Person acting on behalf of Merger Sub is, or will be, entitled to any investment banking, commission, broker's or finder's fees from any of the parties hereto, or from any Person controlling, controlled by or under common control with any of the parties hereto, in connection with any of the transactions contemplated by this Agreement.

 

SECTION 3.6                         No Business Activity; Financial Condition. Merger Sub has been organized solely for the purpose of consummating the Merger and, since its inception, has had no business activity of any nature other than those related to its organization or as contemplated by this Agreement. Merger Sub has no contracts or commitments to which it is a party, except for this Agreement and other documents and instruments contemplated hereby in connection with the Merger. Except for (i) the incurring of expenses of its organization, (ii) the issuance of the Merger Sub Shares to the Company, (iii) the incurring of expenses relating to this Agreement and the consummation of the transactions contemplated by this Agreement and (iv) the consummation of the Merger, Merger Sub has had no financial or other transactions of any nature whatsoever. As of the date hereof, Merger Sub has no subsidiaries.

 

ARTICLE IV

 

 

Representations and Warranties Regarding the Company

 

The Company hereby represents and warrants to Gardedam as follows, except to the extent set forth on the corresponding sections of the schedule of exceptions attached hereto and made a part hereof:

 

SECTION 4.1                           Organization; Standing and Power. The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware and has all requisite corporate power and authority required to own, lease and operate its properties and to carry on its business as currently being conducted. Copies of the Certificate of Incorporation and By-laws, corporate minute books, stock certificate books and stock transfer books of the Company that have heretofore been delivered to Gardedam are true, correct and complete. The Company is not required to be qualified or licensed as a foreign corporation in any other jurisdiction to conduct its business as currently conducted.

 

SECTION 4.2                           Authorization.

 

(a)           The Company has all requisite corporate power and authority to execute and deliver this Agreement and, subject to the approval by the stockholders of the Company whose consent is required in accordance with the laws of the State of Delaware to consummate the Reincorporation and the transactions related thereto, and to consummate the transactions contemplated by this Agreement.

 

(b)           The execution, delivery and performance of the Agreement by the Company and the consummation by the Company of the transactions contemplated by the Agreement will not require on the part of the Company any permit, approval, order or authorization of, or filing or registration with, or allowance by, or consent of or notification to any Person.

 

  

EXHIBIT 10.1, 9

  

SECTION 4.3                           Binding Agreement. This Agreement has been duly executed and delivered by the Company, and constitutes the valid and binding obligation of the Company, enforceable against it in accordance with its terms, except to the extent that its enforceability may be limited by bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium, receivership and other similar laws affecting the enforcement of creditors' rights in general and general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

 

SECTION 4.4                           No Conflicts. The execution, delivery and performance of the Agreement by the Company and the consummation by the Company of the transactions contemplated by this Agreement will not, with or without the giving of notice or lapse of time, or both, violate, conflict with, result in a breach of, constitute a default under or accelerate the performance required by any of the terms, conditions or provisions of (i) the Certificate of Incorporation or By-laws of the Company or (ii) except for such violations, conflicts, breaches, defaults or accelerations that, individually or in the aggregate, have a material adverse effect on the business of the Company, any contract, covenant, agreement or understanding, or any statute, rule, regulation, order, decree, ruling, judgment, arbitration award, law, ordinance or stipulation to which the Company is a party or to which it or any of its properties or assets is subject, or result in the creation of any Encumbrances on any of its properties or assets.

 

SECTION 4.5                           Broker's or Finder's Fees. No agent, broker, firm or other Person acting on behalf of the Company is, or will be, entitled to any investment banking, commission, broker's or finder's fees from any of the parties hereto, or from any Person controlling, controlled by or under common control with any of the parties hereto, in connection with any of the transactions contemplated by this Agreement.

 

        SECTION 4.6                         Capitalization.

 

(a)           The authorized capital stock of the Company consists of 250,000,000 shares of Common Stock.  The Company declares that all such stock, as referred below, is the total amount of stock of the Company and there is no preferred stock or other different from such as above mentioned. All of the issued and outstanding shares of capital stock of the Company have been duly authorized and validly issued and are fully paid and non assessable. All of the issued and outstanding shares of capital stock of the Company have been offered, issued and sold by the Company in compliance with all applicable federal and state securities laws. No securities of the Company are entitled to preemptive or similar rights, and no Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated hereby. There are no outstanding options, warrants or other rights to acquire capital stock of the Company and there are no securities, options, warrants, calls, rights, commitments, agreements, understandings or arrangements to which the Company is a party or by which the Company is or may become bound to issue additional shares of capital stock of the Company, or securities or rights convertible or exchangeable into shares of capital stock of the Company.

 

(b)           There are no outstanding obligations, contingent or otherwise, of the Company to redeem, purchase or otherwise acquire any capital stock or other securities of the Company.

 

  

EXHIBIT 10.1, 10

  

(c)           There are no stockholder agreements, voting trusts or other agreements or understandings to which the Company is a party or by which the Company is bound relating to the voting of any shares of the capital stock of the Company.

 

SECTION 4.7                           Subsidiaries. Other than the Merger Sub, the Company does not have any subsidiaries, nor does it own any direct or indirect interest in any other business entity.

 

SECTION 4.8                           Investment Company/Investment Adviser. The business of the Company does not require it to be registered as an investment company, as such term is defined under the Investment Company Act of 1940, as amended, nor does it require the Company to be registered as an investment adviser, as such term is defined under the Investment Advisers Act of 1940, as amended, or under applicable Delaware State laws.

 

SECTION 4.9                           Assets; Liens. The Company has not acquired any assets, including, without limitation, goodwill, assets, real property, tangible personal property, intangible personal property, rights and benefits under contracts and cash. No Encumbrances exist on any of the Company's assets.

 

SECTION 4.10                           Liabilities; Claims. Except as set forth in all registration statements, prospectuses, reports, schedules, forms, statements and other documents required to be filed by it with the Securities and Exchange Commission (the "SEC") under the Securities Act and the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including pursuant to Section 13(a) or 15(d) thereof, (the foregoing materials being collectively referred to herein as the "SEC Reports"), there are no liabilities (including, but not limited to, tax liabilities) or claims against the Company (whether such liabilities or claims are contingent or absolute, direct or indirect, and matured or unmatured), and there is no existing condition, situation or set of circumstances which could reasonably be expected to result in such a liability or claim.

 

SECTION 4.11                           Legal Proceedings. There are no legal, administrative, arbitral or other proceedings, claims, suits, actions or governmental investigations of any nature pending, or to the Company's knowledge threatened, directly or indirectly involving the Company or its officers, directors or affiliates, including, but not limited to any stockholder claims or derivative actions, or challenging the validity or propriety of the transactions contemplated by this Agreement. The Company is not subject to any order, judgment, injunction, rule or decree of any Governmental Authority or arbitrator.

 

SECTION 4.12                           Insurance. The Company has no casualty and liability policies and other insurance policies.

 

SECTION 4.13                           Intellectual Property. The Company has no patents, patent applications, trademarks, trademark registrations or applications therefore, service marks, service mark registrations or applications therefore, trade names, copyrights, copyright registrations or applications therefore or any other proprietary intellectual property and other rights relating to the foregoing. The Company has no knowledge of any infringements by the Company of any third party's intellectual property.

 

  

EXHIBIT 10.1, 11

  

SECTION 4.14                           Permits; Compliance with Laws. The Company has all Permits required to own, lease and operate its properties and to carry on its business as currently conducted. The Company: (i) is not in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company under), nor has the Company received notice of a claim that it is in default under or that it is in violation of, any indenture, mortgage, deed of trust or other agreement, instrument or contract to which the Company is a party or by which it or any of its assets or properties are bound (whether or not such default or violation has been waived), (ii) is not in violation of any order of any court, arbitrator or governmental body, (iii) is not and has not been in violation of any law, order, rule, regulation, writ, injunction, judgment or decree of any Governmental Authority having jurisdiction over the Company or any of its business or properties, including federal and state securities laws and regulations and (iv) is not in violation of any of its Permits.

 

SECTION 4.15                           Related Party Contracts. Except as set forth in the SEC Reports, none of the officers, directors, or affiliates of the Company is presently a party to any transaction with the Company (other than for services as employees, officers and directors), including any loans, leases, agreements, arrangements or understandings outstanding between the Company and any of its officers, directors, or affiliates or any person related to or affiliated with any such officers or directors.

 

SECTION 4.16                           Employee Matters; Benefit Plans. The Company has no employees and there are no labor disputes, grievances or requests for arbitration. Except for the Stock Award to Steven A Sanders, the Company has no pension, retirement, savings, profit sharing, stock-based, incentive compensation or other similar employee benefit plan.

 

ARTICLE V

 

Representations and Warranties of Dr. Toth, Dr. Sawyer and Mr. Peace.

 

SECTION 5.1                                Dr. Toth represents to Gardedam that (i) he is the sole owner of 13,500,000 of shares of common stock of the Company (the “Toth Shares”), (ii) that no liens, judgments or other instruments exist over the Toth Shares or Dr. Toth that would prevent their return to treasury, (iii) he has executed all documents that are required by the Company’s transfer agent to return the Toth Shares to treasury and delivered the same to the Company’s counsel with instructions that such documents be delivered to the Company’s transfer agent upon the occurrence of the Merger.

 

SECTION 5.2                                Dr. Sawyer represents to Gardedam that (i) he is the sole owner of 1,000,000 of shares of common stock of the Company (the “Sawyer Shares”), (ii) that no liens, judgments or other instruments exist over the Sawyer Shares or Dr. Sawyer that would prevent their return to treasury, (iii) he has executed all documents that are required by the Company’s transfer agent to return the Sawyer Shares to treasury and delivered the same to the Company’s counsel with instructions that such documents be delivered to the Company’s transfer agent upon the occurrence of the Merger.

 

  

EXHIBIT 10.1, 12

  

SECTION 5.3                                Mr. Peace represents to Gardedam that (i) he is the sole owner of 1,000,000 of shares of common stock of the Company (the “Peace Shares”), (ii) that no liens, judgments or other instruments exist over the Peace Shares or Mr. Peace that would prevent their return to treasury, (iii) he has executed all documents that are required by the Company’s transfer agent to return the Peace Shares to treasury and delivered the same to the Company’s counsel with instructions that such documents be delivered to the Company’s transfer agent upon the occurrence of the Merger.

 

ARTICLE VI

 

Non-Survival of Representations, Warranties and Agreements

 

SECTION 6.1                                None of the representations, covenants and warranties contained in this Agreement (including, but not limited to, all statements contained in any certificate or other instrument delivered by or on behalf of the Company, Merger Sub, or Gardedam pursuant hereto or in connection with the transactions contemplated hereby) shall survive the Effective Time, except for the covenants and agreements that by their terms apply or are to be performed in whole or in part after the Effective Time.

 

ARTICLE VII

 

Conditions of Obligations of Merger Sub and the Company

 

The obligation of Merger Sub and the Company to consummate the Merger and other transactions contemplated hereby is subject to the satisfaction or waiver of the following conditions prior to the Closing Date:

 

SECTION 7.1                           Compliance with Representations, Warranties and Covenants. Each of the representations and warranties of Gardedam set forth in this Agreement should be true and correct as the date hereof and as the Closing Date as though made on and as of the Closing Date and Gardedam shall be in compliance with its covenants contained herein in all material respects, and Merger Sub and the Company each shall receive from Gardedam certificates to such effect from an officer of Gardedam as of the Closing Date.

 

SECTION 7.2                           No Material Adverse Change. Except as disclosed in this Agreement or in the Gardedam Schedule of Exceptions, no material adverse change in the aggregate shall have occurred in the financial condition, business, properties, assets, liabilities or results of operations of Gardedam since the last SEC Report .

 

SECTION 7.3                           Filings and Approvals. All applicable filings and regulatory approvals, as well as any other third party approvals, required to be made or obtained by Gardedam shall have been made or obtained.

 

SECTION 7.4                           Stockholder Approvals. This Agreement and the transactions contemplated hereby shall have been approved by appropriate action of the stockholders of Gardedam and resolutions to that effect shall have been delivered to the Company.

 

  

EXHIBIT 10.1, 13

  

SECTION 7.5                           No Claims. No claim, suit, action or other proceeding shall be pending or threatened in writing before or by any court or Governmental Authority against Gardedam that could materially and adversely affect the ability of Gardedam to consummate the transactions contemplated by this Agreement.

 

SECTION 7.6                           No Injunctions, Restraints or Pending Governmental Actions; Illegality. No applicable laws shall have been adopted, promulgated or enforced by any Governmental Authority, and no temporary restraining order, preliminary or permanent injunction or other order issued by a court or other Governmental Authority of competent jurisdiction (an "Injunction") shall be in effect, having the effect of making the Merger illegal or otherwise prohibiting consummation of the Merger. No proceeding initiated by any Governmental Authority seeking, and which is reasonably likely to result in the granting of, an Injunction shall be pending.

 

SECTION 7.7                           Return to Treasury. All documents required by the Company’s transfer agent to return to treasury the Toth Shares, the Sawyer Share and the Peace Shares have been delivered to the Company’s counsel with irrevocable instructions to deliver the same to the Company’s transfer agent upon occurrence of the Merger.

 

ARTICLE VIII

 

Conditions of Obligations of Gardedam

 

The obligations of Gardedam to consummate the Merger are subject to the following conditions prior to the Closing Date:

 

SECTION 8.1                          Compliance with Representations, Warranties and Covenants. Each of the representations and warranties of Merger Sub and the Company set forth in this Agreement (other than those representations and warranties which are made as of a specified date herein) shall be true and correct as of the date hereof and as of Closing Date as though made on and as of the Closing Date and Merger Sub and the Company shall be in compliance with their respective covenants contained herein in all material respects, and Gardedam shall have received from each of Merger Sub and the Company a certificate to such effect from an officer of Merger Sub and the Company, as the case may be, as of the Closing Date.

 

SECTION 8.2                          No Material Transactions. Except as disclosed in this Agreement or pursuant to the Reincorporation, no material transactions shall have been entered into by Merger Sub or the Company, other than transactions in the ordinary course of business, since the most recent SEC Report, except as referred to in this Agreement or in connection herewith, with the prior written consent of Gardedam.

 

SECTION 8.3                          No Material Adverse Change. Except as disclosed in this Agreement or pursuant to the Reincorporation, no material adverse change shall have occurred in the financial condition, business, properties, assets, liabilities or results of operations of Merger Sub or the Company since the most recent SEC Report.

 

  

EXHIBIT 10.1, 14

  

SECTION 8.4                          No Claims. No claim, suit, action or other proceeding shall be pending or threatened in writing before or by any court or Governmental Authority against the Company or Merger Sub that could materially and adversely affect the ability of the Company or Merger Sub to consummate the transaction contemplated by this Agreement.

 

SECTION 8.5                          No Injunctions, Restraints or Pending Governmental Actions; Illegality. No applicable laws shall have been adopted, promulgated or enforced by any Governmental Authority, and no Injunction shall be in effect, having the effect of making the Merger illegal or otherwise prohibiting consummation of the Merger. No proceeding initiated by any Governmental Authority seeking, and which is reasonably likely to result in the granting of, an Injunction shall be pending.

 

SECTION 8.6                          Super 8-K Information. The Company will have prepared and able to file a current report on Form 8-K reporting the merger that is compliant with, and provides the information required under, Items 1.01, 3.02, 5.01, 5.06, 9.01 and any other applicable Item of Form 8-K (the “Super 8-K”) including the necessary financial information and Gardedam will have signed off on the Super 8-K to be filed with 4 days of the Effective Date.

 

ARTICLE IX

Other Covenants

 

SECTION 9.1                           Public Announcements. No press release or announcement concerning this Agreement or the transactions related hereto will be issued by any party without the prior consent of the other parties, except as such release or announcement may be required by law, in which case the party required to make the release or announcement will, to the extent practicable, allow the other party reasonable time to comment on such release or announcement in advance of such issuance.

 

SECTION 9.2                           Further Instruments and Actions. Each party shall deliver such further instruments and take such further action as may be reasonably requested by any other party hereto in order to carry out the intent and purposes of this Agreement.

 

        SECTION 9.3                         Issuance of Stock. Following the Closing, the Company shall issue the Merger Common Stock to the Original Gardedam Shareholders.

 

ARTICLE X

 

Termination or Abandonment

 

SECTION 10.1                             Termination or Abandonment. This Agreement may be terminated and may be abandoned by mutual agreement or by either the Company or Gardedam, by written notice to the other parties hereto, at any time in the event of the failure of any condition in favor of such entity as to which the consummation of the Acquisition is subject. In the event of termination of this Agreement, the same shall become wholly void and of no effect, and there shall be no further liability or obligation hereunder on the part of any of the Constituent Corporations, their respective Boards of Directors or any other party to this Agreement.

 

  

EXHIBIT 10.1, 15

  

ARTICLE XI

 

Miscellaneous

 

SECTION 11.1                           Notices. All notices, requests and other communications to any party hereunder shall be in writing and either delivered personally, emailed or sent by certified or registered mail, postage prepaid,

 

	
If to the Company:

	
2225 East Bayshore Road #223

	
Palo Alto

	
CA 94303

	
USA

	
info@cantabio.com

	
If to Gardedam :

	
2443 Fillmore St #380-8102

	
San Francisco, CA 94115

	
USA

	
gtoth@gardedamtherapeutics.com

or such other address or email address as such party may hereafter specify for the purpose by notice to the other parties hereto. All such notices, requests and other communications shall be deemed received on the date delivered personally or by overnight delivery service or emailed or, if mailed, five (5) business days after the date of mailing.

 

SECTION 11.2                           Amendments; No Waivers.

 

(a)           Any provision of this Agreement with respect to transactions contemplated hereby may be amended or waived if, but only if, such amendment or waiver is in writing and is signed, in the case of an amendment, by the Company and Gardedam; or in the case of a waiver, by the party against whom the waiver is to be effective.

 

(b)           No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law.

 

SECTION 11.3                           Fees and Expenses. Except as otherwise provided in this Agreement, all costs and expenses incident to negotiation, preparation and performance of this Agreement and the transactions contemplated hereby shall be paid by the party incurring such costs and expenses, including, without limitation, fees, expenses and disbursements of their respective financial advisors, accountants and counsel.

 

  

EXHIBIT 10.1, 16

  

SECTION 11.4                           Successors and Assigns. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, but any such transfer or assignment will not relieve the appropriate party of its obligations hereunder.

 

SECTION 11.5                           Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without giving effect to the principles of conflicts of law thereof.

 

SECTION 11.6                           Jurisdiction. Any suit, action or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby may be brought in any federal or state court located in New York County, New York, and each of the Parties hereto consents to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding which is brought in any such court has been brought in an inconvenient forum. Process in any such suit, action or proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any such court. Without limiting the foregoing, each party agrees that service of process on such party as provided in Section 11.1 shall be deemed effective service of process on such party. Each party hereto (including its affiliates, agents, officers, directors and employees) irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.

 

SECTION 11.7                           Counterparts; Effectiveness. This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. This Agreement shall become effective when each party hereto has received counterparts hereof signed by all of the other parties. No provision of this Agreement is intended to confer upon any Person other than the parties hereto any rights or remedies under this Agreement.

 

SECTION 11.8                           Entire Agreement. This Agreement and the attached Exhibits and Schedules constitute the entire agreement between the parties with respect to the subject matter of this Agreement and supersedes all prior agreements and understandings, both oral and written, between the parties with respect to the subject matter of this Agreement.

 

SECTION 11.9                           Consent. Whenever consent is required to be given by any party to any other party hereunder in connection with any matter contemplated hereby, such consent shall not be unreasonably withheld, delayed or conditioned.

 

SECTION 11.10                           Captions. The captions are included for convenience of reference only and shall be ignored in the construction or interpretation of this Agreement.

 

  

EXHIBIT 10.1, 17

  

SECTION 11.11                           Joint Drafting. This Agreement shall be deemed to have been drafted jointly by the parties hereto, and no inference or interpretation against any party shall be made solely by virtue of such party allegedly having been the draftsperson of this Agreement.

 

SECTION 11.12                           Public Announcements. All parties hereto agree that any public announcement, press release or other public disclosure of the signing of this Agreement shall be made jointly and only after all parties hereto have reviewed and approved the language and timing of such disclosure.

 

SECTION 11.13                           Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any parties. Upon such a determination, the parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner in order that the transactions contemplated hereby are consummated as originally contemplated to the fullest extent possible.

 

SECTION 11.14                           Specific Performance. The parties hereto agree that irreparable damage would occur in the event any provision of this Agreement was not performed in accordance with the its terms and that the parties shall be entitled to specific performance of the terms of this Agreement in addition to any other remedy to which they are entitled at law or in equity.

 

[REMAINDER OF THE PAGE INTENTIONALLY LEFT BLANK]

 

 

  

EXHIBIT 10.1, 18

  

IN WITNESS WHEREOF, the parties hereto have made and executed this Agreement as of the day and year first above written.

 

 

	
CANTABIO PHARMACEUTICALS INC.

By: ________________________________

Name:

Title:

	
DR. GERGLEY TOTH

 

By: ________________________________

 

	
GARDEDAM THERAPEUTICS INC.

By: ________________________________

Name:

Title:

	
DR. THOMAS ROGER SAWYER

 

By: ________________________________

 

	
CANTABIO ACQUISITION INC.

By: ________________________________

Name:

Title:

	
SIMON PEACE

 

By: ________________________________

 

 

 

 

 

  

EXHIBIT 10.1, 19

  

SCHEDULE A

 

  

EXHIBIT 10.1, 20

  

Section 2.6 Capitalization – Gardedam Therapeutics [---].

 

	
Authorized Shares of Common Stock:

	
10,000,000

	
Authorized Shares of Preferred Stock:

	
0

	
Outstanding Shares of Common Stock:

	
1,000,000

	
Shares of Common Stock Issuable Upon Exercise of Outstanding Options/Warrants:

	
0

	
Fully-Diluted Common Shares Outstanding:

	
1,000,000

  

EXHIBIT 10.1, 21

  

Exhibit A

STATE OF DELAWARE CERTIFICATE OF MERGER OF DOMESTIC CORPORATIONS

Pursuant to Title 8, Section 251(c) of the Delaware General Corporation Law, the undersigned corporation executed the following Certificate of Merger:

FIRST: The name of the surviving corporation is Gardedam Therapeutics Inc. and the name of the corporation being merged into this surviving corporation is Cantabio Acquisition Inc.

SECOND: The Agreement of Merger has been approved, adopted, certified, executed and acknowledged by each of the constituent corporations.

THIRD: The name of the surviving corporation is Gardedam Therapeutics Inc., a Delaware corporation.

FOURTH: The Certificate of Incorporation of the surviving corporation shall be its Certificate of Incorporation.

FIFTH: The merger is to become effective on the date hereof.

SIXTH: The Agreement of Merger is on file at [Gardedam address], the place of business of the surviving corporation.

SEVENTH: A copy of the Agreement of Merger will be furnished by the surviving corporation on request, without cost, to any stockholder of the constituent corporations.

IN WITNESS WHEREOF, said surviving corporation has caused this certificate to be signed by an authorized officer, the______________ day of ________________,A.D., ________.

By:____________________________________ Authorized Officer Name:____________________________________ Print or Type Title:____________________________________

 

 

EXHIBIT 10.1, 22

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00252-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00252-of-00352.parquet"}]]