Document:

Form 8-K 4.9.15 Ex10.1

Exhibit 10.1
SECOND AMENDMENT TO CREDIT AGREEMENT
THIS SECOND AMENDMENT (this “Amendment”), dated April 7, 2015, is entered into by and between WELLS FARGO BANK, NATIONAL ASSOCIATION (“Bank”), and SKULLCANDY, INC., a Delaware corporation (“Borrower”).
RECITALS
Borrower and Bank are parties to a Credit Agreement dated August 19, 2013 (as amended from time to time, the “Credit Agreement”).  Capitalized terms used in these recitals have the meanings given to them in the Credit Agreement unless otherwise specified.
Borrower has requested that certain amendments be made to the Credit Agreement, which Bank is willing to make pursuant to the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements herein contained, it is agreed as follows:
1.Defined Terms.  Capitalized terms used in this Amendment which are defined in the Credit Agreement shall have the same meanings as defined therein, unless otherwise defined herein.
2.Section 5.2 of the Credit Agreement is hereby amended and restated to read in its entirety as follows:
3.“5.2.    CAPITAL EXPENDITURES.  Make any additional investment in fixed assets in (a) Borrower’s fiscal year 2015 in excess of an aggregate of $19,000,000, (b) Borrower’s fiscal year 2016 in excess of an aggregate of $23,000,000 and (c) any of Borrower’s fiscal years thereafter in excess of an aggregate of $15,000,000, in each case measured on a consolidated basis; provided, however, that if the amount of investments in fixed assets permitted to be made in any fiscal year under this Section 5.2 is greater than the actual amount of investments in fixed assets actually made in such fiscal year (the amount by which such permitted investments in fixed assets for such fiscal year exceeds the actual amount of investments in fixed assets for such fiscal year, the “Excess Amount”), then such Excess Amount may be carried forward to the next succeeding fiscal year (the “Succeeding Fiscal Year”); provided further that the Excess Amount carried over into a particular Succeeding Fiscal Year may not be used in that fiscal year until the amount permitted under this Section 5.2 to be expended in such fiscal year has first been used in full and the Excess Amount carried over into a particular Succeeding Fiscal Year may not be carried forward to another fiscal year.”
4.No Other Changes.  Except as specifically provided herein, all terms and conditions of the Credit Agreement shall remain in full force and effect, without waiver or modification.  
5.Conditions Precedent.  This Amendment shall be effective when Bank shall have received an executed original hereof, together with each of the following, each in substance and form acceptable to Bank in its discretion:
(a)The Acknowledgment and Agreement of Guarantors set forth at the end of this Amendment, duly executed by AG Acquisition Corporation and Skullcandy North America, LLC (each a “Guarantor”).
(b)Such other matters as Bank may require.

6.Representations and Warranties.  Borrower hereby represents and warrants to Bank as follows:
(a)Borrower has all requisite power and authority to execute this Amendment and any other agreements or instruments required hereunder and to perform all of its obligations hereunder and thereunder, and each of this Amendment and all such other agreements and instruments has been duly executed and delivered by Borrower and constitutes the legal, valid and binding agreement and obligation of Borrower, enforceable against Borrower in accordance with its respective terms, except as enforcement may be limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or limiting creditors’ rights generally.
(b)The execution, delivery and performance by Borrower of this Amendment and any other agreements or instruments required hereunder have been duly authorized by all necessary corporate action and do not (i) require any authorization, consent or approval by any governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign or any of Borrower’s interest holders, other than authorizations, consents or approvals that have been obtained and that are still in force and effect, (ii) violate any provision of any law, rule or regulation or of any order, writ, injunction or decree presently in effect, having applicability to Borrower, or the certificate of incorporation or bylaws of Borrower, (iii) contravene any provision of Borrower’s organization documents, (iv) result in a material breach of or constitute a material default under any contract, obligation or any other agreement, lease or instrument to which Borrower is a party or by which it or its properties may be bound or affected or (v) result in or require the creation or imposition of any lien or other encumbrance of any nature whatsoever upon any assets of Borrower.
(c)Borrower hereby remakes all representations and warranties contained in the Credit Agreement and all of the representations and warranties contained in Article II of the Credit Agreement are correct on and as of the date hereof as though made on and as of such date, except to the extent that such representations and warranties relate solely to an earlier date.
7.References; Affirmation.  All references in the Credit Agreement to “this Agreement” shall be deemed to refer to the Credit Agreement as amended hereby; and any and all references in the Loan Documents to the Credit Agreement shall be deemed to refer to the Credit Agreement as amended hereby.  Borrower hereby reaffirms all covenants set forth in the Loan Documents.  The existing Loan Documents, except as amended by this Amendment or, as applicable, as amended (or amended and restated) by a separate agreement or instrument in connection herewith, shall remain in full force and effect, and each of them is hereby ratified and confirmed by Borrower and Bank.  Borrower and Bank intend that this Amendment shall not in any manner (a) constitute the refinancing, refunding, payment or extinguishment of the Line of Credit or other obligations of Borrower evidenced by the existing Loan Documents; (b) be deemed to evidence a novation of the outstanding balance of the Line of Credit or other obligations of Borrower; or (c) affect, replace, impair, or extinguish the creation, attachment, perfection or priority of the liens or other encumbrances on any collateral granted pursuant to the Credit Agreement or any of the other Loan Documents evidencing, governing or creating liens or other encumbrances on any collateral.  This Amendment and the Credit Agreement shall be read together, as one document. Borrower further certifies that as of the date of this Amendment there exists no Event of Default, nor any condition, act or event which with the giving of notice or the passage of time or both would constitute any such Event of Default.
8.No Waiver.  The execution of this Amendment and the acceptance of all other agreements and instruments related hereto shall not be deemed to be a waiver of any default or Event of Default under the Credit Agreement or a waiver of any breach, default or event of default under any Loan Document or other document held by Bank, whether or not known to Bank and whether or not existing on the date of this Amendment.
9.General Release.  In consideration of the benefits provided to Borrower under the terms and provisions hereof, Borrower and each Guarantor hereby agree as follows (“General Release”):

(a)Borrower and each Guarantor, for itself and on behalf of its respective successors and assigns, do hereby release, acquit and forever discharge Bank, all of Bank’s predecessors in interest, and all of Bank’s past and present officers, directors, attorneys, affiliates, employees, and agents, of and from any and all claims, demands, obligations, liabilities, indebtedness, breaches of contract, breaches of duty or of any relationship, acts, omissions, misfeasance, malfeasance, causes of action, defenses, offsets, debts, sums of money, accounts, compensation, contracts, controversies, promises, damages, costs, losses and expenses, of every type, kind, nature, description or character, whether known or unknown, suspected or unsuspected, liquidated or unliquidated, each as though fully set forth herein at length (each, a “Released Claim” and collectively, the “Released Claims”), that Borrower or any Guarantor now has or may acquire as of the later of:  (i) the date this Amendment becomes effective through the satisfaction (or waiver by Bank) of all conditions hereto; or (ii) the date that Borrower and each Guarantor have executed and delivered this Amendment to Bank (hereafter, the “Release Date”), including without limitation, those Released Claims in any way arising out of, connected with or related to any and all prior credit accommodations, if any, provided by Bank, or any of Bank’s predecessors in interest, to Borrower or any Guarantor, and any agreements, notes or documents of any kind related thereto or the transactions contemplated thereby or hereby, or any other agreement or document referred to herein or therein.
(b)Borrower and each Guarantor hereby acknowledge, represent and warrant to Bank that they agree to assume the risk of any and all unknown, unanticipated or misunderstood defenses and Released Claims which are released by the provisions of this General Release in favor of Bank, and Borrower and each Guarantor hereby waive and release all rights and benefits which they might otherwise have under any state or local laws or statutes with regard to the release of such unknown, unanticipated or misunderstood defenses and Released Claims.
(c)Borrower and each Guarantor hereby acknowledge that each of them has had an opportunity to obtain a lawyer’s advice concerning the legal consequences of each of the provisions of this General Release.
(d)Borrower and each Guarantor hereby specifically acknowledge and agree that:  (i) none of the provisions of this General Release shall be construed as or constitute an admission of any liability on the part of Bank; (ii) the provisions of this General Release shall constitute an absolute bar to any Released Claim of any kind, whether any such Released Claim is based on contract, tort, warranty, mistake or any other theory, whether legal, statutory or equitable; and (iii) any attempt to assert a Released Claim barred by the provisions of this General Release shall subject Borrower and each Guarantor to the provisions of applicable law setting forth the remedies for the bringing of groundless, frivolous or baseless claims or causes of action.
10.Costs and Expenses.  Borrower hereby reaffirms its agreement under the Credit Agreement to pay or reimburse Bank on demand for all costs and expenses incurred by Bank in connection with the Loan Documents, including without limitation all reasonable fees and disbursements of legal counsel.  Without limiting the generality of the foregoing, Borrower specifically agrees to pay all fees and distributions of counsel to Bank for the services performed by such counsel in connection with the preparation of this Amendment and the documents and instruments incidental hereto.
11.Governing Law.  This Amendment shall be governed by and construed in accordance with the laws of the State of New York.
12.Miscellaneous.  This Amendment and the Acknowledgment and Agreement of Guarantors may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute but one and the same agreement.  Delivery of an executed counterpart of this Amendment by telefacsimile or other electronic method of transmission shall be equally as effective as delivery of an original executed counterpart of this Amendment.  Any party delivering an executed counterpart of this Amendment by telefacsimile or other electronic method of transmission also shall 

deliver an original executed counterpart of this Amendment but the failure to deliver an original executed counterpart shall not affect the validity, enforceability, and binding effect of this Amendment.

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date first above written.
	
		
	WELLS FARGO BANK, NATIONAL ASSOCIATION

By:  /s/ Alex Tanner
Name:  Alex Tanner
Title:  Vice President
	SKULLCANDY, INC.

By:  /s/ Jason Hodell
Name:  Jason Hodell
Title:  Chief Financial Officer

ACKNOWLEDGMENT AND AGREEMENT OF GUARANTORS
Each of the undersigned, each a guarantor of the indebtedness of Skullcandy, Inc. (“Borrower”) to Wells Fargo Bank, National Association (“Bank”), pursuant to a Continuing Guaranty dated August 19, 2013 (each, a “Guaranty”), hereby (i) acknowledges receipt of the foregoing Amendment; (ii) consents to the terms (including without limitation the release set forth in Paragraph 8 of the Amendment) and execution thereof; (iii) reaffirms (A) all obligations to Bank pursuant to the terms of its Guaranty and the terms of the Third Party Security Agreement dated as of August 19, 2013 (each, a “Security Agreement”) between it and Bank, (B) its waivers of each and every one of the defenses to such obligations as set forth in its Guaranty and/or its Security Agreement, and (C) that its obligations under its Guaranty and its Security Agreement are separate and distinct from the obligations of any other party under the foregoing Amendment and the other Loan Documents; (iv) acknowledges that the “Indebtedness” (as defined in its Security Agreement) and obligations secured by its Security Agreement include all obligations of the undersigned under its Guaranty, and that the term “Guaranty” as referenced in its Security Agreement includes its Guaranty; and (v) acknowledges that (A) the term “Loan Documents” as used in its Guaranty means such documents as they may be amended or otherwise modified and (B) Bank may amend, restate, extend, renew or otherwise modify the Credit Agreement, any Loan Document and any other instrument or agreement of Borrower, or enter into any agreement or extend additional or other credit accommodations, without notifying or obtaining the consent of the undersigned and without impairing the liability of the undersigned under its Guaranty for all of Borrower’s present and future indebtedness to Bank.

	
		
	 
	AG ACQUISITION CORPORATION

By:  /s/ Jason Hodell
Name:  Jason Hodell
Title:  Chief Financial Officer

	 
	SKULLCANDY NORTH AMERICA, LLC

By:  /s/ Jason Hodell
Name:  Jason Hodell
Title:  Chief Financial OfficerExhibit 10.1

 

Form of Stock Purchase Agreement

 

STOCK
PURCHASE AGREEMENT

 

by and among

 

ENGAGE
INTERNATIONAL TECHNOLOGY CO., LTD.

 

and

 

James
S. Byrd, Jr.

 

Douglas
S. Hackett

 

AND

 

Engage
Mobility, Inc.

 

Dated as of April 9, 2015

 

    	 

    	 

    

 

STOCK
PURCHASE AGREEMENT

 

THIS STOCK PURCHASE
AGREEMENT (this “Agreement”), dated as of April 9, 2015, is made and entered into by and among ENGAGE INTERNATIONAL
TECHNOLOGY CO., LTD., a company incorporated under the laws of Hong Kong Special Administrative Region of China (the “Buyer”);
james s. Byrd, jr. (“Byrd”) and douglas
s. Hackett (“Hackett”) (hereinafter sometimes individually referred to as a “Seller”
and collectively as the “Sellers”); and ENGAGE MOBILITY, INC., a Florida corporation (“ENGA”
or the “Company”).

 

WHEREAS, Byrd and
Hackett are the record and beneficial owners of 1,600,000 shares and 15,162,505 shares, respectively, of the Company’s Common
Stock, which collectively represent approximately 76.99% of the Company outstanding Common Stock; and

 

WHEREAS, upon the
terms and subject to the conditions set forth in this Agreement, the Sellers are willing to sell to the Buyer;

 

NOW, THEREFORE,
in consideration of the premises and the mutual promises herein made, and in consideration of the representations, warranties,
and covenants herein contained, the Parties agree as follows:

 

ARTICLE I

DEFINITIONS

 

1.1          Definitions.
The following terms shall have the following meanings for the purposes of this Agreement.

 

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

 

“Agreement”
means this Stock Purchase Agreement, as it may be amended from time to time.

 

“Bankruptcy
Event” means the occurrence of any of the following: (i) the Company or the Buyer shall commence any case, proceeding
or other action (A) under any existing or future law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency,
reorganization or relief of debtors, seeking to have an order for relief entered with respect to it, or seeking to adjudicate it
a bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, winding-up, liquidation, dissolution, composition
or other relief with respect to it or its debts, or (B) seeking appointment of a receiver, receiver-manager, trustee, custodian,
conservator or other similar official for it or for all or any substantial part of its assets, or the Company or the Buyer shall
make a general assignment for the benefit of its creditors; or (ii) there shall be commenced against the Company or the Buyer
any case, proceeding or other action of a nature referred to in clause (i) above which (A) results in the entry of an
order for relief or any such adjudication or appointment or (B) remains undismissed, undischarged or unbonded for a period
of sixty (60) days; or (iii) there shall be commenced against the Company
or the Buyer any case, proceeding or other action seeking issuance of a warrant of attachment, execution, distraint or similar
process against all or any substantial part of their assets which results in the entry of an order for any such relief which shall
not have been vacated, discharged, or stayed or bonded pending appeal within sixty (60) days
from the entry thereof; or (iv) the Company
or the Buyer shall take any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the
acts set forth in clause (i), (ii), or (iii) above; or (v) the Company or the Buyer shall generally not, or shall be
unable to, or shall admit in writing their inability to, pay its debts as they become due.

 

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“Business”
means selling mobile technology, marketing and data products and services.

 

“Business
Day” shall mean each day of the week, other than Saturday, Sunday or other national holiday on which banks in New York
State are not open for business.

 

“Buyer”
shall mean Engage International Technology Co., Ltd., a Hong Kong company.

 

“Closing”
has the meaning set forth in Section 2.2 below.

 

“Closing
Date” has the meaning set forth in Section 2.2 below.

 

“Code”
means the Internal Revenue Code of 1986, as amended.

 

“Common
Stock” means the common stock, without par value, of the Company.

 

“Company”
or “ENGA” means Engage Mobility, Inc., a Florida corporation.

 

“Contract”
means any contract, lease, commitment, understanding, sales order, purchase order, agreement, indenture, mortgage, note, bond,
right, warrant, instrument, plan, permit or license, whether written or oral, which is intended or purports to be binding and enforceable.

 

“Dollars”
or “$” means United States dollars.

 

“Fully-Diluted
Equity” shall mean, with respect to any Person on any given date, the number or percentage of the outstanding common
stock or other equity securities of such Person on such date, after giving effect to (i) the exercise of all outstanding options,
warrant or other securities or purchase rights entitling the holder to acquire shares of common stock or other equity securities
of such Person, and the (ii) conversion into common stock or other equity securities of such Person of all outstanding notes, debentures,
preferred stock or other securities convertible into such common stock or equity securities.

 

“Intellectual
Property” means (a) all inventions (whether patentable or unpatentable and whether or not reduced to practice), all improvements
thereto, and all patents, patent applications, and patent disclosures, together with all reissuances, continuations, continuations-in-part,
revisions, extensions, and reexaminations thereof, (b) all trademarks, service marks, trade dress, logos, trade names, and corporate
names, together with all translations, adaptations, derivations, and combinations thereof and including all goodwill associated
therewith, and all applications, registrations, and renewals in connection therewith, (c) all copyrightable works, all copyrights,
and all applications, registrations, and renewals in connection therewith, (d) all mask works and all applications, registrations,
and renewals in connection therewith, (e) all trade secrets and confidential business information (including ideas, research and
development, know-how, formulas, compositions, manufacturing and production processes and techniques, technical data, designs,
drawings, specifications, customer and supplier lists, pricing and cost information, and business and marketing plans and proposals),
(f) all computer software (including data and related documentation), (g) all other proprietary rights, and (h) all copies and
tangible embodiments thereof (in whatever form or medium).

 

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“Liability”
means any liability or obligation, including all actions, suits, proceedings, hearings, investigations, charges, complaints, claims,
demands, injunctions, judgments, orders, decrees, rulings, damages, dues, penalties, fines, costs, amounts paid in settlement,
obligations, Taxes, Liens, losses, expenses, and fees (including court costs and reasonable and documented attorneys’ fees
and expenses), but excluding incidental, consequential (including business interruption or lost profits), special, indirect and
punitive damages and other similar items. Liabilities shall not be calculated using a “multiplier” of any similar method
having a similar effect.

 

“Lien”
means any mortgage, lien (except for any lien for Taxes not yet due and payable), charge, restriction, pledge, security interest,
option, lease or sublease, claim, covenant, easement, encroachment or encumbrance.

 

“Material
Adverse Effect” means any event or condition which would have a material adverse effect upon the assets, Liabilities,
financial condition or Business of the Company, other than any circumstances, developments or matters (i) any change in economic
conditions generally or capital and financial markets generally, including changes in interest or exchange rates, (ii) any
change in the industry in which the Business operates or in which products of the Business are used or distributed, provided that
such change does not have a disproportionate impact on the Company, or (iii) conditions in jurisdictions in which the Business
operates, including hostilities, acts of war, sabotage, terrorism or military actions, or any escalation or worsening of any of
the foregoing.

 

“Ordinary
Course of Business” means the ordinary course of business consistent with past custom and practice (including with respect
to quantity and frequency).

 

“Parties”
shall mean the collective reference to each of the Company, the Buyer and the Sellers.

 

“Person”
means and includes any individual, corporation, limited liability company, partnership, limited partnership, joint stock company,
trust, unincorporated organization, joint venture, governmental agency or other entity of whatever nature.

 

“Seller”
or “Sellers” means the individual or collective reference to Byrd and Hackett and their respective heirs, executors,
successors and assigns.

 

    	3

    	 

    

 

“Subject
Shares” means that 14,962,505 shares of Common Stock owned by Hackett and 1,500,000 of Common Stock owned by Byrd.

 

“Subsidiary”
means any corporation or other Person more than fifty percent of the capital stock or other equity of which is owned by the Company.

 

“Taxes”
means all taxes, charges, fees, duties, levies or other assessments in the nature of taxes, including, without limitation, income,
gross receipts, net proceeds, ad valorem, turnover, real and personal property (tangible and intangible), sales, use, franchise,
excise, value added, license, payroll, unemployment, environmental, customs duties, capital stock, disability, stamp, leasing,
lease, user, transfer, fuel, excess profits, occupational and interest equalization, windfall profits, severance and employees’
income withholding and Social Security taxes imposed by the United States or any foreign country or by any Governmental Authority,
including all applicable penalties and interest, and such term shall include any interest, penalties or additions to tax attributable
to such taxes.

 

“Tax Return”
means any return, declaration, report, claim for refund, or information return or statement relating to Taxes, including any schedule
or attachment thereto, and including any amendment thereof.

 

“Transaction
Documents” means the collective reference to this Agreement, and any and all other certificates, instruments and related
documents delivered by the Parties on the Closing Date.

 

ARTICLE II

PURCHASE AND SALE OF SUBJECT SHARES

 

2.1          Purchase
Price. In consideration for the Subject Shares, the Buyer shall pay to the Sellers, the total sum of Fifty Thousand Dollars
($50,000), which includes a total of Four Thousand Three Hundred and Sixty Seven Dollars and Forty Seven Cents ($4,555.81) to Byrd
and a total of Forty Five Thousand Six Hundred and Thirty Two Dollars and Fifty Three Cents ($45,444.19) to Hackett (the “Purchase
Price”). The Purchase Price shall be payable on the Closing Date to each of the Sellers. Such Purchase Price shall be
payable by wire transfers to separate bank accounts designated by each of the Sellers.

 

2.2          The
Closing. The closing of the transactions contemplated by this Agreement (the “Closing”) shall take place
at Radisson Martinique on Broadway, 49 W 32nd St, New York, NY 10001, commencing at 10:30 a.m. local time on April 9, 2015 or such
other date as the Parties may mutually determine (the “Closing Date”); provided, that without the prior written
consent of the Sellers in no event shall the Closing Date occur later than April 15, 2015 (the “Outside Closing Date”).

 

2.3          Closing
Deliveries by Sellers and the Company. On the Closing Date, the Sellers and the Company shall deliver to the Buyer duly
executed stock powers and the Subject Shares;

 

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ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND THE SELLERS

 

The Company and
the Sellers hereby, severally and not jointly, represent and warrant to the Buyer that the statements contained in this Article
III are correct and complete as of the date of this Agreement and will be correct and complete as of the Closing Date (as though
made then and as though the Closing Date were substituted for the date of this Agreement throughout this Article III), except
as set forth in the Schedules hereto. An item disclosed in any Schedule shall be deemed disclosed for purposes of all Schedules.

 

3.1          Organization,
Qualification and Corporate Power. ENGA is a corporation duly organized, validly existing, and in good standing under the Laws
of the State of Florida. The Company has full corporate power and authority and all licenses, permits, and authorizations necessary
to carry on the Business in which it is engaged and to own and use the properties owned and used by it.

 

3.2          Authorization
of Transaction. Each of ENGA and the Sellers has full power and authority (including full corporate power and authority) to
execute and deliver this Agreement and to perform its obligations hereunder and under the other Transaction Documents. This Agreement
and the other Transaction Documents to which it or they are a party constitutes the valid and legally binding obligation of each
of ENGA and the Sellers, enforceable in accordance with its terms and conditions except as limited by applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, and
by laws related to the availability of specific performance, injunctive relief or other equitable remedies.

 

3.3          Noncontravention.
Neither the execution and the delivery of this Agreement, nor the consummation of the transactions contemplated hereby, will (a)
violate any material law or other material restriction of any governmental authority to which ENGA or a Seller is subject or any
provision of the organizational documents of ENGA, or (b) conflict with, result in a breach of, constitute a default under, result
in the acceleration of, create in any third party the right to accelerate, terminate, modify, or cancel, or require any notice
or consent under any material Contract or other material arrangement to which ENGA is a party or by which it is bound or to which
any of its assets are subject, or (c) result in the imposition of any Lien upon any of its assets.

 

3.4          Subject
Shares. The Sellers hold of record and own beneficially all of the Subject Shares, free and clear of any restrictions on transfer
(other than any restrictions under the Securities Act and state securities Laws), Taxes, Liens, options, warrants, purchase rights,
Contracts, commitments, equities, claims, and demands. Neither ENGA nor a Seller is a party to any option, warrant, purchase right,
or other Contract or commitment that could require the sale, transfer, or other disposition of any Subject Shares (other than this
Agreement). Neither ENGA nor a Seller is a party to any voting trust, proxy, or other agreement or understanding with respect to
the voting of any Subject Shares.

 

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3.5          Capitalization

 

(a)            
The entire authorized capital stock of the Company consists of 100,000,000 shares of Common Stock, of which 21,982,667 shares
of Common Stock are issued and outstanding. No shares are held in treasury. All of the Subject Shares are duly authorized, validly
issued, fully paid, and nonassessable, and are held of record by the Sellers. There are no outstanding or authorized options, warrants,
purchase rights, subscription rights, conversion rights, exchange rights, or other Contracts or commitments that could require
the Company to issue, sell, or otherwise cause to become outstanding any of the Common Stock. There are no outstanding or authorized
share appreciation, phantom share, profit participation, or similar rights with respect to the Common Stock. There are no voting
trusts, proxies, or other agreements or understandings with respect to the voting of the Common Stock.

 

(b)           
The assignments and other instruments of transfer delivered by the Sellers to Buyer at the Closing will be sufficient to transfer
the Sellers’ entire interest, legal and beneficial, in the Subject Shares and, upon payment in full of the Purchase Price,
the Buyer shall acquire all right, title and interest in and to the Subject Shares.

 

3.6          Debt,
Obligation or Liability. The Company has no debt, obligation or liability (whether accrued, absolute, contingent, liquidated
or otherwise, whether due or to become due, whether or not known to the Company and the Sellers) arising out of any transaction
entered into at or prior to the Closing Date or any act or omission at or prior to the Closing Date, except to the extent set forth
on or reserved against on the Company’s Balance Sheet filed with the Securities and Exchange Commission or set forth under
Schedule 3.6 herein. Any and all debts, obligations or liabilities with respect to directors and officers of the Company
and of the Company will be cancelled and resolved within three (3) business days of the Closing with the proceeds the Company received
from the Buyer under a separate Subscription Agreement dated April 9, 2015 (the “Subscription Agreement”) (in the form
and substance as set forth in Exhibit A attached hereto). The Company and the Sellers, severally and not jointly, represent
and warrant to the Buyer: 1) Schedule 3.6 contains a list of all debts, obligations or liabilities of the Company as of
the Closing Date; 2) any debts, obligations or liabilities of the Company incurred before the Closing Date but not listed under
Schedule 3.6 shall be the responsibilities of the Sellers; and 3) the proceeds received under the Subscription Agreement
are adequate to pay off debts, obligations or liabilities listed under Schedule 3.6 and the Sellers shall be responsible
for any remaining debts, obligations or liabilities exceeding the proceeds. The Company has not incurred any liabilities or obligations
under agreements entered into, in the usual and ordinary course of business.

 

3.7          Subsidiaries.
The Company has no Subsidiaries, either wholly or partially owned, and the Company holds no any direct or indirect economic, voting
or management interest in any Person or owns any securities issued by any Person.

 

3.8          Legal
Compliance. Except where non-compliance would not have a Material Adverse Affect, ENGA has complied with all applicable laws
and, to the knowledge of the Sellers and the Company, no action, suit, proceeding, hearing, investigation, charge, complaint, claim,
demand, or notice has been filed or commenced against the Company or is contemplated by any legal or regulatory agency of the United
States or any state government.

 

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3.9          Tax
Matters. Except where non-compliance with any of the following would not have a Material Adverse Effect:

 

(a)          ENGA has duly and timely filed all Tax Returns that it have been required to file for all periods through and including the Closing
Date. All such Tax Returns were correct and complete in all material respects. All material Taxes owed by ENGA have been timely
paid. To the knowledge of the Sellers, there are no material Liens on any of the assets of ENGA that arose in connection with any
failure (or alleged failure) to pay any Tax.

 

(b)          During the preceding three years, none of such Tax Returns has been audited or investigated by the Internal Revenue Service for
any taxable year for which the applicable statute of limitations has not expired. To the knowledge of the Sellers, no issues have
been raised in any examination by the Internal Revenue Service Authority with respect to the Business of the Company which, by
application of similar principles, reasonably could be expected to result in a proposed adjustment to the Liability for Taxes for
any other period not so examined.

 

(c)          The Company and the Sellers have delivered or made available to the Buyer correct and complete copies of all material federal,
state, local and foreign income Tax Returns, examination reports, and statements of deficiencies assessed against or agreed to
by ENGA for taxable periods for which the applicable statute of limitations has not expired.

 

(d)          ENGA has withheld and paid all material Taxes required to have been withheld and paid, including without limitation, sales and
use taxes, and all Taxes in connection with amounts paid or owing to any employee, independent contractor, creditor, stockholder,
or other third party.

 

3.10        Intellectual Property. Except where non-compliance with any of the following would not have a Material Adverse Effect:

 

(a)          ENGA owns or has the right to use pursuant to Contract or permission all Intellectual Property necessary for the operation of the
Business as presently conducted.

 

(b)          ENGA has not interfered with, infringed upon, misappropriated, or otherwise come into conflict with any material Intellectual Property
rights of third Parties, and ENGA has not received any written charge, complaint, claim, demand, or notice alleging any such interference,
infringement, misappropriation, or violation. No third party has interfered with, infringed upon, misappropriated, or otherwise
come into conflict with any Intellectual Property rights of ENGA.

 

(c)          With respect to each item of Intellectual Property owned or used by the Company:

 

(i)           ENGA possesses all right, title, and interest in and to the item, free and clear of any Lien, license, or other restriction;

 

(ii)          the item is not subject to any outstanding injunction, judgment, order, decree, ruling, or charge; and

 

    	7

    	 

    

 

(iii)         no action, suit, proceeding, hearing, investigation, charge, complaint, claim, or demand is pending or threatened which challenges
the legality, validity, enforceability, use, or ownership of the item.

 

3.11        Litigation. Except as disclosed in Schedule 3.11, neither ENGA nor the Sellers is subject to any outstanding litigation,
injunction, judgment, order, decree, ruling, or charge or is a party or, to the Knowledge of the Sellers or the Company, is threatened
to be made a party to any action, suit, proceeding, hearing, or investigation of, in, or before any governmental agency or before
any arbitrator.

 

3.12        Indemnity. The Sellers and the Company shall severally and jointly, indemnify, defend and hold harmless the Buyer and its
directors, officers, employees, Affiliates and assigns (each, a “Indemnified Party”) from and against any losses, liabilities,
damages, costs, or expenses (including interest, penalties and reasonable attorneys’ fees and disbursements) (collectively,
“Losses”) sustained or incurred by such Indemnified Party relating to, caused by or resulting from: (a) any breach
of any representation or warranty of the Sellers contained in this Agreement or in any certificate or schedule delivered by the
Sellers pursuant to this Agreement; (b) any breach of, or failure to satisfy, any covenant or obligation of the Sellers in this
Agreement or in any other certificate or document delivered by the Sellers pursuant to this Agreement.

 

3.13        Resignations by the Sellers. Byrd is currently the Chairman of the Board of Directors of the Company, and Hackett is the
President, Chief Executive Officer, Chief Financial Officer, Secretary, Treasurer and Director of the Company. Byrd and Hackett
agree that they shall tender their resignation from all positions on the Company’s Board and/or as executive officers of
the Company, effective immediately on the Closing Date. On the Closing Date, the Buyer shall appoint new members on the Board of
the Company and new executive officers of the Company.

 

3.14        Rental Expenses. The Company is currently under a lease for its office space and subject to a monthly rent payment of $2,800.
The Sellers agree to use their best efforts to seek sub-tenant for the office space within 90 days of the Closing Date in order
to reduce the monthly rent expenses by approximately half. The Sellers warrant and guarantee to the Buyer that should they be unable
to find a sub-tenant they shall be personally responsible for half of the rent expenses the Company is subject to pay each month
after 90 days of the Closing Date until the expiration of the lease in approximately two years.

 

3.15        Website Maintenance. Hackett agrees, through his company, to help the Company maintain its corporate website by hosting the website
on a shared hosting server without any charge. Designees of the Buyer shall have full access to the website and make modifications
without restriction from Hackett. At the Buyer’s request, Hackett shall render control and maintenance of the website and
hosting to Buyer promptly within three (3) business days.

 

    	8

    	 

    

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE BUYER

 

The Buyer represents
and warrants to ENGA and the Sellers that the statements contained in this Article IV are correct and complete as of the
date of this Agreement and will be correct and complete as of the Closing Date (as though made then and as though the Closing Date
were substituted for the date of this Agreement throughout this Article IV).

 

4.1          Organization
of the Buyer. The Buyer is a company duly organized, validly existing, and in good standing under the laws of Hong Kong Special
Administration Region of People’s Republic of China. The Buyer has supplied the Sellers with copies of its organizational
documents.

 

4.2          Authorization
of Transaction. The Buyer has full power and authority (including full corporate power and authority) to execute and deliver
this Agreement and to perform its obligations hereunder and under the other Transaction Documents. This Agreement and the other
Transaction Documents to which it or they are a party constitutes the valid and legally binding obligation of the Buyer, enforceable
in accordance with its terms and conditions, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium
and other laws of general application affecting enforcement of creditors’ rights generally, and by laws related to the availability
of specific performance, injunctive relief or other equitable remedies. The Buyer needs not give any notice to, make any filing
with, or obtain any authorization, consent, or approval of any governmental authority in order to consummate the transactions contemplated
by this Agreement.

 

4.3          Noncontravention.
Neither the execution and the delivery of this Agreement, nor the consummation of the transactions contemplated hereby or under
the other Transaction Documents will (a) violate any law or other material restriction of any governmental authority to which the
Buyer is subject or any provision of Buyer’s organizational documents or (b) conflict with, result in a breach of, constitute
a default under, result in the acceleration of, create in any party the right to accelerate, terminate, modify, or cancel, or require
any notice or consent under any material Contract or other material arrangement to which the Buyer is a party or by which it is
bound or to which any of its assets are subject (or result in the imposition of any Lien upon any of its assets).

 

4.4          Legal
Compliance. The Buyer has complied in all material respects with all applicable laws, and no action, suit, proceeding, hearing,
investigation, charge, complaint, claim, demand, or notice has been filed or to the knowledge of the Buyer, commenced against
it alleging any failure so to comply.

 

4.5          Restrictions
on Transfer.

 

(a)         The Subject Shares to be acquired by the Buyer pursuant to this Agreement are being or will be acquired its and their own account
and with no intention of distributing or reselling such Common Stock or any part thereof in any transaction that would be in violation
of the securities laws of the United States of America, or any state.

 

(b)         Until such time as the entire Purchase Price for the Subject Shares has been paid in full in cash to the Sellers and their respective
heirs, executors and estate(s), the Buyer shall not sell, assign, transfer, hypothecate, encumber or subject to any Lien (collectively,
“Transfer”) any of the Subject Shares.

 

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(c)          The Buyer agrees to the imprinting, of the following legends on certificates representing all of the Subject Shares:

 

THE SECURITIES REPRESENTED BY
THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT FOR DISTRIBUTION, AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY STATE. THE SECURITIES MAY NOT BE TRANSFERRED EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN APPLICABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH LAWS.

 

4.6          Uplisting.
Following the Closing, the Buyer agrees to use its best efforts to cause the Company’s securities to be listed
on the Nasdaq Stock Market (“Nasdaq”) or New York Stock Exchange (“NYSE”) within 24 months (the “Uplisting”).
As an inducement to the Sellers to enter into this Agreement, pursuant to a separate Share Escrow Agreement (in the form and substance
as set forth in Exhibit B attached hereto), the parties agree that 400,000 shares of the Subject Shares potentially being
sold by Mr. Hackett (“the Escrowed Shares”) shall be retained in escrow and not transferred to the Buyer during said
24 month period. In the event the Uplisting is achieved within said 24 months, the Escrowed Shares shall be deemed, for all purposes,
to have been retained by Mr. Hackett and not sold to the Buyer hereunder, thereby reducing the amount of Subject Shares purchased
from Mr. Hackett hereunder by 400,000, without causing retroactive change to the Purchase Price. Upon the achieving of the Uplisting,
the Escrowed Shares shall immediately be returned to Mr. Hackett for all purposes. If no Uplisting is achieved within such 24
month period, the Retained Shares shall immediately be transferred to, or at the direction of, Buyer, without additional cost.

 

ARTICLE V

ADDITIONAL AGREEMENTS OF THE PARTIES

 

5.1          
License Agreement of the Parties. The parties under this Agreement agree that the Sellers shall be granted a five-year royalty
free license to  access, use, exploit and commercialize the Company’s existing mobile technology for business purposes
within the territory of the United States in accordance with the license agreement, in the form and substance as set forth in Exhibit
C, attached hereto (the “License Agreement”). The license shall be non-exclusive and non-transferrable, and may
only be sub-licensed in the ordinary course of business. The license shall expire on the fifth anniversary of this Agreement.

  

5.2          Non-Solicitation Agreements of the Parties.

 

(a)            
Employees of the Business. During the period commencing on the Closing Date and ending on the third (3rd) anniversary of
the Closing Date (the “Restricted Period”), and in connection with the Business of the Company, each of the
Sellers, including any of their respective Affiliates (each a “Restricted Party”) shall not, directly or indirectly,
solicit or encourage any employee or consultant performing services in connection with the business currently conducted by the
Company to leave the employment of Company.

 

    	10

    	 

    

 

(b)           
Confidential Information. During the Restricted Period, each Restricted Party shall keep secret and retain in strictest
confidence, all confidential matters relating to the Business or the Company, including, but not limited to, “know how”,
trade secrets, customer lists, supplier lists, details of consultant and employment Contracts, pricing policies, operational methods,
marketing plans or strategies, product development techniques or plans, business acquisition plans, technical processes, designs
and design projects, processes, inventions, software, source codes, object codes, systems documentation and research projects and
other business affairs related to the Business (collectively “Confidential Information”), and shall not disclose
them to anyone outside of Buyer and its Affiliates; provided, however, this covenant shall not apply to any information
which becomes generally available to the public through no wrongful act of such Restricted Party or others. Each Restricted Party
may disclose Confidential Information if required to do so in any legally required government or securities filings, legal proceedings,
subpoena, civil investigative demand or other similar process; provided, that such Restricted Party (i) provides the other Parties
with prompt notice of such required disclosure so that the other Parties may attempt to obtain a protective order, (ii) cooperates
with the other Parties in obtaining such protective order, and (iii) only discloses that Confidential Information which it is absolutely
required to disclose as advised by counsel. The provisions of this section shall not apply to the bona fide commercial use of the
technology owned by Company under the License Agreement referenced in Section 5.1 above.

 

ARTICLE VI

MISCELLANEOUS

 

6.1          Expenses. Each party shall pay its own costs and expenses (including legal fees and expenses) incurred in connection with
this Agreement and the transactions contemplated hereby.

 

6.2          No Third-Party Beneficiaries. Except as expressly provided in Section 6.4, this Agreement shall not confer any rights or
remedies upon any Person other than the Parties and their respective heirs, executors, successors and permitted assigns.

 

6.3          
Entire Agreement. This Agreement (including the documents referred to herein) constitutes the entire agreement among the
Parties and supersedes any prior understandings, agreements, or representations by or among the Parties, written or oral, to the
extent they related in any way to the subject matter hereof.

 

6.4          
Succession and Assignment. This Agreement shall be binding upon and inure to the benefit of the Parties named herein and
their respective heirs, executors, successors and permitted assigns. Except as set forth herein, no Party may assign either this
Agreement, any of the other Transaction Documents, or any of his or its rights, interests, or obligations hereunder without the
prior written approval of all of the other Parties or their respective heirs, executors, successors and permitted assigns.

 

    	11

    	 

    

 

6.5          
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but
all of which together will constitute one and the same instrument.

 

6.6          
Headings. The section headings contained in this Agreement are inserted for convenience only and shall not affect in
any way the meaning or interpretation of this Agreement.

 

6.7          
Notices. All notices, requests, demands, claims, and other communications hereunder will be in writing. Any notice, request,
demand, claim, or other communication hereunder shall be deemed duly given if (and then two Business Days after) it is sent by
registered or certified mail, return receipt requested, postage prepaid, and addressed to the intended recipient as set forth below:

 

If to the Sellers,
addressed as follows:

 

Douglas S. Hackett

[address]

 

James S. Byrd, Jr.

[address]

 

If to
the Buyer, addressed as follows:

 

Engage International Technology Co.,
Inc.

15C, China Merchants Tower

No. 1166 Wanghai Road, Nansha District

Shenzhen, Guangdong, China

Hong Kong Attn: Hua Zhang

 

with a copy to:

 

Hunter Taubman LLP

130 W 42nd Street, Suite
1050

New York, NY 10036

Attn: Louis E. Taubman, Esq.

Email: LTaubman@huntertaubmanlaw.com

 

If to
the Company, addressed as follows:

 

Engage Mobility, Inc.

140 Walnut St.

Kansas City, MO 64106

Attn: Douglas S. Hackett, CEO

 

Any party may send
any notice, request, demand, claim, or other communication hereunder to the intended recipient at the address set forth above using
any other means (including personal delivery, expedited courier, messenger service, telecopy, ordinary mail, overnight mail or
electronic mail), but no such notice, request, demand, claim, or other communication shall be deemed to have been duly given unless
and until it actually is received by the intended recipient. Any party may change the address to which notices, requests, demands,
claims, and other communications hereunder are to be delivered by giving the other Parties notice in the manner herein set forth.

 

    	12

    	 

    

 

6.8          
Governing Law. This Agreement shall be governed by and construed in accordance with the domestic Laws of the State of Florida
without giving effect to any choice or conflict of law provision or rule (whether of the State of Florida or any other jurisdiction)
that would cause the application of the Laws of any jurisdiction other than the State of Florida..

 

6.9          
Amendments and Waivers. No amendment of any provision of this Agreement shall be valid unless the same shall be in writing
and signed by all Parties to this Agreement. No waiver by any party of any default, misrepresentation, or breach of warranty or
covenant hereunder, whether intentional or not, shall be deemed to extend to any prior or subsequent default, misrepresentation,
or breach of warranty or covenant hereunder or affect in any way any rights arising by virtue of any prior or subsequent such occurrence.

 

6.10         
Severability. Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction
shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability
of the offending term or provision in any other situation or in any other jurisdiction.

 

6.11         
Construction. The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity
or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties and no presumption
or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement.
Any reference to any federal, state, local, or foreign statute or law shall be deemed also to refer to all rules and regulations
promulgated thereunder, unless the context requires otherwise. The word “including” shall mean including without limitation.

 

6.12         
Submission to Jurisdiction. Each of the Parties submits to the jurisdiction of any state or federal court sitting in Florida
in any action or proceeding arising out of or relating to this Agreement and agrees that all claims in respect of the action or
proceeding may be heard and determined in any such court. Each party also agrees not to bring any action or proceeding arising
out of or relating to this Agreement in any other court. Each of the Parties waives any defense of inconvenient forum to the maintenance
of any action or proceeding so brought and waives any bond, surety, or other security that might be required of any other party
with respect thereto. Any party may make service on any other party by sending or delivering a copy of the process to the party
to be served at the address and in the manner provided for the giving of notices in Section 6.7 above. Nothing in this Section
6.12, however, shall affect the right of any Party to serve legal process in any other manner permitted by law or at equity.
Each party agrees that a final judgment in any action or proceeding so brought shall be conclusive and may be enforced by suit
on the judgment or in any other manner provided by law or at equity.

 

    	13

    	 

    

 

6.13         
Post Closing Condition. The Parties hereby agree, at the Buyer’s request, to sign a translated English-Chinese version
of this Agreement within 10 business days of the Closing Date with the understanding that this Agreement signed on this April 9,
2015 is the formal agreement by and among the Parties and should the Chinese version of certain terms in the later signed agreement
conflict with their Chinese counterpart, the English version shall prevail. Such documentation shall be prepared by the Buyer at
the Buyer’s expense.

 

 

[Remainder of page intentionally
left blank; signature page follows]

 

    	14

    	 

    

 

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

 

	 	BUYER:	 
	 	 	 
	 	ENGAGE INTERNATIONAL TECHNOLOGY CO., LTD.
	 	 	 
	 	By:	 
	 	 	Name: Hua Zhang
	 	 	Title:   Chief Executive Officer
	 	 	 
	 	THE COMPANY:
	 	 	 
	 	ENGAGE MOBILITY, INC..
	 	 	 
	 	By:	 
	 	 	Name: Douglas S. Hackett
	 	 	Title:  Chief Executive Officer
	 	 	 
	 	SELLERS:
	 	 
	 	 	 
	 	Name: James S. Byrd, Jr.
	 	 	 
	 	 	 
	 	Name: Douglas S. Hackett

  

    	15

    	 

    

 

Schedules

To

Stock Purchase Agreement

 

Schedule 3.6 Debt, Obligation or Liability

 

	Accounts Payable	 	$	27,286.13	 
	Notes Payable - Barbato	 	 	200,548.00	 
	Notes Payable - Yannitto	 	 	5,000.00	 
	Notes Payable - Bourque	 	 	20,054.80	 
	Notes Payable - Vanteefflelen	 	 	15,041.10	 
	Notes Payable - Zopf	 	 	20,054.80	 
	Notes Payable - Pereira	 	 	15,041.10	 
	Notes Payable - S. Hackett	 	 	94,580.73	 
	Notes Payable - Byrd	 	 	56,000.00	 
	Total	 	$	453,606.66	 

 

Schedule 3.11 Litigation

 

None.

 

16

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