Document:

Emmaus Life Sciences, Inc. 8-K 

Exhibit 10.4

 

NEITHER THIS SECURITY NOR
THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED, SOLD, PLEDGED, HYPOTHECATED, OR OTHERWISE TRANSFERRED FOR VALUE EXCEPT PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION
(INCLUDING, WITHOUT LIMITATION, A PLEDGE PERMITTED HEREUNDER IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED
BY SUCH SECURITIES WHERE THE PLEDGEE ACKNOWLEDGES THE RESTRICTIONS ON TRANSFER OF SUCH SECURITIES) NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL
TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.

 

FORM OF COMMON STOCK PURCHASE WARRANT

 

EMMAUS
LIFE SCIENCES, INC.

 

	Warrant Shares:___________		Initial
                                                                                                   Exercise Date: ____________
	Warrant No. ____________	 	 

 

THIS COMMON STOCK
PURCHASE WARRANT (the “Warrant”) certifies that, for value received, T.R. Winston & Company, LLC (the “Placement
Agent”) or its registered assigns (the Placement Agent or its registered assigns, the “Holder”) is
entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or
after the date hereof (the “Initial Exercise Date”) and on or prior to the close of business on the five (5)
year anniversary of the Initial Exercise Date (the “Termination Date”) but not thereafter, to subscribe for
and purchase from Emmaus Life Sciences, Inc., a Delaware corporation (the “Company”), up to 
shares (as subject to adjustment hereunder, the “Warrant Shares”) of Common Stock. The purchase price of one
share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).

Except as
specifically otherwise provided herein, the Warrant Shares shall bear the same terms and conditions as such securities
described under the caption “Description of Common Stock” in the Memorandum and as designated in the
Company’s Certificate of Incorporation and any amendments thereto, and the Holder  shall have such registration rights
under the Securities Act for the Warrant Shares as set forth in the Subscription Agreements. The Holder of this Warrant, by
its acceptance thereof, represents and warrants to, and covenants and agrees with, the Company that the Warrant and the
Warrant Shares issuable upon exercise of the Warrant may not be transferred unless such securities are either registered
under the Securities Act and any applicable state securities law or an exemption from such registration is available. In
connection with any purchase of the Warrant Shares, the Holder agrees to execute any documents which may be reasonably
required by counsel to the Company to comply with the provisions of the Securities Act and applicable state securities
laws.

    	 

    	 

    

Section 1.                  Definitions.
Capitalized terms used and not otherwise defined herein shall have the meanings set forth in those certain Subscription Agreements
(the “Subscription Agreements”), dated September 11, 2013, between the Company and the purchasers named
therein (each, a “Purchaser”).

Section 2.                  Exercise.

a)               Exercise of Warrant. Exercise of the purchase rights represented by this Warrant may
be made, in whole or in part, at any time or times on or after the Initial Exercise Date and until 5:00 p.m., Los Angeles time,
on the Termination Date by delivery to the Company (or such other office or agency of the Company as it may designate by notice
in writing to the registered Holder at the address of the Holder appearing on the books of the Company) of a duly executed facsimile
copy of the notice of exercise (“Notice of Exercise”) in the form annexed hereto and, within three (3) Trading
Days of the date said Notice of Exercise is delivered to the Company, payment to the Company of the aggregate Exercise Price of
the shares thereby purchased by wire transfer or cashier’s check drawn on a United States bank or, if available, pursuant
to the cashless exercise procedure specified in Section 2(c) below. As used herein, “Trading Day” means a day
on which the NYSE MKT, the NASDAQ Capital Market, the NASDAQ Global Market, the NASDAQ Global Select Market, the New York Stock
Exchange or the OTC Bulletin Board (or any successors to any of the foregoing) are open for trading. No ink-original Notice of
Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise
form be required. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this
Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised
in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading Days of
the date the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases of
a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of
Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder and the
Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Company shall
deliver any objection to any Notice of Exercise within two (2) Business Days of receipt of such notice. The Holder and any assignee,
by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase
of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may
be less than the amount stated on the face hereof. Notwithstanding any provision herein to the contrary, the Company
shall not be required to register any Warrant Shares issued or issuable upon exercise of this Warrant (in whole or in part) in
the name of any person who acquired such Warrant Shares or this Warrant (in whole or in part) in a transaction that contravenes
the restrictions on transfer of this Warrant and the Warrant Shares set forth in this Warrant.

b)               
Exercise Price. The exercise price per share of the Common Stock under this Warrant
shall be $3.50, subject to adjustment hereunder (the “Exercise Price”).

c)                 Cashless Exercise. If at any time after the twelve (12) month anniversary of the Initial
Exercise Date, there is no effective Registration Statement registering, or no current prospectus available for, the resale of
the Warrant Shares by the Holder, then this Warrant may also be exercised, in whole or in part, at such time by means of a “cashless
exercise” in which the Holder shall be entitled to receive a number of Warrant Shares equal to the quotient obtained by dividing
[(A-B) x (X)] by (A), where:

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		(A)  =	the VWAP (as defined below) on the Trading Day immediately preceding the date on which Holder elects to exercise this Warrant
by means of a “cashless exercise,” as set forth in the applicable Notice of Exercise;
	 	 	 
	 	(B) =	the Exercise
Price of this Warrant, as adjusted hereunder; and
	 	 	 
	 	(X)  =	the number
of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise,
in whole or in part, were by means of a cash exercise rather than a cashless exercise.

 

For purposes
of this Warrant, the term “VWAP” means, for any date, the price determined by the first of the following clauses
that applies: (a) if the Common Stock is then listed or quoted on the NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market,
the Nasdaq Global Select Market, or the New York Stock Exchange (each, a “Trading Market”), the daily volume
weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading Market on which the Common
Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02
p.m. (New York City time)), (b) if the Common Stock is not then listed or quoted on a Trading Market and is then listed or
quoted for trading on the OTC Bulletin Board, the volume weighted average price of the Common Stock for such date (or the nearest
preceding date) on the OTC Bulletin Board, (c) if the Common Stock is not then listed or quoted for trading on the OTC Bulletin
Board and if prices for the Common Stock are then reported in the “Pink Sheets” published by OTC Link LLC (or a similar
organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock
so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined in good faith by the
independent members of the Board of Directors of the Company.

 

d)                  
Mechanics
of Exercise.

 

i.           
Delivery of Warrant Shares Upon Exercise. Warrant Shares purchased hereunder shall
be transmitted by the Transfer Agent to the Holder by crediting the account of the Holder’s prime broker with The Depository
Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is then a participant
in such system and either (A) there is an effective registration statement permitting the issuance of the Warrant Shares to or
resale of the Warrant Shares by the Holder or (B) the shares are eligible for resale by the Holder without volume or manner-of-sale
limitations pursuant to Rule 144, and otherwise by physical delivery of one or more certificates, as requested by the Holder,
representing such Warrant Shares to the address specified by the Holder in the Notice of Exercise by the date that is three (3)
Trading Days after the latest of (A) the delivery to the Company of the Notice of Exercise, (B) receipt by the Company of the
aggregate Exercise Price for the Warrant Shares (unless exercised on a cashless basis pursuant to Section 2(c), and (C) surrender
of this Warrant (if required) (such date, the “Warrant Share Delivery Date”). The Warrant Shares shall be deemed
to have been issued, and Holder or any other person so designated to be named therein shall be deemed to have become a holder
of record of such shares for all purposes, as of the date the Warrant has been exercised, with payment to the Company of the Exercise
Price (or by cashless exercise, if permitted) and all taxes required to be paid by the Holder, if any, pursuant to Section 2(d)(vi)
prior to the issuance of such shares, having been paid. 

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ii.             Delivery
of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder
and upon surrender of this Warrant certificate, at the time of delivery of the Warrant Shares, deliver to the Holder a new Warrant
evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall
in all other respects be identical with this Warrant.

iii.         
Rescission Rights. If the Company fails to cause the Transfer Agent to transmit to
the Holder the Warrant Shares pursuant to Section 2(d)(i) by the Warrant Share Delivery Date, then the Holder will have the right
to rescind such exercise.

iv.         
Compensation for Buy-In on Failure to Timely Deliver Warrant Shares Upon Exercise.
In addition to any other rights available to the Holder, if (A) the Company fails to cause the Transfer Agent to transmit to the
Holder the Warrant Shares pursuant to an exercise on or before the second Trading Day following the Warrant Share Delivery Date,
(B) as a result of such failure, either the Holder or the Holder’s broker is required to purchase in an open market transaction
or otherwise shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares that the Holder anticipated
receiving upon such exercise (such purchase of such shares of Common Stock being required for such delivery being a “Buy-In”),
and (C) the total purchase price (including brokerage commissions, if any) payable by the Holder for such Buy-In exceeds the proceeds
to the Holder from such sale of such Warrant Shares (such excess being the “Excess Buy-In Cost”), then the Company
shall pay in cash to the Holder the amount of the Excess Buy-In Cost within five (5) Trading Days of the second Trading Day following
the Warrant Share Delivery Date; provided, however, that the obligation of the Company to make payment of any Excess Buy-in
Cost shall only apply to the Warrant Shares issuable upon exercise of this Warrant in respect of which the Holder satisfied the
requirements hereunder in respect of such exercise, and in respect of any portion of this Warrant in respect of which the Holder
did not so comply with such requirements, the Company shall reinstate to this Warrant the number of Warrant Shares represented
by such portion of this Warrant for which such requirements were not so satisfied; provided further, however, that, in
the event the sale by the Holder giving rise to the Buy-In is executed at less than a then-current market price, the Excess Buy-In
Cost shall be equal to the lesser of (x) the Excess Buy-In Cost as determined in accordance with the foregoing provisions of this
Section 2(d)(iv) and (y) the amount by which (1) the total purchase price (including brokerage commissions, if any) payable by
the Holder for such Buy-In exceeds (2) the product obtained by multiplying the VWAP on the date of such sale transaction (or,
if such date is not a Trading Day, the immediately preceding Trading Day) by the number of Warrant Shares sold in such sale transaction.
For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an
attempted exercise of shares of Common Stock with an aggregate sale price giving rise to such purchase obligation of $10,000,
under the immediately preceding sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the
Company prompt written notice indicating the occurrence of a Buy-in and the amounts payable to the Holder in respect of the Buy-In
and, upon request of the Company, evidence of the amount of such loss. Nothing herein shall limit a Holder’s right to pursue
any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance
and/or injunctive relief with respect to the Company’s failure to timely deliver shares of Common Stock upon exercise of
the Warrant as required pursuant to the terms hereof. 

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v.     
No Fractional Shares or Scrip. No fractional shares or scrip representing fractional
shares shall be issued upon the exercise of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled
to purchase upon such exercise (after aggregating all the Warrant Shares then being purchased by the Holder upon exercise of Warrants
held by the Holder), the Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an
amount equal to such fraction multiplied by the Exercise Price or round up to the next whole share.

vi.     
Charges, Taxes and Expenses. Issuance of Warrant Shares shall be made without charge
to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of Warrant Shares, all of which
taxes and expenses shall be paid by the Company, and such Warrant Shares shall be issued in the name of the Holder or in such
name or names as may be directed by the Holder; provided, however, that in the event that Warrant Shares are to
be issued in a name other than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the
Assignment Form attached hereto duly executed by the Holder and the Company may require, as a condition thereto, the payment of
a sum sufficient to reimburse it for any transfer tax incidental thereto. The Company shall pay all Transfer Agent fees required
for same-day processing of any Notice of Exercise.

vii.     
Closing of Books. The Company will not, except upon dissolution, liquidation, or winding
up of the Company, close its stockholder books or records in any manner which prevents the timely exercise of this Warrant, pursuant
to the terms hereof.

Section 3.                  Certain
Adjustments.

a)               Stock Dividends and Subdivisions; Combinations; Reclassifications. If the Company,
at any time and from time to time while this Warrant is outstanding: (i) pays a stock dividend or otherwise makes a distribution
or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common
Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon exercise of this
Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of
reverse stock split) outstanding shares of Common Stock into a smaller number of shares or (iv) issues by reclassification of shares
of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction
of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately
before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such
event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate
Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(a) shall become effective
immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall
become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

b)              Adjustment for Diluting Issuances.

                                                              
i.           
Deemed Issue of Additional Shares of Common Stock.

 

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A.         If
the Company at any time or from time to time after the date hereof shall issue any Options or Convertible Securities
(excluding Options or Convertible Securities which are themselves Exempted Securities (as defined herein)) or shall fix a
record date for the determination of holders of any class of securities entitled to receive any such Options or Convertible
Securities, then the maximum number of shares of Common Stock (as set forth in the instrument relating thereto, assuming the
satisfaction of any conditions to exercisability, convertibility or exchangeability but without regard to any provision
contained therein for a subsequent adjustment of such number) issuable upon the exercise of such Options or, in the case of
Convertible Securities and Options therefor, the conversion or exchange of such Convertible Securities, shall be deemed to be
Additional Shares of Common Stock issued as of the time of such issue or, in case such a record date shall have been fixed,
as of the close of business on such record date.

 

B.        
If the terms of any Option or Convertible Security, the issuance of which resulted in an adjustment
to the Exercise Price pursuant to the terms of Section 3(b)(ii), are revised as a result of an amendment to such terms or any other
adjustment pursuant to the provisions of such Option or Convertible Security (but excluding automatic adjustments to such terms
pursuant to anti-dilution or similar provisions of such Option or Convertible Security) to provide for either (1) any increase
or decrease in the number of shares of Common Stock issuable upon the exercise, conversion and/or exchange of any such Option or
Convertible Security or (2) any increase or decrease in the consideration payable to the Company upon such exercise, conversion
and/or exchange, then, effective upon such increase or decrease becoming effective, the Exercise Price computed upon the original
issue of such Option or Convertible Security (or upon the occurrence of a record date with respect thereto) shall be readjusted
to such Exercise Price as would have obtained had such revised terms been in effect upon the original date of issuance of such
Option or Convertible Security. Notwithstanding the foregoing, no readjustment pursuant to this Section 3(b)(i)(B) shall have the
effect of increasing the Exercise Price to an amount which exceeds the lower of (i) the Exercise Price in effect immediately prior
to the original adjustment made as a result of the issuance of such Option or Convertible Security, or (ii) the Exercise Price
that would have resulted from any issuances of Additional Shares of Common Stock (other than deemed issuances of Additional Shares
of Common Stock as a result of the issuance of such Option or Convertible Security) between the original adjustment date and such
readjustment date.

 

C.        
If the terms of any Option or Convertible Security (excluding Options or Convertible Securities
which are themselves Exempted Securities), the issuance of which did not result in an adjustment to the Exercise Price pursuant
to the terms of Section 3(b)(ii) (either because the consideration per share (determined pursuant to Section 3(b)(iii)) of the
Additional Shares of Common Stock subject thereto was equal to or greater than the Exercise Price then in effect, or because such
Option or Convertible Security was issued before the date hereof), are revised after the date hereof as a result of an amendment
to such terms or any other adjustment pursuant to the provisions of such Option or Convertible Security (but excluding automatic
adjustments to such terms pursuant to anti-dilution or similar provisions of such Option or Convertible Security) to provide for
either (1) any increase in the number of shares of Common Stock issuable upon the exercise, conversion or exchange of any such
Option or Convertible Security or (2) any decrease in the consideration payable to the Company upon such exercise, conversion or
exchange, then such Option or Convertible Security, as so amended or adjusted, and the Additional Shares of Common Stock subject
thereto (determined in the manner provided in Section 3(b)(i)) shall be deemed to have been issued effective upon such increase
or decrease becoming effective.

 

D.         
Upon the expiration or termination of any unexercised Option or unconverted or unexchanged
Convertible Security (or portion thereof) which resulted (either upon its original issuance or upon a revision of its terms) in
an adjustment to the Exercise Price pursuant to the terms of Section 3(b)(ii), the Exercise Price shall be readjusted to such Exercise
Price as would have obtained had such Option or Convertible Security (or portion thereof) never been issued. 

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E.         
If the
number of shares of Common Stock issuable upon the exercise, conversion and/or exchange of any Option or Convertible
Security, or the consideration payable to the Company upon such exercise, conversion and/or exchange, is calculable at the
time such Option or Convertible Security is issued or amended but is subject to adjustment based upon subsequent events, any
adjustment to the Exercise Price provided for in this Section 3(b)(i)(E) shall be effected at the time of such issuance or
amendment based on such number of shares or amount of consideration without regard to any provisions for subsequent
adjustments (and any subsequent adjustments shall be treated as provided in clauses (B) and (C) of this subsection). If the
number of shares of Common Stock issuable upon the exercise, conversion and/or exchange of any Option or Convertible
Security, or the consideration payable to the Company upon such exercise, conversion and/or exchange, cannot be calculated at
all at the time such Option or Convertible Security is issued or amended, any adjustment to the Exercise Price that would
result under the terms of this subsection at the time of such issuance or amendment shall instead be effected at the time
such number of shares and/or amount of consideration is first calculable (even if subject to subsequent adjustments),
assuming for purposes of calculating such adjustment to the Exercise Price that such issuance or amendment took place at the
time such calculation can first be made.

 

ii.    
             Adjustment
of Exercise Price Upon Issuance of Additional Shares of Common Stock. 

A.        
Adjustment of Warrant Shares. The Exercise Price shall be subject to adjustment from
time to time as set forth in this Section 3(b)(ii). Upon each adjustment of the Exercise Price pursuant to this Section 3(b)(ii),
the registered holder shall (until another such adjustment) thereafter be entitled to purchase at the Exercise Price the number
of shares of Common Stock obtained by dividing (a) the product of the number of Warrant Shares multiplied by the initial Exercise
Price by (b) the adjusted Exercise Price.

 

B.        
Adjustment of the Exercise Price for Common Stock Issuances. In the event the Company
shall at any time after the date hereof issue Additional Shares of Common Stock (excluding Additional Shares of Common Stock deemed
to be issued pursuant to Section 3(b)(i)), without consideration or for a consideration per share less than the lower of (i) the
Exercise Price in effect immediately prior to such issue or (ii) $2.50, then the Exercise Price shall be reduced, concurrently
with such issue, to a price (calculated to the nearest one-hundredth of a cent) determined in accordance with the formula set forth
in Section 3(b)(ii)(D).

 

C.        
Adjustment of the Exercise Price for Options or Convertible Securities Issuances.
In the event the Company shall at any time after the date hereof issue Additional Shares of Common Stock deemed to be issued pursuant
to Subsection 3(b)(i), without consideration or for a consideration per share less than the Exercise Price in effect immediately
prior to such issue, then the Exercise Price shall be reduced, concurrently with such issue, to a price (calculated to the nearest
one-hundredth of a cent) determined in accordance with the formula set forth in Section 3(b)(ii)(D). 

 

D.        
Exercise Adjustment Formula. Any reductions in the Exercise Price pursuant to Sections
3(b)(ii)(B) or 3(b)(ii)(C) shall be determined in accordance with the following formula:

 

EP2 = EP1 * (A
+ B) ÷ (A + C)

For purposes of the foregoing formula,
the following definitions shall apply:

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“EP2” shall
mean the Exercise Price in effect immediately after such issue of Additional Shares of Common Stock

“EP1”
shall mean the Exercise Price in effect immediately prior to such issue of Additional Shares of Common Stock; 

“A”
shall mean the number of shares of Common Stock outstanding immediately prior to such issue of Additional Shares of Common Stock
assuming conversion of all warrants to purchase Common Stock issued pursuant to the Company’s Amended and Restated Confidential
Private Placement Memorandum dated September 9, 2013, as amended and supplemented, that are outstanding immediately prior to such
issue, including, without limitation, this Warrant; 

“B”
shall mean the number of shares of Common Stock that would have been issued if such Additional Shares of Common Stock had been
issued at a price per share equal to EP1 (determined by dividing the aggregate consideration received by the Company
in respect of such issue by EP1); and

“C”
shall mean the number of such Additional Shares of Common Stock issued in such transaction.

iii.                   Determination of Consideration. For purposes of this Section 3(b), the consideration
received by the Company for the issue of any Additional Shares of Common Stock shall be computed as follows:

A.        
Cash and Property: Such consideration shall: (i) insofar as it consists of cash,
be computed at the aggregate amount of cash received by the Company, excluding amounts paid or payable for accrued interest; (ii)insofar
as it consists of property other than cash, be computed at the fair market value thereof at the time of such issue, as determined
in good faith by the Board of Directors of the Company; and (iii) in the event Additional Shares of Common Stock are issued together
with other shares or securities or other assets of the Company for consideration which covers both, be the proportion of such consideration
so received, computed as provided in clauses (i) and (ii) above, as determined in good faith by the Board of Directors of the Company.

 

B.        
Options and Convertible Securities. The consideration per share received by the Company
for Additional Shares of Common Stock deemed to have been issued pursuant to Section 3(b)(i), relating to Options and Convertible
Securities, shall be determined by dividing: (i) the total amount, if any, received or receivable by the Company as consideration
for the issue of such Options or Convertible Securities, plus the minimum aggregate amount of additional consideration (as set
forth in the instruments relating thereto, without regard to any provision contained therein for a subsequent adjustment of such
consideration) payable to the Company upon the exercise of such Options or the conversion or exchange of such Convertible Securities,
or in the case of Options for Convertible Securities, the exercise of such Options for Convertible Securities and the conversion
or exchange of such Convertible Securities, by (ii) the maximum number of shares of Common Stock (as set forth in the instruments
relating thereto, without regard to any provision contained therein for a subsequent adjustment of such number) issuable upon the
exercise of such Options or the conversion or exchange of such Convertible Securities, or in the case of Options for Convertible
Securities, the exercise of such Options for Convertible Securities and the conversion or exchange of such Convertible Securities.

                                                                 

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iv.                Term of Adjustment for Diluting Issuances. The requirement to perform adjustments
for diluting issuances under this Section 3(b) shall terminate and be of no further force
or effect on the earliest to occur of the following: (i) immediately prior to a firm commitment underwritten public offering by
the Company of shares of its Common Stock which results in aggregate cash proceeds to the Company of not less than $20,000,000
and in connection therewith the Company lists its Common Stock on a national securities exchange provided that the price per share
of such Common Stock is at least $5.00 at the time of such listing or (ii) the fifth (5th) anniversary of the date hereof.

v.                  Exempted Securities. “Exempted Securities” shall mean (1) the following
shares of Common Stock and (2) shares of Common Stock deemed issued pursuant to the following Options and Convertible Securities:

A. all Options,
Convertible Securities and Promissory Notes outstanding as of the Private Placement Closing Date;

B. shares of
Common Stock, Options or Convertible Securities issued by reason of a dividend, stock split, split-up or similar transaction or
other distribution on shares of Common Stock;

C. shares of
Common Stock or Options issued to employees or directors of, or consultants or advisors to, the Company or any of its subsidiaries
or authorized to be issued pursuant to a plan, agreement or arrangement approved by the board of directors of the Company (the
“Board”);

D. shares of
Common Stock or Convertible Securities actually issued upon the exercise of Options or shares of Common Stock actually issued upon
the conversion or exchange of Convertible Securities or Promissory Notes, in each case provided such issuance is pursuant to the
terms of such Option or Convertible Security or in the case of Promissory Notes such issuance is not below the fair market value
of Common Stock as determined by the Board, provided that the Company may not issue more than 2.55 million shares of Common Stock
at a fair market value less than $2.50 in exchange of Promissory Notes under this clause (iv);

E. shares of
Common Stock, Options or Convertible Securities issued to banks, equipment lessors or other financial institutions, or to real
property lessors, pursuant to a debt financing, equipment leasing or real property leasing transaction approved by the Board that
do not exceed an aggregate of $500,000 of the Company’s shares of Common Stock at the fair market value of Common Stock as
determined by the Board (including shares underlying (directly or indirectly) any such Options or Convertible Securities);

F. shares of
Common Stock, Options or Convertible Securities issued to suppliers or third party service providers in connection with the provision
of goods or services pursuant to transactions approved by the Board that do not exceed an aggregate of $500,000 of the Company’s
shares of Common Stock at the fair market value of Common Stock as determined by the Board (including shares underlying (directly
or indirectly) any such Options or Convertible Securities);

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G. shares of
Common Stock, Options or Convertible Securities issued pursuant to the acquisition of another corporation by the Company by merger,
purchase of substantially all of the assets or other reorganization or to a joint venture agreement, provided that such issuances
are approved by the Board and do not exceed an aggregate of 10% of the outstanding shares of Common Stock at the time immediately
preceding such transaction (including shares underlying (directly or indirectly) any such Options or Convertible Securities); and

H. shares of
Common Stock, Options or Convertible Securities issued in connection with sponsored research, collaboration, technology license,
development, marketing or other similar agreements or strategic partnerships approved by the Board that do not exceed an aggregate
of $500,000 of the Company’s shares of Common Stock at the fair market value of Common Stock as determined by the Board (including
shares underlying (directly or indirectly) any such Options or Convertible Securities).

c)                   
[RESERVED]

d)                  
Pro Rata Distributions. If the Company, at any time while this Warrant is outstanding,
shall distribute to all holders of Common Stock (and not to the Holder) evidences of its indebtedness or assets (including cash
and cash dividends) or rights or warrants to subscribe for or purchase any security other than the Common Stock, then in each such
case the Exercise Price shall be adjusted by multiplying the Exercise Price in effect immediately prior to the record date fixed
for determination of stockholders entitled to receive such distribution by a fraction of which the denominator shall be the VWAP
determined as of the record date mentioned above, and of which the numerator shall be such VWAP on such record date less the then
per share fair market value at such record date of the portion of such assets or evidence of indebtedness or rights or warrants
so distributed applicable to one outstanding share of the Common Stock as determined by the board of directors of the Company in
good faith. In either case the adjustments shall be described in a statement provided to the Holder of the portion of assets or
evidences of indebtedness so distributed or such subscription rights applicable to one share of Common Stock. Such adjustment shall
be made whenever any such distribution is made and shall become effective immediately after the record date mentioned above. At
the time of any such distribution, the Company shall make appropriate reserves to ensure the timely performance of the provisions
of this subsection or an adjustment to the Exercise Price, which shall be effective as of the day following the record date for
such distribution.

e)               Fundamental
Transaction. 

i.                        For
purposes of this Warrant, the term “Fundamental Transaction” means a transaction whereby (1) the Company,
directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or into
another Person, (2) the Company, directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance
or other disposition of all or substantially all of its assets in one or a series of related transactions, (3) any, direct or
indirect, purchase offer, tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to
which holders of Common Stock are permitted to sell, tender or exchange their shares for other securities, cash or
property and has been accepted by the holders of 50% or more of the outstanding Common Stock, (4) the Company, directly or
indirectly, in
one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any compulsory
share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property,
or (5) the Company, directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement
or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement)
with another Person or group of Persons whereby such other Person or group acquires more than 50% of the outstanding shares of
Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated
or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination).

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ii.                    
If at any time while this Warrant is outstanding the Company or its successor engages in,
or is the subject of, one or more Fundamental Transactions, then, in respect of each such Fundamental Transaction, upon any subsequent
exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon
such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder, the number of
shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any
additional consideration (the “Alternate Consideration”) receivable as a result of such Fundamental Transaction
by a holder of the number of shares of Common Stock for which this Warrant is exercisable (or any successor to this Warrant arising
from a prior Fundamental Transaction) immediately prior to such Fundamental Transaction.

iii.                  For purposes of any such exercise described in clause (ii) this Section 3(e), the determination
of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate
Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion
the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components
of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received
in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon
any exercise of this Warrant following such Fundamental Transaction. 

iv.                  Prior to the consummation of any Fundamental Transaction, the Company shall cause any successor
entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor Entity”) to assume
in writing all of the obligations of the Company under this Warrant and the other Transaction Documents in accordance with the
provisions of this Section 3(e) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and
approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the Holder,
deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially
similar in form and substance to this Warrant which is exercisable for a corresponding number of shares of capital stock of such
Successor Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon exercise of this
Warrant (without regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and with an
exercise price which applies the exercise price hereunder to such shares of capital
stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the
value of such shares of capital stock, such number of shares of capital stock and such exercise price being for the purpose of
protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction), and which
is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor
Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions
of this Warrant and the other Transaction Documents referring to the “Company” shall refer instead to the Successor
Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this
Warrant and the other Transaction Documents with the same effect as if such Successor Entity had been named as the Company herein.

    
	11

    	 

    

f)                       Calculations.
All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be;
provided, however, that in such case any adjustment that would otherwise be required then to be made shall be carried forward
and shall be made at the time of and together with the next subsequent adjustment which, together with any adjustment so carried
forward, shall amount to at least one cent or 1/100th of a share. For purposes of this Section 3, the number of shares of Common
Stock deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding
treasury shares, if any) issued and outstanding. 

g)                      Notice to Holder. 

                                                                    
i.                       
Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any
provision of this Section 3, the Company shall prepare and promptly mail to the Holder a certificate, executed by the Chief Financial
Officer of the Company, and approved by the independent members of the Board of Directors of the Company, setting forth the Exercise
Price after such adjustment and any resulting adjustment to the number of Warrant Shares and setting forth, in reasonable detail,
the events requiring such adjustment and the method by which such adjustment was calculated, including, but not limited to, a statement
of (i) the Exercise Price at the time in effect, and (ii) the number of additional or fewer securities and the type and amount,
if any, of other property which at the time would be receivable upon exercise of the Warrants.

                                                                    ii.                        Notice
to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on
the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock,
(C) the Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or
purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall
be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is
a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange
whereby the Common Stock is converted into other securities, cash or property, or (E) the Company shall authorize
the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the
Company shall cause to be mailed to the Holder at its last address as it shall appear upon the Warrant Register (as defined
in Section 4(c)) of the Company, at least twenty (20) calendar days prior to the applicable record or effective date
hereinafter specified (or such
lesser number of calendar days to the extent such lesser number complies with any law, regulation,
or by-law of the Company applicable to the sending of such notice to the stockholders of the Company), a notice stating

    	12

    	 

    

(x) the date
on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record
is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions,
redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale,
transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the
Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable
upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to mail such notice
or any defect therein or in the mailing thereof shall not affect the validity of the corporate action required to be specified
in such notice. To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding
the Company or any of the Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current
Report on Form 8-K. The Holder shall remain entitled to exercise this Warrant during the period commencing on the date of such
notice to the effective date of the event triggering such notice except as may otherwise be expressly set forth herein.

iii.                  Notice Deemed Given. Notwithstanding anything contained herein to the contrary, notice
shall be deemed given in the event the Company makes a public disclosure via the SEC EDGAR website within any applicable time
period for notice as provided for herein. 

Section 4.                  Transfer
of Warrant.

a)               Transferability. Subject to compliance with any applicable securities laws and the
conditions set forth in Sections 4(d) and 4(e) hereof, this Warrant and all rights hereunder (including, without limitation, any
registration rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company
or its designated agent, together with a written assignment of this Warrant substantially in the form attached hereto duly executed
by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer.
Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name
of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment,
and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly
be cancelled. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant
Shares without having a new Warrant issued. 

b)               New Warrants. This Warrant may be divided or combined with other Warrants upon presentation
hereof at the aforesaid office of the Company, together with a written notice specifying the names and denominations in which new
Warrants are to be issued, signed by the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer
which may be involved in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange
for the Warrant or Warrants to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges
shall be dated the Initial Exercise Date and shall be identical with this Warrant except as to the number of Warrant Shares issuable
pursuant thereto. 

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c)                Warrant Register. The Company shall register this Warrant, upon records to be maintained
by the Company for that purpose (the “Warrant Register”), in the name of the record Holder hereof from time
to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any
exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary.

d)                Transfer Restrictions.  If, at the time of the surrender
of this Warrant in connection with any transfer of this Warrant, the transfer of this Warrant shall not be either (i) registered
pursuant to an effective registration statement under the Securities Act and under applicable state securities or blue sky laws
or (ii) eligible for resale without volume or manner-of-sale restrictions or current public information requirements pursuant to
Rule 144, the Company may require, as a condition of allowing such transfer, that the Holder or transferee of this Warrant, as
the case may be, require the transferee to agree in writing to be bound by the provisions of the Subscription Agreements relating
to any Purchaser thereunder. Notwithstanding any provision herein to the contrary, the Company
shall not be required to register this Warrant or the Warrant Shares issuable upon exercise (in whole or in part) in the name of
any person who acquired all or any part of this Warrant or the Warrant Shares directly or indirectly in a transaction that contravenes
the restrictions set forth in Section 4(e) hereof.

e)                 Representation by the Holder. The Holder, by the acceptance hereof, represents and
warrants that it is an accredited investor (as defined under Regulation D under the Securities Act) and is acquiring this Warrant
and, upon any exercise hereof, will acquire the Warrant Shares issuable upon such exercise, for its own account and not with a
view to or for distributing or reselling such Warrant Shares or any part thereof in violation of the Securities Act or any applicable
state securities law, except pursuant to sales registered or exempted under the Securities Act. The Holder
covenants that neither it nor any person acting on its behalf or pursuant to any understanding with it will (i) directly or indirectly
pledge or otherwise transfer or assign to a third party this Warrant (in whole or in part) or any of the Warrant Shares issuable
upon exercise as security for a margin loan or other loan at any time prior to the earliest of (A) the date the Common Stock of
the Company is listed for trading on a national securities exchange, (B) the date the Common Stock of the Company is quoted on
an automated quotation system, (C) the date the Common Stock of the Company listed or quoted for trading on the OTC Bulletin Board,
or (D) the date prices for the Common Stock of the Company are first reported in the “Pink Sheets” published
by OTC Link LLC (or a similar organization or agency succeeding to its functions of reporting prices)
or (ii) engage in any transactions in the Common Stock or other securities of the Company (including Short Sales (as defined below))
the intent and purpose of which is to cause a decrease in the price of such Common Stock or other securities on any Trading Market,
the OTC Bulletin Board, or other market on which such Common Stock or other securities is then listed or quoted. For purposes of
this Section 4(e), the term “Short Sales” means, without limitation, all “short sales” as defined in Rule
200 promulgated under Regulation SHO under the Securities Exchange Act of 1934, as amended, and all types of direct and indirect
stock pledges, forward sale contracts, options, puts, calls, swaps and similar arrangements (including on a total return basis),
and sales and other transactions through non-US broker dealers or foreign regulated brokers. 

Section 5.                  Miscellaneous.

a)               No Rights as Stockholder Until Exercise. This Warrant does not entitle the Holder to
any voting rights, dividends or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section
2(d)(i); provided, however, if at any time prior to the expiration of the warrants and their exercise, any of the following
events shall occur: (i) the Company shall take a record of the holders of its shares of Common Stock for the purpose of
entitling them to receive a dividend or distribution payable otherwise than in cash, or a cash dividend or distribution payable
otherwise than out of current or retained earnings, as indicated by the accounting treatment of such dividend or distribution on
the books of the Company or (ii)
the Company shall offer to all the holders of its common stock any additional shares of capital stock of the company or securities
convertible into or exchangeable for shares of capital stock of the company, or any option, right or warrant to subscribe therefor,
or (iii) a dissolution, liquidation or winding up of the company (other than in connection with a consolidation or merger) or
a sale of all or substantially all of its property, assets and business as an entirety shall be proposed; then, in any one or
more of said events, then the Company shall give written notice of such event to the Holder no later than the date of prior notice
of such event required to be given to the stockholders of the Company under any applicable law, regulation, rule of any exchange
on which the Company’s shares of Common Stock are then quoted, or by-law of the Company, but in no event later than twenty
(20) calendar days prior to the date fixed as a record date of the date of closing the transfer books for the determination of
the stockholders of the Company entitled to such dividend, distribution, convertible or exchangeable securities or subscription
rights, or entitled to vote on such proposed dissolution, liquidation, winding up or sale. Such notices shall specify such record
date or the date of closing the transfer books, as the case may be. Failure to give such notice or any defect therein shall not
affect the validity of any action taken in connection with the declaration or payment of any such dividend, or the issuance of
any convertible or exchangeable securities, or subscription rights, options or warrants, or any proposed dissolution, liquidation,
winding up or sale. 

    	14

    	 

    

 

b)                Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon
receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant
or any stock certificate relating to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably
satisfactory to it (which, in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation
of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like
tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate.

c)                 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. For purposes of this Warrant, the term “Business Day”
means days other than Saturdays, Sundays, and days in respect of which banks in the State of California are authorized to be closed.

d)                Authorized Shares. 

The Company
covenants that, during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common Stock a sufficient
number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant.
The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged
with the duty of issuing the necessary Warrant Shares upon the exercise of the purchase rights under this Warrant. The Company
will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein without
violation of any applicable law or regulation, or of any requirements of the Trading Market upon which the Common Stock may be
listed. The Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights represented
by this Warrant will, upon exercise of the purchase rights represented by this Warrant and payment for such Warrant
Shares in accordance herewith, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens
and charges created by the Company in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously
with such issue).

    	15

    	 

    

Except and to
the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending
its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or
sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this
Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions
as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting
the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable
therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate
in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant
and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory
body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant.

Before taking
any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the
Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary
from any public regulatory body or bodies having jurisdiction thereof.

e)                 Jurisdiction. All questions concerning the construction, validity, enforcement and
interpretation of this Warrant shall be determined in accordance with the provisions of the Subscription Agreements.

f)                  Restrictions. The Holder acknowledges that the Warrant Shares acquired upon the exercise
of this Warrant, if not registered and the Holder does not utilize cashless exercise, will have restrictions upon resale imposed
by state and federal securities laws.

g)                Nonwaiver and Expenses. No course of dealing or any delay or failure to exercise any
right hereunder on the part of Holder shall operate as a waiver of such right or otherwise prejudice the Holder’s rights,
powers or remedies, notwithstanding the fact that all rights hereunder terminate on the Termination Date. If the Company willfully
and knowingly fails to comply with any provision of this Warrant, which results in any material damages to the Holder, the Company
shall pay to the Holder such amounts as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable
attorneys’ fees, including those of appellate proceedings, incurred by the Holder in collecting any amounts due pursuant
hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.

h)                Notices. Any notice, request or other document required or permitted to be given or
delivered to the Holder by the Company shall be delivered in accordance with Section 12 of the Subscription Agreements.

i)                  Limitation of Liability. No provision hereof, in the absence of any affirmative action
by the Holder to exercise this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the
Holder, shall give rise to any liability of the Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability
is asserted by the Company or by creditors of the Company.

    	16

    	 

    

 

j)                 Remedies. The Holder, in addition to being entitled to exercise all rights granted
by law, including recovery of damages, will be entitled to specific performance of its rights under this Warrant in respect of
which monetary damages would not be adequate compensation for any loss incurred by reason of a breach by the Company of the provisions
of this Warrant and not resulting from failure of the Holder to satisfy the requirements of this Warrant applicable to the Holder,
and in respect of any such action for specific performance by the Holder under such circumstances, the Company hereby agrees to
waive and not to assert the defense that a remedy at law would be adequate in respect of such loss.

k)                 Successors and Assigns. Subject to applicable securities laws, this Warrant and the
rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the successors and permitted assigns
of the Company and the successors and permitted assigns of Holder. The provisions of this Warrant are intended to be for the benefit
of any Holder from time to time of this Warrant and shall be enforceable by the Holder or holder of Warrant Shares.

l)                 Applicable Law. This Warrant shall be governed by and construed in accordance with
the laws of the State of California applicable to contracts to be wholly-performed within said State, and without regard to the
conflicts of laws principles thereof.

m)               Amendment. This Warrant may be modified or amended or the provisions hereof waived
with the written consent of the Company and the Holder.

n)                Severability.
Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective
to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions
of this Warrant.

o)               Headings. The headings used in this Warrant are for the convenience of reference only
and shall not, for any purpose, be deemed a part of this Warrant.

 

********************

 

FIRST:
(Signature Page Follows)

 

    	17

    	 

    

 

IN WITNESS WHEREOF,
the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.

 

	 	EMMAUS
                    LIFE SCIENCES, INC.

  

	 	By:	

        

        

	 	 	Name:
	 	 	Title: 

 

    	 

    	 

    

 

NOTICE OF EXERCISE

 

To:EMMAUS
LIFE SCIENCES, INC.

 

(1)  
The undersigned hereby elects to purchase ________ Warrant Shares of the Company pursuant
to the terms of the attached Warrant (only if exercised in full), and tenders herewith payment of the exercise price in full, together
with all applicable transfer taxes, if any.

(2)  
Payment shall take the form of (check applicable box):

[   ] in lawful
money of the United States; or

[   ] if permitted,
the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 2(c),
to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure
set forth in subsection 2(c).

(3)  
Please issue said Warrant Shares in the name of the undersigned or in such other name as is
specified below:

_______________________________

 

 

The Warrant Shares shall be delivered to the
following DWAC Account Number:

 

_______________________________

 

_______________________________

 

_______________________________

 

(4) Investor Status.
The undersigned is an “accredited investor” as defined in Regulation D promulgated under the Securities Act of 1933,
as amended.

 

[SIGNATURE
OF HOLDER]

 

Name of Investing Entity: ________________________________________________________________________

Signature of Authorized Signatory of Investing
Entity: _________________________________________________

Name of Authorized Signatory: ___________________________________________________________________

Title of Authorized Signatory: ____________________________________________________________________

Date: ________________________________________________________________________________________

 

    	 

    	 

    

 

EXHIBIT B

 

ASSIGNMENT
FORM

 

(To assign the
foregoing Warrant, execute this form and supply required information. Do not use this form to purchase shares.)

FOR VALUE RECEIVED,
the foregoing Warrant and all rights evidenced thereby are hereby assigned to

	Name:	
	 	(Please Print)
	 	 
	Address:	
	 	(Please Print)
	 	 
	Dated: _______________ __, ______	 
	 	 
	Holder’s
    Signature: ________________	 
	 	 
	Holder’s
Address: _________________Filed by Avantafile.com - Blox, Inc. - Exhibit 10.6

 SHARE
PURCHASE AGREEMENT 

            THIS SHARE PURCHASE AGREEMENT (this “Agreement”) is made
and entered into on June 19, 2013, among NAVA RESOURCES, INC., a Nevada
corporation (the “Purchaser”), QUIVIRA GOLD LTD., a company incorporated
in Ghana (the “Company"), and WARATAH INVESTMENTS LIMITED, a
limited liability company registered under the laws of Ghana (the “Seller”).

WITNESSETH: 

            WHEREAS, the Seller owns all the issued and outstanding capital
stock (the “Shares") of the Company;  

           WHEREAS, on Closing, the Company will own all the issued and
outstanding capital stock of Strategic Marketing Australia Pty. Ltd. (“SMA”),
a company incorporated in Australian with an Australian business number of ABN
43009146089; 

           WHEREAS, Leo Shield Exploration Ghana Ltd., a company incorporated
in Ghana ("Leo Shield"), is a wholly-owned subsidiary of Okore
Mining Pty Ltd. (“Okore”), a company incorporated in Ghana; 

           WHEREAS, Okore is a party to an agreement (the "Leo Shield
Agreement") to sell 90% of the equity of Leo Shield to the Company,
and obtain an assignment of a loan from Equus Mining Limited to Leo Shield; and

           WHEREAS, upon the consummation of the transactions described in
the Leo Shield Agreement, the Purchaser desires to acquire from the Seller, and
the Seller desires to sell to the Purchaser, the Shares upon the terms and
conditions set forth herein. 

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

ARTICLE I 

DEFINITIONS 

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

                      (a) “Action” means any administrative, regulatory,
judicial or other proceeding by or before any Governmental Authority or
arbitrator. 

                      (b) “Affiliate”
means, with respect to any Person, any other Person that, directly or
indirectly, through one or more intermediaries, controls, is controlled by, or
is under common control with, such Person. The term “control” means the
possession, directly or 

 indirectly,
of the power to direct or cause the direction of the management and policies of
a Person, whether through the ownership of voting securities, by contract or
otherwise, including the ability to elect the members of the board of directors
or other governing body of a Person, and the terms “controlled” and
“controlling” have correlative meanings. 

                       (c) “Business Day” means a day on which banks are open for business in the
State of Nevada.

                        (d) “Claims” means any and all claims, demands or causes of action, relating
  to or resulting from an Action.

                      (e) “Contract” means any contract, agreement,
indenture, deed of trust, license, note, bond, mortgage, lease, guarantee and
any similar understanding or arrangement, whether written or oral. 

                      (f) “Employees” mean individuals who provide
employment or employment-type services to the Company, SMA or Leo Shield or any
of its respective Affiliates, other than any such individuals who cease such
employment prior to the Closing, but including any such individuals hired after
the date hereof and prior to the Closing.  

                      (g) “Employee Benefit Plan” means any employee benefit
plan, program, policy, practices, or other arrangement providing benefits to
any Employee or Former Employee, officer or director of the Company, SMA or Leo
Shield or any of its respective Affiliates or any beneficiary or dependent
thereof that is sponsored or maintained by the Company, SMA, Leo Shield or any
of its Affiliates or contribute or are obligated to contribute, whether or not
written, including without limitation any employee welfare benefit plan and any
bonus, incentive, deferred compensation, vacation, stock purchase, stock
option, severance, employment, change of control or fringe benefit plan,
program or policy.  

                      (h) “Employment Agreement” means a written Contract or
offer letter with or addressed to any Employee or Former Employee pursuant to
which the Company, SMA, Leo Shield or any of its respective Affiliates shall,
directly or indirectly, have any actual or contingent liability or obligation to
provide compensation and/or benefits in consideration for past, present or
future services. 

                      (i) “Encumbrances”
means security interests, liens, Claims, charges, title defects, deficiencies
or exceptions (including, with respect to real property, defects, deficiencies
or exceptions in, or relating to, marketability of title, or leases, subleases
or the like affecting title), mortgages, pledges, easements, encroachments,
restrictions on use, rights of-way, rights of first refusal, conditional sales
or other title retention agreements, covenants, conditions or other similar
restrictions (including restrictions on transfer), options, proxies or other
encumbrances of any nature whatsoever. 

                      (j) “Former
Employee” means individuals who, prior to the Closing, provided employment
or employment-type services to the Company, SMA, Leo Shield or any of its
Affiliates.  

2

                       (k) “GAAP”
means United States generally accepted accounting principles. 

                      (l) “Governmental Authority” means any supranational,
national, federal, state or local government, foreign or domestic, or the
government of any political subdivision of any of the foregoing, or any entity,
authority, agency, ministry or other similar body exercising executive,
legislative, judicial, regulatory or administrative authority or functions of
or pertaining to government, including any authority or other
quasi-governmental entity established by a Governmental Authority to perform
any of such functions.  

                      (m) “Indebtedness” of any Person means, without
duplication, (i) all obligations of such Person for money borrowed; (ii) all
obligations of such Person evidenced by notes, debentures, bonds or other
similar instruments for the payment of which such Person is responsible or
liable; (iii) all obligations of such Person issued or assumed for deferred
purchase price payments associated with acquisitions, divestments or other
transactions; (iv) all obligations of such Person under leases required to be
capitalized in accordance with GAAP, as consistently applied by such Person, and
(v) all obligations of such Person for the reimbursement of any obligor on any
letter of credit, banker's acceptance, guarantees or similar credit
transaction, excluding in all cases in clauses (i) through (v) current accounts
payable, trade payables and accrued liabilities incurred in the ordinary course
of business.  

                      (n) “Laws” means all Australian, Canadian, Ghana and
United States federal, state or local or foreign laws, constitutions, statutes,
codes, rules, regulations, ordinances, executive orders, decrees or edicts by a
Governmental Authority having the force of law and pertaining to the matters
contemplated under this Agreement.  

                      (o) “Liabilities” means any and all debts,
liabilities, commitments and obligations, whether or not fixed, contingent or
absolute, matured or unmatured, direct or indirect, liquidated or unliquidated,
accrued or unaccrued, known or unknown, whether or not required by GAAP to be
reflected in financial statements or disclosed in the notes thereto.  

                      (p) “Material
Adverse Change” means, when used in connection with a Person, means any
change, event, violation, circumstance or effect that is, or could reasonably
be expected to be, materially adverse to the business, assets, liabilities,
capitalization, financial condition or results of operations of such Person and
its parent (if applicable) or subsidiaries, taken as a whole, other than any
change, event, violation, inaccuracy, circumstance or effect, (1) relating to
the global economy or securities market in general, (2) resulting from changes
in the price of precious or base metals, (3) resulting from the rate at which
Canadian dollars or United States dollars can be exchanged into each other or
for any foreign currency, or (4) relating to the precious or base metal mining
industries in general and not specifically relating to or affecting such
Person. 

                      (q) “Material
Adverse Effect” means, with respect to a Person, any change, effect, event,
occurrence or state of facts which would reasonably be expected to be
materially adverse to the business, operations or financial condition of such
Person, and its Subsidiaries, taken as a whole, or on the ability of such
Person to consummate the transactions contemplated by this Agreement, other
than any change, effect, event, occurrence or state of facts, (1) that is
generally applicable in the economy of the United States, (2) that is generally
applicable in the United States securities markets, (3) generally affecting the
industry in which the Person operates, (4) arising from or related to an act of
international terrorism, or (5) relating to the announcement or disclosure of
this Agreement and the transactions contemplated hereby.  

3

                       (r) “MI 51-105” means Multilateral Instrument 51-105 –
Issuers Quoted in the U.S. Over-the-Counter Markets as implemented as a
rule or regulation in all jurisdictions of Canada other than Ontario. 

                      (s) “Person” means an individual, partnership,
corporation, limited liability company, joint stock company, unincorporated organization
or association, trust, joint venture or Governmental Authority.  

                      (t) “Required
Consents” means, collectively, (1) each consent or novation with respect to
any Contract to which the Company, SMA, Leo Shield or any of its respective
Affiliates is a party or by which any of its assets are bound required to be
obtained from the other parties thereto by virtue of the execution and delivery
of this Agreement or the consummation of the transactions contemplated hereby
in order to avoid the invalidity of the transfer of such Contract, the
termination or acceleration thereof, giving rise to any obligation to make a
payment thereunder or to any increased, additional or guaranteed rights of any
Person thereunder, a breach or default thereunder or any other change or
modification to the terms thereof, and (2) each registration, filing,
application, notice, transfer, consent, approval, order, qualification and
waiver required from any third party or Governmental Authority by virtue of the
execution and delivery of this Agreement or the consummation of the
transactions contemplated hereby.  

                      (u)  “SEC” means the Securities and Exchange Commission.

                       (v)  “Securities” means the Consideration Shares and the Warrants issued
  under Section 2.2.

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

                       (x) “Subsidiaries” of any entity means, at any date, any Person, (1) the
  accounts of which would be consolidated with those of the applicable entity in such entity's consolidated financial statements if such financial statements were prepared in accordance with GAAP as of such date, or (2) of which securities or other ownership interests representing more than fifty percent (50%) of the equity or more than fifty percent (50%) of the ordinary voting power or, in the case of a partnership, more than fifty percent (50%) of the general partnership interests or more than fifty percent (50%) of the profits or losses of which are, as of such date, owned, controlled or held by the applicable entity or one or more subsidiaries of such entity.

                      (y) “Tax”
means any federal, state, local or foreign taxes, including but not limited to
any income, gross receipts, payroll, employment, excise, severance, stamp,
business, premium, windfall profits, environmental, capital stock, franchise,
profits, withholding, social security (or similar), unemployment, disability,
real property, personal property, sales, use, service, service use, lease,
lease use, transfer, registration, value added tax, or similar tax, any
alternative or add-on minimum tax, and any estimated tax, in each case,
including any interest, penalty, or addition thereto, whether disputed or not. 

4

                       (z) “Tax
Benefit” means the Tax effect of any item of loss, deduction or credit or
any other item (including increases in Tax basis) which decreases Taxes paid or
required to be paid, including any interest with respect thereto or interest
that would have been payable but for such item. 

                      (aa) “Tax Returns” means all returns,
declarations, reports, estimates, information returns and statements required
to be filed in respect of Taxes.  

                      (bb) “Taxing
Authority” means any Governmental Authority having jurisdiction over the
assessment, determination, collection or other imposition of Taxes. 

                      (cc) “Warrants”
means stock purchase warrants of the Purchaser, each such warrant being
exercisable to acquire one share in the common stock of the Purchaser at a
price of $0.05 for a period of five (5) years from the Closing (as defined in
Section 2.3), and each a “Warrant”. ” 

            Section 1.2 References and Title. All references in this
Agreement to articles, sections, subsections and other subdivisions refer to
the articles, sections, subsections and other subdivisions of this Agreement
unless expressly provided otherwise. Titles appearing at the beginning of any
section or subdivision are for convenience only and do not constitute any part
of such subdivisions and shall be disregarded in construing the language
contained in such subdivisions. The words “this Agreement,” “this instrument,”
“herein,” “hereof,” “hereby,” “hereunder” and words of similar import refer to
this Agreement as a whole and not to any particular subdivision unless
expressly so limited.  The phrases “this Section” and “this subsection” and
similar phrases refer only to the sections or subsections hereof in which such
phrases occur. Pronouns in masculine, feminine and neutral genders shall be
construed to include any other gender, and words in the singular form shall be
construed to include the plural and vice versa, unless the context otherwise
requires. All dollar references herein shall be to United States dollars unless
otherwise stated herein. 

ARTICLE II 

  PURCHASE AND
SALE OF SHARES 

            Section 2.1 Purchase and Sale of
Shares.  Upon the terms and subject to the conditions set forth herein, and
on the basis of the representations and warranties contained herein, at the
Closing (defined in Section 2.3), the Seller shall sell, convey, transfer,
assign and deliver to the Purchaser, and the Purchaser shall purchase, acquire
and accept from the Seller, all of the Seller's right, title and interest in
and to the Shares, free and clear of any Encumbrance. The Shares constitute one
hundred percent (100%) of the Company’s outstanding capital stock on a fully
diluted basis, and no other Person has any Claim to the Shares or any equity
interest in the Company.  

5

            Section 2.2 Consideration. As consideration for
the purchase of the Shares, the Purchaser shall issue to the Seller 60,000,000
shares of common stock of the Purchaser (the “Consideration Shares”)
valued at $0.05 per share, or an aggregate value of three million United States
Dollars ($3,000,000), with each such Consideration Share having a Warrant
attached for no additional consideration. The Purchaser agrees that it will
account for the purchase of the Consideration Shares in accordance with the
purchase price specified in this Section 2.2.   

           Section
2.3 Closing. The closing of the acquisition of the Shares by the
Purchaser in consideration for the Securities (the “Closing”) shall
occur at such place and in such manner as the Parties may reasonably determine,
and in any event no later than two (2) Business Days after the date on which
all of the conditions and obligations of the parties as set forth in Articles
VII and VIII of this Agreement shall have been substantially satisfied in all material
respects or otherwise duly waived, or on such other date and at such other
place as the Purchaser and the Seller may hereafter agree upon in writing (such
date and time of the Closing being referred to herein as the “Closing Date”).

           Section
2.4 Deliveries by the Purchaser. At the Closing, the Purchaser shall
deliver to the Seller or a duly appointed representative of the Seller: 

	 	(a)	Certificates representing the Securities, or an irrevocable instruction letter executed by the Purchaser instructing the transfer agent for the Purchaser to issue the Securities to the Seller;

	 	(b)	The certificates described in Sections 8.1(a) and 8.1(b);

	 	(c)	A good standing certificate of the Purchaser, dated not more than five (5) Business Days prior to the Closing Date; and

	 	(d)	Such other

           Section 2.5
  Deliveries by the Seller.  At the Closing, the Seller shall deliver to the
Purchaser the following:

	 	(a)	Stock certificates representing the Shares, duly endorsed
  in blank or accompanied by stock powers duly executed in blank, or other
  instruments of transfer in form and substance reasonably satisfactory to the
  Purchaser;

	 	(b)	The certificates described in Sections 8.2(a) and
8.2(b);

	 	(c)	An
abstract of the commercial register relating to the ownership and good standing
of each of the Company, SMA and Leo Shield, dated not more than five (5)
Business Days prior to the Closing Date;

	 	(d)	An opinion
of counsel to the Seller and the Company, opining as to the validity and
enforceability of this Agreement and the transactions contemplated herein, the
validity of the transfer of the Shares to the Purchaser, that all necessary
governmental consents under the laws of Ghana have been duly and properly
obtained to permit the transfer of the Shares to the Purchaser, that the
Company and Leo Shields are duly incorporated and in good standing under the
laws of Ghana, that the assets held by the Company, and Leo Shields are
lawfully so held and any registrable interests are in good standing with
applicable governmental authorities in Ghana, and the other matters reasonably
requested by counsel to the Purchaser;

6

 	 	(e)	An opinion of counsel to the Seller and the Company,
opining that SMA is duly incorporated and in good standing under the laws of
Australia, that the assets held by SMA are lawfully so held and any registrable
interests are in good standing with applicable governmental authorities in
Australia, and the other matters reasonably requested by counsel to the
Purchaser;

	 	(f)	Signed agreements and other closing documents and records
confirming that the Company has acquired 100% of SMA free and clear of
Encumbrances, the Company has acquired 90% of Leo Shields free and clear of
Encumbrances, and further signed agreements confirming that 90% of the debt
receivable by Equus Mining from Leo Shields in the amount of $11,091,588.12
(the “Equus Debt”) has been assigned by Equus Mining to the Company, in
consideration for the repayment by the Company to Equus of the Equus Debt; 

	 	(g)	Financial statements for the Company, SMA and Leo Shields
prepared in accordance with U.S. GAAP and audited in accordance with applicable
U.S. auditing standards, and in the case of Leo Shields, confirming the
existence of the Equus Debt, and other information required under the rules of
the SEC for purposes of inclusion in the Purchaser's filing of a Current Report
on Form 8­K disclosing the consummation of the transactions contemplated by
this Agreement;

	 	(h)	A technical report on the mineralization and resources
(if applicable)  on the Kwatechi prospecting license and the Grumesa-Awisam
concession in such form as the Purchaser may reasonably request in order to
comply with the Laws; and

	 	(i)	Such other
documents and instruments as reasonably requested by the Purchaser, including
but not limited to maters required to be disclosed in the Form 8-K to be filed
by the Purchaser as described in Section 2.7(f).

           Section 2.6 Further
Assurances. From time to time from and after the Closing Date, as and when
reasonably requested by a party, the other parties shall execute and deliver
all such other instruments and shall take further actions as the party
reasonably may deem necessary or desirable in order to confirm or record or
otherwise effectuate the purchase and sale of the Shares for the issuance of
the Securities. 

7

 ARTICLE
III
THE SECURITIES 

            Section
3.1 Securities. The Securities issued to the Seller upon the Closing
shall be deemed to have been issued in full satisfaction of all rights of the
Seller pertaining to his rights in and to the Shares. After the Closing, the
holders of certificates formerly representing shares of the Company’s common
stock shall cease to have any rights as shareholders of the Company. 

           Section
3.2 Registration Exemption. It is intended that the Securities to be
issued pursuant to this Agreement will be issued pursuant to Regulation S of the
Securities Act and therefore shall not require registration under the
Securities Act or any Law.   

           Section
3.3 Restrictive Legends. Certificates evidencing the Securities,
pursuant to this Agreement and any securities issued on exercise or exchange of
any of the Securities, may bear one or more of the following legends, including
without limitation, any legend required by the laws of any jurisdiction in
which a holder of Securities resides, and any legend required by applicable
law, including without limitation, any legend that will be useful to aid
compliance with Regulation S or other regulations adopted by the SEC under the
Securities Act: 

  “THE SECURITIES ARE BEING OFFERED TO
    INVESTORS WHO ARE NOT U.S. PERSONS (AS DEFINED IN REGULATION S UNDER THE SECURITIES
    ACT OF 1933, AS AMENDED (“THE SECURITIES ACT”)) AND WITHOUT REGISTRATION WITH
    THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT
    IN RELIANCE UPON REGULATION S PROMULGATED UNDER THE SECURITIES ACT.” 

  “TRANSFER OF THESE SECURITIES IS
    PROHIBITED, EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S, PURSUANT
    TO REGISTRATION UNDER THE SECURITIES ACT, OR PURSUANT TO AVAILABLE EXEMPTION
    FROM REGISTRATION. HEDGING TRANSACTIONS MAY NOT BE CONDUCTED UNLESS IN
    COMPLIANCE WITH THE SECURITIES ACT.” 

           Section
3.4 Subsidiary of the Purchaser. Effective as of the Closing, the
Company shall be a wholly-owned subsidiary of the Purchaser (or an entity that
is itself directly or indirectly wholly controlled by the Purchaser).  

           Section
3.5 Seller Undertaking. 

           (a) Pursuant
to MI 51-105 a subsequent trade in the Securities in or from any province in
Canada will be a distribution subject to the prospectus and registration
requirements of applicable Canadian securities legislation unless certain
conditions are met, which conditions include, among others, a requirement that
any certificate representing the Securities (or ownership statement issued
under a direct registration system or other book entry system) bear the
restrictive legend (the “51-105 Legend”) specified in MI 51-105. 

8

            (b) The Seller
undertakes not to trade or resell any of the Securities in or from any
provinces subject to MI 51-105. The Seller understands and agrees that the
Purchaser and others will rely upon the truth and accuracy of these
representations and warranties and agrees that if such representations and
warranties are no longer accurate or have been breached, the Seller will
immediately notify the Purchaser. 

           (c) By
executing and delivering this Agreement and as a consequence of the
representations and warranties made by the Seller in this section, the Seller
will have directed the Purchaser not to include the 51-105 Legend on any
certificates representing the Securities to be issued to the Seller. As a
consequence, the Seller will not be able to rely on the resale provisions of MI
51-105, and any subsequent trade in any of the Securities in or from the
provinces subject to MI 51-105 will be a distribution subject to the prospectus
and registration requirements of MI 51-105. 

           (d) If the Seller wishes to trade or
resell any of the Securities in or from a province subject to MI 51-105, the
Seller agrees and undertakes to return, prior to any such trade or resale, any
certificate representing the Securities to the Purchaser’s transfer agent to
have the 51-105 Legend imprinted on such certificate or to instruct the
Purchaser’s transfer agent to include the 51-105 Legend on any ownership
statement issued under a direct registration system or other book entry system.

ARTICLE
IV

REPRESENTATIONS AND WARRANTIES OF THE PURCHASER 

           As an
inducement to the Seller to enter into this Agreement and to consummate the
transactions contemplated herein, the Purchaser represents and warrants to the
Company and the Seller that the following are true and correct as of the date
hereof and will be true and correct at Closing: 

           Section
4.1 Organization. The Purchaser is a corporation duly organized, validly
existing, and in good standing under the laws of the State of Nevada.  The
Purchaser has all requisite power to own, operate and lease its business and
assets and carry on its business as the same is now being conducted. 

           Section
4.2 Corporate Power and Authority. The Purchaser has all requisite power
and authority to enter into and deliver this Agreement and the other
agreements, documents and instruments to be executed and delivered in
connection with this Agreement (collectively, the “Transaction Documents”)
and to consummate the transactions contemplated hereby and thereby. The
execution, delivery, and performance of this Agreement and the Transaction
Documents by the Purchaser and the consummation by it of the transactions
contemplated hereby and thereby have been duly authorized by all necessary
action on the part of the Purchaser and no other action or corporate proceeding
on the part of the Purchaser is necessary to authorize the execution, delivery,
and performance by the Purchaser of this Agreement and the Transaction
Documents and the consummation of the transactions contemplated hereby and
thereby.  This Agreement and each of the Transaction Documents have been duly
executed and delivered by the Purchaser and constitute the legal, valid and
binding obligation of the Purchaser, enforceable against the Purchaser in
accordance with their respective terms. 

9

            Section 4.3 Conflicts; Consents and Approvals.
Neither the execution nor delivery by the Purchaser of this Agreement and the
Transaction Documents to be executed and delivered by it in connection with
this Agreement or the Transaction Documents, nor the consummation of the
transactions contemplated hereby and thereby, will: 

           (a) conflict with, or result in a breach of any provision of,
the organizational documents of the Purchaser; 

           (b) violate, or conflict with, or result in a breach of any
provision of, or constitute a default (or an event that, with the giving of
notice, the passage of time or otherwise, would constitute a default) under, or
entitle any Person (with the giving of notice, the passage of time or
otherwise) to terminate, accelerate, modify or call a default under, or give
rise to any obligation to make a payment under, or to any increased, additional
or guaranteed rights of any Person under, or result in the creation of any
Encumbrance upon any of the properties or assets of the Purchaser or the
Securities under any of the terms, conditions or provisions of, (1) the
organizational documents of the Purchaser, (2) any Contract to which the
Purchaser is a party or to which any of its properties or assets may be bound
which, if so affected, would either have a Material Adverse Effect or be
reasonably likely to prevent the consummation of the transactions contemplated
herein, or (3) any permit, registration, approval, license or other
authorization or filing to which the Purchaser is subject or to which any of
its properties or assets may be subject;  

           (c) require any action, consent or approval of any
non-governmental third party, other than the consent of the Purchaser’s Board of
Directors;  

           (d) violate any order, writ, or injunction, or any material
decree, or material Law applicable to the Purchaser or any of its, business,
properties, or assets; or 

           (e) require
any action, consent or approval of, or review by, or registration or filing by
the Purchaser with any Governmental Authority other than the filing of a
Current Report on Form 8-K regarding the consummation of the transactions
contemplated hereby.  

           Section
4.4 Securities. As of the Closing, all of the Consideration Shares shall
be duly authorized, validly issued, fully paid and non-assessable, and not
issued in violation of any preemptive or similar rights, and the Warrants will
be duly authorized and validly issued.  As of the Closing, the Seller will
acquire good and valid title to such Securities, free and clear of any
Encumbrances, other than restrictions under applicable securities laws. 

           Section
4.5 No Material Adverse Effect. As of the date of this Agreement, (a)
the Purchaser has (1) maintained its books and records in accordance with past
accounting practice, and (2) used all reasonable commercial efforts to preserve
intact the assets and the business organization and operations of the
Purchaser, to keep available the services of its employees and to preserve its
relationships with customers, suppliers, licensors, licensees, contractors and
other persons with whom the Purchaser have business relations, (b) no Material
Adverse Effect on the Purchaser has occurred, and (c) there has been no event,
occurrence or development that has had, or would reasonably be expected to
have, a Material Adverse Effect on the ability of the Purchaser to timely
consummate the transactions contemplated hereby. 

10

            Section 4.6 Compliance with Law. The Purchaser
and each of its officers, directors, employees and agents have complied in all
respects with all Laws applicable to the Purchaser and its operations. Neither
the Purchaser nor any of its officers, directors or agents have received any
notice from any Governmental Authority that the Purchaser has been or is being
conducted in violation of any applicable Law or that an investigation or
inquiry into any noncompliance with any applicable Law is ongoing, pending or
threatened.  

           Section
4.7 Litigation. There is no Action pending or threatened against the
Purchaser or any of its officers or directors in each case that, (a) relates to
the Purchaser, its assets or its business, or (b) as of the date hereof, seeks,
or could reasonably be expected, to prohibit or restrain the ability of the Purchaser
to enter into this Agreement or to timely consummate any of the transactions
contemplated hereby, and there is no reasonable basis for any such Action.
There are no judgments, decrees, agreements, memoranda of understanding or
orders of any Governmental Authority outstanding against the Purchaser.  

           Section
4.8 Permits; Compliance. The Purchaser is in possession of all
franchises, grants, authorizations, licenses, permits, easements, variances,
exemptions, consents, certificates, approvals and orders necessary to own,
lease and operate its properties and assets and to carry on its business as it
is now being conducted and as it will be conducted through to the Closing
(collectively, the “Purchaser Permits”). There is no Action pending, or
threatened, regarding any of the Purchaser Permits and each such Permit is in
full force and effect.  The Purchaser is not in conflict with, or in material
default (or would be in default with the giving of notice, the passage of time,
or both) with, or in violation of, any of the Purchaser Permits. 

           Section
4.9 SEC Reports; Financial Statements. The Purchaser has filed all
reports, schedules, forms, statements and other documents required to be filed
by the Purchaser under the Securities Act and the Exchange Act (the foregoing
materials, including the exhibits thereto and documents incorporated by
reference therein, being collectively referred to herein as the “SEC Reports”). 
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 the
light of the circumstances under which they were made, not misleading.  The
financial statements of the Purchaser included in the SEC Reports comply in all
material respects with applicable accounting requirements and the rules and
regulations of the SEC with respect thereto as in effect at the time of
filing.  Such financial statements have been prepared in accordance with GAAP,
except as may be otherwise specified in such financial statements or the notes
thereto and except that unaudited financial statements may not contain all
footnotes required by GAAP, and fairly present in all material respects the
financial position of the Purchaser as of and for the dates thereof and the
results of operations and cash flows for the periods then ended, subject, in
the case of unaudited statements, to normal, immaterial, year-end audit
adjustments. 

11

            Section
4.10 Material Changes. Since the date of the latest audited financial
statements included within the SEC Reports, 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 Purchaser 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 which in the aggregate will not exceed $10,000 as
of the Closing Date, and (b) liabilities not required to be reflected in the
Purchaser’s financial statements pursuant to GAAP or disclosed in filings made
with the SEC, (iii) the Purchaser has not altered its method of accounting,
(iv) the Purchaser has not declared or made any dividend or distribution of
cash or other property to its stockholders or purchased, or made any agreements
to purchase, any shares of its capital stock and (v) the Purchaser has not
issued any equity securities to any officer, director or Affiliate. The
Purchaser does not have pending before the SEC any request for confidential
treatment of information. Except for the issuance of the Securities
contemplated by this Agreement, no event, liability or development has occurred
or exists with respect to the Purchaser or its business, properties, operations
or financial condition, that would be required to be disclosed by the Purchaser
under applicable securities laws at the time this representation is made that
has not been publicly disclosed at least four (4) Business Day prior to the
date that this representation is made. 

           Section 4.11 No Brokers or Finders. The
Purchaser has not, nor have any of its Affiliates, employed any broker or
finder or incurred any Liability for any brokerage or finder's fee or
commissions or similar payment in connection with the transactions contemplated
herein, and no Person has or will have any right, interest or valid claim
against or upon the Purchaser the Sellers, the Company or its or their
Affiliates for any such fee or commission. 

           Section
4.12 Tax Matters. 

           (a) The Purchaser has filed or caused to be filed on a timely
basis all Tax Returns that are or were required to be filed by it, pursuant to
the Laws or administrative requirements of each Governmental Body with taxing
power over it or its assets.  As of the time of filing, all such Tax Returns
correctly reflected the facts regarding the income, business, assets,
operations, activities, status, and other matters of the Purchaser and any
other information required to be shown thereon. An extension of time within
which to file any such Tax Return that has not been filed has not been
requested or granted. There is no audit, Action, Claim or any investigation or
inquiry, whether formal or informal, public or private, now pending or
threatened against or with respect to the Purchaser in respect of any Tax.   

           (b) With respect to all amounts in respect of Taxes imposed
on the Purchaser or for which it is or could be reasonably liable, whether to
Governmental Authorities (as, for example, under Law) or to other Persons (as,
for example, under tax allocation agreements), with respect to all taxable
periods or portions of periods since its inception through the Closing, (i) all
applicable tax laws and agreements have been complied with in all material respects,
(ii) all such amounts required to be paid by the Purchaser to Governmental
Authorities or others on or before the date hereof have been paid, and (iii)
reserves have been established for the payment of all Taxes not yet due and
payable, which reserves are reflected in the Financial Statements (described
below) and are adequate and in accordance with the past custom and practice of
the Purchaser.

12

            (c) As of the date hereof, the Purchaser has not requested,
executed or filed with the IRS or any other Governmental Authority any
agreement or other document extending or having the effect of extending the
period for assessment or collection of any Taxes for which the Purchaser could
be liable and which still is in effect. There exists no tax assessment, proposed
or otherwise, against the Purchaser nor any Encumbrance for Taxes against any
assets or property of the Purchaser. 

           (d) All Taxes that the Purchaser is or was required by Law to
withhold or collect have been duly withheld or collected and, to the extent
required, have been paid to the proper Governmental Authorities or other
Person. 

           (e) The Purchaser is not a party to, bound by or subject to
any obligation under any tax sharing, tax indemnity, tax allocation or similar
agreement. 

           (f) There is
no Claim, audit, Action, proceeding, or investigation with respect to Taxes due
or claimed to be due from the Purchaser or of any Tax Return filed or required
to be filed by the Purchaser pending or threatened against or with respect to
the Purchaser. The Purchaser has not filed a consent pursuant to Section 341(f)
of the Code (or any corresponding provision of state, local or foreign income
tax law) or agreed to have Section 341(f)(2) of the Code (or any corresponding
provision of state, local or foreign income tax law) apply to any disposition
of a subsection (f) asset (as such term is defined in Section 341(f)(4) of the
Code) owned by the Purchaser. 

           Section 4.13 Full Disclosure. No representation
or warranty of the Purchaser in this Agreement omits to state a material fact
necessary to make the statements herein, in light of the circumstances in which
they were made, not misleading. There is no fact known to the Purchaser that
Materially Adversely affects or, as far as can be reasonably foreseen,
materially threatens, the assets, business, prospects, financial condition or
results of operations of the Purchaser that has not been set forth in this
Agreement. 

ARTICLE V

  REPRESENTATIONS
AND WARRANTIES OF THE SELLER 

           As an
inducement to the Purchaser to enter into this Agreement and to consummate the
transactions contemplated herein, the Seller represents and warrants to the
Purchaser that the following are true and correct as of the date hereof and
will be true and correct at Closing:  

           Section
5.1 Power and Authority. The Seller has all requisite power and
authority, to enter into and deliver this Agreement and the Transaction
Documents and to consummate the transactions contemplated hereby and thereby. 
The execution, delivery and performance of this Agreement and the Transaction
Documents by the Seller and the consummation of the transactions contemplated
hereby and thereby, have been duly authorized by all necessary action, and no
other action or proceeding on the part of the Seller is necessary to authorize
the execution, delivery and performance by such the Seller of this Agreement
and the Transaction Documents and the consummation by the Seller of the
transactions contemplated hereby and thereby.  This Agreement and each of the
Transaction Documents have been duly executed and delivered by the Seller and
constitutes the legal, valid and binding obligation of the Seller, enforceable
against him in accordance with their respective terms. 

13

            Section 5.2 Conflicts; Consents and Approvals.
Neither the execution nor delivery by the Seller of this Agreement and the
Transaction Documents to be executed and delivered by it in connection with
this Agreement and the Transaction Documents, nor the consummation of the
transactions contemplated hereby and thereby, will:  

           (a) violate, or conflict with, or result in a breach of any
provision of, or constitute a default (or an event that, with the giving of
notice, the passage of time or otherwise, would constitute a default) under, or
entitle any Person (with the giving of notice, the passage of time or
otherwise) to terminate, accelerate, modify or call a default under, or give
rise to any obligation to make a payment under, or to any increased, additional
or guaranteed rights of any Person under, or result in the creation of any
Encumbrance upon any of the properties or assets of the Company under any of
the terms, conditions or provisions of, (1) the organizational documents of the
Company or Leo Shield, (2) any Contract to which such the Seller is a party or
to which any of his properties or assets may be bound or (3) any permit,
registration, approval, license or other authorization or filing to which the
Seller is subject or to which any of its properties or assets may be subject;  

           (b) require any action, consent or approval of any
Governmental Authority or non­governmental third party, other than as set forth
in the Seller’s response to the Purchaser’s due diligence questionnaire (the “DD
Questionnaire”); or  

           (c) violate
any order, writ or injunction, or any decree, or Law applicable to the Seller
or any of his businesses, properties or assets. 

           Section
5.3 Title to Shares. The Seller is the sole record and beneficial owner
of the Shares and has good and marketable title to the Shares, free and clear
of all Encumbrances. Upon Closing, the Purchaser shall be the lawful record and
beneficial owner of the Shares, free and clear of all Encumbrances. The Shares
represent 100% ownership of the Company on a fully-diluted basis. The assets of
the Company are, or will be on Closing: (1) a 90% registered and beneficial
interest in the issued and outstanding equity of Leo Shield; (2) the assignment
of 90% of the Equus Debt; (3) the Osenase, Pramkese and Asamankese prospecting
licenses in Ghana (collectively, the “Prospecting Licenses”); and (4) a
100% registered and beneficial interest in the issued and outstanding equity of
SMA. No other Person has any direct or indirect interest or right to the
Company, SMA or Leo Shield other than 10% of the issued and outstanding shares
of Leo Shield which are held by Okore. 

           Section 5.4 Title to Underlying
Assets. Leo Shield holds the following, which are as at the date hereof and
shall be as at Closing, in good standing and duly registered with applicable
governmental authorities (i) a 0.5% Production Royalty on the Grumesa-Awisam
concession in Ghana, and (ii) a free carried right to earn-in to a 7% equity
interest in a joint venture company to be formed with Sun Gold, Tropical
Exploration and Mining Company Limited and the government of Ghana, for the
purpose of conducting mining operations on the Kwatechi concession. 

14

            Section 5.5 Assets and Liabilities of SMA. On
Closing, all of the assets and liabilities of SMA will be as described in
Schedule “A” hereto. 

           Section
5.6 Securities Representations. 

           (a) Investment Purposes. The Seller is acquiring the
Securities for his own account as principal, not as a nominee or agent, for
investment purposes only, and not with a view to, or for, resale, distribution
or fractionalization thereof in whole or in part in any transactions that would
be in violation of the Securities Act or any state securities or
"blue-sky" laws.  Other than the Seller’s Affiliates, no other Person
has a direct or indirect beneficial interest in, and the Seller does not have
any contract, undertaking, agreement or arrangement with any Person to sell,
transfer or grant participations to such Person or to any third party, with
respect to, the Securities or any part thereof. 

           (b) No General Solicitation.  The Seller is not
receiving the Securities as a result of or subsequent to any advertisement,
article, notice or other communication published in any newspaper, magazine or
similar media or broadcast over television or radio; or presented at any seminar
or similar gathering; or any solicitation of a subscription by a Person, other
than the Purchaser’s personnel, previously known to the Seller. 

           (c) No Obligation to Register Shares. The Seller
understands that the Purchaser is under no obligation to register the
Securities under the Securities Act, or to assist the Seller in complying with
the Securities Act or the securities laws of any state of the United States or
of any foreign jurisdiction. The Seller understands that the Securities must be
held indefinitely unless the sale thereof is subsequently registered under the
Securities Act and applicable state securities laws or exemptions from such
registration are available.  All certificates evidencing the Securities will
bear a legend stating that the Securities have not been registered under the
Securities Act or state securities laws and they may not be resold unless they
are registered under the Securities Act and applicable state securities laws or
exempt therefrom. 

           (d) Investment Experience. The Seller, or his
professional advisors, has such knowledge and experience in finance,
securities, taxation, investments and other business matters as to evaluate
investments of the kind described in this Agreement.  By reason of the business
and financial experience of the Seller or his professional advisor, the Seller
can protect his own interests in connection with the transactions described in
this Agreement.  The Seller is able to afford the loss of his entire investment
in the Securities. 

           (e) Exemption from Registration. The Seller
acknowledges his understanding that the offering and sale of the Shares is
intended to be exempt from registration under the Securities Act. In
furtherance thereof, in addition to the other representations and warranties of
the Seller made herein, the Seller further represents and warrants to and
agrees with the Purchaser as follows: 

                      (1) The Seller has the financial ability to bear the economic
risk of his investment, has adequate means for providing for his current needs
and personal contingencies and has no need for liquidity with respect to the
Securities;  

15

                       (2) The Seller has such knowledge and experience in
financial and business matters as to be capable of evaluating the merits and
risks of the prospective investment in the Securities; 

                      (3) The Seller has been provided an opportunity for a
reasonable period of time prior to the date hereof to obtain additional
information concerning the Purchaser and all other information to the extent
the Purchaser possesses such information or can acquire it without unreasonable
effort or expense; and 

                      (4) The Seller has received and reviewed the documents filed
by the Purchaser with the SEC and has also considered the uncertainties and
difficulties frequently encountered by companies such as the Purchaser.  

           (f) Regulation
S Exemption. The Seller understands that the Securities are being offered
and sold in reliance on an exemption from the registration requirements of
United States federal and state securities laws under Regulation S promulgated
under the Securities Act and that the Purchaser is relying upon the truth and
accuracy of the representations, warranties, agreements, acknowledgments and
understandings of the Seller set forth herein in order to determine the
applicability of such exemptions and the suitability of the Seller to acquire
the Securities. In this regard, the Seller represents, warrants and agrees
that: 

	 	1.	The Seller is not a U.S. Person (as defined below) or an affiliate
(as defined in Rule 501(b) under the Securities Act) of the Purchaser and is
not acquiring the Securities for the account or benefit of a U.S. Person.  A
U.S. Person means any one of the following:

	 	 		any natural person resident in the United States of America; 
	 any partnership or corporation organized or incorporated under the laws of the
        United States of America; 
	 any estate of which any executor or administrator is a U.S. person; 
	 any trust of which any trustee is a U.S. person; 
	 any agency or branch of a foreign entity located in the United States of
        America; 
	 any non-discretionary account or similar account (other than an estate or
        trust) held by a dealer or other fiduciary for the benefit or account of a U.S.
        person; 
	 any discretionary
        account or similar account (other than an estate or trust) held by a dealer or
        other fiduciary organized, incorporated or (if an individual) resident in the
        United States of America; and 

16

 	 	 		 any partnership or corporation if: 

	 	(A)	organized or incorporated under the
laws of any foreign jurisdiction; and (B) formed by a U.S. person principally
for the purpose of investing in securities not registered under the Securities
Act, unless it is organized or incorporated, and owned, by accredited investors
(as defined in Rule 501(a) under the Securities Act) who are not natural
persons, estates or trusts.

	 	2.	At the time of
the origination of contact concerning this Agreement and the date of the
execution and delivery of this Agreement, the Seller was outside of the United
States.

	 	3.	The Seller will
not, during the period commencing on the date of issuance of the Securities and
ending no less than the twelve (12) month anniversary of such date, (the “Restricted
Period”), offer, sell, pledge or otherwise transfer the Securities in the
United States, or to a U.S. Person for the account or for the benefit of a U.S.
Person, or otherwise in a manner that is not in compliance with Regulation S.  

	 	4.	The Seller will,
after expiration of the Restricted Period, offer, sell, pledge or otherwise
transfer the Securities only pursuant to registration under the Securities Act
or an available exemption therefrom and in accordance with all applicable state
and foreign securities laws.

	 	5.	The Seller was
not in the United States, engaged in, and prior to the expiration of the
Restricted Period will not engage in, any short selling of or any hedging
transaction with respect to the Securities, including without limitation, any
put, call or other option transaction, option writing or equity swap.

	 	6.	Neither the
Seller nor any Person acting on his behalf has engaged, nor will engage, in any
directed selling efforts to a U.S. Person with respect to the Securities and
the Seller and any Person acting on his behalf have complied and will comply
with the “offering restrictions” requirements of Regulation S under the
Securities Act.

	 	7.	The transactions
contemplated by this Agreement have not been pre-arranged with a buyer located
in the United States or with a U.S. Person, and are not part of a plan or
scheme to evade the registration requirements of the Securities Act.

	 	8.	Neither the Seller
nor any Person acting on his behalf has undertaken or carried out any activity
for the purpose of, or that could reasonably be expected to have the effect of,
conditioning the market in the United States, its territories or possessions,
for any of the securities of the Purchaser. The Seller agrees not to cause any
advertisement of the securities of the Purchaser to be published in any
newspaper or periodical or posted in any public place and not to issue any
circular relating to such securities, except such advertisements that include
the statements required by Regulation S

17

 	 	 	under the
Securities Act, and only offshore and not in the U.S. or its territories, and
only in compliance with any local applicable securities laws. 

            (g) No Reliance. Other than as set forth herein, the
Seller is not relying upon any other information, representation or warranty by
the Purchaser or any officer, director, stockholder, agent or representative of
the Purchaser in determining to transfer and sell the Shares to the Purchaser
in consideration for the issuance of the Securities to the Seller. The Seller
has consulted, to the extent deemed appropriate by the Seller, with his own
advisers as to the financial, tax, legal and related matters concerning an
investment in the Securities and on that basis believes that his investment in
the Securities is suitable and appropriate for him. 

           (h) No Governmental Review. The Seller is aware that
no federal or state agency has (1) made any
finding or determination as to the fairness of this investment, (2) made any
recommendation or endorsement of the Securities or the Purchaser, or (3)
guaranteed or insured any investment in the Securities or any investment made
by the Purchaser. 

           Section
5.7 Non-Canadian Resident. The Seller is not a resident of Canada.  

           Section
5.8 Full Disclosure. No representation or warranty of the Seller in this
Agreement omits to state a material fact necessary to make the statements
herein, in light of the circumstances in which they were made, not misleading. 

           Section
5.9 No Material Adverse Effect.  As of the date of this Agreement, no
Material Adverse Effect on the Seller has occurred and there has been no event,
occurrence or development that has had, or would reasonably be expected to
have, a Material Adverse Effect on the ability of the Seller to timely
consummate the transactions contemplated herein.   

ARTICLE VI

  REPRESENTATIONS AND WARRANTIES RELATING TO
THE COMPANY AND

THE SELLER 

           As an
inducement to the Purchaser to enter into this Agreement and to consummate the
transactions contemplated herein, the Company and the Seller jointly and
severally represent and warrant to the Purchaser as follows:  

           Section
6.1 Organization. The Company is a corporation duly organized and
validly existing under the laws of Ghana. The Company has all requisite power
to own, operate and lease its business and assets and carry on its business as
the same is now being conducted. Leo Shield is a corporation duly organized and
validly existing under the laws of Ghana.  Leo Shield has all requisite power
to own, operate and lease its business and assets and carry on its business as
the same is now being conducted. SMA is a corporation duly organized and
validly existing under the laws of Australia. SMA has all requisite power to
own, operate and lease its business and assets and carry on its business as the
same is now being conducted. 

18

            Section
6.2 Corporate Power and Authority. The Company has all requisite power
and authority to enter into and deliver this Agreement and the Transaction
Documents and to consummate the transactions contemplated hereby and thereby. 
The execution, delivery, and performance of this Agreement and the Transaction
Documents by the Company and the consummation of the transactions contemplated
hereby and thereby have been duly authorized by all necessary action, and no
other action or proceeding on the part of the Company is necessary to authorize
the execution, delivery and performance by the Company of this Agreement and
the Transaction Documents and the consummation by the Company of the
transactions contemplated hereby and thereby.  

           This Agreement and each of the Transaction Documents
have been duly executed and delivered by the Company and constitutes the legal,
valid and binding obligation of the Company, enforceable against it in
accordance with their respective terms. 

           Section
6.3 Conflicts; Consents and Approvals. Neither the execution and
delivery by the Company of this Agreement and the Transaction Documents to be
executed and delivered by it in connection with this Agreement and the
Transaction Documents, nor the consummation of the transactions contemplated
hereby and thereby, will:  

                      (a) conflict with, or result in a breach of any provision of,
the organizational documents of either the Company, SMA or Leo Shield; 

                      (b) violate, or conflict with, or result in a breach of any
provision of, or constitute a default (or an event that, with the giving of
notice, the passage of time or otherwise, would constitute a default) under, or
entitle any Person (with the giving of notice, the passage of time or
otherwise) to terminate, accelerate, modify or call a default under, or give
rise to any obligation to make a payment under, or to any increased, additional
or guaranteed rights of any Person under, or result in the creation of any
Encumbrance upon any of the properties or assets of the Company, SMA or Leo
Shield under any of the terms, conditions or provisions of, (1) the
organizational documents of the Company, SMA or Leo Shield, (2) any Contract to
which the Company, SMA or Leo Shield is a party or to which any of its
respective properties or assets may be bound, or (3) any permit, registration,
approval, license or other authorization or filing to which the Company, SMA or
Leo Shield is subject or to which any of its respective properties or assets
may be subject;  

                      (c) require any action, consent or approval of any Person,
other than as indicated in the DD Questionnaire; 

                      (d) violate any order, writ, or injunction, or any decree, or
Law applicable to the Company, SMA or Leo Shield or any of its respective
business, properties, or assets; or 

                      (e) require
any action, consent or approval of, or review by, or registration or filing by
the Company, SMA or Leo Shield with any Governmental Authority, other than as
indicated in the DD Questionnaire. 

19

             Section
6.4 Capital Structure. The authorized capital of the Company consists of
1,000,000 shares of common stock, with no par value per share, of which 500
shares are issued and outstanding,  (i) with each holder thereof being entitled
to cast one vote for each Share held on all matters  properly submitted  to the
shareholders for their vote; and (ii) there being no pre-preemptive  rights and
no cumulative voting.  The Company has no shares reserved for issuance pursuant
to a stock option plan or pursuant to securities exercisable for, or
convertible into or exchangeable for, shares of common stock.  All of the
issued and outstanding shares of the Company are duly authorized, validly
issued, fully paid and nonassessable and owned by the Seller. The Shares
constitute one hundred percent (100%) of the issued and outstanding capital
stock of the Company on a fully-diluted basis, and, upon the Closing, the
Purchaser will own one hundred percent (100%) of the issued and outstanding
capital stock of the Company. No shares of capital stock of the Company are
subject to preemptive rights or any other similar rights. There are, (i) no
outstanding options, warrants, scrip, rights to subscribe for, puts, calls,
rights of first refusal, agreements, proxies, understandings, claims or other
commitments or rights of any character whatsoever relating to, or securities or
rights convertible into or exchangeable for any shares of capital stock of the
Company or arrangements by which the Company is or may become bound to issue
additional shares of capital stock of the Company, (ii) no agreements or
arrangements under which the Company is obligated to register the sale of any
of its securities under the Securities Act or any other Law, and (iii) no
anti-dilution or price adjustment provisions contained in any security issued
by the Company (or any agreement providing any such rights). 

           The authorized capital of Leo Shield consists of
100,000 shares  of common stock, with no par value per share, all of which are
issued and outstanding, (i) with each holder thereof being entitled to cast one
vote for each  share held on all matters  properly submitted to the shareholders
for their vote; and (ii) there being no  pre-preemptive  rights and no
cumulative voting. Leo Shield has no shares reserved for issuance pursuant to a
stock option plan or pursuant to securities exercisable for, or convertible
into or exchangeable for, shares of common stock. At Closing, all of the issued
and outstanding shares of Leo Shield are duly authorized, validly issued, fully
paid and nonassessable and 90 percent  owned by the Company and 10% by Okore.
The shares owned by the Company at Closing will constitute ninety percent (90%)
of the issued and outstanding capital stock of Leo Shield on a fully-diluted
basis. The Company owns no asset as of the date hereof. On the Closing, the
Company will own 90% of the issued and outstanding capital stock of Leo Shield
and the assignment of the debt owed by Leo Shield to Equus. No shares of
capital stock of Leo Shield are subject to preemptive rights or any other
similar rights.  There are (i) no outstanding options, warrants, scrip, rights
to subscribe for, puts, calls, rights of first refusal, agreements, proxies,
understandings, claims or other commitments or rights of any character
whatsoever relating to, or securities or rights convertible into or
exchangeable for any shares of capital stock of Leo Shield or arrangements by
which Leo Shield is or may become bound to issue additional shares of capital
stock of Leo Shield, (ii) no agreements or arrangements under which Leo Shield
is obligated to register the sale of any of its securities under the Securities
Act or any other Law, and (iii) no anti-dilution or price adjustment provisions
contained in any security issued by Leo Shield (or any agreement providing any
such rights). 

20

            The
authorized capital of SMA consists of four shares  of common  stock, with no
par value per share, of which four shares are issued and outstanding,  (i) with
each holder thereof being entitled to cast one vote for each share held  on all
matters  properly submitted  to the shareholders for their vote; and (ii) there
being no  pre-preemptive  rights and no cumulative voting. SMA has no shares
reserved for issuance pursuant to a stock option plan or pursuant to securities
exercisable for, or convertible into or exchangeable for, shares of common
stock.  All of the issued and outstanding shares of SMA are duly authorized,
validly issued, fully paid and nonassessable and owned by the Company.  The
shares constitute one hundred percent (100%) of the issued and outstanding
capital stock of SMA on a fully-diluted basis, and, upon the Closing, the
Purchaser will own one hundred percent (100%) of the issued and outstanding
capital stock of SMA. No shares of capital stock of SMA are subject to
preemptive rights or any other similar rights.  There are (i) no outstanding
options, warrants, scrip, rights to subscribe for, puts, calls, rights of first
refusal, agreements, proxies, understandings, claims or other commitments or
rights of any character whatsoever relating to, or securities or rights
convertible into or exchangeable for any shares of capital stock of SMA or
arrangements by which SMA is or may become bound to issue additional shares of
capital stock of SMA, (ii) no agreements or arrangements under which SMA is
obligated to register the sale of any of its securities under the Securities Act
or any other Law, and (iii) no anti-dilution or price adjustment provisions
contained in any security issued by SMA (or any agreement providing any such
rights). 

           Section 6.5 Intellectual Property. Neither the
Company nor Leo Shield has any, (i) patents and applications therefor
throughout the world, and all reissues, divisions, renewals, extensions,
provisionals, continuations and continuations-in-part thereof; (ii) inventions
(whether patentable or not), invention disclosures, improvements, trade secrets,
proprietary information, know how, technology, technical data and customer
lists, and all documentation relating to any of the foregoing; (iii)
copyrights, copyrights registrations and applications therefor, and all other
rights corresponding thereto throughout the world; (iv) industrial designs and
any registrations and applications therefor throughout the world, (v) trade
names, logos, URLs, websites, domain names, common law trademarks and service
marks, trademark and service mark registrations and applications therefor
throughout the world; (vi) databases and data collections and all rights
therein throughout the world; (vii) moral and economic rights of authors and
inventors, however denominated, throughout the world, or (viii) similar or
equivalent rights to any of the foregoing anywhere in the world (collectively,
“Intellectual Property”). No Intellectual Property is necessary to
effectuate the business or operations of either the Company or Leo Shield. SMA
owns the Intellectual Property rights for Abacus and Contracts Prop, and their
respective technologies as more particularly described in Schedule “A” hereto. 

           Section
6.6 Tax Matters. 

           (a) Each of
the Company, SMA and Leo Shield has filed or caused to be filed on a timely
basis all Tax Returns that are or were required to be filed by it, pursuant to
the Laws or administrative requirements of each Governmental Body with taxing
power over it or its assets. As of the time of filing, all such Tax Returns
correctly reflected the facts regarding the income, business, assets,
operations, activities, status, and any other information required to be shown
thereon. An extension of time within which to file any such Tax Return that has
not been filed has not been requested or granted. There is no audit, Action,
Claim or any investigation or inquiry, whether formal or informal, public or
private, now pending or threatened against or with respect to the Company, SMA
or Leo Shield in respect of any Tax.   

           (b) With
respect to all amounts in respect of Taxes imposed on the Company, SMA or Leo
Shield or for which any of them are or could be reasonably liable, whether to
Governmental Authorities (as, for example, under Law) or to other Persons (as,
for example, under tax allocation agreements), with respect to all taxable
periods or portions of periods since its inception through the Closing, (i) all
applicable tax laws and agreements have been complied with in all material
respects, (ii) all such amounts required to be paid by the Company, SMA and Leo
Shield to Governmental Authorities or others on or before the date hereof have
been paid, and (iii) reserves have been established for the payment of all
Taxes not yet due and payable, which reserves are reflected in the Financial
Statements (described below) and are adequate.

21

            (c) As of the date hereof, neither the Company, SMA nor Leo
Shield has requested, executed or filed with any Governmental Authority any
agreement or other document extending or having the effect of extending the
period for assessment or collection of any Taxes for which the Company, SMA or
Leo Shield could be liable and which still is in effect.  There exists no tax
assessment, proposed or otherwise, against the Company, SMA or Leo Shield nor
any Encumbrance for Taxes against any assets or property of the Company, SMA or
Leo Shield. 

           (d) All Taxes that the Company, SMA and Leo Shield is or was
required by Law to withhold or collect have been duly withheld or collected
and, to the extent required, have been paid to the proper Governmental
Authorities or other Person. 

           (e) Neither
the Company, SMA, nor Leo Shield is a party to, bound by or subject to any
obligation under any tax sharing, tax indemnity, tax allocation or similar
agreement. 

           (f) There is
no Claim, audit, Action, proceeding or investigation with respect to Taxes due
or claimed to be due from the Company, SMA or LeoShield or of any Tax Return filed or
required to be filed by the Company, SMA orLeoShieldpending or threatened against or with
respect to the Company, SMA or LeoShield. 

           Section 6.7 Financial
Statements. 

           (a) Attached
to the DD Questionnaire are the financial statements of the Company and Leo
Shield as of and for the
years ended December 31, 2012, December 31, 2011 and December 31, 2010 and
audit reports thereon and the financial statements of SMA as of and for the
years ended June 30, 2013, and June 30, 2012 and audit reports thereon
(collectively, the "Financial Statements") which, (i) were
prepared in all material respects in accordance with the books and records of
the Company, SMA and Leo Shield, (ii) present fairly the financial condition of the Company,
SMA and Leo Shield at the dates thereof and the results of its operations and
cash flows for the periods then ended, (iii) are true and accurate in all
material respects and (iv) were prepared in conformity with GAAP, consistently
applied. 

           (b) Neither
the Company, nor SMA nor LeoShield
has any liabilities or obligations (whether absolute, accrued, contingent or
otherwise) that were not fully reflected or reserved against in the balance
sheet of the Company as of December 31, 2012 (the "Recent Balance Sheet")
which is attached to the DD Questionnaire. The reserves reflected in the Recent
Balance Sheet are adequate, appropriate and reasonable and the reserves
reflected in the Recent Balance Sheet are in accordance with GAAP consistently
applied. 

22

            Section 6.8 Properties and Assets. The DD
Questionnaire lists all properties and assets of the Company, SMA and Leo
Shield, indicating which properties and assets are owned and which ones are
subject to lease agreements.  The Company, SMA and Leo Sheild have good and
marketable title to all of their properties and assets, real and personal, free
and clear of all Encumbrances.  All equipment used by the Company, SMA and Leo
Shields is in good operating condition and repair and is adequate for the uses
to which they are being put. 

           Section 6.9 Compliance with Law. The Company,
SMA and Leo Shield and each of the respective officers, managers, directors,
employees and agents of the Company, SMA and Leo Shield have complied in all
respects with all Laws applicable to it and its operations. Neither the
Company, SMA, Leo Shield nor any of its respective officers, managers,
directors, Affiliates, employees, or agents has received any notice from any
Governmental Authority that it has been or is being conducted in violation of
any applicable Law or that an investigation or inquiry into any noncompliance
with any applicable Law is ongoing, pending or threatened.  

           Section
6.10 Litigation. There is no Action pending or threatened against the
Seller, the Company, SMA or Leo Shield or its respective assets or business,
and there is no reasonable basis for any such Action, other than as disclosed
in the DD Questionnaire. There are no judgments, decrees, agreements, memoranda
of understanding or orders of any Governmental Authority outstanding against
the Company, SMA, Leo Shield or the Seller, other than as disclosed in the DD
Questionnaire. 

           Section
6.11 Contracts. The DD Questionnaire contains a complete list, as of the
date hereof, of all Contracts to which the Company, SMA and Leo Shield is, or
will be at Closing, a party or bound, or that otherwise relate to its business
or assets.  The Company has made available to the Purchaser or its
representatives correct and complete copies of all such Contracts with all
amendments thereof.  Each such Contract is, and will at Closing be, valid,
binding and enforceable against the Company, SMA or Leo Shield, as the case may
be, and the other parties thereto in accordance with its terms, and is, and
will at Closing be, in full force and effect. Neither the Company, SMA nor Leo
Shield is, and will at Closing be, in default under or in breach of or
otherwise delinquent in performance under any such Contract, and no event has
occurred, or will as of the Closing have occurred, that, with notice or lapse
of time, or both, would constitute such a default. Each of the other parties
thereto has performed in all respects all of the obligations required to be
performed by it under, and is not in default under, any such Contract and no
event has occurred that, with notice or lapse of time, or both, would
constitute such a default. There are no disputes pending or threatened in
writing with respect to any such Contracts. Neither the Company, SMA, Leo
Shield nor any other party to any such Contract has exercised any option
granted to it to terminate or shorten or extend the term of such Contract, and
neither the Company, SMA nor Leo Shield has given notice or received notice to
such effect.  All of such Contracts will continue to be valid, binding,
enforceable and in full force and effect on substantially identical terms
following the consummation of the transactions contemplated hereby. 

           Section
6.12 Labor and Employment Matters. 

23

            (a) There are
no collective bargaining agreements, union contracts or similar agreements or
arrangements in effect that cover any Employee or Former Employee (each, a
"Collective Bargaining Agreement"). With respect to any
Employee, as at the date of this Agreement, (i) there is no labor strike,
dispute, slowdown, lockout or stoppage pending or threatened against the
Company, SMA or Leo Shield or with respect to any Employees, and neither the
Company, SMA nor Leo Shield has experienced any labor strike, dispute,
slowdown, lockout or stoppage; and (ii) there is no grievance or arbitration
arising out of any Collective Bargaining Agreement or other grievance
procedure.  

           (b) Each of
the Company, SMA and Leo Shield is in compliance in all respects with all Laws,
regulations and orders relating to the employment of labor, including all such
Laws, regulations and orders relating to wages, hours, and any similar state or
local "mass layoff" or "plant closing" Law, collective
bargaining, discrimination, civil rights, safety and health, workers'
compensation and the collection and payment of withholding and/or social
security taxes and any similar tax.  

           Section 6.13 Permits; Compliance. The Company,
SMA and Leo Shield are in possession of all franchises, grants, authorizations,
licenses, permits, easements, variances, exemptions, consents, certificates,
approvals and orders necessary to own, lease and operate its properties and
assets and to carry on its business as it is now being conducted and as it will
be conducted through to the Closing (collectively, the “Permits”). All
such Permits are listed in the DD Questionnaire. There is no Action pending or
threatened regarding any of the Permits, and each such Permit is in full force
and effect.  Neither the Company, SMA nor Leo Shield is in conflict with, or in
default (or would be in default with the giving of notice, the passage of time,
or both) with, or in violation of, any of the Permits.  

           Section 6.14 Environmental Matters.
There are no past or present violations of Environmental Laws (as defined
below) by the Company, SMA or Leo Shield, releases of any material into the
environment by the Company, SMA or Leo Shield, actions, activities,
circumstances, conditions, events, incidents, or contractual obligations of the
Company, SMA or Leo Shield which may give rise to any liability of the Company,
SMA or Leo Shield,  and neither the Company, SMA nor Leo Shield has received
any notice with respect to any of the foregoing, nor is any action pending or
threatened in connection with any of the foregoing.  The term “Environmental
Laws” means all laws relating to pollution or protection of human health or
the environment (including, without limitation, ambient air, surface water,
groundwater, land surface or subsurface strata), including, without limitation,
laws relating to emissions, discharges, releases or threatened releases of
chemicals, pollutants contaminants, or toxic or hazardous substances or wastes
(collectively, “Hazardous Materials”) into the environment, or otherwise
relating to the manufacture, processing, distribution, use, treatment, storage,
disposal, transport or handling of Hazardous Materials, as well as all
authorizations, codes, decrees, demands or demand letters, injunctions,
judgments, licenses, notices or notice letters, orders, permits, plans or
regulations issued, entered, promulgated or approved thereunder.  Other than
those that are or were stored, used or disposed of in compliance with
applicable Law, no Hazardous Materials are contained by the Company, SMA or Leo
Shield on or about any real property currently owned, leased or used by the
Company, SMA or Leo Shield, and no Hazardous Materials were released by the
Company, SMA or Leo Shield on or about any real property previously owned,
leased or used by the Company, SMA or Leo Shield. There are no underground
storage tanks on or under any real property owned, leased or used by the
Company, SMA or Leo Shield. 

24

            Section 6.15 Affiliated Transactions.  Other
than as set forth in the DD Questionnaire, no Affiliate or other family member
has directly or indirectly (i) borrowed or been advanced funds from or loaned
funds to the Company, SMA or Leo Shield, (ii) is a party to a Contract with the
Company, SMA or Leo Shield or (iii) engaged in any transaction with the
Company, SMA or Leo Shield. 

           Section
6.16 Ordinary Course. Since the date of the Recent Balance Sheet, the
Company’s business has been conducted only in the ordinary and usual course of
business. Without limiting the generality of the foregoing, the Company has not
since the Recent Balance Sheet, (i) suffered any adverse change in its
financial condition, the business or operations or in the Company, SMA or Leo
Shield; or (ii) sold, transferred, or otherwise disposed of any portion of its
properties or assets. 

           Section
6.17 Debts and Guaranties. Since the date of the Recent Balance Sheet,
neither the Company, SMA nor Leo Shield had debts, liabilities, obligations,
direct, indirect, absolute or contingent, whether accrued, vested or otherwise,
whether known or unknown, other than as set forth in the DD Questionnaire. In
addition, neither the Company, SMA nor Leo Shield is directly or indirectly,
(a) liable, by guarantee or otherwise, upon or with respect to, or (b)
obligated to provide funds with respect to, or to guarantee or assume, any
Indebtedness or other obligation of any Person. 

           Section
6.18 No Brokers or Finders. Neither the Seller, the Company, SMA nor Leo
Shield has employed any broker or finder or incurred any Liability for any
brokerage or finder's fee or commissions or similar payment in connection with
the transactions contemplated herein, and no Person has or will have any right,
interest or valid claim against or upon the Seller, the Company, SMA or Leo
Shield for any such fee or commission. 

           Section
6.19 Full Disclosure. No representation or warranty of the Seller, the
Company, SMA nor Leo Shield omits to state a fact necessary to make the
statements herein, in light of the circumstances in which they were made, not
misleading.  There is no fact known to the Seller, the Company, SMA or Leo
Shield that Materially Adversely affects or, as far as can be reasonably
foreseen, materially threatens, the assets, business, prospects, financial
condition or results of operations of the Company, SMA or Leo Shield that has
not been set forth in this Agreement. 

           Section 6.20 No Material Adverse Effect.  As of the date of this
Agreement, no Material Adverse Effect on the Company has occurred and there has
been no event, occurrence or development that has had, or would reasonably be
expected to have, a Material Adverse Effect on the ability of the Company to
timely consummate the transactions contemplated hereby. 

ARTICLE VII

ADDITIONAL AGREEMENTS AND COVENANTS 

           Section
7.1 Access and Information. Prior to the Closing, the Purchaser, on one
hand, and the Seller and the Company, on the other hand, shall permit
representatives of the other to have reasonable access during normal business
hours and upon reasonable notice to all premises, properties, personnel, books,
records, Intellectual Property, technology, technical support, Contracts,
commitments, reports of examination and documents of or pertaining to, as may
be necessary to permit the other to, at its sole expense, make, or cause to be
made, such investigations thereof as the other reasonably deems necessary or
advisable in connection with the consummation of the transactions contemplated
by this Agreement, and the Purchaser and the Seller shall reasonably cooperate
with any such investigations.  No investigation by a party or its
representatives or advisors prior to or after the date of this Agreement
(including any information obtained by a party pursuant to this Section 7.1)
shall diminish, obviate or cure any breach of any representation, warranty,
covenant or agreement contained in this Agreement nor shall the conduct or
completion of any such investigation be a condition to any of such party's
obligations under this Agreement. 

25

            Section 7.2 Confidentiality. Each of the
parties shall use reasonable efforts to cause their respective Affiliates,
officers, directors, employees, auditors, attorneys, consultants, advisors and
agents to treat as confidential and hold in strict confidence, unless required
to be disclosed by judicial or administrative process or, in the opinion of its
counsel, by other requirements of Law, and after prior written notice to the
other parties, all confidential information of the Purchaser, the Seller, Leo
Shield, the Company or SMA, as the case may be, that is made available in
connection with this Agreement, and will not release or disclose such
confidential information to any other Person, except to their respective
auditors, attorneys, financial advisors and other consultants, agents, and
advisors in connection with this Agreement. If the Closing does not occur, (a)
such confidence shall be maintained by the Parties, and each Party shall use
reasonable efforts to cause its officers, directors, Affiliates and such other
Persons to maintain such confidence, except to the extent such information
comes into the public domain (other than as a result of an action by such
Party, its officers, directors or such other Persons in contravention of this
Agreement), and (b) upon the request of any Party, the other Party shall
promptly return to the requesting Party any written materials remaining in its
possession, which materials it has received from the requesting Party or its
representatives, together with any analyses or other written materials based
upon the materials provided. 

           Section
7.3 Conduct of Business. From and after the date hereof until the
Closing, except as otherwise expressly contemplated by this Agreement, or as
consented to in writing by the Purchaser, each of the Company, SMA and Leo
Shield shall: 

           (a) use reasonable commercial efforts to preserve its
business, operations, physical facilities, working conditions and its business
relationships with customers, suppliers, licensors, licensees, contractors and
other persons with whom it has significant business relations;  

           (b) not take any action that would cause a breach of the
representations and warranties contained herein; 

           (c) not amend
its Articles of Incorporation or Bylaws (or other similar governing
instrument); 

           (d) not split,
combine or reclassify any of its shares, declare, set aside or pay any dividend
or other distribution (whether in cash, stock or property or any combination
thereof) in respect of its equity interests, make any other actual or
constructive distribution in respect of its interests or otherwise make any
payments to holders in their capacity as such, or redeem or otherwise acquire
any of its securities or any other securities; 

26

            (e) not adopt a plan of complete or partial liquidation,
dissolution, merger, consolidation, restructuring, recapitalization or other
reorganization or otherwise permit its corporate existence to be suspended,
lapsed or revoked;  

           (f) not create or form any Subsidiary; 

           (g) other than in the ordinary course of its business, (1)
incur or assume any Liability in excess of US$1,000; (2) assume, guarantee,
endorse or otherwise become liable or responsible (whether directly,
contingently or otherwise) for the obligations of any other Person; (3) make
any loans, advances or capital contributions to or investments in any other
Person; nor (4) pledge or otherwise Encumber its shares;  

           (h) not
acquire, sell, lease, license, transfer or otherwise dispose of any assets in
any single transaction or series of related transactions having a fair market
value in excess of US$1,000 in the aggregate or that are otherwise material to
it other than in the ordinary course of business; 

           (i) not, (1) acquire (by merger, consolidation or acquisition
of stock or assets) any corporation, partnership or other entity or division
thereof or any equity interest therein; (2) amend, modify, waive or terminate
any right under any material contract in any material way; nor (3) authorize
any new capital expenditure or expenditures;  

           (j) not enter into any Contract other than in the ordinary
course of its business;  

           (k) issue, promise or contract to issue any securities or
instruments convertible into securities of such Person; or 

           (l) other than
in the ordinary course of its business, not make any change with respect to the
compensation or benefits of any officer, director or Employee or Former
Employee.  

           Section 7.4 Efforts to Consummate. Subject to
the terms and conditions of this Agreement, each party hereto shall use all
reasonable commercial efforts to take, or to cause to be taken, all actions and
to do, or to cause to be done, all things necessary, proper or advisable as
promptly as practicable to satisfy the conditions set forth in Article VIII,
including, without limitation, obtaining any shareholder and director consents
and completing all filings required by the SEC and to consummate the
transactions contemplated hereby. 

           Section
7.5 No-Shop. From the date hereof until the earlier of the Closing Date
or the termination of this Agreement in accordance with the terms hereof,
neither the Company, the Seller nor its or his respective officers, managers,
directors, employees, agents, representatives and Affiliates, shall, directly
or indirectly, make, solicit, initiate or encourage submission of proposals or
offers from any Persons relating to an Acquisition Proposal (as defined
below).  As used herein, “Acquisition Proposal” means any proposal or
offer involving a liquidation, dissolution, re-capitalization, merger,
consolidation or acquisition or purchase of all or substantially all of the
assets of, or equity interest in, the Company, SMA or Leo Shield or any other
similar transaction or business combination involving the same.  The Seller,
the Company, SMA and Leo Shield shall immediately cease and cause to be
terminated all discussions or negotiations with third parties with respect to
any Acquisition Proposal, if any, existing on the date hereof. 

27

            Section 7.6 Notification by the Parties. Each
party hereto shall use its reasonable commercial efforts to as promptly as
practicable inform the other parties hereto in writing if, prior to the
consummation of the Closing, it obtains knowledge that any of the
representations and warranties made by such party in this Agreement ceases to
be accurate and complete in any material respect (except for any representation
and warranty that is qualified hereunder as to materiality or Material Adverse
Effect, as to which such notification shall be given if the notifying party
obtains knowledge that such representation and warranty ceases to be accurate
and complete in any respect).  Each party hereto shall also use its reasonable commercial
efforts to promptly inform the other parties hereto in writing if, prior to the
consummation of the Closing, it becomes aware of any fact or condition that
constitutes, in its reasonable judgment, a breach of any covenant of such party
as of the date of this Agreement or that would reasonably be expected to cause
any of its covenants to be breached as of the Closing Date.  Any such
notification shall not be deemed to have cured any breach of any
representation, warranty, covenant or agreement made in this Agreement for any
purposes of this Agreement.  

           Section
7.7 Cooperation with Respect to Financial Reporting. Prior to the
Closing, the Seller and the Company shall reasonably cooperate with the
Purchaser in connection with the Purchaser’s preparation of its financial
statements and other information as required for the Purchaser’s filings in
connection with the transactions contemplated by this Agreement under the
Exchange Act. 

           Section
7.8 Board of Directors. Effective upon the Closing, the Board of
Directors of the Purchaser and the Company shall consist of two existing
directors of the Purchaser and one nominee of the Seller.    

           Section
7.9 Name Change. Prior to the Closing, the Purchaser shall have prepared
and mailed to its shareholders an Information Statement under the Exchange Act
to change the Purchaser’s corporate name to Blox Inc. 

           Section
7.10 Loans to the Purchaser. In the event that the Seller or the Company
make any loan advances to the Purchaser prior to the Closing, the parties agree
that on Closing such loan advances will be applied to the purchase price of the
Financing. 

           Section
7.11 Net Smelter Royalty. Notwithstanding any other provision in this
Agreement and as an exception to any and all warranties, statements or
representations given by the Seller or the Company to the contrary, the
Purchaser acknowledges and confirms acceptance of the right for the Seller, to
receive and to continue to receive a 3% net smelter royalty, as more
particularly described in Schedule “B” hereto, from Leo Shield, being a
Subsidiary of the Company, or any assignee or transferee or successor in title
of any or all of the concessions held by Leo Shield as at the date of this
Agreement, which concessions, for greater certainty, will include the Prospecting
Licenses. 

28

            Notwithstanding any other provision in this Agreement
and as an exception to any and all warranties, statements or representations
given by the Seller or the Company to the contrary, the Purchaser acknowledges
and confirms acceptance of the right for the Seller, to receive and to continue
to receive a royalty of 3%, as more particularly described in Schedule “C”
hereto, of gross sales of non-smeltered minerals from Leo Shield, being a
Subsidiary of the Company, or any assignee or transferee or successor in title
of any or all of the concessions held by Leo Shield as at the date of this
Agreement, which concessions, for greater certainty, will include the
Prospecting Licenses. 

           It is
further understood that if a future project is introduced by the Seller to the
Purchaser, a 3% royalty will be payable by the Purchaser to the Seller. 

           Section
7.12 Software Royalty. Notwithstanding any other provision in this
Agreement and as an exception to any and all warranties, statements or
representations given by the Seller or the Company to the contrary, the
Purchaser acknowledges and confirms acceptance of the right for the Seller, to
receive and to continue to receive a 3% royalty for all and any sales of
software, including ‘Abacus’ or any software derived therefrom, by the
Purchaser or its Affiliates, such right of the Seller shall apply to and be
binding on the Purchaser’s Affiliates and any owner, or assignee or transferee,
of the intellectual property in such software, as if this was an obligation on
them. 

           Section
7.13  Access to Software. Notwithstanding any other provision in this
Agreement and as an exception to any and all warranties, statements or
representations given by the Seller or the Company to the contrary, the
Purchaser acknowledges and confirms it shall grant to the Seller and its
Affiliates, a royalty free and irrevocable license to the latest edition of all
and any software which it or any of its Affiliates own, including ‘Abacus’,
“Contracts Pro” or any software derived therefrom. 

           Section 7.14 Financing.
Concurrent with the Closing and to be completed on or before the Closing Date,
the Seller will complete a non-brokered private placement financing (the “Financing”)
in the common stock of the Purchaser for minimum aggregate gross proceeds of
one million United States Dollars ($1,000,000) and up to a maximum of one
million five hundred thousand United States Dollars ($1,500,000). The Financing
will consist of a minimum of 20,000,000 units, and up to a maximum of
30,000,000 units, at a deemed price of $0.05 per Unit. Each unit will be
comprised of one share of common stock of the Purchaser and one common share
purchase warrant, with each whole warrant entitling the holder thereof to
purchase one additional common share of the Purchaser at a price of $0.05 per
share for a period of five (5) years from the closing date of the Financing.
For greater certainty, the Seller’s obligation to complete the Financing is in
addition to any financing obligation contemplated in any agreement entered into
or that may be entered into between the Purchaser and International Eco
Endeavors Corp. (“IEE”) regarding the acquisition of IEE. 

29

 ARTICLE
VIII

CONDITIONS TO CLOSING 

           Section
8.1 Conditions to the Sellers’ Obligations to Close. All obligations of
the Seller to consummate the transactions contemplated hereunder are subject to
the fulfillment or waiver prior to or at the Closing of each of the following
conditions: 

           (a) Subject to Section 7.6, all representations and
warranties of the Purchaser contained in this Agreement and the Transaction
Documents shall be true and correct in all respects when made and shall be
deemed to have been made again at and as of the Closing and shall then be true
and correct in all respects (except that representations and warranties made as
of a specified date, shall be true and correct only as of such specified date),
and the Purchaser shall have delivered to the Company and the Seller a certificate,
signed by it, to such effect in form and substance satisfactory to the Company
and the Seller; 

           (b) The Purchaser shall have performed in all material
respects each obligation and agreement to be performed by it and shall have
complied in all material respects with each covenant required by this Agreement
to be performed or complied with by it at or prior to the Closing, and the
Purchaser shall have delivered to the Company and the Seller a certificate,
signed by it, to such effect in form and substance satisfactory to the Company
and the Seller; 

           (c) Prior to
or at the Closing, the Purchaser shall have delivered to the Seller the items
to be delivered pursuant to Sections 2.4 and 2.6; and 

           (d) The Purchaser, with the assistance of the Company, shall
have prepared the Current Report on Form 8-K required as a result of the
consummation of the transactions contemplated hereby. 

           Section 8.2 Conditions to the Purchaser’s Obligations to
Close. All obligations of the Purchaser to consummate the transactions
contemplated hereunder are subject to the fulfillment or waiver prior to or at
the Closing of each of the following conditions: 

           (a) Subject to Section 7.6, all representations and
warranties of the Company and the Seller contained in this Agreement and the
Transaction Documents shall be true and correct in all respects when made and
shall be deemed to have been made again at and as of the Closing and shall then
be true and correct in all respects (except that representations and warranties
made as of a specified date, shall be true and correct only as of such
specified date), and the Company and the Seller shall have delivered to the
Purchaser a certificate, signed by them, to such effect in form and substance
satisfactory to the Purchaser; 

           (b) The Company
and the Seller shall have performed in all respects each obligation and
agreement to be performed by it or them, and shall have complied in all
respects with each covenant required by this Agreement to be performed or
complied with by it or them at or prior to the Closing, and the Company and the
Seller shall have delivered to the Purchaser a certificate, signed by them, to
such effect in form and substance satisfactory to the Purchaser; 

30

            (c) Prior
to the Closing, the Purchaser shall be satisfied, in its sole and absolute
discretion, with its due diligence examination of the Company, SMA and Leo
Shield; 

           (d) Prior to or at the Closing, the Seller shall have
delivered to the Purchaser the items to be delivered pursuant to Section 2.5
and 2.6, including without limitation, the legal opinion and Financial
Statements; 

           (e) The Company shall have provided to the Purchaser
consolidated financial statements prepared in accordance with U.S. GAAP and
audit reports prepared pursuant to U.S. auditing standards and other
information required under the rules of the SEC for purposes of inclusion in
the Purchaser’s filing of a Current Report on Form 8-K disclosing the
consummation of the Transaction, and the Purchaser shall have substantially
completed a Form 8-K such that the filing of the Form 8-K can reasonably be
made within four business days from the Closing Date; and 

           (f) The Financing being fully funded as evidenced by signed
subscription, with closing of the Financing being subject to only to the
concurrent Closing of the acquisition of the Shares. 

           (g) No
Material Adverse Change will have occurred with respect to the Company, Leo
Shield or SMA. 

ARTICLE IX

TERMINATION 

           Section
9.1 Termination. This Agreement may be terminated at any time prior to
the consummation of the Closing under the following circumstances:  

           (a) by
mutual written consent of the Purchaser, the Seller and the Company; 

           (b) by the Purchaser, if the Company or the Seller has
breached this Agreement in any respect and such breach is not cured within ten
(10) days after written notice from the Purchaser to the Company and the
Seller;  

           (c) by the Company or the Seller, if the Purchaser has
breached this Agreement in any respect and such breach is not cured within ten
(10) days after written notice from the Company or the Seller to the
Purchaser;  

           (d) by any party, if there shall be in effect a final,
non-appealable order of a court or government administrative agency of
competent jurisdiction permanently prohibiting the consummation of the transactions
contemplated hereby; or  

           (e) by the
Purchaser if any of the conditions to closing, including for greater certainty,
the condition contained in Section 8.2(c), has not been remedied to the
satisfaction of the Purchaser, acting reasonably, within 10 business days of
the Seller receiving notice from the Purchaser of the Seller’s failure to
satisfy a condition of closing contained herein.  

31

            Section 9.2 Termination Procedure. Written
notice of any termination (“Termination Notice”) pursuant to this Article
IX shall be given by the party electing termination of this Agreement (“Terminating
Party”) to the other parties (collectively, the “Terminated Party”),
and such notice shall state the reason for termination.  

           Section
9.3 Effect of Termination. Upon termination of this Agreement prior to
the consummation of the Closing and in accordance with the terms hereof, this
Agreement shall become void and of no effect, and none of the parties shall
have any liability to the others.  

           Section 9.4 Expenses. The parties shall each bear their own
respective expenses incurred in connection with this Agreement and the
contemplated Transaction. 

ARTICLE X

INDEMNIFICATION; SURVIVAL 

           Section
10.1 Indemnification by the Purchaser. The Purchaser shall indemnify and
hold harmless the Company, the Seller and its and his Affiliates, officers,
directors, stockholders, employees and agents and the successors and assigns of
all of them (the “Company Indemnified Parties”), and shall reimburse the
Company Indemnified Parties for, any loss, liability, claim, damage, expense
(including, but not limited to, costs of investigation and defense and
attorneys’ fees) (collectively, “Damages”), arising from or in
connection with, (a) any inaccuracy or breach of any of the representations and
warranties of the Purchaser in this Agreement or in any certificate or document
delivered by or on behalf of the Purchaser pursuant to this Agreement, or any
actions, omissions or statements of fact inconsistent with in any respect any
such representation or warranty, or (b) any failure by the Purchaser to perform
or comply with any agreement, covenant or obligation in this Agreement or in
any certificate or document delivered by or on behalf of the Purchaser pursuant
to this Agreement to be performed by or complied with by or on behalf of the
Purchaser. 

           Section
10.2 Indemnification by the Seller. The Seller shall indemnify and hold
harmless the Purchaser and its Affiliates, officers, directors, shareholders,
employees and agents and the successors and assigns of all of them (the “Purchaser
Indemnified Parties”), and shall reimburse the Purchaser Indemnified
Parties for, any Damages arising from or in connection with, (a) any inaccuracy
or breach of any of the representations and warranties of the Seller, the
Company, SMA or Leo Shield in this Agreement or in any certificate or document
delivered by or on their behalf pursuant to this Agreement, or any actions,
omissions or statements of fact inconsistent with in any respect any such
representation or warranty, or (b) any failure by the Seller, the Company, SMA
or Leo Shield to perform or comply with any agreement, covenant or obligation
in this Agreement or in any certificate or document delivered by or on their behalf
pursuant to this Agreement to be performed by or complied with by or on their
behalf.     

           Section 10.3 Survival; Limitations.
All representations, warranties, covenants and agreements of the parties
contained herein shall survive the Closing through the expiration of the
applicable statutes of limitations (as tolled by any waiver or extension
thereof).   

32

            Section 10.4 Limit
of Liability. Notwithstanding the extent of the Damages for which the
indemnities may apply under either Sections 10.1 or 10.2, as the case may be,
the aggregate limit of all Damages arising from or in connection with the
matters the subject of the indemnities provided under those Sections shall be
limited to three million United States dollars ($3,000,000). 

ARTICLE XI 

MISCELLANEOUS 

           Section
11.1 Notices. All notices or other communications required or permitted
hereunder shall be in writing.  Any notice, request, demand, claim or other
communication hereunder shall be deemed duly given (a) if by personal delivery,
when so delivered, (b) if mailed, three (3) Business Days after having been
sent by registered or certified mail, return receipt requested, postage prepaid
and addressed to the intended recipient as set forth below, or (c) if sent through an overnight delivery service in circumstances
to which such service guarantees next day delivery, the day following being so
sent (d) if sent by facsimile, one (1) business day after confirmation of
transmission, or (e) if sent by email, upon written or electronic confirmation
of receipt by the recipient of the email: 

	 	(1)	If
to the Purchaser:

	 	
NAVA
RESOURCES, INC. 

Suite
206 – 595 Howe Street

Vancouver, British Columbia, Canada

Attn: Jagtar Sandhu,
President

Email: jagsandhu@telus.net

	 	(2)	If
to the Seller or the Company:

	 	
WARATAH
INVESTMENTS LIMITED
P.O. Box
PMP, Airport

Accra, Ghana

Attention: Nicholas Taylor

Facsimile: +
61892961669

Email: ntmidcap@gmail.com

           Any party may change the address to which notices and
other communications hereunder are to be delivered by giving the other parties
notice in the manner herein set forth. 

           Section
11.2 Choice of Law. This Agreement shall be governed, construed and
enforced in accordance with the laws of the State of Nevada, without giving
effect to principles of conflicts of law. 

33

            Section 11.3 Jurisdiction.  The parties hereby
irrevocably consent to the in personam jurisdiction of the competent courts in
the State of Nevada, in connection with any action or proceeding arising out of
or relating to this Agreement or the transactions and the relationships
established thereunder.  The parties hereby agree that such courts shall be the
venue and exclusive and proper forum in which to adjudicate such matters and
that they will not contest or challenge the jurisdiction or venue of these
courts.  

           Section
11.4 Entire Agreement. This Agreement and such other agreements related
to this transaction executed simultaneously herewith set forth the entire
agreement and understanding of the parties in respect of the transactions contemplated
hereby and supersedes all prior agreements, arrangements and understandings of
the parties relating to the subject matter hereof. No representation, promise,
inducement, waiver of rights, agreement or statement of intention has been made
by any of the parties which is not expressly embodied in this Agreement, such
other agreements, notes or instruments related to this transaction executed
simultaneously herewith, or the written statements, certificates or other
documents delivered pursuant to this Agreement or in connection with the
transactions contemplated hereby.   

           Section
11.5 Assignment. Each party's rights and obligations under this
Agreement shall not be assigned or delegated, by operation of law or otherwise,
without the other party's prior consent, and any such assignment or attempted
assignment shall be void, of no force or effect, and shall constitute a
material default by such party.  

           Section
11.6 Amendments. This Agreement may be amended, modified, superseded or
cancelled, and any of the terms, covenants, representations, warranties or
conditions hereof may be waived, only by a written instrument executed by all
the parties. 

           Section
11.7 Waivers. The failure of any party at any time or times to require
performance of any provision hereof shall in no manner affect the right at a
later time to enforce the same.  No waiver by any party of any condition, or
the breach of any term, covenant, representation or warranty contained in this
Agreement, whether by conduct or otherwise, in any one or more instances shall
be deemed to be or construed as a further or continuing waiver of any such
condition or breach or a waiver of any other term, covenant, representation or
warranty of this Agreement. 

           Section
11.8 Counterparts. This Agreement may be executed simultaneously in two
or more counterparts and by facsimile or other electronic means, each of which
shall be deemed an original, but all of which together shall constitute one and
the same instrument. 

           Section
11.9 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 party.  Upon such
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 be consummated as originally contemplated to the fullest extent
possible.  

34

            Section 11.10 Interpretation.  The parties
agree that this Agreement shall be deemed to have been jointly and equally
drafted by them and that the provisions of this Agreement therefore shall not
be construed against a party or parties on the ground that such party or
parties drafted or was more responsible for the drafting of any such
provision(s).  The parties further agree that they have each carefully read the
terms and conditions of this Agreement, that they know and understand the
contents and effect of this Agreement and that the legal effect of this
Agreement has been fully explained to its satisfaction by counsel of its own
choosing. 

[Remainder of page intentionally left blank; Signature pages to follow]

35

            IN WITNESS WHEREOF, the parties have duly executed
this Share Purchase Agreement
as of the date first above written. 

	NAVA
RESOURCES, INC. 	QUIVIRA GOLD LTD. 
	 	 
	By:
_______________________________ 	By: ________________________________ 
	Name: Jag
Sandhu	Name: 
	 Title:  President	Title: 

WARATAH INVESTMENTS LIMITED 

By:
_______________________________

Name:  

Title:    

36

 SCHEDULE “A” 

DESCRIPTION OF ASSETS AND LIABILITIES
  OF SMA 

See attached document

 Strategic Marketing
(Australia) Pty Ltd 

T/As Able Computing Services 

Balance Sheet
As At 30 June 2013 

This statement should
be read in conjunction with the 

attached compilation report of Byfields CPA.

 Strategic Marketing
  (Australia) Pty Ltd 

  T/As Able Computing Services 

Balance Sheet
As At 30 June 2013 

This statement should be read in conjunction with the

  attached compilation
report of Byfields CPA.

 SCHEDULE
“B” 

NET SMELTER RETURNS TO THE SELLER 

For the purposes of this Agreement, the
term "Net Smelter Royalty" shall mean an agreed percentage of 3% of
the gold bullion produced by the smelting company from any and all of the
concessions held by Leo Shield at the date of this Agreement. Leo Shield shall
instruct the smelting company to deposit the agreed net percentage of bullion
into the bullion account of Waratah, This net smelter royalty shall be
unencumbered by any further deductions.

 SCHEDULE
“C” 

OTHER ROYALTIES TO THE SELLER 

In addition to royalties for the
production of gold as per Schedule “B”, the Seller shall receive a royalty of
3% of the gross sales of all non-gold mineral production from any and all of
the concessions held by Leo Shield at the date of this agreement. These
royalties shall be unencumbered by any further deductions. Payment of these
royalties shall be made to the Seller on the 10th day of the month following the month in which the sales were
made, regardless of whether the sales were on a cash, credit basis, terms
basis, lease basis, or any kind of deferred settlement basis, and regardless of
whether or not payment for the sales has been received by the Purchaser.

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