Document:

AGREEMENT AND PLAN OF MERGER AND REORGANIZATION

                

AGREEMENT AND PLAN OF MERGER AND REORGANIZATION

   This AGREEMENT AND PLAN OF MERGER AND REORGANIZATION is made and entered

into as of December 10, 2015, by and between BULLSBEARS.COM, INC. a Delaware

corporation ("Parent"), and MICHAEL JAMES ENTERPRISES, INC., a Nevada corporation (“Merger Company”). 

                                   RECITALS

   A. Upon the terms and subject to the conditions of this Agreement (as

defined in Section 1.2 below) and in accordance with the Nevada Revised Statutes ("Nevada Law") and the Delaware General Corporation Law (the "Delaware Law"), Parent and Merger Company intend to enter into a business combination transaction.

   B. The Board of Directors of Parent (i) has determined that the Merger (as

defined in Section 1.1) is consistent with and in furtherance of the long-term

business strategy of Parent and fair to, and in the best interests of,

Parent and its shareholders, (ii) has approved this Agreement, the Merger (as

defined in Section 1.1) and the other transactions contemplated by this

Agreement, (iii) has determined (subject to Section 5.4 hereof) to

recommend that the shareholders of Parent adopt and approve this Agreement

and approve the Merger, and (iv) has determined to recommend that the stockholders of Parent approve the issuance of shares of Parent Common Stock (as defined below) pursuant to the Merger (the "Share Issuance"). 

   C. The Board of Directors of Merger Company (i) has determined that the Merger is consistent with and in furtherance of the long-term business strategy of Merger Company and is fair to, and in the best interests of, Merger Company and its stockholders, and (ii) has approved this Agreement, the Merger and the other transactions contemplated by this Agreement. 

   D. The parties intend, by executing this Agreement, to adopt a plan of

reorganization within the meaning of Section 368 of the Internal Revenue Code

of 1986, as amended (the "Code").

   E. It is also intended by the parties hereto that the Merger shall qualify

for pooling of interests accounting treatment.

   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 are hereby acknowledged,

the parties agree as follows:

                                      

                                   ARTICLE I

                                  THE MERGER

   1.1 The Merger. At the Effective Time (as defined in Section 1.2) and

subject to and upon the terms and conditions of this Agreement and the

applicable provisions of Nevada Law and Delaware Law, Merger Company shall be

merged with and into Parent (the "Merger"), the separate corporate existence

of Merger Company shall cease and Parent shall continue as the surviving

corporation. Parent, as the surviving corporation after the Merger, is

hereinafter sometimes referred to as the "Surviving Corporation."

   1.2 Effective Time; Closing. Subject to the provisions of this Agreement,

the parties hereto shall cause the Merger to be consummated by filing a

certificate of merger with the Secretary of State of the State of Delaware in

accordance with the relevant provisions of Delaware Law (the "Certificate of

Merger") and a certificate of merger with the Secretary of State of the State

of Nevada in accordance with the relevant provisions of Nevada Law (the

"Nevada Certificate of Merger") (the time of the later of such filings (or

such later time as may be agreed in writing by Parent and Parent and

specified in the Certificate of Merger) being the "Effective Time") as soon as

practicable on or after the Closing Date (as herein defined). Unless the

context otherwise requires, the term "Agreement" as used herein refers

collectively to this Agreement and Plan of Merger and Reorganization, the

Certificate of Merger and the Nevada Certificate of Merger. The closing of

the Merger (the "Closing") shall take place at the offices of the Parent 

at a time and date to be specified by the parties, which shall be

no later than the second business day after the satisfaction or waiver of the

conditions set forth in Article VI, or at such other time, date and location

as the parties hereto agree in writing (the "Closing Date").

   1.3 Effect of the Merger. At the Effective Time, the effect of the Merger

shall be as provided in this Agreement and the applicable provisions of

Nevada Law and Delaware Law. Without limiting the generality of the

foregoing, and subject thereto, at the Effective Time all the property,

rights, privileges, powers and franchises of Parent and Merger Company shall vest in the Surviving Corporation, and all debts, liabilities and duties of Parent and Merger Company shall become the debts, liabilities and duties of the Surviving Corporation.

   1.4 Articles of Incorporation; Bylaws.

   (a) At the Effective Time, the Articles of Incorporation of Parent, as in

effect immediately prior to the Effective Time, shall be the Articles of

Incorporation of the Surviving Corporation until thereafter amended as

provided by law and such Articles of Incorporation of the Surviving

Corporation.

   (b) The Bylaws of Parent, as in effect immediately prior to the Effective

Time, shall be, at the Effective Time, the Bylaws of the Surviving Corporation

until thereafter amended.

   1.5 Directors and Officers. The initial directors of the Surviving

Corporation shall be the directors of Merger Company immediately prior to the

Effective Time, until their respective successors are duly elected or

appointed and qualified. The initial officers of the Surviving Corporation

shall be the officers of Merger Company immediately prior to the Effective Time,

until their respective successors are duly appointed.

   1.6 Effect on Capital Stock. Subject to the terms and conditions of this

Agreement, at the Effective Time, by virtue of the Merger and without any

action on the part of Merger Parent, Parent or the holders of any of the

following securities, the following shall occur:

     (a) Conversion of Parent Common Stock. Each share of Common Stock, no

par value per share, of Merger Company (the "Merger Company Common Stock") issued and outstanding immediately prior to the Effective Time, other than any shares of Merger Company Common Stock to be canceled pursuant to Section 1.6(b), will be canceled and extinguished and automatically converted (subject to Sections 1.6(e) and (f)) into the right to receive one (1)share of Common Stock, $0.001 par value per share, of Parent (the "Parent Common Stock") (the "Exchange

Ratio") upon surrender of the certificate representing such share of Merger Company Common Stock in the manner provided in Section 1.7 (or in the case of a lost, stolen or destroyed certificate, upon delivery of an affidavit (and bond, if required) in the manner provided in Section 1.9).  

   (b) Adjustments to Exchange Ratio. The Exchange Ratio shall be adjusted to

reflect appropriately the effect of any stock split, reverse stock split,

stock dividend (including any dividend or distribution of securities

convertible into Parent Common Stock), extraordinary cash dividends, reorganization, recapitalization, reclassification, combination, exchange of shares or other like change with respect to Parent Common Stock or Stock occurring on or after the date hereof and

prior to the Effective Time.

   1.7 Surrender of Certificates.

   (a) Exchange Agent. The Exchange Agent shall be the Transfer Agent of the Parent (the "Exchange Agent") in the Merger.

   (b) Parent to Provide Common Stock. Promptly after the Effective Time,

Parent shall make available to the Exchange Agent for exchange in accordance

with this Article I, the shares of Parent Common Stock issuable pursuant to

Section 1.6 in exchange for outstanding shares of Merger Company Common Stock

   (c) Exchange Procedures. As soon as practicable after the Effective Time,

Parent shall cause the Exchange Agent to mail to each holder of record (as of

the Effective Time) of a certificate or certificates (the "Certificates"),

which immediately prior to the Effective Time represented outstanding shares

of Merger Company Common Stock whose shares were converted into the right to receive shares of Parent Common Stock pursuant to Section 1.6, (i) a letter of transmittal in customary form (which shall specify that delivery shall be effected, and risk of loss and title to the Certificates shall pass, only upon delivery of the Certificates to the Exchange Agent and shall contain such other provisions as Parent may reasonably specify) and (ii) instructions for use in effecting the surrender of the Certificates in exchange for certificates representing shares of Parent Common Stock.  Upon surrender of Certificates for cancellation to the Exchange Agent or to such other agent or agents as may be appointed by Parent, together with such letter of transmittal, duly completed and validly executed in accordance with the instructions thereto, the holders of such Certificates shall be entitled to receive in exchange therefor certificates representing the number of whole shares of Parent Common Stock into which their shares of Merger Company Common Stock were converted at the Effective Time, 

and the Certificates so surrendered shall forthwith be canceled. 

   (d) Transfers of Ownership. If certificates representing shares of Parent

Common Stock are to be issued in a name other than that in which the

Certificates surrendered in exchange therefor are registered, it will be a

condition of the issuance thereof that the Certificates so surrendered will be

properly endorsed and otherwise in proper form for transfer and that the

persons requesting such exchange will have paid to Parent or any agent

designated by it any transfer or other taxes required by reason of the

issuance of certificates representing shares of Parent Common Stock in any

name other than that of the registered holder of the Certificates surrendered,

or established to the satisfaction of Parent or any agent designated by it

that such tax has been paid or is not payable.

   (e) No Liability.  Notwithstanding anything to the contrary in this Section

1.7, neither the Exchange Agent, Parent, the Surviving Corporation nor any

party hereto shall be liable to a holder of shares of Parent Common Stock or

Parent Common Stock for any amount properly paid to a public official

pursuant to any applicable abandoned property, escheat or similar law.

 

   1.8 No Further Ownership Rights in Parent Common Stock. All shares of

Parent Common Stock issued in accordance with the terms hereof shall

be deemed to have been issued in full satisfaction of all rights pertaining to

such shares of Merger Company Common Stock, and there shall be no further

registration of transfers on the records of the Surviving Corporation of

shares of Merger Company Common Stock which were outstanding immediately prior to the Effective Time. If, after the Effective Time, Certificates are presented to the Surviving Corporation for any reason, they shall be canceled and exchanged as provided in this Article I.

   1.9 Lost, Stolen or Destroyed Certificates. In the event that any

Certificates shall have been lost, stolen or destroyed, the Exchange Agent

shall issue in exchange for such lost, stolen or destroyed Certificates, upon

the making of an affidavit of that fact by the holder thereof, certificates

representing the shares of Parent Common Stock into which the shares of

Merger Company Common Stock represented by such Certificates were converted pursuant to Section 1.6.  

   1.10 Tax and Accounting Consequences.

   (a) It is intended by the parties hereto that the Merger shall constitute a

reorganization within the meaning of Section 368 of the Code. The parties

hereto adopt this Agreement as a "plan of reorganization" within the meaning

of Sections 1.368-2(g) and 1.368-3(a) of the United States Income Tax

Regulations.

   (b) It is intended by the parties hereto that the Merger shall be treated

as a pooling of interests for accounting purposes.

   1.11 Taking of Necessary Action; Further Action. If, at any time after the

Effective Time, any further action is necessary or desirable to carry out the

purposes of this Agreement and to vest the Surviving Corporation with full

right, title and possession to all assets, property, rights, privileges,

powers and franchises of Parent and Merger Company, the current officers and

directors of Parent and Merger Company will take all such lawful and necessary

action.

                                  ARTICLE II

                   REPRESENTATIONS AND WARRANTIES OF PARENT

   As of the date hereof and as of the Closing Date, Parent represents and

warrants to Merger Company, subject to such exceptions as are specifically disclosed in writing in the disclosure letter and referencing a specific representation supplied by Parent to Merger Company dated as of the date

hereof and certified by a duly authorized officer of Parent, as follows:

   2.1 Organization and Qualification

   (a) Parent is a corporation duly organized, validly existing and in good

standing under the laws of the State of Delaware and has the requisite

corporate power and authority to own, lease and operate its assets and

properties and to carry on its business as it is now being conducted. Parent is duly qualified or licensed as a foreign corporation to do business, and is in good standing, in each jurisdiction where the nature of its activities makes such qualification necessary.  

   (b) The Parent has a wholly-owned subsidiary, BullsnBears Holdings, Inc., a Florida corporation.  

   2.2 Articles of Incorporation and Bylaws. Parent has previously furnished

to Merger Company a complete and correct copy of its Articles of Incorporation and Bylaws as amended to date (together, the "Parent Charter Documents"). Such

Parent Charter Documents are in full force and effect. Parent is not in

violation of any of the provisions of the Parent Charter Documents.

   2.3 Capitalization

   (a) The authorized capital stock of Parent consists of 100,000,000 shares

of Parent Common Stock, $.001 par value,  and 25,000,000 shares of Preferred Stock ("Parent Preferred Stock"),$.001 par value.   At the close of

business on 12/10/15 (i) 12,958,270 shares of Parent Common Stock

were issued and outstanding, all of which are validly issued, fully paid and

nonassessable; (ii) no shares of Parent Common Stock were held in treasury by

Parent or by subsidiaries of Parent; (iii) 5,000,000 shares of Parent Common

Stock were reserved for future issuance upon conversion of warrants of the Parent. As of the date hereof, 4,000 shares of Parent series A Preferred Stock were issued or outstanding.

   2.4 Authority Relative to this Agreement. Parent has all necessary

corporate power and authority to execute and deliver this Agreement and to

perform its obligations hereunder and, subject to obtaining the approval of

the shareholders of Parent of the Merger, to consummate the transactions

contemplated hereby. The execution and delivery of this Agreement by Parent

and the consummation by Parent of the transactions contemplated hereby have

been duly and validly authorized by all necessary corporate action on the part

of Parent and no other corporate proceedings on the part of Parent are

necessary to authorize this Agreement or to consummate the transactions so

contemplated (other than, with respect to the Merger, the approval and

adoption of this Agreement by holders of a majority of the outstanding shares

of Parent Common Stock in accordance with Delaware Law and the Parent Charter

Documents). This Agreement have been duly and validly executed and delivered

by Parent and, assuming the due authorization, execution and delivery by

Parent and Merger Company, constitute legal and binding obligations of Parent,

enforceable against Parent in accordance with their respective terms.

   2.5 No Conflict; Required Filings and Consents

   (a) The execution and delivery of this Agreement by Parent do not, and the

performance of this Agreement by Parent shall not, (i) conflict with or

violate the Parent Charter Documents or the equivalent organizational

documents of any of Parent's subsidiaries, (ii) subject to obtaining the

approval of Parent's shareholders of the Merger and compliance with the

requirements set forth in Section 2.5(b) below, conflict with or violate any

law, rule, regulation, order, judgment or decree applicable to Parent or any

of its subsidiaries or by which its or any of their respective properties is

bound or affected, or (iii) result in any breach of or constitute a default

(or an event that with notice or lapse of time or both would become a default)

under, or impair Parent's or any of its subsidiaries' rights or alter the

rights or obligations of any third party under, or give to others any rights

of termination, amendment, acceleration or cancellation of, or result in the

creation of a lien or encumbrance on any of the properties or assets of

Parent or any of its subsidiaries pursuant to, any material note, bond,

mortgage, indenture, contract, agreement, lease, license, permit, franchise or

other instrument or obligation to which Parent or any of its subsidiaries is

a party or by which Parent or any of its subsidiaries or its or any of their

respective properties are bound or affected, except to the extent such

conflict, violation, breach, default, impairment or other effect could not in

the case of clauses (ii) or (iii) individually or in the aggregate, reasonably

be expected to have a Material Adverse Effect on Parent.

   (b) The execution and delivery of this Agreement by Parent do not, and the

performance of this Agreement by Parent shall not, require any consent,

approval, authorization or permit of, or filing with or notification to, any

court, administrative agency, commission, governmental or regulatory

authority, domestic or foreign (a "Governmental Entity"), except (i) for

applicable requirements, if any, of the Securities Act of 1933, as amended

(the "Securities Act"), the Securities Exchange Act of 1934, as amended (the

"Exchange Act"), state securities laws ("Blue Sky Laws"), the rules and regulations of FINRA, and the filing and recordation of the Certificate of Merger as required by Delaware Law and the filing and recordation of the Nevada Certificate of Merger as required by Nevada Law and (ii) where

the failure to obtain such consents, approvals, authorizations or permits, or

to make such filings or notifications, could not, individually or in the

aggregate, reasonably be expected to have a Material Adverse Effect on

Parent, would not prevent consummation of the Merger or otherwise prevent

Parent from performing its obligations under this Agreement.

   2.6 Compliance; Permits

   (a) Parent is not in conflict with, or in default or violation of, (i) any

law, rule, regulation, order, judgment or decree applicable to Parent or by

which its or any of their respective properties is bound or affected, or (ii)

any material note, bond, mortgage, indenture, contract, agreement, lease,

license, permit, franchise or other instrument or obligation to which Parent

is a party or by which Parent or its properties is bound or affected, except

for any conflicts, defaults or violations that (individually or in the

aggregate) would not cause the Parent to lose any material benefit or incur

any material liability. No investigation or review by any governmental or

regulatory body or authority is pending or, to the knowledge of Parent,

threatened against Parent, with the exception of the administrative proceeding presently being conducted by the Florida Office of Financial Regulation, nor has any governmental or regulatory body or authority indicated an intention to conduct the same.  

   (b) Parent hold all permits, licenses, variances, exemptions, orders and

approvals from governmental authorities which are material to operation of the

business of Parent (collectively, the "Parent Permits"). Parent is in

compliance in all material respects with the terms of the Parent Permits.

   2.7 SEC Filings; Financial Statements

   (a) Parent has made available to Merger Company a correct and complete copy of each report, schedule, registration statement and definitive proxy statement

filed by Parent with the Securities and Exchange Commission ("SEC") for the past three years (the "Parent SEC Reports"), which are all the forms, reports

and documents required to be filed by Parent with the SEC. The Parent SEC Reports (A) were prepared in accordance with the requirements of the Securities Act or the Exchange Act, as the case may be, and (B) did not at the time they were filed (and if amended or superseded by a filing prior to the date of this Agreement then on the date of such filing) contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.

   (b) Each set of consolidated financial statements (including, in each case,

any related notes thereto) contained in the Parent SEC Reports was prepared

in accordance with generally accepted accounting principles ("GAAP") applied

on a consistent basis throughout the periods involved (except as may be

indicated in the notes thereto or, in the case of unaudited statements, do not

contain footnotes as permitted by Form 10-Q of the Exchange Act) and each

fairly presents the consolidated financial position of Parent at the

respective dates thereof and the consolidated results of its operations and

cash flows for the periods indicated, except that the unaudited interim

financial statements were or are subject to normal adjustments which were not

or are not expected to be material in amount.

   (c) Parent has previously furnished to Parent a complete and correct copy

of any amendments or modifications, which have not yet been filed with the SEC

but which are required to be filed, to agreements, documents or other

instruments which previously had been filed by Parent with the SEC pursuant

to the Securities Act or the Exchange Act.

   2.8 No Undisclosed Liabilities. Parent has no liabilities (absolute,

accrued, contingent or otherwise) which are, individually or in the aggregate,

material to the business, results of operations or financial condition of

Parent taken as a whole, except (i) liabilities provided for in Parent's

balance sheet as of September 30, 2015 or (ii) liabilities incurred since

September 30, 2015 in the ordinary course of business.

 

   2.9 Absence of Certain Changes or Events. Since September 30, 2015, there

has not been: (i) any Material Adverse Effect on Parent, (ii) any

declaration, setting aside or payment of any dividend on, or other

distribution (whether in cash, stock or property) in respect of, any of

Parent's capital stock, or any purchase, redemption or other acquisition by

Parent of any of Parent's capital stock or any other securities of Parent

or any options, warrants, calls or rights to acquire any such shares or other

securities except for repurchases from employees following their termination

pursuant to the terms of their pre-existing stock option or purchase

agreements, (iii) any split, combination or reclassification of any of

Parent's capital stock, (iv) any granting by Parent of any increase in

compensation or fringe benefits, except for normal increases of cash

compensation to non-officer employees in the ordinary course of business

consistent with past practice, or any payment by Parent of any bonus, except

for bonuses made to non-officer employees in the ordinary course of business

consistent with past practice, or any granting by Parent of any increase in

severance or termination pay or any entry by Parent into any currently

effective employment, severance, termination or indemnification agreement or

any agreement the benefits of which are contingent or the terms of which are

materially altered upon the occurrence of a transaction involving Parent of

the nature contemplated hereby, (v) entry by Parent into any licensing or

other agreement with regard to the acquisition or disposition of any

Intellectual Property (as defined in Section 2.19) other than licenses in the

ordinary course of business consistent with past practice or any amendment or

consent with respect to any licensing agreement filed or required to be filed

by Parent with the SEC, (vi) any material change by Parent in its accounting

methods, principles or practices, except as required by concurrent changes in

GAAP, or (vii) any revaluation by Parent of any of its assets, including,

without limitation, writing down the value of capitalized inventory or writing

off notes or accounts receivable or any sale of assets of the Parent other

than in the ordinary course of business.

   2.10 Absence of Litigation. There are no claims, actions, suits or

proceedings pending or, to the knowledge of Parent, threatened (or, to the

knowledge of Parent, any governmental or regulatory investigation pending or

threatened, other than as disclosed in Section 2.6(a)) against Parent or any properties or rights of Parent, before any court, arbitrator or administrative, governmental or regulatory authority or body, domestic or foreign.

   2.11 Restrictions on Business Activities. There is no agreement,

commitment, judgment, injunction, order or decree binding upon Parent or to

which the Parent is a party which has or could reasonably be expected to have

the effect of prohibiting or materially impairing any business practice of

Parent, any acquisition of property by Parent or the conduct of business by

Parent as currently conducted.

   2.12 Title to Property. Parent does not own any real property. Parent has good and defensible title to all of their assets, free and clear of all liens, charges and encumbrances except liens for taxes not yet due and payable and such liens or other imperfections of title, if any, as do not materially detract from the value of or interfere with the present use of the property affected thereby.  

   2.13 Taxes

   (a) For the purposes of this Agreement, "Tax" or "Taxes" refers to any and

all federal, state, local and foreign taxes, assessments and other

governmental charges, duties, impositions and liabilities relating to taxes,

including taxes based upon or measured by gross receipts, income, profits,

sales, use and occupation, and value added, ad valorem, transfer, franchise,

withholding, payroll, recapture, employment, excise and property taxes,

together with all interest, penalties and additions imposed with respect to

such amounts and any obligations under any agreements or arrangements with any

other person with respect to such amounts and including any liability for

taxes of a predecessor entity.

   (b) (i) The Parent has timely filed all federal, state, local and foreign

returns, estimates, information statements and reports ("Returns") relating to

Taxes required to be filed by the Parent with any Tax authority, except such

Returns which are not material to the Parent. The Parent has paid all Taxes

shown to be due on such Returns.

 

     (ii) The Parent as of the Effective Time will have withheld with

  respect to its employees all federal and state income taxes, Taxes pursuant

  to the Federal Insurance Contribution Act, Taxes pursuant to the Federal

  Unemployment Tax Act and other Taxes required to be withheld, except such

  Taxes which are not material to the Parent.

     (iii) Parent has not been delinquent in the payment of any material Tax

  nor is there any material Tax deficiency outstanding, proposed or assessed

  against the Parent, nor has the Parent executed any unexpired waiver of

  any statute of limitations on or extending the period for the assessment or

  collection of any Tax.

     (iv) No audit or other examination of any Return of the Parent by any

  Tax authority is presently in progress, nor has the Parent been notified

  of any request for such an audit or other examination.

     (v) No adjustment relating to any Returns filed by the Parent has been

  proposed in writing formally or informally by any Tax authority to the

  Parent or any representative thereof.

     (vi) Parent does not have any liability for any material unpaid Taxes

  which has not been accrued for or reserved on the Parent balance sheet

  dated June 30, 1999 in accordance with GAAP, whether asserted or

  unasserted, contingent or otherwise, which is material to the Parent

  other than any liability for unpaid Taxes that may have accrued since 

  September 30, 2015 in connection with the operation of the business of the 

  Parent in the ordinary course.

   2.14 Agreements, Contracts and Commitments. Parent is not a party to or is bound by:

   (a) any employment or consulting agreement, contract or commitment with any

officer or director or higher level employee or member of Parent's Board of

Directors, other than those that are terminable by Parent on no more than

thirty (30) days' notice without liability or financial obligation to the

Parent;

   (b) any agreement or plan, including, without limitation, any stock option

plan, stock appreciation right plan or stock purchase plan, any of the

benefits of which will be increased, or the vesting of benefits of which will

be accelerated, by the occurrence of any of the transactions contemplated by

this Agreement or the value of any of the benefits of which will be calculated

on the basis of any of the transactions contemplated by this Agreement;

   (c) any agreement of indemnification or any guaranty other than any

agreement of indemnification entered into in connection with the sale or

license of software products in the ordinary course of business;

   (d) any agreement, contract or commitment currently in force relating to

the disposition or acquisition by Parent after the date of this Agreement of

a material amount of assets not in the ordinary course of business or pursuant

to which Parent has any material ownership interest in any corporation,

partnership, joint venture or other business enterprise;

   (e) any mortgages, indentures, guarantees, loans or credit agreements,

security agreements or other agreements or instruments relating to the

borrowing of money or extension of credit;

   (f) any settlement agreement entered into within five (5) years prior to

the date of this Agreement; or

   (g) any other agreement, contract or commitment that has a value of

$10,000 or more individually.

   

   2.15 Board Approval. The Board of Directors of Parent has, as of the date

of this Agreement, unanimously (i) approved this Agreement and has approved

the Merger and the other transactions contemplated hereby, (ii) determined

that the Merger is consistent with and in furtherance of the long-term

business strategy of Parent and fair to, and in the best interests of,

Parent and its shareholders and (iii) determined to recommend that the

shareholders of Parent adopt and approve this Agreement and approve the

Merger.

   2.16 Vote Required. The affirmative vote of a majority of the votes that

holders of the outstanding shares of Parent Common Stock are entitled to vote

with respect to the Merger is the only vote of the holders of any class or

series of Parent's capital stock necessary to approve this Agreement and the

transactions contemplated hereby.

   

                                  ARTICLE III

            REPRESENTATIONS AND WARRANTIES OF MERGER COMPANY

   Merger Company represents and warrants to Parent, as follows:

   3.1 Organization and Qualification; Subsidiaries.  The Merger Company is a corporation duly organized, validly existing and in good standing

under the laws of the jurisdiction of its incorporation and has the requisite

corporate power and authority to own, lease and operate its assets and

properties and to carry on its business as it is now being conducted. Merger Company is duly qualified or licensed as a foreign corporation to do business, and is in good standing, in each jurisdiction where the character of the properties owned, leased or operated by it or the nature of its activities makes such qualification or licensing necessary. 

   3.2 Certificate of Incorporation and Bylaws. Merger Company has previously

furnished to Parent complete and correct copies of its Certificate of

Incorporation and Bylaws as amended to date (together, the "Merger Company Charter Documents"). Such Merger Company Charter Documents are in full force and effect.

   3.3 Capitalization. The authorized capital stock of Merger Company consists of (i)___________ shares of Merger Company Common Stock, and (ii) ________ shares of Preferred Stock, $0.001 par value per share. At the

close of business on _____________,  (i) ___________ shares of Common

Stock were issued and outstanding, and (ii) ____________ shares of Preferred Stock were issued and outstanding.

   3.4 Authority Relative to this Agreement. The Merger Company has

all necessary corporate power and authority to execute and deliver this

Agreement, and to perform its obligations hereunder and to consummate the

transactions contemplated hereby. The execution and delivery of this Agreement

by Merger Company and the consummation by Parent and Merger Company of the

transactions contemplated hereby have been duly and validly authorized by all

necessary corporate action on the part of Merger Company, and no other

corporate proceedings on the part of Merger Company are necessary to

authorize this Agreement, or to consummate the transactions so contemplated,

subject only to the approval of the Share Issuance by Parent's stockholders

and the filing of the Certificate of Merger pursuant to Nevada Law and the

Delaware Certificate of Merger pursuant to Delaware Law. This Agreement has

been duly and validly executed and delivered by Merger Company and,

assuming the due authorization, execution and delivery by Parent, constitute

legal and binding obligations of Merger Company, enforceable against

Merger Company in accordance with its terms.

   3.5 No Conflict; Required Filings and Consents

   (a) The execution and delivery of this Agreement Merger Company

do not, and the performance of this Agreement by Merger Company shall

not, (i) conflict with or violate the Merger Company Charter Documents, Bylaws or equivalent organizational documents, (ii) subject to compliance

with the requirements set forth in Section 3.5(b) below, conflict with or

violate any law, rule, regulation, order, judgment or decree applicable to

Merger Company or any of its subsidiaries or by which it or their respective

properties are bound or affected.  

   (b) The execution and delivery of this Agreement by Merger Company

do not, and the performance of this Agreement by Merger Company shall

not, require any consent, approval, authorization or permit of, or filing with

or notification to, any Governmental Entity except (i) for applicable

requirements, if any, of the Securities Act, the Exchange Act, Blue Sky Laws,

, the rules and regulations of FINRA, and the filing and recordation of the

Certificate of Merger as required by Nevada Law and the Delaware Certificate

of Merger as required by Delaware Law and (ii) where the failure to obtain

such consents, approvals, authorizations or permits, or to make such filings

or notifications, (x) would not prevent consummation of the Merger or

otherwise prevent Merger Company from performing its obligations under this Agreement or (y) could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect on Parent.

   3.6 SEC Filings; Financial Statements.

   (a) Merger Company has made available to Parent a correct and complete copy of its financial statements for the period ended September 30, 2015, and which did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. 

   (b) Prior to the Closing, the Merger Company shall cause to be prepared and furnished to Parent audited financial statements prepared in accordance with 

GAAP applied on a consistent basis and Regulations S-K and S-X promulgated under the Securities Act of 1933, for such periods as shall be required for filing by the Parent as a Current Report on Form 8-K.  

   3.7 No Undisclosed Liabilities. The Merger Company has no liabilities (absolute, accrued, contingent or otherwise) which are,individually or in the aggregate, material to the business, results of operations or financial condition of Merger Company taken as a whole,except (i) liabilities provided for in Merger Company’s balance sheet as of September 30, 2015 or (ii) liabilities incurred since September 30, 2015 in the ordinary course of business.

   3.9 Absence of Litigation. There are no claims, actions, suits or

proceedings pending or, to the knowledge of Merger Company threatened (or, to the knowledge of Merger Company, any governmental or regulatory investigation pending or threatened) against Merger Company or any properties or rights of Merger Company, before any court, arbitrator or administrative, governmental or

regulatory authority or body, domestic or foreign.

   3.10 Board Approval. The Board of Directors of Merger Company has, as of the date of this Agreement, unanimously (i) has determined that the Merger is

consistent with and in furtherance of the long-term business strategy of Merger Company and is fair to, and in the best interests of, Merger Company and

its stockholders, (ii) has approved this Agreement, the Merger and the other

transactions contemplated by this Agreement and (iii) has determined to

recommend that the stockholders of Merger Company approve the Share Issuance.

   3.20 Vote Required. The affirmative vote of a majority of the shares of

Merger Company Common Stock that cast votes regarding the Share Issuance in person or by proxy at the Parent Stockholders' Meeting is the only vote of the holders of any class or series of Parent's capital stock necessary to approve this Agreement and the transactions contemplated hereby.

   

                                  ARTICLE IV

                      CONDUCT PRIOR TO THE EFFECTIVE TIME

   4.1 Conduct of Business by Parent. During the period from the date of this

Agreement and continuing until the earlier of the termination of this

Agreement pursuant to its terms or the Effective Time, Parent shall, except

to the extent that Parent shall otherwise consent in writing, carry on its

business, in the ordinary course, and in compliance with all applicable laws

and regulations, pay its debts and taxes when due subject to good faith

disputes over such debts or taxes, pay or perform other material obligations

when due, and use its commercially reasonable efforts consistent with past

practices and policies to (i) preserve intact its present business

organization, (ii) keep available the services of its present officers and

employees and (iii) preserve its relationships with customers, suppliers,

distributors, licensors, licensees, and others with which it has business

dealings.

   In addition, except as expressly permitted by the terms of this Agreement,

without the prior written consent of Parent, during the period from the date

of this Agreement and continuing until the earlier of the termination of this

Agreement pursuant to its terms or the Effective Time, Parent shall not do

any of the following and shall not permit its subsidiaries to do any of the

following:

   (a) Waive any stock repurchase rights, accelerate, amend or change the

period of exercisability of options or restricted stock, or reprice options

granted under any employee, consultant, director or other stock plans or

authorize cash payments in exchange for any options granted under any of such

plans;

   (b) Grant any severance or termination pay to any officer or employee

except pursuant to written agreements outstanding, or policies existing, on

the date hereof and as previously disclosed in writing or made available to

Parent, or adopt any new severance plan;

   (c) Transfer or license to any person or entity or otherwise extend, amend

or modify any rights to the Parent Intellectual Property, or enter into

grants to transfer or license to any person future patent rights other

than in the ordinary course of business consistent with past practices,

provided that in no event shall Parent license on an exclusive basis or sell

any Parent Intellectual Property;

   (d) Declare, set aside or pay any dividends on or make any other

distributions (whether in cash, stock, equity securities or property) in

respect of any capital stock or split, combine or reclassify any capital stock

or issue or authorize the issuance of any other securities in respect of, in

lieu of or in substitution for any capital stock;

   (e) Purchase, redeem or otherwise acquire, directly or indirectly, any

shares of capital stock of Parent or its subsidiaries, except repurchases of

unvested shares at cost in connection with the termination of the employment

relationship with any employee pursuant to stock option or purchase agreements

in effect on the date hereof;

   (f) Issue, deliver, sell, authorize, pledge or otherwise encumber or

propose any of the foregoing with respect to, any shares of capital stock or

any securities convertible into shares of capital stock, or subscriptions,

rights, warrants or options to acquire any shares of capital stock or any

securities convertible into shares of capital stock, or enter into other

agreements or commitments of any character obligating it to issue any such

shares or convertible securities, other than (x) the issuance delivery and/or

sale of (i) shares of Parent Common Stock pursuant to the exercise of stock

options outstanding as of the date of this Agreement or granted pursuant to

clause (y) hereof, and (ii) shares of Parent Common Stock issuable to

participants in the ESPP consistent with the terms thereof and (y) the

granting of stock options (and the issuance of Parent Common Stock upon

exercise thereof), in the ordinary course of business and consistent with past

practices, in an amount not to exceed options to purchase (and the issuance of

Parent Common Stock upon exercise thereof) 50,000 shares in the aggregate;

   (g) Cause, permit or propose any amendments to the Parent Charter

Documents (or similar governing instruments of any of its subsidiaries);

   (h) Acquire or agree to acquire by merging or consolidating with, or by

purchasing any equity interest in or a portion of the assets of, or by any

other manner, any business or any corporation, partnership, association or

other business organization or division thereof, or otherwise acquire or agree

to acquire any assets or enter outside the ordinary course of Parent's

business consistent with past practice into any joint ventures, strategic

partnerships or alliances;

   (i) Sell, lease, license, encumber or otherwise dispose of any properties

or assets except sales of inventory in the ordinary course of business

consistent with past practice, except for the sale, lease or disposition

(other than through licensing) of property or assets which are not material,

individually or in the aggregate, to the business of Parent and its

subsidiaries;

   (j) Incur any indebtedness for borrowed money or guarantee any such

indebtedness of another person, issue or sell any debt securities or options,

warrants, calls or other rights to acquire any debt securities of Parent,

enter into any "keep well" or other agreement to maintain any financial

statement condition or enter into any arrangement having the economic effect

of any of the foregoing other than in connection with the financing of

ordinary course trade payables consistent with past practice;

   (k) Adopt or amend any employee benefit plan, policy or arrangement, any

employee stock purchase or employee stock option plan, or enter into any

employment contract or collective bargaining agreement (other than offer

letters and letter agreements entered into in the ordinary course of business

consistent with past practice with employees who are terminable "at will"),

pay any special bonus or special remuneration to any director or employee, or

increase the salaries or wage rates or fringe benefits (including rights to

severance or indemnification) of its directors, officers, employees or

consultants;

   (l) Make any individual or series of related payments outside of the

ordinary course of business;

   (m) Revalue any of its assets or, except as required by GAAP, make any

change in accounting methods, principles or practices;

   (n) Incur or enter into any agreement, contract or commitment outside of

the ordinary course of business in excess of $10,000 individually;

   (o) Engage in any action that could (i) cause the Merger to fail to qualify

as a "reorganization" under Section 368(a) of the Code or (ii) interfere with

Parent's ability to account for the Merger as a pooling of interests, whether

or not (in each case) otherwise permitted by the provisions of this Article

IV;

   (p) Engage in any action with the intent to directly or indirectly

adversely impact any of the transactions contemplated by this Agreement;

   (q) Make any tax election that, individually or in the aggregate, is

reasonably likely to adversely affect in any material respect the tax

liability or tax attributes of Parent or any of its subsidiaries or settle or

compromise any material income tax liability; or

   (r) Agree in writing or otherwise to take any of the actions described in

Section 4.1 (a) through (q) above.

   4.2 Conduct of Business by Merger Company. During the period from the date of this Agreement and continuing until the earlier of the termination of this

Agreement pursuant to its terms or the Effective Time, Merger Company

shall, except to the extent that Parent shall otherwise consent in writing,

carry on its business, in the ordinary course and in compliance with all

applicable laws and regulations, pay its debts and taxes when due subject to

good faith disputes over such debts or taxes, pay or perform other material

obligations when due, and use its commercially reasonable efforts consistent

with past practices and policies to (i) preserve intact its present business

organization, (ii) keep available the services of its present officers and

employees and (iii) preserve its relationships with customers, suppliers,

distributors, licensors, licensees, and others with which it has business

dealings.

   During the period from the date of this Agreement and continuing until the

earlier of the termination of this Agreement pursuant to its terms or the

Effective Time, Parent shall not do any of the following and shall not permit

its subsidiaries to do any of the following:

   (a) Waive any stock repurchase rights, accelerate, amend or change the

period of exercisability of options or restricted stock, or reprice options

granted under any employee, consultant, director or other stock plans or

authorize cash payments in exchange for any options granted under any of such

plans;

   (b) Declare, set aside or pay any dividends on or make any other

distributions (whether in cash, stock, equity securities or property) in

respect of any capital stock or split, combine or reclassify any capital stock

or issue or authorize the issuance of any other securities in respect of, in

lieu of or in substitution for any capital stock;

   (c) Purchase, redeem or otherwise acquire, directly or indirectly, any

shares of capital stock of Parent or its subsidiaries, except repurchases of

unvested shares at cost in connection with the termination of the employment

relationship with any employee pursuant to stock option or purchase agreements

in effect on the date hereof;

   (d) Issue, deliver, sell, authorize, pledge or otherwise encumber or

propose any of the foregoing with respect to, any shares of capital stock or

any securities convertible into shares of capital stock, or subscriptions,

rights, warrants or options to acquire any shares of capital stock or any

securities convertible into shares of capital stock, or enter into other

agreements or commitments of any character obligating it to issue any such

shares or convertible securities; 

   (e) Cause, permit or propose any amendments to the Merger Company Charter  Documents; 

   (f) Sell, lease, license, encumber or otherwise dispose of any properties

or assets except sales of inventory in the ordinary course of business

consistent with past practice, except for the sale, lease or disposition

(other than through licensing) of property or assets which are not material,

individually or in the aggregate, to the business of Parent and its

subsidiaries.  

                                   

ARTICLE V

                             ADDITIONAL AGREEMENTS

   

   5.1 Shareholder and Stockholder Meetings. Parent and Merger Company shall take all action necessary in accordance with applicable law and the Parent and Merger Company Charter Documents to convene their respective Shareholders' Meetings for the purpose of voting upon the approval of this Agreement and the Merger or the Share Issuance, as the case may be, or to obtain such shareholder consent by Action on Written Consent as permitted by their respective Charter Documents and Delaware and Nevada law.

   5.2 Confidentiality; Access to Information.

   (a) The parties acknowledge that Parent and Parent have previously

executed a mutual nondisclosure agreement, dated as of ________ (the "Confidentiality Agreement"), which Confidentiality Agreement

will continue in full force and effect in accordance with its terms.

   (b) Each of the Parent and Merger Company will afford the other and the other's accountants, counsel and other representatives reasonable access during normal business hours and upon reasonable notice to its properties, books, records and personnel during the period prior to the Effective Time to obtain all information concerning its business as such other party may reasonably

request. No information or knowledge obtained in any investigation pursuant to

this Section 5.3 will affect or be deemed to modify any representation or

warranty contained herein or the conditions to the obligations of the parties

to consummate the Merger.

   5.3 Public Disclosure. Parent and Merger Company will consult with each other and agree before issuing any press release or otherwise making any public

statement with respect to the Merger, and will not issue any such press release or make any such public statement prior to such agreement, except as may be required by law, in which case reasonable efforts to consult with the other party will be made prior to any such release or public statement. The parties have agreed to the text of the joint press release announcing the signing of this Agreement.

   

   5.4 Indemnification.

   (a) From and after the Effective Time, Parent will cause the Surviving

Corporation to fulfill and honor in all respects the obligations of Parent

pursuant to any indemnification agreements between Parent and its directors

and officers in effect immediately prior to the Effective Time and any

indemnification provisions under the Parent Charter Documents as in effect on

the date hereof. The Certificate of Incorporation and Bylaws of the Surviving

Corporation will contain provisions with respect to exculpation and

indemnification that are at least as favorable to the indemnified parties

thereunder (the "Indemnified Parties") as those contained in the Parent

Charter Documents as in effect on the date hereof, which provisions will not

be amended, repealed or otherwise modified for a period of six years from the

Effective Time in any manner that would adversely affect the rights thereunder

of the Indemnified Parties, unless such modification is required by law.

   5.5 Parent Board of Directors. The Board of Directors of Parent will take

all actions necessary such that one member of Parent's Board of Directors

reasonably acceptable to Merger Company, shall be appointed to Parent's

Board of Directors as of the Effective Time, which shall consist of ____

members in total after such appointments. The Board of Directors of Parent will take all actions necessary to nominate Parent's appointee to Parent's Board

of Directors for re-election at the expiration of such appointee's initial

term.

   

                                  ARTICLE VI

                           CONDITIONS TO THE MERGER

   6.1 Conditions to Obligations of Each Party to Effect the Merger  The

respective obligations of each party to this Agreement to effect the Merger

shall be subject to the satisfaction at or prior to the Closing Date of the

following conditions:

   (a) Shareholder and Stockholder Approvals. This Agreement shall have been

approved and adopted, and the Merger shall have been duly approved, by the

requisite vote under applicable law, by the shareholders of Parent and the Merger Company, and the Share Issuance shall have been approved by the requisite vote by the stockholders of Parent.

   (b) Representations and Warranties. Each representation and warranty of

Parent and Merger Company contained in this Agreement (i) shall have been true and correct as of the date of this Agreement and (ii) shall be true and correct on and as of the Closing Date with the same force and effect as if made on the

Closing Date except (A) for such failures to be true and correct that do not

in the aggregate constitute a Material Adverse Effect on Parent and Merger Company. 

   (c) Agreements and Covenants. Parent and Merger Company shall have performed or complied in all material respects with all agreements and covenants required

by this Agreement to be performed or complied with by them on or prior to the

Closing Date, and Parent shall have received a certificate to such effect

signed on behalf of Parent by an authorized officer of Parent.

   

                                  ARTICLE VII

                       TERMINATION, AMENDMENT AND WAIVER

   7.1 Termination. This Agreement may be terminated at any time prior to the

Effective Time, whether before or after the requisite approval of the

shareholders of Parent:

   (a) by mutual written consent duly authorized by the Boards of Directors of

Parent and Parent;

   (b) by either Parent or Parent if the Merger shall not have been

consummated by May 31, 2016 for any reason; provided, however, that the right

to terminate this Agreement under this Section 7.1(b) shall not be available

to any party whose action or failure to act has been a principal cause of or

resulted in the failure of the Merger to occur on or before such date and such

action or failure to act constitutes a breach of this Agreement;

   (c) by either Parent or Parent if a Governmental Entity shall have issued

an order, decree or ruling or taken any other action, in any case having the

effect of permanently restraining, enjoining or otherwise prohibiting the

Merger, which order, decree, ruling or other action is final and

nonappealable;

   (d) by either Parent or Merger Company if (i) the required approval of the

shareholders of Parent contemplated by this Agreement shall not have been

obtained by reason of the failure to obtain the required vote at a meeting of

Parent shareholders duly convened therefor or at any adjournment therefor;  

   (e) by Merger Company, upon a breach of any representation, warranty, covenant or agreement on the part of Parent set forth in this Agreement, or if any representation or warranty of Parent shall have become untrue,  provided, that if such inaccuracy in Parent's representations and warranties or breach by Parent is curable by Parent, then Merger Company may not terminate this Agreement under this Section 7.1(e) for thirty (30) days after delivery of written notice from Merger Company to Parent of such breach, provided Parent continues to exercise best efforts to cure such breach (it being understood that Merger Company may not terminate this Agreement pursuant to this paragraph (e) if such breach by Parent is cured during such thirty (30)-day period);

 

   (f) by Parent, upon a breach of any representation, warranty, covenant or

agreement on the part of Merger Company set forth in this Agreement, or if any

representation or warranty of Merger Company shall have become untrue, in either case such that the conditions set forth in Section 6.3(a) or Section 6.3(b) would not be satisfied as of the time of such breach or as of the time such

representation or warranty shall have become untrue, provided, that if such

inaccuracy in Merger Company’s representations and warranties or breach by Merger Company is curable by Merger Company, then Parent may not terminate this Agreement under this Section 7.1(f) for thirty (30) days after delivery of written notice from Parent to Merger Company of such breach, provided Merger Company continues to exercise best efforts to cure such breach (it being understood that Parent may not terminate this Agreement pursuant to this paragraph (f) such breach by Merger Company is cured during such thirty (30)-day period. 

   7.2 Notice of Termination; Effect of Termination. Any termination of this

Agreement under Section 7.1 above will be effective immediately upon the

delivery of written notice of the terminating party to the other parties

hereto (or such later time as may be required by Section 7.1). In the event of

the termination of this Agreement as provided in Section 7.1, this Agreement

shall be of no further force or effect, except (i) as set forth in this

Section 7.2, Section 5.3(a), Section 7.3 and Article VIII, each of which shall

survive the termination of this Agreement, and (ii) nothing herein shall

relieve any party from liability for fraud in connection with, or any willful

breach of, this Agreement.

   7.3 Fees and Expenses.

   (a) General. Except as set forth in this Section 7.3, all fees and expenses

incurred in connection with this Agreement and the transactions contemplated

hereby shall be paid by the party incurring such expenses whether or not the

Merger is consummated.  

   7.4 Amendment. Subject to applicable law, this Agreement may be amended by

the parties hereto at any time by execution of an instrument in writing signed

on behalf of Parent and Merger Company.

   7.5 Extension; Waiver. At any time prior to the Effective Time, any party

hereto may, to the extent legally allowed, (i) extend the time for the

performance of any of the obligations or other acts of the other parties

hereto, (ii) waive any inaccuracies in the representations and warranties made

to such party contained herein or in any document delivered pursuant hereto

and (iii) waive compliance with any of the agreements or conditions for the

benefit of such party contained herein. Any agreement on the part of a party

hereto to any such extension or waiver shall be valid only if set forth in an

instrument in writing signed on behalf of such party. Delay in exercising any

right under this Agreement shall not constitute a waiver of such right.

 

                                 ARTICLE VIII

                              GENERAL PROVISIONS

   8.1 Survival of Representations and Warranties. The representations and

warranties of Parent and Merger Company contained in this Agreement shall

terminate at the Effective Time, and only the covenants that by their terms

survive the Effective Time shall survive the Effective Time.

   8.2 Notices. All notices and other communications hereunder shall be in

writing and shall be deemed given if delivered personally or by commercial

delivery service, or sent via telecopy (receipt confirmed) to the parties at

the following addresses or telecopy numbers (or at such other address or

telecopy numbers for a party as shall be specified by like notice):

   (a) if to Parent, to:

       ___________________

       ___________________

       ___________________

       

   (b) if to Merger Company, to:

       ___________________

       ___________________

       ___________________

 

  8.3 Interpretation; Definitions.

   (a) When a reference is made in this Agreement to Exhibits, such reference

shall be to an Exhibit to this Agreement unless otherwise indicated. When a

reference is made in this Agreement to Sections, such reference shall be to a

Section of this Agreement. Unless otherwise indicated the words "include,"

"includes" and "including" when used herein shall be deemed in each case to be

followed by the words "without limitation." The table of contents and headings

contained in this Agreement are for reference purposes only and shall not

affect in any way the meaning or interpretation of this Agreement. When

reference is made herein to "the business of" an entity, such reference shall

be deemed to include the business of all direct and subsidiaries of such entity. Reference to the subsidiaries of an entity shall be deemed to include all direct and indirect subsidiaries of such entity.

   (b) For purposes of this Agreement:

     (i) the term "knowledge" means with respect to a party hereto, with

  respect to any matter in question, the actual knowledge of the executive

  officers of such party;

     (ii) the term "Material Adverse Effect" when used in connection with an

  entity means any change, event, violation, inaccuracy, circumstance or

  effect, individually or when aggregated with other such changes, events,

  violations, incurrences, circumstances or effects, that is materially

  adverse to the business, assets, liabilities, financial condition or

  results of operations of such entity and its subsidiaries taken as a whole;

  provided, however, that in no event shall (A) a decrease in such entity's

  stock price or the failure to meet or exceed Wall Street research analysts'

  or such entity's internal earnings or other estimates or projections in and

  of itself constitute a Material Adverse Effect or (B) any change, event,

  violation, inaccuracy, circumstance or effect that such entity successfully

  bears the burden of proving results from (x) the public announcement or

  pendency of the transactions contemplated hereby, (y) changes affecting the

  internet banking industry generally (which changes do not

  disproportionately affect such entity) or (z) changes affecting the United

  States economy generally, constitute a Material Adverse Effect;

     (iii) the term "person" shall mean any individual, corporation

  (including any non-profit corporation), general partnership, limited

  partnership, limited liability partnership, joint venture, estate, trust,

  Parent (including any limited liability Parent or joint stock Parent),

  firm or other enterprise, association, organization, entity or Governmental

  Entity.

   8.4 Counterparts. This Agreement may be executed in one or more

counterparts, all of which shall be considered one and the same agreement and

shall become effective when one or more counterparts have been signed by each

of the parties and delivered to the other party, it being understood that all

parties need not sign the same counterpart.

   8.5 Entire Agreement. This Agreement and the documents and instruments and other agreements among the parties hereto as contemplated by or referred to herein, (a) constitute the entire agreement among the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof, it being understood that the Confidentiality Agreement shall continue in full force and effect until the Closing and shall survive any termination of this Agreement.  

   8.6 Severability. In the event that any provision of this Agreement, or the

application thereof, becomes or is declared by a court of competent

jurisdiction to be illegal, void or unenforceable, the remainder of this

Agreement will continue in full force and effect and the application of such

provision to other persons or circumstances will be interpreted so as

reasonably to effect the intent of the parties hereto. The parties further

agree to replace such void or unenforceable provision of this Agreement with a

valid and enforceable provision that will achieve, to the extent possible, the

economic, business and other purposes of such void or unenforceable provision.

   8.7 Other Remedies; Specific Performance. Except as otherwise provided

herein, any and all remedies herein expressly conferred upon a party will be

deemed cumulative with and not exclusive of any other remedy conferred hereby,

or by law or equity upon such party, and the exercise by a party of any one

remedy will not preclude the exercise of any other remedy. The parties hereto

agree that irreparable damage would occur in the event that any of the

provisions of this Agreement were not performed in accordance with their

specific terms or were otherwise breached. It is accordingly agreed that the

parties shall be entitled to seek an injunction or injunctions to prevent

breaches of this Agreement and to enforce specifically the terms and

provisions hereof in any court of the United States or any state having jurisdiction, this being in addition to any other remedy to which they are entitled at law or in equity.

   8.8 Governing Law. Except to the extent mandatorily governed by Delaware Law, this Agreement shall be governed by and construed in accordance with the

laws of the State of Florida, regardless of the laws that might otherwise

govern under applicable principles of conflicts of law thereof.

   8.9 Rules of Construction. The parties hereto agree that they have been

represented by counsel during the negotiation and execution of this Agreement

and, therefore, waive the application of any law, regulation, holding or rule

of construction providing that ambiguities in an agreement or other document

will be construed against the party drafting such agreement or document.

   8.10 Assignment. No party may assign either this Agreement or any of its

rights, interests, or obligations hereunder without the prior written approval

of the other parties. Subject to the preceding sentence, this Agreement shall

be binding upon and shall inure to the benefit of the parties hereto and their

respective successors and permitted assigns.

SIGNATURES

   IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be

executed by their duly authorized respective officers as of the date first

written above.

                                          BULLSNBEARS.COM, INC.

                                          By: ______________________________

 

                                          James Palladino, Director/ Secretary

                                          

                                           MICHAEL JAMES ENTERPRISES, INC.

                                          By:________________________________

 

                                              Michael James, Pres.Exhibit

EXHIBIT 10.1

EMPLOYMENT AGREEMENT
EMPLOYMENT AGREEMENT, dated as of September 17, 2015 (the “Employment Agreement”), by and between BakerCorp, a Delaware corporation (the “Company”), and Les Fry (the “Executive”).
WHEREAS, the Company desires to employ the Executive as Senior Vice President, Sales & Marketing of the Company and wishes to acquire and be assured of his services on the terms and conditions hereinafter set forth; and 

WHEREAS, the Executive desires to be employed by the Company as Senior Vice President, Sales & Marketing of the Company and to perform and to serve the Company on the terms and conditions hereinafter set forth.

NOW, THEREFORE, in consideration of the mutual covenants contained herein and other valid consideration, the sufficiency of which is acknowledged, the parties hereto agree as follows:
Section 1.Employment.

1.1Term.  Subject to Section 3 hereof, the Company agrees to employ the Executive, and the Executive agrees to be employed by the Company, in each case pursuant to this Employment Agreement, for a period commencing on October 12, 2015 (the “Effective Date”) and ending on the fifth anniversary of the Effective Date (the “Initial Term”); provided, however, that the period of the Executive’s employment pursuant to this Employment Agreement shall be automatically extended for successive one-year periods thereafter (each, a “Renewal Term”), in each case unless either party hereto provides the other party hereto with written notice that such period shall not be so extended at least 30 days in advance of the expiration of the Initial Term or the then-current Renewal Term, as applicable (the Initial Term and any Renewal Term, collectively, the “Term”).  Each additional one-year Renewal Term shall be added to the end of the next scheduled expiration date of the Initial Term or Renewal Term, as applicable, as of the first day after the last date on which notice may be given pursuant to the preceding sentence.  The Executive’s period of employment pursuant to this Employment Agreement shall hereinafter be referred to as the “Employment Period.”

1.2Duties.  During the Employment Period, the Executive shall serve as the Company’s Senior Vice President, Sales & Marketing and such other positions as an officer or director of the Company and such affiliates of the Company as the Executive and the board of directors (the “Board”) of BakerCorp International Holdings, Inc. (“Parent”) shall mutually agree from time to time, and shall have the customary duties associated with such positions.  The Executive shall report directly to the Chief Executive Officer of the Company.  The principal place of employment, and principal office, shall be the Executive’s home in Lexington, Kentucky, although Executive acknowledges that a core function of his duties will require him to spend the majority of his working time traveling on Company business (e.g., visiting Company branch locations, corporate headquarters in Plano, Texas and customer locations).  

1.3Exclusivity.  During the Employment Period, the Executive will devote substantially all of the Executive’s business time, attention and energies to the performance of the Executive’s duties hereunder.  Consistent with the foregoing obligation, during the Employment Period, the Executive shall not without the prior written consent of the Board, which the Board may grant or withhold in its sole discretion: (i) accept any other employment; (ii) serve on the board of directors or similar body of any other business entity; or (iii) engage, directly or indirectly, in any other business activity (whether or not pursued for pecuniary advantage) that, solely in the case of clause (iii), is or may be competitive with, or that might place Executive in a competing position to that of, the Company Group (as hereinafter defined).  The term “Company Group” means individually and collectively Parent and each of its direct and indirect subsidiaries, including, without limitation, the Company.  Notwithstanding the foregoing, nothing herein shall prevent the Executive from (x) serving on the boards of directors of non-profit organizations, (y) participating in charitable, civic, educational, professional, community or industry affairs and (z) managing the Executive’s passive personal investments so long as such activities in the aggregate do not interfere or conflict with the Executive’s duties hereunder or create a potential business or fiduciary conflict.

1.4Payment of Taxes.  To the extent that any taxes become payable by the Executive by virtue of any payments made to, or benefits conferred upon, the Executive by the Company, the Company shall not be liable to pay or obligated to reimburse the Executive for any such taxes or to make any adjustment under this Employment Agreement except as otherwise expressly set forth herein, and any payments otherwise due under this Employment Agreement to the Executive shall be reduced by any required withholding for federal, state and/or local taxes and other appropriate payroll deductions.

Section 2.Compensation.

2.1Salary.  As compensation for the performance of the Executive’s services hereunder, during the Employment Period, the Company shall pay to the Executive a salary at an annual rate of $275,000.00, payable in accordance with the Company’s standard payroll policies (the “Base Salary”).  The Base Salary will be reviewed annually and may be adjusted upward (but not downward) by the Board (or a committee thereof) in its sole discretion.

2.2Annual Bonus.  For each fiscal year of the Company ending during the Employment Period, the Executive shall be eligible for a potential award of additional compensation (the “Annual Bonus”) to be based upon such objectively determinable Company performance criteria for each such fiscal year as determined by the Board in the best interests of the Company (the “Performance Goals”).  The Executive’s target Annual Bonus opportunity for each fiscal year that ends during the Employment Period shall equal 75% of the Base Salary (the “Target Annual Bonus Opportunity”) (which shall be pro-rated for any fiscal year not falling entirely within the Employment Period).  The amount paid will depend on the extent to which the Performance Goals are achieved or exceeded.  Notwithstanding the foregoing, for the first fiscal year that the Executive is employed (FY2016), the Executive’s minimum Annual Bonus shall be $50,000.00 regardless of whether the Performance Goals are attained.  The Annual Bonus shall be paid within two and one-half months after the end of the Company’s fiscal year, subject to the Executive’s continued employment through the date of payment (including with respect to any minimum bonus for FY2016), except to the extent expressly provided herein.  The Annual Bonus shall be paid in cash. 

2.3Initial Stock Option Grant.  As soon as reasonably practicable following the Effective Date, Parent shall grant to the Executive an option to purchase shares of common stock of Parent, pursuant to an option agreement between Parent and the Executive, substantially in the form attached hereto as Exhibit B.  The foregoing grant shall be subject to the Board’s approval.

2.4Employee Benefits.  During the Employment Period, the Executive shall be eligible to participate in such health and other group insurance and other employee benefit plans and programs of the Company as in effect from time to time on the same basis as other senior executives of the Company.

2.5Vacation.  During the Employment Period, the Executive shall be entitled to four weeks vacation per fiscal year in accordance with the Company’s policy on accrual and use applicable to employees 

as in effect from time to time.  The number of vacation days is prorated for the first and last fiscal years of employment, and shall be determined by multiplying 20 by a fraction, the numerator of which is the number of days the Executive is employed by the Company during the applicable year and the denominator of which is 365.

2.6Business Expenses.  The Company shall pay or reimburse the Executive, upon presentation of documentation, for all commercially reasonable business out-of-pocket expenses that the Executive incurs during the Employment Period in performing his duties under this Employment Agreement provided that all such expenses are in accordance with the expense reimbursement policy of the Company as approved by the Board (or a committee thereof) and in effect from time to time.        

Section 3.Employment Termination.  

3.1Termination of Employment.  The Company may terminate the Executive’s employment hereunder for any reason during the Term, and the Executive may voluntarily terminate his employment hereunder for any reason during the Term, in each case (other than upon a termination by the Company for Cause, as defined below) at any time upon not less than 30 days’ notice to the other party (the date on which the Executive’s employment terminates for any reason is herein referred to as the “Termination Date”).  Upon the termination of Executive’s employment with the Company for any reason, the Executive shall be entitled to (i) payment of any Base Salary earned but unpaid through the Termination Date, (ii) any vested benefits to the extent provided under the applicable terms of applicable Company arrangements and (iii) any unreimbursed expenses in accordance with Section 2.6 hereof (collectively, the “Accrued Amounts”).  It is specifically understood and agreed by the parties to this Employment Agreement that the Company’s obligations under this Section 3 constitute good and valuable consideration for the covenants made by the Executive in favor of the Company under this Employment Agreement, including, without limitation, Section 4 hereof.
3.2Termination due to Death or Disability.  If the Executive’s employment is terminated due to the Executive’s death or Disability (as defined below), in addition to the Accrued Amounts, the Company shall pay to the Executive or the Executive’s estate, as applicable, a pro-rata bonus for the fiscal year of termination, equal to the Executive’s Target Annual Bonus Opportunity, multiplied by a fraction, the numerator of which is the number of days the Executive is employed by the Company during the applicable fiscal year prior to and including the Termination Date and the denominator of which is 365 (the “Pro-Rata Bonus”).  The Pro-Rata Bonus shall be paid within 30 days following the Termination Date.  

3.3Termination by the Company other than for Cause, Death or Disability; Termination by the Executive for Good Reason.  If the Executive’s employment is terminated (i) by the Executive by Voluntary Resignation for Good Reason, each as defined below (provided that the Executive has complied with the Notice of Resignation requirement set forth in Section 5.7 hereof) or (ii) by the Company without Cause (which shall include a Company non-renewal of this Employment Agreement in accordance with Section 1 hereof, provided, that, the Executive has continued employment to the end of the Term and resigns within ten days following the end of the Term), in addition to the Accrued Amounts, the Company shall pay to the Executive (A) a Pro-Rata Bonus and (B) an amount per month equal to one-twelfth of the Executive’s Base Salary for the 12-month period following the Termination Date (the “Severance Benefits Period”); provided, that, if such termination occurs within the one-year period following a Change in Control (as defined below), in lieu of the Base Salary continuation described in this clause (B), the Executive shall be entitled to such amount in a lump sum (the “Severance Amount”).  The Executive and the Executive’s dependents shall also be entitled to health benefits (including medical, dental and vision benefits) under the Company’s benefit plans for the Severance Benefits Period, subject to earlier termination of such benefits if the Executive ceases to be eligible for continuation coverage pursuant to Section 4980B of the Internal Revenue Code of 1986, as amended (“COBRA”) on similar terms and conditions applicable to the Executive immediately prior to the Termination Date; provided, that, such continuation coverage shall be paid for by the Executive as to the employee paid portion of the premium and by the Company as to the Company paid portion of the premium, as in effect for similarly situated employees under the Company’s benefit plans for active employees as of the Termination Date.  Executive shall only be entitled to reimbursement for the costs of such continuation coverage as provided herein, if the Executive was participating in the Company’s benefit plans for active employees immediately prior to the Termination Date.  The Executive shall be fully liable for the “employee paid” portion of any applicable premium (as are similarly situated active employees) under the benefit plans for which Executive has elected COBRA coverage.  

The Company paid portion of any applicable premium under the benefits plans for which Executive has elected COBRA coverage shall be paid in a lump sum payment by the Company to the Executive within the 30-day period following the Termination Date, shall be taxable income to the Executive and shall equal the Company paid portion of such applicable premiums for the entire Severance Benefits Period, regardless of any subsequent early termination of the Executive’s COBRA coverage.  The Executive shall then be solely responsible for enrolling in and paying for such COBRA coverage.  The period of such continued coverage shall be credited against the Company’s obligation to permit the Executive to elect continuation coverage under Section 601 of the Employee Retirement Income Security Act of 1974, as amended, and any similar state law, under COBRA, and any similar state law (the “Continued Medical Benefits”).  The Company’s obligations under this Section 3.3 are collectively referred to as the “Severance Benefits.”  Notwithstanding any provision to the contrary herein, and without limitation of any remedies to which the Company may be entitled, (i) the Severance Amount shall be paid, or commence to be paid, as applicable, within the 30-day period following the Termination Date, provided, that, the Executive signs and delivers to the Company the release attached hereto as Exhibit A (the “Release”) and the period (if any) during which the Release can be revoked expires within such 30-day period; provided, further, that, if such 30-day period spans two calendar years, payment of the Severance Amount shall be paid, or commence to be paid, as applicable, in the second calendar year.  The Executive specifically acknowledges that the Executive’s entering into this Employment Agreement and payment by the Company of the Severance Benefits constitutes good and valuable and otherwise sufficient consideration for the Executive’s execution and delivery of the Release.   

3.4Voluntary Resignation other than for Good Reason; Termination by the Company for Cause.  If the Executive’s employment with the Company is terminated (i) by the Executive by Voluntary Resignation other than for Good Reason or (ii) by the Company for Cause, the Company shall pay to the Executive the Accrued Amounts.

3.5No Mitigation or Set-Off.  In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Employment Agreement, nor shall the amount of any payment hereunder be reduced by any compensation earned by the Executive as a result of employment or other service by a subsequent employer or service recipient.  The Company’s obligations to pay the Executive amounts hereunder shall not be subject to set-off, counterclaim or recoupment of amounts owed by the Executive to the Company or any of its affiliates.

Section 4.Restrictive Covenants.  

4.1Non-Disclosure of Confidential Information. 

(a)“Confidential Information” means proprietary and confidential information regarding the Company Group that is not generally available to the public, including (to the extent that it is not so generally available): (1) information regarding the Company Group’s business, operations, financial condition, customers, vendors, sales representatives and other employees; (2) projections, budgets and business plans regarding the Company Group; (3) information regarding the Company Group’s planned or pending acquisitions, divestitures or other business combinations; (4) the Company Group’s trade secrets and proprietary information; and (5) the Company Group’s technical information, discoveries, inventions, improvements, techniques, processes, business methods, equipment, algorithms, software programs, software source documents and formulae.  For purposes of the preceding sentence, information is not treated as being generally available to the public if it is made public by the Executive in violation of this Employment Agreement. 

(b)During the Term and at all times thereafter, (i) the Executive must maintain all Confidential Information in confidence and must not disclose any Confidential Information to anyone outside of the Company Group; and (ii) the Executive must not use any Confidential Information for the benefit of the Executive or any third party.  Nothing in this Employment Agreement, however, prohibits the Executive from: (1) disclosing any information (or taking any other action) in furtherance of the Executive’s duties to the Company Group while employed by the Company Group; or (2) disclosing Confidential Information to the extent required by law (after giving prompt notice to the Company in order that the Company Group may attempt to obtain a protective order or other assurance that confidential treatment will be accorded such information).  Upon the Company’s request 

at any time, and upon the Termination Date, the Executive must immediately deliver to the Company Group all tangible items in the Executive’s possession or control that are or that contain Confidential Information, without keeping any copies.

(c)The covenants of the Executive under this Section 4.1 are in addition to, and are not intended to limit in any way, the Executive’s duties and obligations to the Company Group under any applicable statutory, civil or common law not to disclose or make personal use of Confidential Information or trade secrets.

4.2Non Solicitation, No-Hire and Non-Disparagement: 

(a)For the period beginning on the date of this Employment Agreement and ending two years after the Termination Date (the “Restricted Period”), the Executive covenants and agrees that the Executive shall not, directly or indirectly, as an officer, director, employee, partner, stockholder, member, proprietor, consultant, joint venturer, investor or in any other capacity, (i) solicit any Persons (as such term is defined below) who are, or within the one-year period immediately preceding the Termination Date were, customers of the Company Group, to purchase other than from the Company Group any goods or services sold or provided by the Company Group in relation to the Business (as such term is defined below) or (ii) take any action to discourage any Persons who are, or within the one-year period immediately preceding the Termination Date were, suppliers of the Company Group, from doing business with the Company Group.

(b)In addition, the Executive covenants and agrees that during the Restricted Period, the Executive shall not, directly or indirectly, as an officer, director, employee, partner, stockholder, member, proprietor, consultant, joint venturer, investor or in any other capacity, hire or solicit to perform services (as an employee, consultant or otherwise) or take any actions which are intended to persuade any termination of association with the Company Group (as applicable) any Persons who are, or within the six-month period immediately preceding the solicitation were, employed by the Company Group at the level of a manager, director (e.g., sales and marketing, business development), vice-president, president or any level more senior than any such level, provided, however, that (A) solicitation or hiring by the Executive of an immediate family member of such Executive shall not constitute a violation of this Section 4.2, and (B) general solicitations of employment published in a journal, newspaper or other publication of general circulation or listed on any internet job site and not specifically directed towards such employees shall not be deemed to constitute solicitation for purposes of this Section 4.2 and the hiring of any person as a result of such permitted solicitations shall not constitute a breach of this Section 4.2.

(c)The Executive also hereby covenants and agrees that the Executive shall not, directly or indirectly, make (or cause to be made) to any Person any knowingly disparaging, derogatory or other negative statement about the Company Group or any of their officers, directors or employees.  The Company covenants and agrees that the directors and senior officers of the Company shall not, directly or indirectly, while employed by the Company Group or serving as a director of any member of the Company Group, as the case may be, make (or cause to be made) to any person or entity any knowingly disparaging, derogatory or other negative statement about the Executive.  The foregoing shall not be violated by (i) truthful statements in response to legal process, required governmental testimony or filings, or administrative or arbitral proceedings (including, without limitation, depositions in connection with such proceedings), or (ii) statements that the Executive or the senior officers or directors of the Company in good faith believe are necessary or appropriate to make in connection with their good faith performance of their duties to the Company Group.

4.3Reasonableness of Restrictions.  The Executive specifically acknowledges and agrees that the time, geographic and activity restrictions (as applicable) set forth in Section 4 of this Employment Agreement are reasonable and properly required for the protection of the Company Group.  The Executive further agrees that these restrictions shall be given the construction which renders their provisions enforceable to the maximum extent (but not in excess of their express terms) possible under applicable law.  If, however, a court of competent jurisdiction determines that any of the restrictions stated herein are unreasonable or otherwise not enforceable, the parties agree to the reduction of such unenforceable restriction to the maximum time, geographic and activity restriction (as applicable) as such court deems reasonable and otherwise enforceable under the circumstances then 

existing.  Also, if the Company Group seeks partial enforcement of those Sections as to only time, geographic and activity restrictions which are deemed reasonable by a court of competent jurisdiction, then the Company Group shall be entitled to such partial enforcement.  If such agreement of reduction or right of partial enforcement is not enforced by a court of competent jurisdiction, then the unenforceable provisions shall be severed in accordance with Section 6.5.  The Executive recognizes that any breach of Section 4 will cause irreparable injury to the Company Group and that the actual damages may be difficult to ascertain, and the Executive agrees that money damages may not be an adequate remedy for breach of any such Sections.  Therefore, in the event of a breach or threatened breach of any such Sections by the Executive, the Company Group, or their respective successors and assigns may, in addition to other rights and remedies existing in their favor, apply to a court of competent jurisdiction for specific performance and/or injunctive or other relief in order to enforce or prevent any breach of, the provisions hereof without the requirement to post bond.  In addition, in the event of a breach by the Executive of such Sections, the covenant period with respect to the Executive and such breached restriction, shall be tolled until such breach is stopped.

4.4Other Obligations.  Without implication that the contrary would otherwise be true, the Executive’s obligations under Section 4 of this Employment Agreement are in addition to, and not in limitation of, any other obligations that the Executive may have under contract, applicable law or otherwise.

Section 5.Certain Definitions.

5.1“Business” means the business (i) of leasing temporary containment equipment, pumps, filtration and shoring equipment and related accessories, (ii) of selling pumps and related accessories, filtration and shoring equipment and (iii) as conducted or contemplated to be conducted (in the case of contemplated conduct, as evidenced by tangible business activities that have been undertaken by any member of the Company Group or actions, activities or plans approved by the Board) by the Company Group on the Termination Date. 

5.2“Cause” means any of the following, as reasonably determined in good faith by the Board: (i) commission by the Executive of a felony (or a crime involving moral turpitude); (ii) theft, conversion, embezzlement or misappropriation by the Executive of funds or other assets of the Company Group or any other act of fraud or material dishonesty with respect to the Company Group (including acceptance of any bribes or kickbacks); (iii) intentional, grossly negligent or unlawful misconduct by the Executive that causes material harm to the Company Group or exposes the Company Group to a substantial risk of material harm; (iv) the Executive’s violation of a law regarding employment discrimination or sexual harassment; (v) the Executive’s repeated failure to follow the reasonable directives of a supervisor (or the Board - or person(s) exercising a managerial function similar to the Board - of the Executive’s employer within the Company Group) which failure has not been cured by the Executive within 30 days after written notice to the Executive of such failure; (vi) the unauthorized dissemination by the Executive of Confidential Information which causes material harm to the Company Group or exposes the Company Group to material harm; (vii) a material breach of any non-competition, non-solicitation, confidentiality or similar agreement with the Company Group; or (viii) a material breach of this Employment Agreement which breach has not been cured by the Executive within 30 days after written notice to the Executive of such breach (which 30-day cure period shall be required only if such breach is capable of being cured).  In the event that the Board believes that Cause may exist, it shall provide the Executive with the opportunity to promptly (and in any event, not later than the date and time specified by the Board in writing for responding to its request for information, which date shall be reasonable given the circumstances that are being evaluated with regard to whether Cause may exist) provide the Board with information relevant to the Board’s ultimate determination as to whether Cause exists.  

5.3“Change in Control” means any transaction or series of related transactions (including the consummation of a merger, share purchase, recapitalization, redemption, issuance of capital stock, consolidation, reorganization or otherwise) pursuant to which (i) the stockholders of Parent immediately before such transaction own (together with their affiliates), immediately following such transaction, securities representing 50% or less of the combined voting power of the outstanding voting securities of the entity surviving or resulting from such transaction, or (ii) Parent sells all or substantially all of the assets of Parent and its subsidiaries on a consolidated basis; provided, that, for purposes of this Employment Agreement, an event shall not be considered to be a Change in Control unless such event is also a “change in control event” within the meaning of Section 409A of the Internal Revenue Code.

5.4“Disability” means that (1) the Executive is suffering from an illness, injury, impairment or other disability that has caused (or the Board reasonably determines will cause) the Executive to be unable to perform the Executive’s duties with any member of the Company Group for 90 consecutive days or for 120 cumulative days during any 180-day period; (2) the Executive, the Executive’s spouse or a minor child of the Executive has been diagnosed with a disease or illness that a medical doctor reasonably acceptable to the Executive and the Company has certified is terminal; or (3) the Executive is receiving long term disability benefits under any policy, plan or program. 

5.5“Good Reason” means the occurrence of any of the following events, without the express written consent of the Executive, unless such events are fully corrected in all material respects by the Company within 30 days following written notification by the Executive to the Company of the occurrence of one of the reasons set forth below: (i) a material diminution in the Executive’s Base Salary or Target Annual Bonus Opportunity; (ii) a material diminution in the Executive’s duties, authorities or responsibilities (other than temporarily while physically or mentally incapacitated or as required by applicable law); or (iii) a relocation of the Executive’s primary work location by more than 50 miles from its then current location.  The Executive must provide the Company with a written notice detailing the specific circumstances alleged to constitute Good Reason in a Notice of Resignation pursuant to Section 5.7 hereof within 90 days after first becoming aware of the occurrence of such circumstances, and actually terminate employment within 30 days following the expiration of the Company’s 30-day cure period described above. 

5.6“Person” means any individual, partnership, corporation, limited liability company, association, joint stock company, trust, joint venture, unincorporated organization, or the United States of America or any other nation, state or other political subdivision thereof, or any entity exercising executive, legislative, judicial, regulatory or administrative functions of government. 

5.7“Voluntary Resignation” means the Executive’s voluntarily resignation of the Executive’s employment with the Company by delivery of the Notice of Resignation.  The “Notice of Resignation” means a written notice of resignation addressed to the Board and sent to the Company in accordance with the provisions of Section 6.4 hereof.  The Notice of Resignation shall set forth the date of resignation and state whether or not the Executive believes that the resignation is for Good Reason.  In the event that the Executive believes that the resignation is for Good Reason, the Notice of Resignation shall also set forth in reasonable detail the basis of the Executive’s belief that the Executive is resigning for Good Reason, including the elements of the definition of Good Reason that the Executive believes are applicable. 

Section 6.Miscellaneous.

6.1Indemnification; Liability Insurance.  The Company shall indemnify the Executive to the fullest extent permitted by applicable law in the event that the Executive is a party to a pending action, suit or proceeding, by reason of the fact that the Executive is or was a director, officer, employee or agent of the Company or any of its affiliates.  In addition, a directors’ and officers’ liability insurance policy (or policies) shall be kept in place, during the Employment Period and thereafter for the duration of any period in which a civil, equitable, criminal or administrative proceeding may be brought against the Executive, providing coverage to the Executive that is no less favorable to the Executive in any respect (including with respect to scope, exclusions, amounts, and deductibles) than the coverage then being provided with respect to periods after the Effective Date to any other present senior executive or director of the Company.

6.2Assignment; No Third-Party Beneficiaries.  This Employment Agreement and the rights and duties hereunder are personal to the parties hereto and shall not be assigned, delegated, transferred, pledged or sold by either party hereto without the prior written consent of the Company.  Notwithstanding the foregoing, the Company may assign this Employment Agreement to any successor to all or substantially all of the business and/or assets of the Company, provided that the Company shall require such successor to expressly assume and agree to perform this Employment Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place.  As used in this Employment Agreement, 

“Company” shall mean the Company and any successor to its business and/or assets, which assumes this Employment Agreement by operation of law or otherwise assumes this Employment Agreement and agrees to perform the duties and obligations of the Company hereunder.  Nothing in this Employment Agreement shall confer upon any Person not a party to this Employment Agreement, or the legal representatives of such Person, any rights or remedies of any nature or kind whatsoever under or by reason of this Employment Agreement, except that the personal representative of the deceased Executive may enforce the provisions hereof applicable in the event of the death of the Executive.

6.3Complete Agreement; Amendments and Waivers.  When signed by the Executive, this Employment Agreement sets forth the terms of the Executive’s employment by the Company, certain severance benefits to the Executive and the restrictive covenants made by the Executive in consideration thereof and the other terms hereof, and supersedes any and all prior representations and agreements, whether written or oral regarding the subject matter hereof (unless otherwise explicitly provided in this Employment Agreement).  This Employment Agreement can be amended only in a writing signed by the parties hereto; provided, that, the observance of any provision of the Employment Agreement may be waived in writing by the party that will lose the benefit as a result of the waiver.  The waiver by any party hereto of a breach of any provision of this Employment Agreement shall not operate or be construed as a further or continuing waiver of such breach or as a waiver of any other or subsequent breach, except as otherwise explicitly provided for in such waiver.  Except as otherwise expressly provided herein, no failure on the part of any party to exercise, and no delay in exercising, any right, power or remedy hereunder, or otherwise available in respect hereof at law or in equity, shall operate as a waiver thereof, nor shall any single or partial exercise of such right, power or remedy by such party preclude any other or further exercise thereof or the exercise of any other right, power or remedy.  

6.4Notice.  Unless otherwise provided herein, all notices, requests, demands, claims and other communications provided for under the terms of this Employment Agreement shall be in writing.  Any notice, request, demand, claim or other communication hereunder shall be sent by (i) personal delivery (including receipted courier service) or overnight delivery service, with confirmation of receipt (ii) facsimile during normal business hours, with confirmation of receipt, to the number indicated, (iii) reputable commercial overnight delivery service courier, with confirmation of receipt or (iv) registered or certified mail, return receipt requested, postage prepaid and addressed to the intended recipient as set forth below:

If to the Company:     

BakerCorp
3020 Old Ranch Parkway, Suite 220
Seal Beach, CA  90740
Attn:  Amy M. Paul, Esq.

with a copy to:        

Fried, Frank, Harris, Shriver & Jacobson LLP
One New York Plaza
New York, NY  10004
Attention:  Jeffrey Ross, Esq.
Facsimile:  212-859-4000

If to the Executive:    

Les Fry to his principal residence as reflected in the records of the Company.

with a copy to:

[•]

All such notices, requests, consents and other communications shall be deemed to have been given when received.  Either party may change its facsimile number or its address to which notices, requests, demands, claims and other communications hereunder are to be delivered by giving the other parties hereto notice in the manner then set forth.

6.5Severability.  Whenever possible, each provision or portion of any provision of this Employment Agreement will be interpreted in such manner as to be effective and valid under applicable law but the invalidity or unenforceability of any provision or portion of any provision of this Employment Agreement in any jurisdiction shall not affect the validity or enforceability of the remainder of this Employment Agreement in that jurisdiction or the validity or enforceability of this Employment Agreement, including that provision or portion of any provision, in any other jurisdiction.  In addition, should a court or arbitrator determine that any provision or portion of any provision of this Employment Agreement, including those contained in Section 4 hereof, is not reasonable or valid, either in period of time, geographical area, or otherwise, the parties hereto agree that such provision should be interpreted and enforced to the maximum extent which such court or arbitrator deems reasonable or valid.

6.6Applicable Law; Jurisdiction; Venue.  This Employment Agreement is governed by the internal laws of the state of Delaware, without giving effect to any choice of law rules that would require the application of the laws of any other jurisdiction.  Each party irrevocably submits to the non-exclusive jurisdiction of any state or federal court within the state of Delaware with respect to any cause or claim arising under or relating to this Employment Agreement.  Each party irrevocably consents to the service of process by registered mail or personal service.  Nothing in this Section 6.6 however, affects any person’s right (1) to serve process in any other manner permitted by applicable law or (2) to enforce or collect any judgment, order or injunction in any court or jurisdiction.

6.7Binding Effect.  This Employment Agreement shall inure to the benefit of, and be binding on, the successors and assigns of each of the parties, including, without limitation, the Executive’s heirs and the personal representatives of the Executive’s estate and any successor to all or substantially all of the business and/or assets of the Company.

6.8No Strict Construction; Convenience of Headings.  The language used in this Employment Agreement shall be deemed to be the language chosen by the parties hereto to express their mutual intent, and no rule of construction shall be applied to this Employment Agreement to the effect that it should be construed strictly against any party hereto.  The headings contained in this Employment Agreement are for convenience of reference only and shall not affect the meaning or interpretation of this Employment Agreement.

6.9Section 409A of the Code.  To the extent applicable, this Employment Agreement shall be interpreted, construed and operated in accordance with Section 409A of the Internal Revenue Code (the “Code”) and the Treasury Regulations and other guidance issued thereunder.  If on the date of the Executive’s separation from service (as defined in Treasury Regulation Section 1.409A-1(h)) with the Company, the Executive is a specified employee (as defined in Section 409A of the Code and Treasury Regulation §1.409A-1(i)), no payment constituting the “deferral of compensation” within the meaning of Treasury Regulation Section 1.409A-1(b) and after application of the exemptions provided in Treasury Regulation Sections 1.409A-1(b)(4) and 1.409A-1(b)(9)(iii) shall be made to the Executive at any time during the six-month period following the Executive’s separation from service, and any such amounts deferred such six months shall instead be paid in a lump sum on the first payroll payment date following expiration of such six-month period.  For purposes of conforming this Employment Agreement to Section 409A, the parties agree that any reference to termination of employment, severance from employment, resignation from employment or similar terms shall mean and be interpreted as a “separation from service” as defined in Treasury Regulation Section 1.409A-1(h).  Each payment of severance under this Employment Agreement shall be considered a separate payment for purposes of Section 409A.  Except as otherwise expressly provided herein, to the extent any expense reimbursement or the provision of any in-kind benefit under this Employment Agreement is determined to be subject to Section 409A, the amount of any such expenses eligible for reimbursement, or the provision of any in-kind benefit, in one calendar year shall not affect the expenses eligible for reimbursement in any other calendar year (except for any lifetime or other aggregate limitation applicable to medical expenses), in no event shall any expenses be reimbursed after the last day of the calendar year following the calendar 

year in which the Executive incurred such expenses, and in no event shall any right to reimbursement or the or the provision of any in-kind benefit be subject to liquidation or exchange for another benefit.

6.10Executive’s Acknowledgement.  The Executive acknowledges (i) that the Executive has consulted with or has had the opportunity to consult with independent counsel of his own choice concerning this Employment Agreement and has been advised to do so by the Company, and (ii) that the Executive has read and understands this Employment Agreement, is fully aware of its legal effect, and has entered into it freely, based on the Executive’s own judgment.

6.11Counterparts.  A facsimile copy of this Employment Agreement (or a counterpart thereof) shall be treated as an original.  This Employment Agreement may be executed in counterparts, a complete set of which shall be treated as a single document.

[signature page follows]

        

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

BAKERCORP

	
		
	By:
	 

	Name:
	 

	Title:
	 

	
	
	 

	Les Fry

EXHIBIT A
GENERAL RELEASE
This General Release (this “Release”) is made and entered into by and between Les Fry (“Executive”) and BakerCorp (the “Company”).
WHEREAS, Executive has terminated employment with the Company on _________;
WHEREAS, the Company and Executive are parties to an Employment Agreement dated September 17, 2015 (the “Employment Agreement”) (capitalized terms not otherwise defined in this Release shall have the meaning assigned to such term in the Employment Agreement);
NOW, THEREFORE, in consideration of the promises and agreements set forth below, Executive and the Company agree as follows:
		
	1.
	Consideration.  As partial consideration for entering into this Release, Executive is to receive the Severance Benefits in accordance with and subject to the terms and conditions of the Employment Agreement.  Executive also acknowledges that Executive’s entry into the Employment Agreement constitutes good and valuable and otherwise sufficient consideration for Executive’s execution and delivery to the Company of this Release.  Executive is advised to consult with an attorney before signing this Release.

		
	2.
	Released Parties.  The term “Released Parties,” as used in this Release, shall mean the Company Group and any of its past or present employees, administrators, agents, officials, officers, directors, shareholders, divisions, parents, subsidiaries, successors, affiliates, general partners, limited partners, consultants, employee benefit plans (and their sponsors, fiduciaries, or administrators), insurers, accountants and attorneys.

		
	3.
	General Release.  In consideration for the benefits described in Paragraph 1, Executive, on behalf of himself and his agents, representatives, attorneys, assigns, heirs, executors, and administrators, fully releases each of the Released Parties from any and all liability, claims, demands, actions, causes of action, suits, grievances, debts, sums of money, agreements, promises, damages, back and front pay, costs, expenses, attorneys’ fees, and remedies of any type, regarding any act or failure to act that occurred up to and including the date on which Executive signs this Release, including, without limitation, any claims arising or that arose or may have arisen out of or in connection with Executive’s employment or separation of employment from the Company, and including but not limited to:

all claims, actions or liability under (1) Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Civil Rights Act of 1866 (42 U.S.C. §1981), the Age Discrimination in Employment Act (“ADEA”), the Americans with Disabilities Act, the Fair Labor Standards Act, the National Labor Relations Act, the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), the Family and Medical Leave Act; (2) any other federal, state, or local statute, ordinance, regulation or constitution regarding employment, compensation, unpaid wages, employee benefits, termination of employment, or discrimination in employment; and (3) the common law of any state relating to employment contracts, wrongful discharge, defamation, or any other matter.
Notwithstanding the foregoing, this Release shall not be deemed to be a waiver of any claim Executive may have to the extent (and only to the extent) such claim arises from (1) a breach by the Company of its obligations under the Employment Agreement to pay or provide (as applicable) the Accrued Amounts and the Severance 

Benefits; (2) any rights to indemnification by the Company or its affiliates under applicable law, by-laws, or as an insured under any director’s and officer’s liability insurance policy now or previously in force, in any event to the extent so provided, (3) with respect to Executive’s rights as a shareholder or holder of options of Parent, or (4) rights applicable to Executive under ERISA and the Consolidated Omnibus Budget Reconciliation Act under any “employee benefit plan” (as defined in ERISA) of the Company applicable to Executive.
		
	4.
	Waiver of Statutory or Common Law Limitations on Release.  On behalf of himself and his heirs, executors, legal representatives, successors and assigns, the undersigned Executive specifically waives the benefits of any statutory or common law of any state, which in effect provides that a general release does not extend to claims which the creditor does not know or suspect to exist in his favor.  It is expressly understood and agreed that the releases contained herein are intended to cover and do cover all known facts and/or claims, as well as any further facts and/or claims within the scope of such released claims not known or anticipated, but which may later develop or be discovered, including all the effects and consequences thereof.  On behalf of himself and his heirs, executors, legal representatives, successors and assigns, the undersigned Executive acknowledges that he may hereafter discover facts in addition to, or different from, those which he now believes to be true with respect to the subject matter of the Claims released herein, but agrees that the undersigned has taken that possibility into account prior to executing this Release and entering into the Employment Agreement, and that the releases given herein shall be and remain in effect notwithstanding the discovery or existence of any such additional or different facts, as to which the undersigned Executive expressly assumes the risk.

		
	5.
	Non-Admission.  This Release does not constitute an admission by any of the Released Parties that any action that any of them took with respect to Executive was wrongful, unlawful or in violation of any local, state, or federal act, statute, or constitution, or susceptible of inflicting any damages or injury on Executive and the Company specifically denies any such wrongdoing or violation.

		
	6.
	Release Inadmissible as Evidence.  This Release, its execution, and its implementation may not be used as evidence, and shall not be admissible, in a subsequent proceeding of any kind, except one which either party institutes alleging a breach of this Release.

		
	7.
	Confidentiality.  Except as may be specifically required by law, Executive agrees that he will not (without the prior written consent of the Company) disclose, publish, indicate, or in any manner communicate, the terms and provisions of this Release to any other person or entity except: (a) as may be required by law; (b) to his accountant and/or financial advisor to the extent necessary to prepare his tax returns; (c) to his attorney; and (d) to his immediate family members.  Executive further agrees that prior to any such authorized disclosure, Executive will inform each such person to whom disclosure is to be made that the terms of this Release are confidential.

		
	8.
	Waiver of Monetary Damages.  Nothing in this Release shall be construed to prohibit Executive from filing a charge with, providing information to, or participating in any investigation or proceeding conducted by the EEOC or a comparable state or local government agency, though Executive acknowledges and agrees that Executive has waived the right to recover monetary damages in any charge, complaint, or lawsuit filed by Executive or by anyone else on Executive’s behalf or otherwise.  Further, nothing in this Release shall preclude Executive from responding truthfully to a valid subpoena or a request by a governmental agency in connection with any investigation it is conducting.

		
	9.
	Waiver Applicable to California Residents.  WITH RESPECT TO THE RELEASES CONTAINED HEREIN, IF THE UNDERSIGNED IS A RESIDENT OF CALIFORNIA, THE UNDERSIGNED ACKNOWLEDGES THAT HE IS FAMILIAR WITH THE PROVISIONS OF 

CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS FOLLOWS:

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”
THE UNDERSIGNED HEREBY EXPRESSLY WAIVES ANY RIGHTS THAT HE MAY HAVE UNDER SECTION 1542, AS WELL AS UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT.
		
	10.
	Entire Agreement.  This Release contains the entire agreement and understanding between the Executive and the Company concerning the matters described herein.  It supersedes all prior agreements, discussions, negotiations, understandings and proposals of the parties with respect to such matters.  The terms of this Release cannot be changed except in a subsequent document signed by both parties.

		
	11.
	Breach of Agreement.  Executive agrees that in the event the Company is required to commence an action in law or equity to enforce its rights under any provision of this Release and prevails, Executive shall be liable for the reasonable attorneys’ fees, costs and related expenses incurred by the Company in connection with such action (other than with respect to any claim under the ADEA).

		
	12.
	Severability.  The provisions of this Release shall be severable and the invalidity of any provision shall not affect the validity of the other provisions.

		
	13.
	ADEA Waiver.  Executive acknowledges that he has been advised in writing to consult with an attorney prior to executing this Release, which contains releases and waivers.  Executive understands that he may take a period of 21 days (or 45 days if this Release is being provided to Executive in connection with an exit incentive or other employment termination program offered to a group or class of employees) within which to consider this Release.  Executive understands that he may revoke this Release during the seven days following the execution of this Release and that this Release will not become effective until that seven-day revocation period has expired.  In order to revoke this Release, Executive must sign and send a written notice to the Company addressed to the Chief Executive Officer, which shall be effective only if the Company receives it no later than seven days after Executive signs this Release.  If Executive revokes this Release, he will not be entitled to any of the money, benefits or other consideration provided to his as a result of this Release (including, without limitation, the Severance Benefits).

		
	14.
	Knowing and Voluntary Waiver.  Executive acknowledges that: (a) he has carefully read this Release and fully understands its meaning and effect; (b) he had a full and adequate opportunity and reasonable time period to review this Release with an attorney of his choosing before he signed it; (c) he was not coerced into signing this Release; (d) he agrees to all the terms of this Release and is entering into this Release knowingly, voluntarily, and with full knowledge of its significance; and (e) the only consideration for his signing the Release are the terms stated herein, and no other promises or representations of any kind have been made by any person or entity to cause him to sign this Release.

		
	15.
	Governing Law.  This Release shall be governed by the internal laws of the State of Delaware, without regard to its conflict of laws principles.  Each party to this Release irrevocably submits to the non-exclusive jurisdiction of any state or federal court within the state of Delaware with respect to any cause or claim arising under or relating to this Release.  Each party to this Release irrevocably consents to the service of process by registered mail or personal service.

		
	16.
	Miscellaneous.  A facsimile copy of this Release (or a counterpart thereof) shall be treated as an original.

		
	17.
	Counterparts.  This Release may be executed in counterparts and will be as fully binding as if signed in one entire agreement.

	
					
	 
	 
	 
	BAKERCORP

	 
	 
	 
	By:
	 

	Les Fry
	 
	 
	 

	 
	 
	 
	 
	 

	Dated:
	 
	 
	Dated:

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