Document:

Exhibit 10.1

 

FIFTH AMENDMENT TO LEASE

This Fifth Amendment to Office Building Lease, effective 9 November, 2017, is entered into between 6797 Winchester, LLC, a Delaware limited liability company, successor in interest to Borealis Medical, LLC, ("Landlord"), and Encision, Inc., a Colorado Corporation ("Tenant"),  and is made with reference to the following facts:

A. Landlord's predecessor in interest and Tenant entered into a Lease Agreement dated June 3, 2004, as amended on November 20, 2006, March 29, 2009, May 18, 2011 and November 7, 2013 (collectively the "Lease") for commercial real property located at 6797 Winchester Circle, Boulder Colorado, 80301, the present square footage of which is 29,000 rentable square feet, commonly referred to as Suites A. B, C, and D ("Premises").

B.  Landlord and Tenet wish to amend the Lease as set forth below.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby  acknowledged, Landlord and Tenant agree that the Lease is amended as follows:

1. Term. Landlord and Tenant agree to extend the term of the Lease for an additional five (5) years commencing on August 1, 2019 and ending on July 31, 2024 ("Extended Term"), Pursuant to the Fourth Amendment, Tenant received two (2) Renewal Periods, one of which is being used for this Extended Term. Tenant retains one (1) remaining Renewal Period of five (5) years, which remains subject to the terms and conditions stated in the Fourth Amendment

2.  Rent.  Minimum Rent during the Extended Term shall be as follows:

	
Year

	 	
Base Rent Rate

(not including NNN and utilities)

	 	 	
Monthly Base Rent

(not including NNN and utilities)

	 
	
Year 1 (August 1, 2019 – July 31, 2020)

	 	
 

	
$11.50

	 	 	
 

	
$27,791.67

	 
	
Year 2 (August 1, 2020 – July 31, 2021)

	 	
 

	
$12.00

	 	 	
 

	
$29,000.00

	 
	
Year 3 (August 1, 2021 – July 31, 2022)

	 	
 

	
$12.50

	 	 	
 

	
$30,208.33

	 
	
Year 4 (August 1, 2022 – July 31, 2023)

	 	
 

	
$13.00

	 	 	
 

	
$31,416.67

	 
	
Year 5 (August 1, 2023 – July 31, 2024)

	 	
 

	
$13.50

	 	 	
 

	
$32,625.00

	 

3.   Base  Rent Abatement. Upon commencement of  the Extended Term, Base Rent shall  be abated for two (2) months  for  a  total  abatement amount of $55,583.33. Tenant remains obligated to pay NNN and utility expenses during the abatement period.

4.   Right of First Refusal.  Tenant's First Right, which was scheduled to automatically terminate as of July 31, 2019 pursuant to Section 8 of the Fourth Amendment, is reinstated for the Extended Term, subject to the terms and conditions as stated in Section 8 of the Fourth Amendment, and shall now automatically terminate on the earlier of either the last day of the Extended Term (July 31, 2017) or Lease termination.

5.  Tenant Improvements. Except as provided below, the Premises is leased in "AS-IS" condition.

	
A.

	
Improvement Allowance. Landlord shall provide a tenant improvement allowance of $5.00 per rentable square foot (a total of $145,000.00) ('TI Allowance"). Any costs in excess of the TI Allowance shall be the sole responsibility of Tenant. The parties acknowledge that any pre-existing un·used allowance funds have expired. Tenant is responsible for all costs associated with the design and construction of permanent improvements to the Premises (and Property to the extent required by the City of Boulder,as described in subsection (C) below), and may use the TI Allowance towards payment of these hard and soft costs. Tenant shall provide Landlord with final invoices, lien releases and certificates of occupancy (if required) or other City of Boulder sign offs on a percent completion basis. Provided that no default by Tenant then exists, Landlord shall have thirty (30) days after receipt thereof to remit portions of the TI Allowance owed to Tenant, expect to the extant Landlord reasonably disputes the payment. Any unused portion of the TI Allowance will expire January 1, 2020.

	
B.

	
Construction Process; Design Costs. The terms and conditions stated in subsections (c) and (d) of Section 6 of Amendment Four shall govern use of TI allowance funds and construction, except as expressly modified by this Fifth Amendment. Landlord shall approve the Tenant plans and contractor prior to initiation of construction, work and otherwise subject to the terms for the Lease. In addition to oversight and approval rights, Landlord is entitled to conduct at its own expense, an independent structural review prior to commencement of demolition or construction work and take any additional steps or require reasonable modification of Tenant's  proposed plans to ensure that any proposed Tenant Improvement will not jeopardize the structural integrity of the Premises and Building. To the extent Landlord renders services on Tenant's behalf, Landlord shall charge a market rate-construction management fee for any services rendered. The preliminary revised space plan, with one revision, shall be provided at Landlord's sole cost and expense to Tenant (not as part of the TI Allowance).

	
C.

	
City of Boulder Upgrade. Should Tenant's tenant improvement work trigger the City of Boulder to require additional work to the Premises or Property, as a condition to issuance of any permit Tenant must obtain to complete its tenant improvements, Tenant shall be solely responsible for the cost of such work regardless of whether such work relates to the scope of tenant improvement work contemplated by Tenant. Tenant shall inform Landlord of any additional required work the City of Boulder requires and shall coordinate the completion of such additional work with Landlord.

6.  Operating Expenses. Any cap on any component of the Operating Expenses established in Section 5 of the Fourth Amendment is lifted. The 2017 annual Operating Expenses are estimated to be $4.75 per rentable square foot, subject to change based upon actual cost.

7.  Successor in Interest.  Tenant acknowledges that the Landlord is the successor in interest to Borealis Medical, LLC and attorns to it as its Landlord.

8.  Defined Terms. Unless otherwise defined in this Fifth Amendment, initially capitalized terms used herein have the same meaning given them in the Lease.

9.  Effect of the Fifth Amendment.  Except as expressly modified herein, the Lease is unmodified, is hereby ratified and affirmed, will remain in full force and effect in accordance with its terms and will apply to the Premises. This Lease shall be binding upon the parties. If there is any inconsistency between the terms of the Lease and the terms of this Fifth Amendment, the provisions of this Fifth Amendment will govern and control the rights and obligations of Landlord and Tenant.

10.  Broker.  Jason P. Kruse of the Colorado Group, Inc. is acting as Landlord's broker. Eric Brynestad of JLL is acting as Tenant's broker and shall be compensated a fee of three percent (3%) of the net lease value for any term (limited to five years) beyond July 31, 2019 (approximately $70,000.00). Tenant shall be responsible for any commissions to their agent in excess of the three percent Landlord and Tenant each warrant and represent to the other that neither party has employed any other real estate broker or agent in connection with this Lease. Each party agrees to indemnify and hold the other harmless from any loss or cost suffered or incurred by it as a result of the other's representation herein being inaccurate.

11. Counterparts, Facsimile Signature. This Fifth Amendment may be executed in one or more counterparts, each of which will be deemed to be an original and all such counterparts taken together will constitute one and the same instrument. This Fifth Amendment may be executed and delivered by one party to the other by facsimile  or e-mail (PDF) transmission, and counterparts executed and delivered in such manner will be fully binding and enforceable to the same effect as if an original had been executed and delivered instead.

	
 

 

 

 

 

 

 

 

 

 

 

Date:  11-14-17

	 	
LANDLORD:

 

 

6797 Winchester, L.LC

A Delaware Limited Liability Company

 

By: GOTTSTEIN PROPERTIES, LLC

An Alaska Limited Liability Company 

Its Sole Member

 

By:  /a/ Robert A. Mintz

Robert A. Mintz

Its:  Authorized Agent

 

	 	 	 
	
 

 

 

 

 

 

 

Date:  9 Nov 2017

	 	
TENANT:

 

ENCISION, INC.

A Colorado Corporation

 

 

By:  /s/ Gregory J. Trudel

Gregory J. Trudel

President and CEOExhibit 10.1

 

EXECUTION COPY

 

ASSET PURCHASE AGREEMENT

 

ASSET PURCHASE AGREEMENT
(the “Agreement”) made as of February12,  2018, by and between and Pledge Petroleum Corp., a Delaware corporation (the
“Seller”) and Norma Investments Limited, an entity organized under the laws of the British Virgin Islands (the “Buyer”).

 

WITNESSETH:

 

WHEREAS, Seller
is engaged in the business of applying plasma pulse technology to enhance the recovery of oil from wells (the “Business”),
and the Buyer desires to purchase from the Seller, and Seller desires to sell to the Buyer, all of the Seller’s business,
assets and properties used, or held or developed for use, in the Business, upon the terms and conditions hereinafter set forth
herein.

 

NOW, THEREFORE,
in consideration of the mutual covenants and promises herein contained and upon the terms and conditions hereinafter set forth,
the parties hereto, intending to be legally bound, agree as follows:

 

1.      PURCHASE
AND SALE OF THE ASSETS. Upon the terms and conditions herein contained, at the Closing (as hereinafter defined), the Seller
hereby sells, transfers, assigns, conveys and delivers to the Buyer and the Buyer hereby purchases from the Seller, all rights,
title and interest of the Seller in and to all of the Seller’s assets and properties used, or held or developed for use,
in the Business (the “Purchased Assets”), including, without limitation, the assets set forth on Schedule A
hereto (the assets on Schedule A, the “Assets”), free and clear of all liens, claims, pledges, mortgages, restrictions,
obligations, security interests and encumbrances of any kind, nature and description (“Liens”). The Buyer is not assuming
any liabilities in connection with the purchase of the Purchased Assets and the Seller shall timely discharge and satisfy all such
liabilities when due.

 

		2.	CONSIDERATION. The purchase price to be paid by the Buyer to the Seller in connection
with the purchase and sale of the Purchased Assets (the “Purchase Price”) shall be Six Hundred Fifty Thousand Dollars
($650,000), which amount the Seller hereby instructs the Buyer to pay to Ervington Investments Limited, an entity organized under
the laws of the Republic of Cyprus (“Ervington”) as part of the consideration payable by the Seller to Ervington pursuant
that certain Share Repurchase Agreement between Ervington and the Seller dated as of the date hereof (the “Share Repurchase
Agreement”). The Seller hereby agrees that the Buyer shall not make any payment to the Seller in connection with the Closing,
but shall be deemed to have paid the Purchase Price at the Closing by operation of the payment instruction in the previous sentence
regardless of whether such payment is actually made by the Buyer to Ervington pursuant to such instruction and neither the Buyer
nor any of its affiliates (including Ervington) shall have any liability to make any payment to the Seller in connection with the
purchase and sale of the Purchase Assets at the Closing or otherwise

 

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		3.	CLOSING. This closing of the transactions contemplated by this Agreement (the “Closing”)
shall be consummated without further action of the Parties hereto at 10:00 a.m. New York City time on the day following the date
of the Special Meeting of Stockholders of the Seller (the “Company Stockholder Meeting”) or any adjournment thereof
at which the holders of a majority of the outstanding voting securities of the Seller other than those securities held by Ervington
approve the sale of the Purchased Assets to the Buyer pursuant to the terms hereof (the “Majority of the Minority Vote”).
Contemporaneously with the execution and delivery hereof, the parties hereto and Ervington have placed the following in escrow
with Delaware Trust Company, as escrow agent (the “Escrow Agent”) pursuant to an escrow agreement among the Escrow
Agent, the Seller and Ervington (the “Escrow Agreement”): (i) the share certificates evidencing the 3,137,500 shares
of Series A-1 convertible preferred stock, the 4,500,000 shares of Series C preferred stock and the 64,302,467 shares of common
stock of the Seller owned by Ervington (collectively, the “Shares”) together with stock powers executed by Ervington
transferring ownership of such certificates to the Seller; (ii) a Bill of Sale transferring the Purchased Assets to Buyer, (iii)
an assignment of patents agreement transferring to the Buyer all of Seller’s interest in patent number 2017-04545; (iv) the
written resignation of Ivan Persiyanov as a director of the Seller and all of its subsidiaries and as an officer of the Seller
and its subsidiaries, effective by its terms as of the Closing; and (v) $7,850,000 in immediately available funds from Seller (representing
the purchase price due to Ervington under the Share Repurchase Agreement less the Purchase Price due hereunder for the Purchased
Assets). Following receipt of the Majority of the Minority Vote, the Buyer shall cause Ervington, and the Seller shall, promptly
provide a Joint Written Instruction (as defined in the Escrow Agreement) instructing the Escrow Agent to release the Escrow Fund
and the Escrow Documents (each as defined in the Escrow Agreement) pursuant to Section 4(b)(ii) of the Escrow Agreement and, upon
receipt of such written evidence and pursuant to the terms of the Escrow Agreement, the Escrow Agent shall deliver the above referenced
items as follows: (a) the items referenced in clauses (i) and (iv) of this Section 3 shall be released from escrow and delivered
to the Seller and (b) the items referenced in clauses (ii), (iii) and (v) of this Section 3 shall be released from escrow and delivered
to Ervington. This Agreement shall automatically terminate and be of no further force and effect without any action on the part
of the parties hereto if the Majority of the Minority Vote is not obtained by May 13, 2018; provided, that such date shall automatically
be extended to June 27, 2018 without any action on the part of either party hereto if the SEC (as defined below) notifies the Seller
that it will be reviewing and/or providing comments on the Company Proxy Statement (as defined below) and the parties hereto shall
promptly notify the Escrow Agent in writing of such automatic extension; provided, further, that Article 8 shall survive any such
termination and that no such termination shall relieve any party from any liability or damages arising out of such party’s
fraud or willful or material breach prior to such termination, in which case the non-breaching party shall be entitled to all rights
and remedies available at law or in equity. Upon the termination of this Agreement for any reason, including pursuant to the previous
sentence, pursuant to the terms of the Escrow Agreement, the items referenced in clauses (ii), (iii) and (v) of this Section 3
shall be returned to the Seller and the items referenced in clauses (i) and (iv) shall be returned to Ervington.

 

4.     SELLER
REPRESENTATIONS AND WARRANTIES. Seller hereby represents and warrants to, and agrees with, Buyer as follows:

 

4.1       Organization
and Good Standing. The Seller is a corporation duly organized, validly existing and in good standing under the laws of the
State of Delaware.

 

4.2       No Conflict.
The execution and delivery of this Agreement, and the consummation of the transactions contemplated hereby, will not result in
a breach, violation or default or give rise to an event which with the giving of notice or after the passage of time, or both,
would result in a breach, violation or default of any of the terms or provisions of the Seller's Certificate of Incorporation,
By-Laws or of any statute, indenture, mortgage, deed of trust, loan agreement or other material agreement, instrument or restriction
to which the Seller is a party or by which the Seller or its assets may be bound or affected, or any order, rule or regulation
of any court or governmental agency or body having jurisdiction over the Seller.

 

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4.3       Agreements.
The Buyer has been provided a true and complete list of all contracts, instruments, commitments and agreements, whether oral or
written, which it believes are presently in effect to which the Seller is a party or to which Seller is subject and which relate
to the Assets. The Seller’s disclosure in its filings with the Securities and Exchange Commission note that on July 19, 2016,
Novas Energy Group Limited provided a notice to the Seller terminating its license with the Seller. Each such agreement is a valid
and subsisting agreement and in full force and effect, all payments due from the Seller thereunder have been made, there are no
disputes or suits or actions at law or otherwise pending or threatened thereunder, except as specifically described on Schedule
4.3, and such agreements are all of the contracts or agreements constituting part of the Purchased Assets.

 

4.4       Authority.
The Seller has full authority or capacity to execute and to perform this Agreement in accordance with its terms; the execution
and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary
action on the part of Seller and does not and will not result in a breach, violation or default or give rise to an event which,
with the giving of notice or after the passage of time, or both, would result in a breach, violation or default of any of the terms
or provisions or of the Certificate of Incorporation, bylaws, any statute, indenture, mortgage, deed of trust, loan agreement or
other material agreement, instrument or restriction to which the Seller is a party or by which the Seller or its assets may be
materially bound or affected, or any order, rule or regulation of any court or governmental agency or body having jurisdiction
over the Seller; and no further authorization or approval, whether of governmental bodies or otherwise, is necessary in order to
enable the Seller to enter into and perform the same; and this Agreement constitutes a valid and binding obligation enforceable
against the Seller in accordance with its terms.

 

4.5       Compliance
with Law. The Seller is not in violation in any material respect of any laws, governmental orders, rules or regulations, whether
federal, state or local, to which it or any of its properties are subject.

 

4.6       Litigation.
To the knowledge of the Company, there are no actions, suits, proceedings or investigations pending or, to the best of Seller's
knowledge, threatened against or affecting the Assets, business or properties of the Seller whether at law or in equity or admiralty
or before or by any federal, state, municipal or other governmental department, commission, board, agency, court or instrumentality,
domestic or foreign; nor is the Seller operating under, subject to, in violation of or in default with respect to, any judgment,
order, writ, injunction or degree of any court or federal, state, municipal or other governmental department, commission, board,
agency or instrumentality domestic or foreign. To the knowledge of the Company, no inquiries have been made by any governmental
agency relating to the Seller which might form the basis of any such action, suit, proceeding or investigation, or which might
require the Seller to undertake a course of action which would involve any expense.

 

4.7       Taxes.
The Seller has filed, or caused to be filed, with all appropriate governmental agencies all required tax and information returns
and have paid, caused to be paid or accrued all taxes (including, without limitation, all income, franchise, sales, excise and
use taxes), assessments, charges, penalties and interest shown to be due and payable. The Seller has no liability, contingent or
otherwise, for any taxes, assessments, charges, penalties or interest, other than amounts adequately reserved for. The Seller has
not received directly or indirectly notice of, nor is it otherwise aware of an audit or examination; the Seller is not a party
directly or indirectly to any action or proceeding by any governmental authority for assessment or collection of taxes, charges,
penalties or interest; nor has any claim for assessment and collection been asserted against the Seller directly or indirectly;
nor has the Seller executed a waiver of any statute of limitations with respect thereto. The Seller has paid, or caused to be paid,
or adequately reserved for, all applicable corporate franchise taxes, unemployment taxes, payroll taxes, social security taxes,
occupation taxes, ad valorem taxes, property taxes, excise taxes and imposts, sales and use taxes, and all other taxes of every
kind, character or description required to be paid to the date hereof, and have received no notices and are not otherwise aware,
of any deficiencies, adjustments or changes in assessments with respect to any such taxes. The Seller has duly filed, or caused
to be filed, all reports or returns relating to or covering any such taxes or other charges which are due or required to be filed
at the date hereof and no extensions of time are in effect for the assessment of deficiencies for such taxes in respect of any
fiscal period.

 

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4.8       Title
to Assets. The Seller has good and marketable title to the Purchased Assets, free and clear of all Liens. Except for cash,
cash equivalents and marketable securities, (i) to the knowledge of the Company, the Assets comprise all the assets, properties,
business, goodwill and rights of every kind and description used, held or developed for use in, or useful or necessary to, the
conduct of the Business, and (ii) there are no assets, properties, business, goodwill, rights or services used in the conduct of
the Business that are owned by any person or entity other than the Seller. The Seller has full right to transfer the Purchased
Assets. The Purchased Assets are being sold as is and the Seller makes no express or implied warranties of merchantability or fitness
for a particular purpose.

 

4.9       Proxy
Statement. None of the information included or incorporated by reference in the Company Proxy Statement (as defined below)
will, at the date it is first mailed to the Seller’s stockholders or at the time of the Company Stockholders Meeting or at
the time of any amendment or supplement thereof, contain any untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not
misleading.

 

4.10      Brokers
or Finders. No broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission
in connection with the sale of the Purchased Assets to Buyer based upon arrangements made by or on behalf of Seller.

 

5.     BUYER REPRESENTATIONS
AND WARRANTIES. Buyer hereby represents and warrants to, and agrees with, Seller as follows:

 

5.1       Acknowledgement.
The Seller has made no representations or warranties as to the Assets of the Seller, except as specifically set forth in this Agreement.

 

5.2       Authority.
The Buyer has full authority or capacity to execute and to perform this Agreement in accordance with its terms; the execution and
delivery of this Agreement and the consummation of the transactions contemplated hereby does not and will not result in a breach,
violation or default or give rise to an event which, with the giving of notice or after the passage of time, or both, would result
in a breach, violation or default of any of the terms or provisions or of the Articles of Organization, Operating Agreement, any
statute, indenture, mortgage, deed of trust, loan agreement or other material agreement, instrument or restriction to which the
Buyer is a party or by which the Buyer or its assets may be materially bound or affected, or any order, rule or regulation of any
court or governmental agency or body having jurisdiction over the Buyer; and no further authorization or approval, whether of governmental
bodies or otherwise, is necessary in order to enable the Buyer to enter into and perform the same; and this Agreement constitutes
a valid and binding obligation enforceable against the Buyer in accordance with its terms.

 

5.3       Access
To Data. The Buyer has had full access to all pertinent data and information regarding the Seller’s plasma pulse technology
business operations and, as such, has received all the information it considers necessary or appropriate for deciding whether to
purchase the Purchased Assets.

 

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5.4       Brokers
or Finders. No broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission
in connection with the sale of the Purchased Assets to Buyer based upon arrangements made by or on behalf of Buyer.

 

5.5.      Notice
of Termination. The Buyer acknowledges that Novas Energy Group Limited has sent a notice of termination to the Seller with
respect to its license agreement with the Seller and that the Seller may not have any rights to transfer under such license.

 

6.      INDEMNIFICATION.
Seller shall indemnify and hold harmless Buyer, Ervington and their respective officers, directors and stockholders (each an “Indemnified
Party”), from and against any and all demands, claims, actions or causes of action, judgments, assessments, losses, liabilities,
damages or penalties and reasonable attorneys' fees and related disbursements from creditors or shareholders of the Seller suffered
by such Indemnified Party incident to, resulting from or arising out of the preparation or performance under this Agreement or
incident to any claims, actions or liabilities arising as a result of the conduct of the Business by the Seller.

 

7.      COVENANTS.

 

7.1      Restrictive
Covenants.

 

		(a)	Confidentiality. From and after the date hereof, the Seller will, and will cause its affiliates
to, refrain from using or disclosing, and will take all commercially reasonable steps to prevent unauthorized use or disclosure
of, any Confidential Information. In the event that a Seller reasonably believes after consultation with counsel that such Seller
or affiliate is required by applicable law to disclose any Confidential Information, such Seller or affiliate may disclose only
such Confidential Information as may be legally required, provided that it (i) provides the Buyer with prompt notice before such
disclosure so that the Buyer may attempt to obtain a protective order or other assurance that confidential treatment will be accorded
to such Confidential Information and (ii) cooperates with the Buyer in attempting to obtain such order or assurance. “Confidential
Information” means all information of a confidential or proprietary nature (whether or not specifically labeled or identified
as “confidential”), in any form or medium, of the Company related to the Business or its customers, suppliers, distributors
or other business relations, including all information concerning finances, customer information, supplier information, products,
services, prices, organizational structure and internal practices, forecasts, sales and other financial results, records and budgets,
and business, marketing, development, sales and other commercial strategies, unpatented inventions, ideas, methods and discoveries,
trade secrets, know-how, unpublished patent applications and other confidential intellectual property, designs, specifications,
documentation, components, source code, object code, schematics, drawings, protocols and processes.

 

		(b)	Non-Competition. The Seller covenants and agrees that during the period beginning on the
date hereof and ending upon the fifth (5th) anniversary of such date (the “Term”) the Seller and its affiliates will
not, directly or indirectly, engage or participate in any manner (as an owner, equity holder, financing source, director, manager,
officer, employee, agent, representative, consultant, service provider or otherwise) in any business that is or may reasonably
be considered to be competitive with the Business or any presently contemplated expansions or extensions thereof, anywhere in the
world.

 

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		(c)	Non-Disparagement. Each party hereby covenants and agrees that during the Term neither it
nor its affiliates will, directly or indirectly, make any derogatory or disparaging statement or communication regarding the other
party or any of the other party’s affiliates or the Business or any of their respective employees.

 

		(d)	Blue-Pencil. If any court of competent jurisdiction shall at any time deem the term of any
particular restrictive covenant contained in this Section 7.1 too lengthy, the geographic area covered too extensive or the scope
too broad, the other provisions of this Section 7.1 shall nevertheless stand, the term shall be deemed to be the longest period
permissible by law under the circumstances, the geographic area covered shall be deemed to comprise the largest territory permissible
by law under the circumstances and the scope shall be as broad as permissible by law under the circumstances. The court in each
case shall reduce the term, geographic area and or scope covered to permissible duration, size or breadth.

 

		(e)	Acknowledgements; Remedies. The Seller acknowledges and agrees that (i) the covenants and
agreements set forth in this Section 7.1 were a material inducement to the Buyer to enter into this Agreement and to perform its
obligations hereunder, (ii) the Buyer and its stakeholders would not obtain the benefit of the bargain set forth in this Agreement
as specifically negotiated by the parties hereto if the Seller or any of their respective affiliates breached the provisions of
this Section 7.1, (iii) any breach of the provisions of this Section 7.1 by the Seller or any of its respective affiliates would
result in a significant loss of goodwill by the Buyer, (iv) the consideration paid by the Buyer to the Seller hereunder is sufficient
consideration to make the covenants and agreements set forth herein enforceable, (v) the length of time, scope and geographic coverage
of the covenants set forth in this Section 7.1 is reasonable given the benefits the Seller will directly or indirectly receive
hereunder, (vi) the Seller is familiar with all the restrictive covenants contained in this Section 7.1 and is fully aware of its
obligations hereunder, and (vii) the Seller will not challenge the reasonableness of the time, scope, geographic coverage or other
provisions of this Section 7.1 in any proceeding, regardless of who initiates such proceeding. The Seller further acknowledges
and agrees that irreparable injury will result to the Buyer if the Seller or any of its affiliates breaches any of the terms of
this Section 7.1, and that in the event of an actual or threatened breach by the Seller or any of its affiliates of any of the
provisions contained in this Section 7.1, the Buyer will have no adequate remedy at law. The Seller accordingly agrees that in
the event of any actual or threatened breach by the Seller or any of its affiliates of any of the provisions contained in this
Section 7.1, the Buyer shall be entitled to injunctive and other equitable relief without (i) the posting of any bond or other
security, (ii) the necessity of showing actual damages and (iii) the necessity of showing that monetary damages are an inadequate
remedy. Nothing contained herein shall be construed as prohibiting the Buyer from pursuing any other remedies available to it for
such breach or threatened breach, including the recovery of any damages that it is able to prove. The Seller shall cause its affiliates
to comply with this Section 7.1, and shall be liable for any breach by any of its affiliates of this Section 7.1. In the event
of a breach or violation by the Seller or any of its affiliates of this Section 7.1, the Term shall be extended by a period of
time equal to the period of time during which such person or entity violates the terms of this Section 7.1.

 

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7.2       Transfer
Taxes. All transfer, documentary, sales, use, registration, stamp and other taxes and fees (including any penalties and interest
thereon) incurred in connection with the transactions contemplated by this Agreement (together, “Transfer Taxes”)
shall be paid by the Seller when due, and the Seller shall, at its expense, file all necessary tax returns and other documentation
with respect to all such Transfer Taxes.

 

7.3       Publicity.
None of the Seller, the Buyer or any of their respective affiliates shall issue any press release or make any public announcement
or filing (including any filing with the U.S. Securities and Exchange Commission (the “SEC”)) concerning this Agreement
or the transactions contemplated herein without obtaining the prior written approval of the other parties hereto, which approval
will not be unreasonably withheld or delayed, unless the content of such press release, public announcement or filing is substantially
consistent in form and substance with the disclosures set forth in the preliminary Company Proxy Statement (as defined below) as
initially filed with the SEC or as subsequently approved by the Buyer; provided that the party intending to make such release shall
use its commercially reasonable efforts to consult with the other party with respect to the timing and content thereof.

 

7.4      Proxy
Statement; Company Stockholders Meeting.

 

		(a)	On the date hereof, the Seller filed the preliminary proxy statement in connection with the transactions
contemplated hereby (the “Company Proxy Statement”) with the SEC. The Seller shall not file any amendment or supplement
to the Company Proxy Statement without providing the Buyer a reasonable opportunity to review and comment thereon (which comments
shall be reasonably considered by the Seller). Each of the Seller and the Buyer shall use its reasonable best efforts to resolve,
and each party agrees to consult and cooperate with the other parties in resolving, all SEC comments with respect to the Company
Proxy Statement as promptly as practicable after receipt thereof and to cause the Company Proxy Statement in definitive form to
be cleared by the SEC and mailed or made available to the Seller’s shareholders as promptly as reasonably practicable following
filing with the SEC. The Seller agrees to consult with the Buyer (and reasonably consider any comments provided by the Buyer) prior
to responding to SEC comments with respect to the Company Proxy Statement and, to the extent reasonably practicable, permit the
Buyer and its outside counsel to participate in all meetings, telephone conferences and other substantive communications with the
SEC relating to the Company Proxy Statement. Each of the Seller and the Buyer agrees to correct any information provided by it
for use in the Company Proxy Statement which shall have become false or misleading and the Seller shall promptly, to the extent
required by applicable law, prepare and mail or make available to its stockholders an amendment or supplement setting forth such
correction. The Seller shall as soon as reasonably practicable (i) notify the Buyer of the receipt of any comments from the SEC
with respect to the Company Proxy Statement and any request by the SEC for any amendment to the Company Proxy Statement or for
additional information and (ii) provide the Buyer with copies of all written correspondence between the Seller and its representatives,
on the one hand, and the SEC, on the other hand, with respect to the Company Proxy Statement or the transactions contemplated hereby.

 

    	 	7	 

     

    

 

		(b)	The Seller shall, as soon as practicable following the date on which the Seller is informed that
the SEC has no further comments on the preliminary Company Proxy Statement, duly set a record date for, call, give notice of, convene
and hold the Company Stockholders Meeting. The Company shall not make any change to the recommendation by the Special Committee
of the Company’s Board of Directors of the transactions contemplated hereby and use its reasonable best efforts to (i) solicit
from its stockholders proxies in favor of the adoption of this Agreement and the transactions contemplated by this Agreement, and
(ii) take all other action necessary or advisable to secure the Majority of the Minority Vote. Promptly following the filing of
the Company Proxy Statement in definitive form, the Buyer shall deliver to the Company the executed proxy of Ervington voting all
of the Shares at the Company Stockholders Meeting in favor of the transactions contemplated by this Agreement in the same form
as is contained in the Company Proxy Statement, which proxy shall be deemed irrevocable and coupled with an interest until the
earlier of the Closing and the termination of this Agreement pursuant to its terms. Furthermore, the Buyer shall not take any action
with the purpose of adversely affecting the Company’s solicitation of stockholders proxies in favor of the adoption of this
Agreement and the transactions contemplated by this Agreement or securing the Majority of the Minority Vote. If, at any time following
the dissemination of the Company Proxy Statement, either the Seller or the Buyer reasonably determines in good faith (after consulting
with the other) that a quorum or the Majority of the Minority Vote is unlikely to be obtained at the Company Stockholders Meeting,
then the Seller shall have the right to adjourn or postpone the Company Stockholders Meeting from time to time; provided that no
such adjournment or postponement shall delay the Company Stockholders Meeting by more than thirty (30) days from the currently
scheduled date. During any such period of adjournment or postponement, the Seller shall continue in all respects to comply with
its obligations under this ‎Section 7.4.

 

7.5      Releases.

 

		(a)	The Seller, on the Seller’s own behalf and on behalf of its heirs, successors, trustees,
executors, administrators, assigns and any other person or entity that may claim by, through or under the Seller (collectively,
the “Seller Releasing Parties”), hereby (i) irrevocably waives, releases and discharges the Buyer and its affiliates
(including Ervington) and each of their respective present and former managers, directors, officers, employees, agents and representatives
(collectively, the “Buyer Released Parties”) from any and all liabilities of any kind or nature whatsoever in
respect of any cause, matter or thing relating to any of the Buyer Released Parties occurring or arising on or prior to the date
of this Agreement, except for any rights or obligations under this Agreement or the Stock Purchase Agreement, and (ii) agrees that
no Seller Releasing Party will bring or voluntarily participate in or assist any legal proceeding that relates to any matter released
pursuant to clause (i) of this Section 7.4(a).

 

    	 	8	 

     

    

 

		(b)	The Buyer, on the Buyer’s own behalf and on behalf of its heirs, successors, trustees, executors,
administrators, assigns and any other person or entity that may claim by, through or under the Buyer (collectively, the “Buyer
Releasing Parties”), hereby (i) irrevocably waives, releases and discharges the Seller and its affiliates and each of
their respective present and former managers, directors, officers, employees, agents and representatives (collectively, the “Seller
Released Parties”) from any and all liabilities of any kind or nature whatsoever in respect of any cause, matter or thing
relating to any of the Seller Released Parties occurring or arising on or prior to the date of this Agreement, except for any rights
or obligations under this Agreement or the Stock Purchase Agreement, and (ii) agrees that no Buyer Releasing Party will bring or
voluntarily participate in or assist any legal proceeding that relates to any matter released pursuant to clause (i) of this Section
7.4(b).

 

8.      MISCELLANEOUS.

 

8.1       Binding
Effect. This Agreement shall insure to the benefit of, and shall be binding upon, the parties hereto and their respective successors
and permitted assigns. Except as otherwise set forth herein, this Agreement may not be assigned by any party hereto without the
prior written consent of the parties hereto. Except as otherwise set forth herein, nothing in this Agreement, expressed or implied,
is intended to confer on any person other than the parties hereto or their respective successors and permitted assigns any rights,
remedies, obligations or liabilities under or by reason of this Agreement.

 

8.2       Notices.
All notices, requests, demands and other communications which are required to be or may be given under this Agreement shall be
in writing and shall be deemed to have been duly given when delivered in person, or transmitted by telecopy or telex, or upon receipt
after dispatch by certified or registered first class mail, postage prepaid, return receipt requested, to the party to whom the
same is so given or made, at the following addresses (or such others as shall be provided in writing hereinafter):

 

		(a)	If to the Seller, to:

 

Pledge Petroleum Corp.

1811 North Freeway, Suite 513

Houston, Texas 77060

Attention: John Zotos

Email: zotozulu@mac.com

	
         

         
	
         

        With a copy to:

	 	 
	 	Leslie Marlow
	 	Gracin & Marlow, LLP
	 	405 Lexington Avenue, 26th Floor
	 	New York, New York 10174
	 	Facsimile: (212) 208-4657
	 	Email: lmarlow@gracinmarlow.com

        

 

    	 	9	 

     

    

 

		(b)	If to the Buyer, to:

 

Norma Investments Limited

Coastal Building

Wickhams
Cay II, Road Town, 2221

Tortola,
British Virgin Islands

 

8.3       Entire
Agreement. This Agreement constitutes the entire agreement and supersedes all prior agreements and understandings, oral and
written, between the parties hereto with respect to the subject matter hereof.

 

8.4       Further
Assurances. After the Closing, at the request of either party, the other party shall execute, acknowledge and deliver, without
further consideration, all such further assignments, conveyances, endorsements, deeds, powers of attorney, consents and other documents
and take such other action as may be reasonably requested to consummate the transactions contemplated by the Agreement. The Seller
shall reasonably cooperate with the Buyer, at the Buyer’s request and at the Buyer’s expense, in connection with the
delivery of any of the Purchased Assets.

 

8.5       Headings.
The section and other headings contained in this Agreement are for reference purposes only and shall not be deemed to be a part
of this Agreement or to affect the meaning or interpretation of this Agreement.

 

8.6       Counterparts.
This Agreement may be executed in any number of counterparts, each of which, when executed, shall be deemed to be an original and
all of which together shall be deemed to be one and the same instrument.

 

8.7       Governing
Law; Jurisdiction. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE,
WITHOUT REGARD TO ITS RULES OF CONFLICT OF LAWS. Each of the parties hereto (i) consents to submit itself to the personal jurisdiction
of the Delaware Court of Chancery or, if such court does not have jurisdiction over a particular matter, any court of the United
States located in the State of Delaware or of any Delaware state court in the event any dispute arises out of this Agreement or
the Transactions, (ii) agrees that it will not attempt to deny or defeat such personal jurisdiction by motion or other request
for leave from any such court, (c) agrees that it will not bring any action relating to this Agreement or the Transactions in any
court other than a court of the United States located in the State of Delaware or a Delaware state court and (d) consents to service
of process in the manner provided for in Section 8.2. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER
THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING
TO THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (I) NO REPRESENTATIVE,
AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (II) EACH SUCH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS
WAIVER, (III) EACH SUCH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (IV) EACH SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

    	 	10	 

     

    

 

8.8       Severability.
If any term or provision of this Agreement shall to any extent be invalid or unenforceable, the remainder of this Agreement shall
not be affected thereby, and each term and provision of this Agreement shall be valid and enforced to the fullest extent permitted
by law.

 

8.9       Amendments.
This Agreement may not be modified or changed except by an instrument or instruments in writing executed by the parties hereto.

 

 

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be duly executed as of the date first above written.

 

	 	SELLER:
	 	 
	 	PLEDGE PETROLEUM CORP.
	 	
         

         

	 	By:	 /s/ John Zotos	 
	 	 	Name: John Zotos	 
	 	 	Title: Corporate Secretary	 
	 	 	 
	 	BUYER:	 
	 	 	 
	 	
        NORMA INVESTMENTS LIMITED 

         
	 
	 	 	 
	 	By:	/s/ Thackeray Investments Limited	 
	 	 	Name: Thackeray Investments Limited
	 	 	Title: Director	 

 

  

 

 

 

 

 

 

Signature page to Asset Purchase Agreement

 

    	 	11	 

     

    

 

Schedule A

 

 

 

Intellectual Property:

 

		1.	Patent application - PCT/US2017/04545

 

Production Tools:

 

7 oil field drilling tools

 

		1.	SH 104

		2.	SH 101

		3.	SH 102

		4.	SH 103

		5.	SH 106

		6.	SH 104

		7.	SH 107

 

2 Empty wood boxes

5 New wood boxes

 

Tool Boxes:

 

2. Stanley Tool Boxes

 

First Stanley Tool Box

 

2. Work Smart Mini-Boxes

 

		1.	Mini-Box 

		·	Electoral Tape

		·	Ziploc bag with:

		o	7 Rings (big metallic)

		o	6 Rings (big rubber)

		o	3 Rings (medium rubber)

		o	4 Rings (small rubber)

		o	1 Spoke Key

		·	550 Lubricant (1/4 lb. or 113 G)

		·	Loctite LB. 8008TM C5-A Lubricant (8 oz./226 G)

		·	4 Screws to drill pilot holes 

		o	1/16” 3/32” 7/64” 1/8”

		·	2 small black keys

		·	10 energizer battery

		·	Safety glasses

		·	One sand paper

 

 

		·	2 Ear Plugs

		·	One locked out warning sticker

 

    	 	12	 

     

    

 

		·	CHR Reamer 1/32”

		·	4 Locks with keys 

		·	Scanner Wrench 1⁄4

		·	15/16 Point Combination Wrench

 

2. Mini-Box

 

		·	Digital multi-meter cat no. 22-812

		·	Silver Conductive grease

		·	Terminal Kit (electrical connector kit)

		·	Vinyl electrical tape

		·	Color coding vinyl tape (TR005455455)

		·	Irwin tool (wire strippers)

		·	Hook-up and lead wire (RED) UL AWM 1213

		·	Tweezers

		·	TR-180B/DC/530 with rolls complaint

		·	USB to TTL5Y Header cable

		·	Amphenol 83-18p-1050 cable

		·	Connector

		·	Amphenol Head 74868 with 2 Panduits 

		·	Amphenol cable with Pomona AL-B-12 Electoral

		·	Pomona 1166-36 

		·	E2A/250 VP

		·	Small zip with 27 Panduits

 

 

		·	Acer Laptop V3-572PG-7673

		·	RU-6g Spark Gap

		·	Trash

		·	Ground Stick (serial 201-60516-3)

		·	2 Roller legs

		·	Power Butane gas 580oz./300ml. /mineral oil usp 320oz. 946mil. / Baby
oil Mili 20 oz. 591ml. 

		·	Tub

		·	2 rolls compliant cables 10A 125 V

		·	Electrical Box (plug-in)

		·	Blazer (multi-purpose tool kit)

		·	Tool box

		·	Monkey wrench

		·	Multi-plug

		·	2 capacitors

		·	Safety glasses 

		·	5 pairs of gloves

		·	2 locks (1 key)

 

    	 	13	 

     

    

 

Second Stanley Tool Box

 

 

		·	2 locks (2 keys) 

		·	Blazer multi-purpose tool kit

		·	Ground-stick 201-605-26-1

		·	Tub

		·	Power butane gas (58 oz./300 ml.)

		·	Multi-plug outlet 

2 rolls complaint cables 10 A 125 V

USB to TTL5V header cable

Amphenol 83-18p-1050 cable (orange)

Laptop V3-57ZPG-767J

SN: NXMNKAA002441141473400

 

Mech Tool Box

		·	550 Lubricant 

		·	LB 8008 lubricant 

		·	Tape Mil Kapton 

		·	Oil tolerant 

		·	Ziploc bag with

		o	One big ring (rubber)

		o	2 med rings

		o	4 small rings

		o	2 spoke key

		o	6

		·	2 Pilot drill

		·	15/16 Point combination wrench 

		·	Spanner wrench 1⁄4 

		·	2 Husky folding hex key

 

Electoral Tool Box

 

		·	Amphenol Cable 74868 (Orange)

		·	Silver conductive grease

		·	Digital multi-meter (P37772)

		·	Vinyl electrical tape

		·	Digital multi-meter (XC6013L)

		·	Irwin tool (wire strippers)

		·	Electrical connector kit

		·	2 X E 2A/250 VP

		·	Tran

		·	2 roller legs

		·	Electrical box (plug-in)

 

    	 	14	 

     

    

 

		·	Tool box

		·	Monkey wrench

		·	3 Capacitors 

		·	2 spare SG (SG 115 SG 114)

 

	Capacitor (8 boxes x 6ps
	5872	5871	5864
	5863	M1634	M1637
	586g	5856	 

 

		·	5 pcs copper/stainless electrodes

		·	Chain hoist (new)

		·	Spare SG 105

		·	Electrical cord

		·	Trans

		·	3xWIHA tools (screwdriver with chrome finish)

		·	3 cutter wheel for ridge and reed 

		·	Amphenol 83-18P-1050 cable (orange)

		·	USB to TTL5V header cable

		·	ROHS compliant 10A125V cable 

		·	3 boxes with .

		·	RYOBI 18 Drill

		·	Beam clamp 3KR11G

		·	Husky 823-112 VISE GRIP (2pcs)

		·	Drill mounted on wood with wire rod

		·	Trash bags and disinfecting wipes

		·	3 pcs pure sine wave inverter (x000J0NR57) 

 

The THIRD BOX

 

		·	Tran

		·	Coaxial cable (205-521 BK)

		·	Spinnerbait box

		o	USB to TTL5V Header cable

		o	Thermocouple fork

		o	3 connector cables

		o	2 connectors

		o	Cable with lenid FGG OB connection

		·	Pulse generator Model 9612

		·	Generator cable

		·	Amphenol 83-18p-1050 Cable (Orange)

		·	Coaxial cable RG-58BNC mole to mole black 100ft.

		o	5 pcs x 100ft.

		·	Seismic receiver (not part of transaction)

 

 

    	 	15

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