Document:

Form of Medium-Term Notes, Series K, Principal at Risk Securities Linked

 Exhibit 4.2 

[Face of Note] 

Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation
(“DTC”), to the Company or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name of Cede & Co. or in such other name as requested by an authorized representative
of DTC (and any payment is made to Cede & Co. or such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the
registered owner hereof, Cede & Co., has an interest herein. 
  

	 CUSIP NO. 94986RU66 
	
FACE AMOUNT: $                   
          

 REGISTERED NO.      

WELLS FARGO & COMPANY 

MEDIUM-TERM NOTE, SERIES K 

Due Nine Months or More From Date of Issue 

Principal at Risk Securities Linked to the S&P 500® Index 

due September 2, 2021 

WELLS FARGO & COMPANY, a corporation duly organized and existing under the laws of the State of Delaware (hereinafter
called the “Company,” which term includes any successor corporation under the Indenture hereinafter referred to), for value received, hereby promises to pay to CEDE & Co., or registered assigns, an amount equal to the
Redemption Amount (as defined below) on the Stated Maturity Date (as defined below), unless this Security is automatically called prior to the Stated Maturity Date as provided below under “Automatic Call,” and to pay interest on the Face
Amount of this Security (each, a “Coupon Payment”) from September 2, 2016 or from the most recent Coupon Payment Date (as defined below) to which a Coupon Payment has been paid or duly provided for, as the case may be, at the
rate of 5.06% per annum, payable on each Coupon Payment Date, until the earlier of (i) Stated Maturity Date and (ii) if this Security is automatically called prior to the Stated Maturity Date, the Call Settlement Date (as defined
below). Coupon Payments shall be calculated on the basis of a year of 360 days with twelve 30 day months. The Coupon Payments so payable, and punctually paid or duly provided for, on any Coupon Payment Date will, as provided in the Indenture, be
paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such Coupon Payment Date; provided that the Coupon Payment payable on the Stated Maturity
Date shall be paid to the Person to whom the Redemption Amount is paid. The “Regular Record Date” for a Coupon Payment Date shall be the date one Business Day (as defined below) prior to such Coupon Payment Date. The
“Initial Stated Maturity Date” shall be September 2, 2021. If the Final Calculation Day (as defined below) is not postponed, the Initial Stated Maturity Date will be the “Stated Maturity Date.” If the Final
Calculation Day is postponed, the “Stated Maturity Date” shall be the later of (i) the 

 
Initial Stated Maturity Date and (ii) the third Business Day after the Final Calculation Day as postponed. “Business Day” shall mean a day, other than a Saturday or Sunday,
that is neither a legal holiday nor a day on which banking institutions are authorized or required by law or regulation to close in New York, New York. 

“Face Amount” shall mean, when used with respect to this Security, the amount set forth on the face of this
Security as its “Face Amount.” 
 Any Coupon Payment not punctually paid or duly provided for will forthwith cease
to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such
Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent
with the requirements of any securities exchange on which the Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in the Indenture. 

All amounts payable on this Security shall be payable in such coin or currency of the United States of America as at the time
of payment is legal tender for payment of public and private debts. Coupon Payments on this Security will be made in immediately available funds at the office or agency of the Company maintained for that purpose in the City of Minneapolis, Minnesota
and at any other office or agency maintained by the Company for such purpose; provided, however, that, at the option of the Company, payment of any Coupon Payment may be paid by check mailed to the Person entitled thereto at such Person’s last
address as it appears in the Security Register or by wire transfer to such account as may have been designated by such Person. Payments of any Coupon Payment and the Redemption Amount or the Call Price, as applicable, on this Security at Maturity,
will be made against presentation of this Security at the office or agency of the Company maintained for that purpose in the City of Minneapolis, Minnesota and at any other office or agency maintained by the Company for such purpose. Notwithstanding
the foregoing, for so long as this Security is a Global Security registered in the name of the Depositary, any payments on this Security will be made to the Depositary by wire transfer of immediately available funds. 

Automatic Call 

If the Closing Level (as defined below) of the Index (as defined below) on any of the semi-annual Call Dates (as defined
below) beginning approximately two years after issuance, is greater than or equal to the Starting Level (as defined below), this Security will be automatically called by the Company, and on the related Call Settlement Date the Holder hereof will
receive the Call Price (as defined below) plus a final Coupon Payment. Unless the Company defaults in the payment of the Call Price plus the final Coupon Payment, this Security will cease to be outstanding on such Call Settlement Date, no additional
Coupon Payments will be payable on this Security and the Holder hereof will have no further rights under this Security after such Call Settlement Date. The Holder hereof will not receive any notice from the Company in the event this Security is
automatically called pursuant to the terms hereof. The “Call Price” is equal to the Face Amount of this Security. 

  
 2 

 Definitions Relating to Redemption Amount, the Call Price and Coupon Payments 

If this Security is not automatically called prior to the Stated Maturity Date as provided above under “Automatic
Call,” the “Redemption Amount” of this Security will equal: 
  

	 	•	 	 if the Ending Level is greater than or equal to the Threshold Level: the Face Amount; or

  

	 	•	 	 if the Ending Level is less than the Threshold Level: the Face Amount minus: 

 

							
	 	 	  Face Amount  x  	 	  Starting Level – Ending Level  	 	 
	 	 	 	Starting Level	 	 

 All calculations with respect to the Redemption Amount will be rounded to the nearest one hundred-thousandth,
with five one-millionths rounded upward (e.g., 0.000005 would be rounded to 0.00001); and the Redemption Amount will be rounded to the nearest cent, with one-half cent rounded upward. 

“Index” shall mean the S&P 500® Index. 

The “Pricing Date” is August 30, 2016. 

The “Starting Level” is 2176.12, the Closing Level of the Index on the Pricing Date. 

The “Closing Level” of the Index on any Trading Day means the official closing level of the Index reported by
the Index Sponsor on such Trading Day, as obtained by the Calculation Agent on such Trading Day from the licensed third-party market data vendor contracted by the Calculation Agent at such time; in particular, taking into account the decimal
precision and/or rounding convention employed by such third-party market data vendor on such date, subject to the provisions set forth under “Discontinuance of the Index; Alteration of Method of Calculation” and “Market Disruption
Events.” 
 The “Ending Level” will be the Closing Level of the Index on the Final Calculation Day.

 The “Threshold Level” is 1414.478, which is equal to 65% of the Starting Level. 

The “Coupon Payment Dates” shall occur semi-annually on the
2nd day of each March and September, commencing March 2017 and at maturity or earlier automatic call; provided that if a Coupon Payment Date is not a Business Day, the Coupon Payment will
be made on the next Business Day; provided further that if a Call Date is postponed, the Coupon Payment to be made on the Coupon Payment Date immediately following that Call Date will be made on the date that is three Business Days after that
Call Date as postponed. If any Coupon Payment is made on a day after the scheduled Coupon Payment Date, interest on that payment will not accrue with respect to the delay. 

  
 3 

 The “Call Dates” shall occur semi-annually on the third Business
Day prior to each Coupon Payment Date commencing September 2018 and ending March 2021. 
 The “Call Settlement
Date” for a Call Date shall be the Coupon Payment Date immediately following the applicable Call Date, as such Call Date may be postponed as provided herein. 

“Index Sponsor” shall mean S&P Dow Jones Indices LLC. 

A “Trading Day” with respect to the Index means a day, as determined by the Calculation Agent, on which
(i) the Relevant Stock Exchanges with respect to each security underlying the Index are scheduled to be open for trading for their respective regular trading sessions and (ii) each Related Futures or Options Exchange is scheduled to be
open for trading for its regular trading session. 
 The “Related Futures or Options Exchange” for the
Index means an exchange or quotation system where trading has a material effect (as determined by the Calculation Agent) on the overall market for futures or options contracts relating to the Index. 

The “Relevant Stock Exchange” for any security underlying the Index means the primary exchange or quotation
system on which such security is traded, as determined by the Calculation Agent. 
 The “Calculation Days”
shall be the Call Dates and the Final Calculation Day. If any Calculation Day is not a Trading Day, such Calculation Day will be postponed to the next succeeding Trading Day. A Calculation Day is also subject to postponement due to the occurrence of
a Market Disruption Event (as defined below). If a Market Disruption Event occurs or is continuing on a Calculation Day, such Calculation Day will be postponed to the first succeeding Trading Day on which a Market Disruption Event has not occurred
and is not continuing; however, if such first succeeding Trading Day has not occurred as of the eighth Trading Day after the originally scheduled Calculation Day, that eighth Trading Day shall be deemed to be the Calculation Day. If a Calculation
Day has been postponed eight Trading Days after the originally scheduled Calculation Day and a Market Disruption Event occurs or is continuing on such eighth Trading Day, the Calculation Agent will determine the Closing Level of the Index on such
eighth Trading Day in accordance with the formula for and method of calculating the Closing Level of the Index last in effect prior to commencement of the Market Disruption Event, using the closing price (or, with respect to any relevant security,
if a Market Disruption Event has occurred with respect to such security, its good faith estimate of the value of such security at the Scheduled Closing Time of the Relevant Stock Exchange for such security or, if earlier, the actual closing time of
the regular trading session of such Relevant Stock Exchange) on such date of each security included in the Index. As used herein, “closing price” means, with respect to any security on any date, the Relevant Stock Exchange traded or
quoted price of such security as of the Scheduled Closing Time of the Relevant Stock Exchange for such security or, if earlier, the actual closing time of the regular trading session of such Relevant Stock Exchange. 

  
 4 

 The “Final Calculation Day” is August 30, 2021, subject to
postponement as provided herein. 
 “Calculation Agent Agreement” shall mean the Calculation Agent
Agreement dated as of March 18, 2015 between the Company and the Calculation Agent, as amended from time to time. 

“Calculation Agent” shall mean the Person that has entered into the Calculation Agent Agreement with the
Company providing for, among other things, the determination of whether this Security will be automatically called prior to stated maturity, the Call Price, if any, the Redemption Amount, if any, and the Ending Level, which term shall, unless the
context otherwise requires, include its successors under such Calculation Agent Agreement. The initial Calculation Agent shall be Wells Fargo Securities, LLC. Pursuant to the Calculation Agent Agreement, the Company may appoint a different
Calculation Agent from time to time after the initial issuance of this Security without the consent of the Holder of this Security and without notifying the Holder of this Security. 

Discontinuance Of The Index; Alteration Of Method Of Calculation 

If the Index Sponsor discontinues publication of the Index, and the Index Sponsor or another entity publishes a successor or
substitute equity index that the Calculation Agent determines, in its sole discretion, to be comparable to the Index (a “Successor Equity Index”), then, upon the Calculation Agent’s notification of that determination to the
Trustee and the Company, the Calculation Agent will substitute the Successor Equity Index as calculated by the relevant Index Sponsor or any other entity and calculate the Ending Level or Closing Level on any Calculation Day as described above. Upon
any selection by the Calculation Agent of a Successor Equity Index, the Company will cause notice to be given to the Holder of this Security. 

In the event that the Index Sponsor discontinues publication of the Index prior to, and the discontinuance is continuing on, a
Calculation Day and the Calculation Agent determines that no Successor Equity Index is available at such time, the Calculation Agent will calculate a substitute Closing Level for the Index in accordance with the formula for and method of calculating
the Index last in effect prior to the discontinuance, but using only those securities that comprised the Index immediately prior to that discontinuance. If a Successor Equity Index is selected or the Calculation Agent calculates a level as a
substitute for the Index, the Successor Equity Index or level will be used as a substitute for the Index for all purposes, including the purpose of determining whether a Market Disruption Event exists. 

If on a Calculation Day the Index Sponsor fails to calculate and announce the level of the Index, the Calculation Agent will
calculate a substitute Closing Level of the Index in accordance with the formula for and method of calculating the Index last in effect prior to the failure, but using only those securities that comprised the Index immediately prior to that failure;
provided that, if a Market Disruption Event occurs or is continuing on such day, then the provisions set forth above under the definition of “Calculation Day” shall apply in lieu of the foregoing. 

  
 5 

 If at any time the Index Sponsor makes a material change in the formula for or
the method of calculating the Index, or in any other way materially modifies the Index (other than a modification prescribed in that formula or method to maintain the Index in the event of changes in constituent stock and capitalization and other
routine events), then, from and after that time, the Calculation Agent will, at the close of business in New York, New York, on each date that the Closing Level of the Index is to be calculated, calculate a substitute Closing Level of the Index in
accordance with the formula for and method of calculating the Index last in effect prior to the change, but using only those securities that comprised the Index immediately prior to that change. Accordingly, if the method of calculating the Index is
modified so that the level of the Index is a fraction or a multiple of what it would have been if it had not been modified, then the Calculation Agent will adjust the Index in order to arrive at a level of the Index as if it had not been modified.

 Market Disruption Events 

A “Market Disruption Event” means any of the following events as determined by the Calculation Agent in its
sole discretion: 
  

	 	(A)	 The occurrence or existence of a material suspension of or limitation imposed on trading by the Relevant Stock
Exchanges or otherwise relating to securities which then comprise 20% or more of the level of the Index or any Successor Equity Index at any time during the one-hour period that ends at the Close of Trading on that day, whether by reason of
movements in price exceeding limits permitted by those Relevant Stock Exchanges or otherwise. 

  

	 	(B)	 The occurrence or existence of a material suspension of or limitation imposed on trading by any Related
Futures or Options Exchange or otherwise in futures or options contracts relating to the Index or any Successor Equity Index on any Related Futures or Options Exchange at any time during the one-hour period that ends at the Close of Trading on that
day, whether by reason of movements in price exceeding limits permitted by the Related Futures or Options Exchange or otherwise. 

  

	 	(C)	 The occurrence or existence of any event, other than an early closure, that materially disrupts or impairs the
ability of market participants in general to effect transactions in, or obtain market values for, securities that then comprise 20% or more of the level of the Index or any Successor Equity Index on their Relevant Stock Exchanges at any time during
the one-hour period that ends at the Close of Trading on that day. 

  

	 	(D)	 The occurrence or existence of any event, other than an early closure, that materially disrupts or impairs the
ability of market participants in general to effect transactions in, or obtain market values for, futures or options contracts relating to the Index or any Successor Equity Index on any Related Futures or Options Exchange at any time during the
one-hour period that ends at the Close of Trading on that day. 

  
 6 

	 	(E)	 The closure on any Exchange Business Day of the Relevant Stock Exchanges on which securities that then
comprise 20% or more of the level of the Index or any Successor Equity Index are traded or any Related Futures or Options Exchange prior to its Scheduled Closing Time unless the earlier closing time is announced by the Relevant Stock Exchange or
Related Futures or Options Exchange, as applicable, at least one hour prior to the earlier of (1) the actual closing time for the regular trading session on such Relevant Stock Exchange or Related Futures or Options Exchange, as applicable, and
(2) the submission deadline for orders to be entered into the Relevant Stock Exchange or Related Futures or Options Exchange, as applicable, system for execution at such actual closing time on that day. 

 

	 	(F)	 The Relevant Stock Exchange for any security underlying the Index or Successor Equity Index or any Related
Futures or Options Exchange fails to open for trading during its regular trading session. 

 For purposes
of determining whether a Market Disruption Event has occurred: 
  

	 	(1)	 the relevant percentage contribution of a security to the level of the Index or any Successor Equity Index
will be based on a comparison of (x) the portion of the level of such index attributable to that security and (y) the overall level of the Index or Successor Equity Index, in each case immediately before the occurrence of the Market
Disruption Event; 

  

	 	(2)	 the “Close of Trading” on any Trading Day for the Index or any Successor Equity Index means
the Scheduled Closing Time of the Relevant Stock Exchanges with respect to the securities underlying the Index or Successor Equity Index on such Trading Day; provided that, if the actual closing time of the regular trading session of any such
Relevant Stock Exchange is earlier than its Scheduled Closing Time on such Trading Day, then (x) for purposes of clauses (A) and (C) of the definition of “Market Disruption Event” above, with respect to any security
underlying the Index or Successor Equity Index for which such Relevant Stock Exchange is its Relevant Stock Exchange, the “Close of Trading” means such actual closing time and (y) for purposes of clauses (B) and (D) of the
definition of “Market Disruption Event” above, with respect to any futures or options contract relating to the Index or Successor Equity Index, the “close of trading” means the latest actual closing time of the regular trading
session of any of the Relevant Stock Exchanges, but in no event later than the Scheduled Closing Time of the Relevant Stock Exchanges; 

  

	 	(3)	 the “Scheduled Closing Time” of any Relevant Stock Exchange or Related Futures or Options
Exchange on any Trading Day for the Index or any Successor Equity Index means the scheduled weekday closing time of such Relevant Stock Exchange or Related Futures or Options Exchange on such Trading Day, without regard to after hours or any other
trading outside the regular trading session hours; and 

  
 7 

	 	(4)	 an “Exchange Business Day” means any Trading Day for the Index or any Successor Equity Index
on which each Relevant Stock Exchange for the securities underlying the Index or any Successor Equity Index and each Related Futures or Options Exchange are open for trading during their respective regular trading sessions, notwithstanding any such
Relevant Stock Exchange or Related Futures or Options Exchange closing prior to its Scheduled Closing Time. 

 Calculation Agent

 The Calculation Agent will determine whether this Security will be automatically called prior to stated maturity,
the Call Price, if any, the Redemption Amount, if any, and the Ending Level. In addition, the Calculation Agent will (i) determine if adjustments are required to the Closing Level of the Index under the circumstances described in this Security,
(ii) if publication of the Index is discontinued, select a Successor Equity Index or, if no Successor Equity Index is available, determine the Closing Level of the Index under the circumstances described in this Security, and
(iii) determine whether a Market Disruption Event has occurred. 
 The Company covenants that, so long as this Security
is Outstanding, there shall at all times be a Calculation Agent (which shall be a broker-dealer, bank or other financial institution) with respect to this Security. 

All determinations made by the Calculation Agent with respect to this Security will be at the sole discretion of the
Calculation Agent and, in the absence of manifest error, will be conclusive for all purposes and binding on the Company and the Holder of this Security. 

Redemption and Repayment 

This Security is not subject to repayment at the option of the Holder hereof prior to September 2, 2021. Except as set
forth above under “Automatic Call,” this Security is not subject to redemption prior to September 2, 2021. This Security is not entitled to any sinking fund. 

Acceleration 
 If
an Event of Default, as defined in the Indenture, with respect to this Security shall occur and be continuing, the Redemption Amount (calculated as set forth in the next two sentences) of this Security may be declared due and payable in the manner
and with the effect provided in the Indenture. The amount payable to the Holder hereof upon any acceleration permitted under the Indenture will be equal to the Redemption Amount hereof, calculated as provided herein, plus a portion of a final
Coupon Payment. The Redemption Amount will be calculated as though the date of acceleration was the Final Calculation Day. The final Coupon Payment will be prorated from and including the immediately preceding Coupon Payment Date to but
excluding the date of acceleration. 
  
  

Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions
shall for all purposes have the same effect as if set forth at this place. 

  
 8 

 Unless the certificate of authentication hereon has been executed by the Trustee
referred to on the reverse hereof by manual signature or its duly authorized agent under the Indenture referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose. 
 [The remainder of this page has been left intentionally blank] 

  
 9 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed
under its corporate seal. 
 DATED:
                                 

 

					
	WELLS FARGO & COMPANY
		
	By:	 	 
		 	 
		 	Its:	 	 

 [SEAL] 
  

					
	Attest:	 	 
		 	 
		 	Its:	 	 

  

			
	 TRUSTEE’S CERTIFICATE OF

AUTHENTICATION
 This is one of the Securities of the

series designated therein described
 in the within-mentioned Indenture.

	
	 CITIBANK, N.A.,

      as Trustee

		
	By:	 	 
		 	Authorized Signature
	
	OR
	
	 WELLS FARGO BANK, N.A.,

  as Authenticating Agent for the Trustee

		
	By:	 	 
		 	Authorized Signature

  
 10 

 [Reverse of Note] 

WELLS FARGO & COMPANY 

MEDIUM-TERM NOTE, SERIES K 

Due Nine Months or More From Date of Issue 

Principal at Risk Securities Linked to the S&P 500® Index 

due September 2, 2021 

This Security is one of a duly authorized issue of securities of the Company (herein called the
“Securities”), issued and to be issued in one or more series under an indenture dated as of July 21, 1999, as amended or supplemented from time to time (herein called the “Indenture”), between the Company and
Citibank, N.A., as Trustee (herein called the “Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities, and of the terms upon which the Securities are, and are to be, authenticated and delivered. This Security is
one of the series of the Securities designated as Medium-Term Notes, Series K, of the Company, which series is limited to an aggregate principal amount or face amount, as applicable, of $25,000,000,000 or the equivalent thereof in one or more
foreign or composite currencies. The amount payable on the Securities of this series may be determined by reference to the performance of one or more equity-, commodity- or currency-based indices, exchange traded funds, securities, commodities,
currencies, statistical measures of economic or financial performance, or a basket comprised of two or more of the foregoing, or any other market measure or may bear interest at a fixed rate or a floating rate. The Securities of this series may
mature at different times, be redeemable at different times or not at all, be repayable at the option of the Holder at different times or not at all and be denominated in different currencies. 

Article Sixteen of the Indenture shall not apply to this Security. 

The Securities are issuable only in registered form without coupons and will be either
(a) book-entry securities represented by one or more Global Securities recorded in the book-entry system maintained by the Depositary or (b) certificated
securities issued to and registered in the names of, the beneficial owners or their nominees. 
 The Company agrees, to the
extent permitted by law, not to voluntarily claim the benefits of any laws concerning usurious rates of interest against a Holder of this Security. 

Modification and Waivers 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights
and obligations of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in principal amount of the
Securities at the 

  
 11 

 
time Outstanding of all series to be affected, acting together as a class. The Indenture also contains provisions permitting the Holders of a majority in principal amount of the Securities of all
series at the time Outstanding affected by certain provisions of the Indenture, acting together as a class, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with those provisions of the Indenture. Certain
past defaults under the Indenture and their consequences may be waived under the Indenture by the Holders of a majority in principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such
series. Solely for the purpose of determining whether any consent, waiver, notice or other action or Act to be taken or given by the Holders of Securities pursuant to the Indenture has been given or taken by the Holders of Outstanding Securities in
the requisite aggregate principal amount, the principal amount of this Security will be deemed to be equal to the amount set forth on the face hereof as the “Face Amount” hereof. Any such consent or waiver by the Holder of this Security
shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or
waiver is made upon this Security. 
 Defeasance 

Section 403 and Article Fifteen of the Indenture and the provisions of clause (ii) of Section 401(1)(B) of the
Indenture, relating to defeasance at any time of (a) the entire indebtedness on this Security and (b) certain restrictive covenants and certain Events of Default, upon compliance by the Company with certain conditions set forth therein,
shall not apply to this Security. The remaining provisions of Section 401 of the Indenture shall apply to this Security. 
 Authorized
Denominations 
 This Security is issuable only in registered form without coupons in denominations of $1,000 or any
amount in excess thereof which is an integral multiple of $1,000. 
 Registration of Transfer 

Upon due presentment for registration of transfer of this Security at the office or agency of the Company in the City of
Minneapolis, Minnesota, a new Security or Securities of this series, with the same terms as this Security, in authorized denominations for an equal aggregate Face Amount will be issued to the transferee in exchange herefor, as provided in the
Indenture and subject to the limitations provided therein and to the limitations described below, without charge except for any tax or other governmental charge imposed in connection therewith. 

This Security is exchangeable for definitive Securities in registered form only if (x) the Depositary notifies the
Company that it is unwilling or unable to continue as Depositary for this Security or if at any time the Depositary ceases to be a clearing agency registered under the Securities Exchange Act of 1934, as amended, and a successor depositary is not
appointed within 90 days after the Company receives such notice or becomes aware of such ineligibility, (y) the Company in its sole discretion determines that this Security shall be exchangeable for definitive Securities in registered form
and notifies the Trustee thereof or (z) an Event of Default with respect to the Securities represented hereby has occurred and is continuing. If this Security is exchangeable pursuant to the preceding sentence, it shall be exchangeable for
definitive Securities in registered 

  
 12 

 
form, bearing interest at the same rate, having the same date of issuance, Stated Maturity Date and other terms and of authorized denominations aggregating a like amount. 

This Security may not be transferred except as a whole by the Depositary to a nominee of the Depositary or by a nominee of the
Depositary to the Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a successor of the Depositary or a nominee of such successor. Except as provided above, owners of beneficial interests in this Global
Security will not be entitled to receive physical delivery of Securities in definitive form and will not be considered the Holders hereof for any purpose under the Indenture. 

Prior to due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company
or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary. 
 Obligation of the Company Absolute 

No reference herein to the Indenture and no provision of this Security or the Indenture shall alter or impair the obligation
of the Company, which is absolute and unconditional, to pay the Coupon Payments, if any, and the Redemption Amount or the Call Price, as applicable, on this Security at the times, place and rate, and in the coin or currency, herein prescribed,
except as otherwise provided in this Security. 
 No Personal Recourse 

No recourse shall be had for the payment of any Coupon Payments or the Redemption Amount or the Call Price, as applicable, on
this Security, or for any claim based hereon, or otherwise in respect hereof, or based on or in respect of the Indenture or any indenture supplemental thereto, against any incorporator, stockholder, officer or director, as such, past, present or
future, of the Company or any successor corporation, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as part of
the consideration for the issuance hereof, expressly waived and released. 
 Defined Terms 

All terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture
unless otherwise defined in this Security. 
 Governing Law 

This Security shall be governed by and construed in accordance with the law of the State of New York, without regard to
principles of conflicts of laws. 

  
 13 

 ABBREVIATIONS 

The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they
were written out in full according to applicable laws or regulations: 
  

					
	 TEN COM
	 	  -- 
	 	 as tenants in common

			
	 TEN ENT
	 	  -- 
	 	 as tenants by the entireties

			
	 JT TEN
	 	  -- 
	 	 as joint tenants with right

of survivorship and not
 as
tenants in common

  

									
	 UNIF GIFT MIN ACT
	 	  -- 
	 	 	 	 Custodian
	 	 
		 		 	(Cust)	 		 	(Minor)

  

	
	Under Uniform Gifts to Minors Act
	
	   

	(State)

 Additional abbreviations may also be used though not in the above list. 

FOR VALUE RECEIVED, the undersigned hereby sell(s) and transfer(s) unto 

 

	
	 Please Insert Social Security or
 Other
Identifying Number of Assignee

	
	   

  
  

 
  
  

 
 (PLEASE
PRINT OR TYPE NAME AND ADDRESS INCLUDING POSTAL ZIP CODE OF ASSIGNEE)

  
 14 

 the within Security of WELLS FARGO & COMPANY and does hereby irrevocably constitute and
appoint                          attorney to transfer the said Security on the books of the Company, with full power of
substitution in the premises. 
 Dated:
                                         
        
  

	
	   

  

	
	   

 NOTICE: The signature to this assignment must correspond with the name as written upon the face of the
within instrument in every particular, without alteration or enlargement or any change whatever. 

  
 15deac_ex1084.htm

EXHIBIT 10.84
 
DEFINITIVE AGREEMENT
 
by and among
 
WOD MARKET LLC
 
[THE CONTROLLING MEMBERS OF WOD MARKET LLC]
 
AND
 
ELITE DATA SERVICES INC.
 

[THE CONTROLLING STOCKHOLDERS OF ELITE DATA SERVICES INC.]
 
dated as of August 26, 2016
 
	 
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DEFINITIVE AGREEMENT
 
THIS DEFINITIVE AGREEMENT, dated as of August 26, 2016 (this "Agreement") by and among WOD MARKET LLC, a Colorado limited liability company ("WOD"), and the entities and/or individuals listed on Schedule 1.1 attached hereto (collectively, the "WOD Controlling Members"), and ELITE DATA SERVICES INC., a Florida corporation publicly-traded on the US Over-the-Counter (OTC) Stock Exchange ("DEAC" and "Company"), and the entity listed on Schedule 1.1 (together, the "DEAC Controlling Shareholders") (collectively referred to as the "Parties").
 
RECITALS
 
WHEREAS, the WOD Controlling Members own in the aggregate a majority of the issued and outstanding units of membership interests of WOD (the "Units") as set forth in Schedule 1.3, such Units being hereinafter referred to as (the "WOD Units");
 
WHEREAS, the DEAC Controlling Shareholders own a majority of the issued and outstanding shares of DEAC as set forth in Schedule 1.3, such shares being hereinafter referred to as (the "DEAC Shares");
 
WHEREAS, WOD and the WOD Controlling Members, and DEAC and the DEAC Controlling Shareholders collectively believe it is in their respective best interests to have DEAC acquire WOD as a subsidiary of DEAC in the form of a business combination (the "Acquisition"), and do hereby mutually agree to consummate an equity exchange transaction contemplated herein, in the form and structure set forth in Article I herein below; 
 
NOW, THEREFORE, in consideration of the mutual terms, conditions and other agreements set forth herein, the parties hereto agree as follows:
 
AGREEMENT
 
This Agreement shall confirm the mutual understandings by and between the Parties hereto with respect to the transactions to be completed as herein below. None of the Parties shall be bound by any oral or written statements nor any correspondence during the course of negotiations between the Parties, not otherwise specified or stipulated in this Agreement. This Agreement, when executed, shall supersede any and all of the terms and conditions set forth in the previously Letter of Intent executed on or about July 22, 2016. This Agreement shall be in full force and effect from the date of execution with respect to all represented terms and conditions, subject to certain corporate actions and/or documents which may require additional time to complete and/or execute, all of which shall be completed by a mutually agreed upon closing date as defined herein.
 
ARTICLE I
 
ACQUISITION OF WOD; EQUITY EXCHANGE 
 
Section 1.1 Acquisition of WOD. Upon the terms and subject to the conditions set forth in this Agreement, DEAC shall acquire, from WOD, a certain percentage of the ownership interest in WOD, in a series of closings in the form of one or more equity exchanges, upon which WOD shall become a wholly owned subsidiary of DEAC, after the final closing has occurred, as described and set forth in Schedule 1.1 hereto.
 
	 
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Section 1.2 Agreement to Exchange WOD Units for New DEAC Shares. Pursuant to Section 1.1 hereinabove, (i) WOD shall assign, transfer, convey and deliver the WOD Units to the Escrow Agent (as hereinafter defined); and in consideration and exchange therefor, DEAC shall; (ii) issue and deliver the New DEAC Shares to WOD, in such amounts as described and set forth in Schedule 1.2 hereto (collectively referred to as the "Equity Exchange").
 
Section 1.3 Capitalization at the Closing. On the Closing Date (as defined below) of the First Closing, immediately before the consummation of the Equity exchange, DEAC shall have as authorized capital stock a total of 500,000,000 shares of Common Stock, $.0001 par value per share, of which approximately 130,237,299shares of Common Stock shall be issued and outstanding, and a total of 250,000,000 shares of Preferred Stock, $.0001 par value per share, of which not more than 2,000,000 shares of Preferred Stock shall be issued and outstanding (the "DEAC Capitalization"). 
 
Section 1.4 Initial Closing and Actions at Initial Closing.
 
(a) The initial (first) closing of the Equity exchange (the "Closing") shall take place at 5:00 p.m. E.S.T. on August 26, 2016, or other mutually agreed to time (the "Closing Date"), at the offices of Company, with subsequent closings (also referred to herein as a "Closing" or "Closings")) at such other Closing Date, as described and set forth in Schedule 1.1 hereto. Each subsequent Closings shall include a separate Closing Certificate (the "Closing Certificate") from both DEAC and WOD evidencing compliance with the conditions of Closing pursuant to Article V and VI and the requirements for a closing as set forth in Schedule 1.1, 1.2, 1.3 and 1.4, attached hereto;
 
(b) At the Closing and each other subsequent closing: (i) WOD shall deliver to the Company documents representing the WOD Units to be allotted in the amounts as described in Schedule 1.2 hereto, accompanied by appropriate voting powers and transfer instruments duly executed in blank; (ii) in full consideration and exchange for the WOD Units, DEAC shall issue and deliver to WOD Controlling Members stock certificates representing the New DEAC Shares to be allotted in the amounts as described in Schedule 1.2 hereto (collectively referred to as the "Consideration"); and
 
ARTICLE II
 
REPRESENTATIONS AND WARRANTIES OF DEAC AND THE DEAC CONTROLLING SHAREHOLDER
 
Each of DEAC and the DEAC Controlling Shareholders (where specifically included), severally and not jointly, represents, warrants and agrees that all of the statements in the following subsections of this Section 2 are true and complete as of the date hereof, and will, except as contemplated by this Agreement, be true and complete as of the Closing Date as if first made on such date:
 
Section 2.1 Disclosure Schedules.
 
The disclosure schedule attached hereto (the "DEAC Disclosure Schedules") are divided into sections that correspond to the sections of this Section 2. The DEAC Disclosure Schedules comprise of lists of all exceptions to the truth and accuracy in all material respects of, and of all disclosures or descriptions required by, the representations and warranties set forth in the remaining sections of this Section 2. For purposes of this Section 2, any statement, facts, representations, or admissions contained in the public filings made by DEAC with the United States Securities and Exchange Commission at least five (5) business days prior to the date of this Agreement ("Public Reports"), are deemed to be included in the DEAC Disclosure Schedules, and all such information is deemed to be fully disclosed to WOD, and the WOD Controlling Members, except for (A) any information set forth in any "risk factor" or "forward-looking statements" section contained in such Public Reports, (B) any other forward-looking statements contained in such Public Reports that are of a speculative nature as to future developments. For purposes of this Agreement, "to the best of our knowledge" or similar phrase(s) shall mean that such person shall have current actual knowledge of a condition or event, or have received notice that would give rise to current actual knowledge of such condition or event.
 
	 
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Section 2.2 Corporate Organization.
 
(a) DEAC is a corporation duly organized, validly existing and in good standing under the laws of the State of Florida, and has all requisite corporate power and authority to own its properties and assets and to conduct its business as now conducted and currently proposed to be conducted and is duly qualified to do business and is in good standing in each jurisdiction in which the nature of the business conducted by DEAC or the ownership or leasing of its properties makes such qualification and being in good standing necessary, except where the failure to be so qualified and in good standing does not have and would not reasonably be expected to have, individually or in the aggregate a material adverse effect on the business, operations, properties, assets, condition or results of operation of DEAC.
 
(b) Each of the DEAC's Subsidiaries is a corporation, limited liability company or other legal entity duly organized, validly existing and (where such term is of legal significance) duly organized, validly existing and in good standing under the laws of its jurisdiction of organization, and has all requisite corporate power and authority to own its properties and assets and to conduct its business as now conducted and currently proposed to be conducted and is duly qualified to do business and is in good standing in each jurisdiction in which the nature of the business conducted by such Subsidiary or the ownership or leasing of its properties makes such qualification and being in good standing necessary, except where the failure to be so qualified and in good standing does not have and would not reasonably be expected to have, individually or in the aggregate a material adverse effect on the business, operations, properties, assets, condition or results of operation of such Subsidiary. 
 
(c) Copies of the Articles of Incorporation and bylaws of DEAC with all amendments thereto to the date hereof (the "DEAC Charter Documents"), have been furnished to WOD, and such copies are accurate and complete as of the date hereof. The minute books of DEAC are current as required by law, contain the minutes of all meetings of the Board of Directors and stockholders of DEAC from its date of incorporation to the date of this Agreement, and adequately reflect all material actions taken by the Board of Directors and stockholders of DEAC. DEAC is not in violation of any of the provisions of the DEAC Charter Documents.
 
Section 2.3 Capitalization of DEAC. On the Closing Date of the First Closing, immediately before the consummation of the Equity exchange, the entire authorized capital stock of DEAC will consist of 500,000,000 shares of Common Stock, at par value of $0.0001, of which approximately 130,237,299 shares of Common Stock are issued and outstanding and 250,000,000 shares of Preferred Stock, at par value of $0.0001, of which2,000,000 shares of Preferred Stock are issued and outstanding, of which the ownership rights are stated in Schedule 1.1 which constitutes all of the DEAC Shares, commitments and conversion rights for equity of DEAC which will be issued and outstanding. Each such share is duly authorized, validly issued, fully paid and non-assessable and was not issued in violation of any pre-emptive rights. The DEAC Shares are the sole outstanding shares of capital stock of DEAC and there are no outstanding options, warrants, agreements, commitments, conversion rights, preemptive rights or other rights to subscribe for, purchase or otherwise acquire any shares of capital stock or any un-issued or treasury shares of capital stock of DEAC. In addition, there are no outstanding contractual obligations of DEAC (i) to repurchase, redeem or otherwise acquire any shares of capital stock of DEAC or (ii) to make any investment in any other person or entity. 
 
Section 2.4 Subsidiaries and Equity Investments. DEAC does not directly or indirectly own any capital stock or other securities of, or any beneficial ownership interest in, or hold any equity or similar interest, or have any investment in any corporation, limited liability company, partnership, limited partnership, joint venture or other company, person or other entity, including without limitation any Subsidiary of DEAC except for the Subsidiaries set forth in Schedule 2.4, attached hereto. Each of the Subsidiaries of DEAC is wholly-owned by the DEAC, directly or indirectly, free and clear of any liens. For purposes of this Agreement, a "Subsidiary" of a company means any entity in which, at the date of this Agreement, such company or any of its subsidiaries directly or indirectly owns any of the capital stock, equity or similar interests or voting power.
 
	 
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Section 2.5 Authorization and Validity of Agreements. Each of DEAC and the DEAC Controlling Shareholder has all corporate power and authority to execute and deliver this Agreement, to perform its obligations hereunder and to consummate the transactions contemplated hereby. The execution and delivery of this Agreement by DEAC and the DEAC Controlling Shareholder, and the consummation by DEAC and by the DEAC Controlling Shareholder of the transactions contemplated hereby, have been duly authorized by all necessary corporate actions of DEAC and the DEAC Controlling Shareholder, and no other corporate proceedings on the part of DEAC or other actions on part of the DEAC Controlling Shareholder are necessary to authorize this Agreement or to consummate the transactions contemplated hereby. The board of directors of DEAC has unanimously adopted resolutions: (a) approving and declaring advisable the Equity exchange, this Agreement and the transactions contemplated by this Agreement; (b) declaring that it is in the best interests of the stockholders of DEAC that DEAC enters into this Agreement and consummates the Equity Exchange upon the terms and subject to the conditions set forth in this Agreement; (c) directing that adoption of this Agreement be submitted to a vote at a meeting of the stockholders of DEAC; (d) recommending to the stockholders of DEAC that they adopt this Agreement (the "DEAC Board Recommendation"); and (e) to include the DEAC Board Recommendation in the DEAC Proxy Statement, if required. This Agreement constitutes the valid and legally binding obligation of DEAC and the DEAC Controlling Shareholder, and is enforceable in accordance with its terms. DEAC does not need to give any notice to, make any filings with, or obtain any authorization, consent or approval of any government or governmental agency or other person in order for it to consummate the transactions contemplated by this Agreement, other than filings that may be required or permitted under states securities laws, the Securities Act of 1933, as amended (the "Securities Act") and/or the Securities Exchange Act of 1934, as amended (the "Exchange Act") resulting from the issuance of the New DEAC Shares.
 
Section2.6 No Conflict or Violation. Neither the execution and delivery of this Agreement by DEAC and/or the DEAC Controlling Shareholder, nor the consummation by DEAC and/or the DEAC Controlling Shareholder of the transactions contemplated hereby will, to their respective knowledge: (i) contravene or conflict with, or result in any violation or breach of any provision of the DEAC Charter Documents; (ii) contravene or conflict with, or result in any violation or breach of any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling, charge or other restriction of any government, governmental agency, court, administrative panel or other tribunal to which DEAC and/or the DEAC Controlling Shareholder are subject, (ii) conflict with, result in a breach of, constitute a default under, result in the acceleration of, create in any party the right to accelerate, terminate, modify or cancel, or require any notice under any agreement, contract, lease, license, instrument or other arrangement to which DEAC and/or the DEAC Controlling Shareholder is a party or by which it is bound, or to which any of its assets is subject; or (iii) result in or require the creation or imposition of any encumbrance of any nature upon or with respect to any of DEAC's or any of the DEAC Controlling Shareholder's assets, including without limitation the New DEAC Shares and/or the DEAC Shares.
 
Section 2.7 Material Agreements. Except as set forth on Schedule 2.7 attached hereto, DEAC is not a party to or bound by any contracts, including, but not limited to, any:
 
(a) employment, advisory or consulting contract;
 
(b) plan providing for employee benefits of any nature;
 
(c) lease with respect to any property or equipment;
 
(d) contract, agreement, understanding or commitment for any future expenditure in excess of $5,000 in the aggregate;
 
(e) contract or commitment pursuant to which it has assumed, guaranteed, endorsed, or otherwise become liable for any obligation of any other person, entity or organization; or
 
(f) agreement with any person relating to the dividend, purchase or sale of securities, that has not been settled by the delivery or payment of securities when due, and which remains unsettled upon the date of this Agreement.
 
	 
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Section 2.8 Litigation. To the knowledge of DEAC, there is no action, suit, proceeding or investigation ("Action") pending or currently threatened against DEAC or any of its Subsidiaries or any of their respective affiliates. There is no Action pending or currently threatened against DEAC or any of its Subsidiaries or any of their respective affiliates, before any court or by or before any governmental body or any arbitration board or tribunal, nor is there any judgment, decree, injunction or order of any court, governmental department, commission, agency, instrumentality or arbitrator against DEAC or any of its Subsidiaries or any of their respective affiliates. To each of their best knowledge, neither DEAC, nor any of its Subsidiaries, or any of their respective affiliates, is a party or subject to the provisions of any order, writ, injunction, judgment or decree of any court or government agency or instrumentality. To their knowledge, there is no Action by DEAC or any of its Subsidiaries or any of their respective affiliates relating to DEAC currently pending or which DEAC or any of its Subsidiaries or any of their respective affiliates intends to initiate. 
 
Section 2.9 Compliance with Laws; Permits. To its knowledge, DEAC, each of its Subsidiaries and each of their respective affiliates has been and is in compliance with, and has not received any notice of any violation of any, applicable law, ordinance, regulation or rule of any kind whatsoever, including without limitation the Securities Act, the Exchange Act, the applicable rules and regulations of the SEC, or the applicable securities laws and rules and regulations of any state. DEAC is not an "investment company" as such term is defined by the Investment Company Act of 1940, as amended. To its knowledge, each of DEAC and its Subsidiaries possess from the appropriate Governmental Authority all licenses, permits, authorizations, approvals, franchises and rights that are necessary for WOD to engage in its business as currently conducted and to permit DEAC and each of its Subsidiaries to own and use its properties and assets in the manner in which it currently owns and uses such properties and assets (collectively, "DEAC Permits"). DEAC has not received notice from any Governmental Authority or other Person that it is lacking any license, permit, authorization, approval, franchise or right necessary for DEAC to engage in its business as currently conducted and to permit DEAC to own and use its properties and assets in the manner in which it currently owns and uses such properties and assets. Except as would not have a Material Adverse Effect, DEAC Permits are valid and in full force and effect. Except as would not have a Material Adverse Effect, no event has occurred or to the knowledge of DEAC, does circumstances exist that may (with or without notice or lapse of time): (a) constitute or result, directly or indirectly, in a violation of or a failure to comply with any DEAC Permit; or (b) result, directly or indirectly, in the revocation, withdrawal, suspension, cancellation or termination of, or any modification to, any DEAC Permit. DEAC has not received notice from any Governmental Authority or any other Person regarding: (i) any actual, alleged, possible or potential contravention of any DEAC Permit; or (ii) any actual, proposed, possible or potential revocation, withdrawal, suspension, cancellation, termination of, or modification to, any DEAC Permit. To its knowledge, all applications required to have been filed for the renewal of such have been duly filed on a timely basis with the appropriate Persons, and all other filings required to have been made with respect to such DEAC Permits have been duly made on a timely basis with the appropriate Persons. All DEAC Permits are renewable by their terms or in the ordinary course of business without the need to comply with any special qualification procedures or to pay any amounts other than routine fees or similar charges, all of which have, to the extent due, been duly paid.
 
Section 2.10 Financial Statements; SEC Filings.
 
(a) DEAC's financial statements contained in its periodic reports filed with the Securities and Exchange Commission ( "SEC" and the "Financial Statements") (a) complied as to form in all material respects with the published rules and regulations of the SEC in effect at the time of filing; (b) have been prepared in accordance with generally accepted accounting principles applicable in the United States of America ("U.S. GAAP") applied on a consistent basis throughout the periods indicated and with each other, except that those of the Financial Statements that are not audited do not contain all footnotes required by U.S. GAAP. The Financial Statements fairly present the financial condition and operating results of DEAC as of the dates, and for the periods, indicated therein, subject to normal year-end audit adjustments. Except as set forth in the Financial Statements or as disclosed in Schedule 2.10, DEAC has no liabilities (accrued, absolute contingent or otherwise). DEAC is not a guarantor or indemnitor of any indebtedness of any other person, firm or corporation. DEAC maintains and will continue to maintain until the Closing a standard system of accounting established and administered in accordance with U.S. GAAP.
 
	 
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(b) DEAC has timely filed all filings with the SEC that it has been required to make under the Securities Act and the Exchange Act (the "Public Reports"), except for Form 10K for period ending December 31, 2015, Form 10Q for period ending March 31, 2016, and Form 10Q for period ending June 30, 2016 which has been disclosed to WOD. Each of the Public Reports has complied in all material respects with the applicable provisions of the Securities Act, the Exchange Act, and the Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act") and/or regulations promulgated thereunder. None of the Public Reports, as of their respective dates, contained any untrue statement of a material fact or omitted to state a material fact necessary to make the statements made therein not misleading. Each of the principal executive officers of DEAC and the principal financial officer of DEAC (or each former principal executive officer of the DEAC and each former principal financial officer of DEAC, as applicable) has made all certifications required by Rule 13a-14 or 15d-14 under the Exchange Act and Sections 302 and 906 of the Sarbanes-Oxley Act with respect to the DEAC Public Reports. There is no event, fact or circumstance that would cause any certification signed by any officer of DEAC in connection with any Public Report pursuant to the Sarbanes/Oxley Act to be untrue, inaccurate or incorrect in any respect. Neither DEAC nor any of its Subsidiaries has outstanding, or has arranged any outstanding, "extensions of credit" to directors or executive officers in violation of Section 402 of the Sarbanes-Oxley Act. As of the date hereof, DEAC has no reason to believe that its outside auditors and its principal executive officer and principal financial officer will not be able to give, without qualification, the certificates and attestations required pursuant to the Sarbanes-Oxley Act when next due. There is no revocation order, suspension order, injunction or other proceeding or law affecting the trading of its Common Stock. All of the issued and outstanding shares of capital stock have been issued in compliance with the Securities Act and applicable state securities laws and no stockholder of DEAC has any right to rescind or other claim against DEAC for failure to comply with the Securities Act or state securities laws, and
 
(c) Since the date of the filing of its annual report on Form 10-K for the year ended December 31, 2014, except as (i) specifically disclosed to WOD or in the Public Reports; and (ii) as set forth on Schedule 2.10: (A) there has been no event, occurrence or development that has resulted in or could result in a Material Adverse Effect (for purposes of this Section 2.10, a "Material Adverse Effect" means any event, occurrence, fact, condition, change, development, circumstance or effect (i) that is materially adverse to the business, assets, properties, liabilities, condition (financial or otherwise), operating results or prospects of DEAC and its Subsidiaries), or (ii) would prevent DEAC from consummating the transactions contemplated by this Agreement; (B) DEAC has not incurred any liabilities, contingent or otherwise, other than professional fees, which are accurately disclosed in the Public Reports; (C) DEAC has not declared or made any dividend or distribution of cash or property to its shareholders, purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock, or issued any equity securities; and (D) DEAC has not made any loan, advance or capital contribution to or investment in any person or entity, except as disclosed in the Public Reports.
 
Section 2.11 Books and Financial Records. All the accounts, books, registers, ledgers, Board minutes and financial and other material records of whatsoever kind of each of DEAC and any Subsidiary of DEAC have been fully, properly and accurately kept and completed; there are no material inaccuracies or discrepancies of any kind contained or reflected therein; and they give and reflect a true and fair view of the financial, contractual and legal position of DEAC and each such Subsidiary.
 
Section 2.12 Employee Benefit Plans. DEAC does not have any "Employee Benefit Plan" as defined in the U.S. Employee Retirement Income Security Act of 1974 or similar plans under any applicable laws.
 
Section 2.13 Tax Returns, Payments and Elections. Except as set forth on Schedule 2.13, each of DEAC and its Subsidiaries has timely filed all Tax (as defined below) returns, statements, reports, declarations and other forms and documents (including, without limitation, estimated tax returns and reports and material information returns and reports) ("Tax Returns") required pursuant to applicable law to be filed with any Tax Authority (as defined below). All such Tax Returns are accurate, complete and correct in all material respects, and each of DEAC and its Subsidiaries has fully and timely paid all Taxes due. Each of DEAC and its Subsidiaries has withheld or collected from each payment made to each of its employees the amount of all Taxes (including, but not limited to, United States income taxes and other foreign taxes) required to be withheld or collected therefrom, and has paid the same to the proper Tax Authority. For purposes of this Agreement, the following terms have the following meanings: "Tax" (and, with correlative meaning, "Taxes" and "Taxable") means any and all taxes including, without limitation, (x) any net income, alternative or add-on minimum tax, gross income, gross receipts, sales, use, ad valorem, transfer, franchise, profits, value added, net worth, license, withholding, payroll, employment, excise, severance, stamp, occupation, premium, property, environmental or windfall profit tax, custom, duty or other tax, governmental fee or other like assessment or charge of any kind whatsoever, together with any interest or any penalty, addition to tax or additional amount imposed by any United States, local or foreign governmental authority or regulatory body responsible for the imposition of any such tax (domestic or foreign) (a "Tax Authority"), (y) any liability for the payment of any amounts of the type described in (x) as a result of being a member of an affiliated, consolidated, combined or unitary group for any taxable period or as the result of being a transferee or successor thereof, and (z) any liability for the payment of any amounts of the type described in (x) or (y) as a result of any express or implied obligation to indemnify any other person.
 
	 
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Section 2.14 Absence of Undisclosed Liabilities. Except as disclosed in Section 2.14, as of the Closing Date, DEAC will have no liabilities of any kind whatsoever. DEAC is not a guarantor of any indebtedness of any other person, entity or corporation.
 
Section 2.15 No Broker Fees. No brokers, finders or financial advisory fees or commissions will be payable by or to DEAC or the DEAC Controlling Shareholder of any of their affiliates with respect to the transactions contemplated by this Agreement, except as set forth in Schedule 2.7. 
 
Section 2.16 No Disagreements with Accountants and Lawyers. There are no disagreements of any kind presently existing, or anticipated by DEAC to arise, between DEAC and any accountants and/or lawyers formerly or presently employed by DEAC. DEAC is current with respect to fees owed to its accountants and lawyers.
 
Section 2.17 SEC Disclosure Controls and Procedures. 
 
(a) DEAC (i) maintains "disclosure controls and procedures" (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) to provide reasonable assurance that material information relating to the DEAC, including its consolidated subsidiaries, is made known to its principal executive officer and principal financial officer; (ii) maintains "internal control over financial reporting" (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act); and (iii) has evaluated the effectiveness of the DEAC's disclosure controls and procedures as required by Rule 13a-15(a) under the Exchange Act.
 
(b) DEAC has disclosed, based on the most recent evaluation of internal control over financial reporting, to the DEAC's auditors and the audit committee of the DEAC's board of directors "significant deficiencies" and "material weaknesses" (each as defined in Rule 12b-2 under the Exchange Act) in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the DEAC's ability to record, process, summarize and report financial information. To the knowledge of DEAC, there is no fraud, whether or not material, that involves management or other employees who have a significant role in DEAC's internal control over financial reporting.
 
(c) (i) neither DEAC, nor, to the knowledge of DEAC, any director or officer of DEAC, has received or otherwise had or obtained knowledge of any written material complaint, allegation, assertion or claim regarding the accounting or auditing practices, procedures, methodologies or methods of DEAC or any of its Subsidiaries, or their respective internal accounting controls, including any written material complaint, allegation, assertion or claim that DEAC or any of its Subsidiaries has engaged in accounting or auditing practices that do not comply with U.S. GAAP or DEAC's published internal accounting controls, and (ii) no attorney representing DEAC or any of its Subsidiaries, whether or not employed by DEAC or any of its Subsidiaries, has rendered a written report to the board of directors of DEAC or any committee thereof containing evidence of a material violation of applicable securities Laws, breach of fiduciary duty or similar violation by DEAC or any of its officers or directors.
 
Section 2.17 Voting.
 
(a) The affirmative vote of the holders of a majority of the outstanding shares of DEAC capital stock ("Requisite DEAC Vote") is the only vote of the holders of any class or series of the capital stock of DEAC or any of its Subsidiaries necessary (under the DEAC Charter Documents, the Florida General Corporation Law, other applicable laws or otherwise) to approve and adopt this Agreement, the Equity exchange and the other transactions contemplated by this Agreement.
 
	 
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(b) There are no voting trusts, proxies or similar agreements, arrangements or commitments to which DEAC or any of its Subsidiaries is a party or of which DEAC has knowledge with respect to the voting of any shares of capital stock of DEAC or any of its Subsidiaries. There are no bonds, debentures, notes or other instruments of indebtedness of DEAC or any of its Subsidiaries that have the right to vote, or that are convertible or exchangeable into or exercisable for securities having the right to vote, on any matters on which stockholders of DEAC may vote.
 
Section 2.18 Governmental Authorizations. The execution, delivery and performance of this Agreement by DEAC and the consummation by DEAC of the transactions contemplated by this Agreement do not and will not require any consent, approval or other authorization of, or filing with or notification to (collectively, "Governmental Authorizations"), any international, supra-national, national, federal, state, provincial or local governmental, regulatory or administrative authority, agency, commission, court, tribunal, arbitral body or self-regulated entity, whether of Canada, the United States, or otherwise (each, a "Governmental Entity"), other than:
 
(a) the filing with the SEC of filings and reports that may be required in connection with this Agreement and the transactions contemplated by this Agreement under the Securities Act and the Exchange Act;
 
(b) compliance with the rules and regulations of FINRA and The OTC Stock Exchange; and
 
(c) compliance with Non-U.S. Antitrust Laws.
 
Section 2.19 Employee Benefit Plans.
 
(a) DEAC has no employee benefit plan maintained, established or sponsored by DEAC, or which DEAC participates in or contributes to (as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), except for the DEAC Equity Incentive Stock Plan (the "Stock Plan") approved and effective as of August 27, 2015.
 
(b) No other Contracts, plans or arrangements (written or otherwise) covering any current or former employee, director, officer, shareholder or independent contractor of DEAC or exists that, as a result of the execution of this Agreement, stockholder approval of this Agreement or the transactions contemplated by this Agreement (whether alone or in connection with any other events), could (i) result in severance pay or any increase in severance pay upon any termination of employment or (ii) accelerate the time of payment or vesting or result in any payment or funding (through a grantor trust or otherwise) of compensation or benefits under, increase the amount payable or result in any other material obligation pursuant to, any of the employee plans. There are no other contracts, plans or arrangements (written or otherwise) covering any current or former employee, director, officer, shareholder or independent contractor of DEAC that, individually or collectively, could give rise to the payment of any amount or benefit that would not be deductible pursuant to the terms of Section 280G of the Internal Revenue Code of 1986, as amended.
 
	 
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Section 2.20 Labor. 
 
(a) Except as set forth on Schedule 2.20, there are no employment, consulting, collective bargaining, severance pay, continuation pay, termination or indemnification agreements or other similar contracts of any nature (whether in writing or not) between DEAC or any of its Subsidiaries on the one hand, and any current or former, affiliate, officer, director, employee, consultant, labor organization or other representative of any of DEAC's employees, on the other hand, nor is any such contract presently being negotiated. DEAC is delinquent in payments to any of its employees, consultants or independent contractors for any wages, salaries, commissions, bonuses, benefits, contributions or other compensation for any services or otherwise arising under any policy, practice, contract, plan, program or Law. DEAC is not liable for any severance pay or other payments to any employee, consultant or independent contractor or former employee, consultant or independent contractor arising from the termination of employment or other service relationship, nor will DEAC have any liability under any benefit or severance policy, practice, contract, plan, program or law which exists or arises, or may be deemed to exist or arise, as a result of or in connection with the transactions contemplated hereunder or as a result of the termination by DEAC of any Persons employed by or under contract with DEAC or on or prior to the Closing. DEAC's employment policies or practices is not currently being audited or investigated by any Governmental Authority or court. There is no pending, or to the knowledge of DEAC, threatened claim, unfair labor practice charge or other charge or inquiry against DEAC brought by or on behalf of any current, prospective or former employee, consultant, independent contractor, retiree, labor organization or other representative of DEAC's employee or other individual or any Governmental Authority with respect to employment practices brought by or before any court or Governmental Authority, nor is there or has there been any audit or investigation related to DEAC's classification of independent contractors and consultants.
 
(b) To the knowledge of DEAC: (i) There are no controversies pending or threatened, between DEAC, on the one hand, and any of its respective employees, consultants or independent contractors, on the other hand; (ii) DEAC is not a party to any collective bargaining agreement or other labor union contract applicable to Persons employed by DEAC nor are there any activities or proceedings of any labor union to organize any such employees, consultants or independent contractors of DEAC; (iii) there have been no strikes, slowdowns, work stoppages, disputes, lockouts or threats thereof by or with respect to any employees, independent contractors or consultants of DEAC, and (iv) there are no employment-related grievances pending or threatened. DEAC is not a party to, or otherwise bound by, any consent decree with, or citation or other order by, any Governmental Authority relating to employees or employment practices. DEAC is in compliance in all material respects with all applicable laws, contracts and policies relating to employment, employment practices, wages, hours and terms and conditions of employment, including the obligations of the U.S. Worker Adjustment and Retraining Notification Act of 1988, as amended ("WARN"), and any similar state or local statute, rule or regulation, and all other notification and bargaining obligations arising under any collective bargaining agreement, by law or otherwise. DEAC has not effectuated a "plant closing" or "mass layoff" (as those terms are defined in WARN or similar laws) affecting in whole or in part any site of employment, facility, operating unit or employee of DEAC without complying with all provisions of WARN or similar laws or implemented any early retirement, separation or window program, nor has DEAC planned or announced any such action or program for the future. 
 
(c) DEAC is not a party to or bound by any employment or consultant contract with any officer, employee or consultant that is not terminable by DEAC at will and without liability upon notice of thirty (30) days or less, except as set forth on Schedule 2.20.
 
(d) None of DEAC, or, to the knowledge of DEAC, any of DEAC's employees, consultants or independent contractors is obligated under any contract (including licenses, covenants or commitments of any nature) or subject to any judgment, decree or order of any court or Governmental Authority that would interfere with the use of such Person's best efforts to promote the interests of DEAC or that would conflict with DEAC's business as conducted and as proposed to be conducted.
 
(e) All of DEAC's employees are "at will" employees subject to the termination notice provisions included in their employment agreements or applicable law, and there is no circumstance that could give rise to a valid claim by a current or former employee, contractor or consultant of DEAC for compensation on termination of employment. 
 
	 
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Section 2.21 Intellectual Property. 
 
(a) Schedule 2.21 sets forth a complete and accurate list, as of the date of this Agreement, of (i) each issued patent, and trademark and copyright registrations owned by DEAC, (ii) each pending patent, trademark and copyright application filed by or on behalf of DEAC, (iii) each domain name registered by or on behalf of DEAC (the foregoing being, collectively, the "Registered Intellectual Property"), and (v) all material unregistered Intellectual Property owned by DEAC. Schedule 2.21 lists (i) the record owner of each such item of Registered Intellectual Property, (ii) the jurisdictions in which each such item of Registered Intellectual Property has been issued or registered or in which each such application has filed and (iii) the registration or application, as applicable. All Registered Intellectual Property is subsisting, unexpired, nor abandoned, in compliance with all legal requirements, not subject to any filings, fees or other actions falling due within ninety (90) days after the Closing Date, and, to the knowledge of DEAC, valid and enforceable. No material invention or process must be filed within ninety (90) days after the Closing Date to avoid a statutory bar to patentability.
 
(b) DEAC solely and exclusively own all right, title and interest in and to all Intellectual Property required to be set forth on Schedule 2.21, free and clear of any liens or adverse claims from any other Person; and DEAC solely and exclusively own or otherwise have valid and continuing rights to use, transfer and license, free and clear of any liens or adverse claims from any other Person, all Intellectual Property (as defined below) used in, or necessary for, the business of DEAC as currently conducted and as currently proposed to be conducted.
 
(c) To its knowledge, the conduct of DEAC businesses, including their products and services as presently performed and as currently contemplated to be performed, do not infringe upon, misappropriate or otherwise violate any Intellectual Property of any third party.
 
(d) To the knowledge of DEAC, no third Person has or is infringing, violating, or misappropriating any Intellectual Property owned by DEAC.
 
(e) Except as set forth on Schedule 2.21, there is no pending or, to the knowledge of DEAC, threatened legal proceeding (including cease and desist letters, DMCA take-down notices or invitations to take a patent license), (i) claiming that DEAC has or is infringing, misappropriating or violating any Intellectual Property rights of any third Person or (ii) that concerns the ownership, use, validity or enforceability of any Intellectual Property owned by DEAC.
 
(f) Schedule 2.21 sets forth the policies and procedures that DEAC has implemented as of the date hereof with respect to content posted on the websites owned and operated by DEAC. DEAC fully complies with its own policies and procedures and have operated their businesses to maximize all applicable protections under the "safe harbors" of 47 U.S.C. §230 and 17 §U.S.C. 512 and any other equivalent laws. DEAC responds in a timely and proper manner to all complaints relating to Intellectual Property infringements, violations of the law and inappropriate conduct occurring on, through or in connection with their software, systems and websites, and there are no claims alleging otherwise.
 
(g) DEAC has taken all necessary actions, consistent with best practices in the industry in which DEAC operates, to protect (i) its Intellectual Property, its ownership, validity and/or value; (ii) the confidentiality of all material trade secrets of DEAC (if any), and have disclosed such trade secrets only pursuant to adequate, written confidentiality agreements (true and complete copies of which have been provided to Purchaser) to the Persons set forth on Schedule 2.21; and (iii) the confidentiality, integrity and security of their software, systems and websites and all information and transactions stored or contained therein or transmitted thereby against any unauthorized or improper use (including any violation of rights of privacy or publicity), access, transmittal, interruption, modification or corruption, and there have been no breaches of either (i), (ii) or (iii).
 
	 
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(h) DEAC has established privacy policies (as required, if any) with respect to personally identifiable information which are in conformance with reputable industry practice. DEAC is in compliance in all material respects with such privacy policies and applicable United States federal and state, foreign, and multinational laws relating to personally identifiable information. No agreements have been made nor policies instituted that would limit use after the Closing Date of any personally identifiable information or that would conflict with DEAC's use of the personally identifiable information.
 
(i) Except as set forth on Schedule 2.21, DEAC (i) has not provided to any third party, or otherwise permitted any third party to access, possess or use, any source code for any software owned or developed by or for DEAC ("DEAC Software"), (ii) is not currently a party to any source code escrow contract requiring the deposit of source code for any DEAC Software or providing for access to source code of any DEAC Software in specific circumstances, or (iii) has incorporated any "open source," "freeware," "shareware" or other Software having similar licensing or distribution models (including any GNU General Public License, Library General Public License, Lesser General Public License, Mozilla License, Berkeley Software Distribution License, Open Source Initiative License, MIT, Apache, Public Domain licenses and the like) ("Open Source") in, or used any Open Source in connection with, any DEAC Software (or derived any Company Software from any Open Source) in a manner that (a) would subject any proprietary source code of DEAC to the terms of such open source license, (b) requires the contribution, licensing, provision or public disclosure to any third party of any source code for such Company Software, or (c) imposes limitations on DEAC's right to require royalty payments from or restrict further distribution of same.
 
(j) All Persons who have contributed to the creation, invention, modification or improvement of any Intellectual Property purportedly owned by DEAC in whole or in part, have signed written agreements ensuring that all such Intellectual Property is owned exclusively by DEAC and there are no claims or interests of third parties (including current and former employees or contractors or their current or former employers) alleging ownership interests in same. All amounts payable by DEAC to all Persons involved in the research, development, conception or reduction to practice of any Intellectual Property owned by DEAC have been paid in full. The transactions contemplated hereby shall not grant to or allow any Person any ownership interest in, or the right to use, any Intellectual Property owned, in whole or in part, by DEAC.
 
(k) All software, websites and systems owned or used by DEAC and all material products sold, licensed or made available to DEAC's customers (i) are free from any material defect, bug, virus, or programming, design or documentation error or corruptant, (ii) are fully functional and operate and run in a reasonable and efficient business manner and (iii) conform in all material respects to the specifications and purposes thereof.
 
"Intellectual Property" means all intellectual property and industrial property rights existing anywhere in the world, including all rights associated with: (i) patents and patent applications, utility models, industrial designs and any continuations, divisionals, continuations-in-part, reissues or reexaminations and patents issuing thereon (collectively, "Patents"), (ii) trademarks, service marks, trade dress, logos, corporate names, trade names and Internet domain names and other source indicators, together with the goodwill associated with any of the foregoing, and all applications and registrations therefor (collectively, "Trademarks"), (iii) copyrights, copyrightable works (including Software, systems and website content) and registrations and applications therefor, works of authorship and moral rights (collectively, "Copyrights"), and (iv) confidential and proprietary information, including trade secrets, discoveries, concepts, ideas, research and development, algorithms, know-how, formulae, inventions (whether or not patentable), processes, techniques, technical data, designs, drawings, specifications, databases (collectively, "Trade Secrets").
 
	 
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Section 2.22 Title to and Condition of Properties. DEAC owns or holds under valid leases or other rights to use all real property, plants, machinery and equipment necessary for the conduct of the business of DEAC as presently conducted, except where the failure to own or hold such property, plants, machinery and equipment would not have a Material Adverse Effect on DEAC. The material buildings, plants, machinery and equipment necessary for the conduct of the business of DEAC as presently conducted are structurally sound, are in good operating condition and repair and are adequate for the uses to which they are being put, in each case, taken as a whole, and none of such buildings, plants, machinery or equipment are in need of maintenance or repairs, except for ordinary, routine maintenance and repairs that are not material in nature or cost.
 
Section 2.23 Disclosure. This Agreement and any certificate attached hereto or delivered in accordance with the terms hereby by or on behalf of DEAC in connection with the transactions contemplated by this Agreement, when taken together, do not contain any untrue statement of a material fact or omit any material fact necessary in order to make the statements contained herein and/or therein not misleading.
 
ARTICLE III
 
REPRESENTATIONS AND WARRANTIES OF THE WOD CONTROLLING MEMBERS
 
WOD and each of the WOD Controlling Members hereby, jointly and severally, represent, warrant and agree that all of the statements in the following subsections of this Article III are true and complete as of the date hereof, and will (except as contemplated by this Agreement) be true and complete as of the Closing Date as if first made on such date. The disclosure schedule attached hereto as Schedule 3.1 through 3.25 (the "WOD Disclosure Schedules") are divided into sections that correspond to the sections of this Article III. The WOD Disclosure Schedules comprise of lists of all exceptions as to the truth and accuracy in all material respects of, and of all disclosures or descriptions required by, the representations and warranties set forth in the remaining sections of this Article III.
 
Section 3.1 Corporate Organization of WOD. WOD is a limited liability company duly organized, validly existing and in good standing under the laws of Colorado, 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 or currently planned to be conducted. WOD has delivered to DEAC and the DEAC Controlling Shareholders complete and correct copies of the following documents (collectively referred to herein as "WOD Charter Documents"): (a) Articles of Association and the Certificate of Organization of WOD; (b) any other document performing a similar function to the documents specified in clauses (a) or (b) adopted or filed in connection with the creation, formation or organization of WOD; and (c) any and all amendments to any of the foregoing. WOD is not in any material violation of any of the provisions of the WOD Charter Documents. The minute books or the equivalent of WOD contain true and accurate records of all meetings and consents in lieu of meetings of its Board of Directors and shareholders or stockholders, as applicable ("Corporate Records"), from the time of its organization until the date hereof. The share register and other ownership records of the shares of all of WOD's shares (the "WOD Share Records"), and are true, complete and accurate records of the ownership of the shares as of the date thereof and contain all issuances and transfers of such shares since the time of organization of WOD.
 
Section 3.2 Capitalization of WOD; Title to the WOD Units. On the Closing Date, immediately before the consummation of the Equity exchange, the entire authorized capital stock of WOD consisted of 1,000 Units of membership interest, at par value of $0.10, of which 1,000 Units are issued and outstanding, of which the ownership rights are stated in Schedule 1.1 which constitutes all of the WOD Units, commitments and conversion rights for equity of WOD which will be issued and outstanding. All of the WOD Units are owned of record by WOD Controlling Members. The WOD Units are the sole outstanding membership interest of WOD and there are no outstanding options, warrants, agreements, commitments, conversion rights, preemptive rights or other rights to subscribe for, purchase or otherwise acquire any units of membership interest or any un-issued or treasury Units of WOD.
 
	 
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Section 3.3 Subsidiaries and Equity Investments.
 
(a) Each Subsidiary and affiliated company of WOD is set forth on Schedule 3.3.
 
Section 3.4 Authorization and Validity of Agreements. WOD has all corporate power and authority to execute and deliver this Agreement, to perform its obligations hereunder and to consummate the transactions contemplated hereby. This Agreement constitutes the valid and legally binding obligation of WOD and is enforceable in accordance with its terms against it. Except as set forth on Schedule 3.4 WOD does not need give any notice to, make any filings with, or obtain any authorization, consent or approval of any government or governmental agency or other person in order for it to consummate the transactions contemplated by this Agreement, other than filings that may be required or permitted under states securities laws, the Securities Act and/or the Exchange Act resulting from the transfer and exchange of the WOD Units. The execution and delivery of this Agreement by WOD, and the consummation by WOD of the transactions contemplated hereby, have been duly authorized by all necessary corporate actions of WOD, and no other corporate proceedings on the part of WOD are necessary to authorize this Agreement or to consummate the transactions contemplated hereby.
 
Section 3.5 No Conflict or Violation. To WOD's best knowledge, neither the execution and delivery of this Agreement by WOD, nor the consummation by WOD of the transactions contemplated hereby will: (i) violate any provision of WOD's Charter Documents, (ii) violate any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling, charge or other restriction of any government, governmental agency, court, administrative panel or other tribunal to which WOD is subject, assuming that all consents, approvals, authorizations, filings and notifications have been obtained or made, (iii) conflict with, result in a breach of, constitute a default under, result in the acceleration of, create in any party the right to accelerate, terminate, modify or cancel, or require any notice under any agreement, contract, lease, license, instrument or other arrangement to which WOD is/are a party or by which it/they is/are bound, or to which any of its/their/his assets is subject; or (iv) result in or require the creation or imposition of any encumbrance of any nature upon or with respect to any of WOD's assets, including without limitation the WOD Units, other than such as would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
 
Section 3.6 Compliance with Laws and Other Instruments. Except as would not have a Material Adverse Effect on WOD, to its knowledge, the business and operations of WOD have been and are being conducted in accordance with all applicable foreign, federal, state and local laws, rules and regulations and all applicable orders, injunctions, decrees, writs, judgments, determinations and awards of all courts and governmental agencies and instrumentalities applicable to it. Except as would not have a Material Adverse Effect on WOD, not, and is not, to its knowledge alleged to be, in violation of, or (with or without notice or lapse of time or both) in default under, or in breach of, any term or provision of WOD Charter Documents or of any indenture, loan or credit agreement, note, deed of trust, mortgage, security agreement or other material agreement, lease, license or other instrument, commitment, obligation or arrangement to which WOD is a party or by which any of WOD' properties, assets or rights are bound or affected. To the knowledge of WOD, no other party to any material contract, agreement, lease, license, commitment, instrument or other obligation to which any of WOD are a party are (with or without notice or lapse of time or both) in material default thereunder or in material breach of any term thereof. To the knowledge of WOD, WOD is not subject to any obligation or restriction of any kind or character, nor are there, to the knowledge of WOD, any event or circumstance relating to WOD that materially and adversely affects in its business, properties, assets or prospects or that would prevent or make burdensome their performance of or compliance with all or any part of this Agreement or the consummation of the transactions contemplated hereby or thereby. "Material Adverse Effect" means, when used with respect to WOD, any change, effect or circumstance which, individually or in the aggregate, would reasonably be expected to (a) have a material adverse effect on the business, assets, financial condition or results of operations of WOD, in each case taken as a whole or (b) materially impair the ability of WOD to perform their obligations under this Agreement, excluding any change, effect or circumstance resulting from (i) the announcement, pendency or consummation of the transactions contemplated by this Agreement, (ii) changes in the United States securities markets generally, or (iii) changes in general economic, currency exchange rate, political or regulatory conditions in industries in which WOD operate.
 
	 
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Section 3.7 Brokers' Fees. WOD has no liability to pay any fees or commissions or other consideration to any broker, finder, or agent with respect to the transactions contemplated by this Agreement.
 
Section 3.8 Investment Representations. 
 
(a) The DEAC Shares will be acquired hereunder solely for the account of WOD for investment, and not with a view to the resale or distribution thereof. WOD understands and is able to bear any economic risks associated with acquiring the DEAC Shares. WOD has have full access to all the information it considers necessary or appropriate to make an informed investment decision with respect to the DEAC Shares; and
 
(b) No offer to enter into this Agreement has been made to any of the WOD Controlling Members in the United States. WOD including any of its respective affiliates or any person acting on its behalf or on behalf of any such affiliate, has engaged or will engage in any activity undertaken for the purpose of, or that reasonably could be expected to have the effect of, conditioning the markets in the United States for the DEAC Shares, including, but not limited to, effecting any sale or short sale of securities, prior to the expiration of any restricted period contained in Regulation S promulgated under the Securities Act (any such activity being defined herein as a "Directed Selling Effort"). To the best knowledge of WOD, this Agreement and the transactions contemplated herein are not part of a plan or scheme to evade the registration provisions of the Securities Act, and the DEAC Shares are being acquired for investment purposes by WOD. WOD agrees that all offers and sales of the DEAC Shares from the date hereof and through the expiration of any restricted period set forth in Rule 903 of Regulation S (as the same may be amended from time to time hereafter) shall not be made to U.S. Persons (within the meaning of Regulation S) or for the account or benefit of U.S. Persons and shall otherwise be made in compliance with the provisions of Regulation S and any other applicable provisions of the Securities Act. Neither WOD nor the WOD Shareholders, including any of its representatives has conducted any Directed Selling Effort as that term is used and defined in Rule 902 of Regulation S and neither of them nor any of their respective representatives will engage in any such Directed Selling Effort within the United States through the expiration of any restricted period set forth in Rule 903 of Regulation S.
 
Section 3.9 Ownership of Shares. WOD Controlling Members are both the record and beneficial owner of its respective WOD Units as detailed on Schedule 1.3 attached hereto, and are not the record or beneficial owners of any other WOD Units not stated. WOD has and shall transfer at the Closing, good and marketable title to the WOD Units, free and clear of all liens, claims, charges, encumbrances, pledges, mortgages, security interests, options, rights to acquire, proxies, voting trusts or similar agreements, restrictions on transfer or adverse claims of any nature whatsoever ("Liens").
 
Section 3.10 Pre-emptive Rights. At Closing, WOD did not have any pre-emptive rights or any other rights to acquire any WOD Units that have not been waived or exercised.
 
Section 3.11 Disclosure. This Agreement, the schedules hereto and any certificate attached hereto or delivered in accordance with the terms hereof by or on behalf of WOD in connection with the transactions contemplated by this Agreement, when taken together, do not contain any untrue statement of a material fact or omit any material fact necessary in order to make the statements contained herein and/or therein not misleading.
 
Section 3.12 Title to and Condition of Properties. WOD owns or holds under valid leases or other rights to use all real property, plants, machinery and equipment necessary for the conduct of the business of WOD as presently conducted, except where the failure to own or hold such property, plants, machinery and equipment would not have a Material Adverse Effect on WOD. The material buildings, plants, machinery and equipment necessary for the conduct of the business of WOD as presently conducted are structurally sound, are in good operating condition and repair and are adequate for the uses to which they are being put, in each case, taken as a whole, and none of such buildings, plants, machinery or equipment are in need of maintenance or repairs, except for ordinary, routine maintenance and repairs that are not material in nature or cost.
 
	 
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Section 3.13 Absence of Undisclosed Liabilities. Except as set forth on Schedule 3.13, WOD has no debt, obligation or liability (whether accrued, absolute, contingent, liquidated or otherwise, whether due or to become due, whether or not known to WOD) arising out of any transaction entered into at or prior to the Closing Date or any act or omission at or prior to the Closing Date, except to the extent set forth on or reserved against on WOD unaudited consolidated financial statements for the fiscal years ended December 31, 2015, including an interim financial statement ending June 30, 2016. WOD has not incurred any liabilities or obligations under agreements entered into, except in the usual and ordinary course of business since its inception on or about February 27, 2014.
 
Section 3.14 Change. Except as set forth on schedule 3.14, WOD has not, since December 31, 2015:
 
(a) Ordinary Course of Business. Conducted its business or entered into any transaction other than in the usual and ordinary course of business, except for this Agreement.
 
(b) Adverse Changes. Suffered or experienced any change in, or affecting, their condition (financial or otherwise), properties, assets, liabilities, business, operations, results of operations or prospects other than changes, events or conditions in the usual and ordinary course of their business, none of which would have a Material Adverse Effect:
 
(c) Loans. Made any loans or advances to any Person (for purposes of this Agreement, "Person" means all natural persons, corporations, business trusts, associations, companies, partnerships, limited liability companies, joint ventures and other entities, governments, agencies and political subdivisions) other than travel advances and reimbursement of expenses made to employees, officers and directors in the ordinary course of business;
 
(d) Liens. Created or permitted to exist any Lien on any material property or asset of any of WOD, other than (a) Liens for taxes not yet payable or in respect of which the validity thereof is being contested in good faith by appropriate proceedings and for the payment of which the relevant party has made adequate reserves; (b) Liens in respect of pledges or deposits under workmen's compensation laws or similar legislation, carriers, warehousemen, mechanics, laborers and material men and similar Liens, if the obligations secured by such Liens are not then delinquent or are being contested in good faith by appropriate proceedings conducted and for the payment of which the relevant party has made adequate reserves; (c) statutory Liens incidental to the conduct of the business of the relevant party which were not incurred in connection with the borrowing of money or the obtaining of advances or credits and that do not in the aggregate materially detract from the value of its property or materially impair the use thereof in the operation of its business; and (d) Liens that would not have a Material Adverse Effect ("Permitted Liens");
 
(e) Membership Interest. Issued, sold, disposed of or encumbered, or authorized the issuance, sale, disposition or encumbrance of, or granted or issued any option to acquire any units of their membership interest or any other of their securities or any equity security of any class of WOD, or altered the term of any of their outstanding securities or made any change in their outstanding units of membership interest or their capitalization, whether by reason of reclassification, recapitalization, unit split, combination, exchange or readjustment of units, dividends or otherwise;
 
(f) Dividends. Declared, set aside, made or paid any dividend or other distribution to any of their members;
 
	 
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(g) Material WOD Contracts. Terminated or modified any and all agreements, contracts, arrangements, leases, commitments or otherwise, of WOD, of the type and nature that is required to be filed with the SEC (each a "Material WOD Contract"), except for termination upon expiration in accordance with the terms thereof or as set forth in Schedule 3.14(g);
 
(h) Claims. Released, waived or cancelled any claims or rights relating to or affecting any of WOD in excess of US $10,000 in the aggregate or instituted or settled any Action involving in excess of US $10,000 in the aggregate;
 
(i) Discharged Liabilities. Paid, discharged or satisfied any claim, obligation or liability in excess of US $10,000 in the aggregate, except for liabilities incurred prior to the date of this Agreement in the ordinary course of business;
 
(j) Indebtedness. Created, incurred, assumed or otherwise become liable for any indebtedness in excess of US $10,000 in the aggregate, other than professional fees;
 
(k) Guarantees. Guaranteed or endorsed in a material amount any obligation or net worth of any Person;
 
(l) Acquisitions. Acquired the capital stock or other securities or any ownership interest in, or substantially all of the assets of, any other Person;
 
(m) Accounting. Changed their method of accounting or the accounting principles or practices utilized in the preparation of their financial statements, other than as required by U.S. GAAP; and
 
(n) Agreements. Except as set forth on Schedule 3.14(n), entered into any agreement, or otherwise obligated themselves, to do any of the foregoing.
 
Section 3.15 Material WOD Contracts. WOD has made available to DEAC and the DEAC Controlling Shareholder prior to the date of this Agreement, true, correct and complete copies of each written Material WOD Contract, including each amendment, supplement and modification thereto.
 
(a) No Defaults. Each Material WOD Contract is a valid and binding agreement of WOD and is in full force and effect. Except as would not have a Material Adverse Effect, WOD is not in material breach or default of any Material WOD Contract to which it is a party and, to the knowledge of WOD, no other party to any Material WOD Contract are in breach or default thereof. Except as would not have a Material Adverse Effect, no event has occurred or circumstance exists that (with or without notice or lapse of time) would (a) contravene, conflict with or result in a violation or breach of, or become a default or event of default under, any provision of any Material WOD Contract or (b) permit WOD or any other Person the right to declare a default or exercise any remedy under, or to accelerate the maturity or performance of, or to cancel, terminate or modify any Material WOD Contract. WOD has not received notice of the pending or threatened cancellation, revocation or termination of any Material WOD Contract to which it is a party. There are no renegotiations of, or attempts to renegotiate, or outstanding rights to renegotiate any material terms of any Material WOD Contract.
 
	 
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Section 3.16 Material Assets. The financial statements of WOD reflect the material properties and assets (real and personal) owned or leased by WOD.
 
Section 3.17 Litigation; Orders. Except as set forth on Schedule 3.17, there are no Actions (whether U.S. or non-U.S. federal, state, local or foreign) pending or, to the knowledge of WOD, threatened against or affecting any of WOD or any of WOD's properties, assets, business or employees. To the knowledge of WOD, there are no facts that might result in or form the basis for any such Action in WOD. To the knowledge of WOD, WOD is not subject to any orders.
 
Section 3.18 Licenses. Except as would not have a Material Adverse Effect, WOD possess from the appropriate Governmental Authority all licenses, permits, authorizations, approvals, franchises and rights that are necessary for WOD to engage in its business as currently conducted and to permit WOD to own and use its properties and assets in the manner in which it currently owns and uses such properties and assets (collectively, "WOD Permits"), including, but not limited to WOD Permits related to the WOD Rights. WOD has not received notice from any Governmental Authority or other Person that it is lacking any license, permit, authorization, approval, franchise or right necessary for WOD to engage in their business as currently conducted and to permit WOD to own and use its properties and assets in the manner in which it currently owns and uses such properties and assets. Except as would not have a Material Adverse Effect, WOD Permits are valid and in full force and effect. Except as would not have a Material Adverse Effect, no event has occurred or to the knowledge of WOD circumstance exists that may (with or without notice or lapse of time): (a) constitute or result, directly or indirectly, in a material violation of or a failure to comply with any WOD Permit; or (b) result, directly or indirectly, in the revocation, withdrawal, suspension, cancellation or termination of, or any modification to, any WOD Permit. WOD has not received notice from any Governmental Authority or any other Person regarding: (a) any actual, alleged, possible or potential contravention of any WOD Permit; or (b) any actual, proposed, possible or potential revocation, withdrawal, suspension, cancellation, termination of, or modification to, any WOD Permit. All applications required to have been filed for the renewal of such WOD Permits have been duly filed on a timely basis with the appropriate Persons, and all other filings required to have been made with respect to such WOD Permits have been duly made on a timely basis with the appropriate Persons. All WOD Permits are renewable by their terms or in the ordinary course of business without the need to comply with any special qualification procedures or to pay any amounts other than routine fees or similar charges, all of which have, to the extent due, been duly paid.
 
Section 3.19 Interested Party Transactions. Except as disclosed on Schedule 3.19, no officer, director or stockholder of any WOD or any affiliate or "associate" (as such term are defined in Rule 405 of the SEC under the Securities Act) of any such Person, have or have had, either directly or indirectly, (1) an interest in any Person which (a) furnishes or sells services or products which are furnished or sold by WOD, or (b) purchases from or sells or furnishes to, or proposes to purchase from, sell to or furnish any of WOD any goods or services; or (2) a beneficial interest in any contract or agreement to which WOD are a party or by which they may be bound or affected.
 
Section 3.21 Intellectual Property. Except as set forth on Schedule 3.21 hereto, WOD does not own, use or license any Intellectual Property in their business as presently conducted. For purposes of this Agreement, "Intellectual Property" means all industrial and intellectual property, including, without limitation, all U.S. and non-U.S. patents, patent applications, patent rights, trademarks, trademark applications, common law trademarks, Internet domain names, trade names, service marks, service mark applications, common law service marks, and the goodwill associated therewith, copyrights, in both published and unpublished works, whether registered or unregistered, copyright applications, franchises, licenses, know-how, trade secrets, technical data, designs, customer lists, confidential and proprietary information, processes and formulae, all computer software programs or applications, layouts, inventions, development tools and all documentation and media constituting, describing or relating to the above, including manuals, memoranda, and records, whether such intellectual property has been created, applied for or obtained anywhere throughout the world.
 
	 
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Section 3.22 Units or Unit Option Plans; Employee Benefits of WOD.
 
(a) Except as set forth on Schedule 3.22 hereto, WOD has no unit or unit option plans providing for the grant by WOD of unit options to directors, officers or employees of WOD.
 
(b) Except as set forth on Schedule 3.22 hereto, WOD has no employee benefit plans or arrangements covering their present and former employees or providing benefits to such persons in respect of services provided to WOD.
 
(c) Neither the consummation of the transactions contemplated hereby alone, nor in combination with another event, with respect to each director, officer, employee and consultant of WOD, will result in (a) any payment (including, without limitation, severance, unemployment compensation or bonus payments) becoming due from WOD, (b) any increase in the amount of compensation or benefits payable to any such individual or (c) any acceleration of the vesting or timing of payment of compensation payable to any such individual. No agreement, arrangement or other contract of WOD provides benefits or payments contingent upon, triggered by, or increased as a result of a change in the ownership or effective control of WOD.
 
Section 3.23 Environmental and Safety Matters. Except as set forth on Schedule 3.23 and except as would not have a Material Adverse Effect:
 
(a) WOD has at all times been and is in compliance with all Environmental Laws (as defined below) applicable to WOD.
 
(b) To WOD knowledge, there are no Actions pending or threatened against WOD alleging the violation of any Environmental Law (as defined below) or Environmental Permit applicable to WOD or alleging that WOD is potentially responsible parties for any environmental site contamination.
 
(c) To WOD knowledge, neither this Agreement nor the consummation of the transactions contemplated by this Agreement shall impose any obligations to notify or obtain the consent of any Governmental Authority or third Persons under any Law or other requirement relating to the environment, natural resources, or public or employee health and safety ("Environmental Laws") applicable to WOD.
 
Section 3.24 Board Recommendation. The Board of Directors of WOD, at a meeting duly called and held, has determined that this Agreement and the transactions contemplated by this Agreement are advisable and in the best interests of WOD's members and has duly authorized this Agreement and the transactions contemplated by this Agreement.
 
Pursuant to such meeting, the Board of Directors, confirmed that WOD was aware that DEAC is delinquent in its SEC filings, as set forth in Schedule 2.10, had an opportunity to ask questions and receive answers from DEAC, and review all current documentation WOD requested from DEAC.
 
	 
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ARTICLE IV
 
COVENANTS
 
Section 4.1 Certain Changes and Conduct of Business.
 
(a) From and after the date of this Agreement and until the Third and Final Closing Date, DEAC (i) shall conduct its business solely in the ordinary course consistent with past practices that would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect and, in a manner consistent with all representations, warranties or covenants of DEAC contained herein; and (ii) use commercially reasonable efforts to maintain and preserve intact its business organization, to retain the services of its current officers and key employees, and to preserve the good will of its customers, suppliers and other Persons with whom it has business relationships, and without the prior written consent of WOD (which may be withheld for any reason or no reason), will not:
 
	 
	(i)	except as provided in Section 4.6 hereof, make any change in its Charter Documents; issue any additional shares of capital stock or equity securities or grant any option, warrant or right to acquire any capital stock or equity securities or issue any security convertible into or exchangeable for its capital stock or alter in any material term of any of its outstanding securities or make any change in its outstanding shares of capital stock or its capitalization, whether by reason of a reclassification, recapitalization, stock split or combination, exchange or readjustment of shares, stock dividend or otherwise; redeem, purchase or otherwise acquire, directly or indirectly, any shares of its capital stock or any securities convertible or exchangeable into or exercisable for any shares of its capital stock 
	 
	  
	 

	 
	(ii)	except as provided in Section 4.6 hereof:
	 
	  
	 

	 
		A. incur, assume or guarantee any indebtedness for borrowed money, issue any notes, bonds, debentures or other corporate securities or grant any option, warrant or right to purchase any thereof; or
	 
	  
	 

	 
		B. issue any securities convertible or exchangeable for debt or equity securities of DEAC. 
	 
	  
	 

	 
	(iii)	make or commit to make any material capital expenditures;
	 
	  
	 

	 
	(iv)	increase the compensation or benefits payable or to become payable to any of its directors, officers or employees;
	 
	  
	 

	 
	(v)	grant any severance or termination pay to any of its directors, officers or employees or enter into any new employment or severance agreement with any of its directors, officers or employees;
	 
	  
	 

	 
	(vi)	acquire, by merger, consolidation, acquisition of equity interests or assets, or otherwise, any business or any corporation, partnership, limited liability company, joint venture or other business organization or division thereof;
	 
	  
	 

	 
	(vii)	sell, lease, license, transfer, pledge, encumber, grant or dispose of any material Intellectual Property Rights or any other assets of the DEAC;
	 
	  
	 

	 
	(viii)	enter into any material contract or terminate, cancel or amend in any material respect any such contract of DEAC; 

 
	 
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	(ix)	guarantee any indebtedness for borrowed money or any other obligation of any other person;
	 
	  
	 

	 
	(x)	make any loan, advance or capital contribution to or investment in any person;
	 
	  
	 

	 
	(xi)	make any change in any method of accounting or accounting principle, method, estimate or practice; 
	 
	  
	 

	 
	(xii)	commit itself to do any of the foregoing; or
	 
	  
	 

	 
	(xiii)	will spin off any operating subsidiaries.

 
(b) From and after the date of this Agreement and until the third and final closing, WOD will cause WOD and each of WOD Subsidiaries will:
 
	 
	(i)	continue to maintain, in all material respects, its properties in accordance with present practices in a condition suitable for its current use;
	 
	  
	 

	 
	(ii)	file, when due or required, federal, state, foreign and other tax returns and other reports required to be filed and pay when due all taxes, assessments, fees and other charges lawfully levied or assessed against it, unless the validity thereof is contested in good faith and by appropriate proceedings diligently conducted;
	 
	  
	 

	 
	(iii)	continue to conduct its business in the ordinary course consistent with past practices;
	 
	  
	 

	 
	(iv)	keep its books of account, records and files in the ordinary course and in accordance with existing practices; and
	 
	  
	 

	 
	(v)	make commercial reasonable efforts to maintain existing business relationships with suppliers.

 
(c) From and after the date of this Agreement, WOD will not, without the prior written consent of DEAC (not to be unreasonably withheld, conditioned or delayed), sell, transfer, convey, assign or otherwise dispose of, or contract or otherwise agree to sell, transfer, convey, assign or otherwise dispose of any of the WOD Units except as provided by this Agreement until the third Closing has been completed.
 
Section 4.2 Access to Properties and Records. WOD shall afford to DEAC's accountants, counsel and authorized representatives, and DEAC shall afford to each of the WOD Shareholder's and WOD's accountants, counsel and authorized representatives, full access during normal business hours upon prior notice throughout the period prior to the Closing Date (or the earlier termination of this Agreement) to all of such parties' properties, books, contracts, commitments and records (the "Disclosing Party") and, during such period, shall furnish promptly to the requesting party all other reasonable information concerning the other party's business, properties and personnel as the requesting party may reasonably request, provided that no investigation or receipt of information pursuant to this Section 4.2 shall affect any representation or warranty of or the conditions to the obligations of any party; provided, further, however, that the Disclosing Party shall not be obligated to provide such access or information if the Disclosing Party determines, in its reasonable judgment, that doing so would violate applicable law or any contract or obligation of confidentiality owing to a third party, jeopardize the protection of an attorney-client privilege or expose the Disclosing Party to risk of liability for disclosure of sensitive or personal information.
 
	 
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Section 4.3 Negotiations. From and after the date hereof, until the earlier of the Closing, or the termination of this Agreement, each of DEAC and WOD agrees that it shall not, and shall use its commercially reasonable efforts to cause its officers or directors (subject to such director's fiduciary duties), and anyone acting on its behalf, directly or indirectly, encourage, solicit, engage in discussions or negotiations with, or provide any information to, any person, firm, or other entity or group concerning any merger, sale of substantial assets, purchase or sale of shares of capital stock or similar transaction involving any party to this agreement.
 
Section 4.4 Consents and Approvals. The parties shall: (i) use their reasonable commercial efforts to obtain all necessary consents, waivers, authorizations and approvals of all governmental and regulatory authorities, domestic and foreign, and of all other persons, firms or corporations required in connection with the execution, delivery and performance by them of this Agreement; and (ii) diligently assist and cooperate with each party in preparing and filing all documents required to be submitted by a party to any governmental or regulatory authority, domestic or foreign, in connection with such transactions and in obtaining any governmental consents, waivers, authorizations or approvals which may be required to be obtained connection in with such transactions.
 
Section 4.5 Public Announcement. Unless otherwise required by applicable law, the parties hereto shall consult with each other before issuing any press release or otherwise making any public statements with respect to this Agreement and shall not issue any such press release or make any such public statement prior to such consultation and approval of the other party.
 
Section 4.6 Permitted Equity Issuances. From and after the date of this Agreement until the Closing Date, DEAC shall not issue any additional shares or shares of its capital stock, nor shall WOD issue any additional units or units of membership interest, except as required in order to obtain the Interim Financing set forth in Schedule 1.3(a) set forth herein, and subject to WOD approval.
 
Section 4.7 Notices of Certain Events. DEAC shall notify WOD promptly of (i) any communication from any Person alleging that the consent of such Person (or another Person) is or may be required in connection with the transactions contemplated by this Agreement, (ii) subject to any legal requirements as to confidentiality, any communication from any governmental entity in connection with the transactions contemplated by this Agreement, (iii) any legal actions threatened in writing or commenced against or otherwise affecting DEAC or (iv) any material event, change, occurrence, circumstance or development between the date of this Agreement and the Closing Date that makes any of the representations or warranties of the DEAC contained in this Agreement untrue or inaccurate.
 
Section 4.8 Registration Rights. Following the Closing Date, WOD Controlling Members as the holders of New DEAC Shares shall have "demand" registration rights, and unlimited Form S-3 registrations rights, and piggyback rights subject to customary underwriters' cutbacks as further set forth in the Registration Rights Agreement attached hereto as Exhibit 4.8. 
 
ARTICLE V
 
CONDITIONS TO OBLIGATIONS OF WOD 
 
The obligations of WOD to consummate the transactions contemplated by this Agreement are subject to the fulfillment, at or before the Closing Date, of the following conditions, any one or more of which may be waived by WOD upon the mutual written consent of WOD and DEAC.
 
	 
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Section 5.1 Representations and Warranties of DEAC and the DEAC Controlling Shareholders. All representations and warranties made by DEAC and the DEAC Controlling Shareholders in this Agreement shall be true and correct on and as of the Closing Date as if again made by DEAC and the DEAC Controlling Shareholders on and as of such date and insofar as any inconsistency or inaccuracy does not or will not have a DEAC Material Adverse Effect, except insofar as the representations and warranties relate expressly and solely to a particular date or period, in which case, subject to the limitations applicable to the particular date or period, they will be true and correct on and as of the Closing Date with respect to such date or period.
 
Section 5.2 Agreements and Covenants. Each of DEAC and the DEAC Controlling Shareholder shall have performed and complied in all material respects with all agreements and covenants required by this Agreement to be performed or complied with by on or prior to the Closing Date.
 
Section 5.3 Consents and Approvals. All consents, waivers, authorizations and approvals of any governmental or regulatory authority, domestic or foreign, and of any other person, firm or corporation, required in connection with the execution, delivery and performance of this Agreement shall be in full force and effect on the Closing Date.
 
Section 5.4 No Violation of Orders. No preliminary or permanent injunction or other order issued by any court or governmental or regulatory authority, domestic or foreign, nor any statute, rule, regulation, decree or executive order promulgated or enacted by any government or governmental or regulatory authority, which declares this Agreement invalid in any respect or prevents the consummation of the transactions contemplated hereby, or which materially and adversely affects the assets, properties, operations, prospects, net income or financial condition of DEAC shall be in effect; and no action or proceeding before any court or governmental or regulatory authority, domestic or foreign, shall have been instituted or threatened by any government or governmental or regulatory authority, domestic or foreign, or by any other person, or entity which seeks to prevent or delay the consummation of the transactions contemplated by this Agreement or which challenges the validity or enforceability of this Agreement.
 
Section 5.5 Other Closing Documents. Escrow Agent and WOD, as applicable. shall have received such certificates, instruments and documents in confirmation of the representations and warranties of DEAC and the DEAC Controlling Shareholder, including without limitations received such certificates, instruments and documents set forth in Section 1.5, DEAC's and the DEAC Controlling Shareholder' performance of its obligations hereunder, and/or in furtherance of the transactions contemplated by this Agreement as WOD and/or its respective counsel may reasonably request.
 
Section 5.6 Interim Financing. DEAC shall have completed the Interim Financing as set forth in Schedule 1.4. 
 
Section 5.7 No Material Adverse Effect. No effect, event, change, occurrence, circumstance or development shall have occurred or exist that has had or would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. 
 
Section 5.8 Public Report. DEAC has timely filed with the SEC all forms, reports, schedules, statements and other documents required to be filed by DEAC with the SEC as of the Closing Date. 
 
Section 5.9 Appointment of New Directors and Officers. At the First, Second and Third Closings, (i) WOD's designees shall be duly appointed as a certain number of members to the Board of Directors of DEAC, and officers of DEAC, pursuant to Schedule 1.4, and in accordance with DEAC's corporate governance policies and procedures set forth in Section 5.10 below, and (ii) subject to the effectiveness of a Schedule 14F-1 filed with the SEC on each such Closing Date.
 
	 
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Section 5.10 Corporate Governance. After the Third Closing, but no later than December 31, 2016, DEAC agrees to develop and adopt a new corporate governance policies and procedures in the form of a Corporate Governance Policies and Procedures Manual (the "Corporate Governance Manual"), with governance information which will outline the Company's corporate and public market obligations to shareholders, in accordance with the applicable laws and policies of the Securities and Exchange Commission ("SEC"), Financial Industry Regulatory Authority ("FINRA"), and the Company's relevant stock market exchange of the United States of America. The purpose of the Corporate Governance Manual is to provide better corporate guidelines for the Company's management pertaining not only to the day-to-day affairs of the Company, but also the proper conduct of its officers and directors, and further provide greater transparency for all Company shareholders in any and all business dealings of the Company, including such that may involve its officers and directors personally.
 
Section 5.10 Over-the-Counter Listing. Subject to completing the necessary documentation, submitting required applications filings and receiving approvals thereof, DEAC shall continue to be quoted on an Over-the-Counter (OTC) exchange in the U.S. 
 
Section 5.11 Frustration of Closing Conditions. None of the parties to this Agreement may rely on the failure of any condition set forth in this Article V to be satisfied if such failure was caused by such party's failure to fulfill any of its obligations under this Agreement.
 
ARTICLE VI
 
CONDITIONS TO OBLIGATIONS OF DEAC
 
The obligations of DEAC to consummate the transactions contemplated by this Agreement are subject to the fulfillment, at or before the Closing Date, of the following conditions, any one or more of which may be waived by upon the mutual written consent of DEAC and WOD: 
 
Section 6.1 Representations and Warranties of WOD. All representations and warranties made by WOD in this Agreement shall be true and correct on and as of the Closing Date as if again made by WOD, as applicable, on and as of such date and insofar as any inconsistency or inaccuracy does not or will not have a Material Adverse Effect, except insofar as the representations and warranties relate expressly and solely to a particular date or period, in which case, subject to the limitations applicable to the particular date or period, they will be true and correct on and as of the Closing Date with respect to such date or period.
 
Section 6.2 Agreements and Covenants. WOD shall have performed and complied in all material respects with all agreements and covenants required by this Agreement to be performed or complied with by each of them on or prior to the Closing Date.
 
Section 6.3 Consents and Approvals. All consents, waivers, authorizations and approvals of any governmental or regulatory authority, domestic or foreign, and of any other person, firm or corporation, required in connection with the execution, delivery and performance of this Agreement, shall have been duly obtained and shall be in full force and effect on the Closing Date.
 
	 
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Section 6.4 No Violation of Orders. No preliminary or permanent injunction or other order issued by any court or other governmental or regulatory authority, domestic or foreign, nor any statute, rule, regulation, decree or executive order promulgated or enacted by any government or governmental or regulatory authority, domestic or foreign, that declares this Agreement invalid or unenforceable in any respect or which prevents the consummation of the transactions contemplated hereby, or which materially and adversely affects the assets, properties, operations, prospects, net income or financial condition of WOD, taken as a whole, shall be in effect; and no action or proceeding before any court or government or regulatory authority, domestic or foreign, shall have been instituted or threatened by any government or governmental or regulatory authority, domestic or foreign, or by any other person, or entity which seeks to prevent or delay the consummation of the transactions contemplated by this Agreement or which challenges the validity or enforceability of this Agreement.
 
Section 6.5 Other Closing Documents. DEAC shall have received such certificates, instruments and documents in confirmation of the representations and warranties of WOD, the performance of WOD, and respective obligations hereunder and/or in furtherance of the transactions contemplated by this Agreement as DEAC or its counsel may reasonably request.
 
ARTICLE VII
 
POST-CLOSING AGREEMENTS
 
Section 7.1 Consistency in Reporting. Each party hereto agrees that if the characterization of any transaction contemplated in this agreement or any ancillary or collateral transaction is challenged, each party hereto will testify, affirm and ratify that the characterization contemplated in such agreement was the characterization intended by the party; provided, however, that nothing herein shall be construed as giving rise to any obligation if the reporting position is determined to be incorrect by final decision of a court of competent jurisdiction.
 
Section 7.2 Schedule 14F. If required, DEAC covenants and agrees to file a Schedule 14F-1 with the SEC in order to disclose the change of control in the Board of Directors of DEAC to occur 10 (ten) days after the filing of such Schedule 14F-1 pursuant to the Equity exchange. 
 
ARTICLE VIII
 
MODIFICATION OF TRANSACTION TERMS, 
TERMINATION AND ABANDONMENT
 
Section 8.1 Modification of Transaction Terms. In the event, the Equity exchange contemplated herein cannot be completed in the form and substance as set forth in the Section 1.1. hereinabove, the terms and conditions of this entire Agreement shall survive and remain in effect, and any new structure contemplated shall abide by the same terms and conditions set forth in Schedule 1.1, 1.2, 1.3 and 1.4 (the "Modification of Transaction Terms") hereinbelow, in order to reflect the applicable transaction adjustments. 
 
	 
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Section 8.2 Methods of Termination. This Agreement may be terminated and the transactions contemplated hereby may be abandoned at any time before the Closing:
 
(a) By the mutual written consent of WOD and DEAC;
 
(b) By DEAC, on a material breach on the part of WOD of any representation, warranty, covenant or agreement set forth in this Agreement, or if any representation or warranty of WOD shall become untrue, in either case such that any of the conditions set forth in Article VII hereof would not be satisfied (a "WOD Breach"), and such breach, if capable of cure, has not been cured within twenty (20) business days after receipt by WOD of a written notice from DEAC setting forth in detail the nature of such WOD Breach;
 
(c) By WOD, upon a material breach on the part of DEAC of any representation, warranty, covenant or agreement set forth in this Agreement, or, if any representation or warranty of DEAC shall become untrue, in either case such that any of the conditions set forth in Article VI hereof would not be satisfied (a "DEAC Breach"), and such breach, if capable of cure, has not been cured within twenty (20) business days after receipt by DEAC of a written notice from WOD setting forth in detail the nature of such DEAC Breach;
 
(d) By either DEAC or WOD, if the Second Closing shall not have consummated before October 1, 2016, or if after the Second Closing, the Third Closing shall not have consummated before December 31, 2016; provided, however, that this Agreement may be extended by written notice of either WOD or DEAC if the Second Closing or Third Closing shall not have been consummated as a result of WOD or DEAC having failed to receive all required regulatory approvals or consents with respect to this transaction or as the result of the entering of an order as described in this Agreement; and further provided, however, that the right to terminate this Agreement under this Section 8.2(d) shall not be available to any party whose failure to fulfill any obligations under this Agreement has been the cause of, or resulted in, the failure of the Closing to occur on or before this date; 
 
(e) By either WOD or DEAC if a court of competent jurisdiction or governmental, regulatory or administrative agency or commission shall have issued an order, decree or ruling or taken any other action (which order, decree or ruling the parties hereto shall use its best efforts to lift), which permanently restrains, enjoins or otherwise prohibits the transactions contemplated by this Agreement;
 
(f) By either WOD or DEAC if the other party breaches any of its covenants in Section 4.3 hereof in any material respect; OR 
 
(g) By either WOD if DEAC Material Adverse Effect occurs following the date hereof.
 
Section 8.3 Procedure Upon Termination. In the event of termination and abandonment of this Agreement pursuant to Section 8.2, written notice thereof shall forthwith be given by the terminating parties to the other parties and this Agreement shall terminate and the transactions contemplated hereby shall be abandoned, without further action. If this Agreement is terminated as provided herein, no party to this Agreement (or any stockholder, director, officer, employee, agent or representative of such party) shall have any liability or further obligation to any other party to this Agreement; provided, however, that no termination of this Agreement pursuant to this Article VIII shall relieve any party of liability for a breach of any provision of this Agreement occurring before such termination; provided, further, that if such termination results from the intentional (a) failure of any party to perform its obligations or (b) breach by any party of its representations or warranties contained in this Agreement, then such party shall be fully liable for any liabilities incurred or suffered by the other parties as a result of such intentional failure or breach. The provisions of Section 5.17, Section 8.3 and Article VIII shall survive any termination of this Agreement. 
 
	 
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Notwithstanding the foregoing, on the date of termination, DEAC shall assign and transfer any and all ownership interest in WOD Units back to the WOD Controlling Members, and WOD Controlling Members shall assign and transfer any and all ownership interest in New DEAC Shares back to DEAC for cancellation and returned of such shares to DEAC's treasury. In the event, WOD has arranged and completed any of the Interim Financings as set forth in Schedule 1.4(c), then DEAC shall be required to abide by the terms of the Interim Financings, with neither party having any further obligations to one another thereafter, except as otherwise provided for herein.
 
ARTICLE IX
 
MISCELLANEOUS PROVISIONS
 
Section 9.1 Survival of Provisions. The respective representations, warranties, covenants and agreements of each of the parties to this Agreement (except covenants and agreements which are expressly required to be performed and are performed in full on or before each Closing Date) shall expire on each Closing Date, as provided for herein. In the event of a breach of any of such representations, warranties or covenants, the party to whom such representations, warranties or covenants have been made shall have all rights and remedies for such breach available to it under the provisions of this Agreement or otherwise, whether at law or in equity, regardless of any disclosure to, or investigation made by or on behalf of such party on or before each such Closing Date.
 
Section 9.2 Indemnification.
 
1. The DEAC agrees to indemnify and hold harmless WOD and its Affiliates and their respective directors, officers, trustees, members, managers, employees and agents, and their respective successors and assigns, from and against any and all losses, claims, damages, liabilities and expenses (including without limitation reasonable attorney fees and disbursements and other expenses incurred in connection with investigating, preparing or defending any action, claim or proceeding, pending or threatened and the costs of enforcement thereof) (collectively, "Losses") to which such Person may become subject as a result of any breach of representation, warranty, covenant or agreement made by or to be performed on the part of the Company under this Agreement and will reimburse any such Person for all such amounts as they are incurred by such Person. 
 
2. WOD and the WOD Controlling Members, jointly and severally, agrees to indemnify and hold harmless the DEAC and its Affiliates and their respective directors, officers, employees and agents, and their respective successors and assigns, from and against any and all Losses to which such Person may become subject as a result of any breach of representation, warranty, covenant or agreement made by or to be performed on the part of WOD under this Agreement and will reimburse any such Person for all such amounts as they are incurred by such Person.
 
	 
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Section 9.3 Publicity. No party shall cause the publication of any press release or other announcement with respect to this Agreement or the transactions contemplated hereby without the consent of the other parties, unless a press release or announcement is required by law. If any such announcement or other disclosure is required by law, the disclosing party agrees to give the non-disclosing parties prior notice and an opportunity to comment on the proposed disclosure.
 
Section 9.4 Successors and Assigns. This Agreement shall inure to the benefit of, and be binding upon, the parties hereto and their respective successors and assigns; provided, however, that no party shall assign or delegate any of the obligations created under this Agreement without the prior written consent of the other parties.
 
Section 9.5 Fees and Expenses. Except as otherwise expressly provided in this Agreement, all legal and other fees, costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such fees, costs or expenses.
 
Section 9.6 Notices. All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed to have been given or made if in writing and delivered personally or sent by registered or certified mail (postage prepaid, return receipt requested), by facsimile (with written confirmation of transmission) or by electronic mail, to the parties at the following addresses:
 
If to WOD to:
 
WOD Market LLC
3700 E. Jewell Ave. #319
Denver, CO 80210
Attn: Taryn Watson, President
Phone: (720) 432-6859
E-Mail: taryn.watson@thewodmarket.com
 
If to DEAC and/or the DEAC Controlling Shareholders, to:
 
ELITE DATA SERVICES INC.
4447 N. Central Expressway
Suite 110-135
Dallas, TX 75205
Attn: Chief Executive Officer
Phone: (972) 885-3981
E-Mail: corp@edscompanies.com 
 
	 
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or to such other persons or at such other addresses as shall be furnished by any party by like notice to the others, and such notice or communication shall be deemed to have been given (a) if delivered by hand or international courier service, when such delivery is made at the address specified in this Section 9.6, (b) if delivered by facsimile, when such facsimile is transmitted to the facsimile number specified in this Section 9.6 and appropriate confirmation is received, or (c) if delivered by electronic mail, when transmitted to the e-mail address specified in this Section 9.6 and appropriate confirmation is received. No change in any of such addresses shall be effective insofar as notices under this Section 9.6 are concerned unless such notice of such change shall have been given to such other party hereto as provided in this Section 9.6.
  
Section 9.7 Entire Agreement. This Agreement, together with the exhibits hereto, represents the entire agreement and understanding of the parties with reference to the transactions set forth herein and no representations or warranties have been made in connection with this Agreement other than those expressly set forth herein or in the exhibits, certificates and other documents delivered in accordance herewith. This Agreement supersedes all prior negotiations, discussions, correspondence, communications, understandings and agreements between the parties relating to the subject matter of this Agreement and all prior drafts of this Agreement, all of which are merged into this Agreement. No prior drafts of this Agreement and no words or phrases from any such prior drafts shall be admissible into evidence in any action or suit involving this Agreement.
 
Section 9.8 Severability. This Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall not affect the validity or enforceability of this Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid or unenforceable term or provision, the parties hereto intend that there shall be added as a part of this Agreement a provision as similar in terms to such invalid or unenforceable provision as may be possible so as to be valid and enforceable.
 
Section 9.9 Titles and Headings. The Article and Section headings contained in this Agreement are solely for convenience of reference and shall not affect the meaning or interpretation of this Agreement or of any term or provision hereof.
 
Section 9.10 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall be considered one and the same agreement.
 
Section 9.11 Convenience of Forum; Consent to Jurisdiction. The parties to this Agreement, acting for themselves and for their respective successors and assigns, without regard to domicile, citizenship or residence, hereby expressly and irrevocably elect as the sole judicial forum for the adjudication of any matters arising under or in connection with this Agreement, and consent and subject themselves to the jurisdiction of, the courts of the State of New York located in the Southern District of the New York, and/or the United States District Court located in that jurisdiction, in respect of any matter arising under this Agreement. Service of process, notices and demands of such courts may be made upon any party to this Agreement by personal service at any place where it may be found or giving notice to such party as provided in Section 9.6.
 
	 
	29

	

	 

 
Section 9.12 Enforcement of the Agreement. The parties hereto agree that irreparable damage would occur if 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 an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions hereto, this being in addition to any other remedy to which they are entitled at law or in equity.
 
Section 9.13 Governing Law. This Agreement shall be governed by and interpreted and enforced in accordance with the laws of the State of Florida without giving effect to the choice of law provisions thereof. 
 
Section 9.14 Amendments and Waivers. Except or otherwise provided herein, no amendment of any provision of this Agreement shall be valid unless the same shall be in writing and signed by all of the parties hereto. No waiver by any party of any default, misrepresentation, or breach of warranty or covenant hereunder, whether intentional or not, shall be deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty or covenant hereunder or affect in any way any rights arising by virtue of any prior or subsequent such occurrence.   

 
Section 9.15 No Third-Party Beneficiaries. This Agreement is not intended to confer any rights or remedies upon any Person other than the parties to this Agreement.
 
Section 9.16 Waiver of Jury Trial. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY ANY PARTY HERETO OR ITS SUCCESSORS AGAINST ANY OTHER PARTY HERETO OR ITS SUCCESSORS IN RESPECT OF ANY MATTER ARISING OUT OF OR RELATING TO THIS AGREEMENT.
 
Section 9.17 Counterparts; Effectiveness. This Agreement may be executed in any number of counterparts, all of which shall be one and the same agreement. This Agreement shall become effective when each party to this Agreement has received counterparts signed by all of the other parties.
 
[REST OF PAGE DELIBERATELY LEFT BLANK] 
 
[SIGNATURES ON PAGE TO FOLLOW]
 
	 
	30

	

	 

 
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.
 
		WOD
	
		  	 
	
		WOD MARKET LLC
	
		   
		
		By:
	/s/ Brenton Mix
	
			Brenton Mix, 
	
			Chief Executive Officer
	
		  		
		WOD CONTROLLING MEMBERS

		  	 
	
		By:
	/s/ Brenton Mix
	
		 
	Brenton Mix
	
		  	 
	
		By:
	/s/ Taryn Watson
	
		 
	Taryn Watson
	
		  	 
	
		DEAC
	
		 	 
	
		ELITE DATA SERVICES INC.
	
		  		
		By:
	/s/ Charles Rimlinger
	
		 
	Charles Rimlinger,
	
		 
	Chief Executive Officer
	
		  		
		DEAC CONTROLLING SHAREHOLDER(S)
	
		  	 
	
		By:
	/s/ Dr. James G. Ricketts
	
		 
	Dr. James G. Ricketts
	
		   
		
		By:
	/s/ Stephen Antol
	
		 
	Stephen Antol
	

 
	 
	31

	

	 

 
Schedules 
Schedules 1.1 through 1.2
 
Schedule 1.1 Acquisition of WOD.
 
Pursuant to Section 1.1 of the Agreement, DEAC shall acquire, from WOD, a certain percentage of the ownership interest in WOD, in a series of closings in the form of one or more equity exchanges, upon which WOD shall become a wholly owned subsidiary of DEAC, after the final closing has occurred, under the following terms and conditions:
 
(a) First Closing. At the first (or initial) closing (also referred to as the Closing in this Agreement) on the first Closing Date set forth in this Agreement, DEAC shall acquire a total of twenty percent (20%) of the ownership interest of WOD, pursuant to the equity exchange set forth in Schedule 1.2 below, and subject to certain transaction conditions set forth in Schedule 1.4(a) below.
 
(b) Second Closing. At the second closing on or before September 15, 2016, DEAC shall acquire a total of twenty percent (20%) of the ownership interest of WOD, pursuant to the equity exchange set forth in Schedule 1.2 below, and subject to certain transaction conditions set forth in Schedule 1.4(b) below.
 
(c) Third Closing. At the third and final closing on or before October 15, 2016, DEAC shall acquire a total of sixty percent (60%) of the ownership interest of WOD, pursuant to the equity exchange set forth in Schedule 1.2 below, and subject to certain transaction conditions set forth in Schedule 1.4(c) below.
 
Each Closing shall include a separate Closing Certificate (the "Closing Certificate") from both DEAC and WOD evidencing compliance with the conditions of Closing pursuant to Article V and VI and the requirements for a closing as set forth in this Schedule 1.1;
 
Schedule 1.2 Agreement to Exchange WOD Units for New DEAC Shares.
 
Pursuant to the closings set forth in Schedule 1.1 hereinabove, (i) WOD shall assign, transfer, convey and deliver the WOD Units to Escrow Agent (as hereinafter defined), and in consideration and exchange therefor DEAC shall (ii) issue and deliver the New DEAC Shares to WOD, in such amounts as described and set forth below: 
 
	Closing Date
	 
	Type of
Securities
	 
	WOD
Units (1)
	 
	 
	New DEAC
Shares (2)
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	First Closing
	 
	Common Shares
	 
	 
	0	 
	 
	 
	0	 

	 
	 
	Preferred Shares
	 
	 
	0	 
	 
	 
	100,000	 

	 
	 
	Units
	 
	 
	20	 
	 
	 
	0	 

	  
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Second Closing
	 
	Common Shares
	 
	 
	0	 
	 
	 
	0	 

	 
	 
	Preferred Shares
	 
	 
	0	 
	 
	 
	100,000	 

	 
	 
	Units
	 
	 
	20	 
	 
	 
	0	 

	  
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Third Closing
	 
	Common Shares
	 
	 
	0	 
	 
	 
	0	 

	 
	 
	Preferred Shares
	 
	 
	0	 
	 
	 
	14,800,000	 

	 
	 
	Units
	 
	 
	20	 
	 
	 
	0	 

	  
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Totals
	 
	Common Shares
	 
	 
	0	 
	 
	 
	0	 

	 
	 
	Preferred Shares
	 
	 
	0	 
	 
	 
	23,000,000	 

	 
	 
	Units
	 
	 
	80	 
	 
	 
	0	 

 
1 Reflects the number of WOD Units held by WOD Controlling Members to be transferred to DEAC on each represented closing date.
 
2 Reflects the number of New DEAC Shares in the form of Series B Preferred Stock to be issued to WOD Members on each represented closing date.
 
	 
	32

	

	 

 
Notwithstanding anything to the contrary herein, the total number of New DEAC Shares to be issued by DEAC to the WOD Controlling Members in exchanged for the transfer of the WOD Units once all the closings have occurred, shall equate to no less than sixty-five percent (65%) of the ownership interest of Series B Preferred Stock, on a fully diluted basis, with all existing options and warrants exercised, as if all New DEAC Shares were issued on the original closing date, unless otherwise modified, subject to mutual written consent by each of the parties hereto, in the form of an amendment to this Agreement.
 
Schedule 1.3
 
Pursuant to the Recitals of this Agreement, the following represents the beneficial ownership positions of both the WOD Controlling Members and DEAC Controlling Shareholders prior to the Closing:
 
	 
	(a)	WOD Controlling Members.

 
On the First Closing Date, the capitalization of WOD shall consist of the following:
 
	Title of Class
	 
	Name and
Address of Beneficial
Owner (1)
	 
	Amount and
Nature of
beneficial
owner
	 
	 
	Percentage
of Class (1)
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	Units
	 
	Brenton Mix
3665 Akron St.
Denver, CO 80238 
	 
	500
	 
	 
	50
	%

	 
	 
	  
	 
	 
	 
	 
	 
	 

	 
Units
	 
	Taryn Watson
2205 Beeler St., Unit 101
Denver, CO 80238
	 
	500
	 
	 
	50
	%

	  
	 
	  
	 
	 
	 
	 
	 
	 

	Units
	 
	All Affiliates and Non-Affiliates
	 
	 
	1,000	 
	 
	 
	100	%

 
	1.
 
	Beneficial ownership is calculated based on 1,000 units of membership interest issued and outstanding as of August 25, 2016. Beneficial ownership is determined in accordance with Rule 13d-3 under the Exchange Act. The persons and entities named in the table have sole voting and sole investment power with respect to the shares set forth opposite that person's name, subject to community property laws, where applicable.

 
	 
	33

	

	 

 
	 
	(b)	DEAC Controlling Shareholders.

 
On the First Closing Date, the capitalization of DEAC shall consist of the following:
 
	Title of Class
	 
	Name and
Address of Beneficial
Owner (2)
	 
	Amount and
Nature of
beneficial
owner
	 
	 
	Percentage
of Class (1)
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Common Stock
	 
	N/A
	 
	 
	0	 
	 
	 
	00.00	%
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Common Stock
	 
	All Affiliates and Non-Affiliates
	 
	 
	0	 
	 
	 
	00.00	%

 
	1.
 
	Beneficial ownership is calculated based on approximately 130,237,299 shares of common stock issued and outstanding as of August 26, 2016. Beneficial ownership is determined in accordance with Rule 13d-3 under the Exchange Act. The persons and entities named in the table have sole voting and sole investment power with respect to the shares set forth opposite that person's name, subject to community property laws, where applicable. 

	Title of Class
	 
	Name and
Address of Beneficial
Owner (2)
	 
	Amount and
Nature of
beneficial
owner
	 
	 
	Percentage
of Class (1)
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 

	Preferred Stock
Series B
	 
	Dr. James G. Ricketts
	 
	1,000,000
	 
	 
	50.00
	%

	  
	 
	 
	 
	 
	 
	 
	 
	 

	Preferred Stock
Series B
	 
	 
Stephen Antol
	 
	 
1,000,000
	 
	 
	 
50.00
	%

	  
	 
	 
	 
	 
	 
	 
	 
	 

	Preferred Stock
Series B
	 
	 
All Affiliates and Non-Affiliates
	 
	 
	2,000,000	 
	 
	 
	100.00	%

 
	1.
 
	Beneficial ownership is calculated based on 2,000,000 shares of preferred stock issued and outstanding as of August 26, 2016. Beneficial ownership is determined in accordance with Rule 13d-3 under the Exchange Act. The persons and entities named in the table have sole voting and sole investment power with respect to the shares set forth opposite that person's name, subject to community property laws, where applicable.

 
	 
	34

	

	 

 
Schedule 1.4 Certain Transaction Conditions.
 
(a) Interim Financing. Within two (2) business days after the Initial Closing, WOD shall advance a total of Forty Thousand Dollars ($40,000) to DEAC for the purposes of funding the completion of DEAC's audit and SEC filing of Form 10K for the period ending December 31, 2015, Form 10Q for period ending March 31, 2016, Form 10Q for period ending June 30, 2016, and other documentation required for DEAC to become a compliant and fully reporting public company (the "Interim Financing"), secured by two (2) separately executed Convertible Redeemable Notes ("WOD Notes"), in the form attached hereto as Exhibit A and Exhibit B, respectively.
 
(b) Books and Records. On or before the Second Closing as set forth in Schedule 1.1 above, DEAC shall complete all necessary corporate actions to effect any and all outstanding DEAC corporate matters, including, but not limited to, SEC filing of Form 10K for the period ending December 31, 2015, Form 10Q for period ending March 31, 2016, Form 10Q for period ending June 30, 2016, and other documentation required for DEAC to become a compliant and fully reporting public company (the "SEC Filing"), and on or before the Third Closing as set forth in Schedule 1.1 above, WOD shall complete all necessary corporate actions to effect any and all outstanding WOD corporate matters, including, but not limited to, two years of audit financials for period ending December 31, 2014 and December 31, 2015, and interim reviewed financial for period ending June 30, 2016, including interim reviewed financial for period ending September 30, 2016, in accordance with US GAAP (the "Books and Records"), in form acceptable to DEAC and its auditors. Separately, DEAC must be current with all federal tax return filings for periods ending 2013, 2014 and 2015 on or before the Third Closing.
 
(c) Officer and Director Appointments and Resignations. Pursuant to the each of the closings contemplated herein, certain officer and director appointments and resignations shall commence as follows:
 
(i) On the Second Closing date, DEAC and WOD shall effect the following officer and board member appointments and resignations:
 
Officers
 
(1) Charles Rimlinger (Resigning CEO),
 
(1) Sarah Myers (Resigning President and COO),
 
(2) Taryn Watson (Appointed New President and COO),
 
(3) Stephen Antol (Remaining CFO, Secretary and Treasurer)
  
Directors
 
(1) Dr. James Ricketts (Chairman),
 
(2) Charles Rimlinger (Resigning Board Member),
 
(3) Taryn Watson (Appointed New Board Member)
 
(4) Sarah Myers (Resigning Board Member),
 
(5) Rich Phillips (Appointed New Independent Board Member)
 
	 
	35

	

	 

 
(ii) On the Third Closing date, DEAC and WOD shall effect the following officer and board member appointments and resignations:
 
Officers
 
(1) Brenton Mix (Appointed CEO)
 
(2) Taryn Watson (Existing President and COO),
 
(3) Stephen Antol (Existing CFO, Secretary and Treasurer)
 
Directors
 
(1) Dr. James Ricketts (Resigning Chairman),
 
(2) Brenton Mix (Appointed Chairman)
 
(3) Taryn Watson (Existing Board Member)
 
(4) Rich Phillips (Existing Independent Board Member)
 
(d) Reverse Split. As a condition of the execution of this Agreement, DEAC has agreed to immediately, as of August 26, 2016, initiate a reverse split of 1:1000 of DEAC's Common Stock (the "Reverse Split"), pursuant to the prior approval received by DEAC from the holders of majority of DEAC's outstanding capital stock, as described in the Schedule 14C filed with the SEC on September 23, 2015. The effective date of the reverse split is anticipated to commence on September 15, 2016, subject to final approval of FINRA.
  
(e) Share Exchange. Subject to the completion of the Reverse Split set forth in Schedule 1.4(d), the Controlling Shareholders have agreed to exchange and cancel a total of 1,000,000 shares of Series B Preferred Stock (500,000 each by Dr. Ricketts and Mr. Antol) for a total of 25,000,000 shares of Common Stock of the DEAC to be issued post the date the Reverse Split is effective.
 
(f) Modification and Cancellation of Contractor Agreements. As a condition of the Final Closing, Dr. Ricketts (a Controlling Shareholder) has agreed to the termination of his contractor agreement dated May 18, 2016, as the Chairman and VP of Investor Relations of DEAC, and Mr. Antol (a Controlling Shareholder) has agreed to the termination of his contractor agreement dated May 18, 2016, as the Chief Financial Officer of DEAC, on mutually agreed to terms between DEAC and WOD prior to such closing.
 
	 
	36

	

	 

 
Schedules 2.1 through 2.18
 
"DEAC Disclosure Schedules"
 
Section 2.3 Capitalizations. 
 
As of the date of First Closing, the Company had 130,237,299shares of Common Stock issued and outstanding (the "Common Stock") and 2,000,000 shares of Series B Preferred Stock issued and outstanding, (the "Preferred Stock").
 
Section 2.4 Subsidiaries and Equity Investments. 
 
As of the date of First Closing, DEAC held 100% of the ownership interest in the following subsidiary entities:
 
	 
	1.	Elite Data Marketing LLC, a Delaware limited liability company; and
	 
	 
	 

	 
	2.	Elite Gaming Ventures LLC, a Delaware limited liability, and its wholly owed subsidiary Elite Holdings S.A., a Honduras corporation.

 
Section 2.7 Material Agreements.
 
See current report 10K 2014, 10Q (1) 2015, 10Q (2) 2015, 10Q (3) 2015 and 8K SEC filings as of date of execution of this Agreement.
 
Section 2.10 Financial Statements; SEC Filings.
 
DEAC is delinquent on its SEC filings as follows: Form 10K for period ending December 31, 2016, Form 8K for period ending March 31, 2016 and Form 10Q2 for period ending June 30, 2016.
 
See current report 10K 2014, 10Q (1) 2015, 10Q (2) 2015, 10Q (3) 2015 and 8K SEC filings as of date of execution of this Agreement.
 
Section 2.13 Tax Returns, Payments and Elections. 
 
The Company has not filed the applicable tax returns for 2013, 2014 and 2015. However, based on the audited year-end financials, no tax payments are due on the date of execution of this Agreement, which shall be filed prior to the Third Closing as set forth in Section 1.4.
 
Section 2.14 Absence of Undisclosed Liabilities. 
 
The Company is currently delinquent in the repayment of a total of approx. ten (10) separate convertible redeemable corporate notes ("Notes"), in the outstanding balance of approx. USD $1,528,675, excluding any unpaid accrued interest and late fees and penalties. 
 
See current report 10K 2014, 10Q (1) 2015, 10Q (2) 2015, 10Q (3) 2015 and 8K SEC filings as of date of execution of this Agreement.
 
	 
	37

	

	 

 
Section 2.20 Labor.
 
	 
	1.	Dr. James G. Ricketts – Contractor Agreement and Board Services Agreement.
	 
	 
	 

	 
	2.	Stephen Antol – Contractor Agreement
	 
	 
	 

	 
	3.	Birch First Advisors LLC – Contractor Agreement.

 
See current report Form 8K filed with the SEC on May 24, 2016 for detailed summary and copies of each of Agreement.
 
Section 2.21 Intellectual Property.
 
On May 20, 2016, the Company executed an Assignment of Ownership Interest with its newly formed subsidiary, Elite Data Marketing LLC, pursuant to which the Company assigned and transferred (A) a certain amount of Company's ownership interest held in www.classifiedride.com, an online classified listing website (the "ClassifiedRide"), equal to an aggregate total of one hundred percent (100%) of the ownership interest of the ClassifiedRide asset (the "ClassifiedRide Asset"), acquired by the Company from Baker Myers, on or about January 13, 2014, and (B) a certain amount of Company's ownership interest in Autoglance LLC, a Tennessee limited liability company (the "Autoglance"), equal to an aggregate total of fifty-one percent (51%) of the units of membership interest (the "Autoglance Units"), including, but not limited to, the majority control over all owned assets of Autoglance, acquired by the Company from Baker Myers, on or about January 15, 2014.
 
See current report Form 8K filed with the SEC on May 24, 2016 for detailed summary and copies of each of Agreement.
 
	 
	38

	

	 

 
Schedule 3.1 through 3.25
WOD Disclosure Schedules
 
Section 3.2 Capitalization of WOD.
 
As of the date of Closing, the Company had 1,000 of units of membership interest issued and outstanding.
 
Section 3.3 Subsidiaries and Equity Investments.
 
As of the date of First Closing, WOD held no subsidiaries or equity investments in any other entities.
 
Section 3.12 Title to and Condition of Assets
 
None 
 
Section 3.13 Absence of Undisclosed Liabilities.
 
A loan in the amount of $15,000 for a 18-month term which is not disclosed in the financial statements of WOD for period ending June 30, 2016. A total of seven (7) of the WOD machines are leased with a $1 buy-out option and one machine is just leased. 
 
Section 3.14
 
There are liens on the machines until are purchased outright.
 
Section 3.15 Material WOD Contracts. 
 
WOD has made available to DEAC and the DEAC Controlling Shareholder prior to the date of this Agreement, true, correct and complete copies of each written Material WOD Contract, including each amendment, supplement and modification thereto.
 
Section 3.17 Litigation; Orders.
 
None
 
Section 3.19 Interested Party Transactions. 
 
None
 
Section 3.21 Intellectual Property. 
 
None
 
Section 3.22 Consulting Agreement
 
Rich Phillips (as disclosed)
 
Section 3.23 Environmental and Safety Matters. 
 
None
 
	 
	39

	

	 

 
Exhibit A
 
CONVERTIBLE REDEEMABLE NOTE 
(WOD Advance)
 
THIS NOTE AND THE COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE HAVE NOT BEEN AND WILL NOT BE REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER (THE "1933 ACT").
 
US $30,000.00
 
ELITE DATA SERVICES, INC.
CONVERTIBLE REDEEMABLE NOTE
 
FOR VALUE RECEIVED, ELITE DATA SERVICES, INC. (the "Company") promises to pay to the order of WOD MARKET LLC, a Colorado limited liability company and its authorized successors and permitted assigns ("Holder"), the aggregate principal face amount of THIRTY THOUSAND DOLLARS (U.S. $30,000.00), at ten percent (10%) interest per annum commencing on the date of execution (the "Effective Date"), due and payable to Holder by Company, plus accrued interest on the six month anniversary date following the execution of this Note (each a "Maturity Date"), pursuant to the terms of the Definitive Agreement dated even date herewith between Company and Holder, of which this Note is made apart. The Company will pay interest payment and the outstanding principal due upon this Note on the Maturity Date. The forwarding of such check or wire transfer shall constitute a payment of outstanding principal hereunder and shall satisfy and discharge the liability for principal on this Note to the extent of the sum represented by such check or wire transfer. Interest shall be payable in Common Stock (as defined below) pursuant to paragraph 3(f) herein.
 
This Note is subject to the following additional provisions:
 
1. The Company shall be entitled to withhold from all payments any amounts required to be withheld under applicable laws.
 
2. This Note may be transferred or exchanged only in compliance with the Securities Act of 1933, as amended ("Act"), and applicable state securities laws. Holder shall provide the Company with 3-day written notice of the Note's transfer and shall presume that any attempted transfer to a party is deemed qualified by the Holder. Any attempted transfer to a non-qualifying party shall be treated by the Company as void. Prior to due presentment for transfer of this Note, the Company and any agent of the Company may treat the person in whose name this Note is duly registered on the Company's records as the owner hereof for all other purposes, whether or not this Note be overdue, and neither the Company nor any such agent shall be affected or bound by notice to the contrary. Any Holder of this Note electing to exercise the right of conversion set forth in Section 3(a) hereof, in addition to the requirements set forth in Section 3(b) and 3(c), and any prospective transferee of this Note, also is required to give the Company written confirmation that this Note is being converted ("Notice of Conversion") in the form annexed hereto as Exhibit A-1. The date of receipt (including receipt by telecopy) of such Notice of Conversion shall be the Conversion Date. 
 
	 
	40

	

	 

 
3. Note Conversions; Interest Payments; Prepayments, Transfers, Etc.
 
(a) The Holder of this Note is entitled, at its option, beginning on the 181th day after Effective Date, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock (the "Common Stock") at a price ("Conversion Price") for each share of Common Stock equal to a discount of fifty percent (50%) of the lowest trading price of the Common Stock as reported on the OTCQB marketplace which the Company's shares are traded or any market upon which the Common Stock may be traded in the future ("Exchange"), for the ten (10)priortrading days including the day upon which a Notice of Conversion is received by the Company and its transfer agent (provided such Notice of Conversion is delivered by electronic method of communication to the Company or its transfer agent after 4 P.M. Eastern Standard or Daylight Savings Time if the Holder wishes to include the same day closing price) beginning on the 181st day after Effective Date. 
 
(b) If the shares have not been delivered within three (3) business days, the Notice of Conversion may be rescinded. Such conversion shall be effectuated by the transfer agent of the Company delivering the shares of Common Stock to the Holder within three (3) business days of receipt by the Company of the Notice of Conversion. Accrued but unpaid interest shall be subject to conversion. No fractional shares or scrip representing fractions of shares will be issued on conversion, but the number of shares issuable shall be rounded to the nearest whole share. To the extent the Conversion Price of the Company's Common Stock closes below the par value per share, the Company will take all steps necessary to solicit the consent of the stockholders to reduce the par value to the lowest value possible under law. The Company agrees to honor all conversions submitted pending this decrease.
 
(c) At any time or times on or after the Maturity Date, the Holder shall be entitled to convert all of the outstanding and unpaid principal amount of this Note into fully paid and non-assessable shares of Common Stock in accordance with the stated Conversion Price. The Holder shall not be entitled to convert on a Conversion Date that amount of the Note in connection with that number of shares of Common Stock which would be in excess of the sum of (i) the number of shares of Common Stock beneficially owned by the Holder and its affiliates on a Conversion Date, (ii) any Common Stock issuable in connection with the unconverted portion of the Note, and (iii) the number of shares of Common Stock issuable upon the conversion of the Note with respect to which the determination of this provision is being made on a Conversion Date, which would result in beneficial ownership by the Holder and its affiliates of more than 4.99% of the outstanding shares of Common Stock of the Company on such Conversion Date. For the purposes of the provision to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended, and Regulation 13d-3 thereunder. Subject to the following, the Holder shall not be limited to aggregate conversions of 4.99% ("Conversion Limitation 1"). The Holder shall have the authority to determine whether the restriction contained in this Section 3(c) will limit any conversion hereunder. The Holder may waive the conversion limitation described in this Section 3(c), in whole or in part, upon and effective after 61-days prior written notice to the Company to increase such percentage to up to 9.99% ("Conversion Limitation 2").
 
(d) The Company shall not issue any fraction of a share of Common Stock upon any conversion; if such issuance would result in the issuance of a fraction of a share of Common Stock, the Company shall round such fraction of a share of Common Stock up to the nearest whole share except in the event that rounding up would violate the conversion limitation set forth in section 3(c) above.
 
	 
	41

	

	 

 
(e) If the Company, at any time after the Issuance Date, shall issue any securities convertible into or exchangeable for, directly or indirectly, Common Stock ("Convertible Securities"), other than the Note, or any rights or warrants or options to purchase any such Common Stock or Convertible Securities, shall be issued or sold (collectively, the "Common Stock Equivalents") and the aggregate of the price per share for which Additional Shares of Common Stock may be issuable thereafter pursuant to such Common Stock Equivalent, plus the consideration received by the Company for issuance of such Common Stock Equivalent divided by the number of shares of Common Stock issuable pursuant to such Common Stock Equivalent (the "Aggregate Per Common Share Price") shall be less than the applicable Conversion Price then in effect, or if, after any such issuance of Common Stock Equivalents, the price per share for which Additional Shares of Common Stock may be issuable thereafter is amended or adjusted, and such price as so amended shall make the Aggregate Per Share Common Price be less than the applicable Conversion Price in effect at the time of such amendment or adjustment, then the applicable Conversion Price upon each such issuance or amendment shall be reduced to the lower of: (i) the Conversion Price; or (ii) a twenty-five percent (25%) discount to the lowest Aggregate Per Common Share Price (whether or not such Common Stock Equivalents are actually then exercisable, convertible or exchangeable in whole or in part) as of the earlier of (A) the date on which the Company shall enter into a firm contract for the issuance of such Common Stock Equivalent, or (B) the date of actual issuance of such Common Stock Equivalent. No adjustment of the applicable Conversion Price shall be made under this Section 6 upon the issuance of any Convertible Security which is outstanding on the day immediately preceding the Issuance Date. No adjustment shall be made to the Conversion Price upon the issuance of Common Stock pursuant to the exercise, conversion or exchange of any Convertible Security or Common Stock Equivalent where an adjustment to the Conversion Price was made as a result of the issuance or purchase of any Convertible Security or Common Stock Equivalent.
  
(f) Interest on any unpaid principal balance of this Note shall be paid at the rate of ten percent (10%) per annum with the first payment being made on the sixth-month anniversary of this Note. Interest shall be paid by the Company in Common Stock ("Interest Shares"). Holder may, at any time after six months, send in a Notice of Conversion to the Company for Interest Shares based on the formula provided in Section 3(a) above. The dollar amount converted into Interest Shares shall be all or a portion of the accrued interest calculated on the unpaid principal balance of this Note to the date of such notice. 
 
(g) The Notes may be prepaid, in whole or in part, with the following penalties: (i) if the note is prepaid within 90 days of the issuance date, then at 120% of the face amount plus any accrued interest; (ii) if the note is prepaid within 91 days after the issuance date but less than 150 days after the issuance date, then at 130% of the face amount plus any accrued interest; (iii) if the note is prepaid within 150 days after the issuance date but less than 180 days after the issuance date, then at 140% of the face amount plus any accrued interest. This Note may not be prepaid after the 180th day without written permission from Holder. Such redemption must be closed and funded within three (3) days of giving notice of redemption of the right to redeem shall be null and void.
 
(h) Upon (i) a transfer of all or substantially all of the assets of the Company to any person in a single transaction or series of related transactions, (ii) a reclassification, capital reorganization or other change or exchange of outstanding shares of the Common Stock, other than a forward or reverse stock split or stock dividend, or (iii) any consolidation or merger of the Company with or into another person or entity in which the Company is not the surviving entity (other than a merger which is effected solely to change the jurisdiction of incorporation of the Company and results in a reclassification, conversion or exchange of outstanding shares of Common Stock solely into shares of Common Stock) (each of items (i), (ii) and (iii) being referred to as a "Sale Event"), then, in each case, the Company shall, upon request of the Holder, redeem this Note in cash for 150% of the principal amount, plus accrued but unpaid interest through the date of redemption, or at the election of the Holder, such Holder may convert the unpaid principal amount of this Note (together with the amount of accrued but unpaid interest) into shares of Common Stock immediately prior to such Sale Event at the Conversion Price.
 
	 
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(i) In case of any Sale Event (not to include a sale of all or substantially all of the Company's assets) in connection with which this Note is not redeemed or converted, the Company shall cause effective provision to be made so that the Holder of this Note shall have the right thereafter, by converting this Note, to purchase or convert this Note into the kind and number of shares of stock or other securities or property (including cash) receivable upon such reclassification, capital reorganization or other change, consolidation or merger by a holder of the number of shares of Common Stock that could have been purchased upon exercise of the Note and at the same Conversion Price, as defined in this Note, immediately prior to such Sale Event. The foregoing provisions shall similarly apply to successive Sale Events. If the consideration received by the holders of Common Stock is other than cash, the value shall be as determined by the Board of Directors of the Company or successor person or entity acting in good faith.
 
4. The Holder agrees that so long as this Note from the Holder and the Company remains outstanding, the Holder will not enter into or effect "short sales" of the Common Stock or hedging transaction which establishes a net short position with respect to the Common Stock of the Company. The Company acknowledges and agrees that upon delivery of a conversion notice by the Holder, the Holder immediately owns the shares of Common Stock described in the conversion notice and any sale of those shares issuable under such conversion notice would not be considered short sales. 
 
5. No provision of this Note shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of, and interest on, this Note at the time, place, and rate, and in the form, herein prescribed.
 
6. The Company hereby expressly waives demand and presentment for payment, notice of non-payment, protest, notice of protest, notice of dishonor, notice of acceleration or intent to accelerate, and diligence in taking any action to collect amounts called for hereunder and shall be directly and primarily liable for the payment of all sums owing and to be owing hereto.
 
7. The Company agrees to pay all costs and expenses, including reasonable attorneys' fees and expenses, which may be incurred by the Holder in collecting any amount due under this Note.
  
8. If one or more of the following described "Events of Default" shall occur:
 
(a) The Company shall default in the payment of principal or interest on this Note to the Holder by the Company as of the Maturity Date; or
 
(b) Any of the representations or warranties made by the Company herein or in any certificate or financial or other written statements heretofore or hereafter furnished by or on behalf of the Company in connection with the execution and delivery of this Note under which this note was issued shall be false or misleading in any respect; or
 
(c) The Company shall fail to perform or observe, in any respect, any covenant, term, provision, condition, agreement or obligation of the Company under this Note or any other note issued to the Holder; or
 
(d) The Company shall (1) make an assignment for the benefit of creditors or commence proceedings for its dissolution; (2) apply for or consent to the appointment of a trustee, liquidator or receiver for its or for a substantial part of its property or business; (3) file a petition for bankruptcy relief, consent to the filing of such petition or have filed against it an involuntary petition for bankruptcy relief, all under federal or state laws as applicable; or
  
(e) A trustee, liquidator or receiver shall be appointed for the Company or for a substantial part of its property or business without its consent and shall not be discharged within sixty (60) days after such appointment; or
 
	 
	43

	

	 

 
(f) Any governmental agency or any court of competent jurisdiction at the instance of any governmental agency shall assume custody or control of the whole or any substantial portion of the properties or assets of the Company; or
 
(g) One or more money judgments, writs or warrants of attachment, or similar process, in excess of fifty thousand dollars ($50,000) in the aggregate, shall be entered or filed against the Company or any of its properties or other assets and shall remain unpaid, unvacated, unbonded or unstayed for a period of thirty (30) days or in any event later than five (5) days prior to the date of any proposed sale thereunder with the exception of the current litigation that is already disclosed as reported on the Company's public filings; or
  
(h) The Company shall have its Common Stock delisted from a market (including the OTCQB marketplace) or, if the Common Stock trades on an exchange, then trading in the Common Stock shall be suspended for more than ten (10) consecutive days;
 
(i) The Company shall not deliver to the Holder the Common Stock pursuant to paragraph 4 herein without restrictive legend within three (3) business days of its receipt of a Notice of Conversion (provided that a reasonable attorney opinion has been provided by Holder to the Company in which it deems it can reasonably rely); or
 
(j) The Company shall not be "current" in its filings with the Securities and Exchange Commission, and such shall not be cured within ten (10) business days; or
 
(k) The Company shall lose the "bid" price for its stock and a market (including the OTCBB marketplace or other exchange)
  
Then, or at any time thereafter, unless cured within five (5) business days, and in each and every such case, unless such Event of Default shall have been waived in writing by the Holder (which waiver shall not be deemed to be a waiver of any subsequent default) at the option of the Holder and in the Holder's sole discretion, the Holder may consider this Note immediately due and payable, without presentment, demand, protest or (further) notice of any kind (other than notice of acceleration), all of which are hereby expressly waived, anything herein or in any note or other instruments contained to the contrary notwithstanding, and the Holder may immediately, and without expiration of any period of grace, enforce any and all of the Holder's rights and remedies provided herein or any other rights or remedies afforded by law. Upon an Event of Default, interest shall accrue at a default interest rate of 24% per annum or, if such rate is usurious or not permitted by current law, then at the highest rate of interest permitted by law. In the event of a breach of Section 8(i) the penalty shall be $50 per day the shares are not issued beginning on the 5th day after the conversion notice was delivered to the Company. This penalty shall increase to $100 per day beginning on the 10th day. The penalty for a breach of Section 8(k) shall be an increase of the outstanding principal amounts by 20%. In case of a breach of Section 8(h), the outstanding principal due under this Note shall increase by 50%. Further, if a breach of Section 8(m) occurs or is continuing after the 6-month anniversary of the Note, then the Holder shall be entitled to use the lowest closing bid price during the delinquency period (after cure period) as a base price for the conversion. For example, if the lowest closing bid price during the delinquency period is $0.01 per share and the conversion discount is 50% the Holder may elect to convert future conversions at $0.001 per share. If this Note is not paid at maturity, the outstanding principal due under this Note shall increase by ten percent (10%).
 
	 
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9. At the Holder's election, if the Company fails for any reason to deliver to the Holder the conversion shares by the by the 3rd business day following the delivery of a Notice of Conversion to the Company and if the Holder incurs a Failure to Deliver Loss, then at any time the Holder may provide the Company written notice and documentary evidence indicating the amounts payable to the Holder in respect of the Failure to Deliver Loss and the Company must make the Holder whole as follows: Failure to Deliver Loss = [(High trade price at any time on or after the day of exercise) x (Number of conversion shares)]. Such failure to deliver will be repayable in the Company's Common Stock.
 
10. In case any provision of this Note is held by a court of competent jurisdiction to be excessive in scope or otherwise invalid or unenforceable, such provision shall be adjusted rather than voided, if possible, so that it is enforceable to the maximum extent possible, and the validity and enforceability of the remaining provisions of this Note will not in any way be affected or impaired thereby.
 
11. Neither this Note nor any term hereof may be amended, waived, discharged or terminated other than by a written instrument signed by the Company and the Holder.
 
12. The Company represents that it is not a "shell" issuer and has never been a "shell" issuer or that if it previously has been a "shell" issuer that at least 12 months have passed since the Company has reported Form 10 type information indicating it is no longer a "shell issuer.
 
13. The Holder agrees that so long as this Note from the Holder and the Company remains outstanding, the Holder will not enter into or effect "short sales" of the Common Stock or hedging transaction which establishes a net short position with respect to the Common Stock of the Company. The Company acknowledges and agrees that upon delivery of a conversion notice by the Holder, the Holder immediately owns the shares of Common Stock described in the conversion notice and any sale of those shares issuable under such conversion notice would not be considered short sales.
 
14. The Company will give the Holder direct notice of any corporate actions, including but not limited to name changes, stock splits, recapitalizations etc. This notice shall be given to the Holder as soon as possible under law.
  
15. Any dispute or claim arising to or in any way related to this Note or the rights and obligations of each of the parties hereto may be settled by binding arbitration pursuant. All arbitration shall be conducted in accordance with the rules and regulations of the American Arbitration Association ("AAA"). AAA shall designate an arbitrator from an approved list of arbitrators following both parties' review and deletion of those arbitrators on the approved list having a conflict of interest with either party. The Company agrees that a final non-appealable judgment in any such suit or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on such judgment or in any other lawful manner.The Company hereto knowingly and voluntarily waives any and all rights it may have to a trial by jury with respect to any litigation based on, or arising out of, under, or in connection with, this note.
 
16. This Note shall be governed by and construed in accordance with the laws of Florida applicable to contracts made and wholly to be performed within the State of Florida and shall be binding upon the successors and assigns of each party hereto. The Holder and the Company hereby mutually waive trial by jury and consent to exclusive jurisdiction and venue in the courts of the State of Florida. This Agreement may be executed in counterparts, and the facsimile transmission of an executed counterpart to this Agreement shall be effective as an original.
 
[SIGNATURES ON PAGE TO FOLLOW]
 
	 
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IN WITNESS WHEREOF, the Company has caused this Note to be duly executed by an officer thereunto duly authorized on the date referenced below.
 
 
	 	ELITE DATA SERVICES, INC.	
	 	 	 	 
	Date: August 26, 2016	By:	/s/ Charles Rimlinger	
	 
	 
	Charles Rimlinger, 	 
	 	 	Chief Executive Officer	 

 
 
 
 
	 
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EXHIBIT A-1
 
NOTICE OF CONVERSION
 
(To be Executed by the Registered Holder in order to Convert the Note)
 
The undersigned hereby irrevocably elects to convert $___________ of the above Note into _________ Shares of Common Stock of Elite Data Services, Inc. ("Shares") according to the conditions set forth in such Note, as of the date written below.
 
If Shares are to be issued in the name of a person other than the undersigned, the undersigned will pay all transfer and other taxes and charges payable with respect thereto.
 
Date of Conversion: ________________________________________
 
Applicable Conversion Price: _________________________________
 
Signature: _______________________________________________
[Print Name of Holder and Title of Signer]
 
Address: ________________________________________________
 
SSN or EIN: ______________________________________________
 
Shares are to be registered in the following name: 
 
Name: ______________________________
 
Address: ____________________________
  ____________________________
 
Tel: ________________________________ 
 
SSN or EIN: _________________________
 
Shares are to be sent or delivered to the following account:
 
Account Name: _______________________
    _______________________
 
Address: ____________________________
 ____________________________
  ____________________________
 
	 
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Exhibit B
 
CONVERTIBLE REDEEMABLE NOTE 
(WOD Advance)
 
THIS NOTE AND THE COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE HAVE NOT BEEN AND WILL NOT BE REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER (THE "1933 ACT").
 
US $10,000.00
 
ELITE DATA SERVICES, INC.
CONVERTIBLE REDEEMABLE NOTE
 
FOR VALUE RECEIVED, ELITE DATA SERVICES, INC. (the "Company") promises to pay to the order of TERRY J. STENLUND, an individual and its authorized successors and permitted assigns ("Holder"), the aggregate principal face amount of TEN THOUSAND DOLLARS (U.S. $10,000.00), at ten percent (10%) interest per annum commencing on the date of execution (the "Effective Date"), due and payable to Holder by Company, plus accrued interest on the six month anniversary date following the execution of this Note (each a "Maturity Date"), pursuant to the terms of the Definitive Agreement dated even date herewith between Company and Holder, of which this Note is made apart. The Company will pay interest payment and the outstanding principal due upon this Note on the Maturity Date. The forwarding of such check or wire transfer shall constitute a payment of outstanding principal hereunder and shall satisfy and discharge the liability for principal on this Note to the extent of the sum represented by such check or wire transfer. Interest shall be payable in Common Stock (as defined below) pursuant to paragraph 3(f) herein.
 
This Note is subject to the following additional provisions:
 
1. The Company shall be entitled to withhold from all payments any amounts required to be withheld under applicable laws.
 
2. This Note may be transferred or exchanged only in compliance with the Securities Act of 1933, as amended ("Act"), and applicable state securities laws. Holder shall provide the Company with 3-day written notice of the Note's transfer and shall presume that any attempted transfer to a party is deemed qualified by the Holder. Any attempted transfer to a non-qualifying party shall be treated by the Company as void. Prior to due presentment for transfer of this Note, the Company and any agent of the Company may treat the person in whose name this Note is duly registered on the Company's records as the owner hereof for all other purposes, whether or not this Note be overdue, and neither the Company nor any such agent shall be affected or bound by notice to the contrary. Any Holder of this Note electing to exercise the right of conversion set forth in Section 3(a) hereof, in addition to the requirements set forth in Section 3(b) and 3(c), and any prospective transferee of this Note, also is required to give the Company written confirmation that this Note is being converted ("Notice of Conversion") in the form annexed hereto as Exhibit B-1. The date of receipt (including receipt by telecopy) of such Notice of Conversion shall be the Conversion Date. 
 
	 
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3. Note Conversions; Interest Payments; Prepayments, Transfers, Etc.
 
(a) The Holder of this Note is entitled, at its option, beginning on the 181th day after Effective Date, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock (the "Common Stock") at a price ("Conversion Price") for each share of Common Stock equal to a discount of fifty percent (50%) of the lowest trading price of the Common Stock as reported on the OTCQB marketplace which the Company's shares are traded or any market upon which the Common Stock may be traded in the future ("Exchange"), for the ten (10)priortrading days including the day upon which a Notice of Conversion is received by the Company and its transfer agent (provided such Notice of Conversion is delivered by electronic method of communication to the Company or its transfer agent after 4 P.M. Eastern Standard or Daylight Savings Time if the Holder wishes to include the same day closing price) beginning on the 181st day after Effective Date. 
 
(b) If the shares have not been delivered within three (3) business days, the Notice of Conversion may be rescinded. Such conversion shall be effectuated by the transfer agent of the Company delivering the shares of Common Stock to the Holder within three (3) business days of receipt by the Company of the Notice of Conversion. Accrued but unpaid interest shall be subject to conversion. No fractional shares or scrip representing fractions of shares will be issued on conversion, but the number of shares issuable shall be rounded to the nearest whole share. To the extent the Conversion Price of the Company's Common Stock closes below the par value per share, the Company will take all steps necessary to solicit the consent of the stockholders to reduce the par value to the lowest value possible under law. The Company agrees to honor all conversions submitted pending this decrease.
 
(c) At any time or times on or after the Maturity Date, the Holder shall be entitled to convert all of the outstanding and unpaid principal amount of this Note into fully paid and non-assessable shares of Common Stock in accordance with the stated Conversion Price. The Holder shall not be entitled to convert on a Conversion Date that amount of the Note in connection with that number of shares of Common Stock which would be in excess of the sum of (i) the number of shares of Common Stock beneficially owned by the Holder and its affiliates on a Conversion Date, (ii) any Common Stock issuable in connection with the unconverted portion of the Note, and (iii) the number of shares of Common Stock issuable upon the conversion of the Note with respect to which the determination of this provision is being made on a Conversion Date, which would result in beneficial ownership by the Holder and its affiliates of more than 4.99% of the outstanding shares of Common Stock of the Company on such Conversion Date. For the purposes of the provision to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended, and Regulation 13d-3 thereunder. Subject to the following, the Holder shall not be limited to aggregate conversions of 4.99% ("Conversion Limitation 1"). The Holder shall have the authority to determine whether the restriction contained in this Section 3(c) will limit any conversion hereunder. The Holder may waive the conversion limitation described in this Section 3(c), in whole or in part, upon and effective after 61-days prior written notice to the Company to increase such percentage to up to 9.99% ("Conversion Limitation 2").
 
(d) The Company shall not issue any fraction of a share of Common Stock upon any conversion; if such issuance would result in the issuance of a fraction of a share of Common Stock, the Company shall round such fraction of a share of Common Stock up to the nearest whole share except in the event that rounding up would violate the conversion limitation set forth in section 3(c) above.
 
	 
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(e) If the Company, at any time after the Issuance Date, shall issue any securities convertible into or exchangeable for, directly or indirectly, Common Stock ("Convertible Securities"), other than the Note, or any rights or warrants or options to purchase any such Common Stock or Convertible Securities, shall be issued or sold (collectively, the "Common Stock Equivalents") and the aggregate of the price per share for which Additional Shares of Common Stock may be issuable thereafter pursuant to such Common Stock Equivalent, plus the consideration received by the Company for issuance of such Common Stock Equivalent divided by the number of shares of Common Stock issuable pursuant to such Common Stock Equivalent (the "Aggregate Per Common Share Price") shall be less than the applicable Conversion Price then in effect, or if, after any such issuance of Common Stock Equivalents, the price per share for which Additional Shares of Common Stock may be issuable thereafter is amended or adjusted, and such price as so amended shall make the Aggregate Per Share Common Price be less than the applicable Conversion Price in effect at the time of such amendment or adjustment, then the applicable Conversion Price upon each such issuance or amendment shall be reduced to the lower of: (i) the Conversion Price; or (ii) a twenty-five percent (25%) discount to the lowest Aggregate Per Common Share Price (whether or not such Common Stock Equivalents are actually then exercisable, convertible or exchangeable in whole or in part) as of the earlier of (A) the date on which the Company shall enter into a firm contract for the issuance of such Common Stock Equivalent, or (B) the date of actual issuance of such Common Stock Equivalent. No adjustment of the applicable Conversion Price shall be made under this Section 6 upon the issuance of any Convertible Security which is outstanding on the day immediately preceding the Issuance Date. No adjustment shall be made to the Conversion Price upon the issuance of Common Stock pursuant to the exercise, conversion or exchange of any Convertible Security or Common Stock Equivalent where an adjustment to the Conversion Price was made as a result of the issuance or purchase of any Convertible Security or Common Stock Equivalent.
 
(f) Interest on any unpaid principal balance of this Note shall be paid at the rate of ten percent (10%) per annum with the first payment being made on the sixth-month anniversary of this Note. Interest shall be paid by the Company in Common Stock ("Interest Shares"). Holder may, at any time after six months, send in a Notice of Conversion to the Company for Interest Shares based on the formula provided in Section 3(a) above. The dollar amount converted into Interest Shares shall be all or a portion of the accrued interest calculated on the unpaid principal balance of this Note to the date of such notice. 
 
(g) The Notes may be prepaid, in whole or in part, with the following penalties: (i) if the note is prepaid within 90 days of the issuance date, then at 120% of the face amount plus any accrued interest; (ii) if the note is prepaid within 91 days after the issuance date but less than 150 days after the issuance date, then at 130% of the face amount plus any accrued interest; (iii) if the note is prepaid within 150 days after the issuance date but less than 180 days after the issuance date, then at 140% of the face amount plus any accrued interest. This Note may not be prepaid after the 180th day without written permission from Holder. Such redemption must be closed and funded within three (3) days of giving notice of redemption of the right to redeem shall be null and void.
 
(h) Upon (i) a transfer of all or substantially all of the assets of the Company to any person in a single transaction or series of related transactions, (ii) a reclassification, capital reorganization or other change or exchange of outstanding shares of the Common Stock, other than a forward or reverse stock split or stock dividend, or (iii) any consolidation or merger of the Company with or into another person or entity in which the Company is not the surviving entity (other than a merger which is effected solely to change the jurisdiction of incorporation of the Company and results in a reclassification, conversion or exchange of outstanding shares of Common Stock solely into shares of Common Stock) (each of items (i), (ii) and (iii) being referred to as a "Sale Event"), then, in each case, the Company shall, upon request of the Holder, redeem this Note in cash for 150% of the principal amount, plus accrued but unpaid interest through the date of redemption, or at the election of the Holder, such Holder may convert the unpaid principal amount of this Note (together with the amount of accrued but unpaid interest) into shares of Common Stock immediately prior to such Sale Event at the Conversion Price.
 
	 
	50

	

	 

 
(i) In case of any Sale Event (not to include a sale of all or substantially all of the Company's assets) in connection with which this Note is not redeemed or converted, the Company shall cause effective provision to be made so that the Holder of this Note shall have the right thereafter, by converting this Note, to purchase or convert this Note into the kind and number of shares of stock or other securities or property (including cash) receivable upon such reclassification, capital reorganization or other change, consolidation or merger by a holder of the number of shares of Common Stock that could have been purchased upon exercise of the Note and at the same Conversion Price, as defined in this Note, immediately prior to such Sale Event. The foregoing provisions shall similarly apply to successive Sale Events. If the consideration received by the holders of Common Stock is other than cash, the value shall be as determined by the Board of Directors of the Company or successor person or entity acting in good faith.
 
4. The Holder agrees that so long as this Note from the Holder and the Company remains outstanding, the Holder will not enter into or effect "short sales" of the Common Stock or hedging transaction which establishes a net short position with respect to the Common Stock of the Company. The Company acknowledges and agrees that upon delivery of a conversion notice by the Holder, the Holder immediately owns the shares of Common Stock described in the conversion notice and any sale of those shares issuable under such conversion notice would not be considered short sales. 
 
5. No provision of this Note shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of, and interest on, this Note at the time, place, and rate, and in the form, herein prescribed.
 
6. The Company hereby expressly waives demand and presentment for payment, notice of non-payment, protest, notice of protest, notice of dishonor, notice of acceleration or intent to accelerate, and diligence in taking any action to collect amounts called for hereunder and shall be directly and primarily liable for the payment of all sums owing and to be owing hereto.
  
7. The Company agrees to pay all costs and expenses, including reasonable attorneys' fees and expenses, which may be incurred by the Holder in collecting any amount due under this Note.
 
8. If one or more of the following described "Events of Default" shall occur:
 
(a) The Company shall default in the payment of principal or interest on this Note to the Holder by the Company as of the Maturity Date; or
  
(b) Any of the representations or warranties made by the Company herein or in any certificate or financial or other written statements heretofore or hereafter furnished by or on behalf of the Company in connection with the execution and delivery of this Note under which this note was issued shall be false or misleading in any respect; or
 
(c) The Company shall fail to perform or observe, in any respect, any covenant, term, provision, condition, agreement or obligation of the Company under this Note or any other note issued to the Holder; or
 
	 
	51

	

	 

 
(d) The Company shall (1) make an assignment for the benefit of creditors or commence proceedings for its dissolution; (2) apply for or consent to the appointment of a trustee, liquidator or receiver for its or for a substantial part of its property or business; (3) file a petition for bankruptcy relief, consent to the filing of such petition or have filed against it an involuntary petition for bankruptcy relief, all under federal or state laws as applicable; or
 
(e) A trustee, liquidator or receiver shall be appointed for the Company or for a substantial part of its property or business without its consent and shall not be discharged within sixty (60) days after such appointment; or
 
(f) Any governmental agency or any court of competent jurisdiction at the instance of any governmental agency shall assume custody or control of the whole or any substantial portion of the properties or assets of the Company; or
 
(g) One or more money judgments, writs or warrants of attachment, or similar process, in excess of fifty thousand dollars ($50,000) in the aggregate, shall be entered or filed against the Company or any of its properties or other assets and shall remain unpaid, unvacated, unbonded or unstayed for a period of thirty (30) days or in any event later than five (5) days prior to the date of any proposed sale thereunder with the exception of the current litigation that is already disclosed as reported on the Company's public filings; or
 
(h) The Company shall have its Common Stock delisted from a market (including the OTCQB marketplace) or, if the Common Stock trades on an exchange, then trading in the Common Stock shall be suspended for more than ten (10) consecutive days;
 
(i) The Company shall not deliver to the Holder the Common Stock pursuant to paragraph 4 herein without restrictive legend within three (3) business days of its receipt of a Notice of Conversion (provided that a reasonable attorney opinion has been provided by Holder to the Company in which it deems it can reasonably rely); or
 
(j) The Company shall not be "current" in its filings with the Securities and Exchange Commission, and such shall not be cured within ten (10) business days; or
 
(k) The Company shall lose the "bid" price for its stock and a market (including the OTCBB marketplace or other exchange)
  
Then, or at any time thereafter, unless cured within five (5) business days, and in each and every such case, unless such Event of Default shall have been waived in writing by the Holder (which waiver shall not be deemed to be a waiver of any subsequent default) at the option of the Holder and in the Holder's sole discretion, the Holder may consider this Note immediately due and payable, without presentment, demand, protest or (further) notice of any kind (other than notice of acceleration), all of which are hereby expressly waived, anything herein or in any note or other instruments contained to the contrary notwithstanding, and the Holder may immediately, and without expiration of any period of grace, enforce any and all of the Holder's rights and remedies provided herein or any other rights or remedies afforded by law. Upon an Event of Default, interest shall accrue at a default interest rate of 24% per annum or, if such rate is usurious or not permitted by current law, then at the highest rate of interest permitted by law. In the event of a breach of Section 8(i) the penalty shall be $50 per day the shares are not issued beginning on the 5th day after the conversion notice was delivered to the Company. This penalty shall increase to $100 per day beginning on the 10th day. The penalty for a breach of Section 8(k) shall be an increase of the outstanding principal amounts by 20%. In case of a breach of Section 8(h), the outstanding principal due under this Note shall increase by 50%. Further, if a breach of Section 8(m) occurs or is continuing after the 6-month anniversary of the Note, then the Holder shall be entitled to use the lowest closing bid price during the delinquency period (after cure period) as a base price for the conversion. For example, if the lowest closing bid price during the delinquency period is $0.01 per share and the conversion discount is 50% the Holder may elect to convert future conversions at $0.001 per share. If this Note is not paid at maturity, the outstanding principal due under this Note shall increase by ten percent (10%).
 
	 
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9. At the Holder's election, if the Company fails for any reason to deliver to the Holder the conversion shares by the by the 3rd business day following the delivery of a Notice of Conversion to the Company and if the Holder incurs a Failure to Deliver Loss, then at any time the Holder may provide the Company written notice and documentary evidence indicating the amounts payable to the Holder in respect of the Failure to Deliver Loss and the Company must make the Holder whole as follows: Failure to Deliver Loss = [(High trade price at any time on or after the day of exercise) x (Number of conversion shares)]. Such failure to deliver will be repayable in the Company's Common Stock.
 
10. In case any provision of this Note is held by a court of competent jurisdiction to be excessive in scope or otherwise invalid or unenforceable, such provision shall be adjusted rather than voided, if possible, so that it is enforceable to the maximum extent possible, and the validity and enforceability of the remaining provisions of this Note will not in any way be affected or impaired thereby.
 
11. Neither this Note nor any term hereof may be amended, waived, discharged or terminated other than by a written instrument signed by the Company and the Holder.
 
12. The Company represents that it is not a "shell" issuer and has never been a "shell" issuer or that if it previously has been a "shell" issuer that at least 12 months have passed since the Company has reported Form 10 type information indicating it is no longer a "shell issuer.
 
13. The Holder agrees that so long as this Note from the Holder and the Company remains outstanding, the Holder will not enter into or effect "short sales" of the Common Stock or hedging transaction which establishes a net short position with respect to the Common Stock of the Company. The Company acknowledges and agrees that upon delivery of a conversion notice by the Holder, the Holder immediately owns the shares of Common Stock described in the conversion notice and any sale of those shares issuable under such conversion notice would not be considered short sales.
 
14. The Company will give the Holder direct notice of any corporate actions, including but not limited to name changes, stock splits, recapitalizations etc. This notice shall be given to the Holder as soon as possible under law.
 
15. Any dispute or claim arising to or in any way related to this Note or the rights and obligations of each of the parties hereto may be settled by binding arbitration pursuant. All arbitration shall be conducted in accordance with the rules and regulations of the American Arbitration Association ("AAA"). AAA shall designate an arbitrator from an approved list of arbitrators following both parties' review and deletion of those arbitrators on the approved list having a conflict of interest with either party. The Company agrees that a final non-appealable judgment in any such suit or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on such judgment or in any other lawful manner.The Company hereto knowingly and voluntarily waives any and all rights it may have to a trial by jury with respect to any litigation based on, or arising out of, under, or in connection with, this note.
 
16. This Note shall be governed by and construed in accordance with the laws of Florida applicable to contracts made and wholly to be performed within the State of Florida and shall be binding upon the successors and assigns of each party hereto. The Holder and the Company hereby mutually waive trial by jury and consent to exclusive jurisdiction and venue in the courts of the State of Florida. This Agreement may be executed in counterparts, and the facsimile transmission of an executed counterpart to this Agreement shall be effective as an original.
 
[SIGNATURES ON PAGE TO FOLLOW]
 
	 
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IN WITNESS WHEREOF, the Company has caused this Note to be duly executed by an officer thereunto duly authorized on the date referenced below.
 
 
	 	ELITE DATA SERVICES, INC.	
	 	  	 	 
	Date: August 26, 2016	By:	/s/ Charles Rimlinger 	
	 
	 
	Charles Rimlinger, 	 
	 	 	Chief Executive Officer	 

 
 
 
 
	 
	54

	

	 

 
EXHIBIT B-1
 
NOTICE OF CONVERSION
 
(To be Executed by the Registered Holder in order to Convert the Note)
 
The undersigned hereby irrevocably elects to convert $___________ of the above Note into _________ Shares of Common Stock of Elite Data Services, Inc. ("Shares") according to the conditions set forth in such Note, as of the date written below.
 
If Shares are to be issued in the name of a person other than the undersigned, the undersigned will pay all transfer and other taxes and charges payable with respect thereto.
 
Date of Conversion: ________________________________________
 
Applicable Conversion Price: _________________________________
 
Signature: _______________________________________________
[Print Name of Holder and Title of Signer]
Address: ________________________________________________
 
SSN or EIN: _____________________________________________
 
Shares are to be registered in the following name: 
 
Name: ______________________________
 
Address: ____________________________
 ____________________________
 
Tel: ________________________________ 
 
SSN or EIN: _________________________
 
Shares are to be sent or delivered to the following account:
 
Account Name: _______________________
   _______________________
 
Address: ____________________________
 ____________________________
  ____________________________
 
 
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