Document:

Exhibit 10.1

 

AGREEMENT
AND PLAN OF MERGER

BY AND AMONG

KINGDOM KONCRETE, INC.,

LATITUDE GLOBAL ACQUISITION CORP.

 

AND

Latitude 360, Inc.

DATED AS OF APRIL 9, 2014

 

 

 

    	 

    	 

    

TABLE
OF CONTENTS

	 	 	 	 	Page No.
	 	 	 	 	 
	 	 	 	 	 
	ARTICLE
    I THE MERGER
	 	 	 	 	1
	 	1.1.	The
Merger	 	1
	 	1.2.	Closing, Effective Time	 	2
	 	1.3.	Effects of Merger	 	2
	 	1.4.	Articles of Incorporation	 	2
	 	1.5.	Bylaws	 	2
	 	1.6.	Directors and Officers	 	2
	 	 	 	 	 
	ARTICLE II EFFECT OF THE MERGER ON CAPITAL STOCK	2
	 	 	 	 	 
	 	2.1.	Conversion of Capital Stock	 	3
	 	2.2.	Exchange of Interests	 	3
	 	2.3.	Certain Adjustments	 	5
	 	2.4.	Convertible
Preferred Stock; Convertible Notes, etc	 	5
	 	2.5.	No
Indebtedness or Expenses	 	6
	 	2.6.	Additional Action	 	6
	 	2.7.	Taking
of Necessary Action; Further Action	 	7
	 	2.8.	Dissenters’
Rights	 	7
	 	 	 	 	 
	ARTICLE III REPRESENTATIONS AND WARRANTIES OF L360	7
	 	 	 	 	 
		3.1.	Organization
and Qualification	 	7
	 	3.2.	Equity
Investments	 	8
	 	3.3.	Authority
to Execute and Perform Agreement	 	8
	 	3.4.	Binding Effect	 	8
	 	3.5.	Capitalization	 	8
	 	3.6.	Vote
Required; Board of Directors’ Approval	 	9
	 	3.7.	Litigation	 	9
	 	3.8.	Title to Properties; Absence of Liens	 	9
	 	3.9.	Compliance with Laws	 	9
	 	3.10.	Consent and Approvals	 	10
	 	3.11.	Non-contravention	 	10
	 	3.12.	Material Contracts	 	10
	 	3.13.	Taxes	 	10
	 	3.14.	Financial Statements	 	11
	 	3.15	Books and Records	 	12
	 	3.16.	Intellectual Property	 	12
	 	3.17.	Environmental Matters	 	12
	 	3.18	Real Property	 	13
	 	3.19.	Labor Matters	 	13
	 	3.20.	Absence of Liabilities	 	13
	 	3.21.	Absence of Certain Changes or Events	 	13
	 	3.22.	Full Disclosurte	 	14
	 	3.23.	Real Property Leases	 	14
	 	3.24	Insurance	 	14
	 	3.25.	Employee Benefits	 	15
	 	3.26.	Board of Directors Action	 	15
	 	3.27.	Articles of Incorporation, Bylaws, and Minute Books	 	15
	 	 	 	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE COMPANY
    AND MERGER SUB	15
	 	 	 	 	 
	 	4.1.	Organization and Qualification; Subsidiaries	 	15
	 	4.2.	Equity Investment	 	16
	 	4.3.	Authority to Execute and Perform Agreement	 	16
	 	4.4.	Binding Effect	 	16
	 	4.5.	Capitalization	 	16
	 	4.6.	Approvals	 	17
	 	4.7.	SEC Reports and Financial Statements	 	17
	 	4..8.	No Material Adverse Change	 	18
	 	4.9.	Books and Records	 	18
	 	4.10.	Litigation	 	18
	 	4.11.	Absence of Liabilities	 	18
	 	4.12.	Title to Properties; Absence of Liens	 	19
	 	4.13.	Compliance with Laws	 	19
	 	4.14.	Intellectual Property	 	19
	 	4.15.	Non-Contravention	 	19
	 	4.16.	Consents and Approvals	 	19
	 	4.17.	Material Contracts	 	19
	 	4.18.	Taxes	 	20
	 	4.19.	Environmental Matters	 	21
	 	4.20.	Real Property	 	22
	 	4.21.	Broker’s Fees	 	22
		4.22.	Labor Matters	 	22
	 	4.23	Articles of Incorporation, Bylaws, and Minute Books	 	22
	 	4.24.	Full Disclosure	 	22
	 	 	 	 	 
	ARTICLE
    V ADDITIONAL AGREEMENTS OF THE PARTIES	22
	 	 	 	 	 
	 	5.1.	Actions Pending Closing	 	22
	 	5.2.	L360 Shareholders’ Approval	 	24
	 	5.3.	Efforts; Consents	 	25
	 	5.4.	Filing of Tax Returns; Payment of Taxes	 	25
	 	5.5.	Access to Information		25
	 	5.6.	Confidentiality	 	26
	 	5.7.	Notification of Certain Matters	 	26
	 	5.8.	Non-Solicitation	 	27
	 	5.9.	Further Assurances	 	28
	 	5.10.	Public Disclosure	 	28
	 	5.11.	Board of Directors	 	28
	 	5.12.	Compliance with Securities Laws Relating to the Issuance of the Merger Shares	28
	 	5.14.	Reorganization	 	28
	 	5.15.	Reasonable Commercial Efforts and Further Assurances	 	28
	 	5.16	Indemnification	 	29
	 	5.17.	Payment of Certain Expenses by L360	 	29
	 	5.18.	Survival of Representations and Warranties	 	29
	 	5.19.	Spin-Off of Kingdom Concrete, Inc., Subsidiary	 	29
	 		 	 	 
	ARTICLE VI CONDITIONS TO CLOSING	29
	 	 	 	 	 
	 	6.1.	Conditions to Each Party’s Obligations to Consummate the Transactions	29
	 	6.2.	Conditions
to Obligations of the Company, Kingdom Texas and Merger Sub to Consummate the Transactions	30
	 	6.3.	Conditions to Obligations of L360 to Consummate the Transactions	31
	 	 	 	 	 
	ARTICLE
    VII TERMINATION	32
	 	 	 	 	 
	 	7.1.	Termination	 	32
	 	7.2.	Effect of Termination	 	33
	 	7.3	Expenses; Termination Fees	 	33
	 	 	 	 	 
	ARTICLE VIII MISCELLANEOUS	34
	 	 	 	 	 
	 	8.1.	Certain Definitions; Rules of Construction	 	34
	 	8.2.	Waivers and Amendments	 	39
	 	8.3.	Governing Law	 	39
	 	8.4.	Notices	 	39
	 	8.5.	Section Headings	 	40
	 	8.6.	Counterparts	 	40
	 	8.7.	Assignments	 	41
	 	8.8.	Entire Agreement; Enforceability	 	41
	 	8.9.	Severability	 	41
	 	 	 	 	 
	Exhibits	 	 
	 	 	 	 	 
	Exhibit A	Form of Investment Letter	 	 
	 	 	 	 	 

	Schedules	 	 
	 	 	 
	Schedule
2.2(c)	List of L360 Shareholders	 
	Schedule
2.4(a)	List of Convertible Securities Not Converting at Closing	 
	Schedule
3.2	L360 Equity Investments 	 
	Schedule 3.5	 L360 Capitalization 	 
	Schedule 3.7	L360 Litigation	 
	Schedule 3.8	L360 Title to Properties; Absence of Liens	 
	Schedule 3.10	L360 Consents and Approvals	 
	Schedule 3.12	L360 List of Material Contracts	 
	Schedule 3.16	L360 Intellectual Property	 
	Schedule 3.18	L360 Real Property	 
	Schedule 3.20	L360 Absence of Liabilities	 
	Schedule 3.21	L360 Absence of Certain Changes or Events.	 
	Schedule 3.23	L360 List of Real Property Leases and Subleases	 
	Schedule 3.24	L360 List of Insurance	 
	Schedule 4.7	Company SEC Reports and Financial Statements	 
	Schedule 4.8	Company Changes Since December 31, 2013	 
	Schedule 4.11	Company Absence of Liabilities	 
	Schedule 4.16	Company Consents and Approvals	 
	Schedule 4.17	Company List of Material Contracts	 
	Schedule 4.18	Company Taxes	 
	 	 	 

 

 

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AGREEMENT
AND PLAN OF MERGER

THIS
AGREEMENT AND PLAN OF MERGER (this “Agreement”), dated as of April 8, 2014, is entered into by and among
KINGDOM KONCRETE, INC., a Nevada corporation (the “Company”), LATITUDE GLOBAL ACQUISITION CORP., a Florida
corporation and a wholly-owned subsidiary of the Company (the “Merger Sub”), and LATITUDE 360, INC., a Florida
corporation (“L360”). The Company, the Merger Sub and L360 each, individually a “party”
or, collectively, the “parties.”

W
I T N E S S E T H:

WHEREAS,
the respective Boards of Directors of the Merger Sub and L360 have each approved the merger of the Merger Sub with and into L360,
with L360 surviving (the “Merger”), on the terms and conditions contained herein and in accordance with the
Florida Business Corporation Act (the “FLBCA”), and have determined that the Merger and the transactions contemplated
herein are advisable and in the best interest of their respective entities and shareholders;

WHEREAS,
the Board of Directors of the Company has approved the provisions of this Agreement, applicable to the Company including, without
limitation, the issuance of shares of common stock, par value $0.001 per share of the Company, in connection with the Merger,
as more specifically provided in this Agreement;

WHEREAS,
the parties hereto desire to make certain representations, warranties, covenants and agreements in connection with the Merger
and to prescribe various conditions to the Merger; and

WHEREAS,
for U.S. federal income tax purposes, it is intended that the Merger qualify as a reorganization under the provisions of Section
368(a) and Section 351 of the Code, and that this Agreement shall constitute a “plan of reorganization” for the purposes
of Section 368 and Section 351 of the Code.

NOW
THEREFORE, in consideration of the mutual representations, warranties, covenants and agreements contained herein, and intending
to be legally bound hereby, the parties hereto agree as follows:

Article
I

THE MERGER

1.1.           
The Merger. Upon the terms and subject to the conditions of this Agreement, at the Effective Time (as defined below), the
Merger Sub shall be merged with and into L360 in accordance with the applicable provisions of the FLBCA and in accordance with
this Agreement, and the separate existence of the Merger Sub shall cease. L360 shall be the surviving corporation in the Merger
(hereinafter sometimes referred to as the “Surviving Corporation”), and shall continue under the laws of Florida.
The Surviving Corporation shall be operated as a wholly-owned subsidiary of the Company. The Merger shall have the effects specified
in this Agreement, the Certificate of Merger (as defined below) and the applicable provisions of the FLBCA.

1.2.           
Closing; Effective Time. Subject to the satisfaction or waiver of all of the conditions to Closing contained in Article
VI, the closing of the Merger (the “Closing”), shall take place at the offices of Davisson & Associates,
PA, 4124 Quebec Avenue North, Suite 306, Minneapolis, MN 55427 (“Davisson”), as soon as practicable (but not
later than 5 Business Days) after the satisfaction or waiver of the conditions to Closing contained in Article VI (other than
those conditions that by their nature are to be satisfied at the Closing, but subject to the fulfillment or waiver of those conditions),
unless another date or place is agreed to in writing by the parties hereto. The date on which the Closing actually occurs is hereinafter
referred to as the “Closing Date.” As soon as is practicable after the Closing, the parties hereto shall cause
the Merger to be consummated by delivering to the Secretary of State of the State of Florida a Certificate of Merger (the “Certificate
of Merger”), in such form as required by, and executed and acknowledged in accordance with, the relevant provisions
of the FLBCA. The Merger shall become effective as of the date and at such time (the “Effective Time”) as the
Certificate of Merger is filed with the Secretary of State of the State of Florida with respect to the Merger, but not later than
May 2, 2014 (the “Outside Closing Date”).

1.3.           
Effects of Merger. The Merger shall have the effects set forth in the applicable provisions of the FLBCA. Without limiting
the generality of the foregoing, and subject thereto, at the Effective Time, all the properties, rights, privileges, powers and
franchises of the Merger Sub shall vest in the Surviving Corporation, and all debts, liabilities and duties of Merger Sub shall
become the debts, liabilities and duties of the Surviving Corporation.

1.4.           
Articles of Incorporation. The Articles of Incorporation of L360 in effect immediately prior to the Effective Time shall
become, from and after the Effective Time, the Articles of Incorporation of the Surviving Corporation, until amended or repealed
in accordance with the terms thereof and with Applicable Law.

1.5.           
Bylaws. The Bylaws of L360 in effect immediately prior to the Effective Time shall become, from and after the Effective
Time, the Bylaws of the Surviving Corporation, until thereafter amended or repealed in accordance with the terms thereof and with
Applicable Law.

1.6.           
Directors and Officers. The directors and officers of L360 immediately prior to the Effective Time shall become at the
Effective Time, the directors and officers of the Surviving Corporation, each to hold office from the Effective Time in accordance
with the Articles of Incorporation and Bylaws of the Surviving Corporation until their respective successors are duly elected
or appointed and qualify, or they resign or are removed. In addition, the officers and directors of L360 shall be appointed as
officers and directors of the Company immediately after the Effective Time, in accordance with the Articles of Incorporation and
Bylaws of the Company until their respective successors are duly elected or appointed and qualify, or they resign or are removed.

Article
II

EFFECT OF THE MERGER ON CAPITAL STOCK

2.1.           
Conversion of Capital Stock. As of the Effective Time, by virtue of the Merger and without any action on the part of the
parties or the registered holders of any shares of capital stock of the Company (each a “Company Stockholder,”
and collectively, the “Company Stockholders”):

(a)               
Subject to adjustment at Closing as may be required hereunder, each share of common stock of L360, par value $0.001 per share,
(the “L360 Common Stock”), assuming that there are no shares of L360 Common Stock that are Dissenting Shares,
shall be converted into the right to receive approximately 2.7874899 shares (the “Conversion Rate”) of a fully
paid and non-assessable share of common stock, par value $0.001 per share, of the Company (the “Company Common Stock”).
To the extent that there are any Dissenting Shares, the Conversion Rate shall be appropriately adjusted, along with any other
adjustments provided for in this Agreement, so that immediately after the Effective Time, the holders of the L360 Common Stock
(each an “L360 Shareholder” and collectively the “L360 Shareholders”) shall own, in the
aggregate, One Hundred Fifty Four Million Seven Hundred Thirty Five Thousand Five Hundred Four (154,735,504) shares of Company
Common Stock (on a fully diluted as converted basis) (the “Merger Shares”). The Merger Shares will represent
approximately ninety-nine and three tenths of one percent (99.3%) of the issued and outstanding shares of Company Common Stock
after giving effect to (i) a reserve for the issuance of approximately Four Million One Hundred Forty Two Thousand Five Hundred
Ninety Six (4,142,596) shares of Company Common Stock to new investor(s) and (ii) approximately One Million One Hundred Twenty
One Thousand Nine Hundred (1,121,900) shares of Company Common Stock retained by certain existing shareholders of the Company.

(b)              
At the Effective Time, all shares of L360 Common Stock, other than any shares of L360 Common Stock that are Dissenting Shares,
shall no longer be outstanding and shall automatically be cancelled and retired and shall cease to exist, and each L360 Shareholder
shall cease to have any rights with respect thereto, except the right to receive the Merger Shares.

(c)               
No fraction of a share of Company Common Stock will be issued, but in lieu of such issuance, the number of shares of Company Common
Stock issued to each L360 Shareholder who would otherwise be entitled to a fraction of a share of Company Common Stock (after
aggregating all fractional shares of Company Common Stock to be received by such L360 Shareholder) shall be rounded to the nearest
whole share (with 0.5 being rounded up).

(d)              
Notwithstanding the foregoing, no amounts shall be payable at or after the Effective Time with respect to any Dissenting Shares
(defined below) or any shares of L360 Common Stock with respect to which dissenters’ rights have not terminated. In the
case of Dissenting Shares, payment shall be made in accordance with Section 2.9 herein and the FLBCA. In the case of any
shares with respect to which dissenters’ rights have not terminated as of the Effective Time, if such shares of L360 Common
Stock become Dissenting Shares, payment shall be made in accordance with Section 2.9 herein and the FLBCA, and if, instead,
the dissenters’ rights with respect to such Company Shares irrevocably terminate after the Effective Time, such shares shall
be entitled only to receive the applicable Merger Shares upon delivery of the certificate(s) representing the applicable shares
of L360 Common Stock.

2.2.           
Exchange of Interests.

(a)               
Procedure. At least five (5) days prior to the Closing Date, the L360 Shareholders shall deposit, or shall cause to be
deposited, with Signature Stock Transfer Inc. (the “Exchange Agent”), in accordance with transmittal instructions
delivered by the Exchange Agent to the L360 Shareholders on behalf of the Company, certificates representing the shares of L360
Common Stock (other than any shares of L360 Common Stock that are Dissenting Shares), accompanied by stock powers duly executed
in blank or duly executed instruments of transfer and any other documents that are necessary to transfer to the Company good and
valid title to the shares of L360 Common Stock free and clear of all Liens. All certificates representing the shares of L360 Common
Stock surrendered to the Exchange Agent on the Company’s behalf shall be canceled by the Exchange Agent at the Effective
Time. Each certificate representing shares of L360 Common Stock (other than any certificate representing Dissenting Shares) shall
be deemed, from and after the Effective Time, to represent only the right to receive the applicable Merger Shares in accordance
with this Agreement.

(b)              
Lost Stock Affidavit. In the event any certificate representing any shares of L360 Common Stock shall have been lost, stolen
or destroyed, the Board of Directors of the Company may, in its sole discretion, and as condition precedent to the issuance of
the Merger Shares in consideration therefor pursuant to this Agreement, require the owner of such lost, stolen or destroyed certificate
to submit to the Company an affidavit stating that such stock certificate was lost, stolen or destroyed and to give the Company
an indemnity in customary form against any Claim that may be made against the Company with respect to the certificate alleged
to have been lost, stolen or destroyed.

(c)               
Merger Shares. The Company shall use its best efforts to deliver (or cause the Exchange Agent to deliver), within five
(5) Business Days, but in no event more than ten (10) Business Days, after the delivery of the applicable certificates and transfer
documents described in Section 2.2(a), to each of the applicable L360 Shareholders, in connection with the Merger and in
consideration for the conversion of the shares of L360 Common Stock, certificates representing the Merger Shares issued in the
names of the L360 Shareholders as of the Closing Date. The L360 Shareholders of record as of the date of this Agreement, and the
number of L360 Common Stock owned by each L360 Shareholder, are set forth on Schedule 2.2(c), which schedule shall be updated
to reflect the L360 Shareholders of record and their corresponding ownership as of the Closing Date and such updated Schedule
2.2(c) shall be delivered to the Company and the Exchange Agent no later than the day immediately prior to the Closing Date.
If any of the certificates issuable with respect to the Merger Shares are to be issued in the name of a person other than an L360
Shareholder of record, it shall be a condition to the issuance of such Merger Shares that (i) the request shall be in writing
and properly documented (e.g., assigned, endorsed or accompanied by appropriate stock powers), (ii) such transfer shall otherwise
be proper and in accordance with all applicable federal and state laws, rules, regulations or orders, and (iii) the person requesting
such transfer shall pay to the Company any transfer or other taxes payable by reason of the foregoing or establish to the satisfaction
of the Company that such taxes have been paid or are not required to be paid. Notwithstanding the foregoing, none of the Company,
L360 or any of their respective Affiliates, subsidiaries, directors, officers, agents and employees shall be liable to a shareholder
for any Merger Shares issued to such shareholder pursuant to this Section 2.2(c) that are delivered to a public official
pursuant to applicable abandoned property, escheat or similar laws.

(d)              
No Interest. All Merger Shares issued upon exchange of the L360 Common Stock in accordance with the terms hereof shall
be deemed to have been issued or paid in full satisfaction of all rights pertaining to such shares of Company Common Stock.

(e)               
Legend. It is understood that the certificates evidencing the Merger Shares will bear the legends in substantially the
form set forth below:

(i)                
THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
OR UNDER THE SECURITIES LAWS OF ANY OTHER JURISDICTIONS. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE
AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION
OR EXEMPTION THEREFROM. INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR
AN INDEFINITE PERIOD OF TIME. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY
TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE STATE SECURITIES
LAWS;

(ii)              
Any additional legend required by Applicable Law.

The
legend set forth in (i) above shall be removed from any certificate evidencing such Merger Shares upon delivery to the Company
of an opinion by counsel, reasonably satisfactory to the Company, that such security can be freely transferred without such a
registration statement being in effect or that one is in effect, and that such transfer will not jeopardize the exemption or exemptions
from registration pursuant to which the Company issued such Merger Shares.

2.3.           
Certain Adjustments. If after the date hereof and prior to the Effective Time and to the extent permitted by this Agreement,
the outstanding L360 Common Stock or Company Common Stock shall be changed into a different number, class or series of shares
by reason of any reclassification, recapitalization or combination, forward stock split, reverse stock split, stock dividend or
rights issued in respect of such stock, or any similar event shall occur (any such action, an “Adjustment Event”),
the number of Merger Shares issued in exchange for each L360 Shareholder shall be adjusted correspondingly to provide to the L360
Shareholders the right to receive the same economic effect as contemplated by this Agreement immediately prior to such Adjustment
Event.

2.4.           
Convertible Preferred Stock; Convertible Notes, etc.

(a)               
L360 Convertible Securities. Except for certain convertible securities which will not convert into L360 Common Stock at
or prior to the Effective Time (the “L360 Non-Converting Securities”), each outstanding share of preferred
stock, par value $0.001 per share, of L360 (the “L360 Preferred Stock”) convertible into L360 Common Stock,
each warrant to purchase L360 Common Stock (a “L360 Warrant”), and any other security of L360 exchangeable
for or convertible into shares of L360 Common Stock, (referred to hereafter collectively as the “L360 Convertible Securities”)
shall be exchanged or converted into shares of L360 Common Stock immediately prior to Closing such that the shares of L360 Common
Stock issued upon conversion, along with the shares of Company Common Stock underlying the L360 Exchange Convertible Securities
(defined below), shall represent the right to receive the Merger Shares. The L360 Non-Converting Securities as of the date of
this Agreement are set forth on Schedule 2.4(a), which schedule shall be updated to reflect the L360 Non-Converting Securities
as of the Closing Date and such updated Schedule 2.4(a) shall be delivered to the Company no later than the day immediately
prior to the Closing Date.

(b)              
L360 Exchange Convertible Securities. At the Effective Time, to the extent not exercised prior to the Effective Time, each
of the L360 Non-Converting Securities shall be automatically exchanged into a like security of the Company (the “L360
Exchange Convertible Securities”) on the same terms and conditions as the holder of each of the L360 Non-Converting
Securities had immediately prior to the Effective Time; provided, however, that (i) the total number of shares of
Company Common Stock underlying the L360 Exchange Convertible Securities shall be equal to the total number of shares of L360
Common Stock underlying the L360 Non-Converting Securities, immediately prior to the Closing, multiplied by the Conversion Rate
and (ii) the aggregate ownership of the L360 Shareholders, inclusive of the shares of Company Common Stock underlying the L360
Exchange Convertible Securities, shall not exceed the Merger Shares. At the Effective Time, the Company shall expressly assume
the due and punctual observance and performance of each and every covenant contained in, and condition of, the L360 Exchange Convertible
Securities to be performed and observed by L360 and all the obligations and liabilities thereunder.

(c)               
Confirmation. As promptly as practicable after the Effective Time, the Company shall deliver to each holder of an L360
Exchange Convertible Securities a duly executed confirmation that the Company has expressly assumed the due and punctual observance
and performance of each and every covenant contained in, and condition of, the applicable L360 Non-Converting Securities to be
performed and observed by L360 and all the obligations and liabilities thereunder.

(d)              
Shares Reserved. The number of shares of Company Common Stock issuable upon exercise of the L360 Exchange Convertible Securities
shall be reserved by the Company out of authorized but unissued Company Common Stock for issuance upon exercise in full of all
L360 Exchange Convertible Securities after the Effective Time.

2.5.           
No Indebtedness or Expenses. Except as expressly set forth herein, including any Schedule annexed to this Agreement, immediate
prior to the Closing, the Company shall have no indebtedness, accounts payable or accrued expenses of any kind with the exception
of transfer agent fees and such other miscellaneous fees that in the aggregate shall not exceed $2,000.

2.6.           
Additional Action. The Surviving Corporation may, at any time after the Effective Time, take any action, including executing
and delivering any document, in the name and on behalf of L360, necessary to consummate the Merger and confirm the effectiveness
of the Merger, so long as such action is not inconsistent with this Agreement.

2.7.           
Taking of Necessary Action; Further Action. If, at any time after the Effective Time, any further action is necessary or
desirable to carry out the purposes of this Agreement and to vest the Surviving Corporation with full right, title and possession
to all assets, property, rights, privileges, powers and franchises of the L360 and the Merger Sub, the officers and directors
of L360 and the Merger Sub are fully authorized in the name of their respective corporations or otherwise to take, and will take,
all such lawful and necessary action, so long as such action is not inconsistent with this Agreement.

2.8.           
Dissenters’ Rights. Shares of L360 Common Stock that have not been voted to approve the Merger transaction contemplated
by this Agreement or consented thereto in writing and with respect to which appraisal rights have been properly exercised in accordance
with the FLBCA (“Dissenting Shares”) will not be converted into the right to receive the Merger Shares otherwise
payable with respect to such L360 Common Stock at or after the Effective Time, but will instead be converted into the right to
receive from the Surviving Corporation such consideration as may be determined to be due with respect to such Dissenting Shares
pursuant to the provisions of the FLBCA. If a holder of Dissenting Shares (a “Dissenting Shareholder”) withdraws
his or her demand for such payment and appraisal or becomes ineligible for such payment and appraisal, then, as of the Effective
Time or the occurrence of such event of withdrawal or ineligibility, whichever last occurs, such holder’s Dissenting Shares
will cease to be Dissenting Shares and will be converted into the right to receive, and will be exchangeable for, the Merger Shares
in accordance with Section 2.2 of this Agreement. L360 will give the Company and Merger Sub prompt notice of any demand
received by L360 from a holder of Dissenting Shares for appraisal of such Dissenting Shareholder’s shares of L360 Common
Stock, and the Company shall have the right to participate in all negotiations and proceedings with respect to such demand. Each
Dissenting Shareholder who, pursuant to the provisions of the FLBCA, becomes entitled to payment of the value of the Dissenting
Shares will receive payment therefor but only after the value therefor has been agreed upon or finally determined pursuant to
such provisions. Any portion of the Merger Shares that would otherwise have been payable with respect to Dissenting Shares if
such shares of L360 Common Stock were not Dissenting Shares will be issued to the other L360 Shareholders, as a result of an adjustment
to the Conversion Rate, as described in Section 2.1(a).

Article
III

REPRESENTATIONS AND WARRANTIES OF L360

Except
as set forth on the disclosure schedules, L360 hereby represents and warrants to the Company as follows:

3.1.           
Organization and Qualification. L360 is a corporation duly organized, validly existing and in good standing under the laws
of its jurisdiction of incorporation, has requisite corporate power and authority and governmental approvals to own, lease and
operate its properties and to carry on its business as currently conducted. L360 is duly qualified or licensed to do business
and is in good standing in each jurisdiction in which the ownership or leasing of its property or the conduct of its business
requires such qualification or licensing, except where the failure to be so qualified or licensed or in good standing would not,
individually or in the aggregate, have a Material Adverse Effect on L360.

3.2.           
Equity Investments. L360 has no subsidiaries (each a “Subsidiary” and collectively, “Subsidiaries”)
and does not own any equity interest in any other corporation or in any partnership, limited liability company or other form of
business entity, except as set forth on Schedule 3.2. Each Subsidiary is a corporation, limited liability company or other
entity, duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation, has requisite
corporate power and authority and governmental approvals to own, lease and operate its properties and to carry on its business
as currently conducted. Each Subsidiary is duly qualified or licensed to do business and is in good standing in each jurisdiction
in which the ownership or leasing of its property or the conduct of its business requires such qualification or licensing, except
where the failure to be so qualified or licensed or in good standing would not, individually or in the aggregate, have a Material
Adverse Effect on such Subsidiary.

3.3.           
Authority to Execute and Perform Agreement. L360 has the requisite power and all authority required to enter into, execute
and deliver this Agreement and the other Transaction Documents to which it is a party, to perform its obligations hereunder and
thereunder and to consummate the transactions contemplated hereby and thereby (collectively, the “Transactions”).
The execution, delivery and performance by L360 of this Agreement and the other Transaction Documents to which it is a party,
and the consummation by L360 of the Transactions have been duly authorized and approved by all necessary corporate action.

3.4.           
Binding Effect. This Agreement has been validly executed and delivered by L360 and, assuming the due execution and delivery
hereof by the Company, constitutes a valid and binding obligation of L360, enforceable against L360 in accordance with its terms,
except to the extent such enforceability may be limited by (i) bankruptcy, insolvency, reorganization, moratorium or other similar
laws of general applicability affecting or relating to enforcement of creditors’ rights generally, and (ii) general equitable
principles (regardless of whether such enforceability is considered in equity or at law).

3.5.           
Capitalization. The authorized capital stock of L360 consists of 110,000,000 shares of capital stock, (a) 100,000,000 of
which shares are designated as common stock, $0.001 par value per share, and of which ________ shares are issued and outstanding,
as of the date of this Agreement, and (ii) 10,000,000 of which shares are designated as preferred stock, $0.001 par value per
share, and of which _______ shares are issued and outstanding as of the date of this Agreement. All of the issued and outstanding
shares of L360 Common Stock and L360 Preferred Stock are duly authorized, validly issued, fully paid, nonassessable and free of
all preemptive rights. All of the outstanding shares L360 Common Stock and other securities of L360 have been duly and validly
issued in compliance with federal and state securities laws. Except as set forth on Schedule 3.5, there are no existing
options, rights, subscriptions, warrants, unsatisfied preemptive rights, calls, commitments or agreements relating to (i) the
authorized and unissued stock interests of L360, or (ii) any securities or obligations convertible into or exchangeable for, or
giving any Person any right to subscribe for or acquire from L360, any stock interests of L360 and no such convertible or exchangeable
securities or obligations are outstanding. There are no dividends which have accrued or been declared but are unpaid on the capital
stock of L360 and there are no outstanding or authorized stock appreciation, phantom stock or similar rights with respect to L360.
All of the issued and outstanding shares of L360’s capital stock are free and clear of any Liens or other agreements adversely
effecting title to such shares or Claims (other than those created by virtue of this Agreement or by the Company). Prior to the
Closing, all L360 Convertible Securities, except those for those securities listed on Schedule 2.4(a) (as updated in connection
with Closing), shall be either cancelled, exchanged for or converted into shares of L360 Common Stock so that immediately prior
to the Closing, except for those securities listed on Schedule 2.4(a) (as updated in connection with Closing), L360 shall
have no outstanding options, rights, subscriptions, warrants, unsatisfied preemptive rights, calls, commitments or agreements
with respect to any of the securities described in clauses (i) and (ii) above.

3.6.           
Vote Required; Board of Directors’ Approval. The only vote necessary with respect to L360’s approval of the
Merger is the affirmative vote of the L360 Shareholders holding at least a majority of the outstanding shares of L360 Common Stock.
The Board of Directors of L360, by resolutions duly adopted at a meeting duly called and held at which a quorum was present or
by the unanimous written consent in lieu of such a meeting, has approved this Agreement, the other Transaction Documents to which
L360 is a party, the Merger and the Transactions in accordance with the requirements of the FLBCA.

3.7.           
Litigation. There are no judicial, governmental, administrative or arbitral actions, Claims, suits or proceedings or investigations
which involve amounts in excess of $250,000 (collectively, “Material Legal Proceedings”) pending or,
to the Knowledge of L360, threatened against or involving L360, any of the Subsidiaries, or any of their respective properties
or assets, except as set forth on Schedule 3.7. There are no outstanding orders, judgments, injunctions, awards or decrees
of any court, governmental or regulatory body or arbitration tribunal involving amounts in excess of $250,000 against or involving
L360, any of the Subsidiaries, or, to the Knowledge of L360, any of their respective officers, directors, employees or agents
(in such person’s capacity as an officer, director, employee or agent of L360 or any such Subsidiary, and not personally).

3.8.           
Title to Properties; Absence of Liens. L360 and each of its Subsidiaries, as applicable, has (i) good and marketable title
free and clear of any and all Liens and encumbrances of any kind in and to all of its assets and properties necessary for the
conduct of its respective businesses and (ii) sufficient rights to all of their respective assets and properties to permit them
to carry on their respective businesses as currently contemplated, whether real, personal or fixed, free and clear of all Liens,
in each case, except (a) for Liens set forth on Schedule 3.8, (b) for Liens for Taxes not yet due and payable or which
L360 or any applicable Subsidiary is contesting in good faith and for which adequate reserves have been established, (c) for such
properties and assets as may have been sold since the date hereof in the ordinary course of business, and (d) for Liens not securing
debt that do not materially detract from the value or materially interfere with the use of the property subject thereto (collectively,
“Permitted Liens”).

3.9.           
Compliance with Laws. Neither L360 nor any Subsidiary is in violation of, default under, or conflict with, any applicable
order, consent, approval, authorization, registration, declaration, filing, judgment, injunction, award, decree or writ of any
Governmental Body or court of competent jurisdiction (collectively, “Orders”) or any Applicable Law, except
for any such violations that would not, individually or in the aggregate, have a Material Adverse Effect on L360 or any such Subsidiary.

3.10.       
Consents and Approvals. Except for (i) those consents, approvals, orders, authorizations, filings or notices set forth
on Schedule 3.10, (ii) applicable requirements of the Securities Act, the Exchange Act or state securities or “blue
sky” laws (“Blue Sky Laws”), and (iii) the Certificate of Merger, no consent, approval or authorization
of, filing with, or notice to, any Governmental Body is required by L360 in connection with the execution, delivery and performance
by L360 of this Agreement or any of the other Transaction Documents to which L360 is a party, each and every agreement contemplated
hereby and thereby, and the consummation by L360 of the Transactions.

3.11.       
Non-contravention. The execution and delivery of this Agreement and the other Transaction Documents by L360, the performance
by L360 of its obligations hereunder and thereunder, and the consummation of the Transactions contemplated hereby and thereby
by L360 (A) do not and will not conflict with, or result in a breach or violation of (i) any provision of L360’s charter
or bylaws, (ii) any applicable laws, (iii) any material agreement, contract, lease, license or instrument to which L360 or any
of its Subsidiaries is a party, or by which it, its Subsidiaries or any of their respective properties or assets are bound and
(B) will not result in the creation or imposition of any Lien upon any of the property or assets of L360 or any of its Subsidiaries
pursuant to any provision of any contract or Lien.

3.12.       
Material Contracts. Schedule 3.12 sets forth all Material Contracts to which either L360 or any of its Subsidiaries
is a party. L360 has delivered to or made available to the Company a correct and complete copy of each Material Contract. With
respect to each such Material Contract, (a) such Material Contract is legal, valid, binding and enforceable and in full force
and effect with respect to L360 or its Subsidiaries, as applicable, and, to L360’s Knowledge, such Material Contract is
legal, valid, binding and is enforceable and in full force and effect with respect to each other party thereto (in each case except
as enforceability may be limited by bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other similar
laws affecting the enforcement of creditor’s rights generally, and except that the availability of equitable remedies, including
specific performance, is subject to the discretion of the court before which any proceeding therefor may be brought) and (b) (i)
neither L360 nor any of its Subsidiaries has received written notice, from any Person, claiming that L360 or any of its Subsidiaries
is in breach or default under any Material Contract, (ii) to L360’s Knowledge, no other party to any such Material Contract
is in breach or default of any Material Contract and (iii) to L360’s Knowledge, no event has occurred which with notice
or lapse of time would constitute a breach or default under any Material Contract; except, in each case, for breaches, defaults
and events that would not have a Material Adverse Effect on L360 or any of its Subsidiaries. Neither L360 nor any of its Subsidiaries
is a party to any oral contract, agreement or other arrangement which, if reduced to written form, would be required to be listed
on Schedule 3.12 under the terms of this Section 3.12.

3.13.       
Taxes.

(a)               
Filing of Tax Returns. L360 and each of its Subsidiaries, as applicable, has timely filed, or has had timely filed on its
behalf, with the appropriate Taxing authorities all Tax Returns in respect of Taxes it is required to file. The Tax Returns filed
(including any amendments thereto) are complete and accurate in all material respects. Neither L360 nor any Subsidiary has requested
any extension of time within which to file any Tax Return in respect of any Taxes, which Tax Return has not since been filed in
a timely manner. To the Knowledge of L360, no Claim has ever been made by any Taxing authority in a jurisdiction where L360 or
any of its Subsidiaries does not file Tax Returns, or has Tax Returns filed on its behalf, that L360 or any such Subsidiary is
or may be subject to taxation by that jurisdiction, or liable for Taxes owing to that jurisdiction.

(b)              
Payment of Taxes. All Taxes owed by L360 and its Subsidiaries (whether or not shown as due on any Tax Returns) have been
paid in full. L360 and each of its Subsidiaries has withheld and paid all Taxes required to have been withheld and paid in connection
with amounts paid or owing to any employee, independent contractor, creditor, shareholder, or other third party. L360 and each
of its Subsidiaries has made all required estimated Tax payments sufficient to avoid any underpayment penalties. The unpaid Taxes
of L360 and all of its Subsidiaries (A) do not, as of the Closing Date, exceed the reserve for Tax liability (rather than any
reserve for deferred Taxes established to reflect the timing differences between book and Tax income) set forth on the face of
L360’s and its Subsidiaries’ most recent balance sheets (rather than any notes thereto) and (B) do not exceed that
reserve as adjusted for the passage of time through the Closing Date in accordance with the past custom and practice of L360 and
each of its Subsidiaries in filing, or having filed on its behalf, its Tax Returns. The charges, accruals and reserves on the
books of L360 and each of its Subsidiaries in respect of any liability for Taxes (x) based on or measured by net income for any
years not finally determined, (y) with respect to which the applicable statute of limitations has not expired or (z) that has
been previously deferred, are adequate to satisfy any assessment for such Taxes for any such years.

(c)               
Audits, Investigations or Claims. There is no dispute or Claim which has not been resolved concerning any Tax liability
of L360 or any of its Subsidiaries either (A) claimed or raised by any Taxing authority in writing or (B) as to which any of the
directors and officers (and employees responsible for Tax matters) of L360 has Knowledge. There is no currently pending audit
of any Tax Return of L360 or any of its Subsidiaries by any Taxing authority, and L360 has not been notified in writing that any
Taxing authority intends to audit any Tax Return of L360 or any Subsidiary. Neither L360 nor any of its Subsidiaries has executed
any outstanding waivers or consents regarding the application of the statute of limitations with respect to any Taxes or Tax Returns.

3.14.       
Financial Statements.

(a)               
Prior to Closing, L360 shall deliver to the Company copies of its unaudited consolidated balance sheets, statements of income
and statements of cash flows for the fiscal years ended December 31, 2013 and 2012 (the “L360 Financial Statements”).
The L360 Financial Statements present fairly the financial condition and results of operations of L360 and its Subsidiaries, as
applicable, at the dates and for the periods covered by the L360 Financial Statements. L360 represents and warrants that there
has been no material adverse change in the financial condition of L360 or any of its Subsidiaries from that stated in the L360
Financial Statements.

(b)              
The L360 Financial Statements and any notes related thereto comply as to form in all material respects with applicable accounting
requirements, have been prepared in accordance with United States generally accepted accounting principles (“GAAP”)
applied on a consistent basis throughout the periods involved (except as may be indicated in the notes thereto) and fairly present
in all material respects (subject, in the case of the unaudited interim financial statements, to normal, recurring year-end adjustments
none of which are or will be material in amount, individually or in the aggregate) the consolidated financial position of L360
and its Subsidiaries as at the dates thereof and the consolidated results of their operations and cash flows for the periods then
ended.

(c)               
Neither L360 nor any of its Subsidiaries has any direct or indirect liabilities that were not fully and adequately reflected or
reserved against on the applicable consolidated balance sheets or described in the applicable notes to the L360 Financial Statements.
L360 has no Knowledge of any circumstance, condition, event or arrangement that has taken place at any time that may hereafter
give rise to any liabilities.

3.15.       
Books and Records. The books and records, financial and otherwise, of L360 and its Subsidiaries are in all material respects
complete and correct and have been maintained in accordance with sound business and bookkeeping practices so as to accurately
and fairly reflect, in reasonable detail, the transactions and dispositions of the assets and liabilities of L360 and its Subsidiaries,
as applicable.

3.16.       
Intellectual Property.

(a)               
Except as set forth on Schedule 3.16, neither L360 nor any of its Subsidiaries has any Intellectual Property for its business
as now conducted and as proposed to be conducted. To the Knowledge of L360, the businesses as conducted and as proposed to be
conducted by L360 and its Subsidiaries, as applicable, do not and will not cause L360 or any of its Subsidiaries to infringe or
violate any of the Intellectual Property of any other Person.

(b)              
L360 and its Subsidiaries, as applicable, each own, or have the right to use, free and clear of all Liens, other than Permitted
Liens, all of the Intellectual Property necessary for the conduct of their respective businesses. There are no outstanding options,
licenses or agreements of any kind relating to such Intellectual Property, nor is L360 or any of its Subsidiaries bound by or
a party to any options, licenses or agreements of any kind with respect to any of such Intellectual Property, other than such
licenses or agreements arising from the purchase of “off the shelf” or standard products. Neither L360 nor any of
its Subsidiaries has received any communications alleging that L360 or any of such Subsidiaries has violated or, by conducting
its business as conducted and as currently proposed to be conducted by L360 or any such Subsidiary, violates any Intellectual
Property rights of any other Person.

3.17.       
Environmental Matters. L360 and each of its Subsidiaries is in compliance in all material respects with applicable Environmental
Laws; (ii) L360 and each of its Subsidiaries, as applicable, has all Permits required pursuant to Environmental Laws and are in
compliance in all material respects with the terms thereof; (iii) there are no past or present events, activities, practices,
incidents, actions or plans in connection with the operations of L360 or any of its Subsidiaries which have given rise to or are
reasonably likely to give rise to any material liability on the part of L360 or any such Subsidiary under any Environmental Law;
(iv) neither L360 nor any of its Subsidiaries has generated, used, transported, treated, stored, released or disposed of, or has
suffered or permitted anyone else to generate, use, transport, treat, store, release or dispose of any Hazardous Substance in
violation of any Environmental Laws; and (v) there has not been any generation, use, transportation, treatment, storage, release
or disposal of any Hazardous Substance in connection with the conduct of the business of L360 or any of its Subsidiaries, or the
use of any property or facility by L360 or any of its Subsidiaries, or to the Knowledge of L360, any nearby or adjacent properties,
in each case, which has created or might reasonably be expected to create any material liability under any Environmental Law or
which would require reporting to or notification of any Governmental Body.

3.18.       
Real Property. Except as disclosed on Schedule 3.18, neither L360 nor any of its Subsidiaries own, and have not
owned, any real property or any interest in any real property. Any real property owned by L360 or any of its Subsidiaries is owned
free and clear of any Liens, except for those Liens set forth on Schedule 3.18. L360 or any of its Subsidiaries, as applicable,
is in compliance with Applicable Law pertaining to its ownership and use of any real property owned by L360 or such Subsidiary.

3.19.       
Labor Matters. Neither L360 nor any of its Subsidiaries is now, and has not been in the last five years, bound by or party
to any collective bargaining agreement and, to the Knowledge of L360, no application for certification of a collective bargaining
agent is pending. L360 and each of its Subsidiaries is in compliance with all Applicable Laws applicable to each of them affecting
employment practices and terms and conditions of employment.

3.20.       
Absence of Liabilities. As of December 31, 2013, the date of L360’s most recent consolidated balance sheet, except
as set forth on such consolidated balance sheet or on Schedule 3.20, neither L360 nor any of its Subsidiaries has any debts,
liabilities or obligations of any kind, whether accrued, absolute, contingent or otherwise, and whether due or to become due.

3.21.       
Absence of Certain Changes or Events. Except as set forth on Schedule 3.21 and actions taken in connection with
updating Schedule 2.2(c) and Schedule 2.4(a) prior to Closing, since December 31, 2013, neither L360 nor any of
its Subsidiaries has:

(a)               
Conducted any business or engaged in any activities valued in excess of $100,000, other than activities related to the negotiation
and execution of this Agreement or activities in the ordinary course of its business, consistent with past practice;

(b)              
Declared or made any payment of dividends or other distributions to its shareholders or upon or in respect of any of its stock
interests or purchased, or obligated itself to purchase, retire or redeem, any of its stock interests or other securities;

(c)               
Amended its charter or Bylaws;

(d)              
Borrowed or agreed to borrow any funds; incurred or agreed to incur or become subject to any debts, liabilities or obligations
of any kind whatsoever (other than (i) in conjunction with the negotiation and execution of this Agreement, (ii) legal, accounting,
advisory and board of director fees and expenses, (iii) obligations incurred in the ordinary course of business or (iv) as set
forth on Schedule 3.21;

(e)               
Except for any Permitted Liens, subjected or agreed to subject any of the assets or properties of L360 or any of its Subsidiaries
to any Lien or other encumbrance or suffered such to be imposed;

(f)               
Except on behalf of its Subsidiaries, guaranteed or agreed to guarantee the debts or obligations of others; or

(g)              
Experienced any change, event or condition (whether or not covered by insurance) that has resulted in, any Material Adverse Effect
on L360 or any of its Subsidiaries.

3.22.       
Full Disclosure. This Agreement (including the information contained in the disclosure schedules) does not (i) contain
any representation, warranty or information that is false or misleading with respect to any material fact, or (ii) omit to state
any material fact necessary in order to make the representations, warranties and information contained herein, in the context
in which made or provided, not false or misleading.

3.23.       
Real Property Leases.

(a)               
Schedule 3.23 sets forth a list of all real property leased or subleased to L360 or any of its Subsidiaries. L360 has delivered
or made available to the Company correct and complete copies of the leases and subleases (as amended to date) listed on Schedule
3.23.

(b)              
Each such lease or sublease is legal, valid, binding, enforceable and in full force and effect with respect to L360 or its applicable
Subsidiary and, to the L360’s Knowledge, is legal, valid, binding, enforceable and in full force and effect with respect
to each other party thereto (in each case except as enforceability may be limited by bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium or other similar laws affecting the enforcement of creditor’s rights generally, and except that
the availability of equitable remedies, including specific performance, is subject to the discretion of the court before which
any proceeding therefor may be brought).

(c)               
Neither L360 nor any of its Subsidiaries has received written notice, from any Person, claiming that is in breach or default under
any such lease or sublease, and to L360’s Knowledge, (i) no other party to any lease or sublease is in breach or default
thereunder and (ii) no event has occurred which, with notice or lapse of time would constitute a breach or default, except, in
each case, for breaches, defaults and events that would not have a Material Adverse Effect on L360 or any of its Subsidiaries.

(d)              
Neither L360 nor any of its Subsidiaries has received any written notice of any material dispute with regards to any such lease
or sublease.

(e)               
Except with respect to any Permitted Liens, neither L360 nor any of its Subsidiaries has assigned, transferred, conveyed, mortgaged,
deeded in trust or encumbered any interest in any such leasehold or subleasehold.

3.24.       
Insurance. Schedule 3.24 lists each insurance policy (including fire, theft, casualty, general liability, director
and officer, workers compensation, business interruption, environmental, product liability and automobile insurance policies and
bond and surety arrangements) to which L360 or any of its Subsidiaries is a party, a named insured, or otherwise the beneficiary
of coverage at any time within the past year. Schedule 3.24 of the Company also lists each person or entity required to
be listed as an additional insured under each such policy. Each such policy is in full force and effect and by its terms and with
the payment of the requisite premiums thereon will continue to be in full force and effect following the Closing.

3.25.       
Employee Benefits. The Company has no “employee benefit plans,” within the meaning of Section 3(3) of the Employee
Retirement Income Security Act of 1974, as amended, and the rules and regulations thereunder (“Benefit Plans”).

3.26.       
Board of Directors Action. The Board of Directors of L360 has (i) determined that the Merger is fair and in the best interests
of L360 and its shareholders, (ii) adopted this Agreement in accordance with the provisions of the corporate laws of the State
of Florida, as applicable, and (iii) directed that this Agreement and the Merger be submitted to the shareholders for their adoption
and approval and resolved to recommend that the shareholders vote in favor of the adoption of this Agreement and the approval
of the Merger

3.27.       
Articles of Incorporation, Bylaws, and Minute Books. The copies of the Articles of Incorporation and of the Bylaws of L360
and its Subsidiaries which have been delivered to the Company are true, correct and complete copies thereof. The corporate minutes
of L360 and its Subsidiaries, which have been delivered to the Company, are accurate minutes of all meetings and accurate consents
in lieu of meetings of the Board of Directors (and any committee thereof) and of the shareholders of L360 and its Subsidiaries,
as applicable, since the date of their respective incorporations. L360 and its Subsidiaries have each delivered all books, records,
agreements and other material information of L360 and its Subsidiaries relating to their respective businesses. All documents
furnished or caused to be furnished to the Company by L360 and its Subsidiaries are true and correct copies, and there are no
amendments or modifications thereto except as set forth in such documents.

Article
IV

REPRESENTATIONS AND WARRANTIES

OF THE COMPANY AND MERGER SUB

Except
as set forth on the disclosure schedules, the Company, Kingdom Concrete, Inc. and Merger Sub hereby, jointly and severally, represent
and warrant to L360 as follows:

4.1.           
Organization and Qualification; Subsidiaries. Each of the Company Kingdom Concrete, Inc., a Texas corporation (“Kingdom
Texas”) and Merger Sub is a corporation, duly incorporated or organized, validly existing and in good standing under
the laws of its jurisdiction of incorporation or organization, has requisite power and authority and governmental approvals to
own, lease and operate its properties and to carry on its business as currently conducted. Each of the Company, Kingdom Texas
and Merger Sub is duly qualified or licensed to do business and is in good standing in each jurisdiction in which the ownership
or leasing of its property or the conduct of its business requires such qualification or licensing, except where the failure to
be so qualified or licensed or in good standing would not, individually or in the aggregate, have a Material Adverse Effect on
the Company. The Company does not have any subsidiaries other than Merger Sub and Kingdom Concrete, Inc., a Texas corporation.
Merger Sub does not have any subsidiaries.

4.2.           
Equity Investment. Except for Kingdom Concrete, Inc., a Texas corporation and Merger Sub, the Company does not own any
equity interest in any other corporation or in any partnership, limited liability company or other form of business entity. Merger
Sub does not own any equity interest in any other corporation or in any partnership, limited liability company or other form of
business entity.

4.3.           
Authority to Execute and Perform Agreement. Each of the Company, Kingdom Texas and Merger Sub has the requisite power and
all authority required to enter into, execute and deliver this Agreement and the other Transaction Documents to which it is a
party, to perform its obligations hereunder and thereunder and to consummate the Transactions. The execution, delivery and performance
of this Agreement and the consummation of the Transactions have been duly authorized by all necessary corporate action.

4.4.           
Binding Effect. This Agreement has been validly executed and delivered by each of the Company, Kingdom Texas and Merger
Sub and, assuming the due execution and delivery hereof by L360, constitutes a valid and binding obligation of each of the Company,
Kingdom Texas and Merger Sub, enforceable against each of them in accordance with its terms, except to the extent such enforceability
may be limited by (i) bankruptcy, insolvency, reorganization, moratorium or other similar laws of general applicability affecting
or relating to enforcement of creditors’ rights generally, and (ii) general equitable principles (regardless of whether
such enforceability is considered in equity or at law).

4.5.           
Capitalization.

(a)               
As of the date hereof, the authorized capital stock of the Company consists of (i) Five Hundred Million (500,000,000) shares of
common stock, par value $0.001 per share, of which Five Million Seven Hundred Twenty One Thousand Nine Hundred (5,721,900) shares
of common stock are issued and outstanding, all of which are validly issued, fully paid and non-assessable and (ii) Twenty Million
(20,000,000) shares of preferred stock, par value $0.001 per share, of which none are issued and outstanding. The Company has
no other authorized, issued or outstanding class of capital stock.

(b)              
As of the date hereof, the authorized capital stock of Merger Sub consists of (i) One Hundred (100) shares of common stock, par
value $0.001 per share, all of which are validly issued and outstanding, fully paid and non-assessable, and owned by the Company.
The Merger Sub has no other authorized, issued or outstanding class of capital stock.

(c)               
Obligations. Except as otherwise provided in this Agreement, in connection with the Merger, there are no obligations, contingent
or otherwise, of the Company or Merger Sub to repurchase, redeem or acquire shares of the Company or Merger Sub.

(d)              
Options, Warrants, etc. Except as otherwise provided in this Agreement, in connection with the Merger, there are no existing
options, rights, subscriptions, warrants, unsatisfied preemptive rights, calls or commitments relating to (i) the authorized and
unissued capital stock of the Company, (ii) the authorized and unissued capital stock of Merger Sub or (iii) any securities or
obligations convertible into or exchangeable for, or giving any Person any right to subscribe for or acquire from the Company
or from Merger Sub any shares of capital stock of the Company or Merger Sub and no such convertible or exchangeable securities
or obligations are outstanding.

(e)               
Registration. The outstanding shares of the capital stock of the Company and Merger Sub have been issued in full compliance
with the registration and prospectus delivery requirements of the Securities Act or in compliance with applicable exemptions therefrom,
and the registration and qualification requirements of all applicable securities laws of states of the United States.

(f)               
Merger Shares.

(i)                
The Merger Shares, when paid for and then issued as provided in this Agreement, will be duly authorized and validly issued, fully
paid and non-assessable, and will be free of any Liens or encumbrances and of restrictions on transfer, other than restrictions
on transfer under applicable state and federal securities laws or the Transaction Documents.

(ii)              
The (A) L360 Common Stock exchanged for Merger Shares, in connection with the Merger, inclusive of all L360 Convertible Securities
exchanged for or converted into L360 Common Stock prior to the Closing Date and (B) the Merger Shares underlying the L360 Exchange
Convertible Notes, will consist of One Hundred Fifty Four Million Seven Hundred Thirty Five Thousand Five Hundred Four (154,735,504)
of the Company Common Stock.

4.6.           
Approvals. The Board of Directors of the Company, by resolutions duly adopted at a meeting duly called and held at which
a quorum was present or by the unanimous written consent in lieu of such a meeting, has approved this Agreement, the Merger and
the Transactions in accordance with the requirements of the Nevada Revised Statutes. The Board of Directors of Merger Sub, by
resolutions duly adopted at a meeting duly called and held at which a quorum was present or by the unanimous written consent in
lieu of such a meeting, has approved this Agreement, the Merger and the Transactions in accordance with the requirements of the
FLBCA and such Board shall cause the Company as the sole shareholder of Merger Sub to approve the Merger.

4.7.           
SEC Reports and Financial Statements. Except as set forth on Schedule 4.7:

(a)               
Since March 30, 2009, each form, report, schedule, registration statement, proxy statement, information statement, exhibit and
any other document, to the extent required to be filed in accordance with Applicable Law by the Company with the Securities and
Exchange Commission (the “SEC”) (as such documents have been amended prior to the date hereof, the “SEC
Reports”), as of its respective date, has complied in all material respects with the applicable requirements of the
Securities Act and Exchange Act and was timely filed (except where a valid extension of the filing date was filed and the applicable
SEC Report was filed within the period permitted by such extension). None of the SEC Reports, as of their respective dates, contained
any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make
the statements therein, in the light of the circumstances under which they were made, not misleading, except for such statements,
if any, as have been modified or superseded by subsequent filings prior to the date hereof.

(b)              
The financial statements of the Company included in such SEC Reports and any notes related thereto comply as to form in all material
respects with applicable accounting requirements and with the published rules and regulations of the SEC with respect thereto,
have been prepared in accordance with GAAP applied on a consistent basis throughout the periods involved (except as may be indicated
in the notes thereto or, in the case of the unaudited interim financial statements, as permitted by Form 10-Q of the SEC) and
fairly present in all material respects (subject, in the case of the unaudited interim financial statements, to normal, recurring
year-end adjustments none of which are or will be material in amount, individually or in the aggregate) the financial position
of the Company as at the dates thereof and the results of their operations and cash flows for the periods then ended.

(c)               
The Company does not have any direct or indirect liabilities that were not fully and adequately reflected or reserved against
on the balance sheet or described in the notes to the audited financial statements of the Company. The Company has no Knowledge
of any circumstance, condition, event or arrangement that has taken place at any time that may hereafter give rise to any liabilities.

4.8.           
No Material Adverse Change. The Company has not conducted any business or engaged in any activities other than activities
in the ordinary course, consistent with past practice, and there has been no change in the business, properties, assets, operations
or condition (financial or otherwise) which has resulted or reasonably could be expected to result in or which the Company has
reason to believe could reasonably be expected to result in a Material Adverse Effect on it, and the Company has no Knowledge
of any such change that is threatened, nor has there been any damage, destruction or loss affecting the assets, properties, business,
operations or condition (financial or otherwise), whether or not covered by insurance which has resulted or reasonably could be
expected to result in or which the Company has reason to believe could reasonably be expected to result in a Material Adverse
Effect on the Company. Since December 31, 2013, the Company has not taken, directly or indirectly, any of the actions identified
in Section 5.1, except as (i) set forth in the Recent Reports, (ii) provided in this Agreement, with respect to the Merger
and related Transactions or (iii) otherwise set forth on Schedule 4.8.

4.9.           
Books and Records. The books and records, financial and otherwise, of the Company are in all material respects complete
and correct and have been maintained in accordance with sound business and bookkeeping practices so as to accurately and fairly
reflect, in reasonable detail, the transactions and dispositions of the assets and liabilities of the Company

4.10.       
Litigation. There are no Legal Proceedings pending or, to the Knowledge of the Company, threatened against or involving
the Company, Kingdom Texas or Merger Sub, or any of their respective property or assets. There are no outstanding orders, judgments,
injunctions, awards or decrees of any court, governmental or regulatory body or arbitration tribunal against or involving the
Company, Kingdom Texas or Merger Sub.

4.11.       
Absence of Liabilities. As of December 31, 2013, the date of the Company’s most recent balance sheet, the Company
has no debts, liabilities or obligations of any kind, whether accrued, absolute, contingent or otherwise, and whether due or to
become due, that are not otherwise set forth in such balance sheet or on Schedule 4.11, which shall be updated as of the
Closing Date.

4.12.       
Title to Properties; Absence of Liens. The Company, Kingdom Texas and Merger Sub have good and marketable title to all
of their respective assets and properties, whether real, personal or fixed, free and clear of all Liens, except for Liens for
Taxes not yet due and payable or which the Company is contesting in good faith and for which adequate reserves have been established.

4.13.       
Compliance with Laws. Neither the Company, Kingdom Texas nor Merger Sub is in violation of, default under, or conflict
with, any applicable Order or any Applicable Law, except for any such violations that would not, individually or in the aggregate,
have a Material Adverse Effect on the Company, Kingdom Texas or Merger Sub.

4.14.       
Intellectual Property. Neither the Company, Kingdom Texas nor Merger Sub owns, licenses or otherwise has any rights in
or to any Intellectual Property.

4.15.       
Non-Contravention. The execution and delivery of this Agreement and the other Transaction Documents by the Company, Kingdom
Texas and Merger Sub, as applicable, the performance by the Company, Kingdom Texas and Merger Sub of their respective obligations
hereunder and thereunder, and the consummation of the Transactions contemplated hereby and thereby by each of them (A) do not
and will not conflict with, or result in a breach or violation of (i) any provision of the charter or bylaws of the Company, Kingdom
Texas or Merger Sub, (ii) any Applicable Law, (iii) any material agreement, contract, lease, license or instrument to which the
Company or Merger Sub is a party or by which the Company, Kingdom Texas or Merger Sub or any of their respective properties or
assets are bound and (B) will not result in the creation or imposition of any Lien upon any of the property or assets of the Company,
Kingdom Texas or Merger Sub pursuant to any provision of any contract or Lien.

4.16.       
Consents and Approvals. Except for (i) those consents, approvals, authorizations, filings or notices set forth on Schedule
4.16, (ii) applicable requirements of the Securities Act, the Exchange Act or Blue Sky Laws, (iii) notices and filings in
connection with the Merger, no consent, approval or authorization of, filing with, or notice to, any Governmental Body is required
by the Company in connection with the execution, delivery and performance by the Company, Kingdom Texas or Merger Sub of this
Agreement, each and every agreement contemplated hereby, and the consummation by the Company, Kingdom Texas and Merger Sub of
the Transactions.

4.17.       
Material Contracts. Schedule 4.17 sets forth all Material Contracts to which the Company is a party. The Company
has delivered to or made available to L360 a correct and complete copy of each Material Contract. With respect to each such Material
Contract, (a) such Material Contract is legal, valid, binding and enforceable and in full force and effect with respect to the
Company, and, to the Company’s Knowledge, such Material Contract is legal, valid, binding and is enforceable and in full
force and effect with respect to each other party thereto (in each case except as enforceability may be limited by bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium or other similar laws affecting the enforcement of creditor’s
rights generally, and except that the availability of equitable remedies, including specific performance, is subject to the discretion
of the court before which any proceeding therefor may be brought) and (b) (i) the Company has not received written notice, from
any Person, claiming that the Company is in breach or default under any Material Contract, (ii) to the Company’s Knowledge,
no other party to any such Material Contract is in breach or default of any Material Contract and (iii) to the Company’s
Knowledge, no event has occurred which with notice or lapse of time would constitute a breach or default under any Material Contract;
except, in each case, for breaches, defaults and events that would not have a Material Adverse Effect on the Company. The Company
is not a party to any oral contract, agreement or other arrangement which, if reduced to written form, would be required to be
listed on Schedule 4.17 under the terms of this Section 4.17.

4.18.       
Taxes. Except as set forth on Schedule 4.18:

(a)               
Filing of Tax Returns. The Company has timely filed, or has had timely filed on its behalf, with the appropriate Taxing
authorities all Tax Returns in respect of Taxes required to be filed by the Company. The Tax Returns filed (including any amendments
thereto) are complete and accurate in all material respects. The Company has not requested any extension of time within which
to file any Tax Return in respect of any Taxes, which Tax Return has not since been filed in a timely manner. To the Knowledge
of the Company, no Claim has ever been made by any Taxing authority in a jurisdiction where the Company does not file Tax Returns,
or has Tax Returns filed on its behalf, that the Company is or may be subject to taxation by that jurisdiction, or liable for
Taxes owing to that jurisdiction.

(b)              
Payment of Taxes. All Taxes owed by the Company (whether or not shown as due on any Tax Returns) have been paid in full
or adequate reserves on its books and/or records have been established. The Company has withheld and paid all Taxes required to
have been withheld and paid in connection with amounts paid or owing to any employee, independent contractor, creditor, stockholder,
or other third party. The Company has made all required estimated Tax payments sufficient to avoid any underpayment penalties.
The unpaid Taxes of the Company (A) do not, as of the Closing Date, exceed the reserve for Tax liability (rather than any reserve
for deferred Taxes established to reflect the timing differences between book and Tax income) set forth on the face of the Company’s
most recent balance sheets (rather than any notes thereto) and (B) do not exceed that reserve as adjusted for the passage of time
through the Closing Date in accordance with the past custom and practice of the Company in filing, or having filed on their behalf,
their Tax Returns. The charges, accruals and reserves on the books of the Company in respect of any liability for Taxes (x) based
on or measured by net income for any years not finally determined, (y) with respect to which the applicable statute of limitations
has not expired or (z) that has been previously deferred, are adequate to satisfy any assessment for such Taxes for any such years.

(c)               
Audits, Investigations or Claims. There is no dispute or Claim which has not been resolved concerning any Tax liability
of the Company either (A) claimed or raised by any Taxing authority in writing or (B) as to which any of the directors and officers
(and employees responsible for Tax matters) of the Company has Knowledge. There is no currently pending audit of any Tax Return
of the Company by any Taxing authority, and the Company has not ever been notified in writing that any Taxing authority intends
to audit any Tax Return of the Company. The Company has not executed any outstanding waivers or consents regarding the application
of the statute of limitations with respect to any Taxes or Tax Returns.

(d)              
Lien. There are no encumbrances for Taxes (other than for current Taxes not yet due and payable) on any assets of the Company.

(e)               
Tax Elections. The Company (i) has not agreed, and is not required, to make any adjustment under Section 481(a) of the
Code by reason of a change in accounting method or otherwise; (ii) has not made an election pursuant to Code Sections 338 or 336(e)
or the regulations thereunder or any comparable provisions of any foreign or state or local income tax law; (iii) is not subject
to any constructive elections under Code Section 338 or the regulations thereunder; (iv) has not made any payments, is not obligated
to make any payments, and is not a party to any agreement that under certain circumstances could obligate it to make any payments
that will not be deductible under §280G and §162(m) of the Code; and (v) has not made any of the foregoing elections
and is not required to apply any of the foregoing rules under any comparable state or local income Tax provision.

(f)               
Prior Affiliated Groups. The Company (A) has never been a member of an affiliated group of corporations within the meaning
of Section 1504 of the Code and (B) does not have any liability for the Taxes of any person under Treas. Reg. §1502-6 (or
any similar provision of state, local or foreign law), as a transferee or successor, by contract or otherwise. Except as otherwise
disclosed in the SEC Reports, the Company is not a successor to any other person by way of merger, reorganization or similar transaction.

(g)              
Tax Sharing Agreements. The Company is not a party to any Tax allocation, indemnity or sharing or similar agreement.

(h)              
Section 355. The Company has not distributed the stock of a “controlled corporation” (within the meaning of
that term as used in Section 355(a) of the Code) in a transaction subject to Section 355 of the Code within the past two years.

(i)                
Partnerships. The Company does not own an interest in a partnership for Tax purposes.

4.19.       
Environmental Matters. (i) The Company is in compliance in all material respects with applicable Environmental Laws; (ii)
the Company has all Permits required pursuant to Environmental Laws and are in compliance in all material respects with the terms
thereof; (iii) there are no past or present events, activities, practices, incidents, actions or plans in connection with the
operations of the Company which have given rise to or are reasonably likely to give rise to any liability on the part of the Company
under any Environmental Law; (iv) the Company has not generated, used, transported, treated, stored, released or disposed of,
or has suffered or permitted anyone else to generate, use, transport, treat, store, release or dispose of any Hazardous Substance
in violation of any Environmental Laws; and (v) there has not been any generation, use, transportation, treatment, storage, release
or disposal of any Hazardous Substance in connection with the conduct of the business of the Company or the use of any property
or facility by the Company, or to the Knowledge of the Company, any nearby or adjacent properties, in each case, which has created
or might reasonably be expected to create any material liability under any Environmental Law or which would require reporting
to or notification of any Governmental Body.

4.20.       
Real Property. The Company does not own any real property or any interest in any real property.

4.21.       
Broker’s Fees. No broker, finder, agent or similar intermediary has acted on behalf of the Company or Merger Sub
in connection with this Agreement or the Transactions, and there are no brokerage commissions, finders’ fees or similar
fees or commissions payable in connection therewith based on any agreement, arrangement or understanding with the Company or Merger
Sub.

4.22.       
Labor Matters. The Company is not now, and has not previously been bound by or party to any collective bargaining agreement
and, to the Knowledge of the Company, no application for certification of a collective bargaining agent is pending. The Company
is in compliance with all Applicable Laws applicable to the Company affecting employment practices and terms and conditions of
employment.

4.23.       
Articles of Incorporation, Bylaws, and Minute Books. The copies of the Articles of Incorporation and of the Bylaws of the
Company and Merger Sub which have been delivered to L360 are true, correct and complete copies thereof. The corporate minutes
of the Company and Merger Sub, which have been delivered to L360, are complete and accurate minutes of all meetings and accurate
consents in lieu of meetings of the Board of Directors (and any committee thereof) and of the stockholders of the Company and
Merger Sub, as applicable, since the date of their respective incorporations and accurately reflect all transactions referred
to in such minutes and consents in lieu of meetings. The Company and Merger Sub have each delivered L360 all books, records, agreements
and other material information of the Company and Merger Sub relating to their respective businesses. All documents furnished
or caused to be furnished to L360 by the Company and Merger Sub are true and correct copies, and there are no amendments or modifications
thereto except as set forth in such documents.

4.24.       
Full Disclosure. This Agreement (including the information contained in the disclosure schedules) and the SEC Reports,
do not (i) with respect to the Company, contain any representation, warranty or information that is false or misleading with respect
to any material fact, or (ii) with respect to the Company, omit to state any material fact necessary in order to make the representations,
warranties and information contained herein (including the information contained in the disclosure schedules) and the SEC Reports,
in the context in which made or provided, not false or misleading.

Article
V

ADDITIONAL AGREEMENTS OF THE PARTIES

5.1.           
Actions Pending Closing. From the date hereof until the Effective Time, unless otherwise agreed to in writing, each of
the parties to this Agreement agree to conduct its business and operations only in the ordinary course and in substantially the
same manner as heretofore conducted and the Company shall continue to make timely filings (except pursuant to valid extensions
agreed to by L360) as required by the SEC pursuant to the Securities Act and the Exchange Act and shall not take any action that
will adversely affect the ability of the Company to qualify for quotation of its common stock on the OTCQB tier of the OTC Market.
Without limiting the generality of the foregoing, prior to the Effective Time, none of the parties to this Agreement shall, except
as contemplated by this Agreement, including in connection with L360’s delivery of updated Schedule 2.2(c) and updated
Schedule 2.4(a) prior to Closing, without the prior written consent of the other parties to this Agreement, directly or
indirectly, do any of the following (all of which shall also apply to the parties’ Subsidiaries):

(a)               
except to the extent required by Applicable Law, or as contemplated by this Agreement, amend or otherwise change the articles
of incorporation, Bylaws, operating agreement or other similar organizational document;

(b)              
issue or authorize or propose the issuance of, sell, pledge or dispose of, grant or otherwise create, or agree to issue or authorize
or propose the issuance, sale, pledge, disposition, grant or creation of any additional shares of, or any options, warrants, convertible
securities or other rights of any kind to acquire any shares of, its capital stock or any debt or equity securities convertible
into or exchangeable for such capital stock, except that this provision shall not be applicable to L360, provided that
any change in L360’s outstanding securities shall require an applicable adjustment to the Conversion Rate and none of such
actions shall cause L360’s representations and warranties not to be true and accurate as of the date made if made as of
a specific date or as of the Closing Date;

(c)               
purchase, redeem or otherwise acquire or retire, or offer to purchase, redeem or otherwise acquire or retire, any shares of its
capital stock (including any security convertible or exchangeable into its capital stock), except for the cancelation of Six Hundred
Thousand shares in connection with the spin-off of Kingdom Texas as set forth in Section 5.19 hereof and that this provision shall
not be applicable to L360, provided that any change in L360’s outstanding securities shall require an applicable
adjustment to the Conversion Rate and none of such actions shall cause L360’s representations and warranties not to be true
and accurate as of the date made if made as of a specific date or as of the Closing Date;

(d)              
enter into any Material Contract, except in the ordinary course of business;

(e)               
declare, set aside, make or pay any dividend or other distribution, payable in cash, stock, property or otherwise, with respect
to any of its capital stock, reclassify, recapitalize, split, combine or exchange any of its shares of capital stock;

(f)               
incur or become contingently liable with respect to any indebtedness for borrowed money or guarantee any such indebtedness or
issue any debt securities, except that this provision shall not be applicable to L360, provided that any change in L360’s
outstanding securities shall require an applicable adjustment to the Conversion Rate and none of such actions shall cause L360’s
representations and warranties not to be true and accurate as of the date made if made as of a specific date or as of the Closing
Date;

(g)              
(i) increase the compensation payable or to become payable to, or enter into any employment agreement with, any of its directors,
executive officers or employees, (ii) grant any severance or termination pay to any director, officer or employee, (iii) enter
into any severance agreement with any director, officer or employee, (iv) establish, adopt, enter into, terminate, withdraw from
or amend in any material respect or take action to accelerate any rights or benefits under any collective bargaining agreement,
any stock option plan or any employee Benefit Plan or policy, or (v) hire any employee or consultant;

(h)              
take any action, other than reasonable actions in the ordinary course of business and consistent with past practice, with respect
to accounting policies or procedures, except as may be required by GAAP;

(i)                
acquire or agree to acquire by merging or consolidating with, or by purchasing a substantial equity interest in or a substantial
portion of the assets of, or by any other means, any business or any corporation, partnership, association or other business entity;

(j)                
mortgage or otherwise encumber, subject to any Lien, or sell, transfer or otherwise dispose of, any of its properties or assets
that are material, individually or in the aggregate;

(k)              
adopt a plan of complete or partial liquidation, dissolution, restructuring, recapitalization or other reorganization;

(l)                
pay, discharge or satisfy any Claims, liabilities or obligations (absolute, accrued, asserted or unasserted, contingent or otherwise),
other than the payment, discharge or satisfaction in the ordinary course of business and consistent with past practice of liabilities
reflected or reserved against in its financial statements or incurred in the ordinary course of business and consistent with past
practice;

(m)            
take, or agree in writing or otherwise to take, any of the actions described in Sections 5.1(a) through (l) above, or any
action which would make any of the representations or warranties contained in this Agreement untrue or incorrect in any material
respect or prevent the parties to this Agreement from performing or cause the parties to this Agreement not to perform their respective
covenants under this Agreement in any material respect;

(n)              
waive, release, assign, settle or compromise any material rights, Claims or litigation (including any confidentiality agreement);

(o)              
authorize any of, or commit or agree to take any of, the foregoing actions; or

(p)              
make or change any Tax election, settle any audit, Claim or examination of Taxes, adopt or apply to change any method of accounting
or accounting practice for Tax purposes, file any amended Tax Return, enter into any closing agreement or request a Tax ruling
from a Tax authority, settle any Claims for Taxes, surrender any right to Claim a refund of Taxes, consent to any extension or
waiver of the limitation period applicable to any Taxes, Tax Return or Claim for Taxes, or take any action or fail to take any
action that would have a material adverse effect on the Tax liability of any of the parties to this Agreement.

5.2.           
L360 Shareholders’ Approval. As soon as practicable after the date hereof, L360 will take all steps necessary to
solicit the approval of the requisite number of the L360 Shareholders approving the Merger and this Agreement in accordance with
the provisions of the FLBCA and its bylaws (the “L360 Consent”). Except as otherwise contemplated by this Agreement
and subject to the exercise of the fiduciary duties of L360’s Board of Directors, the Board of Directors of L360 (i) shall
recommend to the L360 Shareholders that they approve the Merger, and (ii) shall use its reasonable best efforts to obtain the
L360 Consent.

5.3.           
Efforts; Consents. Each of the parties to this Agreement agrees to, and to cause its respective Subsidiaries to, use reasonable
best efforts to take or cause to be taken all actions necessary, proper or advisable to consummate the Merger and the Transactions.
Without limiting the generality of the foregoing, each of the parties hereto shall use, and shall cause its respective Subsidiaries
to use, reasonable best efforts to obtain all authorizations, consents, orders and approvals of Federal, state, and local regulatory
bodies, that are or may become necessary for the performance of its respective obligations pursuant to this Agreement, the other
Transactions Documents and the consummation of the Transactions, and shall cooperate fully in promptly seeking to obtain such
authorizations, consents, orders and approvals as may be necessary for the performance of its respective obligations pursuant
to this Agreement, the other Transaction Documents and the Transactions. The parties shall not take, and shall cause their respective
Subsidiaries not to take, any action which would have the effect of delaying, impairing or impeding the receipt of any required
regulatory approvals, and the parties shall use, and shall cause their respective Subsidiaries to use, reasonable best efforts
to secure such approvals as promptly as possible. The parties shall use, and shall cause their respective Subsidiaries to use,
reasonable best efforts not to take any action or enter into any transaction which would result in a breach of any covenant made
by such party in this Agreement.

5.4.           
Filing of Tax Returns; Payment of Taxes. Each of the parties to this Agreement will prepare in a manner consistent with
its past practice and timely file all Tax Returns it is required to file, the due date of which (without extensions) occurs on
or before the Closing Date and shall pay all Taxes due with respect to any such Tax Returns.

5.5.           
Access to Information.

(a)               
The Company, through its duly appointed representatives, shall afford L360 and shall cause its independent accountants to afford
to L360, and its accountants, counsel and other representatives, reasonable access during normal business hours during the period
prior to the Closing to all information concerning the Company and/or Kingdom Texas as L360 may reasonably request, provided
that the Company shall not be required to disclose any information which it is legally required to keep confidential. L360
will not use such information for purposes other than this Agreement and will otherwise hold such information in confidence (and
L360 will cause its consultants and advisors also to hold such information in confidence) in accordance with Section 5.7 (Confidentiality).

(b)              
L360, through its duly appointed representatives, shall afford the Company and shall cause its independent accountants to afford
to the Company and its accountants, counsel and other representatives, reasonable access during normal business hours during the
period prior to the Closing to all of L360’s and each of its Subsidiaries’ properties, books, contracts, commitments
and records and to the audit work papers and other records of L360’s independent accountants. During such period, L360 shall
use reasonable efforts to furnish promptly to the Company such information concerning L360 and its Subsidiaries as the Company
may reasonably request, provided that L360 shall not be required to disclose any information which it is legally required
to keep confidential. The Company will not use such information for purposes other than this Agreement and will otherwise hold
such information in confidence (and the Company will cause its consultants and advisors also to hold such information in confidence)
in accordance with Section 5.7 (Confidentiality).

5.6.           
Confidentiality. Unless (i) otherwise expressly provided in this Agreement, (ii) required by Applicable Law, (iii) necessary
to secure any required consents as to which the other party has been advised, or (iv) consented to in writing by L360 and the
Company, this Agreement and any information or documents furnished in connection herewith shall be kept strictly confidential
by the Company, L360 and its Subsidiaries, and their respective officers, directors, employees, agents, Affiliates, accountants,
counsel, investment bankers, financial advisors or other representatives (collectively, “Representatives”).
Prior to any disclosure pursuant to the preceding sentence, the party intending to make such disclosure shall consult with the
other party to the extent practicable regarding the nature and extent of the disclosure. Subject to the preceding sentence, nothing
contained herein shall preclude disclosures to the extent necessary to comply with accounting, SEC and other disclosure obligations
imposed by Applicable Law. In the event the Merger is not consummated, L360 and the Company shall return to the other or destroy
all documents furnished by the other and all copies thereof made by such party and will hold in absolute confidence all information
obtained from the other party except to the extent (i) such party is required to disclose such information by Applicable Law or
such disclosure is necessary in connection with the pursuit or defense of a Claim, (ii) such information was known by such party
prior to such disclosure or was thereafter developed or obtained by such party independent of such disclosure, (iii) such party
received such information on a non-confidential basis from a source, other than the other party, which is not known by such party
to be bound by a confidentiality obligation with respect thereto or (iv) such information becomes generally available to the public
or is otherwise no longer confidential. Prior to any disclosure of information pursuant to the exception in clause (i) of the
preceding sentence, the party intending to disclose the same shall, so long as not prohibited by Applicable Law or Claim, notify
the party which provided the same to the extent practicable in order that such party may seek a protective order or other appropriate
remedy should it choose to do so.

5.7.           
Notification of Certain Matters. The Company or L360, as applicable, shall give prompt notice to other, as between them,
if any of the following occurs after the date of this Agreement: (i) receipt of any notice or other communication in writing from
any person alleging that the consent of such person is or may be required in connection with the transactions contemplated by
this Agreement; (ii) receipt of any notice or other communication from any Governmental Authority (including, but not limited
to, FINRA, the SEC or any securities exchange) in connection with the transactions contemplated by this Agreement; (iii) the occurrence
or non-occurrence of any fact or event which could reasonably be expected to cause any covenant, condition or agreement hereunder
not to be complied with or satisfied in any material respect; (iv) the commencement or threat of any Material Legal Proceedings
involving or affecting the Company, on one hand, or L360 or any of its Subsidiaries, on the other hand, or any of their respective
properties or assets; (v) the occurrence or non-occurrence of any fact or event that causes or is reasonably likely to cause a
breach by the Company, on one hand, or L360, on the other hand, of any provision of this Agreement, and (vi) the occurrence of
any event that, had it occurred prior to the date of this Agreement without any additional disclosure hereunder, would have constituted
a Material Adverse Effect on the Company, on one hand, or on L360 or any of its Subsidiaries, on the other hand.

5.8.           
Non-Solicitation.

(a)               
No party to this Agreement, nor any of their respective Representatives shall (i) directly or indirectly, initiate, solicit or
encourage, or take any action to facilitate the making of, any Acquisition Proposal (defined below), (ii) enter into any agreement
or take any other action that by its terms could reasonably be expected to adversely affect the consummation of the Merger and
related transactions, or (iii) directly or indirectly engage or otherwise participate in any discussions or negotiations with,
or provide any information or data to, or afford any access to their properties, books or records to, or otherwise assist, facilitate
or encourage, any person (other than L360, the Company, or any Affiliate or associate thereof) relating to any Acquisition Proposal.

(b)              
Each of the parties to this Agreement and each of their Representatives shall immediately cease and cause to be terminated all
existing discussions and negotiations, if any, with any other persons conducted heretofore with respect to any Acquisition Proposal.

(c)               
The Company and L360 shall immediately provide to the other written notice of any Acquisition Proposal received by it or any of
its Representatives, which notice shall include information about the third party making the Acquisition Proposal and any other
details about the Acquisition Proposal.

(d)              
For purposes of this Agreement, an “Acquisition Proposal” means any inquiry, proposal or offer from any person
relating to (i) any direct or indirect acquisition or purchase of a business that constitutes 50% or more of the net revenues,
net income or assets of any party to this Agreement, taken as a whole, or 50% or more of the common stock or voting power (or
of securities or rights convertible into or exercisable for such common stock or voting power) of the Company or L360, (ii) any
tender offer or exchange offer that if consummated would result in any person beneficially owning 50% or more of the common stock
or voting power (or of securities or rights convertible into or exercisable for such common stock or voting power) of the Company
or L360, (iii) any merger, consolidation, business combination, recapitalization, liquidation, dissolution or similar transaction
involving the Company, L360 or any of their Subsidiaries that constitutes 50% or more of the net revenues, net income or assets
of the Company and its Subsidiaries or L360 and its Subsidiaries, as the case may be, taken as a whole, or that results in the
stockholders of the Company or the L360 Shareholders, as the case may be, immediately prior to such transaction owning less than
50% of the outstanding voting securities of the Company or L360, as the case may be, immediately after such transaction, in each
case other than the transactions contemplated by this Agreement, or (iv) any transaction that could reasonably result in discouraging
or frustrating the transactions contemplated herein or that are incidental hereto. Each of the transactions referred to in clauses
(i) - (iv) of the foregoing definition of Acquisition Proposal, other than the Merger proposed by this Agreement, is referred
to herein as an “Acquisition Transaction.” 

5.9.           
Further Assurances. At any time and from time to time after the Closing, each party to this Agreement agrees to cooperate
with each other party and to execute and deliver such other documents, instruments of transfer or assignment, files, books and
records and do all such further acts as may be reasonably required to consummate the Transactions, including to provide any necessary
information in connection with the Company’s filing its Information Statement with the SEC.

5.10.       
Public Disclosure. Prior to the Closing, each party to this Agreement shall consult with each other party before issuing
any press release or otherwise making any public statements, announcements or communications with respect to this Agreement or
any of the Transactions and shall not issue any such press release or make any such public statement, announcement or communication
without the prior written consent of the other parties, which consent shall not be unreasonably withheld, except as may be required
by Applicable Law.

5.11.       
Board of Directors. Prior to the Effective Time, the Board of Directors of the Company, in accordance with Applicable Law,
shall take all necessary action (including the resignation of existing directors) to cause its Board of Directors, as of the date
that is the later of: (i) ten days after the filing of a Schedule 14F-1 Information Statement, if applicable, or (ii) the Effective
Time (such date, the “Appointment Date”), to consist of a total of nine (9) directors, with all such directors
to be designated in writing by L360, each to hold office from the Appointment Date until their respective successors are duly
elected or appointed and qualify, or they resign or are removed.

5.12.       
Compliance with Securities Laws Relating to the Issuance of the Merger Shares. Prior to the Closing, L360 shall request
the L360 Shareholders to execute an investment representation letter, in the form of Exhibit A (each an “Investment
Letter”), providing their respective status as “accredited investors,” as such term is defined in Regulation
D promulgated under the Securities Act. The Company, Merger Sub and the Surviving Corporation shall take such steps as may be
necessary to comply with all federal securities laws and Blue Sky Laws of all jurisdictions which are applicable to the issuance
of the Merger Shares in connection with the Merger. L360 shall use its best efforts, to the extent commercially reasonable, to
assist the Company as may be necessary to comply with such federal securities laws and Blue Sky Laws.

5.14.       
Reorganization. Except for the transactions contemplated by this Agreement, the parties shall not take any action, or cause
the Surviving Corporation to take any action, which would have the result of disqualifying the Merger as a reorganization pursuant
to Section 368(a)(2)(E) of the Code. In addition, no party shall adopt any position (or cause the Surviving Corporation to adopt
any position) which is inconsistent with the treatment of the Merger as a tax-free reorganization.

5.15.       
Reasonable Commercial Efforts and Further Assurances. Each party, at the reasonable request of another party, and as soon
as practicable, shall execute and deliver at the requesting party’s expense such other instruments and do and perform such
other acts and things as may be necessary or desirable for effecting completely the consummation of this Agreement and the transactions
contemplated hereby.

5.16.       
Indemnification. All rights to indemnification and advancement of expenses existing in favor of those Persons who are or
were directors, officers, agents or employees of the Company (the “Indemnified Persons”) for acts and omissions
occurring prior to the Effective Time, as provided in the Company’s Certificate of Incorporation or Bylaws (in each case
as in effect as of the date of this Agreement), excluding any actions or omissions of any Indemnified Person constituting willful
misconduct or gross negligence, shall survive the Merger and shall be fully complied with by the Company and the Surviving Corporation,
to the fullest extent permitted by the laws of the State of Nevada.

5.17.       
Payment of Certain Expenses by L360. Subject to and upon the Closing of the transactions contemplated in this Agreement,
L360 shall pay to Davisson, for services provided in connection with the Merger and all of the other transactions contemplated
herein, an aggregate amount not to exceed $50,000, payable, in cash, at Closing.

5.18.       
Survival of Representations and Warranties. All representations, warranties and agreements made by the parties to this
Agreement or in any certificate, schedule, document or instrument furnished hereunder or in connection with the execution and
performance of this Agreement shall survive the Closing for a period of twelve (12) months.

5.19.       
Spin-Off of Kingdom Concrete, Inc., Subsidiary. Simultaneously with the Closing, the Company’s operating subsidiary,
Kingdom Texas shall be “spun-out” and otherwise divested from the Company. This divestiture shall be effected by the
transfer of 100% of the capital stock of Kingdom Texas (the “Kingdom Texas Stock”) being transferred to Edward
Stevens in exchange for the transfer to the Company and cancelation of 600,000 shares of the Company’s Common Stock held
by Edward Stevens in exchange for the Kingdom Texas Stock, whereupon the Company will retain no more ownership of Kingdom Texas
and all of the assets and liabilities of Kingdom Texas shall remain with Kingdom Texas.

Article
VI

CONDITIONS TO CLOSING

6.1.           
Conditions to Each Party’s Obligations to Consummate the Transactions. The respective obligations of each party to
this Agreement to consummate the Merger and the Transactions relating thereto, shall be subject to the following conditions, unless
waived in writing prior to the Closing Date by L360, in the case of the Company, Kingdom Texas or Merger Sub, or by the Company,
in the case of L360:

(a)               
Consents and Approvals. All consents, approvals, authorizations, orders and action of any Governmental Body required to
permit the consummation of the Transactions shall have been obtained or made and shall be in full force and effect.

(b)              
No Restraints. No action shall have been taken, and no statute, rule, regulation, executive order, judgment, decree, or
injunction shall have been enacted, entered, promulgated or enforced (and not repealed, superseded, lifted or otherwise made inapplicable),
by any court or governmental or regulatory agency of competent jurisdiction which restrains, enjoins or otherwise prohibits the
consummation of the Transactions (each party agreeing to use its reasonable best efforts to avoid the effect of any such statute,
rule, regulation or order or to have any such order, judgment, decree or injunction lifted).

(c)               
L360 Shareholders. On or before the day immediately prior to the Closing Date, L360 shall have delivered to the Company
and the Exchange Agent the updated Schedule 2.2(c) reflecting the L360 Shareholders of record and their corresponding ownership
as of the Closing Date.

(d)              
L360 Non-Converting Securities. On or before the day immediately prior to the Closing Date, L360 shall have delivered to
the Company the updated Schedule 2.4(a) to list the L360 Non-Converting Securities as of the Closing Date.

(e)               
Investment Letter. Each L360 Shareholder shall have delivered to L360 a completed Investment Letter.

(f)               
Exemption from Registration of Merger Shares. The Company and L360 shall be satisfied that the issuances of the Merger
Shares shall be exempt from registration under the Securities Act pursuant to the provisions of Regulation D promulgated under
the Securities Act and Section 4(2) of the Securities Act.

(g)              
No Bankruptcy. No proceeding in which the Company, Merger Sub or LC or any of its Subsidiaries shall be a debtor, defendant
or party seeking an order for its own relief or reorganization shall have been brought or be pending by or against any of the
foregoing under any United States or state bankruptcy or insolvency law.

6.2.           
Conditions to Obligations of the Company, Kingdom Texas and Merger Sub to Consummate the Transactions.

The
obligations of the Company, Kingdom Texas and Merger Sub to consummate the Merger and the Transactions relating thereto, shall
be subject to the satisfaction of the following conditions, unless waived in writing prior to the Closing Date by the Company:

(a)               
Representations and Warranties. The representations and warranties of L360 contained herein shall be true and correct,
in each case at and as of the Effective Time, with the same force and effect as though made at and as of the Effective Time (except
to the extent a representation or warranty speaks specifically as of an earlier date, in which case as of such date).

(b)              
Performance of Obligations. L360 shall have performed, in all material respects, all obligations and complied with all
covenants required by this Agreement to be performed or complied with, in all material respects, at or prior to the Effective
Time.

(c)               
Officer’s Certificate. L360 shall have executed and delivered to the Company and Merger Sub a certificate, dated
the Closing Date, and signed by an officer of L360, evidencing compliance with Section 6.2(a) and Section 6.2(b) hereof.

(d)              
Secretary’s Certificate. The Company and Merger Sub shall have received from the Secretary of L360 a certificate
(i) certifying the current L360’s Articles of Incorporation, (ii) certifying the current Bylaws of L360, (iii) certifying
the resolutions of the Board of Directors of L360, (vi) certifying the resolutions of the L360 Shareholders, and (v) attesting
to the incumbency of the officers of L360.

(e)               
Due Diligence. The Company shall have completed its financial, business and legal due diligence investigation of L360 to
the Company’s and its counsel’s satisfaction which shall be determined at the sole and absolute discretion of the
Company and its counsel.

(f)               
Stock Certificates and Accompanying Stock Transfer Documents. Certificates evidencing all of the L360 Common Stock to be
exchanged, at Closing, for the right to receive Merger Shares, pursuant to the terms of the Merger, shall have been delivered
by the Exchange Agent to Davisson, counsel to the Company in accordance with Section 2.2(a).

(g)              
Approval. L360 shall have obtained the requisite approval of the L360 Shareholders as required for the consummation of
the Merger and this Agreement in accordance with the FLBCA.

(h)              
Material Adverse Effect. There shall not have occurred after the date hereof any event or events that, individually or
in the aggregate, constitute a Material Adverse Effect on L360 or any of its Subsidiaries.

6.3.           
Conditions to Obligations of L360 to Consummate the Transactions. The obligation of L360 to consummate the Merger and the
Transactions relating thereto, shall be subject to the satisfaction of the following conditions, unless waived in writing prior
to the Closing Date by TG:

(a)               
Representations and Warranties. The representations and warranties of the Company and Merger Sub contained herein shall
be true and correct, in each case at and as of the Effective Time, with the same force and effect as though made at and as of
the Effective Time (except to the extent a representation or warranty speaks specifically as of an earlier date, in which case
as of such date).

(b)              
Performance of Obligations. The Company and Merger Sub each shall have performed, in all material respects, all obligations
and complied with all covenants required by this Agreement to be performed or complied with, in all material respects, by it at
or prior to the Effective Time.

(c)               
Officer’s Certificate. Each of the Company and the Merger Sub shall have executed and delivered to L360 a certificate,
dated the date of Closing and signed by an officer of the Company and the Merger Sub, respectively, evidencing compliance with
Sections 6.3(a) and 6.3(b) hereof

(d)              
Secretary’s Certificate. L360 shall have received from the Secretary of the Company and Merger Sub a certificate
(i) certifying their current Articles of Incorporation, respectively, (ii) certifying their current Bylaws of the Company and
Merger Sub, respectively, (iii) certifying their resolutions of the Board of Directors of the Company and Merger Sub, respectively,
(vi) certifying the resolutions of the sole shareholder of Merger Sub, and (v) attesting to the incumbency of the officers of
the Company and Merger Sub, respectively.

(e)               
Due Diligence. L360 shall have completed its financial, business and legal due diligence investigation of the Company,
Kingdom Texas and Merger Sub to L360’s and its counsel’s satisfaction which shall be determined at the sole and absolute
discretion of L360 and its counsel.

(f)               
Certificates for Merger Shares. The Company shall have made sufficient arrangement with its transfer agent for the delivery
of certificates to the L360 Shareholders, with respect to the Merger Shares, as provided in Section 2.2(b).

(g)              
Approval. Merger Sub shall have obtained the requisite approval of the Merger Sub Shareholders as required for the consummation
of the Merger and this Agreement in accordance with the FLBCA.

(h)              
Material Adverse Effect. There shall not have occurred after the date hereof any event or events that, individually or
in the aggregate, constitute a Material Adverse Effect on the Company or Merger Sub.

(i)                
DTC Eligibility. The Company Common Stock shall be eligible for the Depository Trust Company's full range of depository
services.

(j)                
Current Reports. The Company shall have filed with the SEC all SEC Reports required to be filed prior to the Closing, including
those set forth on Schedule 4.7.

(k)              
Resignations. Existing officers of Company shall resign as of the Closing Date and the existing board of directors of Company
shall resign as of the Appointment Date.

(l)                
Spin-Off of Kingdom Texas. Closing of the spin-off of Kingdom Texas described in Section 5.19 shall have occurred.

(m)            
Name Change. The name of the Company shall be changed to “Latitude 360, Inc.” effective as of the Closing Date.

Article
VII

TERMINATION

7.1.           
Termination. This Agreement may be terminated at any time prior to the Effective Time as follows:

(a)               
by the mutual written consent of the parties to this Agreement;

(b)              
by either the Company or L360, by written notice to the other if, for any reason, (i) the Closing has not occurred prior to the
close of business on or before the Outside Closing Date (unless such date is extended, by the mutual agreement of the parties);
provided, however, that the right to terminate this Agreement pursuant to this Section 7.1(b) shall not be
available to the Company or L360, as applicable, if the party seeking to terminate the Agreement is responsible for the delay
or (ii) if the party seeking to terminate the Agreement is responsible for any condition to Closing under Article IV not being
satisfied;

(c)               
by either the Company or L360, by written notice to the other, if any court of competent jurisdiction shall have issued an order,
judgment or decree (other than a temporary restraining order) restraining, enjoining or otherwise prohibiting the Merger and such
order, judgment or decree shall have become final and nonappealable;

(d)              
at the election of the Company, if (i) L360 has materially breached any representation, warranty, covenant or agreement contained
in this Agreement, which breach has not been cured on or before thirty (30) Business Days following delivery of written notice
of such breach by the Company to L360; provided, however, that the right to terminate this Agreement pursuant to
this Section 7.1(d)(i) shall not be available to the Company if the Company at such time, is in material breach of any
representation, warranty, covenant or agreement set forth in this Agreement or (ii) the Company or its counsel is not satisfied
with the financial, business or legal due diligence investigation of L360 or any item or issue that is discovered in the course
of such investigation as determined by the Company or its counsel in its sole and absolute discretion; or

(e)               
at the election of L360, if (i) the Company has materially breached any representation, warranty, covenant or agreement contained
in this Agreement, which breach has not been cured on or before thirty (30) Business Days following delivery of written notice
to the Company of such breach by L360; provided, however, that the right to terminate this Agreement pursuant to
this Section 7.1(e) shall not be available to L360 if L360, at such time, is in material breach of any representation,
warranty, covenant or agreement set forth in this Agreement or (ii) L360 or its counsel is not satisfied with the financial, business
or legal due diligence investigation of the Company or any item or issue that is discovered in the course of such investigation
as determined by L360 or its counsel in its sole and absolute discretion.

7.2.           
Effect of Termination. In the event of the termination of this Agreement by either the Company or L360, or both of them,
pursuant to Section 7.1(a), Section 7.1(b), Section 7.1(c), Section 7.1(d)(ii) or Section 7.1(e)(ii), (i) this Agreement shall
forthwith become void and have no further force or effect, and (ii) there shall be no further liability under this Agreement on
the part of L360 or the Company, except, in either case, with respect to the provisions of Section 5.6 (Access to Information),
Section 5.7(Confidentiality), Section 5.11 (Public Disclosure), this Section and Section 7.3 (Expenses, Termination Fees), each
of which shall survive the termination of this Agreement.

7.3.           
Expenses; Termination Fees.

(a)               
Except as set forth in this Section 7.3, or otherwise specifically provided in this Agreement, all costs and expenses incurred
in connection with this Agreement, the Merger and the other Transactions shall be paid by the party incurring such costs and expenses,
whether or not the Merger is consummated.

(b)              
Notwithstanding the foregoing, in the event of the termination of this Agreement by either (i) the Company, pursuant to the provisions
of Section 7.1(d)(i-ii), or (ii) L360, pursuant to the provisions of Section 7.1(e)(i-ii), in each case, which shall
include the attempted termination of this Agreement, by either party other than as provided in Section 7.1, where the non-terminating
party has been determined (i) by a court of competent jurisdiction (by a non-appealable decision), (ii) pursuant to a decision
rendered in binding arbitration (which is not appealable) or (iii) by the parties, pursuant to a settlement agreement, in any
case, to have materially breached this Agreement so as to provide for a right of termination pursuant to either Section 7.1(d)(i-ii)
or Section 7.1(e)(i-ii), as applicable, then such non-terminating party shall be required to pay the terminating party’s
Expenses incurred in connection with the transactions contemplated hereunder.

(c)               
Notwithstanding the foregoing, in the event a party terminates this Agreement, in accordance with Section 7.1(d)(i) or
Section 7.1(e)(i), as applicable, and the non-terminating party has been determined (i) by a court of competent jurisdiction
(by a non-appealable decision), (ii) pursuant to a decision rendered in binding arbitration (which is not appealable) or (iii)
by the parties, pursuant to a settlement agreement, in any case, to have materially breached this Agreement so as to provide for
a right of termination pursuant to either Section 7.1(d)(i) or Section 7.1(e)(i), as applicable, then such non-terminating
party shall be required to pay the terminating party’s Expenses incurred in connection with the transactions contemplated
hereunder.

(d)              
All payments required under Section 7.3(b) shall be made by wire transfer of immediately available funds to an account
designated by the party to whom such payment will be made.

(e)               
The term “Expenses” shall mean all out-of-pocket expenses incurred by the Company and its affiliates, on the one hand,
or L360 and its affiliates, on the other hand, in connection with this Agreement and/or any other Transaction Documents, any letter
of intent related to this Agreement, and the transactions contemplated hereby or incidental hereto, including, without limitation,
reasonable fees and expenses of accountants, attorneys and financial advisors.

(f)               
The parties acknowledge that the agreements contained in this Section 7.3 are an integral part of the transactions contemplated
by this Agreement, and that, without these agreements, none of L360, the Company nor Merger Sub would enter into this Agreement.
Accordingly, if either party fails to promptly pay any amounts owing pursuant to this Section 7.3 when due, then the party
from whom such payment is due shall in addition thereto pay to the other party all costs and expenses (including fees and disbursements
of counsel) incurred in collecting such amounts, together with interest on such amounts (or any unpaid portion thereof) from the
date such payment was required to be made until the date such payment is received by the party entitled to such payment hereunder
at the prime rate of Chase Manhattan as in effect from time to time during such period.

Article
VIII

MISCELLANEOUS

8.1.           
Certain Definitions; Rules of Construction. Definitions shall apply equally to both the singular and plural forms of the
terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.
All references herein to Articles, Sections, Exhibits and Schedules shall be deemed to be references to Articles and Sections
of, and Exhibits and Schedules to, this Agreement unless the context shall otherwise require. All Exhibits and Schedules attached
hereto shall be deemed incorporated herein as if set forth in full herein and, unless otherwise defined therein, all terms used
in any Exhibit or Schedule shall have the meaning ascribed to such term in this Agreement. The words “include,” “includes”
and “including” shall be deemed to be followed by the phrase “without limitation.” The words “hereof,”
“herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement
as a whole and not to any particular provision of this Agreement. Unless otherwise expressly provided herein, any agreement, plan,
instrument or statute defined or referred to herein or in any agreement or instrument that is referred to herein means such agreement,
plan, instrument or statute as from time to time amended, modified or supplemented, including (in the case of agreements or instruments)
by waiver or consent and (in the case of statutes) by succession of comparable successor statutes and references to all attachments
thereto and instruments incorporated therein. For the purposes of this Agreement, the following terms shall have the following
meanings:

“Acquisition
Proposal” has the meaning set forth in Section 5.9.

“Acquisition
Transaction” has the meaning set forth in Section 5.9.

“Adjustment
Event” has the meaning set forth in Section 2.3.

“Affiliate”
shall mean, with respect to any Person, any other Person that directly or indirectly controls, is controlled by, or is under common
control with, such first Person. The term “control” means possession, directly or indirectly, of the power to direct
or cause the direction of the management or policies of a Person, whether through the ownership of voting securities, by contract
or otherwise.

“Applicable
Law” means any Federal, state or local law, regulation, code, ordinance, statute, rule, Order, judgment, decree or other
requirement of a Governmental Body applicable to the business of the Company or L360, as the context may require.

“Appointment
Date” has the meaning set forth in Section 5.12.

“Benefit
Plans” has the meaning set forth in Section 3.26.

“Blue
Sky Laws” has the meaning set forth in Section 3.10.

“Business
Day” means any day other than Saturday or Sunday or any other day on which banks in the State of New York are permitted
or obligated to be closed for business.

“Certificate
of Merger” has the meaning set forth in Section 1.2.

“Claim”
means any action, suit, claim, complaint, demand, litigation or similar proceeding.

“Closing”
has the meaning set forth in Section 1.2.

“Closing
Date” has the meaning set forth in Section 1.2.

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

“Company”
has the meaning set forth in the preamble.

“Company
Common Stock” has the meaning set forth in Section 2.1(a).

“Company
Stockholder” and “Company Stockholders” have the meaning set forth in Section 2.1(a).

“Conversion
Rate” has the meaning set forth in Section 2.1(a).

“Dissenting
Shares” shall have the meaning set forth in Section 2.9.

“Effective
Time” has the meaning set forth in Section 1.2.

“Environmental
Laws” means all applicable statutes, rules, regulations, ordinances, orders, decrees, judgments, permits, licenses,
consents, approvals, authorizations, and governmental requirements or directives or other obligations lawfully imposed by Governmental
Body under federal, state, local or common law, indemnity agreements or other contractual obligations, in each case, pertaining
to the protection of the environment, protection of public health, protection of worker health and safety, the treatment, emission
and/or discharge of gaseous, particulate and/or effluent pollutants, and/or the handling of hazardous materials, including, without
limitation, the Clean Air Act, 42 U.S.C. § 7401, et seq., the Comprehensive Environmental Response, Compensation and Liability
Act of 1980 (“CERCLA”), 42 U.S.C. § 9601, et seq., the Federal Water Pollution Control Act, 33 U.S.C. §
1321, et seq., the Hazardous Materials Transportation Act, 49 U.S.C. § 1801, et seq., the Resource Conservation and Recovery
Act, 42 U.S.C. § 6901, et seq. (“RCRA”), and the Toxic Substances Control Act, 15 U.S.C. § 2601, et seq.

“Exchange
Act” means the Securities and Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

“Exchange
Agent” has the meaning set forth in Section 2.2(a).

“Expenses”
has the meaning set forth in Section 7.3(d).

“FLBCA”
has the meaning set forth in the recitals.

“GAAP”
has the meaning set forth in Section 3.14(b).

“Governmental
Body” means any court, administrative or regulatory agency or commission or other governmental authority of competent
jurisdiction.

“Hazardous
Substances” means any pollutants, contaminants, toxic or hazardous or extremely hazardous substances, materials, wastes,
constituents, compounds, chemicals (including, without limitation, petroleum or any by-products or fractions thereof, any form
of natural gas, Bevill Amendment materials, lead, asbestos and asbestos-containing materials, building construction materials
and debris, polychlorinated biphenyls (“PCBs”) and PCB-containing equipment, radon and other radioactive elements,
ionizing radiation, electromagnetic field radiation and other non-ionizing radiation, sonic forces and other natural forces, infectious,
carcinogenic, mutagenic, or etiologic agents, pesticides, defoliants, explosives, flammables, corrosives and urea formaldehyde
foam insulation) that are regulated by any Environmental Laws.

“Indemnified
Persons” has the meaning set forth in Section 5.16.

“Intellectual
Property” means all of the following as they are used in connection with the business of a Person as presently conducted
and as they exist in all jurisdictions throughout the world, in each case, to the extent owned by such Person:

(a)               
patents, patent applications and inventions, designs and improvements described and claimed therein, patentable inventions and
other patent rights (including any divisions, continuations, continuations-in-part, substitutions, or reissues thereof, whether
or not patents are issued on any such applications and whether or not any such applications are modified, withdrawn, or resubmitted);

(b)              
trademarks, service marks, trade dress, trade names, brand names, designs, logos, or corporate names, whether registered or unregistered,
and all registrations and applications for registration thereof; and

(c)               
copyrights and mask works, including all renewals and extensions thereof, copyright registrations and applications for registration
thereof.

“Investment
Letter” has the meaning set forth in Section 5.13.

“Knowledge”
with respect to L360, the actual knowledge of Brent Brown or Greg Garson, and with respect to the Company, Kingdom Texas and Merger
Sub, the actual knowledge of Edward Stevens.

“L360”
has the meaning set forth in the preamble.

“L360
Common Stock” has the meaning set forth in Section 2.1(a).

“L360
Consent” has the meaning set forth in Section 5.3.

“L360
Convertible Securities” has the meaning set forth in Section 2.4 (a).

“L360
Exchange Convertible Notes” has the meaning set forth in Section 2.4(b).

“L360
Financial Statements” has the meaning set forth in Section 3.14.

“L360
Non-Converting Notes” has the meaning set forth in Section 2.4(a).

“L360
Preferred Stock” has the meaning set forth in Section 2.4(a).

“L360
Shareholder” and “L360 Shareholders” have the meaning set forth in Section 2.1(a).

“L360
Warrant” has the meaning set forth in Section 2.4.

“Lien”
means any mortgage, pledge, lien, charge, easement, restrictive covenant, encumbrance, voting or transfer restriction, or security
interest.

“Material
Adverse Effect” means any change, effect, event or occurrence that is materially adverse to the condition (financial
or otherwise), assets, properties, business or operations of a Person and its Subsidiaries, taken as a whole.

“Material
Contract” means all contracts, agreements, understandings or arrangements, whether or not in writing, to which a Person
is a party or by or to which any of them or any of their assets or properties are bound or subject, which has a contract value
or obligation in excess of $100,000.

“Material
Legal Proceedings” has the meaning set forth in Section 3.7.

“Merger”
has the meaning set forth in the recitals.

“Merger
Shares” has the meaning set forth in Section 2.1(a).

“Merger
Sub” has the meaning set forth in the preamble.

“Orders”
has the meaning set forth in Section 3.9.

“Permitted
Liens” has the meaning set forth in Section 3.8.

“Person”
means any individual, corporation, partnership, limited liability company or partnership, joint venture, association, joint-stock
company, trust, unincorporated organization or government (including any agency or political subdivision thereof).

“Recapitalization
Adjustments” has the meaning set forth in Section 2.5.

“Recent
Reports” has the meaning set forth in Section 4.8.

“Representatives”
has the meaning set forth in Section 5.7.

“SEC”
has the meaning set forth in Section 4.7(a).

“SEC
Reports” has the meaning set forth in Section 4.7(a).

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

“Subsidiary”
of any Person means any corporation, partnership, joint venture or other legal entity of which such Person (either directly or
through or together with any other Subsidiary of such Person), owns, directly or indirectly, 50% or more of the stock or other
equity interests the holders of which are generally entitled to vote for the election of the board of directors or similar governing
body of such corporation, partnership, joint venture or other legal entity.

“Surviving
Corporation” has the meaning set forth in Section 1.1.

“Tax”
or “Taxes” means any taxes, charges, fees, imposts, levies or other assessments, including, without limitation,
all net income, franchise, profits, gross receipts, capital, sales, use, ad valorem, value added, transfer, transfer gains, inventory,
capital stock, license, withholding, payroll, employment, social security (or similar), unemployment, excise, severance, stamp,
occupation, real or personal property, premium, windfall profits, environmental (including taxes under Section 59A of the Code),
customs duties, registration, alternative or add-on minimum, and estimated taxes, customs duties, fees, assessments and charges
of any kind whatsoever, together with any interest and any penalties, fines, additions to tax or additional amounts thereon whether
disputed or not, imposed by any taxing authority (Federal, state, local or foreign) and shall include any transferee liability
in respect of Taxes.

“Tax
Return” means any returns, declarations, reports, estimates, information returns or statements relating to Taxes, including
any schedule or attachment thereto, and including any amendment thereof.

“Transaction
Documents” means this Agreement and each of the agreements and instruments contemplated hereby or thereby, including,
without limitation, the Certificate of Merger, all certificates deliverable by the parties, pursuant to Section 6.2 and
Section 6.3, the disclosure schedules and all documents, instruments or agreements attached to or contemplated by any of
the foregoing.

“Transactions”
has the meaning set forth in Section 3.3.

8.2.           
Waivers and Amendments. Subject to Applicable Law, this Agreement may be amended, superseded, canceled, renewed or extended,
and the terms hereof may be waived, only by a written instrument signed by the parties hereto or, in the case of a waiver, by
or on behalf of the party waiving compliance. No delay on the part of any party in exercising any right, power or privilege hereunder
shall operate as a waiver thereof, nor shall any waiver on the part of any party of any such right, power or privilege, nor any
single or partial exercise of any such right, power or privilege, preclude any further exercise thereof or the exercise of any
other such right, power or privilege.

8.3.           
Governing Law. THIS AGREEMENT SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF FLORIDA, WITHOUT
REGARD TO THE PRINCIPLES OF CONFLICTS OF LAWS OF SUCH STATE, APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN
SUCH STATE.

8.4.           
Notices. Any notices or other communications required under this Agreement shall be in writing and be effective (a) upon
delivery if given by hand delivery or facsimile transmission; (b) on the next day after given if delivered by overnight courier;
(c) on the third day after depositing with the U.S. Postal Service, if delivered by certified mail, return receipt requested;
or (d) upon receipt by email delivery, if receipt is confirmed, and shall be given at the addresses, facsimile numbers or email
addresses set forth below, with copies provided as follows:

(a)               
if to the Company or Merger Sub:

Kingdom
Koncrete, Inc.

4232
E. Interstate 30

Rockwall, Texas 75087

Attn:
Edward Stevens, Chief Executive Officer

Fax:

Email:

 

with
a copy to:

Davisson
& Associates, PA

4124
Quebec Avenue North, Suite 306

Minneapolis,
MN 55427

Attn:
Peder K. Davisson

Fax:
(763) 355-5679

Email:
pederd@davissonpa.com

 

(b)              
if to L360:

Latitude
360, Inc.

6022
San Jose Blvd, 2nd Floor

Jacksonville,
FL 32217

Attn:
Brent W. Brown, Chief Executive Officer

Fax:
(904) 730-0010

Email:
bbrown@the-brownstonegroup.com

With
a copy to:

Greenberg
Traurig, P.A

5100 Town Center Circle

Suite 400

Boca Raton, FL 33486

Attn: Bruce C. Rosetto, Esq.

Fax: (561) 367-6225

Email:
rosettob@gtlaw.com

 

 

or
at such other place or places or to such other person or persons as shall be designated in writing by the parties to this Agreement
in the manner herein proved.

8.5.           
Section Headings. The section and paragraph headings contained in this Agreement are for reference purposes only and shall
not in any way affect the meaning or interpretation of this Agreement.

8.6.           
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original,
but all of which, together, shall constitute one and the same instrument. This Agreement may be executed by facsimile or other
electronic image transmission technology. Copies of signature pages delivered by facsimile or other means of electronic image
transmission shall have the same force and effect as originals thereof.

8.7.           
Assignments. This Agreement, by operation of law or otherwise, shall be binding upon and inure to the benefit of successors
and legal representatives of the parties hereto.

8.8.           
Entire Agreement; Enforceability. This Agreement and the other Transaction Documents, including the Exhibits and Schedules
attached hereto and thereto: (i) constitute the entire agreement among the parties with respect to the Transactions and supersede
all prior agreements and understandings, both written and oral, among the parties, with respect to the subject matter hereof and
thereof; and (ii) shall be binding upon, and are solely for the benefit of each party hereto and nothing in this Agreement is
intended to confer upon any other Person any rights or remedy of any nature whatsoever hereunder or by reason of this Agreement
or any of the other Transaction Documents.

8.9.           
Severability. Any term or provision of this Agreement which is invalid, illegal or unenforceable in any jurisdiction shall,
as to that jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without rendering invalid,
illegal or unenforceable the remaining terms and provisions of this Agreement or affecting the validity or enforceability of any
of the terms or provisions of this Agreement in any other jurisdiction. If any provision of this Agreement is so broad as to be
unenforceable, the provision shall be interpreted to be only so broad as is enforceable.

 

 

[Signature
page follows]

    	 

    	 

    

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

	 	KINGDOM KONCRETE, INC.
	 	 
	 	 
	 	By:  /s/ Edward Stevens
	 	Name: Edward Stevens
	 	Title: Chief Executive Officer
	 	 
	 	 
	 	LATITUDE GLOBAL ACQUISITION CORP.
	 	 
	 	 
	 	By:  /s/ Edward Stevens
	 	Name: Edward Stevens
	 	Title: Chief Executive Officer
	 	 
	 	 
	 	LATITUDE 360, INC.
	 	 
	 	 
	 	By:  /s/ Brent W. Brown
	 	Name: Brent W. Brown
	 	Title: Chief Executive OfficerExhibit 4.1

 

BALTIC TRADING LIMITED

2010 EQUITY INCENTIVE PLAN

(as amended and restated effective March 13, 2014)

ARTICLE I

General

		1.1	Purpose

The Baltic Trading Limited 2010 Equity Incentive Plan (the “Plan”) is designed to provide certain key persons, on whose initiative and efforts the successful conduct of the business of Baltic Trading Limited (the “Company”) depends, with incentives to: (a) enter into and remain in the service of the Company (b) acquire a proprietary interest in the success of the Company, (c) maximize their performance and (d) enhance the long-term performance of the Company.

		1.2	Administration

(a)            Administration by Board of Directors.  The Plan shall be administered by the Company’s Board of Directors (the “Administrator”).  The Administrator shall have the authority (i) to exercise all of the powers granted to it under the Plan, (ii) to construe, interpret and implement the Plan and any Award Agreements executed pursuant to Section 2.1 in its sole discretion with all such determination being final, binding and conclusive, (iii) to prescribe, amend and rescind rules and regulations relating to the Plan, including rules governing its own operations, (iv) to make all determinations necessary or advisable in administering the Plan, and (v) to correct any defect, supply any omission and reconcile any inconsistency in the Plan.

(b)            Administrator Action.  Actions of the Administrator shall be taken by the vote of a majority of its members.  Any action may be taken by a written instrument signed by a majority of the Administrator members, and action so taken shall be fully as effective as if it had been taken by a vote at a meeting.

(c)            Delegation.  Except to the extent prohibited by applicable law or the applicable rules of a stock exchange, the Administrator may allocate all or any portion of its responsibilities and powers to any one or more of its members and may delegate all or any part of its responsibilities to any person or persons selected by it, and may revoke any such allocation or delegation at any time.  Specifically, the Board of Directors may delegate to one or more officers of the Company the authority to designate the individuals (other than such officer(s)), who will receive awards under the Plan and the size of each such grant, to the fullest extent permitted by applicable law, provided that the Committee shall itself grant awards to those individuals who could reasonably be considered to be subject to the insider trading provisions of Section 16 of the Securities Exchange Act of 1934 (the “1934 Act”).

(d)            Deemed Delegation to Committee.  To the extent permitted by law, the Board of Directors shall be deemed to have delegated its all of its responsibilities and powers under the Plan, other than the authority to amend or terminate the Plan, to the Compensation Committee of the Board of Directors or such other committee or subcommittee as the Board of Directors may designate or as shall be formed by the abstention or recusal of a non-Qualified Member (as defined below) of such committee (the “Committee”).  The members of the Committee shall be appointed by, and serve at the pleasure of, the Board of Directors.  While it is intended that at all times that the Committee acts in connection with the Plan, the Committee shall consist solely of Qualified Members, the number of whom shall not be less than two, the fact that the Committee is not so comprised will not invalidate any grant hereunder that otherwise satisfies the terms of the Plan.  For purposes of the foregoing, a “Qualified Member” is a “non-employee director” within the meaning of Rule 16b-3 (“Rule 16b‐3”) promulgated under the 1934 Act.  In any circumstance that the Board of Directors elects to act as the Administrator or to delegate its responsibilities and powers to another person or persons other than the Committee, the deemed delegation shall not apply.

		1.3	Persons Eligible for Awards

The persons eligible to receive awards under the Plan are those officers, directors, and executive, managerial, administrative and professional employees of and consultants to (i) the Company, its subsidiaries and joint ventures or (ii) Genco Shipping & Trading Limited (“Genco”), its subsidiaries and joint ventures, (collectively, “key persons”) as the Administrator in its sole discretion shall select, taking into account the duties of the respective employees, their present and potential contributions to the success of the Company, and such other factors as the Administrator shall deem relevant in connection with accomplishing the purpose of the Plan.  The Administrator may from time to time, in its sole discretion, determine that any key person shall be ineligible to receive awards under the Plan.  Key persons of Genco only are eligible to be granted awards as such at such time as Genco continues to own at least 10% of the aggregate number of outstanding shares of Common Stock and Class B Stock of the Company.

		1.4	Types of Awards Under Plan

Awards may be made under the Plan in the form of (a) incentive stock options, (b) non-qualified stock options, (c) stock appreciation rights, (d) dividend equivalent rights, (e) restricted stock, (f) unrestricted stock, (g) restricted stock units, and (h) performance shares, all as more fully set forth in Article II.  The term “award” means any of the foregoing.  No incentive stock option may be granted to a person who is not an employee of the Company or a parent or subsidiary (within the meaning of section 424 of the Code) of the Company on the date of grant.  Notwithstanding any provision of the Plan, to the extent any Award would be subject to Section 409A of the Internal Revenue Code of 1986 (the “Code”), no such Award may be granted if it would fail to comply with the requirements set forth in Section 409A of the Code.

		1.5	Shares Available for Awards

(a)            Subject to adjustment as provided in Section 3.7(a), awards may at any time be granted under the Plan with respect to an aggregate of 6,000,000 shares of common stock of the Company (“Common Stock”).

(b)            Shares issued pursuant to the Plan shall be authorized but unissued Common Stock.  The Administrator may direct that any stock certificate evidencing shares issued pursuant to the Plan shall bear a legend setting forth such restrictions on transferability as may apply to such shares.

(c)            Certain Shares to Become Available Again.  The following shares of Common Stock shall again become available for awards under the Plan: any shares that are subject to an award under the Plan and that remain unissued upon the cancellation or termination of such award for any reason whatsoever; any shares of restricted stock forfeited pursuant to Section 2.7(e), provided that any dividends paid on such shares are also forfeited pursuant to such Section 2.7(e); and any shares in respect of which a stock appreciation right or performance share award is settled for cash.

(d)            Individual Limit.  Except for the limits set forth in this Section 1.5(d) and 2.2(i), no provision of this Plan shall be deemed to limit the number or value of shares with respect to which the Administrator may make awards to any eligible person.  Subject to adjustment as provided in Section 3.7(a), awards may not be granted to any one employee of the Company during any one calendar year with respect to more than 800,000 shares of Common Stock.  Stock options and stock appreciation rights granted and subsequently canceled or deemed to be canceled in a calendar year count against this limit even after their cancellation.  The provisions of this Section 1.5(d) shall not apply in any circumstance with respect to which the Administrator in its sole discretion determines that compliance with Section 162(m) of the Code is not necessary.

		1.6	Definitions of Certain Terms

(a)            The term “applicable company” shall mean any of the Company, Genco, their subsidiaries or joint ventures, as indicated by the context.

(b)            The term “cause” in connection with a termination of employment for cause shall mean:

2

(i)            to the extent that there is an employment, severance or other agreement governing the relationship between the grantee and the applicable company, which agreement contains a definition of “cause,” cause shall consist of those acts or omissions that would constitute “cause” under such agreement; and otherwise,

 

(ii)            the grantee’s termination of employment by the applicable company or an affiliate on account of any one or more of the following:

 

(A)            any failure by the grantee substantially to perform the grantee’s duties;

 

(B)            any excessive unauthorized absenteeism by the grantee;

 

(C)            any refusal by the grantee to obey the lawful orders of the Board of Directors or any other person or Administrator to whom the grantee reports;

 

(D)            any act or omission by the grantee that is or may be injurious to the applicable company, monetarily or otherwise;

 

(E)            any act by the grantee that is inconsistent with the best interests of the applicable company;

 

(F)            the grantee’s material violation of any of the applicable company’s policies, including, without limitation, those policies relating to discrimination or sexual harassment;

 

(G)            the grantee’s unauthorized (a) removal from the premises of the applicable company or an affiliate of any document (in any medium or form) relating to the applicable company or an affiliate or the customers or clients of the applicable company or an affiliate or (b) disclosure to any person or entity of any of the applicable company’s, or its affiliates’ confidential or proprietary information;

 

(H)            the grantee’s commission of any felony, or any other crime involving moral turpitude; and

 

(I)            the grantee’s commission of any act involving dishonesty or fraud.

Any rights the Company may have hereunder in respect of the events giving rise to cause shall be in addition to the rights an applicable company may have under any other agreement with a grantee or at law or in equity.  Any determination of whether a grantee’s employment or board membership is (or is deemed to have been) terminated for cause shall be made by the Administrator in its sole discretion, which determination shall be final, binding and conclusive on all parties.  If, subsequent to a grantee’s voluntary termination of employment or involuntary termination of employment without cause, it is discovered that the grantee’s employment could have been terminated for cause, the Administrator may deem such grantee’s employment or board membership to have been terminated for cause.  A grantee’s termination of employment or board membership for cause shall be effective as of the date of the occurrence of the event giving rise to cause, regardless of when the determination of cause is made.

 

(c)            The term “Code” means the Internal Revenue Code of 1986, as amended.

(d)            The term “employment” shall be deemed to mean an employee’s employment with, or a consultant’s or advisor’s provision of services to, any applicable company and each board member’s service as a board member of any applicable company.

 

(e)            The “Fair Market Value” of a share of Common Stock on any day shall be the closing price on the New York Stock Exchange as reported for such day in The Wall Street Journal or, if no such price is reported for 

3

such day, the average of the high bid and low asked price of Common Stock as reported for such day.  If no quotation is made for the applicable day, the Fair Market Value of a share of Common Stock on such day shall be determined in the manner set forth in the preceding sentence using quotations for the next preceding day for which there were quotations, provided that such quotations shall have been made within the ten (10) business days preceding the applicable day.  Notwithstanding the foregoing, if deemed necessary or appropriate by the Administrator in its sole discretion, the Fair Market Value of a share of Common Stock on any day shall be determined by the Administrator.  In no event shall the Fair Market Value of any share of Common Stock be less than its par value.

(f)            The term “incentive stock option” means an option that is intended to qualify for special federal income tax treatment pursuant to sections 421 and 422 of the Code as now constituted or subsequently amended, or pursuant to a successor provision of the Code, and which is so designated in the applicable Award Agreement.  Any option that is not an incentive stock option is referred to herein as a “non-qualified stock option.”  Any option that is not specifically designated as an incentive stock option shall be a non-qualified stock option.

(g)            A grantee shall be deemed to have terminated employment upon (i) the date the grantee ceases to be employed by, or to provide consulting or advisory services for, an applicable company or any entity that assumes the grantee’s option; or (ii) the date the grantee ceases to be a member of the Board of Directors of an applicable company; provided, however, that in the case of a grantee (x) who is, at the time of reference, both an employee or consultant or advisor and a board member, or (y) who ceases to be engaged as an employee, consultant, advisor or board member and immediately is engaged in another of such relationships with an applicable company, the grantee shall be deemed to have terminated employment upon the later of the dates determined pursuant to clauses (i) and (ii) of this Section 1.6(g).  For purposes of clause (i) of this Section 1.6(g), a grantee who continues his or her employment, consulting or advisory relationship with:  (A) an applicable company that is a direct or indirect subsidiary of the Company or Genco subsequent to its sale by the Company or Genco, (B) an applicable company that is a joint venture of the Company or Genco or any of their respective subsidiaries subsequent to the sale by the Company or Genco or any of their respective subsidiaries of its interests in such joint venture or (C) Genco or its subsidiaries or joint ventures other than the Company or subsidiaries or joint ventures of the Company after Genco ceases to own at least 10% of the outstanding shares of Common Stock and Class B Stock of the Company, shall have a termination of employment upon the date of such sale or the date Genco ceases to own such percentage of shares unless such grantee has some other employment with an applicable company that is not terminated as described in this paragraph.  The Administrator may in its sole discretion determine whether any leave of absence constitutes a termination of employment for purposes of the Plan and the impact, if any, of any such leave of absence on options theretofore made under the Plan.

ARTICLE II

Awards Under The Plan

		2.1	Agreements Evidencing Awards

Each award granted under the Plan (except an award of unrestricted stock) shall be evidenced by a written agreement (“Award Agreement”) which shall contain such provisions as the Administrator may, in its sole discretion, deem necessary or desirable.  By executing an Award Agreement pursuant to the Plan, a grantee thereby agrees that the award shall be subject to all of the terms and provisions of the Plan and the applicable Award Agreement.

 

		2.2	Grant of Stock Options, Stock Appreciation Rights, Restricted Stock Units and Dividend Equivalent Rights

 

(a)                 Stock Option Grants.  The Administrator may grant incentive stock options and non-qualified stock options (“options”) to purchase shares of Common Stock from the Company, to such key persons, and in such amounts and subject to such vesting and forfeiture provisions and other terms and conditions, as the Administrator shall determine, in its sole discretion, subject to the provisions of the Plan.

4

 

(b)            Stock Appreciation Right Grants; Types of Stock Appreciation Rights.  The Administrator may grant stock appreciation rights to such key persons, and in such amounts and subject to such vesting and forfeiture provisions and other terms and conditions, as the Administrator shall determine, in its sole discretion, subject to the provisions of the Plan.  Stock appreciation rights may be granted in connection with all or any part of, or independently of, any option granted under the Plan.  A stock appreciation right granted in connection with an option may be granted at or after the time of grant of such option.

 

(c)                  Nature of Stock Appreciation Rights.  The grantee of a stock appreciation right shall have the right, subject to the terms of the Plan and the applicable Award Agreement, to receive from the Company an amount equal to (i) the excess of the Fair Market Value of a share of Common Stock on the date of exercise of the stock appreciation right over the Fair Market Value of a share of Common Stock on the date of grant (or over the option exercise price if the stock appreciation right is granted in connection with an option), multiplied by (ii) the number of shares with respect to which the stock appreciation right is exercised.  Payment upon exercise of a stock appreciation right shall be in cash or in shares of Common Stock (valued at their Fair Market Value on the date of exercise of the stock appreciation right) or both, all as the Administrator shall determine in its sole discretion.  Upon the exercise of a stock appreciation right granted in connection with an option, the number of shares subject to the option shall be reduced by the number of shares with respect to which the stock appreciation right is exercised.  Upon the exercise of an option in connection with which a stock appreciation right has been granted, the number of shares subject to the stock appreciation right shall be reduced by the number of shares with respect to which the option is exercised.

(d)            Option Exercise Price.  Each Award Agreement with respect to an option shall set forth the amount (the “option exercise price”) payable by the grantee to the Company upon exercise of the option evidenced thereby.  The option exercise price per share shall be determined by the Administrator in its sole discretion; provided, however, that the option exercise price of an incentive stock option shall be at least 100% of the Fair Market Value of a share of Common Stock on the date the option is granted, and provided further that in no event shall the option exercise price be less than the par value of a share of Common Stock.

(e)            Exercise Period.  Each Award Agreement with respect to an option or stock appreciation right shall set forth the periods during which the award evidenced thereby shall be exercisable, whether in whole or in part.  Such periods shall be determined by the Administrator in its sole discretion; provided, however, that no option or a stock appreciation right shall be exercisable more than 10 years after the date of grant.  (See Section 2.3 for additional provisions relating to the exercise of options and stock appreciation rights.)  The terms of a stock appreciation right may provide that it shall be automatically exercised for a cash payment upon the happening of a specified event that is outside the control of the grantee, and that it shall not be otherwise exercisable.

(f)            Reload Options.  The Administrator may, in its sole discretion, include in any Award Agreement with respect to an option (the “original option”) a provision that an additional option (the “reload option”) shall be granted to any grantee who, pursuant to Section 2.3(e)(ii), delivers shares of Common Stock in partial or full payment of the exercise price of the original option.  The reload option shall be for a number of shares of Common Stock equal to the number thus delivered, shall have an exercise price equal to the Fair Market Value of a share of Common Stock on the date of exercise of the original option, and shall have an expiration date no later than the expiration date of the original option.  In the event that a Award Agreement provides for the grant of a reload option, such Agreement shall also provide that the exercise price of the original option be no less than the Fair Market Value of a share of Common Stock on its date of grant, and that any shares that are delivered pursuant to Section 2.3 (e) (ii) in payment of such exercise price shall have been held for at least six months.

(g)            Dividend Equivalent Rights.  The Administrator may, in its sole discretion, include in any Award Agreement with respect to an option, stock appreciation right or performance shares, a dividend equivalent right entitling the grantee to receive amounts equal to the ordinary dividends that would be paid, during the time such award is outstanding and unexercised, on the shares of Common Stock covered by such award if such shares were then outstanding.  In the event such a provision is included in a Award Agreement, the Administrator shall determine in its sole discretion whether such payments shall be made in cash or in shares of Common Stock, whether they shall be conditioned upon the exercise of the award to which they relate, the time or times at which they shall be made, and such other vesting and forfeiture provisions and other terms and conditions as the Administrator shall deem appropriate.

5

(h)            Incentive Stock Option Limitation: Exercisability.  To the extent that the aggregate Fair Market Value (determined as of the time the option is granted) of the stock with respect to which incentive stock options are first exercisable by any employee during any calendar year shall exceed $100,000, or such higher amount as may be permitted from time to time under section 422 of the Code, such options shall be treated as non-qualified stock options.

(i)              Incentive Stock Option Limitation: 10% Owners.  Notwithstanding the provisions of paragraphs (d) and (e) of this Section 2.2, an incentive stock option may not be granted under the Plan to an individual who, at the time the option is granted, owns stock possessing more than 10% of the total combined voting power of all classes of stock of his employer corporation or of its parent or subsidiary corporations (as such ownership may be determined for purposes of section 422(b) (6) of the Code) unless (i) at the time such incentive stock option is granted the option exercise price is at least 110% of the Fair Market Value of the shares subject thereto and (ii) the incentive stock option by its terms is not exercisable after the expiration of 5 years from the date it is granted.

		2.3	Exercise of Options and Stock Appreciation Rights

Subject to the other provisions of this Article II, each option and stock appreciation right granted under the Plan shall be exercisable as follows:

(a)            Timing and Extent of Exercise.  Options and stock appreciation rights shall be exercisable at such times and under such conditions as set forth in the corresponding Award Agreement, but in no event shall any such award be exercisable subsequent to the tenth anniversary of the date on which such award was granted.  Unless the applicable Award Agreement otherwise provides, an option or stock appreciation right may be exercised from time to time as to all or part of the shares or units as to which such award is then exercisable.  A stock appreciation right granted in connection with an option may be exercised at any time when, and to the same extent that, the related option may be exercised.

(b)            Notice of Exercise.  An option or stock appreciation right shall be exercised by the filing of a written notice with the Company or the Company’s designated exchange agent (the “exchange agent”), on such form and in such manner as the Administrator shall in its sole discretion prescribe.

(c)            Payment of Exercise Price.  Any written notice of exercise of an option shall be accompanied by payment for the shares being purchased.  Such payment shall be made: (i) by certified or official bank check (or the equivalent thereof acceptable to the Company or its exchange agent) for the full option exercise price; or (ii) with the consent of the Administrator, by delivery of shares of Common Stock having a Fair Market Value (determined as of the exercise date) equal to all or part of the option exercise price and a certified or official bank check (or the equivalent thereof acceptable to the Company or its exchange agent) for any remaining portion of the full option exercise price; or (iii) at the sole discretion of the Administrator and to the extent permitted by law, by such other provision, consistent with the terms of the Plan, as the Administrator may from time to time prescribe (whether directly or indirectly through the exchange agent).

(d)            Delivery of Certificates Upon Exercise.  Subject to the provision of sections 2.3(e) and 3.2, promptly after receiving payment of the full option exercise price, or after receiving notice of the exercise of a stock appreciation right for which payment will be made partly or entirely in shares, the Company or its exchange agent shall deliver to the grantee or to such other person as may then have the right to exercise the award, a certificate or certificates for the shares of Common Stock for which the award has been exercised.  If the method of payment employed upon option exercise so requires, and if applicable law permits, an optionee may direct the Company, or its exchange agent as the case may be, to deliver the stock certificate(s) to the optionee’s stockbroker.

(e)            Investment Purpose and Legal Requirements.  Notwithstanding the foregoing, at the time of the exercise of any option, the Company may, if it shall deem it necessary or advisable for any reason, require the optionee (i) to represent in writing to the Company that it is the optionee’s then intention to acquire the Shares with respect to which the option is to be exercised for investment and not with a view to the distribution thereof, or (ii) to postpone the date of exercise until such time as the Company has available for delivery to the optionee a prospectus meeting the requirements of all applicable securities laws; and no shares shall be issued or transferred upon the exercise of any option unless and until all legal requirements applicable to the issuance or transfer of such Shares 

6

have been complied with to the satisfaction of the Company.  The Company shall have the right to condition any issuance of shares to any optionee hereunder on such optionee’s undertaking in writing to comply with such restrictions on the subsequent transfer of such shares as the Company shall deem necessary or advisable as a result of any applicable law, regulation or official interpretation thereof, and certificates representing such shares may contain a legend to reflect any such restrictions.

 

(f)             No Stockholder Rights.  No grantee of an option or stock appreciation right (or other person having the right to exercise such award) shall have any of the rights of a stockholder of the Company with respect to shares subject to such award until the issuance of a stock certificate to such person for such shares.  Except as otherwise provided in Section 1.5(c), no adjustment shall be made for dividends, distributions or other rights (whether ordinary or extraordinary, and whether in cash, securities or other property) for which the record date is prior to the date such stock certificate is issued.

		2.4	Compensation in Lieu of Exercise of an Option

Upon written application of the grantee of an option, the Administrator may in its sole discretion determine to substitute, for the exercise of such option, compensation to the grantee not in excess of the difference between the option exercise price and the Fair Market Value of the shares covered by such written application on the date of such application.  Such compensation may be in cash, in shares of Common Stock, or both, and the payment thereof may be subject to conditions, all as the Administrator shall determine in its sole discretion.  In the event compensation is substituted pursuant to this Section 2.4 for the exercise, in whole or in part, of an option, the number of shares subject to the option shall be reduced by the number of shares for which such compensation is substituted.

		2.5	Termination of Employment; Death Subsequent to a Termination of Employment

(a)            General Rule.  Except to the extent otherwise provided in paragraphs (b), (c), (d) or (e) of this Section 2.5 or in Section 3.8(b)(iii) or by the Administrator in the Award Agreement or otherwise, a grantee who incurs a termination of employment may exercise any outstanding option or stock appreciation right on the following terms and conditions: (i) exercise may be made only to the extent that the grantee was entitled to exercise the award on the termination of employment date; and (ii) exercise must occur within three months after termination of employment but in no event after the original expiration date of the award.

(b)            Dismissal for Cause; Resignation.  If a grantee’s employment is terminated for cause or a grantee resigns without the Company’s prior consent, as applicable, all options and stock appreciation rights not theretofore exercised shall terminate upon the grantee’s termination of employment.

(c)            Retirement.  If a grantee terminates employment as the result of his retirement, then any outstanding option or stock appreciation right shall be exercisable pursuant to its terms.  For this purpose “retirement” shall mean a grantee’s termination of employment, under circumstances other than for cause, on or after: (x) his 65th birthday, (y) the date on which he has attained age 60 and completed at least five years of service with the Company, as applicable, (using any method of calculation the Administrator deems appropriate) or (z) if approved by the Administrator, on or after he has completed at least 20 years of service.

(d)            Disability.  If a grantee’s employment terminates by reason of a disability (as defined below), then any outstanding option or stock appreciation right shall be exercisable pursuant to its terms.  For this purpose “disability” shall mean any physical or mental condition that would qualify a grantee for a disability benefit under the long-term disability plan maintained by the Company, and if there is no such plan, a physical or mental condition that prevents the grantee from performing the essential functions of the grantee’s position (with or without reasonable accommodation) for a period of six consecutive months.  The existence of a disability shall be determined by the Administrator in its sole discretion.

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(e)            Death.

 

(i)            Termination of Employment as a Result of Grantee’s Death.  If a grantee’s employment terminates due to his death, then any outstanding option or stock appreciation right shall be exercisable pursuant to its terms.

 

(ii)            Restrictions on Exercise Following Death.  Any such exercise of an award following a grantee’s death shall be made only by the grantee’s executor or administrator or other duly appointed representative reasonably acceptable to the Administrator, unless the grantee’s will specifically disposes of such award, in which case such exercise shall be made only by the recipient of such specific disposition.  If a grantee’s personal representative or the recipient of a specific disposition under the grantee’s will shall be entitled to exercise any award pursuant to the preceding sentence, such representative or recipient shall be bound by all the terms and conditions of the Plan and the applicable Award Agreement which would have applied to the grantee including, without limitation, the provisions of Sections 3.2 and 3.5 hereof.

(f)             Special Rules for Incentive Stock Options.  An option may not be treated as an incentive stock option to the extent that it remains exercisable for more than three months following a grantee’s termination of employment for any reason other than death or disability, or for more than one year following a grantee’s termination of employment as the result of his becoming disabled.

		2.6	Transferability of Options and Stock Appreciation Rights

Except as otherwise provided in an applicable Award Agreement evidencing an option or stock appreciation right, during the lifetime of a grantee, each option or stock appreciation right granted to a grantee shall be exercisable only by the grantee and no option or stock appreciation right shall be assignable or transferable otherwise than by will or by the laws of descent and distribution.  The Administrator may, in any applicable Award Agreement evidencing an option (other than an incentive stock option to the extent inconsistent with the requirements of section 422 of the Code applicable to incentive stock options) or a stock appreciation right, permit a grantee to transfer all or some of the options or stock appreciation rights, as applicable, to (A) the grantee’s spouse, children or grandchildren (“Immediate Family Members”), (B) a trust or trusts for the exclusive benefit of such Immediate Family Members, or (C) other parties approved by the Administrator in its sole discretion.  Following any such transfer, any transferred options and stock appreciation rights shall continue to be subject to the same terms and conditions as were applicable immediately prior to the transfer.

		2.7	Grant of Restricted Stock

(a)            Restricted Stock Grants.  The Administrator may grant restricted shares of Common Stock to such key persons, in such amounts, and subject to such vesting and forfeiture provisions and other terms and conditions as the Administrator shall determine in its sole discretion, subject to the provisions of the Plan.  Restricted stock awards may be made independently of or in connection with any other award under the Plan.  A grantee of a restricted stock award shall have no rights with respect to such award unless such grantee accepts the award within such period as the Administrator shall specify by accepting delivery of an Award Agreement in such form as the Administrator shall determine and, in the event the restricted shares are newly issued by the Company, makes payment to the Company or its exchange agent as required by the Administrator and in accordance with the Marshall Islands Business Corporations Act.

(b)            Issuance of Stock Certificate(s).  Promptly after a grantee accepts a restricted stock award, the Company or its exchange agent shall issue to the grantee a stock certificate or stock certificates for the shares of Common Stock covered by the award or shall establish an account evidencing ownership of the stock in uncertificated form.  Upon the issuance of such stock certificate(s), or establishment of such account, the grantee shall have the rights of a stockholder with respect to the restricted stock, subject to: (i) the nontransferability restrictions and forfeiture provision described in paragraphs (d) and (e) of this Section 2.7; (ii) in the Administrator’s sole discretion, a requirement that any dividends paid on such shares shall be held in escrow until all such shares have vested; and (iii) any other restrictions and conditions contained in the applicable Award Agreement.

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(c)            Custody of Stock Certificate(s).  Unless the Administrator shall otherwise determine in its sole discretion, any stock certificates issued evidencing shares of restricted stock shall remain in the possession of the Company until such shares are free of any restrictions specified in the applicable Award Agreement.  The Administrator may direct that such stock certificate(s) bear a legend setting forth the applicable restrictions on transferability.

(d)            Vesting/Nontransferability.  Until they vest, shares of restricted stock may not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of except as otherwise specifically provided in this Plan or the applicable Award Agreement.  The Administrator at the time of grant shall specify the date or dates (which may depend upon or be related to the attainment of performance goals and other conditions) on which the restricted shares shall vest.

(e)            Consequence of Termination of Employment.  Unless the Administrator, in its sole discretion, determines otherwise, a grantee’s termination of employment for any reason (including death) shall cause the immediate forfeiture of all shares of restricted stock that have not yet vested as of the date of such termination of employment.  All dividends paid on such shares also shall be forfeited, whether by termination of any escrow arrangement under which such dividends are held, by the grantee’s repayment of dividends he received directly, or otherwise, unless the Administrator determines otherwise in its sole discretion.

		2.8	
Grant of Restricted Stock Units

 

(a)            Restricted Stock Unit Grants. The Administrator may grant restricted stock units to such key persons, in such amounts, and subject to such terms and conditions as the Administrator shall determine in its sole discretion, subject to the provisions of the Plan. Restricted stock units may be awarded independently of or in connection with any other award under the Plan. A grantee of a restricted stock unit award shall have no rights with respect to such award unless such grantee accepts the award within such period as the Committee shall specify by accepting delivery of an award agreement in such form as the Committee shall determine. A grant of a restricted stock unit entitles the grantee to receive a share of Common Stock or, in the sole discretion of the Administrator, the value of a share, on the date that such restricted stock unit vests.

(b)            Vesting/Nontransferability.  The Administrator shall specify at the time of grant the date or dates (which may depend upon or be related to a period of continued employment with the Company, the attainment of performance goals or other conditions or a combination of such conditions) on which the restricted stock units shall vest.  Prior to vesting, restricted stock units may not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of except as otherwise specifically provided in this Plan or the applicable Award Agreement.

(c)            Consequence of Termination of Employment. Except as may otherwise be provided by the Committee at any time prior to a grantee’s termination of employment, a grantee’s termination of employment for any reason (including death) shall cause the immediate forfeiture of all restricted stock units that have not yet vested as of the date of such termination of employment.

(d)            Stockholder Rights.  The grantee of a restricted stock unit will have the rights of a stockholder only as to shares for which a stock certificate has been issued pursuant to the award and not with respect to any other shares subject to the award.

		2.9	Grant of Unrestricted Stock

The Administrator may grant (or sell at a purchase price at least equal to par value) shares of Common Stock free of restrictions under the Plan, to such key persons and in such amounts and subject to such forfeiture provisions as the Administrator shall determine in its sole discretion.  Shares may be thus granted or sold in respect of past services or other valid consideration.

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		2.10	Grant of Performance Shares

(a)            Performance Share Grants.  The Administrator may grant performance share awards to such key persons, and in such amounts and subject to such vesting and forfeiture provisions and other terms and conditions, as the Administrator shall in its sole discretion determine, subject to the provisions of the Plan.  Such an award shall entitle the grantee to acquire shares of Common Stock, or to be paid the value thereof in cash, as the Administrator shall determine in its sole discretion, if specified performance goals are met.  Performance shares may be awarded independently of, or in connection with, any other award under the Plan.  A grantee shall have no rights with respect to a performance share award unless such grantee accepts the award by accepting delivery of an Award Agreement at such time and in such form as the Administrator shall determine in its sole discretion.

(b)            Stockholder Rights.  The grantee of a performance share award will have the rights of a stockholder only as to shares for which a stock certificate has been issued pursuant to the award and not with respect to any other shares subject to the award.

(c)            Consequence of Termination of Employment.  Except as may otherwise be provided by the Administrator, the rights of a grantee of a performance share award shall automatically terminate upon the grantee’s termination of employment by the Company or its subsidiaries for any reason (including death).

(d)            Exercise Procedures; Automatic Exercise.  At the sole discretion of the Administrator, the applicable Award Agreement may set out the procedures to be followed in exercising a performance share award or it may provide that such exercise shall be made automatically after satisfaction of the applicable performance goals.

(e)            Tandem Grants; Effect on Exercise.  Except as otherwise specified by the Administrator, (i) a performance share award granted in tandem with an option may be exercised only while the option is exercisable, (ii) the exercise of a performance share award granted in tandem with any other award shall reduce the number of shares subject to such other award in the manner specified in the applicable Award Agreement, and (iii) the exercise of any award granted in tandem with a performance share award shall reduce the number of shares subject to the latter in the manner specified in the applicable Award Agreement.

(f)            Nontransferability.  Performance shares may not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of except as otherwise specifically provided in this Plan or the applicable Award Agreement.  The Administrator at the time of grant shall specify the date or dates (which may depend upon or be related to the attainment of performance goals and other conditions) on which the nontransferability of the performance shares shall lapse.

ARTICLE III

Miscellaneous

		3.1	Amendment of the Plan; Modification of Awards

(a)            Amendment of the Plan.  The Board of Directors may from time to time suspend, discontinue, revise or amend the Plan in any respect whatsoever, except that no such amendment shall materially impair any rights or materially increase any obligations under any award theretofore made under the Plan without the consent of the grantee (or, upon the grantee’s death, the person having the right to exercise the award).  For purposes of this Section 3.1, any action of the Board of Directors or the Administrator that in any way alters or affects the tax treatment of any award shall not be considered to materially impair any rights of any grantee.

(b)            Stockholder Approval Requirement.  Stockholder approval shall be required with respect to any amendment to the Plan that (i) increases the aggregate number of shares that may be issued pursuant to incentive stock options or changes the class of employees eligible to receive such options; or (ii) materially increases the benefits under the Plan to persons whose transactions in Common Stock are subject to Section 16(b) of the 1934 Act or increases the benefits under the Plan or materially increases the number of shares which may be issued to such persons, or materially modifies the eligibility requirements affecting such persons.

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(c)            Modification of Awards.  The Administrator may cancel any award under the Plan.  The Administrator also may amend any outstanding Award Agreement, including, without limitation, by amendment which would: (i) accelerate the time or times at which the award becomes unrestricted or may be exercised; (ii) waive or amend any goals, restrictions or conditions set forth in the Agreement; or (iii) waive or amend the operation of Section 2.5 with respect to the termination of the award upon termination of employment.  However, any such cancellation or amendment (other than an amendment pursuant to Sections 3.7 or 3.8(b)) that materially impairs the rights or materially increases the obligations of a grantee under an outstanding award shall be made only with the consent of the grantee (or, upon the grantee’s death, the person having the right to exercise the award).

		3.2	Consent Requirement

(a)            No Plan Action Without Required Consent.  If the Administrator shall at any time determine in its sole discretion that any Consent (as hereinafter defined) is necessary or desirable as a condition of, or in connection with, the granting of any award under the Plan, the issuance or purchase of shares or other rights thereunder, or the taking of any other action thereunder (each such action being hereinafter referred to as a “Plan Action”), then such Plan Action shall not be taken, in whole or in part, unless and until such Consent shall have been effected or obtained to the full satisfaction of the Administrator.

(b)            Consent Defined.  The term “Consent” as used herein with respect to any Plan Action means (i) any and all listings, registrations or qualifications in respect thereof upon any securities exchange or under any federal, state or local law, rule or regulation, (ii) any and all written agreements and representations by the grantee with respect to the disposition of shares, or with respect to any other matter, which the Administrator shall deem necessary or desirable to comply with the terms of any such listing, registration or qualification or to obtain an exemption from the requirement that any such listing, qualification or registration be made and (iii) any and all consents, clearances and approvals in respect of a Plan Action by any governmental or other regulatory bodies.

		3.3	Nonassignability

Except as provided in Sections 2.5(e), 2.6, 2.7(d) and 2.9(f): (a) no award or right granted to any person under the Plan or under any Award Agreement shall be assignable or transferable other than by will or by the laws of descent and distribution; and (b) all rights granted under the Plan or any Award Agreement shall be exercisable during the life of the grantee only by the grantee or the grantee’s legal representative.

		3.4	Requirement of Notification of Election Under Section 83(b) of the Code

If any grantee shall, in connection with the acquisition of shares of Common Stock under the Plan, make the election permitted under section 83(b) of the Code (i.e., an election to include in gross income in the year of transfer the value of unvested restricted stock), such grantee shall notify the Company of such election within 10 days of filing notice of the election with the Internal Revenue Service, in addition to any filing and notification required pursuant to regulations issued under the authority of Code section 83(b).

		3.5	Requirement of Notification Upon Disqualifying Disposition Under Section 421(b) of the Code

Each grantee of an incentive stock option shall notify the Company of any disposition of shares of Common Stock issued pursuant to the exercise of such option under the circumstances described in section 421(b) of the Code (relating to certain disqualifying dispositions), within 10 days of such disposition.

		3.6	Withholding Taxes

(a)            With Respect to Cash Payments.  Whenever cash is to be paid pursuant to an award under the Plan, the Company shall be entitled to deduct therefrom an amount sufficient in its opinion to satisfy all federal, state and other governmental tax withholding requirements related to such payment.

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(b)            With Respect to Delivery of Common Stock.  Whenever shares of Common Stock are to be delivered pursuant to an award under the Plan, the Company shall be entitled to require as a condition of delivery that the grantee remit to the Company an amount sufficient in the opinion of the Company to satisfy all federal, state and other governmental tax withholding requirements related thereto.  With the approval of the Administrator, which the Administrator shall have sole discretion whether or not to give, the grantee may satisfy the foregoing condition by electing to have the Company withhold from delivery shares having a value equal to the amount of tax to be withheld. Such shares shall be valued at their Fair Market Value as of the date on which the amount of tax to be withheld is determined. Fractional share amounts shall be settled in cash.  Such a withholding election may be made with respect to all or any portion of the shares to be delivered pursuant to an award.

		3.7	Adjustment Upon Changes in Common Stock

(a)            Corporate Events.  In the event of any change in the number of shares of Common Stock outstanding by reason of any stock dividend or split, reverse stock split, recapitalization, merger, consolidation, combination or exchange of shares or similar corporate change (collectively referred to as “corporate events”), the Administrator shall make the following adjustments:

 

(i)            Shares Available for Grants.  The maximum number of shares of Common Stock with respect to which the Administrator may grant awards under Article II hereof, as described in Section 1.5(a), and the individual annual limit described in Section 1.5(e), shall be appropriately adjusted by the Administrator.  In the event of any change in the number of shares of Common Stock outstanding by reason of any event or transaction other than a corporate event, the Administrator may, but need not, adjust the maximum number of shares of Common Stock with respect to which the Administrator may grant awards under Article II hereof, as described in Section 1.5(a), and the individual annual limit described in Section 1.5(e), with respect to the number and class of shares of Common Stock, in each case as the Administrator may deem appropriate.

 

(ii)            Restricted Stock.  Unless the Administrator in its sole discretion otherwise determines, any securities or other property (including dividends paid in cash) received by a grantee with respect to a share of restricted stock as a result of a corporate event, the issue date with respect to which occurs prior to such event, but which has not vested as of the date of such event, will not vest until such share of restricted stock vests, and shall be promptly deposited with the Company or other custodian designated pursuant to Section 2.7(c) hereof.

 

(iii)            Restricted Stock Units and Performance Shares The Administrator shall adjust outstanding grants of shares of restricted stock units or performance shares to reflect any corporate event as the Administrator may deem appropriate to prevent the enlargement or dilution of rights of grantees.

 

(iv)            Options, Stock Appreciation Rights and Dividend Equivalent Rights.  Subject to any required action by the stockholders of the Company, in the event of any increase or decrease in the number of issued shares of Common Stock resulting from a corporate event or any other increase or decrease in the number of such shares effected without receipt of consideration by the Company, the Administrator shall proportionally adjust the number of shares of Common Stock subject to each outstanding option and stock appreciation right, the exercise price-per-share of Common Stock of each such option and stock appreciation right and the number of any related dividend equivalent rights.

(b)            Outstanding Options, Stock Appreciation Rights, Restricted Stock Units, Performance Shares and Dividend Equivalent Rights – Certain Mergers.  Subject to any required action by the stockholders of the Company, in the event that the Company shall be the surviving corporation in any merger or consolidation (except a merger or consolidation as a result of which the holders of shares of Common Stock receive securities of another corporation), each option, stock appreciation right, restricted stock unit, performance share and dividend equivalent right outstanding on the date of such merger or consolidation shall pertain to and apply to the securities which a holder of 

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the number of shares of Common Stock subject to such option, stock appreciation right, restricted stock unit, performance share or dividend equivalent right would have received in such merger or consolidation.

 

(c)            Outstanding Options, Stock Appreciation Rights, Restricted Stock Units, Performance Shares and Dividend Equivalent Rights -- Certain Other Transactions.  In the event of (i) a dissolution or liquidation of the Company, (ii) a sale of all or substantially all of the Company’s assets, (iii) a merger or consolidation involving the Company in which the Company is not the surviving corporation or (iv) a merger or consolidation involving the Company in which the Company is the surviving corporation but the holders of shares of Common Stock receive securities of another corporation and/or other property, including cash, the Administrator shall, in its sole discretion, have the power to:

 

(i)            cancel, effective immediately prior to the occurrence of such event, each option, stock appreciation right, restricted stock unit and performance share (including each dividend equivalent right related thereto) outstanding immediately prior to such event (whether or not then exercisable), and, in full consideration of such cancellation, pay to the grantee (A) to whom such option or stock appreciation right was granted an amount in cash, for each share of Common Stock subject to such option or stock appreciation right, respectively, equal to the excess of (x) the value, as determined by the Administrator in its sole discretion, of the property (including cash) received by the holder of a share of Common Stock as a result of such event over (y) the exercise price of such option or stock appreciation right and (B) to whom such restricted stock unit and performance share was granted, for each share of Common Stock subject to such award, the value, as determined by the Administrator in its sole discretion, of the property (including cash) received by the holder of a share of Common Stock as a result of such event; or

 

(ii)            provide for the exchange of each option, stock appreciation right, restricted stock unit and performance share (including any related dividend equivalent right) outstanding immediately prior to such event (whether or not then exercisable) for an option on, stock appreciation right, restricted stock unit, performance share and dividend equivalent right with respect to, as appropriate, some or all of the property which a holder of the number of shares of Common Stock subject to such option, stock appreciation right or restricted stock unit would have received and, incident thereto, make an equitable adjustment as determined by the Administrator in its sole discretion in the exercise price of the option or stock appreciation right, or the number of shares or amount of property subject to the option, stock appreciation right, restricted stock unit, performance share or dividend equivalent right or, if the Administrator so determines in its sole discretion, provide for a cash payment to the grantee to whom such option, stock appreciation right, restricted stock unit or performance share was granted in partial consideration for the exchange of the option, stock appreciation right, restricted stock unit or performance share.

(d)            Outstanding Options, Stock Appreciation Rights, Restricted Stock Units, Performance Shares and Dividend Equivalent Rights -- Other Changes.  In the event of any change in the capitalization of the Company or a corporate change other than those specifically referred to in Sections 3.7(a), (b) or (c) hereof, the Administrator may, in its sole discretion, make such adjustments in the number and class of shares subject to options, stock appreciation rights, restricted stock units, performance shares and dividend equivalent rights outstanding on the date on which such change occurs and in the per-share exercise price of each such option and stock appreciation right as the Administrator may consider appropriate to prevent dilution or enlargement of rights.  In addition, if and to the extent the Administrator, in its sole discretion, determines it is appropriate, the Administrator may elect to cancel each option, stock appreciation right, restricted stock unit and performance share (including each dividend equivalent right related thereto) outstanding immediately prior to such event (whether or not then exercisable), and, in full consideration of such cancellation, pay to the grantee to whom such award was granted an amount in cash, (A) for each share of Common Stock subject to such option or stock appreciation right, respectively, equal to the excess of (i) the Fair Market Value of Common Stock on the date of such cancellation over (ii) the exercise price of such option or stock appreciation right (B) for each share of Common Stock subject to such restricted stock unit or performance share equal to the Fair Market Value of Common Stock on the date of such cancellation.

 

(e)            No Other Rights.  Except as expressly provided in the Plan, no grantee shall have any rights by reason of any subdivision or consolidation of shares of stock of any class, the payment of any dividend, any increase 

 

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or decrease in the number of shares of stock of any class or any dissolution, liquidation, merger or consolidation of the Company or any other corporation.  Except as expressly provided in the Plan, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number of shares of Common Stock subject to an award or the exercise price of any option or stock appreciation right.

		3.8	Change in Control

(a)            Change in Control Defined.  For purposes of this Section 3.8, “Change in Control” shall mean the occurrence of any of the following:

 

(i)            any person or “group” (within the meaning of Section 13(d)(3) of the 1934 Act) (as to (A) below other than Genco or its subsidiaries other than the Company and its subsidiaries or Peter C. Georgiopoulos) acquiring “beneficial ownership” (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of (A) thirty percent (30%) or more of the aggregate voting power of the capital stock ordinarily entitled to elect directors of the Company within a 12-month period or fifty percent (50%) or more of the aggregate voting power or of the shares of the capital stock ordinarily entitled to elect directors of the Company or (B) eighty percent (80%) or more of the shares of the capital stock ordinarily entitled to elect directors of the Company;

 

(ii)            the sale of (A) all or substantially all of the Company’s assets or (B) 80% or more of the Company’s assets,  in either case on a consolidated basis and in one or more related transactions within a 12-month period to a person other than such a sale to (x) a subsidiary of the Company which does not involve a change in the equity holdings of the Company or as to (A) only (y) an entity which Genco or its subsidiaries other than the Company and its subsidiaries or Peter C. Georgiopoulos directly or indirectly controls; or

(iii)             any merger, consolidation, reorganization or similar event of the Company or any of its subsidiaries, as a result of which the holders of the voting stock of the Company immediately prior to such merger, consolidation, reorganization or similar event do not directly or indirectly hold at least fifty-one percent (51%) of the aggregate voting power of the capital stock of the surviving entity.

Notwithstanding the foregoing, for each award subject to Section 409A of the Code, a Change in Control shall be deemed to occur under this Plan with respect to such Award only if a change in the ownership or effective control of the Company or a change in the ownership of a substantial portion of the assets of the Company shall also be deemed to have occurred under Section 409A of the Code.

(b)            Effect of a Change in Control.  Unless the Administrator provides otherwise in an Award Agreement, upon the occurrence of a Change in Control:

 

(i)            notwithstanding any other provision of this Plan, any award then outstanding shall become fully vested and any award in the form of an option or stock appreciation right shall be immediately exercisable;

 

(ii)            to the extent permitted by law, the Administrator may, in its sole discretion, amend any Award Agreement in such manner as it deems appropriate;

 

(iii)            a grantee whose employment terminates for any reason, other than for cause, concurrent with or within one year following the Change in Control, may exercise any outstanding option or stock appreciation right, but only to the extent that the grantee was entitled to exercise the award on his termination of employment date, until the earlier of (A) the original expiration date of the award and (B) the later of (x) the date provided for under the terms of Section 2.5 without reference to this Section 3.8(b)(iii) and (y) the first anniversary of the grantee’s termination of employment.

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(c)            Miscellaneous.  Whenever deemed appropriate by the Administrator, any action referred to in paragraph (b)(ii) of this Section 3.8 may be made conditional upon the consummation of the applicable Change in Control transaction.

		3.9	Right of Discharge Reserved

Nothing in the Plan or in any Award Agreement shall confer upon any grantee the right to continue his employment with the Company or affect any right that the Company may have to terminate such employment.

		3.10	Non-Uniform Determinations

The Administrator’s determinations under the Plan need not be uniform and may be made by it selectively among persons who receive, or who are eligible to receive, awards under the Plan (whether or not such persons are similarly situated).  Without limiting the generality of the foregoing, the Administrator shall be entitled, among other things, to make non-uniform and selective determinations, and to enter into non-uniform and selective Award Agreements, as to (a) the persons to receive awards under the Plan, and (b) the terms and provisions of awards under the Plan.

		3.11	Other Payments or Awards

Nothing contained in the Plan shall be deemed in any way to limit or restrict the Company from making any award or payment to any person under any other plan, arrangement or understanding, whether now existing or hereafter in effect.

		3.12	Headings

Any section, subsection, paragraph or other subdivision headings contained herein are for the purpose of convenience only and are not intended to expand, limit or otherwise define the contents of such subdivisions.

		3.13	Effective Date and Term of Plan

(a)            Adoption; Stockholder Approval.  The Plan initially was adopted by the Board of Directors and was approved by the Company’s stockholders with respect to 2,000,000 shares of Common Stock on March 3, 2010.  The Plan was amended and restated effective December 19, 2013. On March 13, 2014, the Board approved a further amendment and restatement of the Plan to authorize the issuance of an additional 4,000,000 shares of Common Stock pursuant to awards under the Plan, subject to shareholder approval.

(b)            Termination of Plan.  Unless sooner terminated by the Board of Directors, (i) the provisions of the Plan respecting the grant of incentive stock options with respect to the initial 2,000,000 shares authorized by the Board on March 3, 2010 shall terminate on March 3, 2020 and (ii) the provisions of the Plan respecting the grant of incentive stock options with respect to the additional 4,000,000 shares authorized by the Board on March 13, 2014 shall terminate on  March 13, 2024, and no incentive stock option awards shall thereafter be made under the Plan after such dates.  All such awards made under the Plan prior to its termination shall remain in effect until such awards have been satisfied or terminated in accordance with the terms and provisions of the Plan and the applicable Award Agreements.

		3.14	Restriction on Issuance of Stock Pursuant to Awards

The Company shall not permit any shares of Common Stock to be issued pursuant to Awards granted under the Plan unless such shares of Common Stock are fully paid and non-assessable under applicable law.

		3.15	Governing Law

Except to the extent preempted by any applicable federal law, the Plan will be construed and administered in accordance with the laws of the State of New York, without giving effect to principles of conflict of laws.

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		3.16	Compliance with Section 409A of the Code

Notwithstanding anything to the contrary contained in the Plan or in any Agreement, to the extent that the Administrator determines that the Plan or any Award is subject to Section 409A of the Code and fails to comply with the requirements of Section 409A of the Code, the Administrator reserves the right to amend or terminate the Plan and/or amend, restructure, terminate or replace the Award in order to cause the Award to either not be subject to Section 409A of the Code or to comply with the applicable provisions of such section.

 

 

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