Document:

SHARE EXCHANGE AGREEMENT

 

THIS SHARE EXCHANGE
AGREEMENT (the “Agreement”) is made this 4th day of February, 2013 by and among, Propell Technologies Group,
Inc., a Delaware corporation (“Propell”) on one hand, and the shareholders of Novas Energy (USA), Inc., a Delaware
corporation (the “Company”), as set forth on the signature pages attached hereto (collectively, the “Selling
Shareholders”), on the other hand.

 

BACKGROUND

 

A. The Board of Directors
of Propell and the Selling Shareholders have determined that an acquisition of the Company’s outstanding shares by Propell
through a voluntary share exchange with the Selling Shareholders (the “Exchange”), upon the terms and subject
to the conditions set forth in this Agreement, would be fair and in the best interests of their respective shareholders, and such
Board of Directors, along with the Selling Shareholders, have approved such Exchange, pursuant to which each share of capital
stock of the Company (the “Shares”) issued and outstanding immediately prior to the Closing Date (as defined
in Section 1.04) will be exchange for one share of common stock of Propell or an aggregate of 100,000,000 shares of common stock
of Propell (the “Exchange Shares”).

 

B. After
the Closing, the Selling Shareholders’ ownership interest in Propell shall represent approximately 56% of the
outstanding voting power of the Propell (40% of the issued and outstanding shares of Propell on a fully diluted basis after
taking into account all convertible stock and debt).

 

C. Propell and the
Selling Shareholders desire to make certain representations, warranties, covenants and agreements in connection with the Exchange
and also to prescribe various conditions to the Exchange.

 

D. For federal income
tax purposes, the parties intend that the Exchange shall qualify as reorganization under the provisions of Section 368(a)(1)(B)
of the Internal Revenue Code of 1986, as amended (the “Code”).

 

NOW, THEREFORE, in
consideration of the representations, warranties, covenants and agreements contained in this Agreement, the parties agree as follows:

 

ARTICLE I

 

THE EXCHANGE

 

1.01          Exchange.
Upon the terms and subject to the conditions set forth in this Agreement, and in accordance with the Delaware General Corporation
Law (“DGCL”), at the Closing (as hereinafter defined), the parties shall do the following:

 

    	 

    	 

    

  

(a)          The
Selling Shareholders will sell, convey, assign, and transfer the Shares to Propell by delivering to Propell stock certificates
or duly executed stock powers issued in the name of Propell evidencing the Shares (the “Share Certificate”).
The Shares transferred to Propell at the Closing shall constitute 100% of the issued and outstanding equity interests of the Company.

 

(b)          As
consideration for its acquisition of the Shares, Propell shall issue the Exchange Shares to the Selling Shareholders by delivering
share certificates to the Selling Shareholders registered in the name of the Selling Shareholders, or their nominees, evidencing
the Exchange Shares (the “Exchange Shares Certificates”) in such amounts attributable to the Selling Shareholders
as set forth on Exhibit A hereto.

 

(c)          For
federal income tax purposes, the Exchange is intended to constitute a “reorganization” within the meaning of
Section 368 of the Code, and the parties shall report the transactions contemplated by this Agreement consistent with such
intent and shall take no position in any tax filing or legal proceeding inconsistent therewith. The parties to this Agreement
hereby adopt this Agreement as a “plan of reorganization” within the meaning of Sections 1.368-2(g) and 1.368-3(a)
of the United States Treasury Regulations. None of Propell, the Company or the Selling Shareholders has taken or failed to take,
and after the Closing Date (as defined below), Propell shall not take or fail to take, any action which reasonably could be expected
to cause the Exchange to fail to qualify as a “reorganization” within the meaning of Section 368(a) of the Code.

 

1.02          Effect
of the Exchange. From and after the Closing, each Selling Shareholder shall cease to have any rights with respect to the
Shares. The current officers and directors of Propell shall remain as the officers and directors of Propell and after the Closing,
Propell shall cause to be taken all action necessary to elect or appoint the current directors of Propell as the directors of
the Company.

 

1.03          Closing.
Unless this Agreement shall have been terminated and the transactions herein contemplated shall have been abandoned pursuant to
Article VI and subject to the satisfaction or waiver of the conditions set forth in Article V, the closing of the Exchange (the
“Closing”) will take place at 10:00 a.m. U.S. Pacific Standard Time on the business day within 3 days of satisfaction
of the conditions set forth in Article V (or as soon as practicable thereafter following satisfaction or waiver of the conditions
set forth in Article V) (the “Closing Date”), at the offices of Gracin & Marlow, LLP, 405 Lexington Avenue,
New York, New York 10174, unless another date, time or place is agreed to in writing by the parties hereto.

 

1.04          Closing
Date of Exchange. As soon as practicable following the satisfaction or waiver of the conditions set forth in Article V,
the Exchange shall become effective (the “Closing Date”).

 

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ARTICLE II

 

REPRESENTATIONS AND WARRANTIES

 

2.01          Representations
and Warranties of the Selling Shareholders Related to the Company. Except as set forth in the disclosure schedule delivered
by the Selling Shareholders to Propell at the time of execution of this Agreement (the “Selling Shareholders Disclosure
Schedule”), the Selling Shareholders, jointly and severally, represent and warrant to Propell as follows:

 

(a)          Organization,
Standing and Power. The Company is duly organized, validly existing and in good standing under the laws of the State of Delaware
and has the requisite power and authority and all government licenses, authorizations, permits, consents and approvals required
to own, lease and operate its properties and carry on its business as now being conducted. The Company is duly qualified or licensed
to do business and is in good standing in each jurisdiction in which the nature of its business or the ownership or leasing of
its properties makes such qualification or licensing necessary, other than in such jurisdictions where the failure to be so qualified
or licensed (individually or in the aggregate) would not have a material adverse effect (as defined in Section 8.02).

 

(b)          Subsidiaries.
The Company does not own directly or indirectly, any equity or other ownership interest in any company, corporation, partnership,
joint venture or otherwise.

 

(c)          Capital
Structure. The number of shares and type of all authorized, issued and outstanding capital stock of the Company, and all shares
of capital stock reserved for issuance under the Company’s various option and incentive plans is specified on Schedule
2.01(c). Except as set forth in Schedule 2.01(c), no shares of capital stock or other equity securities of the Company
are issued, reserved for issuance or outstanding. All outstanding shares of capital stock of the Company are duly authorized,
validly issued, fully paid and nonassessable and not subject to preemptive rights. There are no outstanding bonds, debentures,
notes or other indebtedness or other securities of the Company having the right to vote (or convertible into, or exchangeable
for, securities having the right to vote) on any matters. There are no outstanding securities, options, warrants, calls, rights,
commitments, agreements, arrangements or undertakings of any kind to which the Company is a party or by which they are bound obligating
the Company to issue, deliver or sell, or cause to be issued, delivered or sold, additional shares of capital stock or other equity
or voting securities of the Company or obligating the Company to issue, grant, extend or enter into any such security, option,
warrant, call, right, commitment, agreement, arrangement or undertaking. There are no outstanding contractual obligations, commitments,
understandings or arrangements of the Company to repurchase, redeem or otherwise acquire or make any payment in respect of any
shares of capital stock of the Company. There are no agreements or arrangements pursuant to which the Company is or could be required
to register shares of Company common stock or other securities under the Securities Act of 1933, as amended and the rules and
regulations promulgated thereunder (the “Securities Act”) or other agreements or arrangements with or among
any security holders of the Company with respect to securities of the Company.

 

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(d)          Authority;
Noncontravention. Each Selling Shareholder has all requisite power and authority to enter into this Agreement and to consummate
the transactions contemplated by this Agreement. This Agreement has been duly executed and when delivered by the Selling Shareholders
shall constitute a valid and binding obligation of the Selling Shareholders, enforceable against each of the Selling Shareholders,
in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency or other similar laws affecting
the enforcement of creditors’ rights generally or by general principles of equity. The execution and delivery of this Agreement
do not, and the consummation of the transactions contemplated by this Agreement and compliance with the provisions hereof will
not, conflict with, or result in any breach or violation of, or default (with or without notice or lapse of time, or both) under,
or give rise to a right of termination, cancellation or acceleration of or “put” right with respect to any obligation
or to a loss of a material benefit under, or result in the creation of any lien upon any of the properties or assets of the Selling
Shareholders or the Company under, (i) the Company’s or any Selling Shareholder’s certificate or articles of incorporation,
bylaws or other organizational or charter documents of the Company; (ii) any loan or credit agreement, note, bond, mortgage, indenture,
lease or other agreement, instrument, permit, concession; franchise or license applicable to the Company, a Selling Shareholder
or its properties or assets, or (iii) any judgment, order, decree, statute, law, ordinance, rule, regulation or arbitration award
applicable to the Company, a Selling Shareholder, its properties or assets, other than, in the case of clauses (ii) and (iii),
any such conflicts, breaches, violations, defaults, rights, losses or liens that individually or in the aggregate could not have
a material adverse effect with respect to the Company or a Selling Shareholder, as applicable, or could not prevent, hinder or
materially delay the ability of the Selling Shareholders to consummate the transactions contemplated by this Agreement.

 

(e)          Governmental
Authorization. No consent, approval, order or authorization of, or registration, declaration or filing with, or notice to,
any United States court, administrative agency or commission, or other federal, state or local government or other governmental
authority, agency, domestic or foreign (a “Governmental Entity”), is required by or with respect to the Company
or a Selling Shareholder in connection with the execution and delivery of this Agreement by the Selling Shareholders or the consummation
by the Selling Shareholders of the transactions contemplated hereby, except, with respect to this Agreement, any filings under
the Securities Act or the Exchange Act.

 

(f)          Financial
Statements of the Company. Propell has received a copy of the unaudited financial statements of the Company for the 6 months
ended December 31, 2012 (the “Company Financial Statements”). The Company Financial Statements fairly
present the financial condition of the Company at the dates indicated and its results of operations and cash flows for the periods
then ended and, except as indicated therein, reflect all claims against, debts and liabilities of the Company, fixed or contingent,
and of whatever nature.

 

(i)          Since
December 31, 2012 (the “Company Balance Sheet Date”), there has been no material adverse change in the
assets or liabilities, or in the business or condition, financial or otherwise, or in the results of operations or prospects,
of the Company, whether as a result of any legislative or regulatory change, revocation of any license or rights to do business,
fire, explosion, accident, casualty, labor trouble, flood, drought, riot, storm, condemnation, act of God, public force or otherwise
and no material adverse change in the assets or liabilities, or in the business or condition, financial or otherwise, or in the
results of operation or prospects, of the Company except in the ordinary course of business.

 

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(ii)          Since
the Company Balance Sheet Date, the Company has not suffered any damage, destruction or loss of physical property (whether or
not covered by insurance) affecting its condition (financial or otherwise) or operations (present or prospective), nor has the
Company, except as disclosed in writing to Propell, issued, sold or otherwise disposed of, or agreed to issue, sell or otherwise
dispose of, any capital stock or any other security of the Company and has not granted or agreed to grant any option, warrant
or other right to subscribe for or to purchase any capital stock of any other security of the Company or has incurred or agreed
to incur any indebtedness for borrowed money.

 

(g)          Absence
of Certain Changes or Events. Since the Company Balance Sheet Date, the Company has conducted its business only in the ordinary
course consistent with past practice, and there is not and has not been any:

 

(i)          material
adverse change with respect to the Company;

 

(ii)          event
which, if it had taken place following the execution of this Agreement, would not have been permitted by Section 3.01 without
prior consent of Propell;

 

(iii)          condition,
event or occurrence which could reasonably be expected to prevent, hinder or materially delay the ability of the Selling Shareholders
to consummate the transactions contemplated by this Agreement;

 

(iv)          incurrence,
assumption or guarantee by the Company of any indebtedness for borrowed money other than in the ordinary course and in amounts
and on terms consistent with past practices or as disclosed to Propell in writing;

 

(v)          creation
or other incurrence by the Company of any lien on any asset other than in the ordinary course consistent with past practices;

 

(vi)          transaction
or commitment made, or any contract or agreement entered into, by the Company relating to its assets or business (including the
acquisition or disposition of any assets) or any relinquishment by the Company of any contract or other right, in either case,
material to the Company, other than transactions and commitments in the ordinary course consistent with past practices and those
contemplated by this Agreement;

 

(vii)          labor
dispute, other than routine, individual grievances, or, to the knowledge of the Company, any activity or proceeding by a labor
union or representative thereof to organize any employees of the Company or any lockouts, strikes, slowdowns, work stoppages or
threats by or with respect to such employees;

 

(viii)          payment,
prepayment or discharge of liability other than in the ordinary course of business or any failure to pay any liability when due;

 

(ix)          write-offs
or write-downs of any assets of the Company;

 

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(x)          creation,
termination or amendment of, or waiver of any right under, any material contract of the Company;

 

(xi)          damage,
destruction or loss having, or reasonably expected to have, a material adverse effect on the Company;

 

(xii)          other
condition, event or occurrence which individually or in the aggregate could reasonably be expected to have a material adverse
effect or give rise to a material adverse change with respect to the Company; or

 

(xiii)          agreement
or commitment to do any of the foregoing.

 

(h)          Certain
Fees. No brokerage or finder’s fees or commissions are or will be payable by the Company to any broker, financial advisor
or consultant, finder, placement agent, investment banker, bank or other person with respect to the transactions contemplated
by this Agreement.

 

(i)          Litigation;
Labor Matters; Compliance with Laws.

 

(i)          There
is no suit, action or proceeding or investigation pending or, to the knowledge of the Company, threatened against or affecting
the Company or any basis for any such suit, action, proceeding or investigation that, individually or in the aggregate, could
reasonably be expected to have a material adverse effect with respect to the Company or prevent, hinder or materially delay the
ability of the Selling Shareholders to consummate the transactions contemplated by this Agreement, nor is there any judgment,
decree, injunction, rule or order of any Governmental Entity or arbitrator outstanding against the Company having, or which, insofar
as reasonably could be foreseen by the Company, in the future could have, any such effect.

 

(ii)          The
Company is not a party to, or bound by, any collective bargaining agreement, contract or other agreement or understanding with
a labor union or labor organization, nor is it the subject of any proceeding asserting that it has committed an unfair labor practice
or seeking to compel it to bargain with any labor organization as to wages or conditions of employment nor is there any strike,
work stoppage or other labor dispute involving it pending or, to its knowledge, threatened, any of which could have a material
adverse effect with respect to Company.

 

(iii)          The
conduct of the business of the Company complies with all statutes, laws, regulations, ordinances, rules, judgments, orders, decrees
or arbitration awards applicable thereto.

 

(j)          Benefit
Plans. The Company is not a party to any Benefit Plan under which the Company currently has an obligation to provide benefits
to any current or former employee, officer or director of the Company. As used herein, “Benefit Plan” shall
mean any employee benefit plan, program, or arrangement of any kind, including any defined benefit or defined contribution plan,
stock ownership plan, executive compensation program or arrangement, bonus plan, incentive compensation plan or arrangement, profit
sharing plan or arrangement, deferred compensation plan, agreement or arrangement, supplemental retirement plan or arrangement,
vacation pay, sickness, disability, or death benefit plan (whether provided through insurance, on a funded or unfunded basis,
or otherwise), medical or life insurance plan providing benefits to employees, retirees, or former employees or any of their dependents,
survivors, or beneficiaries, severance pay, termination, salary continuation, or employee assistance plan.

 

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(k)          Certain
Employee Payments. The Company is not a party to any employment agreement which could result in the payment to any current,
former or future director or employee of the Company of any money or other property or rights or accelerate or provide any other
rights or benefits to any such employee or director as a result of the transactions contemplated by this Agreement, whether or
not (i) such payment, acceleration or provision would constitute a “parachute payment” (within the meaning of Section
280G of the Code) or (ii) some other subsequent action or event would be required to cause such payment, acceleration or provision
to be triggered.

 

(l)          Properties
& Tangible Assets.

 

(i)          The
Company has valid land use rights for all real property that is material to its business and good, clear and marketable title
to all the tangible properties and tangible assets reflected in the latest balance sheet as being owned by the Company or acquired
after the date thereof which are, individually or in the aggregate, material to the Company’s business (except properties
sold or otherwise disposed of since the date thereof in the ordinary course of business), free and clear of all material liens,
encumbrances, claims, security interest, options and restrictions of any nature whatsoever. Any real property and facilities held
under lease by the Company is held by it under valid, subsisting and enforceable leases of which the Company is in compliance,
except as could not, individually or in the aggregate, have or reasonably be expected to result in a material adverse effect.

 

(ii)          The
Company has good and marketable title to, or in the case of leased property, a valid leasehold interest in, the office space,
computers, equipment and other material tangible assets which are material to its business. Except as set forth on Schedule
2.01(l), each such tangible asset is in all material respects in good operating condition and repair (subject to normal wear
and tear), is suitable for the purposes for which it presently is used, and, except as to leased assets, free and clear of any
and all security interests. The Company does not have any knowledge of any dispute or claim made by any other person concerning
such right, title and interest in such tangible assets.

 

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(m)          Intellectual
Property.

 

(i)          As
used in this Agreement, “Intellectual Property” means all right, title and interest in or relating to all intellectual
property of the Company, including intellectual property related to the Company’s technology for production enhancement
of hydrocarbon deposits utilizing metallic plasma-generated, directed , nonlinear wide-band and elastic oscillations at resonance
frequencies (the “Production Enhancement Technology”), whether protected, created or arising under the laws
of the United States or any other jurisdiction or under any international convention, including, but not limited to the following:
(a) service marks, trademarks, trade names, trade dress, logos and corporate names (and any derivations, modifications or adaptations
thereof), Internet domain names and Internet websites (and content thereof), together with the goodwill associated with any of
the foregoing, and all applications, registrations, renewals and extensions thereof (collectively, “Marks”)
related to the Production Enhancement Technology; (b) patents and patent applications, including all continuations, divisionals,
continuations-in-part and provisionals and patents issuing thereon, and all reissues, reexaminations, substitutions, renewals
and extensions thereof with respect to related to the Production Enhancement Technology (collectively, “Patents”);
(c) copyrights, works of authorship and moral rights, and all registrations, applications, renewals, extensions and reversions
thereof (collectively, “Copyrights”); (d) confidential and proprietary information, trade secrets and non-public
discoveries, concepts, ideas, research and development, technology, know-how, formulae, inventions (whether or not patentable
and whether or not reduced to practice), compositions, processes, techniques, technical data and information, procedures, designs,
drawings, specifications, databases, customer lists, supplier lists, pricing and cost information, and business and marketing
plans and proposals, in each case excluding any rights in respect of any of the foregoing that comprise or are protected by Patents
(collectively, “Trade Secrets”); and (e) Technology. For purposes of this Agreement, “Technology”
means all Software, information, designs, formulae, algorithms, procedures, methods, techniques, ideas, know-how, research and
development, technical data, programs, subroutines, tools, materials, specifications, processes, inventions (whether or not patentable
and whether or not reduced to practice), apparatus, creations, improvements and other similar materials, and all recordings, graphs,
drawings, reports, analyses, and other writings, and other embodiments of any of the foregoing, in any form or media whether or
not specifically listed herein. Further, for purposes of this Agreement, “Software” means any and all computer
programs, whether in source code or object code; databases and compilations, whether machine readable or otherwise; descriptions,
flow-charts and other work product used to design, plan, organize and develop any of the foregoing; and all documentation, including
user manuals and other training documentation, related to any of the foregoing.

 

(ii)          Schedule
2.01(m) sets forth a list and description of the Intellectual Property of the Company to be used or held for use by the Company,
in the operation of its business, including, but not limited to (a) all issued Patents and pending Patent applications, registered
Marks, pending applications for registration of Marks, unregistered Marks, registered Copyrights of the Company and the record
owner, registration or application date, serial or registration number, and jurisdiction of such registration or application of
each such item of Intellectual Property; (b) all Software developed by or for the Company; and (c) any Software not exclusively
owned by the Company and incorporated, embedded or bundled with any Software listed in clause (b) above (except for commercially
available software and so-called “shrink wrap” software licensed to the Company on reasonable terms through commercial
distributors or in consumer retail stores for a license fee of no more than $10,000).

 

(iii)          The
Company is the exclusive owner of or has a valid and enforceable right to use all Intellectual Property listed for the Company
in Schedule 2.01(m) (and any other Intellectual Property required to be listed in Schedule 2.01(m)) as the same
are used, sold, licensed and otherwise commercially exploited by the Company, free and clear of all liens, security interests,
encumbrances or any other obligations to others, and no such Intellectual Property has been abandoned. The Intellectual Property
owned by the Company include all of the Intellectual Property necessary and sufficient to enable the Company to conduct its business
in the manner in which such business is planned to be conducted. The Intellectual Property owned by the Company and its rights
in and to such Intellectual Property are valid and enforceable. The Company has not granted and will not grant any third party
any license or other right under any Intellectual Property. The pending patent application listed on Schedule 2.01(m) are
currently pending at the United States Patent and Trademark Office and all required filings related thereto have been obtained.

 

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(iv)          The
Company has not received, and is not aware of, any written or oral notice of any reasonable basis for an allegation against the
Company of any infringement, misappropriation, or violation by the Company of any rights of any third party with respect to any
Intellectual Property, and the Company is not aware of any reasonable basis for any claim challenging the ownership, use, validity
or enforceability of any Intellectual Property owned, used or held for use by the Company. The Company does not have any knowledge
(a) of any third-party use of any Intellectual Property owned by or exclusively licensed to the Company; (b) that any third-party
has a right to use any such Intellectual Property; or (c) that any third party is infringing, misappropriating, or otherwise violating
(or has infringed, misappropriated or violated) any such Intellectual Property. The Company has no present or future known obligation
or requirement to compensate any person with respect to the Intellectual Property, whether by payment of royalties or not, whether
by reason of the ownership, use, license, lease, sale or any commercial use or any disposition of the Intellectual Property. None
of the present of former employees of the Company owned directly or indirectly or have any other right or interest in the Intellectual
Property.

 

(v)          The
Company has not infringed, misappropriated or otherwise violated any Intellectual Property rights of any third parties, and the
Company is not aware of any infringement, misappropriation or violation of any third party rights which will occur as a result
of the continued operation of the Company as presently operated and/or the consummation of the transaction contemplated by this
Agreement.

 

(vi)          The
Company has taken adequate security measures to protect the confidentiality and value of its Trade Secrets (and any confidential
information owned by a third party to whom the Company has a confidentiality obligation).

 

(vii)          The
consummation of the transactions contemplated by this Agreement will not adversely affect the right of the Company to own or use
any Intellectual Property owned, used or held for use by it.

 

(viii)          All
necessary registration, maintenance, renewal and other relevant filing fees in connection with any of the Intellectual Property
owned by the Company and listed (or required to be listed) on Schedule 2.01(m) have been timely paid and all necessary
registrations, documents, certificates and other relevant filings in connection with such Intellectual Property have been timely
filed with the relevant governmental authorities in the United States or foreign jurisdictions, as the case may be, for the purpose
of maintaining such Intellectual Property and all issuances, registrations and applications therefor. There are no annuities,
payments, fees, responses to office actions or other filings necessary to be made and having a due date with respect to any such
Intellectual Property within 90 days after the date of this Agreement.

 

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(n)          Undisclosed
Liabilities. The Company has no liabilities or obligations of any nature (whether fixed or unfixed, secured or unsecured,
known or unknown and whether absolute, accrued, contingent, or otherwise) except for liabilities or obligations reflected or reserved
against in the Company Financial Statements incurred in the ordinary course of business and except for $500,000 owed to Anuta
Limited for costs accumulated to consummate the transaction.

 

(o)          Ownership
of Stock. The Selling Shareholders own all of the issued and outstanding shares of capital stock of the Company, free and
clear of all liens, claims, rights, charges, encumbrances, and security interests of whatsoever nature or type and upon transfer
to the Company such shares will be free and clear of all liens, claims, rights, charges, encumbrances, and security interests
of whatsoever nature or type.

 

(q)          Material
Agreements.

 

(i)          Schedule
2.01(q) lists the following contracts and other agreements (“Material Agreements”) to which either the
Company or the Selling Shareholders are a party: (a) any agreement (or group of related agreements) for the lease of real or personal
property, including capital leases, to or from any person providing for annual lease payments in excess of $25,000; (b) any licensing
agreement, or any agreement forming a partnership, strategic alliances, profit sharing or joint venture; (c) any agreement (or
group of related agreements) under which it has created, incurred, assumed, or guaranteed any indebtedness for borrowed money
in excess of $25,000, or under which a security interest has been imposed on any of its assets, tangible or intangible; (d) any
profit sharing, stock option, stock purchase, stock appreciation, deferred compensation, severance, or other material plan or
arrangement for the benefit of its current or former officers and managers or any of the Company’s employees; (e) any employment
or independent contractor agreement providing annual compensation in excess of $25,000 or providing post-termination or severance
payments or benefits or that cannot be cancelled without more than 30 days notice; (f) any agreement with any current or former
officer, director, shareholder or affiliate of the Company; (g) any agreements relating to the acquisition (by merger, purchase
of stock or assets or otherwise) by the Company of any operating business or material assets or the capital stock of any other
person; (h) any agreements for the sale of any of the assets of the Company, other than in the ordinary course of business; (i)
any outstanding agreements of guaranty, surety or indemnification, direct or indirect, by the Company; (j) any royalty agreements,
licenses or other agreements relating to Intellectual Property (excluding licenses pertaining to “off-the-shelf” commercially
available software used pursuant to shrink-wrap or click-through license agreements on reasonable terms for a license fee of no
more than $10,000); and (k) any other agreement under which the consequences of a default or termination could reasonably be expected
to have a material adverse effect on the Company.

 

(ii)          The
Company has made available to Propell either an original or a correct and complete copy of each written Material Agreement. Except
as set forth on Schedule 2.01(q), with respect to each Material Agreement to which the Company or the Selling Shareholders
are a party thereto: (a) the agreement is the legal, valid, binding, enforceable obligation of the Company or any of the Selling
Shareholders and is in full force and effect in all material respects, subject to bankruptcy and equitable remedies exceptions;
(b)(X) neither the Company nor the Selling Shareholders party thereto is in material breach or default thereof, (Y) no event has
occurred which, with notice or lapse of time, would constitute a material breach or default of, or permit termination, modification,
or acceleration under, the Material Agreement; or (Z) the Company has not received any notice or has any knowledge that any other
party is, in default in any respect under any Material Agreement; and (c) neither the Company nor the Selling Shareholders have
repudiated any material provision of the agreement.

 

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(r)          Material
Contract Defaults. The Company is not, or has not, received any notice or has any knowledge that any other party is, in default
in any respect under any Company Material Contract; and there has not occurred any event that with the lapse of time or the giving
of notice or both would constitute such a material default. For purposes of this Agreement, a “Company Material Contract”
means any contract, agreement or commitment that is effective as of the Closing Date to which the Company or the Selling Shareholders
are a party (i) with expected receipts or expenditures in excess of $25,000; (ii) requiring the Company or the Selling Shareholders
to indemnify any person; (iii) granting exclusive rights to any party; (iv) evidencing indebtedness for borrowed or loaned money
in excess of $25,000 or more, including guarantees of such indebtedness; or (v) which, if breached by the Company or the Selling
Shareholders in such a manner would (A) permit any other party to cancel or terminate the same (with or without notice of passage
of time) or (B) provide a basis for any other party to claim money damages (either individually or in the aggregate with all other
such claims under that contract) from the Company or the Selling Shareholders or (C) give rise to a right of acceleration of any
material obligation or loss of any material benefit under any such contract, agreement or commitment.

 

(s)          Tax
Returns and Tax Payments.

 

(i)          The
Company has timely filed with the appropriate taxing authorities all Tax Returns required to be filed by it (taking into account
all applicable extensions). All such Tax Returns are true, correct and complete in all respects. All Taxes due and owing by the
Company have been paid (whether or not shown on any Tax Return and whether or not any Tax Return was required). The unpaid Taxes
of the Company did not, as of the Company Balance Sheet Date, exceed the reserve for Tax liability (excluding any reserve for
deferred Taxes established to reflect timing differences between book and Tax income) set forth on the face of the Company Financial
Statements (rather than in any notes thereto). Since the Balance Sheet Date, the Company has not incurred any liability for Taxes
outside the ordinary course of business consistent with past custom and practice. As of the Closing Date, the unpaid Taxes of
the Company will not exceed the reserve for Tax liability (excluding any reserve for deferred Taxes established to reflect timing
differences between book and Tax income) set forth on the books and records of the Company.

 

(ii)          No
material claim for unpaid Taxes has been made or become a lien against the property of the Company or is being asserted against
the Company, and no extension of the statute of limitations on the assessment of any Taxes has been granted to the Company and
is currently in effect.

 

    	11

    	 

    

(iii)          As
used herein, “Taxes” shall mean all taxes of any kind, including, without limitation, those on or measured
by or referred to as income, gross receipts, sales, use, ad valorem, franchise, profits, license, withholding, payroll, employment,
excise, severance, stamp, occupation, premium value added, property or windfall profits taxes, customs, duties or similar fees,
assessments or charges of any kind whatsoever, together with any interest and any penalties, additions to tax or additional amounts
imposed by any governmental authority, domestic or foreign. As used herein, “Tax Return” shall mean any return,
report or statement required to be filed with any governmental authority with respect to Taxes.

 

(t)          Environmental
Matters. The Company is in compliance with all Environmental Laws in all material respects. The Company holds all permits
and authorizations required under applicable Environmental Laws, unless the failure to hold such permits and authorizations would
not have a material adverse effect on the Company and is compliance with all terms, conditions and provisions of all such permits
and authorizations in all material respects. No releases of Hazardous Materials have occurred at, from, in, to, on or under any
real property currently or formerly owned, operated or leased by the Company or any predecessor thereof and no Hazardous Materials
are present in, on, about or migrating to or from any such property which could result in any liability to the Company. The Company
has not transported or arranged for the treatment, storage, handling, disposal, or transportation of any Hazardous Material to
any off-site location which could result in any liability to the Company. The Company has no liability, absolute or contingent,
under any Environmental Law that if enforced or collected would have a material adverse effect on the Company. “Environmental
Laws” means all applicable foreign, federal, state and local statutes, rules, regulations, ordinances, orders, decrees
and common law relating in any manner to contamination, pollution or protection of human health or the environment, and similar
state laws. “Hazardous Material” means any toxic, radioactive, corrosive or otherwise hazardous substance,
including petroleum, its derivatives, by-products and other hydrocarbons, or any substance having any constituent elements displaying
any of the foregoing characteristics, which in any event is regulated under any Environmental Law.

 

(u)          Accounts
Receivable. All of the accounts receivable of the Company that are reflected in the Company Financial Statements or the accounting
records of the Company as of the Closing Date (collectively, the “Company Accounts Receivable”) represent
or will represent valid obligations arising from sales actually made or services actually performed in the ordinary course of
business and are not subject to any defenses, counterclaims, or rights of set off other than those arising in the ordinary course
of business and for which adequate reserves have been established. The Company Accounts Receivable are fully collectible to the
extent not reserved for on the balance sheet on which they are shown.

 

(v)          Full
Disclosure. All of the representations and warranties made by the Company in this Agreement, and all statements set forth
in the certificates delivered by the Company at the Closing pursuant to this Agreement, are true, correct and complete in all
material respects and do not contain any untrue statement of a material fact or omit to state any material fact necessary in order
to make such representations, warranties or statements, in light of the circumstances under which they were made, misleading.
The copies of all documents furnished by the Company pursuant to the terms of this Agreement are complete and accurate copies
of the original documents. The schedules, certificates, and any and all other statements and information, whether furnished in
written or electronic form, to Propell or its representatives by or on behalf of any of the Company or its affiliates in connection
with the negotiation of this Agreement and the transactions contemplated hereby do not contain any material misstatement of fact
or omit to state a material fact or any fact necessary to make the statements contained therein not misleading.

 

    	12

    	 

    

 

 

2.02          Representations
and Warranties of Propell. Except as set forth in the disclosure schedule delivered by Propell to the Selling Shareholders
at the time of execution of this Agreement (the “Propell Disclosure Schedule”), Propell represents and warrants
to the Selling Shareholders as follows:

 

(a)          Organization,
Standing and Corporate Power. Propell is duly organized, validly existing and in good standing under the laws of the State
of Delaware and has the requisite corporate power and authority and all government licenses, authorizations, permits, consents
and approvals required to own, lease and operate its properties and carry on its business as now being conducted. Propell is duly
qualified or licensed to do business and is in good standing in each jurisdiction in which the nature of its business or the ownership
or leasing of its properties makes such qualification or licensing necessary, other than in such jurisdictions where the failure
to be so qualified or licensed (individually or in the aggregate) would not have a material adverse effect with respect to Propell.
Shares of common stock of Propell, par value $0.001 (“Propell Common Stock”), are listed on the OTCQB under
the symbol “PROP.”

 

(b)          Subsidiaries.
Propell does not own directly or indirectly, any equity or other ownership interest in any company, corporation, partnership,
joint venture or otherwise other than as set forth in the Propell SEC Documents (as defined herein).

 

(c)          Capital
Structure of Propell. As of the date of this Agreement, the authorized capital stock of Propell consists of 500,000,000 shares
of Propell Common Stock, $0.001 par value and 10,000,000 shares of Propell Preferred Stock, $.001 par value, of which approximately
27,245,371 shares of Propell Common Stock are issued and outstanding and no shares of Propell Common Stock are issuable upon the
exercise of warrants or options except as set forth in the Propell SEC Documents (as defined herein)
and 5,000,000 shares of Propell Preferred Stock are designated as Series A Preferred Stock, all of which are issued and outstanding.
Except as set forth above, no shares of capital stock or other equity securities of Propell are issued, reserved for issuance
or outstanding. All shares which may be issued pursuant to this Agreement will be, when issued, duly authorized, validly issued,
fully paid and nonassessable, not subject to preemptive rights, and issued in compliance with all applicable state and federal
laws concerning the issuance of securities.

 

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(d)          Corporate
Authority; Noncontravention. Propell has all requisite corporate and other power and authority to enter into this Agreement
and to consummate the transactions contemplated by this Agreement. The execution and delivery of this Agreement by Propell and
the consummation by Propell of the transactions contemplated hereby have been (or at Closing will have been) duly authorized by
all necessary corporate action on the part of Propell. This Agreement has been duly executed and when delivered by Propell shall
constitute a valid and binding obligation of Propell, enforceable against Propell in accordance with its terms, except as such
enforcement may be limited by bankruptcy, insolvency or other similar laws affecting the enforcement of creditors’ rights
generally or by general principles of equity. The execution and delivery of this Agreement do not, and the consummation of the
transactions contemplated by this Agreement and compliance with the provisions hereof will not, conflict with, or result in any
breach or violation of, or default (with or without notice or lapse of time, or both) under, or give rise to a right of termination,
cancellation or acceleration of or “put” right with respect to any obligation or to loss of a material benefit under,
or result in the creation of any lien upon any of the properties or assets of Propell under, (i) its articles of incorporation,
bylaws, or other charter documents of Propell; (ii) any loan or credit agreement, note, bond, mortgage, indenture, lease or other
agreement, instrument, permit, concession, franchise or license applicable to Propell, its properties or assets; or (iii) subject
to the governmental filings and other matters referred to in the following sentence, any judgment, order, decree, statute, law,
ordinance, rule, regulation or arbitration award applicable to Propell, its properties or assets, other than, in the case of clauses
(ii) and (iii), any such conflicts, breaches, violations, defaults, rights, losses or liens that individually or in the aggregate
could not have a material adverse effect with respect to Propell or could not prevent, hinder or materially delay the ability
of Propell to consummate the transactions contemplated by this Agreement.

 

(e)          Government
Authorization. No consent, approval, order or authorization of, or registration, declaration or filing with, or notice to,
any Governmental Entity, is required by or with respect to Propell in connection with the execution and delivery of this Agreement
by Propell, or the consummation by Propell of the transactions contemplated hereby, except, with respect to this Agreement, any
filings under the Delaware Law of Corporations, the Securities Act or the Exchange Act.

 

(f)          Financial
Statements. The financial statements of Propell included in the reports, schedules, forms, statements and other documents
filed by Propell with the Securities and Exchange Commission (“SEC”) (collectively, and in each case including
all exhibits and schedules thereto and documents incorporated by reference therein, the “Propell SEC Documents”),
comply as to form in all material respects with applicable accounting requirements and the published rules and regulations of
the SEC with respect thereto, have been prepared in accordance with U.S. generally accepted accounting principles (except, in
the case of unaudited quarterly statements, as permitted by Form 10-Q of the SEC) applied on a consistent basis during the periods
involved (except as may be indicated in the notes thereto) and fairly present the financial position of Propell as of the dates
thereof and the results of operations and changes in cash flows for the periods then ended (subject, in the case of unaudited
quarterly statements, to normal year-end audit adjustments as determined by Propell’s independent accountants). Except as
set forth in the Propell SEC Documents, at the date of the most recent audited financial statements of Propell included in the
Propell SEC Documents, Propell has not incurred any liabilities or obligations of any nature (whether accrued, absolute, contingent
or otherwise) which, individually or in the aggregate, could reasonably be expected to have a material adverse effect with respect
to Propell.

 

(g)          Absence
of Certain Changes or Events. Except as disclosed in the Propell SEC Documents, since the date of the most recent financial
statements included in the Propell SEC Documents, Propell has conducted its business only in the ordinary course consistent with
past practice in light of its current business circumstances, and there is not and has not been any:

 

(i)          material
adverse change with respect to Propell;

 

    	14

    	 

    

 

 

(ii)          event
which, if it had taken place following the execution of this Agreement, would not have been permitted by Section 3.01 without
prior consent of the Company;

 

(iii)          condition,
event or occurrence which could reasonably be expected to prevent, hinder or materially delay the ability of Propell to consummate
the transactions contemplated by this Agreement;

 

(iv)          incurrence,
assumption or guarantee by Propell of any indebtedness for borrowed money other than in the ordinary course and in amounts and
on terms consistent with past practices or as disclosed to the Company in writing;

 

(v)          creation
or other incurrence by Propell of any lien on any asset other than in the ordinary course consistent with past practices;

 

(vi)        transaction
or commitment made, or any contract or agreement entered into, by Propell relating to its assets or business (including the acquisition
or disposition of any assets) or any relinquishment by Propell of any contract or other right, in either case, material to Propell,
other than transactions and commitments in the ordinary course consistent with past practices and those contemplated by this Agreement;

 

(vii)          labor
dispute, other than routine, individual grievances, or, to the knowledge of Propell, any activity or proceeding by a labor union
or representative thereof to organize any employees of Propell or any lockouts, strikes, slowdowns, work stoppages or threats
by or with respect to such employees;

 

(viii)          payment,
prepayment or discharge of liability other than in the ordinary course of business or any failure to pay any liability when due;

 

(ix)          write-offs
or write-downs of any assets of Propell;

 

(x)          creation,
termination or amendment of, or waiver of any right under, any material contract of Propell;

 

(xi)          damage,
destruction or loss having, or reasonably expected to have, a material adverse effect on Propell;

 

(xii)          other
condition, event or occurrence which individually or in the aggregate could reasonably be expected to have a material adverse
effect or give rise to a material adverse change with respect to Propell; or

 

(xiii)          agreement
or commitment to do any of the foregoing.

 

(h)          Certain
Fees. No brokerage or finder’s fees or commissions are or will be payable by Propell to any broker, financial advisor
or consultant, finder, placement agent, investment banker, bank or other person with respect to the transactions contemplated
by this Agreement.

 

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(i)          Litigation;
Labor Matters; Compliance with Laws.

 

(i)          There
is no suit, action or proceeding or investigation pending or, to the knowledge of Propell, threatened against or affecting Propell
or any basis for any such suit, action, proceeding or investigation that, individually or in the aggregate, could reasonably be
expected to have a material adverse effect with respect to Propell or prevent, hinder or materially delay the ability of Propell
to consummate the transactions contemplated by this Agreement, nor is there any judgment, decree, injunction, rule or order of
any Governmental Entity or arbitrator outstanding against Propell having, or which, insofar as reasonably could be foreseen by
Propell, in the future could have, any such effect.

 

(ii)          Propell
is not a party to, or bound by, any collective bargaining agreement, contract or other agreement or understanding with a labor
union or labor organization, nor is it the subject of any proceeding asserting that it has committed an unfair labor practice
or seeking to compel it to bargain with any labor organization as to wages or conditions of employment nor is there any strike,
work stoppage or other labor dispute involving it pending or, to its knowledge, threatened, any of which could have a material
adverse effect with respect to Propell.

 

(iii)          The
conduct of the business of Propell complies with all statutes, laws, regulations, ordinances, rules, judgments, orders, decrees
or arbitration awards applicable thereto.

 

(j)          Benefit
Plans. Propell is not a party to any Benefit Plan under which Propell currently has an obligation to provide benefits to any
current or former employee, officer or director of Propell.

 

(k)          Certain
Employee Payments. Propell is not a party to any employment agreement which could result in the payment to any current, former
or future director or employee of Propell of any money or other property or rights or accelerate or provide any other rights or
benefits to any such employee or director as a result of the transactions contemplated by this Agreement, whether or not (i) such
payment, acceleration or provision would constitute a “parachute payment” (within the meaning of Section 280G of the
Code) or (ii) some other subsequent action or event would be required to cause such payment, acceleration or provision to be triggered.

 

(l)          Material
Contract Defaults. Propell is not, or has not, received any notice or has any knowledge that any other party is, in default
in any respect under any Propell Material Contract; and there has not occurred any event that with the lapse of time or the giving
of notice or both would constitute such a material default. For purposes of this Agreement, a “Propell Material Contract”
means any contract, agreement or commitment that is effective as of the Closing Date to which Propell is a party (i) with expected
receipts or expenditures in excess of $25,000; (ii) requiring Propell to indemnify any person; (iii) granting exclusive rights
to any party, (iv) evidencing indebtedness for borrowed or loaned money in excess of $25,000 or more, including guarantees of
such indebtedness; or (v) which, if breached by Propell in such a manner would (A) permit any other party to cancel or terminate
the same (with or without notice of passage of time) or (B) provide a basis for any other party to claim money damages (either
individually or in the aggregate with all other such claims under that contract) from Propell or (C) give rise to a right of acceleration
of any material obligation or loss of any material benefit under any such contract, agreement or commitment.

 

    	16

    	 

    

 

 

(m)          Properties.
Propell has valid land use rights for all real property that is material to its business and good, clear and marketable title
to all the tangible properties and tangible assets reflected in the latest balance sheet as being owned by Propell or acquired
after the date thereof which are, individually or in the aggregate, material to Propell’s business (except properties sold
or otherwise disposed of since the date thereof in the ordinary course of business), free and clear of all material liens, encumbrances,
claims, security interest, options and restrictions of any nature whatsoever. Any real property and facilities held under lease
by Propell are held by them under valid, subsisting and enforceable leases of which Propell is in compliance, except as could
not, individually or in the aggregate, have or reasonably be expected to result in a material adverse effect.

 

(n)          Intellectual
Property. Propell owns or has valid rights to use the Trademarks, trade names, domain names, copyrights, patents, logos, licenses
and computer software programs (including, without limitation, the source codes thereto) that are necessary for the conduct of
its business as now being conducted. All of Propell’s licenses to use Software programs are current and have been paid for
the appropriate number of users. To the knowledge of Propell, none of Propell’s Intellectual Property or Propell License
Agreements infringe upon the rights of any third party that may give rise to a cause of action or claim against Propell or its
successors. The term “Propell License Agreements” means any license agreements granting any right to use or
practice any rights under any Intellectual Property (except for such agreements for off-the-shelf products that are generally
available for less than $10,000), and any written settlements relating to any Intellectual Property, to which the Company is a
party or otherwise bound

 

(o)          Board
Determination. The Board of Directors of Propell has unanimously determined that the terms of the Exchange are fair to and
in the best interests of Propell and its shareholders.

 

(p)          Undisclosed
Liabilities. Propell has no liabilities or obligations of any nature (whether fixed or unfixed, secured or unsecured, known
or unknown and whether absolute, accrued, contingent, or otherwise) except for liabilities or obligations reflected or reserved
against in the Propell SEC Documents incurred in the ordinary course of business or those which are not material.

 

(q)          Full
Disclosure. All of the representations and warranties made by Propell in this Agreement, and all statements set forth in the
certificates delivered by Propell at the Closing pursuant to this Agreement, are true, correct and complete in all material respects
and do not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make such
representations, warranties or statements, in light of the circumstances under which they were made, misleading. The copies of
all documents furnished by Propell pursuant to the terms of this Agreement are complete and accurate copies of the original documents.
The schedules, certificates, and any and all other statements and information, whether furnished in written or electronic form,
to the Company or its representatives by or on behalf of Propell and the Propell Stockholders in connection with the negotiation
of this Agreement and the transactions contemplated hereby do not contain any material misstatement of fact or omit to state a
material fact or any fact necessary to make the statements contained therein not misleading.

 

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2.03          Representations
and Warranties of Selling Shareholders Related to the Shares and Exchange Shares. Each of the Selling Shareholders jointly
and severally represent and warrant to Propell as follows:

 

(a)          Ownership
of the Shares. It own all of the Shares, free and clear of all liens, claims, rights, charges, encumbrances, and security
interests of whatsoever nature or type. It has taken no action that would impair its ability to exchange the Shares.

 

(b)          Power
of Selling Shareholders to Execute Agreement. It has the full right, power, and authority to execute, deliver, and perform
this Agreement, and this Agreement is the legal binding obligation of it and is enforceable against it in accordance with its
terms, except that (i) such enforcement may be subject to bankruptcy, insolvency, reorganization, moratorium, or other similar
laws now or hereafter in effect relating to creditors’ rights and (ii) the remedy of specific performance and injunctive
and other forms of equitable relief may be subject to equitable defenses and to the discretion of the court before which any proceeding
therefore may be brought.

 

(c)          Agreement
Not in Breach of Other Instruments Affecting Selling Shareholders. The execution and delivery of this Agreement, the consummation
of the transactions hereby contemplated, and the fulfillment of the terms hereof will not result in the breach of any term or
provisions of, or constitute a default under, or conflict with, or cause the acceleration of any obligation under any agreement
or other instrument of any description to which it is a party or by which it is bound, or any judgment, decree, order, or award
of any court, governmental body, or arbitrator or any applicable law, rule, or regulation.

 

(d)          Accuracy
of Statements. Neither this Agreement nor any statement, list, certificate, or any other agreement executed in connection
with this Agreement or other information furnished or to be furnished by it to Propell in connection with this Agreement or any
of the transactions contemplated hereby contains or will contain an untrue statement of a material fact or omits or will omit
to state a material fact necessary to make the statements contained herein or therein, in light of circumstances in which they
are made, not misleading.

 

(e)          Valid
and Binding Obligation. This Agreement constitutes its valid and legally binding obligation, enforceable in accordance with
its terms.

 

(f)           Investment
Purpose. It is receiving the Exchange Shares in exchange for the Shares for its own account for investment purposes only and
not with a view to, or for the resale in connection with, any "distribution" thereof for purposes of the Securities
Act of 1933, as amended (the "Act").  It understands that the Exchange Shares have not been registered under
the Act or any applicable state securities laws by reason of a specific exemption therefrom that depends upon, among other things,
the bona fide nature of the investment intent as expressed herein.

 

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(g)           Provision
of Information. It has discussed with Propell its plans, operations and financial condition with its officers and has received
all such information as it deems necessary and appropriate to enable it to evaluate the financial risk inherent in making an investment
in the Exchange Shares.  It has received satisfactory and complete information concerning the business and financial condition
of Propell in response to its inquiries. It has reviewed Propell’s filings with the Securities and Exchange Commission.

 

(h)             Risk
in Investment. It realizes that the receipt of the Exchange Shares in the exchange will be a highly speculative investment.
It is able, without impairing its financial condition, to hold the Exchange Shares for an indefinite period of time and to suffer
a complete loss of its investment.  It recognizes that Propell has a limited financial and operating history and the investment
in Propell involves substantial risks.  It understands all of the risks related to the exchange of the Shares for the Exchange
Shares.  By virtue of its experience in evaluating and investing in private placement transactions of securities in companies
similar to Propell, it is capable of evaluating the merits and risks of its investment in Propell and has the capacity to protect
its own interests.

 

(i)             Transfer
of The Exchange Shares. It understands that the Exchange Shares must be held indefinitely unless subsequently registered under
the Act or unless an exemption from registration is otherwise available.  Moreover, it understands that Propell is under
no obligation to register the Exchange Shares.  It is aware of Rule 144 promulgated under the Act that permits limited resale
of securities purchased in a private placement subject to the satisfaction of certain conditions.  It understands that the
Exchange Shares will be imprinted with a legend which prohibits the transfer of the Exchange Shares unless they are registered
or such registration is not required in the opinion of counsel for Propell.

 

(j)             
Experience. It has substantial experience in evaluating and investing in securities of companies similar to Propell and
acknowledges that it can protect its own interests. It has such knowledge and experience in financial and business matters so
it is capable of evaluating the merits and risks of its investment in Propell.  It is an “accredited investors”
within the meaning of Regulation D, Rule 501(a), promulgated by the Securities and Exchange Commission under the Act.

 

(k)            
Accuracy of Statements. It confirms that the statements made in the Agreement are true on the date hereof, and acknowledges
that the statements made therein have been relied upon by Propell in making its offering to it.  It agrees to indemnify and
hold harmless Propell and its respective officers, directors and stockholders, from any and all damages, losses, costs and expenses(including
reasonable attorneys’ fees) that they may incur, by reason of any breach of any of the statements or representations made
by it contained  herein or therein.

 

(l)             Non-U.S.
It is outside of the United States when receiving and executing this Agreement and it is not a U.S. Person as defined in Rule
902 of Regulation S.

 

(m)          Reliance
on Exemptions. It understands that the Exchange Shares are being offered and sold to it in reliance on specific exemptions
from the registration requirements of United States federal and state securities laws and that Propell is relying in part upon
the truth and accuracy of, and its compliance with, the representations, warranties, agreements, acknowledgments and understandings
of it set forth herein in order to determine the availability of such exemptions and the eligibility of it to acquire the Exchange
Shares.

 

    	19

    	 

    

 

(n)           No
Governmental Review.  It understands that no United States federal or state agency or any other government or governmental
agency has passed on or made any recommendation or endorsement of the Exchange Shares or the fairness or suitability of the investment
in the Exchange Shares nor have such authorities passed upon or endorsed the merits of the offering of the Exchange Shares.

(o)          General
Solicitation. It is not acquiring the Exchange Shares as a result of any advertisement, article, notice or other communication
regarding the Exchange Shares published in any newspaper, magazine or similar media or broadcast over television or radio or presented
at any seminar or any other general solicitation or general advertisement.

 

(p)          No
Directed Selling Efforts. It has not acquired the Exchange Shares as a result of, and will not itself engage in, any “directed
selling efforts” (as defined in Regulation S) in the United States in respect of the Exchange Shares which would include
any activities undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market
in the United States for the resale of the Exchange Shares.

 

(q)          No
Plan or Scheme. It acknowledges that the statutory and regulatory basis for the exemption from U.S. registration requirements
claimed for the offer of the Exchange Shares although in technical compliance with Regulation S would not be available if the
offering is part of a plan or scheme to evade the registration provisions of the Act or any applicable state or provincial securities
laws.

 

(r)          Observance
of Local Laws. To the best of its knowledge, it is in compliance with the laws of its jurisdiction in connection with any
invitation to subscribe for the Exchange Shares or any use of this Agreement, including: (a) the legal requirements within its
jurisdiction for the purchase of the Exchange Shares; (b) any foreign exchange restrictions applicable to such purchase; (c) any
governmental or other consents that may need to be obtained; and (d) the income tax and other tax consequences, if any, that may
be relevant to the purchase, holding, redemption, sale or transfer of the Exchange Shares. Its beneficial ownership of the Exchange
Shares, will not violate any applicable securities or other laws of its jurisdiction.

 

ARTICLE III

 

COVENANTS RELATING TO CONDUCT OF
BUSINESS PRIOR TO EXCHANGE

 

3.01          Conduct
of the Company and Propell. From the date of this Agreement and until the Closing, or until the prior termination of this
Agreement, the Selling Shareholders and Propell shall not, unless mutually agreed to in writing:

 

(a)          engage
in any transaction, except in the normal and ordinary course of business, or create or suffer to exist any lien or other encumbrance
upon any of the assets of Propell or the Company which will not be discharged in full prior to the Closing;

 

    	20

    	 

    

 

 

(b)          sell,
assign or otherwise transfer any of the assets of Propell or the Company, or cancel or compromise any debts or claims relating
to the assets of Propell or the Company, other than for fair value, in the ordinary course of business, and consistent with past
practice;

 

(c)          fail
to use reasonable efforts to preserve intact the present business organizations of Propell or the Company, keep available the
services of the employees of Propell or the Company and preserve the material relationships of Propell or the Company with customers,
suppliers, licensors, licensees, distributors and others, to the end that the good will and ongoing business of Propell or the
Company not be impaired prior to the Closing;

 

(d)          except
for matters related to complaints by former employees related to wages, suffer or permit any material adverse change to occur
with respect to the Company and Propell or their business or assets; or

 

(e)          make
any material change with respect to the business of Propell or the Company in accounting or bookkeeping methods, principles or
practices, except as required by GAAP.

 

ARTICLE IV

 

ADDITIONAL AGREEMENTS

 

4.01          Access
to Information; Confidentiality

 

(a)          The
Selling Shareholders shall cause the Company to, and shall cause the Company’s officers, employees, counsel, financial advisors
and other representatives to, afford to Propell and its representatives reasonable access during normal business hours during
the period prior to the Closing to the Company’s properties, books, contracts, commitments, personnel and records and, during
such period, the Selling Shareholders shall cause the Company to cause its officers, employees and representatives to, furnish
promptly to Propell all information concerning the Company’s business, properties, financial condition, operations and personnel
as such other party may from time to time reasonably request. For the purposes of determining the accuracy of the representations
and warranties of Propell set forth herein and compliance by Propell of its obligations hereunder, during the period prior to
the Closing, Propell shall provide the Selling Shareholders and their representatives with reasonable access during normal business
hours to its properties, books, contracts, commitments, personnel and records as may be necessary to enable the Selling Shareholders
to confirm the accuracy of the representations and warranties of Propell set forth herein and compliance by Propell of its obligations
hereunder, and, during such period, Propell shall, and shall cause its officers, employees and representatives to, furnish promptly
to the Selling Shareholders upon any request (i) a copy of each report, schedule, registration statement and other document filed
by it during such period pursuant to the requirements of federal or state securities laws and (ii) all other information concerning
its business, properties, financial condition, operations and personnel as such other party may from time to time reasonably request.
Except as required by law, each of the Selling Shareholders and Propell will hold, and will cause its respective directors, officers,
employees, accountants, counsel, financial advisors and other representatives and affiliates to hold, any nonpublic information
in confidence.

 

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(b)          No
investigation pursuant to this Section 4.01 shall affect any representations or warranties of the parties herein or the conditions
to the obligations of the parties hereto.

 

4.02          Best
Efforts. Upon the terms and subject to the conditions set forth in this Agreement, each of the parties agrees to use its
best efforts to take, or cause to be taken, all actions, and to do, or cause to be done, and to assist and cooperate with the
other parties in doing, all things necessary, proper or advisable to consummate and make effective, in the most expeditious manner
practicable, the Exchange and the other transactions contemplated by this Agreement. Propell and the Selling Shareholders shall
mutually cooperate in order to facilitate the achievement of the benefits reasonably anticipated from the Exchange.

 

4.03          Public
Announcements. Propell, on the one hand, and the Selling Shareholders, on the other hand, will consult with each other
before issuing, and provide each other the opportunity to review and comment upon, any press release or other public statements
with respect to the transactions contemplated by this Agreement and shall not issue any such press release or make any such public
statement prior to such consultation, except as may be required by applicable law, securities regulation or court process. The
parties agree that the initial press release or releases to be issued with respect to the transactions contemplated by this Agreement
shall be mutually agreed upon prior to the issuance thereof.

 

4.04          Expenses.
All costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by Propell.

 

4.05          Post-Exchange
Capitalization. At the Closing, Propell will have 27,245,371 and 5,000,000 shares of Propell Common Stock and Preferred
Stock issued and outstanding. At the Closing, the Company will have 100,000,000 shares of Common Stock issued and outstanding,
and no options to purchase its Common Stock issued and outstanding.

 

4.06          Post-Closing
Delivery of the Exchange Shares Certificates & Warrant. Within 7 business days of the Closing Date, Propell shall
have taken all action necessary to have the Exchange Shares Certificates to the Selling Shareholders.

 

    	22

    	 

    

 

 

ARTICLE V

 

CONDITIONS PRECEDENT

 

5.01          Conditions
to Each Party’s Obligation to Effect the Exchange. The obligation of each party to effect the Exchange and otherwise
consummate the transactions contemplated by this Agreement is subject to the satisfaction, at or prior to the Closing, of each
of the following conditions:

 

(a)          No
Restraints. No temporary restraining order, preliminary or permanent injunction or other order preventing the consummation
of the Exchange shall have been issued by any court of competent jurisdiction or any other Governmental Entity having jurisdiction
and shall remain in effect, and there shall not be any applicable legal requirement enacted, adopted or deemed applicable to the
Exchange that makes consummation of the Exchange illegal.

 

(b)          Governmental
Approvals. All authorizations, consents, orders, declarations or approvals of, or filings with, or terminations or expirations
of waiting periods imposed by, any Governmental Entity having jurisdiction which the failure to obtain, make or occur would have
a material adverse effect on Propell or the Company shall have been obtained, made or occurred.

 

(c)          No
Litigation. There shall not be pending or threatened any suit, action or proceeding before any court, Governmental Entity
or authority (i) pertaining to the transactions contemplated by this Agreement or (ii) seeking to prohibit or limit the ownership
or operation by the Company, Propell or any of its subsidiaries, or to dispose of or hold separate any material portion of the
business or assets of the Company or Propell.

 

(d)          Company
Shareholders Approval. The Selling Shareholders shall have adopted and approved this Agreement and the Exchange in accordance
with applicable law.

 

5.02          Conditions
Precedent to Obligations of Propell. The obligation of Propell to effect the Exchange and otherwise consummate the transactions
contemplated by this Agreement are subject to the satisfaction, at or prior to the Closing, of each of the following conditions:

 

(a)          Representations,
Warranties and Covenants. The representations and warranties of the Selling Shareholders in this Agreement shall be true and
correct in all material respects (except for such representations and warranties that are qualified by their terms by a reference
to materiality or material adverse effect, which representations and warranties as so qualified shall be true and correct in all
respects) both when made and on and as of the Closing Date and (ii) the Selling Shareholders shall have performed and complied
in all material respects with all covenants, obligations and conditions of this Agreement required to be performed and complied
with by each of them prior to the Effective Time.

 

    	23

    	 

    

 

 

(b)          Consents.
Propell shall have received evidence, in form and substance reasonably satisfactory to it, that such licenses, permits, consents,
approvals, authorizations, qualifications and orders of governmental authorities and other third parties as necessary in connection
with the transactions contemplated hereby have been obtained.

 

(c)          No
Material Adverse Change. There shall not have occurred any change in the business, condition (financial or otherwise), results
of operations or assets (including intangible assets) and properties of the Company that, individually or in the aggregate, could
reasonably be expected to have a material adverse effect on the Company.

 

(e)          Delivery
of the Share Certificate. The Selling Shareholders shall have delivered the Share Certificate to Propell on the Closing Date.

 

(f)          Secretary’s
Certificate of the Company. Propell shall have received a true and complete copy of (A) the articles or certificate of incorporation
of the Company and all amendments thereto and (B) the bylaws of the Company and all amendments thereto.

 

(g)          Due
Diligence Investigation. Propell shall be reasonably satisfied with the results of its due diligence investigation of the
Company and the Selling Shareholders in its sole and absolute discretion.

 

5.03          Conditions
Precedent to Obligation of the Selling Shareholders. The obligations of the Selling Shareholders to effect the Exchange
and otherwise consummate the transactions contemplated by this Agreement is subject to the satisfaction, at or prior to the Closing,
of each of the following conditions:

 

(a)          Representations,
Warranties and Covenants. The representations and warranties of Propell in this Agreement shall be true and correct in all
material respects (except for such representations and warranties that are qualified by their terms by a reference to materiality
or material adverse effect, which representations and warranties as so qualified shall be true and correct in all respects) both
when made and on and as of the Closing Date and (ii) Propell shall have performed and complied in all material respects with all
covenants, obligations and conditions of this Agreement required to be performed and complied with by it prior to the Closing
Date.

 

(b)          Consents.
The Selling Shareholders shall have received evidence, in form and substance reasonably satisfactory to it, that such licenses,
permits, consents, approvals, authorizations, qualifications and orders of governmental authorities and other third parties as
necessary in connection with the transactions contemplated hereby have been obtained.

 

(c)          Officer’s
Certificate of Propell. The Selling Shareholders shall have received a certificate executed on behalf of Propell by an executive
officer of Propell, confirming that the conditions set forth in Sections 5.03(a) and 5.03(d) have been satisfied.

 

(d)          No
Material Adverse Change. There shall not have occurred any change in the business, condition (financial or otherwise), results
of operations or assets (including intangible assets) and properties of Propell that, individually or in the aggregate, could
reasonably be expected to have a material adverse effect on Propell.

 

    	24

    	 

    

 

 

(e)          Board
Resolutions. The Selling Shareholders shall have received resolutions duly adopted by Propell’s Board of Directors approving
the execution, delivery and performance of the Agreement and the transactions contemplated by the Agreement.

 

(f)          Due
Diligence Investigation. The Selling Shareholders shall be reasonably satisfied with the results of its due diligence investigation
of Propell in its sole and absolute discretion.

 

ARTICLE VI

 

TERMINATION, AMENDMENT AND WAIVER

 

6.01          Termination.
This Agreement may be terminated and abandoned at any time prior to the Closing Date:

 

(a)          by
mutual written consent of Propell and the Selling Shareholders;

 

(b)          by
either Propell or the Selling Shareholders if any Governmental Entity shall have issued an order, decree or ruling or taken any
other action permanently enjoining, restraining or otherwise prohibiting the Exchange and such order, decree, ruling or other
action shall have become final and nonappealable;

 

(c)          by
either Propell or the Selling Shareholders if the Exchange shall not have been consummated on or before March 31, 2013 (other
than as a result of the failure of the party seeking to terminate this Agreement to perform its obligations under this Agreement
required to be performed at or prior to the Closing Date);

 

(d)          by
Propell, if a material adverse change shall have occurred relative to the Company or Shares (and not curable within 30 days);

 

(e)          by
the Selling Shareholders if a material adverse change shall have occurred relative to Propell (and not curable within 30 days);

 

(f)          by
Propell, if the Selling Shareholders willfully fails to perform in any material respect any of its material obligations under
this Agreement; or

 

(g)          by
the Selling Shareholders, if Propell willfully fails to perform in any material respect any of its obligations under this Agreement.

 

6.02          Effect
of Termination. In the event of termination of this Agreement by either the Company or Propell as provided in Section
6.01, this Agreement shall forthwith become void and have no effect, without any liability or obligation on the part of Propell
or the Selling Shareholders, other than the provisions of the last sentence of Section 4.01(a) and this Section 6.02. Nothing
contained in this Section shall relieve any party for any breach of the representations, warranties, covenants or agreements set
forth in this Agreement.

 

    	25

    	 

    

 

 

6.03          Amendment.
This Agreement may not be amended except by an instrument in writing signed on behalf of each of the parties upon approval by
the party, if such party is an individual, and upon approval of the Boards of Directors of each of the parties that are corporate
entities.

 

6.04          Extension;
Waiver. Subject to Section 6.01(c), at any time prior to the Closing Date, the parties may (a) extend the time for the
performance of any of the obligations or other acts of the other parties; (b) waive any inaccuracies in the representations and
warranties contained in this Agreement or in any document delivered pursuant to this Agreement; or (c) waive compliance with any
of the agreements or conditions contained in this Agreement. Any agreement on the part of a party to any such extension or waiver
shall be valid only if set forth in an instrument in writing signed on behalf of such party. The failure of any party to this
Agreement to assert any of its rights under this Agreement or otherwise shall not constitute a waiver of such rights.

 

6.05          Return
of Documents. In the event of termination of this Agreement for any reason, Propell and the Company will return to the
other party all of the other party’s documents, work papers, and other materials (including copies) relating to the transactions
contemplated in this Agreement, whether obtained before or after execution of this Agreement. Neither Propell nor any of the Selling
Shareholders will use any information so obtained from the other party for any purpose and will take all reasonable steps to have
such other party’s information kept confidential.

 

ARTICLE VII

 

INDEMNIFICATION AND RELATED MATTERS

 

7.01          Survival
of Representations and Warranties. The representations and warranties in this Agreement or in any instrument delivered
pursuant to this Agreement shall survive until 24 months after the Closing Date (except for with respect to Taxes which shall
survive for the applicable statute of limitations plus 90 days, and covenants that by their terms survive for a longer period).

 

7.02          Indemnification

 

(a)          Propell
shall indemnify and hold the Selling Shareholders harmless for, from and against any and all liabilities, obligations, damages,
losses, deficiencies, costs, penalties, interest and expenses (including, but not limited to, any and all expenses whatsoever
reasonably incurred in investigating, preparing or defending against any litigation, commenced or threatened, or any claim whatsoever)
(collectively, “Losses”) to which Propell may become subject resulting from or arising out of any breach of
a representation, warranty or covenant made by Propell as set forth herein.

 

    	26

    	 

    

(b)          The
Selling Shareholders shall jointly indemnify and hold Propell and Propell’s officers and directors (“Propell’s
Representatives”) harmless for, from and against any and all Losses to which Propell or Propell’s Representatives
may become subject resulting from or arising out of (1) any breach of a representation, warranty or covenant made by the Company
or Selling Shareholders as set forth herein or (2) any and all liabilities arising out of or in connection with: (A) any of the
assets of the Company prior to the Closing or (B) the operations of the Company prior to the Closing.

 

7.03          Notice
of Indemnification. Promptly after the receipt by any indemnified party (the “Indemnitee”) of notice
of the commencement of any action or proceeding against such Indemnitee, such Indemnitee shall, if a claim with respect thereto
is or may be made against any indemnifying party (the “Indemnifying Party”) pursuant to this Article VII, give
such Indemnifying Party written notice of the commencement of such action or proceeding and give such Indemnifying Party a copy
of such claim and/or process and all legal pleadings in connection therewith. The failure to give such notice shall not relieve
any Indemnifying Party of any of its indemnification obligations contained in this Article VII, except where, and solely to the
extent that, such failure actually and materially prejudices the rights of such Indemnifying Party. Such Indemnifying Party shall
have, upon request within 30 days after receipt of such notice, but not in any event after the settlement or compromise of such
claim, the right to defend, at its own expense and by its own counsel reasonably acceptable to the Indemnitee, any such matter
involving the asserted liability of the Indemnitee; provided, however, that if the Indemnitee determines that there is a reasonable
probability that a claim may materially and adversely affect it, other than solely as a result of money payments required to be
reimbursed in full by such Indemnifying Party under this Article VII or if a conflict of interest exists between Indemnitee and
the Indemnifying Party, the Indemnitee shall have the right to defend, compromise or settle such claim or suit; and, provided,
further, that such settlement or compromise shall not, unless consented to in writing by such Indemnifying Party, which shall
not be unreasonably withheld, be conclusive as to the liability of such Indemnifying Party to the Indemnitee. In any event, the
Indemnitee, such Indemnifying Party and its counsel shall cooperate in the defense against, or compromise of, any such asserted
liability, and in cases where the Indemnifying Party shall have assumed the defense, the Indemnitee shall have the right to participate
in the defense of such asserted liability at the Indemnitee’s own expense. In the event that such Indemnifying Party shall
decline to participate in or assume the defense of such action, prior to paying or settling any claim against which such Indemnifying
Party is, or may be, obligated under this Article VII to indemnify an Indemnitee, the Indemnitee shall first supply such Indemnifying
Party with a copy of a final court judgment or decree holding the Indemnitee liable on such claim or, failing such judgment or
decree, the terms and conditions of the settlement or compromise of such claim. An Indemnitee’s failure to supply such final
court judgment or decree or the terms and conditions of a settlement or compromise to such Indemnifying Party shall not relieve
such Indemnifying Party of any of its indemnification obligations contained in this Article VII, except where, and solely to the
extent that, such failure actually and materially prejudices the rights of such Indemnifying Party. If the Indemnifying Party
is defending the claim as set forth above, the Indemnifying Party shall have the right to settle the claim only with the consent
of the Indemnitee.

 

    	27

    	 

    

 

 

ARTICLE VIII

 

GENERAL PROVISIONS

 

8.01          Notices.
Any and all notices and other communications hereunder shall be in writing and shall be deemed duly given to the party to whom
the same is so delivered, sent or mailed at addresses and contact information set forth on the signature page of this Agreement
(or at such other address for a party as shall be specified by like notice). All Notices to the Selling Shareholders shall be
sent “care of” the Company.

 

Any and all notices
or other communications or deliveries required or permitted to be provided hereunder shall be deemed given and effective on the
earliest of: (a) on the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number
set forth on the signature pages attached hereto prior to 5:30 p.m. (Pacific Standard Time) on a business day; (b) on the next
business day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number
set forth on the signature pages attached hereto on a day that is not a business day or later than 5:30 p.m. (Pacific Standard
Time) on any business day; (c) on the second business day following the date of mailing, if sent by a nationally recognized overnight
courier service; or (d) if by personal delivery, upon actual receipt by the party to whom such notice is required to be given.

 

8.02          Definitions.
For purposes of this Agreement:

 

(a)          an
“affiliate” of any person means another person that directly or indirectly, through one or more intermediaries,
controls, is controlled by, or is under common control with, such first person;

 

(b)          “material
adverse change” or “material adverse effect” means, when used in connection with the Company or Propell,
any change or effect that either individually or in the aggregate with all other such changes or effects is materially adverse
to the business, assets, properties, condition (financial or otherwise) or results of operations of such party and its subsidiaries
taken as a whole (after giving effect in the case of Propell to the consummation of the Exchange);

 

(c)          “ordinary
course of business” means the ordinary course of business consistent with past custom and practice (including with respect
to quantity and frequency);

 

(d)          “person”
means an individual, corporation, partnership, joint venture, association, trust, unincorporated organization or other entity;

 

(e)          “subsidiary”
of any person means another person, an amount of the voting securities, other voting ownership or voting partnership interests
of which is sufficient to elect at least a majority of its board of directors or other governing body (or, if there are no such
voting interests, fifty percent (50%) or more of the equity interests of which) that is owned directly or indirectly by such first
person; and

 

    	28

    	 

    

 

(f)          “security
interest” means any mortgage, pledge, lien, encumbrance, deed of trust, lease, charge, right of first refusal, easement,
servitude, proxy, voting trust or agreement, transfer restriction under any shareholder or similar agreement or any other security
interest, other than (i) mechanic’s, materialmen’s, and similar liens; (ii) statutory liens for taxes not yet due
and payable; (iii) purchase money liens and liens securing rental payments under capital lease arrangements; (iv) pledges or deposits
made in the ordinary course of business in connection with workers’ compensation, unemployment insurance or other similar
social security legislation; and (v) encumbrances, security deposits or reserves required by law or by any Governmental Entity.

 

8.03          Interpretation.
When a reference is made in this Agreement to a section, exhibit or schedule, such reference shall be to a section of, or an exhibit
or schedule to, this Agreement unless otherwise indicated. The headings contained in this Agreement are for reference purposes
only and shall not affect in any way the meaning or interpretation of this Agreement. Whenever the words “include,”
“includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words
“without limitation.”

 

8.04          Entire
Agreement; No Third-Party Beneficiaries. This Agreement and the other agreements referred to herein constitute the entire
agreement, and supersede all prior agreements and understandings, both written and oral, among the parties with respect to the
subject matter of this Agreement. This Agreement is not intended to confer upon any person other than the parties any rights or
remedies.

 

8.05          Governing
Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, regardless
of the laws that might otherwise govern under applicable principles of conflicts of laws thereof.

 

8.06          Assignment.
Neither this Agreement nor any of the rights, interests or obligations under this Agreement shall be assigned, in whole or in
part, by operation of law or otherwise by any of the parties without the prior written consent of the other parties. Subject to
the preceding sentence, this Agreement will be binding upon, inure to the benefit of, and be enforceable by, the parties and their
respective successors and assigns.

 

8.07          Enforcement.
The parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed
in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled
to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of
this Agreement in any court of the United States located in the State of California, this being in addition to any other remedy
to which they are entitled at law or in equity. In addition, each of the parties hereto (a) agrees that it will not attempt to
deny or defeat such personal jurisdiction or venue by motion or other request for leave from any such court and (b) agrees that
it will not bring any action relating to this Agreement or any of the transactions contemplated by this Agreement in any state
court other than such court.

 

    	29

    	 

    

 

 

8.08          Severability.
Whenever possible, each provision or portion of any provision of this Agreement will be interpreted in such manner as to be effective
and valid under applicable law but if any provision or portion of any provision of this Agreement is held to be invalid, illegal
or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability
will not affect any other provision or portion of any provision in such jurisdiction, and this Agreement will be reformed, construed
and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision or portion of any provision had never
been contained herein.

 

8.09          Counterparts.
This Agreement may be executed simultaneously in two or more counterparts, any one of which need not contain the signatures of
more than one party, but all such counterparts taken together will constitute one and the same Agreement. This Agreement, to the
extent delivered by means of a facsimile machine or electronic mail (any such delivery, an “Electronic Delivery”),
shall be treated in all manner and respects as an original agreement or instrument and shall be considered to have the same binding
legal effect as if it were the original signed version thereof delivered in person. At the request of any party hereto, each other
party hereto shall re-execute original forms hereof and deliver them in person to all other parties. No party hereto shall raise
the use of Electronic Delivery to deliver a signature or the fact that any signature or agreement or instrument was transmitted
or communicated through the use of Electronic Delivery as a defense to the formation of a contract, and each such party forever
waives any such defense, except to the extent such defense related to lack of authenticity.

 

8.10          Attorneys
Fees. In the event any suit or other legal proceeding is brought for the enforcement of any of the provisions of
this Agreement, the parties hereto agree that the prevailing party or parties shall be entitled to recover from the other party
or parties upon final judgment on the merits reasonable attorneys’ fees, including attorneys’ fees for any appeal,
and costs incurred in bringing such suit or proceeding.

 

[Signature Page Follows]

 

    	30

    	 

    

 

 

IN WITNESS WHEREOF, the undersigned have
caused their duly authorized officers to execute this Agreement as of the date first above written.

 

	 	Propell:
	 	 
	 	PROPELL TECHNOLOGIES GROUP,
    INC. 
	 	 	 
	 	By:	/s/ Edward Bernstein
	 	 	Edward Bernstein
	 	Name:	 
	 	 	 
	 	Title:	Chief Executive Officer

  

	 	Address:

                     

        305 San Anselmo Avenue

        San Anselmo, CA 94960

	 	 	 
	 	 	 

 

    	31

    	 

    

 

COUNTERPART SIGNATURE PAGE

 

TO

 

SHARE EXCHANGE AGREEMENT

 

The undersigned does
hereby agree to be bound by all of the terms and provisions of the Share Exchange Agreement, including all exhibits and schedules
attached thereto, dated February 4, 2013, by and among, Propell Technologies Group, Inc., a Delaware corporation (“Propell”)
on one hand, and each of the shareholders of the Company (each a “Selling Shareholder” and collectively, the
“Selling Shareholders”), on the other hand.

 

	 	Selling
    Shareholder:
	 	 	 
	 	By:	 
	 	 	 
	 	Print Name: 	 
	 	 	 
	 	Company:	 
	 	 	 
	 	Title:	 
	 	Address for Notice of Purchaser:
	 	 	 
	 	Address for Delivery of Shares for Purchaser
(if not same as above):

	 	 
	 	Number of Shares Being Exchanged

 

 

    	32

    	 

    

  

EXHIBIT A

 

DISTRIBUTION OF EXCHANGE SHARES TO SELLING
SHAREHOLDERS

 

	Name of Selling Shareholder	 	No. of

        Exchange

        Shares
	 	  
	 	 	 	 	 
	Snapshot Ltd.	 	1,000,000	 	 
	 	 	 	 	 
	Oxnard Universal SA	 	10,920,000	 	-
	 	 	 	 	 
	Avery Financial Business	 	5,580,000	 	-
	 	 	 	 	 
	Anuta Limited (Seycheles)	 	12,500,000	 	 
	 	 	 	 	 
	Base-Marketing LTD (Seycheles)	 	12,500,000	 	 
	 	 	 	 	 
	RealCom LTD (Anquilla)	 	12,500,000	 	 
	 	 	 	 	 
	Greencloud LTD (Nevis)	 	12,500,000	 	 
	 	 	 	 	 
	Resouse Ingeneering LTD (BVI)	 	7,500,000	 	 
	 	 	 	 	 
	Store & Navigation
    (BVI)	 	12,500,000	 	 
	 	 	 	 	 
	Demesne Hold Limited (Nevis)	 	12,500,000	 	 

  

    	 

    	 

    

  

Schedule 2.01(c)

 

	Name of Selling Shareholder	 	Ownership of

    Company

    Shares 
	 	 	 	 
	Snapshot Ltd.	 	 	1,000,000
	 	 	 	 
	Oxnard Universal SA	 	 	10,920,000
	 	 	 	 
	Avery Financial Business	 	 	5,580,000
	 	 	 	 
	Anuta Limited (Seycheles)	 	 	12,500,000
	 	 	 	 
	Base-Marketing LTD (Seycheles)	 	 	12,500,000
	 	 	 	 
	RealCom LTD (Anquilla)	 	 	12,500,000
	 	 	 	 
	Greencloud LTD (Nevis)	 	 	12,500,000
	 	 	 	 
	Resouse Ingeneering LTD (BVI)	 	 	7,500,000
	 	 	 	 
	Store & Navigation
    (BVI)	 	 	12,500,000
	 	 	 	 
	Demesne Hold Limited (Nevis)	 	 	12,500,000

 

    	 

    	 

    

 

Schedule 2.01(m)

 

Intellectual Property

 

Patent Assignment Application No. 61/684,988 (Process and Apparatus
For The Production Enhancement Of Hydrocarbon Deposits Using metallic Plasma-Generated, Directed. Nonlinear, Wide-Band Elastic
Oscillations At Resonance) from P.G. Ageev and A.A. Molchanov (Assignor) to Novas Energy Group Limited (Assignee)

 

    	 

    	 

    

 

Schedule 2.01(q)

 

Material Agreements

 

License Agreement between Novas Energy
Group Limited

 

and Novas Energy (USA), Inc. dated January
30, 2013Exhibit 4.1

 

 

BIODRAIN MEDICAL, INC.

2012 STOCK INCENTIVE PLAN 

 

TABLE OF CONTENTS

 

	1.	Purpose	3
	 	 	 	 
	2.	Administration	3
	 	 	 	 
	3.	Eligible Participants	3
	 	 	 	 
	4.	Types of Incentives	3
	 	 	 	 
	5.	Shares Subject to the Plan	3
	 	5.1.	Number of Shares	3
	 	5.2.	Cancellation	3
	 	5.3.	Type of Common Stock	4
	 	5.4.	Limitation on Certain Grants	4
	 	 	 	 
	6.	Stock Options	4
	 	6.1.	Price	4
	 	6.2.	Number	4
	 	6.3.	Duration and Time for Exercise	4
	 	6.4.	Manner of Exercise	4
	 	6.5.	Incentive Stock Options	4
	 	 	 	 
	7.	Stock Appreciation Rights	5
	 	7.1.	Price	5
	 	7.2.	Number	5
	 	7.3.	Duration	5
	 	7.4.	Exercise	5
	 	7.5.	Issuance of Shares Upon Exercise	5
	 	 	 	 
	8.	Stock Awards, Restricted Stock and Restricted Stock Units	6
	 	8.1.	Number of Shares	6
	 	8.2.	Sale Price	6
	 	8.3.	Restrictions	6
	 	8.4.	Enforcement of Restrictions	6
	 	8.5.	End of Restrictions	6
	 	8.6.	Rights of Holders of Restricted Stock and Restricted Stock Units	6
	 	8.7.	Settlement of Restricted Stock Units	7
	 	8.8.	Dividend Equivalents	7
	 	 	 	 
	9.	Performance Awards	7
	 	9.1.	Performance Conditions	7
	 	9.2.	Performance Awards Granted to Designated Covered Employees	7
	 	9.3.	Written Determinations	8
	 	9.4.	Status of Performance Awards Under Code Section 162(m)	8

 

    	 

    	 

    
  

	 	 	 	 
	10.	General	8
	 	10.1.	Plan Effective Date and Shareholder Approval; Termination of Plan	8
	 	10.2.	Duration	8
	 	10.3.	Non-transferability of Incentives	9
	 	10.4.	Effect of Termination or Death	9
	 	10.5.	Restrictions under Securities Laws	9
	 	10.6.	Adjustment	9
	 	10.7.	Incentive Plans and Agreements	9
	 	10.8.	Withholding	10
	 	10.9.	No Continued Employment, Engagement or Right to Corporate Assets	10
	 	10.10.	Payments Under Incentives	10
	 	10.11.	Amendment of the Plan	10
	 	10.12.	Amendment of Agreements for Incentives; No Repricing	10
	 	10.13.	Vesting Upon Change In Control	10
	 	10.14.	Sale, Merger, Exchange or Liquidation	11
	 	10.15.	Definition of Fair Market Value	12
	 	10.16.	Definition of Grant Date	12
	 	10.17.	Compliance with Code Section 409A	13
	 	10.18.	Prior Plan	13

 

 

    	 

    	 

    

 

BIODRAIN
MEDICAL, inc.

 

2012
STOCK INCENTIVE PLAN

 

1.                 
Purpose. The purpose of the 2012 Stock Incentive Plan (the “Plan”) of BioDrain Medical, Inc.
(the “Company”) is to increase shareholder value and to advance the interests of the Company by furnishing a variety
of economic incentives (“Incentives”) designed to attract, retain and motivate employees, certain key consultants
and directors of the Company. Incentives may consist of opportunities to purchase or receive shares of Common Stock, $0.01 par
value, of the Company (“Common Stock”) or other incentive awards on terms determined under this Plan.

 

2.                 
Administration. The Plan shall be administered by the board of directors of the Company (the “Board
of Directors”) or by a stock option or compensation committee (the “Committee”) of the Board of Directors. The
Committee shall consist of not less than two directors of the Company and shall be appointed from time to time by the Board of
Directors. Each member of the Committee shall be (a) a “non-employee director” within the
meaning of Rule 16b-3 of the Securities Exchange Act of 1934 (including the regulations promulgated thereunder, the “1934
Act”) (a “Non-Employee Director”), and (b) shall be an “outside director”
within the meaning of Section 162(m) under the Internal Revenue Code of 1986, as amended (the “Code”) and the regulations
promulgated thereunder (“Code Section 162(m)”). The Committee shall have complete authority to award Incentives under
the Plan, to interpret the Plan, and to make any other determination which it believes necessary and advisable for the proper
administration of the Plan. The Committee’s decisions and matters relating to the Plan shall be final and conclusive on
the Company and its participants. If at any time there is no stock option or compensation committee, the term “Committee”,
as used in the Plan, shall refer to the Board of Directors.

 

3.                 
Eligible Participants. Officers of the Company, employees of the Company or its subsidiaries, members of
the Board of Directors, and consultants or other independent contractors who provide services to the Company or its subsidiaries
shall be eligible to receive Incentives under the Plan when designated by the Committee. Participants may be designated individually
or by groups or categories (for example, by pay grade) as the Committee deems appropriate. Participation by officers of the Company
or its subsidiaries and any performance objectives relating to such officers must be approved by the Committee. Participation
by others and any performance objectives relating to others may be approved by groups or categories (for example, by pay grade)
and authority to designate participants who are not officers and to set or modify such targets may be delegated.

 

4.                 
Types of Incentives. Incentives under the Plan may be granted in any one or a combination of the following
forms: (a) incentive stock options and non-statutory stock options (Section 6); (b) stock appreciation rights (“SARs”)
(Section 7); (c) stock awards (Section 8); (d) restricted stock (Section 8); restricted stock units (Section 8) and performance
awards (Section 9). Subject to the specific limitations provided in this Plan, payment of Incentives may be in the form of cash,
Common Stock or combinations thereof as the Committee shall determine, and with such other restrictions as it may impose.

 

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5.                 
Shares Subject to the Plan.

 

5.1.           
Number of Shares. Subject to adjustment as provided in Section 10.6, the number of shares of Common Stock
which may be issued under the Plan shall not exceed 20,000,000 shares of Common Stock. In addition, as of the Effective Date,
any shares available in the reserve of the Prior Plan (as defined in Section 10.18) shall be added to the Plan share reserve and
be available for issuance under the Plan. Any Shares delivered under the Plan may consist, in whole or in part, of authorized
and unissued shares or treasury shares. Shares of Common Stock that are issued under the Plan or are subject to Incentives awarded
under the Plan will be applied to reduce the maximum number of shares of Common Stock remaining available for issuance under the
Plan.

 

5.2.           
Cancellation . If an Incentive granted under the Plan or under the Prior Plan expires or is terminated
or canceled unexercised as to any shares of Common Stock or forfeited or reacquired by the Company pursuant to rights reserved
upon issuance thereof, such forfeited and reacquired shares may again be issued under the Plan pursuant to another Incentive.
If any Shares subject to an Incentive granted under the Plan or under the Prior Plan are withheld or applied as payment in connection
with the exercise of an Incentive (including the withholding of Shares on the exercise of a stock option or the exercise of an
SAR that is settled in Shares) or the withholding or payment of taxes related thereto, such Shares shall not again be available
for grant under the Plan.

 

5.3.           
Type of Common Stock. Common Stock issued under the Plan in connection with Incentives will be authorized
and unissued shares.

 

5.4.           
Limitation on Certain Grants. During any one fiscal year, no person shall receive Incentives under the Plan
that could result in that person receiving, earning or acquiring, subject to the adjustments described in Section 10.6: (a) Stock
Options and SARs for, in the aggregate, more than 10,000,000 shares of Common Stock; or (b) Performance Awards, in the aggregate,
for more than 10,000,000 shares of Common Stock or, if payable in cash, with a maximum amount payable exceeding $2,000,000.

 

6.                 
Stock Options. A stock option is a right to purchase shares of Common Stock from the Company. Each stock
option granted by the Committee under this Plan shall be subject to the following terms and conditions:

 

6.1.           
Price. The option price per share shall be determined by the Committee, subject to adjustment under Section
10.6. Notwithstanding the foregoing sentence, the option price per share shall not be less than the Fair Market Value (as defined
in Section 10.15) of the Common Stock on the Grant Date (as defined in Section 10.16).

 

6.2.           
Number. The number of shares of Common Stock subject to a stock option shall be determined by the Committee,
subject to adjustment as provided in Section 10.6. The number of shares of Common Stock subject to a stock option shall be reduced
in the same proportion that the holder thereof exercises an SAR if any SAR is granted in conjunction with or related to the stock
option. If the number of shares subject to a stock option is reduced pursuant to the preceding sentence, the number of shares
subject to the original grant will continue to count against the limitation on grants under Section 5.4. 

 

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6.3.           
Duration and Time for Exercise. Subject to earlier termination as provided in Section 10.3, the term of each
stock option shall be determined by the Committee but shall not exceed ten years and one day from the Grant Date. Each stock option
shall become exercisable at such time or times during its term as shall be determined by the Committee at the time of grant. The
Committee may accelerate the exercisability of any stock option. Subject to the first sentence of this paragraph, the Committee
may extend the term of any stock option to the extent provided in Section 10.4.

 

6.4.           
Manner of Exercise. A stock option may be exercised, in whole or in part, by giving written notice to the
Company, specifying the number of shares of Common Stock to be purchased and accompanied by the full purchase price for such shares.
The option price shall be payable (a) in United States dollars upon exercise of the option and may be paid by cash, uncertified
or certified check or bank draft; (b) unless otherwise provided in the option agreement, by delivery of shares of Common Stock
in payment of all or any part of the option price, which shares shall be valued for this purpose at the Fair Market Value on the
date such option is exercised; or (c) unless otherwise provided in the option agreement, by instructing the Company to withhold
from the shares of Common Stock issuable upon exercise of the stock option shares of Common Stock in payment of all or any part
of the exercise price and/or any related withholding tax obligations consistent with Section 10.8, which shares shall be valued
for this purpose at the Fair Market Value or in such other manner as may be authorized from time to time by the Committee. Before
the issuance of shares of Common Stock upon the exercise of a stock option, a participant shall have no rights as a shareholder.

 

6.5.           
Incentive Stock Options. Notwithstanding anything in the Plan to the contrary, the following additional provisions
shall apply to the grant of stock options which are intended to qualify as Incentive Stock Options (as such term is defined in
Code Section 422):

 

(a)   
The aggregate Fair Market Value (determined as of the time the option is granted) of the shares of Common Stock with respect
to which Incentive Stock Options are exercisable for the first time by any participant during any calendar year (under all of the
Company’s plans) shall not exceed $100,000. The determination will be made by taking Incentive Stock Options into account
in the order in which they were granted. If such excess only applies to a portion of an Incentive Stock Option, the Committee,
in its discretion, will designate which shares will be treated as shares to be acquired upon exercise of an Incentive Stock Option.

 

(b)  
Any option agreement for an Incentive Stock Option under the Plan shall contain such other provisions as the Committee shall
deem advisable, but shall in all events be consistent with and contain all provisions required in order to qualify the options
as Incentive Stock Options.

 

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(c)   
All Incentive Stock Options must be granted within ten years from the earlier of the date on which this Plan was adopted
by Board of Directors or the date this Plan was approved by the shareholders.

 

(d)  
Unless sooner exercised, all Incentive Stock Options shall expire no later than ten years after the Grant Date.

 

(e)   
The option price for Incentive Stock Options shall be not less than the Fair Market Value of the Common Stock subject to
the option on the Grant Date.

 

(f)   
If Incentive Stock Options are granted to any participant who, at the time such option is granted, would own (within the
meaning of Code Section 422) stock possessing more than 10% of the total combined voting power of all classes of stock of the employer
corporation or of its parent or subsidiary corporation, (i) the option price for such Incentive Stock Options shall be not less
than 110% of the Fair Market Value of the Common Stock subject to the option on the Grant Date and (ii) such Incentive Stock Options
shall expire no later than five years after the Grant Date.

 

7.                 
Stock Appreciation Rights. An SAR is a right to receive, without payment to the Company, a number of shares
of Common Stock, the amount of which is determined pursuant to the formula set forth in Section 7.5. An SAR may be granted (a)
with respect to any stock option granted under this Plan, either concurrently with the grant of such stock option or at such later
time as determined by the Committee (as to all or any portion of the shares of Common Stock subject to the stock option), or (b)
alone, without reference to any related stock option. Each SAR granted by the Committee under this Plan shall be subject to the
following terms and conditions:

 

7.1.           
Price. The exercise price per share of any SAR granted without reference to a stock option shall be determined
by the Committee, subject to adjustment under Section 10.6. Notwithstanding the foregoing sentence, the exercise price per share
shall not be less than the Fair Market Value of the Common Stock on the Grant Date.

 

7.2.           
Number. Each SAR granted to any participant shall relate to such number of shares of Common Stock as shall
be determined by the Committee, subject to adjustment as provided in Section 10.6. In the case of an SAR granted with respect
to a stock option, the number of shares of Common Stock to which the SAR relates shall be reduced in the same proportion that
the holder of the option exercises the related stock option. If the number of shares subject to an SAR is reduced pursuant to
the preceding sentence, the number of shares subject to the original grant will continue to count against the limitation on grants
under Section 5.4.

 

7.3.           
Duration. Subject to earlier termination as provided in Section 10.3, the term of each SAR shall be determined
by the Committee but shall not exceed ten years and one day from the Grant Date. Unless otherwise provided by the Committee, each
SAR shall become exercisable at such time or times, to such extent and upon such conditions as the stock option, if any, to which
it relates is exercisable. The Committee may in its discretion accelerate the exercisability of any SAR. Subject to the first
sentence of this paragraph, the Committee may extend the term of any SAR to the extent provided in Section 10.4.

 

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7.4.           
Exercise. An SAR may be exercised, in whole or in part, by giving written notice to the Company, specifying
the number of SARs which the holder wishes to exercise. Upon receipt of such written notice, the Company shall, within 90 days
thereafter, deliver to the exercising holder certificates for the shares of Common Stock or cash or both, as determined by the
Committee, to which the holder is entitled pursuant to Section 7.5.

 

 7.5.           
Issuance of Shares Upon Exercise. The number of shares of Common Stock which shall be issuable upon the exercise
of an SAR shall be determined by dividing:

 

(a)   
the number of shares of Common Stock as to which the SAR is exercised multiplied by the amount of the appreciation in such
shares (for this purpose, the “appreciation” shall be the amount by which the Fair Market Value of the shares of Common
Stock subject to the SAR on the exercise date exceeds (1) in the case of an SAR related to a stock option, the purchase price
of the shares of Common Stock under the stock option or (2) in the case of an SAR granted alone, without reference to a related
stock option, an amount which shall be determined by the Committee at the time of grant, subject to adjustment under Section 10.6);
by

 

(b)  
the Fair Market Value of a share of Common Stock on the exercise date.

 

No fractional
shares of Common Stock shall be issued upon the exercise of an SAR; instead, the holder of the SAR shall be entitled to receive
a cash adjustment equal to the same fraction of the Fair Market Value of a share of Common Stock on the exercise date or to purchase
the portion necessary to make a whole share at its Fair Market Value on the date of exercise.

 

8.                 
Stock Awards, Restricted Stock and Restricted Stock Units. A stock award consists of the transfer by the
Company to a participant of shares of Common Stock, with or without other payment therefor, as additional compensation for services
to the Company. A share of restricted stock consists of shares of Common Stock which are sold or transferred by the Company to
a participant at a price, if any, determined by the Committee and subject to restrictions on their sale or other transfer by the
participant. Restricted stock units represent the right to receive shares of Common Stock at a future date. The transfer of Common
Stock pursuant to stock awards, ,the transfer or sale of restricted stock and restricted stock units shall be subject to the following
terms and conditions:

 

8.1.           
Number of Shares. The number of shares to be transferred or sold by the Company to a participant pursuant
to a stock award or as restricted stock, or the number of shares that may be issued pursuant to a restricted stock unit, shall
be determined by the Committee.

 

8.2.           
Sale Price. The Committee shall determine the price, if any, at which shares of restricted stock shall be
sold to a participant, which may vary from time to time and among participants and which may be below the Fair Market Value of
such shares of Common Stock at the date of sale.

 

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8.3.           
Restrictions. All shares of restricted stock transferred or sold by the Company hereunder, and all restricted
stock units granted hereunder, shall be subject to such restrictions as the Committee may determine, including, without limitation
any or all of the following:

 

(a)   
a prohibition against the sale, transfer, pledge or other encumbrance of the shares of restricted stock, or the delivery
of shares pursuant to restricted stock units, such prohibition to lapse at such time or times as the Committee shall determine
(whether in annual or more frequent installments, at the time of the death, disability or retirement of the holder of such shares,
or otherwise);

 

(b)  
a requirement that the holder of shares of restricted stock or restricted stock units forfeit, or (in the case of shares
sold to a participant) re-sell back to the Company at his or her cost, all or a part of such shares in the event of termination
of his or her employment, service on the Board of Directors or consulting engagement during any period in which such shares are
subject to restrictions; and

 

(c)   
such other conditions or restrictions as the Committee may deem advisable.

 

8.4.           
Enforcement of Restrictions. In order to enforce the restrictions imposed by the Committee pursuant to Section
8.3, the participant receiving restricted stock or restricted stock units shall enter into an agreement with the Company setting
forth the conditions of the grant. Shares of restricted stock shall be registered in the name of the participant and deposited,
together with a stock power endorsed in blank, with the Company. Each such certificate shall bear a legend that refers to the
Plan and the restrictions imposed under the applicable agreement. At the Committee’s election, shares of restricted stock
may be held in book entry form subject to the Company’s instructions until any restrictions relating to the restricted stock
grant lapse. 

 

8.5.           
End of Restrictions. Subject to Section 10.5, at the end of any time period during which the shares of restricted
stock are subject to forfeiture and restrictions on transfer, such shares will be delivered free of all restrictions to the participant
or to the participant’s legal representative, beneficiary or heir. Subject to Section 10.5, upon the lapse or waiver of
restrictions applicable to restricted stock units, or at a later time specified in the agreement governing the grant of restricted
stock units, any shares derived from the restricted stock units shall be issued and delivered to the holder of the restricted
stock units.

 

 8.6.           
Rights of Holders of Restricted Stock and Restricted Stock Units. Subject to the terms and conditions of
the Plan, each participant receiving restricted stock shall have all the rights of a shareholder with respect to shares of stock
during any period in which such shares are subject to forfeiture and restrictions on transfer, including without limitation, the
right to vote such shares. Any holder of restricted stock units shall not be, and shall not have rights and privileges of, a shareholder
with respect to any shares that may be derived from the restricted stock units unless and until such shares have been issued.

 

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8.7.           
Settlement of Restricted Stock Units. Restricted stock units may be satisfied by delivery of shares of stock, cash
equal to the Fair Market Value of the specified number of shares covered by the restricted stock units, or a combination thereof,
as determined by the Committee at the date of grant or thereafter.

 

8.8.           
Dividend Equivalents. In connection with any award of restricted stock units, the Committee may grant the right to
receive cash, shares of stock or other property equal in value to dividends paid with respect to the number of shares represented
by the restricted stock units (“Dividend Equivalents”). Unless otherwise determined by the Committee at the date of
grant, any Dividend Equivalents that are granted with respect to any award of restricted stock units shall be either (a) paid with
respect to such restricted stock units at the dividend payment date in cash or in shares of unrestricted stock having a Fair Market
Value equal to the amount of such dividends, or (b) deferred with respect to such restricted stock units and the amount or value
thereof automatically deemed reinvested in additional restricted stock units until the time for delivery of shares (if any) pursuant
to the terms of the restricted stock unit award.

 

9.                 
Performance Awards.

 

9.1.           
Performance Conditions. The right of a participant to exercise or receive a grant or settlement of any Incentive,
and the timing thereof, may be subject to such performance conditions as may be specified by the Committee (such an Incentive is
referred to as a “Performance Award”). The Committee may use such business criteria and other measures of performance
as it may deem appropriate in establishing any performance conditions, and may exercise its discretion to reduce the amounts payable
under any Incentive subject to performance conditions, except as limited under Section 9.2 hereof in the case of a Performance
Award intended to qualify under Code Section 162(m). If and to the extent required under Code Section 162(m), any power or authority
relating to a Performance Award intended to qualify under Code Section 162(m), shall be exercised by the Committee as the Committee
and not the Board.

 

9.2.           
Performance Awards Granted to Designated Covered Employees. If and to the extent the Committee determines that a
Performance Award to be granted to a person who is designated by the Committee as likely to be a covered employee within the meaning
of Code Section 162(m) and regulations thereunder (a “Covered Employee”) should qualify as "performance-based
compensation" for purposes of Code Section 162(m), the grant, exercise, and/or settlement of such Performance Award shall
be contingent upon achievement of pre-established performance goals and other terms set forth in this Section 9.2.

 

(a)   
Performance Goals Generally. The performance goals for such Performance Awards shall consist of one or more business criteria
and a targeted level or levels of performance with respect to each of such criteria, as specified by the Committee consistent with
this Section 9.2. Performance goals shall be objective and shall otherwise meet the requirements of Code Section 162(m), including
but not limited to the requirement that the level or levels of performance targeted by the Committee result in the achievement
of performance goals being "substantially uncertain" at the time the Performance Award is granted. The Committee may
determine that such Performance Awards shall be granted, exercised, and/or settled upon achievement of any one performance goal,
or that two or more of the performance goals must be achieved as a condition to grant, exercise, and/or settlement of such Performance
Awards. Performance goals may differ for Performance Awards granted to any one participant or to different participants.

 

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(b)  
Business Criteria. One or more of the following business criteria for the Company, on a consolidated basis, and/or specified
subsidiaries or business units of the Company, shall be used exclusively by the Committee in establishing performance goals for
such Performance Awards as are intended to qualify as “performance-based” compensation within the meaning of Section
162(m) of the Code: earnings per share, operating income or profit, net income, gross or net sales, expenses, expenses as a percentage
of net sales, inventory turns, cash flow (including, but not limited to, operating cash flow, free cash flow, cash flow return
on equity, and cash flow return on investment), gross profit, margins, working capital, earnings before interest and tax (EBIT),
earnings before interest, tax, depreciation and amortization (EBITDA), return measures (including, but not limited to, return on
assets, capital, invested capital, equity, sales, or revenue), revenue growth, share price (including, but not limited to, growth
measures and total shareholder return), operating efficiency, productivity ratios, market share, economic value added and safety
(or any of the above criteria as compared to the performance of a group of comparable companies, or any published or special index
that the Committee, in its sole discretion, deems appropriate), or the Committee may select criteria based on the Company’s
share price as compared to various stock market indices. The Committee, in its sole discretion, may modify the performance goals
if it determines that circumstances have changed and modification is required to reflect the original intent of the performance
goals; provided, however, that no such change or modification may be made to the extent it increases the amount of compensation
payable to any participant who is a Covered Employee.

 

(c)   
Performance Period; Timing For Establishing Performance Goals. Achievement of performance goals in respect of such Performance
Awards shall be measured over a performance period of up to ten (10) years, as specified by the Committee. Performance goals shall
be established not later than ninety (90) days after the beginning of any performance period applicable to such Performance Awards,
or at such other date as may be required or permitted for "performance-based compensation" under Code Section 162(m).

 

(d)  
Settlement of Performance Awards; Other Terms. Settlement of such Performance Awards shall be in cash, stock, other Incentives
or other property, in the discretion of the Committee. The Committee may, in its discretion, reduce the amount of a settlement
otherwise to be made in connection with such Performance Awards. The Committee shall specify the circumstances in which such Performance
Awards shall be paid or forfeited in the event of termination of continuous service by the participant before the end of a performance
period or the settlement date of Performance Awards.

 

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9.3.           
Written Determinations. All determinations by the Committee as to the establishment of performance goals, the amount
of any Performance Award pool or potential individual Performance Awards, and as to the achievement of performance goals relating
to Performance Awards under Section 9.2(a), shall be made in writing in the case of any Performance Award intended to qualify under
Code Section 162(m). The Committee may not delegate any responsibility relating to such Performance Awards if and to the extent
required to comply with Code Section 162(m).

 

9.4.           
Status of Performance Awards Under Code Section 162(m). It is the intent of the Company that Performance Awards granted
under this Section 9 to persons who are designated by the Committee as likely to be Covered Employees shall, if so designated by
the Committee, constitute "qualified performance-based compensation" within the meaning of Code Section 162(m). Accordingly,
the terms of Sections 9.2, 9.3 and 9.4, including the definitions of Covered Employee and other terms used therein, shall be interpreted
in a manner consistent with Code Section 162(m). Notwithstanding the foregoing, because the Committee cannot determine with certainty
whether a given Participant will be a Covered Employee with respect to a fiscal year that has not yet been completed, the term
Covered Employee as used herein shall mean only a person designated by the Committee, at the time of grant of Performance Awards,
as likely to be a Covered Employee with respect to that fiscal year. If any provision of the Plan or any agreement relating to
such Performance Awards does not comply or is inconsistent with the requirements of Code Section 162(m), such provision shall be
construed or deemed amended to the extent necessary to conform to such requirements.

 

10.             
General.

 

10.1.       
Plan Effective Date and Shareholder Approval; Termination of Plan. The Plan shall become effective on the Effective
Date, subject to subsequent approval within twelve (12) months of its adoption by the Board by shareholders of the Company eligible
to vote in the election of directors, by a vote sufficient to meet the requirements of Code Sections 162(m) (if applicable) and
422, Rule 16b-3 under the Exchange Act (if applicable), applicable requirements of any stock exchange, if any, and other laws,
regulations, and obligations of the Company applicable to the Plan. Awards may be granted subject to shareholder approval, but
may not be exercised or otherwise settled in the event shareholder approval is not obtained. The Plan shall terminate no later
than ten (10) years from the date of the later of (x) the Effective Date and (y) the date an increase in the number of shares reserved
for issuance under the Plan is approved by the Board (so long as such increase is also approved by the shareholders).

 

10.2.       
Duration. The Plan shall remain in effect until all Incentives granted under the Plan have either been satisfied
by the issuance of shares of Common Stock or the payment of cash or been terminated under the terms of the Plan and all restrictions
imposed on shares of Common Stock in connection with their issuance under the Plan have lapsed. No Incentives may be granted under
the Plan after the tenth anniversary of the Effective Date of the Plan.

 

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10.3.       
Non-transferability of Incentives. No stock option, SAR, restricted stock or stock award may be transferred, pledged
or assigned by the holder thereof (except, in the event of the holder’s death, by will or the laws of descent and distribution
to the limited extent provided in the Plan or the Incentive, or pursuant to a qualified domestic relations order as defined by
the Code or Title I of the Employee Retirement Income Security Act, or the rules thereunder), and the Company shall not be required
to recognize any attempted assignment of such rights by any participant. Notwithstanding the preceding sentence, stock options
(other than stock options intended to qualify as Incentive Stock Options pursuant to Section 6.5) may be transferred by the holder
thereof to the holder’s spouse, children, grandchildren or parents (collectively, the “Family Members”), to
trusts for the benefit of Family Members, to partnerships or limited liability companies in which Family Members are the only
partners or shareholders, or to entities exempt from federal income taxation pursuant to Code Section 501(c)(3). During a participant’s
lifetime, a stock option may be exercised only by him or her, by his or her guardian or legal representative or by the transferees
permitted by this Section 10.3.

 

10.4.       
Effect of Termination or Death. If a participant ceases to be an employee of or consultant to the Company for any
reason, including death or disability, any Incentives may be exercised or shall expire at such times as may be set forth in the
agreement, if any, applicable to the Incentive, or otherwise as determined by the Committee; provided, however, the term of an
Incentive may not be extended beyond the term originally prescribed when the Incentive was granted, unless the Incentive satisfies
(or is amended to satisfy) the requirements of Code Section 409A, including the rules and regulations promulgated thereunder (together,
“Code Section 409A”); and provided further that the term of an Incentive may not be extended beyond the maximum term
permitted under this Plan.

 

10.5.       
Restrictions under Securities Laws. Notwithstanding anything in this Plan to the contrary: (a) the Company may, if
it shall determine it necessary or desirable for any reason, at the time of award of any Incentive or the issuance of any shares
of Common Stock pursuant to any Incentive, require the recipient of the Incentive, as a condition to the receipt thereof or to
the receipt of shares of Common Stock issued pursuant thereto, to deliver to the Company a written representation of present intention
to acquire the Incentive or the shares of Common Stock issued pursuant thereto for his or her own account for investment and not
for distribution; and (b) if at any time the Company further determines, in its sole discretion, that the listing, registration
or qualification (or any updating of any such document) of any Incentive or the shares of Common Stock issuable pursuant thereto
is necessary on any securities exchange or under any federal or state securities or blue sky law, or that the consent or approval
of any governmental regulatory body is necessary or desirable as a condition of, or in connection with the award of any Incentive,
the issuance of shares of Common Stock pursuant thereto, or the removal of any restrictions imposed on such shares, such Incentive
shall not be awarded or such shares of Common Stock shall not be issued or such restrictions shall not be removed, as the case
may be, in whole or in part, unless such listing, registration, qualification, consent or approval shall have been effected or
obtained free of any conditions not acceptable to the Company.

 

 

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10.6.       
Adjustment. In the event of any recapitalization, stock dividend, stock split, combination of shares or other change
in the Common Stock, the number of shares of Common Stock then subject to the Plan, including shares subject to outstanding Incentives,
and the other numbers of shares of Common Stock provided in the Plan, shall be adjusted in proportion to the change in outstanding
shares of Common Stock. In the event of any such adjustments, the purchase price of any option, the performance objectives of any
Incentive, and the shares of Common Stock issuable pursuant to any Incentive shall be adjusted as and to the extent appropriate,
in the discretion of the Committee, to provide participants with the same relative rights before and after such adjustment.

 

10.7.       
Incentive Plans and Agreements. Except in the case of stock awards, the terms of each Incentive shall be stated in
a plan or agreement approved by the Committee. The Committee may also determine to enter into agreements with holders of options
to reclassify or convert certain outstanding options, within the terms of the Plan, as Incentive Stock Options or as non-statutory
stock options and in order to eliminate SARs with respect to all or part of such options and any other previously issued options.
The Committee shall communicate the key terms of each award to the participant promptly after the Committee approves the grant
of such award.

 

10.8.       
Withholding.

 

(a)   
The Company shall have the right to withhold from any payments made under the Plan or to collect as a condition of payment, any
taxes required by law to be withheld. If so permitted by the Committee at the time of the award of any Incentive or at a later
time, at any time when a participant is required to pay to the Company an amount required to be withheld under applicable income
tax laws in connection with a distribution of Common Stock or upon exercise of an option or SAR or upon vesting of restricted stock,
the participant may satisfy this obligation in whole or in part by electing (the “Election”) to have the Company withhold,
from the distribution or from such shares of restricted stock, shares of Common Stock having a value up to the minimum amount of
withholding taxes required to be collected on the transaction. The value of the shares to be withheld shall be based on the Fair
Market Value of the Common Stock on the date that the amount of tax to be withheld shall be determined (“Tax Date”).

 

(b)  
Each Election must be made before the Tax Date. The Committee may disapprove of any Election, may suspend or terminate the right
to make Elections, or may provide with respect to any Incentive that the right to make Elections shall not apply to such Incentive.
An Election is irrevocable.

 

10.9.       
No Continued Employment, Engagement or Right to Corporate Assets. No participant under the Plan shall have any right,
because of his or her participation, to continue in the employ of the Company for any period of time or to any right to continue
his or her present or any other rate of compensation. Nothing contained in the Plan shall be construed as giving an employee, a
consultant, such persons’ beneficiaries or any other person any equity or interests of any kind in the assets of the Company
or creating a trust of any kind or a fiduciary relationship of any kind between the Company and any such person.

 

 

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10.10.   
Payments Under Incentives. Payment of cash or distribution of any shares of Common Stock to which a participant is
entitled under any Incentive shall be made as provided in the Incentive. Except as permitted under Section 10.17, payments and
distributions may not be deferred under any Incentive unless the deferral complies with the requirements of Code Section 409A.

 

10.11.   
Amendment of the Plan. The Board of Directors may amend or discontinue the Plan at any time. However, no such amendment
or discontinuance shall adversely change or impair, without the consent of the recipient, an Incentive previously granted. Further,
no such amendment shall, without approval of the shareholders of the Company, (a) increase the maximum number of shares of Common
Stock which may be issued to all participants under the Plan, (b) change or expand the types of Incentives that may be granted
under the Plan, (c) change the class of persons eligible to receive Incentives under the Plan, or (d) materially increase the benefits
accruing to participants under the Plan.

 

10.12.   
Amendment of Agreements for Incentives; No Repricing. Except as otherwise provided in this Section 10.12 or Section
10.17, the terms of an existing Incentive may be amended by agreement between the Committee and the participant. Notwithstanding
the foregoing sentence, in the case of a stock option or SAR, no such amendment shall (a) without shareholder approval, lower the
exercise price of a previously granted stock option or SAR, cancel a stock option or SAR when the exercise price per share exceeds
the Fair Market Value of the underlying shares in exchange for another Incentive or cash, or take any other action with respect
to a stock option that may be treated as a repricing under the federal securities laws or generally accepted accounting principles;
or (b) extend the term of the Incentive, except as provided in Sections 10.4 and 10.17.

 

10.13.   
Vesting Upon Change In Control. Upon the occurrence of an event satisfying the definition of “Change in Control”
with respect to a particular Incentive, unless otherwise provided in the agreement for the Incentive, such Incentive shall become
vested and all restrictions shall lapse. The Committee may, in its discretion, include such further provisions and limitations
in any agreement for an Incentive as it may deem desirable. For purposes of this Section 10.13, “Change in Control”
means the occurrence of any one or more of the following:

 

(a)   
a merger, consolidation, statutory exchange or reorganization approved by the Company’s shareholders, unless securities representing
more than fifty percent (50%) of the total combined voting power of the outstanding voting securities of the successor corporation
are immediately thereafter beneficially owned directly or indirectly and in substantially the same proportion, by the persons who
beneficially owned the Company’s outstanding voting securities immediately prior to such transaction;

 

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(b)  
any transaction or series of related transactions pursuant to which any person or any group of persons comprising a “group”
within the meaning of Rule 13d-5(b)(1) under the Securities Exchange Act of 1934, as amended (other than the Company or a person
that, prior to such transaction or series of related transactions, directly or indirectly controls, is controlled by or is under
common control with, the Company) becomes directly or indirectly the beneficial owner (within the meaning of Rule 13d-3 of the
Securities Exchange Act of 1934, as amended) of securities possessing (or convertible into or exercisable for securities possessing)
thirty percent (30%) or more of the total combined voting power of the securities (determined by the power to vote with respect
to the elections of Board members) outstanding immediately after the consummation of such transaction or series of related transactions,
whether such transaction involves a direct issuance from the Company or the acquisition of outstanding securities held by one or
more of the Company’s shareholders;

 

(c)   
there is consummated a sale, lease, exclusive license, or other disposition of all or substantially all of the consolidated assets
of the Company and its subsidiaries, other than a sale, lease, license, or other disposition of all or substantially all of the
consolidated assets of the Company and its subsidiaries to an entity, more than fifty percent (50%) of the combined voting power
of the voting securities of which are owned by shareholders of the Company in substantially the same proportions as their ownership
of the Company immediately prior to such sale, lease, license, or other disposition; or

 

(d)  
individuals who, on the Effective Date, are Directors (the “Incumbent Board”) cease for any reason to constitute at
least a majority of the Directors; provided, however, that if the appointment or election (or nomination for election) of any new
Director was approved or recommended by a majority vote of the members of the Incumbent Board then still in office, such new member
shall, for purposes of this Plan, be considered as a member of the Incumbent Board.

 

Notwithstanding the foregoing
or any other provision of this Plan, (i) the definition of Change in Control (or any analogous term) in an individual written agreement
between the Company and the Participant shall supersede the foregoing definition with respect to Incentives subject to such agreement
(it being understood, however, that if no definition of Change in Control or any analogous term is set forth in such an individual
written agreement, the foregoing definition shall apply); (ii) for clarification, a “Change in Control” shall not be
deemed to have occurred for purposes of the foregoing clause (b) as the result of the acquisition of additional securities by Dr.
Samuel Herschkowitz, Joshua Kornberg or their affiliates; and (iii) a “Change in Control” shall not be deemed to have
occurred for purposes of the foregoing clause (b) solely as the result of a repurchase or other acquisition of securities by Company
which, by reducing the number of shares of Voting Securities outstanding, increases the proportionate number of Voting Securities
beneficially owned by any person to thirty percent (30%) or more of the combined voting power of all of the then outstanding Voting
Securities; provided, however, that if any person referred to in this clause (iii) shall thereafter become the beneficial owner
of any additional shares of Voting Securities (other than pursuant to a stock split, stock dividend, or similar transaction or
as a result of an acquisition of securities directly from Company) and immediately thereafter beneficially owns thirty percent
(30%) or more of the combined voting power of all of the then outstanding Voting Securities, then a “Change in Control”
shall be deemed to have occurred for purposes of the foregoing clause (b).

 

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10.14.   
Sale, Merger, Exchange or Liquidation. Unless otherwise provided in the agreement for an Incentive, in the event
of an acquisition of the Company through the sale of substantially all of the Company’s assets or through a merger, exchange,
reorganization or liquidation of the Company or a similar event as determined by the Committee (collectively a “transaction”),
the Committee shall be authorized, in its sole discretion, to take any and all action it deems equitable under the circumstances,
including but not limited to any one or more of the following:

 

(a)   
providing that the Plan and all Incentives shall terminate and the holders of (i) all outstanding vested options shall receive,
in lieu of any shares of Common Stock they would be entitled to receive under such options, such stock, securities or assets, including
cash, as would have been paid to such participants if their options had been exercised and such participant had received Common
Stock immediately before such transaction (with appropriate adjustment for the exercise price, if any), (ii) SARs that entitle
the participant to receive Common Stock shall receive, in lieu of any shares of Common Stock each participant was entitled to receive
as of the date of the transaction pursuant to the terms of such Incentive, if any, such stock, securities or assets, including
cash, as would have been paid to such participant if such Common Stock had been issued to and held by the participant immediately
before such transaction, and (iii) any Incentive under this Agreement which does not entitle the participant to receive Common
Stock shall be equitably treated as determined by the Committee.

 

(b)  
providing that participants holding outstanding vested Common Stock based Incentives shall receive, with respect to each share
of Common Stock issuable pursuant to such Incentives as of the effective date of any such transaction, at the determination of
the Committee, cash, securities or other property, or any combination thereof, in an amount equal to the excess, if any, of the
Fair Market Value of such Common Stock on a date within ten days before the effective date of such transaction over the option
price or other amount owed by a participant, if any, and that such Incentives shall be cancelled, including the cancellation without
consideration of all options that have an exercise price below the per share value of the consideration received by the Company
in the transaction.

 

(c)   
providing that the Plan (or replacement plan) shall continue with respect to Incentives not cancelled or terminated as of the effective
date of such transaction and provide to participants holding such Incentives the right to earn their respective Incentives on a
substantially equivalent basis (taking into account the transaction and the number of shares or other equity issued by such successor
entity) with respect to the equity of the entity succeeding the Company by reason of such transaction.

 

 

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(d)  
to the extent that the vesting of any Incentives is not accelerated pursuant to Section 10.13, providing that all unvested, unearned
or restricted Incentives, including but not limited to restricted stock for which restrictions have not lapsed as of the effective
date of such transaction, shall be void and deemed terminated, or, in the alternative, for the acceleration or waiver of any vesting,
earning or restrictions on any Incentive.

 

The Board
of Directors may restrict the rights of participants or the applicability of this Section 10.14 to the extent necessary to comply
with Section 16(b) of the 1934 Act, the Code or any other applicable law or regulation. The grant of an Incentive award pursuant
to the Plan shall not limit in any way the right or power of the Company to make adjustments, reclassifications, reorganizations
or changes of its capital or business structure or to merge, exchange or consolidate or to dissolve, liquidate, sell or transfer
all or any part of its business or assets.

 

10.15.   
Definition of Fair Market Value. For purposes of this Plan, the “Fair Market Value” of a share of Common
Stock at a specified date shall, unless otherwise expressly provided in this Plan, be the amount which the Committee determines
in good faith to be 100% of the fair market value of such a share as of the date in question. Notwithstanding the foregoing:

 

(a)   
If such shares are listed on a U.S. securities exchange, then Fair Market Value shall be determined by reference to the last sale
price of a share of Common Stock on such U.S. securities exchange on the applicable date. If such U.S. securities exchange is closed
for trading on such date, or if the Common Stock does not trade on such date, then the last sale price used shall be the one on
the date the Common Stock last traded on such U.S. securities exchange.

 

(b)  
If such shares are publicly traded but are not listed on a U.S. securities exchange, then Fair Market Value shall be determined
by reference to the trading price of a share of Common Stock on such date (or, if the applicable market is closed on such date,
the last date on which the Common Stock was publicly traded), by a method consistently applied by the Committee.

 

(c)   
If such shares are not publicly traded, then the Committee’s determination will be based upon a good faith valuation of the
Company’s Common Stock as of such date, which shall be based upon such factors as the Committee deems appropriate. The valuation
shall be accomplished in a manner that complies with Code Section 409A and shall be consistently applied to Incentives under the
Plan.

 

10.16.   
Definition of Grant Date. For purposes of this Plan, the “Grant Date” of an Incentive shall be the date
on which the Committee approved the award or, if later, the date established by the Committee as the date of grant of the Incentive.

 

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10.17.   
Compliance with Code Section 409A.

 

(a)   
Except to the extent such acceleration or deferral is permitted by the requirements of Code Section 409A, neither the Committee
nor a participant may accelerate or defer the time or schedule of any payment of, or the amount scheduled to be paid under, an
Incentive that constitutes Deferred Compensation (as defined in paragraph(d) below); provided, however, that payment shall be permitted
if it is in accordance with a “specified time” or “fixed schedule” or on account of “separation from
service,” “disability,” death, “change in control” or “ unforeseeable emergency” (as
those terms are defined under Code Section 409A) that is specified in the agreement evidencing the Incentive.

 

(b)  
Notwithstanding anything in this Plan, unless the agreement evidencing the Incentive specifically provides otherwise, if a participant
is treated as a Specified Employee (as defined in paragraph (d) and as determined under Code Section 409A by the Committee in good
faith) as of the date of his or her “separation from service” as defined for purposes of Code Section 409A, the Company
may not make payment to the participant of any Incentive that constitutes Deferred Compensation, earlier than 6 months following
the participant’s separation from service (or if earlier, upon the Specified Employee’s death), except as permitted
under Code Section 409A. Any payments that otherwise would be payable to the Specified Employee during the foregoing 6-month period
will be accumulated and payment delayed until the first date after the 6-month period. The Committee may specify in the Incentive
agreement, that the amount of the Deferred Compensation delayed under this paragraph shall accumulate interest, earnings or Dividend
Equivalents (as applicable) during the period of such delay.

 

(c)   
The Committee may, however, reform any provision in an Incentive that is intended to comply with (or be exempt from) Code Section
409A, to maintain to the maximum extent practicable the original intent of the applicable provision without violating the provisions
of Code Section 409A.

 

(d)  
For purposes of this Section 10.17, "Deferred Compensation" means any Incentive under this Plan that provides for the
“deferral of compensation” under a “nonqualified deferred compensation plan” (as those terms are defined
under Code Section 409A) and that would be subject to the taxes specified in Code Section 409A(a)(1) if and to the extent that
the Plan and the agreement evidencing the Incentive do not meet or are not operated in compliance with the requirements of paragraphs
(a)(2), (a)(3) and (a)(4) of Code Section 409A . Deferred Compensation shall not include any amount that is otherwise exempt from
the requirements of Code Section 409A. A “Specified Employee” means a Participant who is a “key employee”
as described in Code Section 416 (i) (disregarding paragraph (5) thereof) at any time during the Company’s fiscal year ending
on January 31, or such other “identification date” that applies consistently for all plans of the Company that provide
“deferred compensation” that is subject to the requirements of Code Section 409A. Each participant will be identified
as a Specified Employee in accordance with Code Section 409A, including with respect to the merger of the Company with any other
company or any spin-off or similar transaction, and such identification shall apply for the 12-month period commencing on the first
day of the fourth month following the identification date. Notwithstanding the foregoing, no participant shall be a Specified Employee
unless the stock of the Company (or other member of a “controlled group of corporations” as determined under Code Section
1563) is publicly traded on an established securities market (or otherwise) as of the date of the participant’s “separation
from service” as defined in Code Section 409A.

 

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10.18.   
Prior Plan. Notwithstanding the adoption of this Plan by the Board of Directors and its approval by the shareholders,
the Company’s 2008 Equity Incentive Plan, as it has been amended from time to time (the “Prior Plan”), shall
remain in effect, and all grants and awards made under the Prior Plan shall be governed by the terms of the Prior Plan. From and
after the Effective Date, no further grants and awards shall be made under the Prior Plan.

 

Approved by the Board
of Directors on August 13, 2012.

 

Approved by the shareholders
on September 20, 2012.

 

 

    	17

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