Document:

FORBEARANCE
AGREEMENT

 

This
Forbearance Agreement (this “Agreement”) is entered into as of October 29, 2014 by and between Iliad
Research and Trading, L.P., a Utah limited partnership (formerly known as Iliad Research and Trading, L.P., a Delaware limited
partnership) (“Buyer”), and Seaniemac International, Ltd., a Nevada corporation (the “Company”).
Capitalized terms used in this Agreement without definition shall have the meanings given to them in the Note (defined below).

 

A.
The Company previously sold and issued to Buyer that certain Secured Convertible Promissory Note dated December 2, 2013 in the
original principal amount of $667,500.00 (the “Note”) pursuant to that certain Securities Purchase Agreement
dated December 2, 2013 by and between Buyer and the Company (the “Purchase Agreement,” and together
with the Note and all other documents entered into in conjunction therewith, the “Transaction Documents”).

 

B.
As set forth in more detail in a certain Event of Default Redemption Notice given by Buyer to the Company on October 1, 2014 (the
“Redemption Notice”), the Company failed to timely file its Form 10-K for the period ending December
31, 2013, which failure constitutes an Event of Default under the Note (the “First Default”).

 

C.
As set forth in more detail in the Redemption Notice, the Company also failed to pay to Buyer the Installment Amount that was
due and payable under the Note on June 5, 2014 (the “Second Default,” and together with the First Default,
the “Defaults”).

 

D.
As a result of the First Default, the interest rate on the Outstanding Balance increased to 22% per annum as of April 1, 2014
(the “Interest Rate Increase”) and the Outstanding Balance also increased by an amount equal to the
Default Premium of 125% (the “First Balance Increase”).

 

E.
As a result of the Second Default, the Outstanding Balance again increased by an amount equal to the Default Premium of 125% (the
“Second Balance Increase,” and together with the First Balance Increase, the “Balance Increases”).

 

F.
No new or additional consideration is being provided in connection with this Agreement other than the modification of terms as
provided herein.

 

G.
Buyer has agreed, subject to the terms, conditions and understandings expressed in this Agreement, to refrain and forbear temporarily
from exercising and enforcing remedies against the Company with respect to the Defaults as provided in this Agreement.

 

NOW
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree
as follows:

 

1.
Recitals and Definitions. Each of the parties hereto acknowledges and agrees that the recitals set forth above in this
Agreement are true and accurate, are contractual in nature, and are hereby incorporated into and made a part of this Agreement.

 

    	 

    	 

    

 

2.
Forbearance. Subject to the terms, conditions and understandings contained in this Agreement, and other than with respect
to the Balance Increases, Buyer hereby agrees to refrain and forbear from exercising and enforcing its remedies under the Note,
any of the Transaction Documents or under applicable laws, with respect to the Defaults, for the period (the “Forbearance
Period”) beginning on the date hereof and ending on December 10 2014 (the “Forbearance”),
including without limitation, enforcing the Interest Rate Increase during the Forbearance Period. For the avoidance of doubt,
the Forbearance shall only apply to the Defaults and not to any Events of Default that may occur subsequent to the date hereof
or any Event of Default (other than the Defaults) that occurred prior to the date hereof.

 

3.
Buyer Note Offset. The Company acknowledges that in conjunction herewith, Buyer hereby elects to exercise the Holder Offset
Right set forth in Section 32 of the Note (the “Offset”), pursuant to which Buyer is hereby deducting
amounts owed by the Company under the Note from the amounts otherwise owed by Buyer under the Buyer Notes, such that following
such Offset, each of the Buyer Notes shall be terminated and the Outstanding Balance of the Note shall correspondingly be reduced
by the aggregate outstanding balance of the Buyer Notes. In furtherance thereof, together with its execution of this Agreement,
the Company agrees to deliver to Buyer any original copies of the Buyer Notes in its possession to facilitate Buyer’s cancellation
thereof. In the event the Company does not have possession of any or all of the Buyer Notes, the Company hereby represents and
warrants to Buyer that (i) it owns all right, title and interest in and to the Buyer Notes and no other person or entity has any
claim, right, or interest in or to the Buyer Notes by virtue of any sale, assignment, encumbrance, hypothecation, transfer or
pledge thereof, (ii) the Buyer Notes have been lost, destroyed or otherwise are not in the Company’s possession, and (iii)
the Company agrees to indemnify and defend Buyer and its successors and assigns, and to hold the same harmless from and against
any and all cost, claim, liability, loss or damage whatsoever which the same may suffer as a result of the Company’s inability
to locate the Buyer Notes.

 

4.
Ratification of the Note. The Note shall be and remains in full force and effect in accordance with its terms, and is hereby
ratified and confirmed in all respects. The Company acknowledges that it is unconditionally obligated to pay the remaining balance
of the Note and represents that such obligation is not subject to any defenses, rights of offset or counterclaims. Subject to
the terms of Section 5 below, after giving effect to the terms of the Forbearance described herein, the Offset, and the application
of the Second Balance Increase, the Outstanding Balance shall be deemed and affirmed to be equal to $300,000.00 and interest shall
accrue on such amount at the rate of 8% per annum, as set forth in Section 2 of the Note, as of the date hereof. No forbearance
or waiver other than as expressly set forth herein may be implied by this Agreement. Except as expressly set forth herein, the
execution, delivery, and performance of this Agreement shall not operate as a waiver of, or as an amendment to, any right, power
or remedy of Buyer under the Note or the Transaction Documents, as in effect prior to the date hereof.

 

5.
Failure to Comply. The Company understands that the Forbearance shall terminate immediately upon the occurrence of any
material breach of this Agreement or upon the occurrence of any Event of Default after the date hereof (or any Event of Default
other than the Defaults that occurred prior to the date hereof) and that in any such case, Buyer may seek all recourse available
to it under the terms of the Note, this Agreement, any other Transaction Document, or applicable law. For the avoidance of any
doubt, the termination of the Forbearance pursuant to this Section shall not terminate, limit or modify any other provision of
this Agreement (including without limitation Section 4 hereof). In addition, notwithstanding the parties affirmation of the Outstanding
Balance in Section 4 above, in the event the Company fails to cure the First Default prior to the conclusion of the Forbearance
Period by becoming current with all of its filing requirements under the 1934 Act and as are necessary to enable Buyer to sell
shares of the Company’s Common Stock under Rule 144, the Company agrees that as of the conclusion of the Forbearance Period,
the Outstanding Balance shall be deemed and affirmed to be equal to $380,000.00, which increase in the Outstanding Balance reflects
the application of the First Balance Increase, and interest shall accrue on such Outstanding Balance at the Default Interest Rate
until such time that the First Default is cured.

 

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6.
Section 8 Election. Buyer hereby acknowledges that the Second Default constitutes a Payment Default under the Note. As
a result thereof, Buyer has the ability to make a Section 8 Election under Section 8.5 of the Note. In furtherance thereof, by
their execution below, each of Buyer and the Company acknowledges and agrees that Buyer is hereby making, and for all purposes
shall be deemed to have made as of the date hereof, a Section 8 Election pursuant to Section 8.5 of the Note. Accordingly, effective
as of the date hereof, the Company acknowledges that Buyer may determine, in its sole discretion, the Installment Dates and the
Installment Amounts under the Note, as set forth in more detail in Section 8.5 of the Note. Notwithstanding the foregoing, in
the event the Company becomes current with all of its filing requirements under the 1934 Act and as are necessary to enable Buyer
to sell shares of the Company’s Common Stock under Rule 144 prior to the conclusion of the Forbearance Period, Buyer agrees
that thereafter, notwithstanding its Section 8 Election made herein, the Installment Amount for any calendar month may not exceed
the Installment Amount provided for in Section 8 of the Note unless and until the occurrence of a new Payment Default or any event
of default under this Agreement, upon the occurrence of which Buyer shall have all rights and remedies available to it under the
Note, including the ability to determine the Installment Amount without limitation as set forth in Section 8.5 of the Note. For
the avoidance of doubt, nothing in the previous sentence shall limit or restrict Buyer’s ability to determine the Installment
Date or Installment Dates in any given calendar month or to designate multiple Installment Dates in any given calendar month,
so long as the total Installment Amount of all installments in any given calendar month does not exceed the Installment Amount
provided for in Section 8 of the Note (subject to the conditions set forth in this Section 6).

 

7.
Share Reserve. As an additional condition to Buyer’s agreement to enter into this Agreement, the Company agrees to
establish a Share Reserve of 100,000,000 authorized but unissued shares of Common Stock for the benefit of Buyer on or before
the date that is five (5) Trading Days from the date hereof.

 

8.
Representations, Warranties and Agreements. In order to induce Buyer to enter into this Agreement, the Company, for itself,
and for its affiliates, successors and assigns, hereby acknowledges, represents, warrants and agrees as follows:

 

(a)
The Company has full power and authority to enter into this Agreement and to incur and perform all obligations and covenants contained
herein, all of which have been duly authorized by all proper and necessary action. No consent or approval of the Company, and
no consent, approval, filing or registration with or notice to any governmental authority is required as a condition to the validity
of this Agreement or the performance of any of the obligations of the Company hereunder.

 

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(b)
Any Event of Default which may have occurred under the Note has not been, is not hereby, and shall not be deemed to be waived
by Buyer, expressly, impliedly, through course of conduct or otherwise except upon full satisfaction of the Company’s obligations
under this Agreement. The agreement of Buyer to refrain and forbear from exercising any rights and remedies by reason of any existing
default or any future default shall not constitute a waiver of, consent to, or condoning of, any other existing or future default.
For the avoidance of any doubt, the Forbearance described herein only applies to the Defaults, and shall not constitute a waiver
or forbearance of any other rights or remedies available to Buyer with respect to any other defaults under the Note or other breach
of the Transaction Documents by the Company.

 

(c)
All understandings, representations, warranties and recitals contained or expressed in this Agreement are true, accurate, complete,
and correct in all respects; and no such understanding, representation, warranty, or recital fails or omits to state or otherwise
disclose any material fact or information necessary to prevent such understanding, representation, warranty, or recital from being
misleading. The Company acknowledges and agrees that Buyer has been induced in part to enter into this Agreement based upon Buyer’s
justifiable reliance on the truth, accuracy, and completeness of all understandings, representations, warranties, and recitals
contained in this Agreement. There is no fact known to the Company or which should be known to the Company which the Company has
not disclosed to Buyer on or prior to the date hereof which would or could materially and adversely affect the understandings
of Buyer expressed in this Agreement or any representation, warranty, or recital contained in this Agreement.

 

(d)
Except as expressly set forth in this Agreement, the Company acknowledges and agrees that neither the execution and delivery of
this Agreement nor any of the terms, provisions, covenants, or agreements contained in this Agreement shall in any manner release,
impair, lessen, modify, waive, or otherwise affect the liability and obligations of the Company under the terms of the Note or
any of the other Transaction Documents.

 

(e)
The Company has no defenses, affirmative or otherwise, rights of setoff, rights of recoupment, claims, counterclaims, actions
or causes of action of any kind or nature whatsoever against Buyer, directly or indirectly, arising out of, based upon, or in
any manner connected with, the transactions contemplated hereby, whether known or unknown, which occurred, existed, was taken,
permitted, or begun prior to the execution of this Agreement and occurred, existed, was taken, permitted or begun in accordance
with, pursuant to, or by virtue of any of the terms or conditions of the Transaction Documents. To the extent any such defenses,
affirmative or otherwise, rights of setoff, rights of recoupment, claims, counterclaims, actions or causes of action exist or
existed, such defenses, rights, claims, counterclaims, actions and causes of action are hereby waived, discharged and released.
The Company hereby acknowledges and agrees that the execution of this Agreement by Buyer shall not constitute an acknowledgment
of or admission by Buyer of the existence of any claims or of liability for any matter or precedent upon which any claim or liability
may be asserted.

 

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(f)
The Company hereby acknowledges that it has freely and voluntarily entered into this Agreement
after an adequate opportunity and sufficient period of time to review, analyze, and discuss (i) all terms and conditions of this
Agreement, (ii) any and all other documents executed and delivered in connection with the transactions contemplated by this Agreement,
and (iii) all factual and legal matters relevant to this Agreement and/or any and all such other documents, with counsel freely
and independently selected by the Company (or had the opportunity to be represented by counsel). The Company further acknowledges
and agrees that it has actively and with full understanding participated in the negotiation of this Agreement and all other documents
executed and delivered in connection with this Agreement after consultation and review with its counsel (or had the opportunity
to be represented by counsel), that all of the terms and conditions of this Agreement and the other documents executed and delivered
in connection with this Agreement have been negotiated at arm’s-length, and that this Agreement and all such other documents
have been negotiated, prepared, and executed without fraud, duress, undue influence, or coercion of any kind or nature whatsoever
having been exerted by or imposed upon any party by any other party. No provision of this Agreement or such other documents shall
be construed against or interpreted to the disadvantage of any party by any court or other governmental or judicial authority
by reason of such party having or being deemed to have structured, dictated, or drafted such provision.

 

(g)
There are no proceedings or investigations pending or threatened before any court or arbitrator or before or by, any governmental,
administrative, or judicial authority or agency, or arbitrator, against the Company.

 

(h)
There is no statute, regulation, rule, order or judgment and no provision of any mortgage, indenture, contract or other agreement
binding on the Company, which would prohibit or cause a default under or in any way prevent the execution, delivery, performance,
compliance or observance of any of the terms and conditions of this Agreement and/or any of the other documents executed and delivered
in connection with this Agreement.

 

(i)
The Company is solvent as of the date of this Agreement, and none of the terms or provisions of this Agreement shall have the
effect of rendering the Company insolvent. The terms and provisions of this Agreement and all other instruments and agreements
entered into in connection herewith are being given for full and fair consideration and exchange of value.

 

(j)
To the best of its belief, after diligent inquiry, the Company represents and warrants that, as of the date hereof, no other Event
of Default under the Note (nor any material breach by the Company under any of the other Transaction Documents) exists.

 

(k)
In the event the Company successfully cures the First Default during the Forbearance Period, and thereby avoids application of
the First Balance Increase described in Section 5 above, then in such event the Company acknowledges that the Default Adjustment
described in Section 4.3(a) of the Note will have only been applied with respect to one Event of Default (the Second Default,
as set forth in Section 4 above) and may still be applied to one more Event of Default to the extent any Event of Default occurs
after the date hereof or Buyer becomes aware of any Event of Default (other than the Defaults) that occurred prior to the date
hereof.

 

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9.
Headings. The headings contained in this Agreement are for reference purposes only and do not affect in any way the meaning
or interpretation of this Agreement.

 

10.
Governing Law; Venue. This Agreement shall be governed by and interpreted in accordance with the laws of the State of Utah
without regard to the principles of conflict of laws. Each party consents to and expressly agrees that the exclusive venue for
Arbitration (as defined in Exhibit A) of any dispute arising out of or relating to this Agreement or any Transaction
Document or the relationship of the parties or their affiliates shall be in Salt Lake County or Utah County, Utah. Without modifying
the parties obligations to resolve disputes hereunder or under any Transaction Document pursuant to the Arbitration Provisions
(as defined below), each party hereto submits to the exclusive jurisdiction of any state or federal court sitting in Salt Lake
County, Utah in any proceeding arising out of or relating to this Agreement and agrees that all Claims (as defined in Exhibit
A) in respect of the proceeding may only be heard and determined in any such court and hereby expressly submits to the
exclusive personal jurisdiction and venue of such court for the purposes hereof and expressly waives any claim of improper venue
and any claim that such courts are an inconvenient forum. Each party hereto hereby irrevocably consents to the service of process
of any of the aforementioned courts in any such proceeding by the mailing of copies thereof by registered or certified mail, postage
prepaid, to its address as set forth in the Purchase Agreement, such service to become effective ten (10) days after such mailing.
THE COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION
OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

11.
Arbitration. The parties shall submit all Claims arising under this Agreement or any Transaction Document or other agreements
between the parties and their affiliates to binding arbitration pursuant to the arbitration provisions set forth in Exhibit
A attached hereto (the “Arbitration Provisions”). The parties hereby acknowledge and agree that
the Arbitration Provisions are unconditionally binding on the parties hereto and are severable from all other provisions of this
Agreement. Any capitalized term not defined in the Arbitration Provisions shall have the meaning set forth in this Agreement.
By executing this Agreement, the Company represents, warrants and covenants that the Company has reviewed the Arbitration Provisions
carefully, consulted with legal counsel about such provisions (or waived its right to do so), understands that the Arbitration
Provisions are intended to allow for the expeditious and efficient resolution of any dispute hereunder, agrees to the terms and
limitations set forth in the Arbitration Provisions, and that the Company will not take a position contrary to the foregoing representations.
The Company acknowledges and agrees that Buyer may rely upon the foregoing representations and covenants of the Company regarding
the Arbitration Provisions.

 

12.
Counterparts. This Agreement may be executed in any number of counterparts with the same effect as if all signing parties
had signed the same document. All counterparts shall be construed together and constitute the same instrument. The exchange of
copies of this Agreement and of signature pages by facsimile transmission or other electronic transmission (including email) shall
constitute effective execution and delivery of this Agreement as to the parties and may be used in lieu of the original Agreement
for all purposes. Signatures of the parties transmitted by facsimile transmission or other electronic transmission (including
email) shall be deemed to be their original signatures for all purposes.

 

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13.
Attorneys’ Fees. In the event of any arbitration or action at law or in equity to enforce or interpret the terms
of this Agreement, the parties agree that the party who is awarded the most money shall be deemed the prevailing party for all
purposes and shall therefore be entitled to an additional award of the full amount of the attorneys’ fees and expenses paid
by such prevailing party in connection with the arbitration, litigation and/or dispute without reduction or apportionment based
upon the individual claims or defenses giving rise to the fees and expenses. Nothing herein shall restrict or impair an arbitrator’s
or a court’s power to award fees and expenses for frivolous or bad faith pleading.

 

14.
Severability. If any part of this Agreement is construed to be in violation of any law, such part shall be modified to
achieve the objective of the parties to the fullest extent permitted and the balance of this Agreement shall remain in full force
and effect.

 

15.
Entire Agreement. This Agreement, together with the Transaction Documents, and all other documents referred to herein,
supersedes all other prior oral or written agreements between the Company, Buyer, its affiliates and persons acting on its behalf
with respect to the matters discussed herein, and this Agreement and the instruments referenced herein contain the entire understanding
of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein,
neither Buyer nor the Company makes any representation, warranty, covenant or undertaking with respect to such matters.

 

16.
Amendments. This Agreement may be amended, modified, or supplemented only by written agreement of the parties. No provision
of this Agreement may be waived except in writing signed by the party against whom such waiver is sought to be enforced.

 

17.
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective
successors and assigns. This Agreement or any of the severable rights and obligations inuring to the benefit of or to be performed
by Buyer hereunder may be assigned by Buyer to a third party, including its financing sources, in whole or in part. The Company
may not assign this Agreement or any of its obligations herein without the prior written consent of Buyer.

 

18.
Continuing Enforceability; Conflict Between Documents. Except as otherwise modified by this Agreement, each of the Note
and all of the other Transaction Documents shall remain in full force and effect, enforceable in accordance with all of its original
terms and provisions. This Agreement shall not be effective or binding unless and until it is fully executed and delivered by
Buyer and the Company. If there is any conflict between the terms of this Agreement, on the one hand, and the Note or any other
Transaction Document, on the other hand, the terms of this Agreement shall prevail.

 

19.
Time of Essence. Time is of the essence of this Agreement.

 

20.
Notices. Unless otherwise specifically provided for herein, all notices, demands or requests required or permitted under
this Agreement to be given to the Company or Buyer shall be given as set forth in the “Notices” section of the Purchase
Agreement.

 

21.
Further Assurances. Each party shall do and perform or cause to be done and performed, all such further acts and things,
and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably
request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions
contemplated hereby.

 

[Remainder
of page intentionally left blank]

 

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IN
WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first set forth above.

 

	 	COMPANY:
	 	 
	 	SEANIEMAC INTERNATIONAL, LTD.
	 	 
	 	By:	/s/
    Barry M. Brookstein
	 	Name:	Barry
    M. Brookstein   
	 	Title:	Chief
    Executive Officer

  

	 	BUYER:
	 	 
	 	ILIAD
RESEARCH AND TRADING, L.P.
	 	 	 
	 	By:	Iliad Management,
LLC, its General Partner

 

	 	By:	Fife Trading,
    Inc., its Manager

 

	 	By:	/s/
    John M. Fife
	 	 	John
    M. Fife, President

  

[Signature
Page to Forebearance Agreement]

 

    	 

    	 

    

 

EXHIBIT
A

 

ARBITRATION
PROVISIONS

 

1.
Dispute Resolution. For purposes of this Exhibit A, the term “Claims” means any
disputes, claims, demands, causes of action, liabilities, damages, losses, or controversies whatsoever arising from related to
or connected with the transactions contemplated the Agreement or in the Transaction Documents and any communications between the
parties related thereto, including without limitation any claims of mutual mistake, mistake, fraud, misrepresentation, failure
of formation, failure of consideration, promissory estoppel, unconscionability, failure of condition precedent, rescission, and
any statutory claims, tort claims, contract claims, or claims to void, invalidate or terminate the Agreement or any of the Transaction
Documents. The parties hereby agree that the arbitration provisions set forth in this Exhibit A (“Arbitration
Provisions”) are binding on the parties hereto and are severable from all other provisions in the Transaction Documents.
As a result, any attempt to rescind the Agreement or declare the Agreement or any Transaction Document invalid or unenforceable
for any reason is subject to these Arbitration Provisions. These Arbitration Provisions shall also survive any termination or
expiration of the Agreement.

 

2.
Arbitration. Except as otherwise provided herein, all Claims must be submitted to arbitration (“Arbitration”)
to be conducted exclusively in Salt Lake County, Utah or Utah County, Utah and pursuant to the terms set forth in these Arbitration
Provisions. The parties agree that the award of the arbitrator shall be final and binding upon the parties; shall be the sole
and exclusive remedy between them regarding any Claims, counterclaims, issues, or accountings presented or pleaded to the arbitrator;
and shall promptly be payable in United States dollars free of any tax, deduction or offset (with respect to monetary awards).
Any costs or fees, including without limitation attorneys’ fees, incident to enforcing the arbitrator’s award shall,
to the maximum extent permitted by law, be charged against the party resisting such enforcement. The award shall include default
interest on the terms set forth in the Note (“Default Interest”) both before and after the award. Judgment
upon the award of the arbitrator will be entered and enforced by a state court sitting in Salt Lake County, Utah. The parties
hereby incorporate herein the provisions and procedures set forth in the Utah Uniform Arbitration Act, U.C.A. § 78B-11-101
et seq. (as amended or superseded from time to time, the “Arbitration Act”). Pursuant to Section
78B-11-105 of the Arbitration Act, in the event of conflict between the terms of these Arbitration Provisions and the provisions
of the Arbitration Act, the terms of these Arbitration Provisions shall control.

 

3.
Arbitration Proceedings. Arbitration between the parties will be subject to the following procedures:

 

3.1.
Pursuant to Section 110 of the Arbitration Act, the parties agree that a party may initiate Arbitration by giving written notice
to the other party (“Arbitration Notice”) in the same manner that notice is permitted under the Agreement;
provided, however, that the Arbitration Notice may not be given by email or fax. Arbitration will be deemed initiated as
of the date that the Arbitration Notice is deemed delivered under the Agreement (the “Service Date”).
After the Service Date, information may be delivered, and notices may be given, by email or fax pursuant to the Agreement. The
Arbitration Notice must describe the nature of the controversy, the remedies sought, and the election to commence Arbitration
proceedings. All Claims in the Arbitration Notice must be pleaded consistent with the Utah Rules of Civil Procedure.

 

3.2.
Within ten (10) calendar days after the Service Date, Buyer shall select and submit to the Company the names of three arbitrators
that are designated as “neutrals” or qualified arbitrators by Utah ADR Services (http://www.utahadrservices.com)
(such three designated persons hereunder are referred to herein as the “Proposed Arbitrators”). For
the avoidance of doubt, each Proposed Arbitrator must be qualified as a “neutral” with Utah ADR Services. Within ten
(10) calendar days after Buyer has submitted to the Company the names of the Proposed Arbitrators, the Company must select, by
written notice to Buyer, one (1) of the Proposed Arbitrators to act as the arbitrator for the parties under these Arbitration
Provisions. If the Company fails to select one of the Proposed Arbitrators in writing within such 10-day period, then Buyer may
select the arbitrator from the Proposed Arbitrators by providing written notice of such selection to the Company. If Buyer fails
to identify the Proposed Arbitrators within the time period required above, then the Company may at any time prior to Buyer designating
the Proposed Arbitrators, select the names of three arbitrators that are designated as “neutrals” or qualified arbitrators
by Utah ADR Service by written notice to Buyer. Buyer may then, within ten (10) calendar days after the Company has submitted
notice of its selected arbitrators to Buyer, select, by written notice to the Company, one (1) of the selected arbitrators to
act as the arbitrator for the parties under these Arbitration Provisions. If Buyer fails to select in writing and within such
10-day period one of the three arbitrators selected by the Company, then the Company may select the arbitrator from its three
previously selected arbitrators by providing written notice of such selection to Buyer. Subject to subparagraph 3.12 below, the
cost of the arbitrator must be paid equally by both parties; provided, however, that if one party refuses or fails to pay
its portion of the arbitrator fee, then the other party can advance such unpaid amount (subject to the accrual of Default Interest
thereupon), with such amount added to or subtracted from, as applicable, the award granted by the arbitrator. If Utah ADR Services
ceases to exist or to provide a list of neutrals, then the arbitrator shall be selected under the then prevailing rules of the
American Arbitration Association. The date that the selected arbitrator agrees in writing to serve as the arbitrator hereunder
is referred to herein as the “Arbitration Commencement Date”.

 

    	 

    	 

    

 

3.3.
An answer and any counterclaims to the Arbitration Notice, which must be pleaded consistent with the Utah Rules of Civil Procedure,
shall be required to be delivered to the other party within twenty (20) calendar days after the Service Date. Upon request, the
arbitrator is hereby instructed to render a default award, consistent with the relief requested in the Arbitration Notice, against
a party that fails to submit an answer within such time period.

 

3.4.
The party that delivers the Arbitration Notice to the other party shall have the option to also commence legal proceedings exclusively
with any state court sitting in Salt Lake County, Utah (“Litigation Proceedings”), subject to the following:
(i) the complaint in the Litigation Proceedings is to be substantially similar to the claims set forth in the Arbitration Notice,
provided that an additional cause of action to compel arbitration will also be included therein, (ii) so long as the other party
files an answer to the complaint in the Litigation Proceedings and an answer to the Arbitration Notice, the Litigation Proceedings
will be stayed pending an award of the arbitrator hereunder, (iii) if the other party fails to file an answer in the Litigation
Proceedings or an answer in the Arbitration Proceedings, then the party initiating Arbitration shall be entitled to a default
judgment consistent with the relief requested, to be entered in the Litigation Proceedings, and (iv) any legal or procedural issue
arising under the Arbitration Act that requires a decision of a court of competent jurisdiction may be determined in the Litigation
Proceedings. Any award of the arbitrator may be entered in such Litigation Proceedings pursuant to the Arbitration Act.

 

3.5.
Pursuant to Section 118(8) of the Arbitration Act, the parties agree that discovery shall be conducted in accordance with the
Utah Rules of Civil Procedure; provided, however, that incorporation of such rules will in no event supersede the Arbitration
Provisions set forth herein, including without limitation the time limitation set forth in Paragraph 3.9 below, and the following:

 

(a)
Discovery will only be allowed if the likely benefits of the proposed discovery outweigh the burden or expense, and the discovery
sought is likely to reveal information that will satisfy a specific element of a claim or defense already pleaded in the Arbitration.
The party seeking discovery shall always have the burden of showing that all of the standards and limitations set forth in these
Arbitration Provisions are satisfied. The scope of discovery in the Arbitration proceedings shall also be limited as follows:

 

(i)
To facts directly connected with the transactions contemplated by the Agreement.

 

(ii)
To facts and information that cannot be obtained from another source that is more convenient, less burdensome or less expensive.

 

(b)
No party shall be allowed (i) more than fifteen (15) interrogatories (including discrete subparts), (ii) more than fifteen (15)
requests for admission (including discrete subparts), (iii) more than ten (10) document requests (including discrete subparts),
or (iv) more than three depositions (excluding expert depositions) for a maximum of seven (7) hours per deposition.

 

3.6.
Any party submitting any written discovery requests, including interrogatories, requests for production, subpoenas to a party
or a third party, or requests for admissions, must prepay the estimated attorneys’ fees and costs, as determined by the
arbitrator, before the responding party has any obligation to produce or respond.

 

    	 

    	 

    

 

(a)
All discovery requests must be submitted in writing to the arbitrator and the other party before issuing or serving such discovery
requests. The party issuing the written discovery requests must include with such discovery requests a detailed explanation of
how the proposed discovery requests satisfy the requirements of these Arbitration Provisions and the Utah Rules of Civil Procedure.
Any party will then be allowed, within ten (10) calendar days of receiving the proposed discovery requests, to submit to the arbitrator
an estimate of the attorneys’ fees and costs associated with responding to such written discovery requests and a written
challenge to each applicable discovery request. After receipt of an estimate of attorneys’ fees and costs and/or challenge(s)
to one or more discovery requests, the arbitrator will make a finding as to the likely attorneys’ fees and costs associated
with responding to the discovery requests and issue an order that (A) requires the requesting party to prepay the attorneys’
fees and costs associated with responding to the discovery requests, and (B) requires the responding party to respond to the discovery
requests as limited by the arbitrator within a certain period of time after receiving payment from the requesting party. If a
party entitled to submit an estimate of attorneys’ fees and costs and/or a challenge to discovery requests fails to do so
within such 10-day period, the arbitrator will make a finding that (A) there are no attorneys’ fees or costs associated
with responding to such discovery requests, and (B) the responding party must respond to such discovery requests (as may be limited
by the arbitrator) within a certain period of time as determined by the arbitrator.

 

(b)
In order to allow a written discovery request, the arbitrator must find that the discovery request satisfies the standards set
forth in these Arbitration Provisions and the Utah Rules of Civil Procedure. The arbitrator must strictly enforce these standards.
If a discovery request does not satisfy any of the standards set forth in these Arbitration Provisions or the Utah Rules of Civil
Procedure, the arbitrator may modify such discovery request to satisfy the applicable standards, or strike such discovery request
in whole or in part.

 

(c)
Discovery deadlines will be set forth in a scheduling order issued by the arbitrator. The parties hereby authorize and direct
the arbitrator to take such actions and make such rulings as may be necessary to carry out the parties’ intent for the arbitration
proceedings to be efficient and expeditious.

 

3.7.
Each party may submit expert reports (and rebuttals thereto), provided that such reports must be submitted by the deadlines established
by the arbitrator. Expert reports must contain the following: (a) a complete statement of all opinions the expert will offer at
trial and the basis and reasons for them; (b) the expert’s name and qualifications, including a list of all publications
within the preceding 10 years, and a list of any other cases in which the expert has testified at trial or in a deposition or
prepared a report within the preceding 10 years; and (c) the compensation to be paid for the expert’s study and testimony.
The parties are entitled to depose any other party’s expert witness one time for no more than 4 hours. An expert may not
testify in a party’s case-in-chief concerning any matter not fairly disclosed in the expert report.

 

3.8.
All information disclosed by either party during the Arbitration process (including without limitation information disclosed during
the discovery process) shall be considered confidential in nature. Each party agrees not to disclose any confidential information
received from the other party during the discovery process unless (i) prior to or after the time of disclosure such information
becomes public knowledge or part of the public domain, not as a result of any inaction or action of the receiving party, (ii)
such information is required by a court order, subpoena or similar legal duress to be disclosed if such receiving party has notified
the other party thereof in writing and given it a reasonable opportunity to obtain a protective order from a court of competent
jurisdiction prior to disclosure; or (iii) disclosed to the receiving party’s agents, representatives and legal counsel
on a need to know basis who each agree in writing not to disclose such information to any third party. Pursuant to Section 118(5)
of the Arbitration Act, the arbitrator is hereby authorized and directed to issue a protective order to prevent the disclosure
of privileged information and confidential information upon the written request of either party.

 

    	 

    	 

    

 

3.9.
The parties hereby authorize and direct the arbitrator to take such actions and make such rulings as may be necessary to carry
out the parties’ intent for the arbitration proceedings to be efficient and expeditious. Pursuant to Section 120 of the
Arbitration Act, the parties hereby agree that an award of the arbitrator must be made within 150 days after the Arbitration Commencement
Date. The arbitrator is hereby authorized and directed to hold a scheduling conference within ten (10) calendar days after the
Arbitration Commencement Date in order to establish a scheduling order with various binding deadlines for discovery, expert testimony,
and the submission of documents by the parties to enable the arbitrator to render a decision prior to the end of such 150-day
period. The Utah Rules of Evidence will apply to any final hearing before the arbitrator.

 

3.10.
The arbitrator shall have the right to award or include in the arbitrator’s award any relief which the arbitrator deems
proper under the circumstances, including, without limitation, specific performance and injunctive relief, provided that the arbitrator
may not award exemplary or punitive damages.

 

3.11.
If any part of these Arbitration Provisions is found to violate applicable law or to be illegal, then such provision shall be
modified to the minimum extent necessary to make such provision enforceable under applicable law.

 

3.12.
The arbitrator is hereby directed to require the losing party to (i) pay the full amount of the costs and fees of the arbitrator,
and (ii) reimburse the prevailing party the reasonable attorneys’ fees, arbitrator costs, deposition costs, and other discovery
costs incurred by the prevailing party.

 

[Remainder
of page intentionally left blank]ex-10.1

 

 EXHIBIT 10.1
 

 COMMON STOCK PURCHASE AGREEMENT
 

 THIS COMMON STOCK PURCHASE AGREEMENT (“Agreement”), dated as of November 25, 2014, is between BLUE EARTH, INC., a Nevada corporation (the “Company”), and the Jackson Investment Group LLC, a Georgia limited liability company (the “Purchaser”).
 

 W I T N E S S E T H:
 

 WHEREAS, the Company desires to issue and sell to the Purchaser restricted shares of the Company’s common stock, par value $.001 per share (the “Common Stock”); and
 

 WHEREAS, the Purchaser desires to purchase and subscribe for shares of Common Stock, subject to the terms and conditions and for the consideration set forth herein.
 

 NOW, THEREFORE, in consideration of the foregoing and of the mutual agreements hereinafter set forth, the Company and Purchaser hereby agree as follows:
 

 Section 1.
 Authorization, Purchase and Sale of the Shares.  Subject to the terms and conditions set forth herein, at the closing of the issuance and purchase of the Common Stock, the Purchaser shall pay to the Company an aggregate amount equal to $10,000,000 (the “Purchase Price”) and the Company shall deliver to the Purchaser one or more stock certificates representing 10,000,000 shares of Common Stock (the “Shares”).  Any required federal, state and local transfer taxes, if any, shall be paid by the Company.
 

 Section 2.
 Closing.  Subject to the terms and conditions herein, the closing for the Shares shall take place at the offices of the Company, on or prior to November 26, 2014, as shall be mutually agreed upon by the Company and the Purchaser (the “Closing”).  The Closing, and all transactions to occur at the Closing, shall be deemed to have taken place at, and shall be effective as of the close of business, 5:00 p.m., Pacific Time, on the date of the Closing (the “Closing Date”).
 

 Section 3.
 Representations and Warranties of the Company.  The Company hereby represents and warrants to the Purchaser as follows:
 

 i)
 Corporate Status.  The Company and each of the Company’s Subsidiaries (as hereinafter defined) (i) are duly organized, validly existing and in good standing under the laws of the state of their respective formation, (ii) have all necessary corporate power and authority to own, operate or lease the properties and assets now owned, operated or leased by the Company or each of the Company’s Subsidiaries, as the case may be, and to carry on the business of the Company or each of the Company’s Subsidiaries, as the case may be, as it is now being conducted, and (iii) is duly licensed or qualified and in good standing as a foreign corporation authorized to do business in each jurisdiction wherein the character of the properties owned or leased by the Company or
 

 1
 

 
 each of the Company’s Subsidiaries, as the case may be, and/or the nature of the activities conducted by the Company or each of the Company’s Subsidiaries, as the case may be, makes such licensing or qualification necessary, except where the failure to be so licensed or qualified and in good standing would not prevent the Company from performing any of its material obligations under this Agreement and would not have a material adverse effect on the business, operations or financial condition of the Company and the Company’s Subsidiaries, taken as a whole (a “Material Adverse Effect”).
 

 ii)
 Capitalization.  The capitalization of the Company, including its authorized capital stock, the number of shares issued and outstanding, the number of shares issuable and reserved for issuance pursuant to any existing equity incentive plan, the number of shares issuable and reserved for issuance pursuant to securities exercisable for, or convertible into or exchangeable for any shares of the Common Stock is set forth on Schedule 3.2 hereto.  All outstanding shares of capital stock of the Company have been validly issued, fully paid and non-assessable.  The Company or any of the wholly-owned Company’s subsidiaries (collectively referred to as the “Company Subsidiaries”), own all of the capital stock of each Company Subsidiary, which capital stock is validly issued, fully paid and non-assessable, and no shares of the capital stock of the Company or any of the Company Subsidiaries are subject to preemptive rights or any other similar rights of the shareholders of the Company or any of the Company’s Subsidiaries or any lien, mortgages, pledge, assignment, security interest, easement or other encumbrance (“Lien”) created by or through the Company or any of the Company’s Subsidiaries.  Except as disclosed on Schedule 3.2 or as contemplated herein, there are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into or exercisable or exchangeable for, any shares of capital stock of the Company or any of the Company‘s Subsidiaries, or arrangements by which the Company or any of the Company’s Subsidiaries is or may become bound to issue additional shares of capital stock of the Company or any of the Company‘s Subsidiaries (whether pursuant to anti-dilution, “reset” or other similar provisions). 
 

 iii)
 Financial Statements.  The Company’s consolidated financial statements as of and for the year ended December 31, 2013 (the “2013 Financial Statements”) as contained in the Company’s Annual Report on Form 10-K, as amended, last filed with the Securities and Exchange Commission (“SEC”) on May 12, 2014 were prepared in accordance with generally accepted accounting principles (“GAAP”) consistently applied at the times and during the periods involved, except as may be otherwise indicated in the 2013 Financial Statements or the notes thereto and fairly present in all material respects the consolidated financial position of the Company and the Company’s Subsidiaries as of the date thereof and the consolidated results of operations and cash flows for the year then ended.  The 2013 Financial Statements have been audited by HJ & Associates, LLC, the Company’s independent auditors.  The Company’s draft unaudited financial statements as of and for the nine months ended September 30, 2014 (the “2014 Financial Statements”) as contained in the Company’s quarterly report on Form 10-Q filed on November 14, 2014, were prepared in a manner consistent with the 2013 Financial Statements, except that the 2014 Financial Statements are not audited, may exclude or condense footnotes and are subject to normal year-end adjustments which would not be material (the 2014 Financial Statements together with the 2013 Financial Statements, are collectively referred to as the “Financial Statements”).  The Financial Statements fairly
 

 2
 

 
 present in all material respects the consolidated financial position of the Company and the Company’s Subsidiaries as of the date thereof and the consolidated results of operations and cash flows for the year then ended. 
 

 

 iv)
 Undisclosed Liabilities.  Neither the Company nor the Company’s Subsidiaries have any liabilities, contingent or otherwise, other than (i) liabilities incurred in the ordinary course of business which, individually or in the aggregate, are not material to the Company and the Company Subsidiaries, (ii) as disclosed in the Financial Statements; (iii) of a type disclosed in the Financial Statements as incurred in the ordinary course of business since the date thereof and not material to the Company and the Company Subsidiaries.  
 

 v)
 Authority and Enforceability. The Company has the corporate power and authority to execute and deliver this Agreement and the other agreements and documents contemplated hereby (collectively, the “Transaction Documents”), and to carry out its obligations hereunder and thereunder.  The execution, delivery and performance by the Company of this Agreement and the other Transaction Documents, and the consummation of the transactions contemplated hereby and thereby, have been duly authorized by all necessary corporate action on the part of the Company.  This Agreement and the other Transaction Documents constitute the valid and legally binding obligation of the Company enforceable against the Company in accordance with their respective terms, except as the same may be limited by bankruptcy, insolvency, reorganization or other laws affecting the enforcement of creditors’ rights generally now or hereafter in effect and subject to the application of equitable principles and the availability of equitable remedies.  
 

 vi)
 Consents and Approvals.  The execution and delivery of this Agreement and the other Transaction Documents by the Company does not, and the performance by the Company of its obligations hereunder and thereunder, will not, require any consent, approval, authorization or other action by, or filing with or notification to, any governmental or regulatory authority, other than in connection with state securities or “blue sky” laws (the “Blue Sky laws”), which have been duly filed, except where failure to obtain such consent, approval, authorization or action, or to make such filing or notification, would not prevent the Company from performing any of its material obligations under this Agreement or the other Transaction Documents and would not have a Material Adverse Effect.
 

 vii)
 No Conflict.  
 The execution, delivery and performance of this Agreement or the other Transaction Documents by the Company and the consummation of the transactions contemplated hereby and thereby by the Company do not and will not conflict with, violate or result in a breach or termination of any provision of, or constitute a default under (or an event which with the giving of notice or lapse of time, or both, would become a default under), the Certificate of Incorporation or the By-laws of the Company or any contract or agreement to which the Company or any of the Company Subsidiaries is a party or any law, rule, regulation, order, writ, judgment, injunction, decree, determination or award applicable to the Company or any of the Company Subsidiaries, or give to others any rights of termination, amendment, acceleration or cancellation of, or result in the creation of any Lien on any of the assets or properties of
 

 3
 

 
 the Company or any of the Company Subsidiaries pursuant to, any note, bond, mortgage, indenture, contract, agreement, lease, license, permit, franchise or other instrument relating to such assets or properties to which the Company or any of the Company Subsidiaries is a party or by which the Company or any of the Company Subsidiaries or any of such assets or properties is bound.
 

 viii)
 Litigation.  Except as set forth on Schedule 3.8, there is no claim, litigation or administrative proceeding pending, or, to the Company’s knowledge, without independent investigation (“Knowledge”), threatened against the Company or any of the Company Subsidiaries, or against any officer, director or employee of the Company or any such Company Subsidiary in connection with such person’s employment therewith. Neither the Company nor any of the Company Subsidiaries is a party to or subject to the provisions of, any order, writ, injunction, judgment or decree of any court or any nation or government or any federal, state, provincial or political subdivision thereof or any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, including, without limitation, any stock exchange, securities market or self-regulatory organization (“Governmental Authority”).
 

 ix)
 Taxes.
 Each of the Company and the Company Subsidiaries has prepared in good faith and duly and timely filed all tax returns required to be filed by it and such returns are complete and accurate in all material respects and the Company and the Company Subsidiaries each has paid all taxes required to have been paid by it, except for taxes which it reasonably disputes in good faith or the failure of which to pay has not had or would not reasonably be expected to have a Material Adverse Effect.  Neither the Company nor any Company Subsidiary has any liability with respect to taxes that accrued on or before the date of the most recent balance sheet of the Company in excess of the amounts accrued with respect thereto that are reflected on such balance sheet.  Except for sales tax audits undertaken by state taxing authorities in the ordinary course of business, neither the Company nor any of the Company Subsidiaries is the subject of any pending or, to the Company’s Knowledge, threatened, inquiry, investigation or administrative or legal proceeding by the Internal Revenue Service, the taxing authorities of any state or local jurisdiction or any other Governmental Authority.
 

 x)
 Extent of Offering.  Subject to the truth and accuracy of the Purchaser’s representations set forth in Section 4 of this Agreement, the offer, sale and issuance of the Shares hereunder are exempt from the registration requirements of the Securities Act of 1933, as amended, and the rules and regulations thereunder (the “Securities Act”) and are exempt or the Company has complied with registration requirements of each state’s Blue Sky laws where the Shares have been or may be offered or sold, and the Company will not take, or fail to take, any action hereafter that would cause the loss of such exemption or registration.
 

 3.11
 Registration Rights; Rights of Participation.  Except as contemplated by  Schedule 3.11 and Section 7 hereunder, (A) the Company has not granted or agreed to grant to any Person any rights (including “piggy-back” registration rights) to have any securities of the Company registered with the Securities and Exchange Commission (the “SEC”) or any other Governmental Authority which has not been satisfied in full or waived on or prior to the date hereof and (B) no Person, including, but not limited to, current or former shareholders of the Company, underwriters, brokers,
 

 4
 

 
 agents or other third parties, has any right of first refusal, preemptive right, right of participation, anti-dilutive right or any similar right to participate in, or to receive securities or other assets of the Company as a result of the transactions contemplated by this Agreement.
 

 3.12
 Employee Matters.  There is no strike, labor dispute or union organization activities pending or, to the Knowledge of the Company, threatened between it and its employees. No employees of the Company belong to any union or collective bargaining unit.  The Company has complied in all material respects with all applicable federal and state equal opportunity and other laws related to employment.
 

 3.13
 Environment.  The Company and the Company Subsidiaries have no liabilities under any federal, state, provincial, local or foreign law, statute, code or ordinance, rule or regulation, permit, order, decree, judgment or injunction issued, promulgated, approved or entered thereunder, relating to pollution or the protection, cleanup or restoration of the environment or natural resources, or to the public health or safety, or otherwise governing the generation, use, handling, collection, treatment, storage, transportation, recovery, recycling, discharge or disposal of hazardous materials (“Environmental Law”), nor, to the Company's Knowledge, do any factors exist that are reasonably likely to give rise to any such liability, affecting any of the properties owned or leased by the Company or any of the Company Subsidiaries that, individually or in the aggregate, has had or would reasonably be expected to have a Material Adverse Effect.  Neither the Company nor any of the Company Subsidiaries has violated any Environmental Law applicable to it now or previously in effect, other than such violations or infringements that, individually or in the aggregate, have not had and would not reasonably be expected to have a Material Adverse Effect.
 

 3.14
 SEC Reports: Financial Statements.  Since September 2010 through the date of this Agreement, the Company has timely filed or furnished (when taking into account timely extension filings) all forms, reports (including the audited and unaudited consolidated financial statements and the related notes thereto), statements, certifications and other documents required to be filed or furnished by it with or to the SEC (collectively, the “SEC Reports”), all of which have complied, as to form, as of their respective filing dates or, if amended, as of the date of the last such amendment, in all material respects with all applicable requirements of the Securities Act of 1933 and the Securities Exchange Act of 1934 and, in each case, the rules and regulations of the SEC promulgated hereunder.  None of the SEC Reports, at the time filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.
 

 3.15
 Insurance.  The Company maintains insurance for itself and the Company Subsidiaries in such amounts and covering such losses and risks as are reasonably sufficient and customary in the businesses in which the Company and the Company Subsidiaries are engaged. As of the date hereof and as of the Closing Date, no notice of cancellation has been or will be received for any of such policies and the Company is and will be in compliance in all material respects with all of the terms and conditions thereof.  The Company has no reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain
 

 5
 

 
 similar coverage from similar insurers as may be necessary to continue to conduct its business as currently conducted without a significant increase in cost.
 

 3.16
 Investment Company Status.  The Company is not, and immediately after the Closing will not be, an “investment company” or an entity “controlled” by an “investment company” within the meaning of the Investment Company Act of 1940, as amended (the “Investment Company Act”), and shall conduct its business in a manner so that it will not become subject to the Investment Company Act.
 

 3.17
 Transfer Taxes.  No stock transfer or other taxes (other than income taxes) are required to be paid in connection with the issuance and sale of any of the Shares, other than such taxes for which the Company has established appropriate reserves and intends to pay in full on or before the Closing.
 

 3.18
 Embargoed Person.  None of the funds or other assets of the Company or the Company Subsidiaries shall constitute property of, or shall be beneficially owned, directly or indirectly, by any person subject to trade restrictions under United States law, including, but not limited to, the International Emergency Economic Powers Act, 50 U.S.C. § 1701 et seq., the Trading with the Enemy Act, 50 U.S.C. App. 1 et seq., and any Executive Orders or regulations promulgated under any such United States laws (each, an “Embargoed Person”), with the result that the investments evidenced by the Shares are or would be in violation of law.  No Embargoed Person shall have any interest of any nature whatsoever in the Company or any Company Subsidiary with the result that the investments evidenced by the Shares are or would be in violation of law.  None of the funds or other assets of the Company or the Company Subsidiaries shall be derived from any unlawful activity with the result that the investments evidenced by the Shares are or would be in violation of law.
 

 3.19
 Fees.  Except as set forth on Schedule 3.19, the Company is not obligated to pay any brokers, finders or financial advisory fees or commissions to any underwriter, broker, agent or other representative in connection with the transactions contemplated hereby.  The Company will indemnify and hold harmless the Purchaser from and against any claim by any Person alleging that the Purchaser is obligated to pay any such compensation, fee, cost or related expenditure in connection with the transactions contemplated hereby arising from any action by the Company.
 

 3.20
 Disclosure.  The representations, warranties and written statements contained in this Agreement and the other Transaction Documents and in the certificates, exhibits and schedules delivered to the Purchaser by the Company pursuant to this Agreement and the other Transaction Documents do not contain any untrue statement of a material fact, and do not omit to state a material fact required to be stated therein or necessary in order to make such representations, warranties or statements not misleading in light of the circumstances under which they were made.  The Company acknowledges that the Purchaser is relying on the representations, acknowledgments and agreements made by the Company in this Section 3.20 and elsewhere in this Agreement in making decisions concerning the Shares.
 

 3.21
 Transactions with Interested Persons.  No officer, director or
 

 6
 

 
 employee of the Company or any of the Company Subsidiaries is or has made any arrangements with the Company or any of the Company Subsidiaries to become a party to any transaction with the Company or any Company Subsidiary (other than for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the Knowledge of the Company, any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or partner.
 

 Section 4.
 Representations and Warranties of the Purchaser.  The Purchaser hereby represents and warrants to the Company as follows:
 

 4.1
 Status.  The Purchaser is a Georgia limited liability company duly organized, validly existing and in good standing under the laws of the State of Georgia with full power and authority to execute, deliver and perform its obligations under this Agreement.
 

 4.2
 Authority for Agreements.  The Purchaser has the power and authority to execute and deliver this Agreement and to carry out its obligations hereunder.  The execution, delivery and performance by Purchaser of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary action on the part of Purchaser.  This Agreement constitutes the valid and legally binding obligation of Purchaser, enforceable against Purchaser in accordance with its terms, except as the same may be limited by bankruptcy, insolvency, reorganization or other laws affecting the enforcement of creditors’ rights generally now or hereafter in effect and subject to the application of equitable principles and the availability of equitable remedies.
 

 4.3
 Information.
 The Company has, prior to the Closing, provided the Purchaser with information regarding the business, operations and financial condition of the Company and has, prior to the Closing, granted to the Purchaser the opportunity to ask questions of and receive answers from representatives of the Company, its officers, directors, employees and agents concerning the Company sufficient in order for the Purchaser to make an informed decision with respect to its investment in the Shares.  Neither such information nor any other investigation conducted by the Purchaser or any of its representatives shall modify, amend or otherwise affect the Purchaser’s right to rely on the Company’s representations and warranties contained in this Agreement.  The Purchaser acknowledges that the representations and warranties of the Company set forth in this Agreement are the only representations and warranties of the Company on which the Purchaser may rely in connection herewith.
 

 4.4
 Fees.  Purchaser has not agreed to pay any compensation or other fee, cost or related expenditure to any underwriter, broker, agent or other representative in connection with the transactions contemplated hereby.
 

 4.5
 No Governmental Review.  The Purchaser understands that no U.S. federal or state agency or any other Governmental Authority has passed on or made any recommendation or endorsement of the Shares or the fairness or suitability of an investment in the Shares nor have such authorities passed upon the accuracy of any
 

 7
 

 
 information provided to the Purchaser or made any findings or determinations as to the merits of the sale of the Shares.
 

 4.6
 Consents and Approvals.
 The execution and delivery of this Agreement by the Purchaser does not, and the performance by the Purchaser of Purchaser’s obligations hereunder will not, require any consent, approval, authorization or other action by, or filing with or notification to, any governmental or regulatory authority, except where failure to obtain such consent, approval, authorization or action, or to make such filing or notification, would not prevent the Purchaser from performing any of the Purchaser’s material obligations under this Agreement.
 

 4.7
 No Conflicts.
 The execution, delivery and performance of this Agreement by the Purchaser and the other agreements and documents to be executed, delivered and performed by the Purchaser pursuant hereto and the consummation of the transactions contemplated hereby and thereby by the Purchaser do not and will not conflict with, violate or result in a breach or termination of any provision of, or constitute a default under (or event which with the giving of notice or lapse of time, or both, would become a default under) the Articles of Organization or Operating Agreement of the Purchaser, any other organizational instrument (if the Purchaser is a legal entity other than a limited liability company), or, except as would not prevent the Purchaser from performing any of the Purchaser’s material obligations under this Agreement and would not have a material adverse effect on the business, operations or financial condition of the Purchaser, any law, rule, regulation, order, writ, judgment, injunction, decree, determination or award applicable to the Purchaser or give to others any rights of termination, amendment, acceleration or cancellation of, or result in the creation of any lien or encumbrance on any of the assets or properties of the Purchaser pursuant to, any note, bond, mortgage, indenture, contract, agreement, lease, license, permit, franchise or other instrument relating to such assets or properties to which the Purchaser is a party or by which any of such assets or properties is bound.
 

 4.8
 Source of Funding; Identity.  The source of payment for the Shares is Purchaser’s own account and Purchaser acknowledges, understands, covenants and agrees that that the Company may require additional information regarding (i) the source(s) of the payment for the Shares and (ii) any and all information with respect to the identity of the Purchaser in order to facilitate the Company’s compliance with the U.S. Government’s anti-money laundering policies and procedures as set out in the USA PATRIOT Act or otherwise.
 

 4.9
 Embargoed Person.  None of the funds or other assets of the Purchaser constitutes the property of, or shall be beneficially owned, directly or indirectly, by any Embargoed Person under United States law, including, but not limited to, the International Emergency Economic Powers Act, 50 U.S.C. § 1701 et seq., the Trading with the Enemy Act, 50 U.S.C. App. 1 et seq., and any Executive Orders or regulations promulgated under any such United States laws, with the result that the investments evidenced by the Shares are or would be in violation of law.  No Embargoed Person shall have any interest of any nature whatsoever in the Purchaser with the result that the investments evidenced by the Shares are or would be in violation of law.  None of the funds or other assets of the Purchaser is derived from any unlawful activity with the result that the investments evidenced by the Shares are or would be in violation of law.
 

 8
 

 
 

 4.10
 Investment Intent.  The Purchaser is acquiring the Shares, if at all, for the Purchaser’s own account, for investment only and not with a view to, or for sale in connection with, a distribution thereof or any part thereof, within the meaning of the Securities Act, and the rules and regulations promulgated thereunder, or any applicable state Blue Sky laws; provided, however, that in making such representation, the Purchaser does not agree to hold the Shares for any minimum or specific term and reserves the right to sell, transfer or otherwise dispose of the Shares at any time in accordance with the provisions of this Agreement and with federal and state securities laws applicable to such sale, transfer or disposition. 
 

 4.11
 Investor Status. The Purchaser is an accredited investor as such term is defined under Regulation D promulgated pursuant to the Securities Act (“Regulation D”) for the reason(s) set forth in the representations and warranties of the Purchaser, and shall be true and correct as of the date of the Company’s execution of this Agreement and sale of the Shares to the Purchaser and shall survive the closing of such sale; and, if there should be any material change in such information prior to the sale to the Purchaser of the Shares, the Purchaser will as soon as reasonably practicable furnish such revised or corrected information to the Company.
 

 4.12
 No Intent to Transfer.  The Purchaser is not a party or subject to or bound by any contract, undertaking, agreement or arrangement with any person to sell, transfer or pledge the Shares or any part thereof to any person, and has no present intention to enter into such a contract, undertaking, agreement or arrangement.
 

 4.13
 Offering Exempt from Registration; Company’s Reliance.  The Purchaser acknowledges that:
 

 4.13.1
 The Company has advised the Purchaser that the Shares have not been registered under the Securities Act or under the laws of any state on the basis that the issuance thereof is exempt from such registration.
 

 4.13.2
 The Company’s reliance on the availability of such exemption is, in part, based upon the accuracy and truthfulness of the Purchaser’s representations contained herein.
 

 4.13.3
 As a result of such lack of registration, the Shares may not be resold or otherwise transferred or disposed without registration pursuant to or an exemption therefrom available under the Securities Act and such state Blue Sky laws.
 

 4.13.4
 The certificate(s) representing the Shares shall bear a restrictive legend substantially in the following form:
 

 “THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.  THESE SHARES HAVE BEEN ACQUIRED FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO
 

 9
 

 
 DISTRIBUTION OR RESALE, AND MAY NOT BE SOLD, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH SHARES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER OF THESE SHARES TO THE EFFECT THAT REGISTRATION IS NOT REQUIRED UNDER SUCH ACT AND SUCH STATE SECURITIES LAWS.”
 

 4.14
 Sophistication of the Purchaser.  The Purchaser has evaluated the merits and risks of purchasing the Shares and has such knowledge and experience in financial and business matters that the Purchaser is capable of evaluating the merits and risks of such purchase, is aware of and has considered the financial risks and financial hazards of purchasing the Shares, and is able to bear the economic risk of purchasing the Shares, including the possibility of a complete loss with respect thereto.
 

 4.15
 State of Residence or Principal Place of Business.  The address set forth in the Section 9 of this Agreement is the Purchaser’s true and correct principal place of business, and the Purchaser has no present intention of becoming a resident of, or relocating its principal place of business to, any other country, state or jurisdiction.
 

 4.16
 Non-Affiliate Status.  The Purchaser is not an officer, director or affiliate of the Company.
 

 4.17
 Fees.  The Purchaser is not obligated to pay any brokers, finders or financial advisory fees or commissions to any underwriter, broker, agent or other representative in connection with the transactions contemplated hereby.  The Purchaser will indemnify and hold harmless the Company from and against any claim by any Person alleging that the Company is obligated to pay any such compensation, fee, cost or related expenditure in connection with the transactions contemplated hereby arising from any action by the Purchaser.
 

 4.18
 No General Solicitation.  The Purchaser has not received any general solicitation or general advertising regarding the purchase of the Shares.
 

 Section 5.
 Covenants and Agreements.  The parties hereto covenant and agree as follows:
 

 5.1.
 Ordinary Course.  From the date hereof until the Closing, the Company and the Company Subsidiaries shall (i) operate in the ordinary course of  business; (ii) use commercially reasonable best efforts to maintain intact and preserve the Company’s and the Company Subsidiaries’ present business organization, keep available to the service of their employees and preserve their relationship with customers, suppliers and others having business dealings with them; (iii), except as contemplated by any potential transactions described in Schedule 5.1, maintain all of the Company’s and the Company Subsidiaries’ material structures, equipment and other tangible personal property currently in use in good operating condition and repair, except for ordinary wear and tear and damage by unavoidable casualty; (iv) keep in full force and effect the Company’s and the Company Subsidiaries’ insurance comparable in amount and scope of coverage to
 

 10
 

 
 insurance now carried by the Company and the Company Subsidiaries; (v) perform in all material respects all of its obligations under agreements, contracts and instruments relating to or affecting its properties, assets and business; (vi) conduct the business in such a manner so that the representations and warranties contained in Section 3 hereof shall be true and correct in all material respects on and as of the Closing Date; and (vii) not undertake to commit any act which would violate any of the representations and warranties set forth in Section 3 hereof without the written consent of the Purchaser, not to be unreasonably withheld, delayed or conditioned. 
 

 5.2
 Survival.  All agreements, representations and warranties and covenants contained herein or made in writing by or on behalf of the parties hereto in connection with the transactions contemplated hereby shall survive the execution of this Agreement and the Closing.
 5.3
  Use of Proceeds.  The Company shall use the proceeds from the sale of the Shares for the purposes of project financing and general working capital purposes.
 

 

 

 Section 6
 Conditions To Closing.
 

 6.1.
 Conditions To Purchaser’s Obligations at the Closing.  The Purchaser’s obligation to pay an aggregate amount of $10,000,000 and purchase the Shares at the Closing is subject to the satisfaction or waiver by the Purchaser, on or prior to the Closing Date, of the following conditions:  
 

 6.1.1.
 The representations and warranties made by the Company in Section 3 shall be true and correct in all material respects as of the Closing Date.
 

 6.1.2.
 The Company shall have delivered completed disclosure schedules as contemplated hereunder to the Purchaser.
 

 6.1.3.
 The Company shall have performed in all material respects all obligations required herein to be performed pursuant to this Agreement on or prior to the Closing.
 

 6.1.4.
 The Company shall have delivered to the Purchaser a certificate of a duly authorized officer of the Company, dated as of the Closing Date, to the effect that the conditions specified in this Section 6.1 have been satisfied.
 

 6.1.5.
 There shall have been no event or events which, in the aggregate, since the date hereof, have resulted in a Material Adverse Effect.
 

 6.1.6.
 Except as disclosed on Schedule 3.8 hereto, there shall have been no legal or other action or proceeding instituted which calls into question the validity or hinders the enforceability of this Agreement or the other Transaction Documents or any other agreement or transaction contemplated hereby or which would reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect, and there shall not be pending or threatened by or before
 

 11
 

 
 any governmental entity, tribunal, commission or court any action or proceeding seeking to restrain, enjoin, prohibit or invalidate the consummation of the transactions contemplated by this Agreement or the other Transaction Documents.
 

 6.1.7.
 The Purchaser shall have received from the Secretary of the Company a certificate having attached thereto copies of: (i) the Company's Certificate of Incorporation as amended and in effect at the time of the Closing; (ii) the Company's Bylaws as in effect at the time of the Closing; and (iii) resolutions approved by the Company's Board of Directors, authorizing the transactions contemplated hereby.
 

 6.1.8.
  The Purchaser shall have received from the Company a good standing certificate with respect to the Company from the Nevada Secretary of State and the Company Subsidiaries from each applicable jurisdiction where such Company Subsidiary is incorporated, dated within ten (10) days before the Closing.
 

 

 6.2.
 Conditions To Company’s Obligations at the Closing.  The Company’s obligation to issue and sell the Shares at the Closing is subject to the satisfaction or waiver in writing, on or prior to the Closing, of the following conditions:
 

 6.2.1
 The representations and warranties made by the Purchaser in Section 4 shall be true and correct in all material respects as of the Closing Date.
 

 6.2.2
 The Purchaser shall have performed in all material respects all obligations herein required to be performed by the Purchaser on or prior to the Closing.
 

 6.2.3
 There shall have been no legal or other action or proceeding instituted which calls into question the validity or hinders the enforceability of this Agreement or any other agreement or transaction contemplated hereby, and there shall not be pending or threatened by or before any governmental entity, tribunal, commission or court any action or proceeding seeking to restrain, enjoin, prohibit or invalidate the consummation of the transactions contemplated by this Agreement.
 

 Section 7.
 Registration Rights.  On and after the Closing, Purchaser shall have registration rights with respect to the Shares (hereinafter referred to as “Registrable Securities”) in accordance with this Section 7.
 

 7.1.
 Required Registration:  No later than December 5, 2014, the Company  shall prepare and file with the SEC the Registration Statement covering the resale of all of the Registrable Securities which a Holder has requested to be included in such Registration Statement which offering shall be made on a continuous basis pursuant to Rule 415.  The Registration Statement shall be on Form S-3 (or other applicable form at the discretion of the Company).  The Company shall cause the Registration Statement to be declared effective under the Securities Act promptly upon receipt of all SEC comments and shall
 

 12
 

 
 use its commercially reasonable efforts to keep the Registration Statement continuously effective under the Securities Act until the date when all Registrable Securities covered by the Registration Statement (a) have been sold pursuant to the Registration Statement or an exemption from the registration requirements of the Securities Act or (b) may be sold without any volume or manner of sale restrictions pursuant to Rule 144 (the “Effectiveness Period”).  
 

 7.2
 Piggyback Registrations.  Each time the Company proposes to register any of its equity securities (other than pursuant to a registration on Forms S-4, S-8 or similar registration forms (each, an “Excluded Registration”)) under the Securities Act for sale to the public (whether for the account of the Company or the account of any security holder of the Company) and the form of registration statement to be used permits the registration of Shares, the Company shall give prompt written notice to Purchaser (the “Piggyback Notice”) (which notice shall be given not less than 30 days prior to the effective date of such registration statement), which notice shall offer Purchaser the opportunity to include any or all of the Shares in such registration statement.  If Purchaser desires to have any or all of the Shares included in such registration statement, Purchaser shall so advise the Company in writing (stating the number of Shares desired to be registered) within twenty days after the giving of such notice from the Company.  Purchaser shall have the right to withdraw such request for inclusion of such Shares in any registration statement pursuant to this Section 7.2 by giving written notice to the Company of such withdrawal.  Subject to an underwriter’s limitation, the Company shall include in such registration statement all of such Shares so requested to be included therein; provided, however, that the Company may at any time withdraw or cease proceeding with any such registration if it shall at the same time withdraw or cease proceeding with the registration of all other equity securities originally proposed to be registered in such registration statement.
 

 7.3
 Allowed Delay or Suspension.  Notwithstanding anything to the contrary herein, the Company may, at any time after the effective date of a Registration Statement under this Section 7, upon written notice to Purchaser, (i) delay the disclosure of material, non-public information concerning the Company, the disclosure of which at the time is not, in the good faith opinion of the Board of Directors, in the best interest of the Company and, in the opinion of counsel to the Company, otherwise required (an “Allowed Delay”), and (ii) suspend the availability of a Registration Statement if pursuant to applicable law it must file a post-effective amendment to such Registration Statement in connection with filing its Annual Report on Form 10-K (an “Allowed Suspension”); provided, that (x) no Allowed Delay shall exceed ten (10) consecutive trading days or thirty (30) trading days in any period of three hundred sixty-five (365) days and (y) no Allowed Suspension shall exceed ten (10) consecutive trading days. 
 

 7.4
  Rule 415 Registration Restrictions.  Notwithstanding the foregoing, nothing in this Section 7 shall require the Company to take any action that would not comply with Rule 415 in accordance with the applicable SEC interpretation of Rule 415 (“Rule 415”) under the Securities Act.  Accordingly, the Company shall have no obligation to take any action which is not permitted pursuant to the then current interpretation of the Staff of Rule 415 or any similar or corresponding rule or regulation under the Securities Act (the “Rule 415 Registration Restrictions”).  The parties agree that, in the event this Section 7 shall result in the Company having an obligation to register the Shares on any such date, in any such quantity, or in any other manner that
 

 13
 

 
 would not comply with the Rule 415 Registration Restrictions, then such obligation shall be superseded, so as to not require the Company to take any action which is not in compliance with the Rule 415 Registration Restrictions.  If any Rule 415 Registration Restriction requires a limitation on the number of Registrable Securities permitted to be registered on a registration statement otherwise required to be filed by the Company hereunder, the Company shall file an additional registration statement within a reasonable period of time after the soonest date permitted by the Rule 415 Registration Restrictions covering the Registrable Securities excluded from such prior registration statement.   The foregoing shall apply only to the extent that Rule 415 is applicable to the offering and sale of the Shares.
 

 7.5
  Expenses of Registration.  All reasonable expenses, other than underwriting discounts and commissions and fees and expenses of counsel and other advisors to the Purchaser, incurred in connection with the registrations, filings or qualifications described herein, including (without limitation) all registration, filing and qualification fees, printers’ and accounting fees, the fees and disbursements of counsel for the Company, shall be borne by the Company.
 

 7.6
  Cooperation of the Purchaser.  The Company’s obligations to register the Registrable Securities of the Purchaser is subject to the Purchaser providing the Company with all information and documents that the Company may reasonably request in order to make all applicable disclosures in a registration statement (or prospectus made a part thereof) concerning the Purchaser, the Purchaser’s Registrable Securities and the proposed disposition thereof.
 

 7.7
 Indemnification.  
 

 7.7.1
  Purchaser’s Indemnification.
   In the event that any Registrable Securities are included in a registration statement under this Section 7, the Company shall indemnify and hold harmless the Purchaser, the officers, directors, managers, members, employees, agents and representatives of the Purchaser, and each person, if any, who controls the Purchaser within the meaning of the Securities Act or the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder (the “Exchange Act”), against any losses, claims, damages, liabilities or reasonable out-of-pocket expenses (collectively, including reasonable legal expenses or other expenses reasonably incurred in connection with investigating or defending same, “Losses”), insofar as any such Losses arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement under which such Registrable Securities were registered, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto, or (ii) the omission to state therein a material fact required to be stated therein, or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.  The Company will reimburse the Purchaser, and each such officer, director, manager, member, employee, agent, representative or controlling person, for any reasonable legal expenses or other out-of-pocket expenses (promptly as such expenses are incurred) by any such entity or person in connection with investigating or defending any Loss; provided, however, that the foregoing indemnity shall not apply to amounts paid in
 

 14
 

 
 settlement of any Loss if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be obligated to indemnify any person for any Loss to the extent that such Loss arises out of or is based upon (i) any omission to state a material fact required to be stated therein or necessary to make statements therein not misleading that conforms in all material respects to written information furnished by such person expressly for use in such registration statement or (ii) a failure of such person to deliver or cause to be delivered the final prospectus contained in a registration statement and made available by the Company, if such delivery is required by applicable law. 
 

 7.7.2
 Indemnification by the Purchaser.  In connection with any registration statement in which the Purchaser is participating, the Purchaser will furnish to the Company in writing such information with respect to the name and address of such holder of the Registrable Securities, each such holder’s proposed plan of distribution of such Registrable Securities and such other information as may be reasonably required for use in connection with any such registration statement and agrees to indemnify, to the full extent permitted by law, the Company, its directors and officers, each Person who controls the Company (within the meaning of the Securities Act) and the underwriter or underwriters of the offering subject to the registration statement against any losses, claims, damages, liabilities and expenses resulting from any untrue statement of a material fact in a registration statement or any amendment thereof or supplement thereto or necessary to make the statements therein not misleading, to the extent, but only to the extent, that such untrue or alleged untrue statement relates to any information with respect to the Purchaser so furnished in writing by such the Purchaser specifically for inclusion in any registration statement; provided, however, that the Purchaser shall not be liable in any such case to the extent that prior to the filing of any such registration statement or amendment thereof or supplement thereto, the Purchaser has furnished in writing to the Company information expressly for use in such registration statement or any amendment thereof or supplement thereto which corrected or made not misleading information previously furnished to the Company. 
 

 7.7.3
   Conduct of Indemnification Proceedings. Any Person entitled to indemnification pursuant to this Section 7.7 agrees to give prompt written notice to the indemnifying party after the receipt by such Person of any written notice of the commencement of any action, suit, proceeding or investigation or threat thereof made in writing for which such Person will claim indemnification or contribution pursuant to the provisions hereof and, unless in the judgment of counsel of such indemnified party a conflict of interest may exist between such indemnified party and the indemnifying party with respect to such claim, permit the indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the indemnified party; provided, however, that the failure to give prompt notice shall relieve the indemnifying party of its obligations hereunder with respect to such claim only if, and only to the extent that, such failure to so notify the indemnifying party results in the forfeiture by the indemnifying party of rights and defenses otherwise available to the indemnifying party with respect to such claim. Whether or not such defense is assumed by the
 

 15
 

 
 indemnifying party, the indemnifying party will not be subject to any liability for any settlement made without its consent (but such consent will not be unreasonably withheld, delayed or conditioned). No indemnifying party will consent to entry of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect of such claim or litigation. If the indemnifying party is not entitled to, or elects not to, assume the defense of a claim, it will not be obligated to pay the fees and expenses of more than one counsel (plus such local counsel, if any, as may be reasonably required in other jurisdictions) with respect to such claim, unless in the judgment of any indemnified party a conflict of interest may exist between such indemnified party and any other of such indemnified parties with respect to such claim, in which event the indemnifying party shall be obligated to pay the fees and expenses of such additional counsel or counsels. For the purposes of this Section 7.7.3, the term “conflict of interest” shall mean that there are one or more legal defenses available to the indemnified party that are different from or additional to those available to the indemnifying party or such other indemnified parties, as applicable, which different or additional defenses make joint representation inappropriate.  The party that does not assume the defense shall be entitled to participate in such matter and to retain its own counsel at its own expense.  The party that assumes the defense shall use reasonable efforts to keep the other party reasonably apprised of the status of the defense of the matter.
 

 7.7.4
 Contribution.  If the indemnification from the indemnifying party provided for in this Section 7.7 is unavailable to an indemnified party hereunder in respect of any losses, claims, damages, liabilities or expenses referred to therein, then the indemnifying party, in lieu of indemnifying such indemnified party shall contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying party and indemnified parties in connection with the actions which resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations. The relative fault of such indemnifying party and indemnified parties shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact, has been made by, or relates to information supplied by, such indemnifying party or indemnified parties, and the parties’ intent, knowledge, access to information and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, any reasonable legal or other fees or expenses reasonably incurred by such party in connection with any investigation or proceeding. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. 
 

 Section 8.
 Indemnification.
 

 8.1
 Indemnification Obligations of the Company.  The Company shall,
 

 16
 

 
 indemnify, defend and hold harmless the Purchaser from, against, and in respect of, any and all claims, liabilities, obligations, damages, losses, costs, expenses, penalties, fines and judgments (at equity or at law, including statutory and common) whenever arising or incurred (including amounts paid in settlement, costs of investigation and reasonable attorneys’ fees and expenses) arising out of or relating to: (i) any breach or inaccuracy of any representation or warranty made by the Company in this Agreement, whether such representation and warranty is made as of the date hereof or as of the Closing Date; or (ii) any breach of any covenant, agreement or undertaking made by any Company in this Agreement.  The claims, liabilities, obligations, losses, damages, costs, expenses, penalties, fines and judgments of the Purchaser described in this Section 8.1 as to which the Purchaser is entitled to indemnification are collectively referred to as “Purchaser Losses”.
 

 8.2
 Indemnification Obligations of the Purchaser.  The Purchaser shall indemnify and hold harmless the Company (the "Company Indemnified Parties") from, against and in respect of any and all claims, liabilities, obligations, losses, damages, costs, expenses, penalties, fines and judgments (at equity or at law, including statutory and common) and damages whenever arising or incurred (including amounts paid in settlement, costs of investigation and reasonable attorneys’ fees and expenses) arising out of or relating to: (i) any breach or inaccuracy of any representation or warranty made by the Purchaser in this Agreement,  whether such representation and warranty is made as of the date hereof or as of the Closing Date; or (ii) any breach of any covenant, agreement or undertaking made by the Purchaser in this Agreement.  The claims, liabilities, obligations, losses, damages, costs, expenses, penalties, fines and judgments of the Company Indemnified Parties described in this Section 8.2 as to which the Shareholder Indemnified Parties are entitled to indemnification are collectively referred to as “Company Losses”.  In no event shall Company Losses include consequential, indirect, speculative or special losses or damages of any kind.
 

 8.3
 Indemnification Procedure.
 

 8.3.1
 Promptly following receipt by an indemnified party (and "Indemnified Party") of notice by a third party of any complaint, dispute or claim or the commencement of any audit, investigation, action or proceeding with respect to which such Indemnified Party may be entitled to receive payment from the other party for any Purchaser Losses or any Company Losses (as the case may be), such Indemnified Party shall provide written notice thereof to the Purchaser or the Company, as the case may be (the “Indemnifying Party”); provided, however, that the failure to so notify the Indemnifying Party shall relieve the Indemnifying Party from liability hereunder with respect to such claim only if, and only to the extent that, such failure to so notify the Indemnifying Party results in the forfeiture by the Indemnifying Party of rights and defenses otherwise available to the Indemnifying Party with respect to such claim.  The Indemnifying Party shall have the right, upon written notice delivered to the Indemnified Party within ten (10) days thereafter assuming full responsibility for any Purchaser Losses or Company Losses (as the case may be) resulting from such audit, investigation, action or proceeding, to assume the defense of such audit, investigation, action or proceeding, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of the fees and
 

 17
 

 
 disbursements of such counsel.  In the event, however, that the Indemnifying Party declines or fails to assume the defense of the audit, investigation, action or proceeding on the terms provided above or to employ counsel reasonably satisfactory to the Indemnified Party, in either case within such 10-day period, then any Purchaser Losses or any Company Losses (as the case may be), shall include the reasonable fees and disbursements of counsel for the Indemnified Party as incurred.  In any audit, investigation, action or proceeding for which indemnification is being sought hereunder the Indemnified Party or the Indemnifying Party, whichever is not assuming the defense of such action, shall have the right to participate in such matter and to retain its own counsel at such Party’s own expense.  The Indemnifying Party or the Indemnified Party (as the case may be) shall at all times use reasonable efforts to keep the Indemnifying Party or Indemnified Party (as the case may be) reasonably apprised of the status of the defense of any matter the defense of which it is maintaining and to cooperate in good faith with each other with respect to the defense of any such matter.
 

 8.3.2
 No Indemnified Party may settle or compromise any claim or consent to the entry of any judgment with respect to which indemnification is being sought hereunder without the prior written consent of the Indemnifying Party (which may not be unreasonably withheld or delayed), unless such settlement, compromise or consent includes an unconditional release of the Indemnifying Party from all liability arising out of, or related to, such claim.  An Indemnifying Party may not, without the prior written consent of the Indemnified Party, settle or compromise any claim or consent to the entry of any judgment with respect to which indemnification is being sought hereunder unless such settlement, compromise or consent (x) includes an unconditional release of the Indemnified Party from all liability arising out of, or related to, such claim, (y) does not contain any admission or statement suggesting any wrongdoing or liability on behalf of the Indemnified Party and (z) does not contain any order, judgment or term that in any manner affects, restrains or interferes with the business of the Indemnified Party.
 

 8.3.3
 In the event an Indemnified Party claims a right to payment pursuant hereto, such Indemnified Party shall send written notice of such claim to the appropriate Indemnifying Party (a “Notice of Claim”).  Such Notice of Claim shall specify the basis for such claim.  The failure by any Indemnified Party to so notify the Indemnifying Party shall not relieve the Indemnifying Party from any liability that it may have to such Indemnified Party with respect to any claim made pursuant to this Section 8.3.3.  In the event the Indemnifying Party does not notify the Indemnified Party within fifteen (15) days following its receipt of such notice that the Indemnifying Party disputes its liability to the Indemnified Party under this Section 8 or the amount thereof, the claim specified by the Indemnified Party in such Notice of Claim shall be conclusively deemed a liability of the Indemnifying Party and the Indemnifying Party shall pay the amount of such liability to the Indemnified Party on demand or, in the case of any notice in which the amount of the claim (or any portion of the claim) is estimated, on such later date when the amount of such claim (or such portion of such claim) becomes finally determined.  In the event the Indemnifying Party has timely disputed its
 

 18
 

 
 liability with respect to such claim as provided above, as promptly as possible, such Indemnified Party and the appropriate Indemnifying Party shall establish the merits and amount of such claim (by mutual agreement, litigation, arbitration or otherwise) and, within five (5) business days following the final determination of the merits and amount of such claim, the Indemnifying Party shall pay to the Indemnified Party immediately available funds in an amount equal to such claim as determined hereunder.
 

 Section 9.
 General Provisions.
 

 9.1
 Notices.  All notices and other communications required or permitted hereunder shall be in writing.  Notices shall be delivered personally, against written receipt therefor, via a recognized overnight courier (such as Federal Express, DHL, Airborne Express or U.S.P.S. Express Mail) or via certified or registered mail, return receipt requested.  Notices also may be delivered via facsimile or e-mail, provided that by no later than two days thereafter such notice is confirmed in writing and sent via one of the methods described in the previous sentence.  Notices shall be addressed as follows:
 

 If to the Company:
 Blue Earth, Inc.
 2298 Horizon Ridge Parkway
 Suite 205
 Henderson, Nevada  
 Facsimile: 702-263-1823
 Telephone: 702*263*1808 Ext. 102
 Attn:  Johnny Thomas, CEO
 

 with a copy to:
 Davidoff Hutcher & Citron LLP
 605 Third Avenue
 34th Floor 
 New York, New York 10158
 Attn: Elliot Lutzker, Esq.
 Facsimile No.:  (212) 286-1884
 

 If to the Purchaser, to:
 Jackson Investment Group LLC
 2655 Northwinds Parkway
 Alpharetta, Georgia  
 Facsimile: 678-485-5356
 Telephone: 770-643-5605
 Attn:   Richard L. Jackson
 

 with copy to:
 Dennis J. Stockwell, General Counsel
 Jackson Healthcare
 Facsimile: 678-658-4521
 Telephone: 770-643-5529
 

 

 or, in the case of any of the parties hereto, at such other address as such party shall have furnished to each of the other parties hereto in accordance with this Section 9.1.  Each
 

 19
 

 
 such notice, demand, request or other communication shall be deemed given (a) on the date of personal delivery, (b) on the first business day following (i) the date of delivery to the overnight courier, (ii) facsimile transmission or (iii) e-mail transmission, or (c) three business days following such mailing.
 

 9.2
 Severability.
 If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any parties.  Upon such a determination, the parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner in order that the transactions contemplated hereby are consummated as originally contemplated to the fullest extent possible.
 

 9.3
 Prior Agreements/Oral Modification.  This Agreement supersedes all prior agreements between the Company and Purchaser and constitutes the entire agreement and understanding between the parties with respect to the subject matter of this Agreement.  This Agreement may not be amended, modified in any manner or terminated orally or by course of conduct; and no amendment, modification or termination of any of the provisions hereof shall be binding unless in writing and signed by the parties against whom the same is sought to be enforced.
 

 9.4
 Governing Law; Jurisdiction.  This Agreement will be governed by, and construed and enforced in accordance with, the laws of the State of Nevada without regard to the conflict of laws provisions thereof.  The parties hereto do hereby consent and submit to the venue and jurisdiction of the state and federal courts sitting in Las Vegas, Nevada, as the sole and exclusive forum for the enforcement of this Agreement.
 

 9.5
 Successors and Assigns; Assignment; No Third Party Beneficiary.  No assignment or transfer by the Company of any such party’s rights and obligations hereunder shall be made, except with the prior written consent of the Purchaser, in his sole and absolute discretion.  The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the Purchaser.  Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties to this Agreement or the Purchaser’s respective successors and assigns, any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.
 

 9.6
 Attorney’s Fees.  In the event of any litigation between the parties to this Agreement concerning the subject matters of this Agreement, each party shall be responsible for its attorney’s fees and costs, except as may be otherwise determined by a court of competent jurisdiction.
 

 9.7
 Proper Construction; Headings; Severability.  The language of all parts of this Agreement shall in all cases be construed as a whole according to its fair meaning, and not strictly for or against any of the parties.  This Agreement has been
 

 20
 

 
 subject to negotiations among all parties hereto and each party has been advised to seek such party’s separate counsel, and, as such, this Agreement shall be deemed prepared by both parties.  Any ambiguities shall not be deemed to be construed against either party hereto.  The section and paragraph 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 possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if 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 any other jurisdiction, but this Agreement will be reformed, construed and enforced in such jurisdiction to the greatest extent possible to carry out the intentions of the parties hereto.  As used in this Agreement, the term “or” shall be deemed to include the term “and/or,” the singular or plural number shall be deemed to include the other whenever the context so indicates or requires and the term “including” shall be deemed to mean “including without limitation”.
 

 9.8
 Waiver of Breach.  The waiver by any party of a breach of any provision of this Agreement by any other party must be in writing and shall not operate or be construed as a waiver of any subsequent breach by such other party.  No delay or omission to exercise any right, power or remedy accruing to any party under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power or remedy of such non-breaching or non-defaulting party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring.
 

 9.9
 Counterparts; Faxed or E-Mailed Signatures.  This Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same Agreement.  Any executed signature page delivered by facsimile or e-mail transmission shall be binding to the same extent as an original executed signature page, with regard to any agreement subject to the terms hereof or any amendment thereto.
 

 [Remainder of page intentionally left blank.  Signature page follows.]
 

 

 

 

 

 

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

 BLUE EARTH, INC.
 

 

 

 By: 
 /s/ Johnny Thomas
 Name:   Johnny Thomas
 Title:    CEO
 

 

 JACKSON INVESTMENT GROUP LLC
       
 

 

 By: 
 /s/ Douglas B. Kline
 Name:  Douglas B. Kline
 Title:    CFO
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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