Document:

ASSET ACQUISITION AGREEMENT

dated as of April 20, 2011

 

For the Acquisition of

Substantially all of the

Assets of

 

ROCHESTER POWER SAVER, INC.

  

by

 

XZERES WIND CORP.

     

     

    

ASSET ACQUISITION AGREEMENT

 

THIS ASSET ACQUISITION
AGREEMENT (this “Agreement”) is made as of April _____, 2011 by and among XZERES WIND CORP., a Nevada
corporation (“Buyer”), and ROCHESTER POWER SAVER, INC., a New York corporation (the “Company”);
MICHAEL DANA, (“Michael”); and LISETTE DANA (Lisette”) (Michael and Lisette are hereinafter
jointly referred to herein as the “Shareholders” and individually as a “Shareholder”; and
the Company and the Shareholders are hereinafter jointly referred to as the “Sellers” and individually as a
“Seller”).

 

RECITALS

 

A. The Company is in
the business (the “Business”) of manufacturing devices which control the high cost of electricity.

 

B.Buyer and Sellers
desire to enter into this Agreement whereby Buyer will purchase substantially all of the assets of the Company.

 

C.The Shareholders
are the sole shareholders of the Company.

 

AGREEMENT

 

In consideration of the
mutual covenants of the parties set forth in this Agreement and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, do hereby agree as follows:

 

ARTICLE 1

 

DEFINITIONS

 

For purposes of this Agreement,
the following terms have the respective meanings set forth below:

 

Agreement has the
meaning set forth in the Preamble hereof.

 

Affiliate means,
with respect to any Person: (i) any other Person directly or indirectly controlling, controlled by or under common control with
the subject Person or (ii) any officer, director, trustee, managing member or general partner of the subject Person, provided,
that, for the purposes of this definition, “control” (including, with correlative meanings, the terms “controlled
by” and “under common control with”), as used with respect to any Person, shall mean the possession, directly
or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the
ownership of voting securities, by Contract or otherwise.

 

Assumed Liabilities
has the meaning set forth in Section 2.3 hereof.

    	    

    	 

    

 

Balance Sheet means
the balance sheet of the Company included within the Financial Statements dated March 31, 2011.

 

Balance Sheet Date
means the date of the Balance Sheet.

 

Business has the
meaning set forth in the Recitals hereof.

 

Business Day means
any day other than a Saturday, Sunday or day on which commercial banks are authorized or required by Law to close in the State
of Nevada.

 

Buyer Indemnified Party
has the meaning set forth in Section 10.1 hereof.

 

Buyer has the meaning
set forth in the Preamble hereof.

 

Buyer Stock shall
mean the stock of the Buyer being delivered to the Seller as part of the Purchase Price.

 

Cash Assets means
any cash on hand, cash in bank or other accounts, readily marketable securities, and other cash-equivalent liquid assets of the
Company.

 

CAN-SPAM Act has
the meaning set forth in Section 4.15.7 hereof.

 

Claim Notice has
the meaning set forth in Section 10.3.1 hereof.

 

Closing has the
meaning set forth in Section 8.1 hereof.

 

Closing Date has
the meaning set forth in Section 8.1 hereof.

 

Company means Rochester
Power Saver, Inc., a New York corporation.

 

Confidential Information
has the meaning set forth in Section 11.4 hereof.

 

Consent means any
approval, consent, ratification, permission, or authorization (including any Governmental Authorization), or any declaration, filing
or registration with, or any application, notice or report to, or any waiver by, or any other action (whether similar or dissimilar
to any of the foregoing) of, by or with, any Person, which is necessary in order to take a specified action or actions in a specified
manner and/or to achieve a specified result.

 

Consulting Agreement
shall mean that certain consulting agreement between the Buyer, the Company and Michael pursuant to which the Buyer shall retain
the Company as a consultant.

    	2

    	 

    

 

Contract means any
written or oral contract, agreement, instrument, order, arrangement, commitment or understanding of any nature including sales
orders, purchase orders, franchise agreements, sales agreements, brokerage agreements, distribution agreements, supplier agreements,
advertising agreements, employment agreements, consulting agreements, independent contractor agreements, sales representative agreements,
dealer agreements, agency agreements, manufacturer’s representative agreements, any agreement relating to the payment of
commissions, collective bargaining agreements (or any agreement with a labor union), non-competition agreements, non-solicitation
agreements, confidentiality agreements, leases, subleases, service agreements, maintenance agreements, license agreements, sublicense
agreements, loan agreements, promissory notes, security agreements, pledge agreements, deeds, mortgages, indentures, guaranties,
indemnities, warranties, joint venture agreements, buy-sell agreements, options, warrants and stockholder agreements (and any other
agreement with equity holders of any Person).

 

Contract Right means
any right, power or remedy of any nature under any Contract including rights to receive property or services or otherwise derive
benefits from the payment, satisfaction or performance of another party’s Obligations, rights to demand that another party
accept property or services or take any other actions, and rights to pursue or exercise remedies or options.

 

Copyrights has the
meaning set forth in Section 4.15.1 hereof.

 

Defense Counsel
has the meaning set forth in Section 10.3.1 hereof.

 

Defense Notice has
the meaning set forth in Section 10.3.1 hereof.

 

Direct Claim has
the meaning set forth in Section 10.4 hereof.

 

Division shall mean
that division or subsidiary of the Buyer which is established by the Buyer to continue the Business conducted prior to the Closing
Date by the Company.

 

Documentation means
all existing and current user manuals, design specifications, system flow charts, program flow charts, schematics, file layouts,
report layouts, screen layouts, test results, activity or tracking logs or reports, other logs, and other installation, instructional,
trouble shooting, customer service and training materials and all other existing documentation, system and user materials used
by or on behalf of the Company to develop, demonstrate, reproduce, maintain, modify, enhance or use the Software and/or any of
the Websites.

 

Domain Names has
the meaning set forth in Section 4.15.1 hereof.

 

Effective Time has
the meaning set forth in Section 8.1 hereof.

    	3

    	 

    

 

Employee Benefit Plan
means any of the following (whether written, unwritten or terminated): (a) any “employee welfare benefit plan” as defined
in Section 3(1) of ERISA, including, but not limited to, any medical plan, life insurance plan, short-term or long-term disability
plan, dental plan, and sick leave; (b) any “employee pension benefit plan,” as defined in Section 3(2) of ERISA, including,
but not limited to, any excess benefit, top hat or deferred compensation plan or any nonqualified deferred compensation or retirement
plan or arrangement or any qualified defined contribution or defined benefit plan; or (c) any other plan, policy, program, arrangement
or agreement which provides employee benefits or benefits to any current or former employee, dependent, beneficiary, director,
independent contractor or like person, including, but not limited to, any severance agreement or plan, personnel policy, vacation
time, holiday pay, service award, moving expense reimbursement programs, tool allowance, safety equipment allowance, material fringe
benefit plan or program, bonus or incentive plan, stock option, restricted stock, stock bonus or deferred bonus plan, salary reduction,
change-of-control or employment agreement (or consulting agreement with a former employee).

 

Encumbrance means
mortgage, pledge, hypothecation, right of others, claim, security interest, encumbrance, lease, sublease, license, occupancy agreement,
adverse claim or interest (including any community property interest or equitable interest), easement, covenant, encroachment,
burden, title defect, title retention agreement, voting trust agreement, interest, equity, option, lien, right of first refusal,
charge or other restrictions or limitations of any nature whatsoever, including but not limited to such as may arise under any
Contracts or any restrictions on use, voting, transfer, receipt of income or exercise of any other attribute of ownership.

 

Environmental and Safety
Requirements has the meaning set forth in Section 4.19.5 hereof.

 

ERISA means the
Employee Retirement Income Security Act of 1974, as amended

 

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

 

Excluded Assets shall
have the meaning set forth in Section 2.2.

 

Excluded Liabilities
shall have the meaning set forth in Section 2.4.

 

GAAP means United
States generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board
of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards
Board (or any successor authority) that are applicable as the date of determination, consistently applied in accordance with past
practices.

 

Governmental Authorization
means any approval, consent, license, permit, waiver, or other authorization issued, granted, given, or otherwise made available
by or under the authority of any Governmental Body or pursuant to any Laws.

    	4

    	 

    

 

Governmental Body
means any:

 

(a)foreign, federal,
state, county, municipal, city, town village, district, or other jurisdiction or government of any nature;

 

(b) governmental or quasi-governmental
authority of any nature (including any governmental agency, branch, department, official, or other entity and any court or other
tribunal); or

 

(c)body exercising, or
entitled or purporting to exercise, any administrative, executive, judicial, legislative, police, regulatory, or taxing authority
or power of any nature.

 

Guarantee by any
Person means any obligation, contingent or otherwise, of such Person directly or indirectly guaranteeing or otherwise supporting
in whole or in part the payment of any Indebtedness or other obligation of any other Person, and without limiting the generality
of the foregoing, any obligation, direct or indirect, contingent or otherwise, of such Person (a) to purchase or pay (or advance
or supply funds for the purchase or payment of) such Indebtedness or other obligation of such other Person (whether arising by
virtue of partnership arrangements, by agreement to keep-well, to purchase assets, goods, securities or services, to take-or-pay,
or to maintain financial statement conditions or otherwise) or (b) entered into for the purpose of assuring in any other manner
the obligee of such Indebtedness or other obligations of the payment of such Indebtedness or to protect such obligee against loss
in respect of such Indebtedness (in whole or in part). The term “Guarantee” used as verb has a correlative meaning.

 

Hazardous Materials
has the meaning set forth in Section 4.19.5 hereof.

 

Indebtedness of
any Person means: either (a) any liability of any Person (i) for borrowed money (including the current portion thereof), (ii) under
any reimbursement obligation relating to a letter of credit, bankers’ acceptance or note purchase facility, (iii) evidenced
by a bond, note, debenture or similar instrument (including a purchase money obligation), (iv) for the payment of money relating
to leases that are required to be classified as a capitalized lease obligations in accordance with GAAP for all or any part of
the deferred purchase price of property or services (other than trade payables), (v) for all or any part of the deferred purchase
price of property or services (other than trade payables), including any “earnout” or similar payments or non-compete
payments, or (vi) under interest rate swap, hedging or similar agreements, or (b) any liability of others described in the preceding
clause (a) that such Person has Guaranteed, that is recourse to such Person or any of its assets or that is otherwise its legal
liability or that is secured in whole or in part by the assets of such Person. For purposes of this Agreement, Indebtedness includes
(A) any and all accrued interest, success fees, prepayment premiums, make-whole premiums or penalties and fees or expenses actually
incurred (including attorneys’ fees) associated with the prepayment of any Indebtedness and (B) any and all amounts owed
by the Company to any of its Affiliates including, without limitation, the Shareholder or any of his Affiliates.

 

Indemnified Party
has the meaning set forth in Section 10.3.1 hereof.

 

Indemnifying Party
has the meaning set forth in Section 10.3.1 hereof.

Insurance Policies
has the meaning set forth in Section 4.14 hereof.

 

Inventory means
all inventory which related to the Business, including, but not limited to, raw materials, work in process, finished products,
goods, spare parts, replacement and component parts, books, periodicals, merchandise for resale, packaging and shipping materials,
office, operating and other supplies, whether or not located at the Company’s place of business.

 

IRC means the Internal
Revenue Code of 1986, as amended, or any successor Law, and the regulations issued by the IRS pursuant thereto.

 

IRS means the United
State Internal Revenue Service or any successor agency, and to the extent relevant, the United States Department of the Treasury.

 

Judgment means any
order, writ, injunction, citation, award, decree or other judgment of any nature by any Governmental Body.

 

Laws means any provision
of any foreign, federal, state or local law, statute, ordinance, charter, constitution, treaty, code, rule, regulation, ordinance
or guideline, including common law and including laws, rules and regulations regarding zoning, occupational safety, environmental
protection, and employment practices.

 

Losses has the meaning
set forth in Section 10.1 hereof.

 

Malicious Code has
the meaning set forth in Section 4.15.6 hereof.

 

Material Adverse Effect
means any change or effect that (a) individually or when taken together with all other changes or effects that have occurred during
any relevant period of time prior to the date of determination of the occurrence of such change or effect, is or could reasonably
be expected to be materially adverse to the Business, its prospects, employee relations or the condition (financial or otherwise)
or results of operations of the Company or the Business, or (b) materially adversely affects the ability of the Sellers to perform
their obligations under this Agreement or the Transaction Documents or to consummate the transactions contemplated hereby or thereby.

 

Net Royalty shall
have the meaning ascribed to such term in Section 3.4 hereof.

 

Object Code means
codes resulting from the translation or processing of the Source Code by a computer into machine language or intermediate code,
which is thus in a form not convenient for human understanding of the program logic, but which is appropriate for execution or
interpretation by a computer.

 

Obligation means
any debt, liability or obligation of any nature, whether secured or unsecured, recourse or nonrecourse, liquidated or unliquidated,
accrued or unaccrued, absolute, fixed or contingent, ascertained or unascertained, direct or indirect, choate or inchoate, perfected
or unperfected, known or unknown, or otherwise, whether due or to become due.

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Order means any
award, injunction, judgment, order, ruling, subpoena, or verdict or other decision entered, issues, made or rendered by any court,
administrative agency, or other Governmental Body or by any arbitrator.

 

Ordinary Course of Business:
an action taken by a Person will be deemed to be in the “Ordinary Course of Business” only if (a) such action is consistent
with the past practices of such Person and is taken in the ordinary course of the normal day-to-day operations of such Person,
(b) such action is not required to be authorized by the board of directors of such Person (or by any Person or group of Persons
exercising similar authority), and (c) such action is similar in nature and magnitude to actions customarily taken, without any
authorization by the board of directors (or by any Person or group of Persons exercising similar authority), in the ordinary course
of the normal day-to-day operations of other Persons that are in the same line of business as such Person.

 

Organizational Documents
means (a) the articles or certificate of incorporation and the by-laws of a corporation; (b) any charter or similar document adopted
or filed in connection with the creation, formation, or organization of a Person (e.g., a certificate of formation, articles of
organization or certificate of limited partnership), and any agreement governing such Person (e.g., a limited liability company
agreement, operating agreement or partnership agreement); and (c) any amendment to any of the foregoing.

 

Patents has the
meaning set forth in Section 4.15.1 hereof.

 

Permit means any
license, permit, approval, waiver, order, authorization, right or privilege of any nature, granted, issued, approved or allowed
by any Governmental Body.

 

Person means any
individual, sole proprietorship, partnership, limited liability company, joint venture, trust, unincorporated association, corporation,
other entity or government (whether federal, provincial, state, county, city, or otherwise, including, but not limited to, any
instrumentality, division, agency or department thereof).

 

Personal Property
means any machinery, equipment, vehicles, trucks, furnishings, furniture, leasehold improvements, office equipment, computer equipment,
parts, tools, dies, supplies, and all other tangible personal property of any nature (including without limitation any of the foregoing
purchased subject to any conditional sales or title retention agreement in favor of any other Person).

 

Personal Property Leases
means all leases of Personal Property to which the Company is a party and which relate to the Business or the Transferred Assets.

 

Pre-Closing Period
has the meaning set forth in Section 6.1 hereof.

 

Proceeding means
any claim, suit, litigation, arbitration, hearing, audit, charge, investigation, or other action (whether civil, criminal, administrative,
investigative, or informal) commenced, brought, conducted, or heard by or before, or otherwise involving, any Governmental Body,
arbitrator or mediator.

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Proprietary Rights
of any Person means all intellectual property, confidential information, and proprietary information of such Person, including,
but not limited to, (a) patents and patent applications (including all reissuances, continuations, continuations-in-part, revisions,
extensions and reexaminations thereof) and patent disclosures and inventions (whether or not patentable and whether or not reduced
to practice); (b) trademarks, service marks, trade dress, trade names, Internet domain names, assumed names and corporate names,
together with the good will of the business associates with and symbolized by such trademarks, service marks, trade dress, trade
names and corporate names, in each case whether or not registered; (c) published and unpublished works of authorship, whether copyrightable
or not, including all statutory and common law copyrights associated therewith; (d) all registrations, applications, extensions
and renewals for any of the terms listed in clauses (b) and (c); (e) trade secrets; (f) Websites; (g) all computer programs, including
operating systems, applications, routines, interfaces, and algorithms, whether in Source Code or Object Code; (h) lists of customers
and potential customers (including any lists of electronic mail addresses of customers and potential customers); ideas; formulae;
compositions; know-how; manufacturing and production processes and techniques; research and development information; artwork and
graphic design; mastheads; photographs; negatives; manuscripts; drawings; specifications; list of suppliers and service providers;
pricing and cost information and records; blueprints; proofs; surveys; test reports; manuals; standards; catalogs; production methods;
financial business, sales and marketing proposals, research, data, and plans; improvements; technical and computer data; databases;
documentation; Software; promotional materials and related information; and other intellectual property, confidential information
and proprietary rights, in each case in any medium, including digital, and in any jurisdiction, together with all causes of action,
judgment, settlements, claims and demands of any nature related thereto, including the right to prosecute any past infringements
or other violations thereof.

 

Purchase Price has
the meaning set forth in Section 3.1 hereof.

 

Registrar shall
have the meaning set forth in Section 9.3 hereof.

 

Representatives
means officers, directors, agents, attorneys, accountants, advisors and representatives.

 

Required Consents
means those Consents required to consummate the transactions contemplated by this Agreement.

 

Restricted Period
has the meaning set forth in Section 11.2 hereof. 

 

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

 

Sellers’ Closing
Costs means all fees, costs and expenses (including all fees and expenses of Sellers’ legal, accounting and other professional
advisors) that are directly related to the transaction contemplated by this Agreement to the extent incurred by Sellers, including
(a) all payments required to obtain third party consents and expense incurred by Sellers in connection with transactions contemplated
hereby and (b) all change of control payments due by Sellers to any Person under any plan, agreement or arrangement of Sellers,
which liability, in each case, is payable or becomes due as a result of the consummation of the transactions contemplated hereby,
including all Taxes which are payable by Sellers in connection with the payment of such liability.

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Seller Indemnified Party
has the meaning set forth in Section 10.2 hereof.

 

Software means (i)
all software programs and applications and reusable software modules or templates developed by or on behalf of, or owned by, the
Company and intended for sale, license or use by the Company, on a stand alone basis or as part of a client engagement, including
all enhancements, versions, releases and updates of such products, and (ii) any other software products in development by the Company,
regardless of the products’ state of development; in each case, excluding any portions thereof which comprise Third Party
Software.

 

Source Code means
code suitable for reading or reproduction by computer and/or photocopying equipment, consisting of a full source language statement
for the Software, including, but not limited to, any programmers’ comments, any maintenance documentation, a master diskette
or tape, duplicating instructions, and any and all other existing materials reasonable required to enable reasonably skilled programmers
to use the Software.

 

Subsidiary means,
with respect to any Person, any corporation, limited liability company, partnership, association or business entity of which (i)
if a corporation, a majority of the total voting power of shares of stock entitled (without regard to the occurrence of any contingency)
to vote in the election of directors, managers, or trustee thereof is at the time owned or controlled, directly or indirectly,
by that Person or one or more of the other Subsidiaries of that Person or a combination thereof, or (ii) if a limited liability
company, partnership, association, or other business entity (other than a corporation), a majority of partnership or other similar
ownership interest thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more Subsidiaries
of that Person or a combination thereof. For purposes hereof, a Person or Persons shall be deemed to have a majority ownership
interest in a limited liability company, partnership, association, or other business entity gains or losses or shall be or control
any managing director, managing member or general partner of such limited liability company, partnership, association, or other
business entity.

 

Tax means any and
all federal, state, local or foreign taxes, assessments and other governmental charges based on or measured by gross receipts,
income, profits, sales, use and occupation, and franchise, estimated, alternative minimum, add-on minimum, sales, use, real or
immovable property, personal or movable property, intangible property, social security, employment, unemployment, payroll, deductions
at source, employee or other withholding, including any interest, penalties or additions to tax or additional amounts in respect
of the forgoing; whether disputed or not, and including any transferee or secondary liability in respect of any tax (whether by
Law, contractual agreement, or otherwise) and any liability in respect of any tax as a result of being a member of any affiliated,
consolidated, combined, unitary, or similar group.

 

Tax Returns means
returns (including information returns), declarations, reports, claims for refund, information returns or other documents (including
any related or supporting schedules, statements or information and any amendment thereof) filed or required to be filed with, or
submitted to, any Governmental Body, in connection with the determination, assessment or collection of any Taxes of any party or
the administration of any Laws, regulations or administrative requirements relating to any Taxes.

Territory has the
meaning set forth in Section 11.2 hereof.

 

Third Party Claim
has the meaning set forth in Section 10.3.1 hereof.

 

Third Party Marks
has the meaning set forth in Section 4.15.7 hereof.

 

Third Party Software
means any (i) off-the-shelf software and/or (ii) any software utility, tool, application or program, which was not developed at
the specific request or direction of the Company, including, but not limited to, the Source Code therefore and the Object Code
and Documentation of or relating thereto.

 

A claim, Proceeding, dispute,
action, or other matter will be deemed to have been “Threatened” if any notice, demand or statement has been
given or made in writing, or if any other event has occurred or any other circumstances exist, that would lead a prudent Person
to conclude that such a claim, Proceeding, dispute, action, or other matter is likely to be asserted, commenced, taken, or otherwise
pursued in the future.

 

Trademarks has the
meaning set forth in Section 4.15.1 hereof.

 

Transaction Documents
means each agreement, document, certificate and instrument being delivered pursuant to this Agreement.

 

Transferred Assets
shall have the meaning set forth in Section 2.1 hereof.

 

Websites means all
series of interconnected pages on the World Wide Web, documents, files, content, written materials, graphics and designs, formatted
using HTML code or another web-based code, located at, or otherwise intended to be accessible by Internet users with web browsers
visiting, uniform resource locators comprises of one of the domain names listed on Schedule 4.19.1 and all content, information
and other materials associates therewith, including, but not limited to, (i) any computer software, script, programming code, formatting
code, data, methodologies and processes used in the operation thereof or otherwise related thereto; (ii) all versions, works in
process, updates, fixes, enhancements, and releases thereof; (iii) all mirror sites associates with the foregoing; and (iv) all
copyrights, trademarks, trade secrets and other intellectual property, in any jurisdiction, inherent in the forgoing or appurtenant
thereto.

 

ARTICLE 2

 

TRANSFER OF ASSETS

 

2.1Transfer of
Assets. Subject to the terms and conditions of this Agreement, at the Closing, the Company agrees to sell, transfer, convey,
assign and deliver to Buyer, and Buyer agrees to purchase from the Company, all right, title and interest of the Company in and
to all of the properties, assets and rights of any nature, kind and description, tangible or intangible (including goodwill), whether
real, personal or mixed, whether accrued, contingent or otherwise, and whether now existing or hereafter acquired (other than Excluded
Assets and Excluded Liabilities), relating to, required for, or used or held for use in connection with the Business as the same
may exist on the Closing Date (collectively, the “Transferred Assets”), including without limitation all items
in the following categories that conform to the definition of “Transferred Assets:”

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2.1.1All
right, title and interest of the Company in and to the Business as a

going concern;

 

2.1.2Cash
Assets;

 

2.1.3All
Accounts Receivable;

 

2.1.4All credits,
prepaid expenses, deferred charges, advance payments, security deposits and prepaid items of any kind and character;

 

2.1.5All Inventory,
whether on-site, on consignment or on order, including Inventory held at any location controlled by the Company or third parties
and Inventory previously purchased and in transit to the Company at such locations;

 

2.1.6All rights
in and to products sold or leased (including without limitation products hereafter returned or repossessed and unpaid rights of
rescission, replevin, reclamation and right to stoppage in transit);

 

2.1.7All Personal
Property and all rights under all Personal Property leases, including any capital leases;

 

2.1.8All of the
Company’s Real Property and, to the extent transferable, all licenses, permits, approvals and qualifications relating to
the Real Property issued to the Company by any Governmental Body;

 

2.1.9All of the
rights of the Company under all Contracts, including, without limitation, any right to receive payment for products sold or services
rendered, and to receive goods and services, pursuant to such Contracts and to assert claims and take other rightful actions in
respect of breaches, defaults and other violations of such Contracts;

 

2.1.10All books,
records, manuals and other materials (in any form or medium), including without limitation all records and materials maintained
at each of the Company’s places of business, advertising matter, catalogues, price lists, correspondence, mailing lists,
lists of customers, lists of vendors, distribution lists, photographs, production data, sales and promotional materials and records,
customer quotations, estimates and/or proposals (including file background information), purchasing materials and records, personnel
records, manufacturing and quality control records and procedures, blueprints, plans, research and development files, records,
data and laboratory books, Proprietary Rights, disclosures, media materials and plates, accounting records, sales order files and
litigation files, including a copy of the Company’s ledger books;

 

2.1.11All Proprietary
Rights and all rights thereunder or with respect thereto, together with all rights to sue for and remedies against past, present
and future infringements thereof, and rights of priority and protection of interests therein under the Laws of any jurisdiction
worldwide and all tangible embodiments thereof;

 

2.1.12To the extent
transferable, all Governmental Authorizations, including all applications therefor;

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2.1.13All guarantees,
warranties, indemnities and similar rights in favor of the Company with respect to any Transferred Asset or the Business; and

 

2.1.14Any and
all rights of the Company in and to all post office boxes, lock boxes or other boxes to which payments to the Company are mailed
or deposited, including without limitation, all keys, combinations and passwords thereto (collectively, the “Post Office
Boxes”).

 

Subject to the terms and
conditions hereof, at the Closing, the Transferred Assets shall be transferred or otherwise conveyed to Buyer free and clear of
all liabilities, obligations and Encumbrances, excepting only the Assumed Liabilities.

 

2.2Excluded Assets.
Notwithstanding anything to the contrary contained in this Agreement or elsewhere, the following assets are excluded from the definition
of Transferred Assets and are not to be sold to Buyer under this Agreement (collectively, the “Excluded Assets”):
Corporate minute books and other corporate records, including the Company’s original ledger books, not described in Section
2.1.10 above.

 

2.3Assumption
of Liabilities. Buyer shall assume only those obligations of the Company under customer purchase orders incurred in the
Ordinary Course of Business existing on the Closing Date (the “Assumed Liabilities”) and no other liabilities,
provided that such liabilities are not due to any breach or default by the Company prior to the Closing Date, and, further provided
that, as to all pre-paid customer purchase orders, the Buyer shall receive a credit at Closing for the amount of all prepayments.

 

2.4Excluded Liabilities.
Other than the Assumed Liabilities, Buyer shall not assume any Obligations ( including any Taxes that may become payable by
the Company, whether arising or relating to the sale of the Transferred Assets and the Business or otherwise) of the Company relating
to or arising out of the operation of the Business or the ownership of the Transferred Assets prior to the Closing Date (collectively,
the “Excluded Liabilities”).

 

It is understood and agreed that Buyer is only
purchasing certain Transferred Assets of the Company, that Buyer is not intended to be a successor to any of the Company for any
purpose, and that Buyer has not assumed, and expressly denies assumption of any liability, obligation or commitment of the Company
except the Assumed Liabilities.

 

2.5Risk of Loss.
The Company hereby assumes and bears the risk of physical loss of, or damage to, the Transferred Assets occurring prior to
the delivery of the Transferred Assets as specified in this Agreement and shall maintain in full force and effect property insurance
for the full replacement value of the Transferred Assets. If the Company fails to deliver any of the Transferred Assets to Buyer
at the time and in the manner specified for delivery in this Agreement by reason of such physical loss or damage or otherwise,
then, in addition to any rights which the Buyer may have not to close by reason of a failure of the condition precedent referred
to in Section 7.1.2, at the option of Buyer, if the Closing occurs, the Purchase Price shall be decreased by the net book
value of the Transferred Assets so lost, damaged or otherwise not transferred to Buyer, or Buyer shall receive insurance proceeds
in the amount of the full replacement value of such Transferred Assets. Buyer shall bear the risk of physical loss of, or damage
to, the Transferred Assets occurring after the delivery of the Transferred Assets as specified in this Agreement.

    	10

    	 

    

 

ARTICLE 3

 

PURCHASE PRICE AND ADJUSTMENTS

 

3.1Purchase Price.
In consideration of the sale, transfer, conveyance and assignment to Buyer of the Transferred Assets, Buyer shall, in full payment
thereof, pay to the Company the aggregate purchase price (the “Purchase Price”) of Five Hundred Thousand ($500,000)
Dollars, payable at Closing as follows:

 

3.1.1 $50,000 by bank
check or in immediately available funds.

 

3.1.2$450,000
in restricted stock of the Buyer. The number of shares of Buyer Stock shall be determined based upon the stock price using the
30 day volume weighted average price preceding the Closing Date.

 

3.2Price
Adjustments. The Buyer shall receive a credit against the cash portion of the

Purchase Price for all prepaid customer purchase
orders assumed by the Buyer pursuant to Section 2.3.

 

3.3Allocation
of Purchase Price. The fair market value of the Transferred Assets and the allocation of the Purchase Price for purposes
of the parties’ respective tax returns and reports to tax authorities (including the filing of Form 8594) will be determined
in accordance with Section 1060 and other appropriate sections of the IRC and the Treasury Regulations issued thereunder. The Company
and Buyer agree and acknowledge that said allocations are fair and equitable, that they reflect the agreement of the parties hereto,
and that the parties shall adhere to such allocations for purposes of all federal, state and local tax returns filed by them subsequent
to the Closing Date, including determination by the Company of taxable gain or loss on the sale of the Transferred Assets hereunder
and the determination by Buyer of its tax basis with respect to the Transferred Assets.

 

3.4Net
Royalty. In addition to the Purchase Price, Buyer shall pay to the Company a

net royalty (the “Net Royalty”)
equal to five (5%) percent of the gross profits of the Division for a period of two (2) years after the Closing Date; provided,
however, that the aggregate Net Royalty payable pursuant to this Section 3.4 shall not exceed One Hundred Fifty Thousand
($150,000) Dollars and upon the payment of said $150,000, all payments of Net Royalty shall cease. The Net Royalty shall be payable
quarterly, within fifteen (15) days after the completion of the quarterly determination of gross profits of the Division by the
Buyer. The Buyer agrees to maintain separate records for the Division. The gross profits of the Division shall be determined in
accordance with GAAP, on a quarterly basis with an annual reconciliation. In the event that the annual reconciliation results in
any change in the quarterly statements, the parties agree to make appropriate payment one to the other to reflect same. The Buyer
shall provide the Company with a statement of its determination of quarterly gross profits of the Division and the annual reconciliation
and, absent manifest error, such statements and reconciliation shall be binding upon the parties hereto. If the Company shall not
object to the determination of gross profit of the Division within thirty (30) days after receipt of the foregoing statement or
reconciliation, it shall be deemed final.

    	11

    	 

    

 

ARTICLE 4

 

REPRESENTATIONS AND WARRANTIES OF

THE SELLERS

 

As a material inducement
to the Buyer to enter into this Agreement, each of the Sellers, jointly and severally, represents and warrants to the Buyer as
follows:

 

4.1Organization.

 

4.1.1The Company
is a Corporation duly organized, validly existing and in good standing under the Laws of the State of New York. The Company possesses
the full power and authority to enter into and perform its obligations under this Agreement. The Company possesses the full power
and authority: (i) to own and use its assets in the manner in which such assets are currently owned and used by the Company and
(ii) to conduct its business as such business is currently being conducted by the Company. The Company is duly qualified or registered
to do business in each jurisdiction where such qualification or registration is required by applicable Law. The Company is in good
standing in each of the jurisdictions where it is required by Law to be qualified or registered to do business.

 

4.1.2Schedule
4.1 sets forth, for the Company: (i) its exact legal name; (ii) its corporate business form and jurisdiction and date of formation;
(iii) its federal employer identification number; (iv) its headquarters address, telephone number and facsimile number; (v) its
officers and directors, indicating all current titles(s) of each individual; (vi) its registered agent and/or office in its jurisdiction
of formation (if applicable); (vii) all foreign jurisdictions in which it is qualified or registered to do business, the date it
so qualified or registered, and its registered agent and/or office in each such jurisdiction (if applicable); (viii) all fictitious,
assumed or other names of any type that are registered or used by it or under which it has done business within the past five (5)
years; and (ix) any name changes, recapitalizations, mergers, reorganizations or similar events within the past five (5) years.

 

4.1.3Accurate
and complete copies of the articles of incorporation and by-laws of the Company have been delivered to the Buyer.

 

4.2Authority;
Non-Contravention.

 

4.2.1The Company
has the absolute and unrestricted right, power and authority to enter into, execute, deliver and perform its obligations under
this Agreement, and the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated
hereby by the Company have been duly authorized by all necessary corporate action. The Shareholders have the absolute and unrestricted
right, power, authority and capacity to enter into, execute, deliver and perform all of their obligations under this Agreement
and under each other agreement, document or instrument referred to in or contemplated by this Agreement to which a Shareholder
is or is to become a party. This Agreement constitutes the legal, valid and binding agreement of the Shareholders and the Company,
enforceable against the Shareholders and the Company in accordance with its terms.

    	12

    	 

    

 

4.2.2Neither the
execution, delivery and performance of this Agreement nor the consummation or performance of any of the transactions contemplated
hereby by the Company will directly or indirectly (with or without notice or lapse of time): (i) contravene, conflict with or result
in a violation of (a) any of the provisions of the Organizational Documents of the Company, or (b) any resolution adopted by the
Company; (ii) contravene, conflict with or result in a violation of, or give any Governmental Body or other Person the right to
challenge any of the transactions contemplated hereby or to exercise any remedy or obtain any relief under, any Law or any Judgment
to which the Company or a Shareholder, or any of the assets owned or used by the Company, is subject; (iii) contravene, conflict
with or result in a violation of any of the terms or requirements of, or give any Governmental Body the right to revoke, withdraw,
suspend, cancel, terminate or modify, any Governmental Authorization that is held by the Company or that otherwise relates to the
Business or to any of the assets owned or used by the Company, (iv) cause Buyer or the Company to become subject to, or to become
liable for, any Tax; (v) contravene, conflict with or result in a violation or breach of, or result in a default under, any provision
of this Agreement, or any Contract to which a Shareholder or the Company is a party or by which he or it is bound; or (vi) result
in the imposition or creation of any Encumbrance upon or with respect to any asset owned or used by the Company.

 

4.3Capitalization.
The Shareholders are the sole shareholders of the Company.

 

4.4Financial
Statements. Attached to Schedule 4.4 are true, complete and correct internally prepared statements of income and expenses
of the Company for the period(s) indicated and a balance sheet of the Company as of the date indicated. The statements of income
and expense and balance sheet attached to Schedule 4.4 are hereinafter collectively referred to as the “Financial
Statements”. The Financial Statements are true, correct and complete in all material respects and have been prepared
from the books and records of the Company. The Financial Statements fairly present in all material respects the financial position
of the Company as at such dates and the results of its operations.

 

4.5Inventory.
Schedule 4.5 contains an accurate and complete list of all Inventory of the Company as of the date of this Agreement.

 

4.6Personal Property.
Schedule 4.6 contains a complete and correct list of all Personal Property owned by the Company. The Company has good and
marketable title to all of its Personal Property, free and clear of any Encumbrances. All of the Company’s Personal Property
is located at the Company’s offices or facilities.

 

4.7Contracts.

 

4.7.1Schedule
4.7 contains an accurate and complete list of all of the Contracts to which the Company is a party or by which the Company
or any of its assets are bound or subject.

 

4.7.2With respect
to each Contract that is a purchase or sale order, whether booked or unbooked, Schedule 4.7 sets forth the full and complete
terms of such orders and there are no other agreements, whether relating to price, deliveries, returns or otherwise with respect
to such orders. Except as set forth on Schedule 4.7, there are no agreements, arrangements or understandings, express or
implied, between the Company and any of its customers relating to conditions of doing business with such customer in the future,
including promises to accept returns or offer discounts.

    	13

    	 

    

 

4.7.3Each Contract
is valid and in full force and effect, and is enforceable by the Company which is a party in accordance with such Contract’s
terms.

 

4.7.4Except as
set forth on Schedule 4.7: (i) to the Company’s knowledge, no Person has violated, breached or declared or committed
any default under, any Contract; (ii) no event has occurred, and no circumstance or condition exists, that might (with or without
notice or lapse of time) (A) result in a violation or breach of any of the provisions of any Contract, (B) give any Person the
right to declare a default or exercise any remedy under and Contract, (C) give any Person the right to accelerate the maturity
or performance of any Contract, or (D) give any of the Company or any other Person, the right to cancel, terminate or modify any
Contract; (iii) the Company has not received any notice or other communication (in writing or otherwise) regarding any actual,
alleged, possible or potential violation or breach of, or default under, any Contract; (iv) the Company has not waived any of its
respective rights under any Contract; and (v) no Contract has been amended.

 

4.7.5The performance
of the Contracts in accordance with their respective terms will not result in any violation of or failure to comply with any Judgment
or Law applicable to the Company on or prior to the Closing Date.

 

4.7.6Except as
set forth on Schedule 4.7, the Contracts relating to the sale, design, manufacture or provision of products or services
by the Company have been entered into in the Ordinary Course of Business and have been entered into without the commission of any
act alone or in concert with any other Person, or any consideration having been paid or promised, that is or would be in violation
of any Laws.

 

4.8.Real
Property. The Company does not own nor lease any Real Property.

 

4.9Encumbrances.
Except as set forth on Schedule 4.9, the Company owns all of the Transferred Assets free and clear of all Encumbrances.

 

4.10Condition
and Sufficiency of Transferred Assets. The Company is in actual possession of all of the Transferred Assets (tangible and
intangible) owned or leased by any of them and which are useful or necessary for the operation of the Business as now conducted
and as conducted as of Balance Sheet Date. The Transferred Assets constitute all assets required for the conduct of the Business
as they have been conducted by the Company. The Transferred Assets, taken as a whole, constitute all of the properties and assets
relating to or used or held for use in connection with the Business during the past twelve months (except inventory sold, cash
disposed of, Accounts Receivable collected, prepaid expenses realized, Contracts fully performed, assets disposed of with an aggregate
value not in excess of $5,000, properties or assets replaced by equivalent or superior properties or assets, in each case in the
Ordinary Course of Business, and the Excluded Assets). There are no assets or properties used in the operation of the Business
and owned by any Person other than the Company, unless such assets or properties will be leased or licensed to Buyer under valid,
current leases or license arrangements that have been disclosed to Buyer. The Transferred Assets are in all material respects adequate
for the purposes for which such assets are currently used or are held for use, and are in reasonably good repair and operating
condition (subject to normal wear and tear) and, to the Knowledge of the Company, there are no facts or conditions affecting the
Transferred Assets which could, individually or in the aggregate, interfere in any material respect with the use, occupancy or
operation thereof as currently used, occupied or operated, or their adequacy for such use.

    	14

    	 

    

 

4.11Operations
Since the Balance Sheet Date. Since the Balance Sheet Date, there has been no material adverse change or casualty loss
affecting the Company or the business, assets or financial condition of the Company; and there has been no material adverse change
in the financial performance of the Company; and there has been no loss, damage or destruction to, or any interruption in the use
of the assets (whether or not covered by insurance) of the Company.

 

4.12.Compliance
with Laws; Governmental Authorizations.

 

4.12.1(i) The
Company is in full compliance with each Judgment and with each Law that is applicable to it or to the conduct of any of its businesses
or the ownership or use of any of its assets; (ii) the Company has at all times been in full compliance with each Judgment or Law
that is or was applicable to it or to the conduct of any of its businesses or the ownership or use of any of its assets; (iii)
no event has occurred, and no condition or circumstances exists, that would reasonably constitute (with or without notice or lapse
of time) or result in a violation of the Company of, or a failure on the part of the Company to comply with, any Judgment or Law;
and (iv) the Company has not received, at any time, any notice or other communication (in writing or otherwise) from any Governmental
Body or any other Person regarding (A) any actual, alleged, possible or potential violation of, or failure to comply with, any
Judgment or Law, or (B) any actual, alleged, possible or potential obligation on the part of the Company to undertake, or to bear
all or any portion of the cost of, any cleanup or any remedial, corrective or response action of any nature.

 

4.12.2The Company
has obtained and holds all Governmental Authorizations required for the lawful operation of the Company’s Business as and
where such business is presently conducted. All Governmental Authorizations held by the Company have been lawfully issued and are
in full force and effect. All Governmental Authorizations held by the Company are set forth in Schedule 4.12, and accurate
and complete copies of such Governmental Authorizations have been delivered to Buyer.

 

4.13Proceedings
and Judgments.

 

4.13.1(i) No Proceeding
is currently pending or threatened; (ii) no Proceeding occurred at any time since its incorporation, to which the Company is or
was a party, or by which the Company or any assets or business of the Company is or was affected other than collection and preference
actions arising in the normal course of business; (iii) no Judgment is currently outstanding, nor has any Judgment been outstanding
at any time since the Company’s incorporation, against the Company, or by which the Company or any assets or business of
the Company is or was affected; and (iv) no breach of Contract, breach of warranty, tort, negligence, infringement, product liability,
discrimination, wrongful discharge or other claim of any nature has been asserted or Threatened by or against the Company at any
time since its incorporation, and there is no basis for any such claim. No event has occurred, and no claim, dispute or other condition,
circumstance or state of facts exists, that is reasonably likely to, directly or indirectly give rise to or serve as a basis for
the commencement of any Proceeding.

    	15

    	 

    

 

 

4.13.2There is
no proposed Judgment against the Company that, if issued or otherwise put into effect, (i) would reasonably be likely to have a
material adverse effect on business, condition, assets, liabilities, operations, employees, financial performance, revenues, net
income, political environment, economic environment or prospects of or with respect to the Company (or on any aspect or portion
thereof) or on the ability of the Company or the Shareholders to comply with or perform any covenant or obligation under this Agreement,
or (ii) may have the effect of preventing, delaying, making illegal or otherwise interfering with any of the transactions contemplated
by this Agreement.

 

4.14Insurance.
Schedule 4.14 contains an accurate and complete list and description of all insurance policies (the “Insurance
Policies”) currently owned or maintained by the Company and all liability and errors and omissions Insurance Policies
owned or maintained by the Company. Except as set forth on Schedule 4.14, all such Insurance Policies are or were on an
“occurrence” rather than a “claims made” basis. All of the Insurance Policies are sufficient for compliance
with all requirements of Law and of Contracts to which the Company is a party. The Insurance Policies provide adequate insurance
coverage for the assets and operations of the Company’s Business.

 

4.15 Proprietary
Rights.

 

4.15.1Schedule
4.15 sets forth the following Proprietary Rights owned or used by the Company in connection with the Business: (i) patents
and patent applications (including all reissuances, continuations, continuations-in-part, revisions, extensions and reexaminations
thereof) (the “Patents”); (ii) trademark and service mark registrations, registration applications, and material
unregistered trademarks and service marks (the “Trademarks”); (iii) Internet domain name registrations (the
“Domain Names”); (iv) copyright registrations, renewals and applications for registration of copyrights (the
“Copyrights”); (v) material Software; and (vi) registered and unregistered trade names and corporate names.
All Patents, Trademarks, Domain Names and Copyrights set forth on Schedule 4.15 are currently in the name of the Company,
and remain in full force and effect; no Proprietary Right that is the subject of a patent or patent application, trademark or service
mark registration or registration application has been canceled, abandoned, adjudicated invalid, or otherwise terminated; and all
renewal and maintenance fees in respect of the Proprietary Rights have been duly paid.

 

4.15.2The Company
owns all right, title and interest in and to, or possesses the valid right to use in the manner and to the extent used in the Business,
all Proprietary Rights used in or necessary for the operation of the Business, free and clear of any Encumbrances.

 

4.15.3The Company
has not infringed, misappropriated or violated, and is not currently infringing, misappropriating or violating, any Proprietary
Rights of any third party. (i) No complaint, action, suit, claim, Proceeding, other dispute, or investigation, asserting the invalidity,
misuse or unenforceability of any Proprietary Rights, contesting ownership of any Proprietary Rights, or otherwise challenging
the Company’s rights in or use of the Proprietary Rights, is pending or Threatened, and no valid grounds for the same exist;
(ii) the Company has not received any written notices, and has no knowledge of any facts, that indicate that the conduct of the
Business and/or use of any Proprietary Rights has infringed, misappropriated or otherwise conflicted with, or infringes, misappropriates
or otherwise conflicts with, any Proprietary Rights of any other Person; and (iii) none of the Proprietary Rights owned by the
Company has been or is currently being infringed, misappropriated or otherwise violated by any Person.

    	16

    	 

    

 

4.15.4No Proprietary
Right is subject to termination or modification as a result of the transactions contemplated by this Agreement or any Transaction
Document or the transactions contemplated hereby or thereby.

 

4.15.5(i) All
Proprietary Rights used in the operation of the Business (including, but not limited to, Software and all Websites) have been either
(A) developed or created by employees of the Company who developed or created such Proprietary Rights acting fully within the scope
of their employment with the Company and all rights thereto are exclusively owned by the Company or (B) are being used by the Company
pursuant to, and in compliance with any Contracts to which the Company is a party, copies of which have been previously supplied
to the Buyer; (ii) Neither the Company nor any third party is engaged or authorized to develop, create, design, use, modify, create
derivative works of, distribute, sell, resell, license, sublicense, support, maintain, integrate or implement any Proprietary Rights,
including any source code escrow agreements. No open source or public library software (such as, but not limited to, software licensed
under the GNU General Public License, BSD License, Apache or Open LDAP Public License) is used in the Software.

 

4.15.6(i) No Software
or Third Party Software owned by the Company, licensed to the Company or used in the Business contains any back door, time bomb,
Trojan horse, worm, drop dead device, or virus (as such terms are used in the computer software industry), or any other software
routines or hardware components designed to permit unauthorized access to, or to disable or damage, any computer system, software,
hardware, or data, or to perform any similar function (collectively, “Malicious Code”); (ii) none of the Websites
(or any component thereof), other Proprietary Rights, or other assets owned or licensed by the Company, performs, or is designed
to perform, any illegal or malicious act in respect of any user of any of the Websites or any computer system, software, hardware
or data, including, but not limited to, downloading Malicious Code and harvesting electronic mail addresses; (iii) no Proprietary
Rights, including the Software, contain Third Party Software; and (iv) no Third Party Software is required not entered into any
agreement under which it is restricted from selling, licensing or otherwise marketing or distributing any products or services,
whether to any class or type of customers or through any type of channel or in any geographic area or during any period of time,
or otherwise, including by virtue of any exclusive arrangements with distributors, resellers or others.

 

4.15.7(i) The
Company has not used, authorized the use of or purchased as keywords or uniform resource locators, is not using or authorizing
the use or purchase of, and has written agreements with any and all affiliate marketing services vendors engaged by the Company
not to purchase as keywords or otherwise use, any trademarks, service marks, or trade names of any competitor of the Company or
any other Person, or any terms confusingly similar thereto (“Third Party Marks”), in any manner designed to:
divert traffic from or to obscure another Person’s website, without the Consent of such other Person; to disrupt the experience
of a visitor to the website of another Person, without the Consent of such other Person; to elevate search engine rankings of the
Company or its Business above those of any competitor of the Company; or to infringe, tarnish, dilute or otherwise violate such
Third Party Marks; and (ii) the Company has taken all reasonable measures to comply with (x) the Controlling the Assault of Non-Solicited
Pornography and Marketing Act of 2003 (the “CAN-SPAM Act”), including, but not limited to, complying with all
disclosure requirements, and those requirements relating to opt-out mechanisms and requests, in regard to all electronic mail messages
that qualify as “commercial electronic mail messages” within the meaning of the CAN-SPAM Act; and (y) with all other
Laws applicable to the Internet related to the marketing, promotion and operation of the Business.

    	17

    	 

    

 

 

4.15.8The Company
has taken all reasonable measures to safeguard and maintain the secrecy, confidentiality and value of any and all trade secrets
and confidential processes, algorithms, source code, know how, business methods, data, or other confidential information, data
and materials owned by or licenced to the Company or used in the Business, and the Company has not, by any of its acts or omissions,
or by the acts or omissions of its Affiliates or representatives, caused any of the Proprietary Rights to be transferred, diminished,
tarnished, or otherwise adversely affected. All officers, directors, employees, representatives and other Persons with access to
such confidential information and/or trade secrets have executed, and delivered to the Company, a written agreement restricting
the unauthorized disclosure and use of confidential information of the Company and any other Persons to whom the Company owes a
duty of confidentiality.

 

4.15.9No government
funding or university, college or other facilities of any institution of higher education were used in the development of any of
the Proprietary Rights, and no Proprietary Rights were developed pursuant to any contract or other arrangement with any other Persons.

 

4.16Employees
and Employee Benefits. The Company has no Employees other than the Shareholders. The Company has never maintained, made
contributions to or had any other liability with respect to any Employee Benefit Plan at any time

 

4.17Taxes.

 

4.17.1The Company
has timely filed all Tax Returns required to be filed. All such Tax Returns are true, correct and complete in all respects. All
Taxes owed by the Company (whether or not shown on any Tax Return) have been paid.

 

4.17.2The Company
does not have any Tax deficiency outstanding, proposed, assessed, or Threatened by any Tax authority against the Company. The Company
has not executed or requested any waiver of any statute of limitations on or extending the period for the assessment or collection
of any Tax.

 

4.17.3There is
no investigation or other Proceeding pending or Threatened by any Tax authority for any jurisdiction where the Company does not
file Tax Returns with respect to a given Tax that involves an assertion by such Tax authority that the Company is or may be subject
to a given Tax in such jurisdiction in connection with the conduct of the Business prior to the Closing Date.

 

4.17.4There are
no Liens for Taxes on the assets of the Company other than Taxes not yet due and payable.

    	18

    	 

    

 

 

4.18Product and
Service Warranties. All products and services performed by the Company are in material compliance with all express or implied
warranties of the Company, and no material liability exists for replacement or re-performance thereof, recall or other damages
in connection with such sales, deliveries or performance at any time prior to the date hereof. Schedule 4.18 sets forth
the normal service or product warranties extended by the Company to its customers in the Ordinary Course of Business. Except for
such normal warranties and the warranties arising under the Contracts set forth on Section 4.7 the Company has not extended
any warranty, guaranty and or other similar undertaking with respect to contractual performance. Except as set forth on Schedule
4.18, the Company has not been notified in writing of any claims for, and there are no Threatened claims for, any returns,
recalls, warranty obligations or product services relating to any of its products or services.

 

4.19Environmental
and Safety Requirements.

 

4.19.1The Company
has complied and is in compliance with all applicable Environmental and Safety Requirements, and the Company possesses all required
Governmental Authorizations, and has filed all notices or applications, required thereby.

 

4.19.2(i) The
Company has never generated, transported, treated, stored, disposed of, arranged for the disposal of, or otherwise handled, any
Hazardous Materials at any site, location or facility owned or operated or used by the Company or at any offsite location and (ii)
no Hazardous Materials are present on, in, under or emanating from any Real Property, and the Real Property does not contain any
Hazardous Materials except as, for either (i) or (ii), would not result in a condition in violation of, or any liability under,
any applicable Environmental and Safety Requirements. There are no underground storage tanks on the Real Property.

 

4.19.3The Company
has not been subject to, and the Company has not received any written notice of, any private, administrative or judicial action,
order and investigation relating to any violation of Environmental and Safety Requirements or the presence or alleged presence
of Hazardous Materials in, under, upon or emanating from any real or immovable property now or previously owned or used by the
Company or any offsite location, and there is no reasonable basis in fact or Law for any such notice of action. There are no pending
or Threatened actions, investigations, Orders or Proceedings from any Governmental Body or any other entity regarding any matter
relating to Environmental and Safety Requirements.

 

4.19.4No facts,
events or conditions with respect to the past or present operations or facilities of the Company or the Business exist which would
reasonably be expected to materially interfere with or prevent continued compliance with, or would give rise to any material common
law or statutory liability or otherwise form the basis of any Proceeding against or involving the Business under any Environmental
and Safety Requirement based on any such fact, event or circumstance, including, but not limited to, material liability for cleanup
costs, personal injury or property damage.

    	19

    	 

    

 

4.19.5For purposes
of this Agreement, “Environmental and Safety Requirements” means all federal, state and local or municipal Laws,
rules, regulations, ordinances, orders, statutes and requirements, and all common law, relating to public health and safety, worker
health and safety, pollution or protection of the environment. For purposes of this Agreement, “Hazardous Materials”
means (A) hazardous materials, hazardous substances, extremely hazardous substances or hazardous wastes, as those terms are defined
by the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. §9601 et seq., the Resource Conservation
and Recovery Act, 42 U.S.C. §6901 et seq., and any other Environmental and Safety Requirements; (B) petroleum, including,
but not limited to, crude oil or any fraction thereof which is liquid at standard conditions of temperature and pressure (60 degrees
Fahrenheit and 14.7 pounds per square inch absolute); (C) any radioactive material, including, but not limited to, any source,
special nuclear, or by-product material as defined in 42 U.S.C. §2011 et seq.; (D) asbestos in any form or condition; and
(E) any other material, substance or waste to which liability or standards of conduct may be imposed under any Environmental and
Safety Requirements.

 

4.20Suppliers.
In the last twelve (12) months, no such supplier has canceled or otherwise terminated, or Threatened to cancel or terminate,
its relationship with the Company. The Company has not received any written notice nor does either have any knowledge that any
such supplier intends to cancel or otherwise adversely modify its relationship with an account of the transactions contemplated
by this Agreement or any Transaction Document or the transactions contemplated hereby or thereby, or that any such supplier is
Threatened with bankruptcy or insolvency.

 

4.21Absence of
Questionable Payments. The Company has not, nor has any member, manager, director, officer, agent, employee or other Person
acting on behalf of the Company, (a) used any corporate or other funds for unlawful contributions, payments, gifts or entertainment,
or made any unlawful expenditures relating to political activity to government officials or others or established or maintained
any unlawful or unrecorded funds in violation of Section 104 of the Foreign Corrupt Practices Act of 1977 (15 U.S.C. §79dd-1),
as amended, or any other applicable foreign, federal or state Law, (b) accepted or received any unlawful contributions, payments,
expenditures or gifts, or (c) established or maintained any fund or asset that has not been recorded in the books and records of
the Company.

 

4.22Brokers or
Finders. Neither the Company nor any of its agents has incurred any obligation or liability, contingent or otherwise, for
brokerage or finders’ fees or agents’ commissions or other similar payment in connection with this Agreement or the
Transaction Documents or the transactions contemplated hereby and thereby.

 

4.23Buyer
Stock.

 

4.23.1The Buyer
Stock to be acquired by the Sellers will be acquired for investment for the Sellers’ own account and not with a view to the
distribution thereof within the meaning of Section 2(11) of the Securities Act. Each Seller understands that the Buyer Stock has
not been, and will not be, registered under the Securities Act by reason of a specific exemption from the registration provisions
of the Securities Act, which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of
such Seller’s representations as expressed in this Agreement.

    	20

    	 

    

 

4.23.2 The Sellers
have received all the information they consider necessary or appropriate for deciding whether to acquire the Buyer Stock. Sellers
have reviewed the quarterly, annual, and periodic reports of Buyer that have been filed with the United States Securities and Exchange
Commission (“SEC”). The Sellers have been given the opportunity to obtain any information or documents relating
to, and ask questions and receive answers about, Buyer, Buyer’s Stock, and the business and prospects of Buyer which they
deem necessary to evaluate the merits and risks related to their investment in such shares and to verify the information received.

 

4.23.3 The Sellers
have such knowledge and experience in financial and business matters that the Sellers are capable of evaluating the merits and
risks of its investment in the Buyer and have the capacity to protect their own interests. The Sellers are able to bear the economic
risks of its investment in the Buyer Stock for an indefinite period of time, including the risks of a complete loss of the Sellers’
investment in such securities.

 

4.23.4 The Sellers
understand that the Buyer Stock is characterized as “restricted securities” as defined in Rule 144 promulgated under
the Securities Act because they are being acquired from the Buyer in a transaction not involving a public offering and that, under
the Securities Act, the Buyer Stock may be resold without registration under the Securities Act only in certain limited circumstances.
The Sellers acknowledge that the Buyer Stock must be held indefinitely unless subsequently registered under the Securities Act
and under applicable state securities laws or an exemption from such registration is available. The Sellers are aware that the
provisions of Rule 144 promulgated under the Securities Act, which permit limited resale of shares purchased in a private placement
are subject to the satisfaction of certain conditions, including, among other things, the availability of certain current public
information about the Buyer and the resale occurring not less than six months after a party has purchased and paid for the security
to be sold.

 

4.23.5 The Sellers
understand that the Buyer Stock and any securities issued in respect thereof or exchanged therefor, may bear, substantially, one
or all of the following legends:

 

THESE SECURITIES HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, OR HYPOTHECATED UNLESS (A) THERE IS AN
EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT COVERING SUCH SECURITIES, (B) THE SALE IS MADE IN ACCORDANCE WITH RULE 144 UNDER
THE ACT OR (C) THE COMPANY RECEIVES AN OPINION OF COUNSEL FOR THE HOLDER OF THE SECURITIES REASONABLY SATISFACTORY TO THE COMPANY
STATING THAT SUCH SALE IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT.

 

4.23.6 The Sellers
are accredited investors as defined in Rule 501(a) of Regulation D promulgated under the Securities Act.

    	21

    	 

    

 

 

4.24Disclosure.
This Agreement, the Transaction Documents, and the Schedules hereto do not contain any untrue statement of a material fact and
do not omit to state a material fact necessary in order to make the statements contained therein or herein not misleading in light
of the circumstances under which they were made. There is no fact known to the Sellers relating to the Company or the Business
that could have a Material Adverse Effect that has not been disclosed in writing to the Buyer by the Company.

 

ARTICLE 5

 

REPRESENTATIONS AND WARRANTIES OF THE BUYER

 

The Buyer hereby represents
and warrants to the Sellers as follows:

 

5.1Organization
and Good Standing. The Buyer is a corporation duly organized, existing and in good standing under the Laws of the State
of Nevada. The Buyer has the requisite corporate power and authority to execute and deliver this Agreement and the other Transaction
Documents to be executed by it, to perform its obligations hereunder and thereunder and to consummate the transactions contemplated
hereby and thereby.

 

5.2Authorization.
The execution and delivery of this Agreement and the Transaction Documents, and the performance by the Buyer of its obligations
hereunder and thereunder, have been duly authorized by all necessary corporate action. This Agreement and the other Transaction
Documents to which the Buyer is a party constitutes the legal, valid and binding obligations of the Buyer enforceable against the
Buyer in accordance with their respective terms except with respect to Laws applicable to creditors’ rights and equitable
principles generally.

 

5.3No Conflict.
Neither the execution and delivery of this Agreement or any Transaction Document by the Buyer nor the performance by the Buyer
of this transactions contemplated hereby or thereby will, directly or indirectly:

 

(a)contravene, conflict
with, or result in (with or without notice or lapse of time) a violation or breach of (i) any provision of the Organizational Documents
of the Buyer, (ii) any resolution adopted by its governing body, or (iii) any Laws, Governmental Authorization or Contract to which
the Buyer may be subject; or

 

(b)give any Person or
Governmental Body the right (with or without notice or lapse of time) to declare a default or exercise any remedy under, or to
accelerate the maturity or performance of, or to cancel, terminate, modify, withdraw or suspend any Contract or Governmental Authorization
applicable to the Buyer.

 

5.4Broker and
Finders. Neither the Buyer nor its agents has incurred any obligation or liability, contingent or otherwise, for brokerage
or finders’ fees or agents’ commissions or other similar payment in connection with this Agreement or the Transactions
contemplated hereby.

    	22

    	 

    

 

 

ARTICLE 6

 

PRE-CLOSING COVENANTS

 

6.1Access and
Investigation. During the period from the date of this Agreement through the Closing Date (the “Pre-Closing Period”),
the Sellers shall cause the Company to (i) provide the Buyer and the Buyer’s Representatives with reasonable access to the
Company’s Representatives, personnel and assets and to all existing books, records, Tax Returns, work papers and other documents,
and with such additional financial, operating and other data and information regarding the Company, including the Company’s
officers responsible for the preparation of the financial statements, internal controls and disclosure controls and procedures
of the Company; and (ii) cause the Company’s officers to confer regularly with the Buyer concerning the status of the Business,
in each case as the Buyer may reasonably request with reasonable notice.

 

6.2Operation
of the Business; Certain Notices; Tax Returns. During the Pre-Closing Period, except as permitted by this Agreement, as
set forth in Schedule 6.2.1 or as consented to in writing by the Buyer: (i) the Company shall conduct the Business only
(A) in the Ordinary Course of Business and (B) in compliance in all material respects with all applicable Laws and the requirements
of all Contracts; (ii) the Company shall use all reasonable efforts to preserve intact the Company’s current business organization,
and maintain the Company’s relations and goodwill with all suppliers, customers, and other Persons having business relationships
with the Company that are material to the Business as presently conducted; (iii) the Company shall keep in full force all Insurance
Policies referred to in Section 4.14; and (iv) the Company shall promptly notify the Buyer of (A) any notice from any Person,
or other communication or information of which the Company has knowledge, alleging that the Consent of such Person is or may be
required in connection with the transactions contemplated by this Agreement or any Transaction Document, and (B) any Proceeding
commenced or threatened in writing against, relating to or involving or otherwise affecting the Company.

 

ARTICLE 7

 

CONDITIONS PRECEDENT TO CLOSING

 

7.1Conditions
to Obligations of the Buyer. The obligation of the Buyer to close the transactions contemplated by this Agreement is subject
to the satisfaction at or before the Closing of each of the following conditions:

 

7.1.1Each of the
representations and warranties of the Sellers, including, but not limited to those representations and warranties in Article 4
made by the Sellers pertaining to the Company and the Business, made in or pursuant to this Agreement shall be true and correct
on and as of the Closing Date, as if made on and as of the Closing Date (in each case except to the extent such representations
are by their express provisions made as of a specified date, in which case they shall be true and correct as of the specified date),
and the Buyer shall have received a certificate signed on behalf of the Sellers to such effect and such certificate shall be deemed
to be a representation and warranty of the Sellers as of the time immediately preceding the Closing.

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7.1.2The Sellers
shall have performed and complied with all covenants and conditions required under this Agreement to be performed or complied with
by the Sellers at or prior to the Closing, and the Buyer shall have received a certificate signed on behalf of the Sellers to such
effect.

 

7.1.3There shall
have been no event, occurrence or condition subsequent to the date of this Agreement that could be reasonably deemed to be a Material
Adverse Effect.

 

7.1.4The Sellers
shall have delivered all documents required to be delivered at the Closing pursuant to Section 8.2 hereof.

 

7.1.5No claim,
suit, action or other proceeding shall be pending or threatened before any court or Governmental Body seeking to restrain, prohibit
or obtain damages or other relief in connection with this Agreement or the consummation of the transactions contemplated hereby
and no investigation or inquiry shall have been made or commenced by any Governmental Body in connection with this Agreement or
such transactions.

 

7.1.6The Buyer
shall have obtained all Governmental Authorization required to operate the Business on terms and conditions satisfactory to the
Buyer.

 

7.1.7Subject to
the terms of this Agreement, all actions, proceedings, instruments, and documents reasonably required to carry out this Agreement
or incidental hereto, and all other related legal matters, shall have been reasonably approved as to form and substance by the
Buyer, and the Buyer shall have received all documents, certificates and other papers reasonably requested by it in connection
therewith.

 

7.1.8The Buyer
shall have secured and obtained all of the requisite financing and consents on terms and conditions satisfactory to the Buyer in
order to consummate all of the transactions contemplated hereby and operate the Business after the Closing in the same manner in
which it was operated before the Closing.

 

7.1.9The approval
by the Board of Directors of the Buyer of the consummation of the Closing.

 

7.1.10The Buyer’s
satisfaction with the results of its due diligence investigation of the Company’s business, condition (financial and otherwise),
operations, assets and prospects.

 

7.2Conditions
to Obligations of the Sellers. The obligation of the Sellers to close the transactions contemplated by this Agreement are
subject to the satisfaction at or before the Closing of each of the following conditions:

 

7.2.1Each of the
representations and warranties of the Buyer made in or pursuant to this Agreement shall be true and correct on and as of the Closing
Date, as if made on and as of the Closing Date, (in each case except to the extent such representations are by their express provisions
made as of a specified date, in which case they shall be true and correct as of the specified date), and the Sellers shall have
received a certificate signed on behalf of the Buyer to such effect and such certificate shall be deemed to be a representation
and warranty of the Buyer as of the time immediately preceding the Closing.

    	24

    	 

    

 

7.2.2The Buyer
shall have performed and complied with all covenants and conditions required of the Buyer under this Agreement to be performed
or complied with by it at or prior to the Closing, and the Sellers shall have received a certificate signed on behalf of the Buyer
to such effect.

 

7.2.3The Buyer
shall have delivered all documents required to be delivered by it at the Closing pursuant to Section 8.3 hereof.

 

7.2.4No claim,
suit, action or other proceeding shall be pending or threatened before any court or Governmental Body seeking to restrain, prohibit
or obtain damages or other relief in connection with this Agreement or the consummation of the transactions contemplated hereby
and no investigation or inquiry shall have been made or commenced by any Governmental Body in connection with this Agreement or
such transaction.

 

7.2.5Subject to
the terms of this Agreement, all actions, proceedings, instruments, and documents reasonably required to carry out this Agreement
or incidental hereto, and all other related legal matters, shall have been reasonably approved as to form and substance by the
Sellers, and the Sellers shall have received all documents, certificates and other papers reasonably requested by it in connection
therewith.

 

7.3Reasonable
Efforts. The Sellers shall use their commercially reasonable efforts, including reasonable cooperation with the other parties
hereto, to secure fulfillment of all of the conditions precedent to the Buyer’s obligations hereunder, and the Buyer shall
use commercially reasonable efforts, including reasonable cooperation with the other parties hereto, to secure fulfillment of all
of the conditions precedent to the Sellers’ obligations hereunder.

 

ARTICLE 8

 

CLOSING

 

8.1Closing.
The transactions that are the subject of this Agreement shall be consummated at a closing (the “Closing”) which
shall take place within thirty (30) days of the execution of this Agreement, subject to the right of the Buyer to adjourn the Closing
in thirty (30) day increments, not to exceed three (3) such extensions), or at such other time or date to which the parties may
agree in writing (the “Closing Date”). The Closing shall be effective as of 12:01 a.m., prevailing Eastern Daylight
Savings Time, on the date immediately following the Closing Date (the “Effective Time”). The Closing may be
accomplished by fax and overnight delivery of originals.

 

8.2Deliveries
by the Sellers. At the Closing, the Sellers shall deliver to the Buyer the following (or the same shall be waived in writing
by the Buyer), all of which shall be deemed to be delivered simultaneously:

 

8.2.1Transferred
Assets. Possession and control of the Company’s Business, all of the Transferred Assets, including all of Sellers’
Accounts Receivable, Inventory, Contracts, Personal Property, Real Property, Proprietary Rights, and all other assets, including
all applicable keys, access cards and other entry devices.

    	25

    	 

    

 

8.2.2Documents
of Transfer. Such bills of sale, assignments, deeds, endorsements, affidavits, and other instruments and documents of sale,
transfer, assignment and conveyance as Buyer may reasonably require, in order to lawfully and effectively sell, transfer, assign
and convey to Buyer all right, title and interest in and to all of the Transferred Assets, in each case in form acceptable to Buyer,
dated as of the Closing Date, and duly executed and, if necessary, acknowledged by the Company.

 

8.2.3Name
Change. A proper Amendment to the Company’s Certificate of Incorporation documents, dated the Closing Date and duly
executed by the applicable officers of the Company, in form acceptable for immediate filing with the appropriate office changing
the Company’s corporate name to a name that is not similar to the Company’s current corporate name or any product or
other name used by the Company and included in the Transferred Assets.

 

8.2.4Organizational
Documents. A certificate of the Secretary of the Company certifying (i) as to the incumbency and signatures of the officers
of the Company executing any documents being delivered to the Buyer in connection with the transactions contemplated hereby, and
(ii) that attached to such certificate are true and correct copies of (x) the articles of incorporation of the Company and all
amendments thereto as in effect on the Closing Date and certified by the Secretary of State of the State of New York, (y) the by-laws
of the Company as in effect on the Closing Date, and (z) the resolutions of the board of directors of the Company and the written
consent of the shareholders of the Company authorizing the execution and delivery of the Transaction Documents and the consummation
of the transactions contemplated thereby.

 

8.2.5Consulting
Agreement. The Consulting Agreement in the form of Exhibit 8.2.5 duly executed by the Company and Michael.

 

8.2.6Tax Clearance
Certificates. Clearance certificates or similar documents required by any applicable state taxing authority in order to
relieve the Buyer of any obligation to withhold any portion of the Purchase Price.

 

8.2.7FIRPTA
Certificate. A non-foreign affidavit by each Seller dated as of the Closing Date and in form and substance required under
the Treasury Regulations issued pursuant to Section 1445 of the IRC.

 

8.2.8Other
Documents. Such other agreements, certificates, instruments and documents as the Buyer may reasonably request in order
to fully consummate the transactions contemplated by this Agreement and carry out the purposes and intent of this Agreement.

 

8.3Deliveries
by Buyer. At the Closing, the Buyer shall deliver to the Sellers the following (or the same shall be waived in writing
by the Sellers), all of which shall be deemed to be delivered simultaneously:

 

8.3.1Purchase
Price. Payment of the cash portion of the Purchase Price due at Closing in accordance with Section 3.1 and the stock certificates
for the stock portion of the purchase price.

    	26

    	 

    

 

8.3.2Consulting
Agreement. The Consulting Agreement duly executed by the Buyer.

8.3.3Other
Documents. Such other agreements, certificates, instruments and documents as the Seller may reasonably request in order
to fully consummate the transactions contemplated by this Agreement and carry out the purposes and intent of this Agreement.

 

8.4Termination.

 

Notwithstanding any other
provision of this Agreement, this Agreement may be terminated by written notice at any time prior to Closing:

 

(i)by joint written
consent of the Buyer and the Sellers;

 

(ii)by the Buyer, if
the Sellers shall breach in any material respect any of their representations, warranties or obligations hereunder and, if such
breach is curable, such breach shall not have been cured by the Sellers or waived by the Buyer within ten (10) Business Days after
receipt of written notice of such breach from the Buyer; or

 

(iii)by the Sellers,
if the Buyer shall breach in any material respect any of its representations, warranties or obligations hereunder and, if such
breach is curable, such breach shall not have been cured by the Buyer or waived by the Sellers within ten (10) Business Days after
receipt of written notice of such breach from the Sellers.

 

In the event of termination under clause (i)
of this Section 8.4, the parties shall have no liabilities pursuant to this Agreement to the other party unless prior to
such termination either party was in breach of this Agreement in which case the nonbreaching party shall be entitled to pursue
all of its rights and remedies under Law or in equity (including, but not limited to, specific performance). Termination under
clause (ii) or (iii) of this Section 8.4 shall be in addition to all other rights and remedies of the nonbreaching party.

 

ARTICLE 9

 

COVENANTS AFTER CLOSING

 

9.1Transition
and Cooperation. From and after the Closing Date, (a) Sellers shall fully cooperate to transfer to Buyer the control and
enjoyment of the Company’s Business and the Transferred Assets including any Governmental Authorizations and vehicle registrations
and title as may be required; (b) the Sellers shall not take any action, directly or indirectly, alone or together with others,
which obstructs or impairs the smooth assumption by Buyer of the Company’s Business and Transferred Assets; and (c) Sellers
shall promptly deliver to Buyer all correspondence, papers, documents and other items and materials received by any of them or
found to be in their possession which pertain to the Company’s Business or the Transferred Assets (other than the Excluded
Assets).

    	27

    	 

    

 

 

9.2Use of Names.
Beginning immediately after the Closing Date, the Company shall cease all use of all corporate names, fictitious names, product
names and other names used by Company at any time on or before the Closing Date and included in the Transferred Assets, except
as may be necessary to perform their obligations hereunder. Upon Buyer’s request, the Company shall promptly sign all Consents
and other documents that may be necessary to allow Buyer to use or appropriate the use of any name used by the Company at any time
on or before the Closing Date.

 

9.3Transfer
of Domain Names. Within five (5) days following the Closing Date, the Company will initiate steps through the official
registrar for each Domain Name (the “Registrar”), to transfer ownership of the Domain Name from the Company
to Buyer as the sole owner and registrant for the Domain Name. To the extent that Registrar requires any forms to be executed or
actions to be taken by the Company as part of the process of transferring ownership of each Domain Name, upon receipt of such request,
and in no event more than 72 hours following delivery of the request, the Company shall promptly execute, or have executed, any
additional forms, approvals, documents, or authorizations, electronics or otherwise, and provide any and all information, required
by Registrar, to fully and completely effectuate the transfer of the Domain Name to Buyer.

 

9.4Further Assurances.
At any time and from time to time after the Closing Date, and without further consideration, Buyer and the Company shall promptly
execute and deliver all such further agreements, certificates, instruments and documents, and perform such further actions, as
the other party or parties may reasonably request in order to fully consummate the transactions contemplated hereby and carry out
the purposes and intent of this Agreement. Without limiting the generality of the foregoing, the Company shall timely file all
Tax returns and reports required to be filed with respect to the assets, business and operations of the Company for all periods
ending on or before the Closing Date and provide Buyer with copies thereof promptly after filing. The Company is liable for all
Taxes that are attributable to any period through the Closing Date and Sellers shall indemnify and hold Buyer harmless from any
claims with respect to such Taxes.

 

9.5Post-Closing
Access to Records. Following the Closing, Buyer agrees to permit representatives of Sellers to have access, at reasonable
times and in a manner so as not to interfere with the normal business operations of Buyer, free of charge, to the books and records
of Buyer, including all electronic records and materials and computer software necessary to access such books and records (including
all books and records acquired from Sellers hereunder) relating to the Transferred Assets or the conduct of Company’s Business
prior to the Closing Date so as to enable the Company to the extent necessary to prepare tax, financial or court filings or reports,
to respond to court orders, subpoenas or inquiries, investigations, audits or other proceedings of Governmental Bodies, to prosecute
or defend legal actions or for other like proper purposes including to comply with any applicable Laws and the Company and its
Representatives shall have the right to make copies of such books and records. Buyer agrees to maintain and preserve such records
in its possession for a period of at least seven (7) years from the Closing Date or such longer time as may be required by Law;
provided that if Buyer desires to dispose of any such business records prior to the expiration of such seven (7) year period, it
shall, prior to such disposition, give the Company a reasonable opportunity, at the Company’s expense, to remove such of
the records to be disposed of as the Company may select.

    	28

    	 

    

 

 

9.6Tax
Matters. The Company shall be responsible for all Taxes imposed on the

Company for all business activities through
and including the Effective Time (the “Pre-Closing Taxes”). The Company shall be required to pay any Pre-Closing
Taxes. The Company shall pay all documentary, stamp, sales, transfer, excise or similar Taxes, if any, imposed on the Sellers and/or
the Company arising, directly or indirectly, from the transactions contemplated by this Agreement and the Transaction Documents
and shall indemnify the Buyer for all Taxes imposed on the Company arising, directly or indirectly, from the transactions contemplated
by this Agreement and the Transaction Documents.

 

9.7Power
of Attorney. Effective upon the Closing Date, the Company hereby

irrevocably constitutes and appoints the Buyer,
the true and lawful attorney of the Company with full power of substitution, in the name of the Buyer, or the name of the Company,
on behalf of and for the benefit of the Buyer and/or its designee, to collect Accounts Receivable and other items being transferred,
conveyed and assigned to Buyer and/or its designee as provided herein, to endorse without recourse, checks, notes and other instruments
in the name of the Company, to institute and prosecute, in the name of the Company or otherwise, all proceedings which the Buyer
and/or its designee may deem proper in order to collect, assert or enforce any claim, right or title of any kind in or to the Transferred
Assets, to defend and compromise any and all actions, suits or proceedings in respect of any of the Transferred Assets (provided,
that, with respect to any such settlement or compromise of claims for which the Sellers have an indemnification under this Agreement,
Buyer shall obtain the prior written consent of the Company, which consent shall not be unreasonably withheld or delayed), and
to do all such acts and things in relation thereto as Buyer and/or its designee may reasonably deem advisable to recover and collect
the Transferred Assets. The Company agrees that the foregoing powers are coupled with an interest and shall be irrevocable by the
Company notwithstanding the dissolution of the Company. The Company further agrees that the Buyer shall retain for its own account
any amounts collected pursuant to the foregoing powers, and the Company shall promptly transfer and deliver to the Buyer any cash
or other property received by the Company after the Closing Date in respect of any Accounts Receivable or otherwise relating to
the Transferred Assets or the Company’s Business except for the Excluded Assets.

 

ARTICLE 10

 

INDEMNIFICATION

 

10.1Indemnification
by the Sellers. From and after the Closing, the Sellers agree to jointly and severally indemnify, defend and save the Buyer
and its Affiliates, and each of their respective officers, directors, managers, employees, equity holders and Representatives,
(each, a “Buyer Indemnified Party”), harmless from and against, and to promptly pay to each Buyer Indemnified
Party or reimburse each Buyer Indemnified Party for, any and all liabilities (whether contingent, fixed or unfixed, liquidated
or unliquidated, or otherwise), obligations, deficiencies, demands, claims, suits, actions, causes of action, assessments, losses,
costs, expenses, interests, fines, penalties or costs or expense of any and all investigations, Proceedings judgment, settlements
and compromises (including reasonable fees and expenses of attorney, accountants and other experts) ( individually and collectively,
“Losses”) sustained or incurred by any such Buyer Indemnified Party relating to, resulting from, or otherwise
arising out of any of the following:

    	29

    	 

    

 

(i)any breach
or inaccuracy of a representation or warranty made in

this Agreement or in any of the Transaction
Documents by the Sellers;

 

(ii)any non-compliance
with or breach by the Sellers of any of the

covenants or agreements contained in this Agreement
or any of the Transaction Documents to be performed by the Sellers;

 

(iii)the ownership,
operation or conduct of the Business prior to the

Effective Time;

 

(iv)any liabilities
or obligations with respect to the products designed,

manufactured, marketed, distributed or sold
by, and all services provided by, the Company prior to the Effective Time, regardless of when such claim is made, including any
warranty claims with respect thereto;

 

(v)any bodily injury
incurred by any employee of the Company or any other Person due to any accidents and any bodily injury of any employee of the Company
by disease or condition prior to the Effective Time, regardless of when such claim is made;

 

(vi)any claim for payment
of fees and/or expenses as a broker or finder

in connection with the origin, negotiation,
execution or consummation of the transactions contemplated by this Agreement and the Transaction Documents based upon an alleged
agreement between claimant and the Sellers or any of their Affiliates, including, but not limited to, any agreements or arrangements
with the Seller’ Investment Banker;

 

(vii)any failure
by the Sellers to comply with any bulk sales or similar

Laws applicable to the transactions contemplated
hereby; and

 

(viii)any
liabilities for Taxes imposed upon, or incurred by the Company

at any time or with respect to the Business
with respect to any period (or portion thereof) ending before the Effective Time, including, but not limited to, withholding, and
state income, sales and use Taxes imposed with respect to any transaction contemplated by this Agreement.

 

10.2Indemnification
by the Buyer. From and after the Closing, the Buyer agrees to indemnify, defend and save the Sellers and their Affiliates,
officers, directors, employees, Representatives, equity holders, and fiduciaries (each, a “Seller Indemnified Party”)
harmless from and against, and to promptly pay to each Seller Indemnified Party or reimburse each Seller Indemnified Party for,
any and all Losses sustained or incurred by such Seller Indemnified Party relating to, resulting from, or otherwise arising out
of, any of the following:

 

(i)any breach
or inaccuracy of a representation or warranty made

herein or in any of the Transaction Documents
by the Buyer;

 

(ii)any non-compliance
with or breach by the Buyer of any of the

covenants or agreements contained in this Agreement
or any of the Transaction Documents to be performed by the Buyer;

    	30

    	 

    

 

(iii)any claim
for payment of fees and/or expenses as a broker or finder

in connection with the origin, negotiation,
execution or consummation of the transactions contemplated by this Agreement and the Transaction documents based upon any alleged
agreement between the claimant and the Buyer or any of its Affiliates; and

 

(iv)the Assumed
Liabilities.

 

10.3Indemnification
Procedure for Third Party Claims.

 

10.3.1In the event
that subsequent to the Closing any Person entitled to indemnification under this Agreement (an “Indemnified Party”)
receives notice of the assertion of any claim or of the commencement of any action or Proceeding by any Person who is not a party
to this Agreement or an Affiliate of a party to this Agreement (including, but not limited to, any domestic or foreign court or
Governmental Body) (a “Third Party Claim”) against such Indemnified Party, against which a party to this Agreement
is required to provide indemnification under this Agreement (an “Indemnifying Party”), the Indemnified Party
shall give written notice of such claim (and attaching a copy of all papers served with respect to such claim) to the Indemnifying
Party (the “Claim Notice”). The Indemnifying Party shall have the right, upon written notice to the Indemnified
Party (the “Defense Notice”) within thirty (30) days after receipt from the Indemnified Party of the Claim Notice,
which Defense Notice shall specify the counsel the Indemnifying Party will appoint to defend such claim (“Defense Counsel”),
to conduct at its expense the defense against such claim in its own name, or, if necessary, in the name of the Indemnified Party;
provided, however, that the Indemnified Party shall have the right to approve the Defense Counsel, and in the event
the Indemnifying Party and the Indemnified Party cannot agree upon such counsel within ten (10) days after the Defense Notice is
provided, then the Indemnify Party shall propose an alternate Defense Counsel, which shall be subject again to the Indemnified
Party’s approval. If the Indemnifying Party delivers a Defense Notice, the delivery of such Defense Notice shall constitute
acceptance of responsibility for such claim or action and the Indemnifying Party shall be fully responsible for all liabilities
for such claim or action and all liabilities arising out of or relating to such claim or action including, but not limited to,
the costs of the defense thereof. Notwithstanding the foregoing, the Indemnifying Party shall not be entitled to control, and the
Indemnified Party shall be entitled to have sole control over, the defense or settlement of any claim to the extent that such claim
relates to Taxes. In addition, the Indemnifying Party shall not be entitled to assume control of a Third Party Claim and shall
pay the reasonable fees and expenses of counsel retained by the Indemnified Party if the Third Party Claim seeks injunctive or
other equitable relief or if the Indemnified Party determines, based upon the advice of counsel, that the Indemnified Party’s
interests in the Third Party Claim is or can reasonably be expected to be adverse to the interests of the Indemnifying Party.

 

10.3.2In
the event that the Indemnifying Party shall fail to give the Defense

Notice within the time period described above,
it shall be deemed to have elected not to conduct the defense of the subject claim, and in such event the Indemnified Party shall
have the right to conduct such defense in good faith and to compromise and settle the claim and such Indemnifying Party will be
liable for all costs, expenses, settlement amounts or other Losses actually paid or incurred in connection therewith. If the Indemnifying
Party is not entitled to assume the defense of a Third Party Claim because of reasons set forth in the last sentence of the preceding
paragraph, the Indemnified Party may not settle the Third Party Claim without the written consent of the Indemnifying Party, which
consent shall not be unreasonably withheld or delayed, if such settlement would lead to any liability or create any other obligation
of the Indemnifying Party.

    	31

    	 

    

 

10.3.3In the event
that the Indemnifying Party does deliver a Defense Notice within the time period described above and thereby elects to conduct
the defense of the subject claim, the Indemnifying Party shall diligently conduct such defense and the Indemnified Party will cooperate
with and make available to the Indemnifying Party such assistance and materials as it may reasonably request, all at the expense
of the Indemnifying Party, and the Indemnified Party shall have the right at its expense to participate in the defense assisted
by counsel of its own choosing.

 

10.3.4The Indemnifying
Party may either enter into a settlement of any Third Party Claim; provided, however, the Indemnifying Party may
not enter into any settlement or any Third Party Claim without the prior written consent of the Indemnified Party if pursuant to
or as a result of such settlement, (A) injunctive or other equitable relief would be imposed against the Indemnified Party, or
(B) such settlement could reasonably be expected to lead to any liability, create any financial or other obligation on the part
of the Indemnified Party or adversely affect the operation of the Business.

 

10.4Direct
Claims. It is the intent of the parties hereto that all direct claims by an Indemnified Party against a party hereto (or
an Affiliate thereof) not arising out of Third Party Claims shall be subject to and benefit from the terms of this Section 10.4.
Any claim under this Section 10.4 by an Indemnified Party for indemnification other than indemnification against a Third
Party Claim (a “Direct Claim”) will be asserted by giving the Indemnifying Party written notice thereof, and
the Indemnifying Party will have a period of thirty (30) calendar days within which to satisfy such Direct Claims, except for injunctive
or equitable relief, which the Indemnified Party may pursue at any time. The Indemnifying Party shall only be deemed to reject
such claim if it sends notice thereof to the Indemnified Party within such thirty (30) calendar day period, in which event the
Indemnified Party will be free to pursue such remedies as may be available to the Indemnified Party under this Section 10.4
or otherwise. If the Indemnifying Party does not so respond within such thirty (30) calendar day period, the Indemnifying Party
will be deemed to have accepted such claim, in which event the Indemnifying Party shall make payment to the Indemnified Party therefor
pursuant to Section 10.8.

 

10.5Failure
to Give Timely Notice. A failure by an Indemnified Party to give timely, complete or accurate notice as provided in Section
10.4 will not affect the rights or obligations of any party hereunder except and only to the extent that, as a result of such
failure, any party entitled to receive such notice was damaged as a direct result of such failure to give timely notice.

 

10.6Survival
of Representations and Warranties. Survival of Representations and Warranties. All of the representations
and warranties set forth in this Agreement or in any of the other Transaction Documents shall survive the execution and delivery
of this Agreement and the consummation of the transactions until they expire and terminate on the fifth (5th) anniversary
of the Closing Date except that (i) the representations and warranties contained in Section 4.2 (Authorization), and representations
and warranties that are frequently or wilfully breached contained herein shall survive indefinitely and (ii) the representations
and warranties contained in Section 4.17 (Taxes) and Section 4.19 (Environmental and Safety Requirements) shall survive
until sixty (60) days following the expiration of the applicable statute of limitations period or any extensions or waivers thereof.
It is agreed that in the event notice of any claim for indemnification under this Agreement with respect to any inaccuracy or a
breach of representation or warranty or with respect to any other matter shall have been given within the applicable survival period,
the claims and rights to indemnification relating to such inaccuracies or breaches of representations and warranties or other matters
that are the subject of such indemnification claim shall survive until such time as such claim is finally resolved.

    	32

    	 

    

 

10.8Payments.

 

10.8.1 Within
five (5) business days after the resolution of any indemnification claim by any Seller Indemnified Party hereunder pursuant to
which such Indemnified Party is entitled to any payment, such payment shall be made by Buyer.

 

10.8.2 Within five
(5) business days after resolution of any indemnification claim by any Buyer Indemnified Party hereunder to which such Indemnified
Party is entitled to payment, such payment shall be made by the Sellers.

 

10.8.3The Indemnifying
Party shall reimburse the Indemnified Party for any and all costs or expenses of any nature or kind whatsoever (including, but
not limited to all attorney’s fees) incurred in seeking to collect any payments under this Section 10.8.

 

10.8.4Any payment
required under this Section 10.8 that is not made when due shall bear interest until paid in full at the prime rate of interest
as published in The Wall Street Journal (changing as and when such rate changes) plus four percent (4%) or, if less, the
maximum rate permitted by applicable usury Laws. Interest on any such unpaid amount shall be compounded monthly, computed on the
basis of a 360-day year and shall be payable on demand.

 

10.8.5 If payment
shall not be made by the Sellers in the manner required by this Section 10.8, the Buyer shall have the right to (x) offset
same against any Net Royalty due to the Company and/or (y) cause the cancellation of that number of shares of Buyer Stock equal
to the amount of the payment due (based upon the then fair market value of the Buyer Stock).

 

 

ARTICLE 11

 

RESTRICTIVE COVENANTS

 

11.1Acknowledgment.
As an inducement to the Buyer to enter into this Agreement, the Transaction Documents and consummate the transactions contemplated
hereby and thereby, the Sellers, whether directly or indirectly, personally or as an employee, consultant, associate, partner,
member, manager, agent, owner, or an investor, agree and acknowledge that it is necessary that they undertake not to utilize their
special knowledge of the Business and their relationships with customers and suppliers to compete with the Buyer.

 

11.2Non-Compete.
Each Seller hereby agrees that for a period commencing on the Closing Date and ending five (5) years from the Closing Date, or
in the case of Michael, the later of five (5) years from the Closing Date or three (3) years from the termination of his consulltancy
with the Buyer (said five (5) year period from the Closing Date or three (3) year period from such termination of consultancy is
herein referred to as the “Restricted Period”), except on behalf of the Buyer, he will not, directly or indirectly,
as agent, employee, consultant, representative, stockholder, manager, member, partner or in any other capacity, own (other than
through the passive ownership of less than one percent (1%) of the publicly traded shares of any Person), operate, manage, control,
engage in, invest in (other than through the passive ownership of less than one percent (1%) of the publicly traded shares of any
Person) or participate in any manner in, act as a consultant or advisor to, render services for (alone or in association with any
Person), or otherwise assist any Person that engages in or owns, invests in, operates, manages or controls any venture or enterprise
that directly or indirectly engages or proposes to engage in any business competitive in any material respect with any portion
of the business then being conducted by the Buyer anywhere in the world (the “Territory”).

    	33

    	 

    

 

11.3Non-Solicitation.
Without limiting the generality of the provisions of Section 11.2., except on behalf of the Buyer, each Seller hereby agrees
that during the Restricted Period, he will not, directly or indirectly, solicit, or participate as agent, employee, consultant,
representative, stockholder, manager, partner or in any other capacity in any business which solicits business from any Person
which is or was a customer or supplier of the Business at any time during the three (3)-year period preceding the date of such
solicitation, or from any successor in interest to any such Person for the purpose of securing business or Contracts related to
any portion of the Buyer’s business.

 

11.4Confidential
Information. During the term of this Agreement and thereafter, each Seller shall keep secret and retain in strictest confidence,
and shall not, without the prior written consent of the Buyer, furnish, make available or disclose to any third party or use for
the benefit of such Seller or any third party, any Confidential Information. As used in this Section 11.4, “Confidential
Information” shall mean any information relating to this Agreement and the transactions contemplated hereby, the business
or affairs of the Buyer or the Business, and information relating to financial statements, customer identities, potential customers,
employees, suppliers, servicing methods, equipment, programs, strategies and information, analyses, profit margins or other proprietary
information used by the Company or the Buyer in connection with the business being conducted by the Buyer; provided, however,
that Confidential Information shall not include any information which is in the public domain or becomes generally known through
no wrongful act on the part of any Seller.

 

11.5 Interference
with Relationships.

 

11.5.1 During the
Restricted Period, each Seller shall not, directly or indirectly, as agent, employee, consultant, distributor, representative,
stockholder, manager, member, partner or in any other capacity, request, directly or indirectly, that any suppliers, customers
or clients of the Buyer, or other Persons sharing a business relationship with the Buyer curtail or cancel their business with
the Buyer, or in any other way interfere with any such business relationships with the Buyer, or otherwise take action which might
be to the material disadvantage of the Buyer.

 

11.5.2 During the
Restricted Period, each Seller shall not, without the prior written consent of the Buyer, directly or indirectly, as agent, employee,
consultant, distributor, representative, stockholder, manager, member, partner or in any other capacity, employ or engage, or recruit
or solicit for employment or engagement, any person (i) who is employed or engaged by the Company or the Buyer or any of its Affiliates
(both before and after the Closing Date), (ii) who was employed or engaged by the Buyer within six (6) months of such contact,
or (iii) who was employed by the Company or engaged in the Business during the six (6) month period prior to the Closing Date,
or otherwise seek to influence or alter any such person’s relationship with the Company or the Buyer.

 

11.6Blue-Pencil.
If any court of competent jurisdiction shall at any time deem the term or any particular restrictive covenant contained in this
Article 11 too lengthy or the Territory too extensive, the other provisions of this Article 11 shall nevertheless
stand, and the Restricted Period and/or the Territory shall be reduced to such duration or size as such court shall determine to
be permissible.

11.7Remedies.
Each Seller acknowledges and agrees that the covenants set forth in this Article 11 are reasonable and necessary for the
protection of the Buyer’s business interests, that irreparable injury will result to the Buyer if any Seller breaches any
of the terms of this Article 11 and that in the event of any actual or Threatened breach by any Seller of any of the provisions
contained in this Article 11, the Buyer will have no adequate remedy at Law. Each Seller accordingly agrees that in the
event of any actual or Threatened breach by him of any of the provisions contained in this Article 11, the Buyer shall be
entitled to injunctive and other equitable relief, without the necessity of showing actual monetary damages and without posting
any bond or other security. Nothing contained herein shall be construed as prohibiting the Buyer from pursuing any other remedies
available to it for such breach or Threatened breach, including the recovery of any damages.

 

    	34

    	 

    

ARTICLE 12

 

MISCELLANEOUS

 

12.1Notices, Consents, etc.
Any notices, consents or other communications required to be sent or given hereunder by any of the parties shall in every case
be in writing and shall be deemed property served if (a) delivered personally, (b) mailed by first class certified mail, return
receipt requested, postage prepaid or (b) delivered by a recognized overnight courier service, to the parties at the addresses
as set forth below or at such other addresses as may be furnished in writing.

 

(a)If to the Buyer:

 

XZERES WIND CORP.

9025 SW Hillman Court

Building 31 Suite #3126

Wilsonville, Oregon 97070

 

With a copy to (which shall not constitute notice):

 

Paul M. Petigrow, Esq.

Lampf, Lipkind, Prupis & Petigrow

80 Main Street, Suite 350

West Orange, New Jersey 07052

 

(b)If to the Sellers:

 

35 Mooring Line Drive

Rochester, New York 14622

 

With a copy to (which shall not constitute notice):

 

John I. Menard, Esq.

Van Loon Menard, Attorneys at Law

1 South Washington Street, Suite 410

Rochester, New York 14614

    	35

    	 

    

 

Date of Service of such notice shall be (x) the date such notice
is personally delivered, (y) three Business Days after date of mailing if sent by certified mail, or (y) one (1) Business Day after
the date of delivery to the overnight courier if sent by overnight courier.

 

12.2Public Announcements.
Without the prior written consent of the Buyer, prior to the Closing, the Company shall not make, nor shall it permit its Affiliate
to make, any public announcement or filing with respect to the transactions provided for herein.

 

12.3Severability. If any provision
hereof shall be invalid, illegal or unenforceable in any respect or in any jurisdiction, and if the extent of such invalidity,
illegality or unenforceability does not destroy the basis of this agreement, such provision shall be severable and the invalidity,
illegality or unenforceability thereof shall in no event affect, prejudice or disturb the validity of the remainder of this Agreement,
and the remaining provisions hereof shall remain in full force and effect and shall be enforceable to the maximum extent permitted
by Law unless not invalidating or rendering unenforceable the remaining provisions shall be inequitable. 

 

12.4Waivers. Except
as otherwise expressly provided herein, no waiver with respect

to this Agreement shall be enforceable unless in writing and signed
by the party against whom enforcement is sought. Except as expressly provided herein, no failure to exercise, delay in exercising,
or single or partial exercise of any right, power or remedy by any party, and no course of dealing between or among any of the
parties, shall constitute a waiver of, or shall preclude any other or further exercise of, any right, power or remedy. The waiver
by any party hereto of a breach of any provision of this Agreement shall not operated or be construed as a waiver of any other
breach.

 

12.5Counterparts. This Agreement
may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute
one and the same agreement and shall become effective when one or more counterparts have been signed by each of the parties hereto
and delivered to the others.

 

12.6Deliveries. This Agreement,
the Transaction Documents and each other agreement or instrument entered into in connection herewith or therewith or contemplated
hereby or thereby, and any amendments hereto or thereto, to the extent signed and delivered by means of a facsimile machine or
other electronic transmission (including transmission in portable document format by electronic mail), shall be treated in all
manner and respects and for all purposes as an original agreement or instrument and shall be considered to have the same binding
legal effect as if it were the original signed version thereof delivered in person. At the request of any party hereto or to any
such other agreement or instrument, each other party hereto or thereto shall re-execute original forms thereof and deliver them
to all parties, except that the failure of any party to comply with such a request shall not render this Agreement, the Transaction
Documents and each other agreement or instrument entered into in connection herewith or therewith or contemplated hereby or thereby
invalid or unenforceable. No party hereto or to any such other agreement or instrument shall raise the use of a facsimile machine
or other electronic transmission to deliver a signature, or the fact that any signature was transmitted or communicated through
the use of a facsimile machine or other electronic transmission, as a defense to the formation or enforceability of a contract
and each such party forever waives any such defense.

    	36

    	 

    

 

12.7Expenses. Each of the
parties shall pay all costs and expenses incurred or to be incurred by it in negotiating and preparing this Agreement and in closing
and carrying out the transactions contemplated by this Agreement; provided, however, that any sales or transfer taxes
and all fees and charges and any Governmental Body relating to the sale and transfer of the Transferred Assets shall be borne solely
by the Company.

 

12.8Headings. The subject
headings of Articles and Sections of this Agreement are included for purposes and convenience of reference only and shall not affect
the construction or interpretation of any of its provisions.

 

12.9Governing Law, Dispute Resolution.

 

12.9.1This Agreement and the rights
and obligations of the parties hereunder shall be governed in all respects, including validity, interpretation and effect, by the
Law of the State of Nevada, without regard to its rules of conflicts of law.

 

12.9.2 Each of the parties hereto irrevocably
consents to the exclusive jurisdiction of the state and federal courts located in the State of Nevada in
any and all actions, suits or proceedings between or among any of the parties hereto, whether arising hereunder or otherwise, and
irrevocably waives to the fullest extent permitted by Law any objection which such party may now or hereafter have to the laying
of the venue of any such action, suit or proceeding brought in such court and any claim that any such action, suit or proceeding
brought in such court has been brought in an inconvenient forum; provided, however, that the Company shall have right to
enforce the provisions of Article 11 hereof (Restrictive Covenants) in any court of competent jurisdiction in any state.

 

12.9.3 Each of the parties hereto irrevocably
consents to service of process by first class certified mail, return receipt requested, postage prepaid, or by delivery by a nationally
recognized express courier service, with delivery charges prepaid, in each case to the address at which such party is to
receive notice in accordance with Section 12.1 hereof. Each of the parties hereto hereby irrevocably waives, to the fullest
extent permitted by applicable Law, all claims of error by reason of any such service pursuant to the terms hereof (but does not
waive any right to assert lack of subject matter jurisdiction) and agrees that such service (a) shall be deemed in every respect
effective service of process in any such suit, action or proceeding and (b) shall, to the fullest extent permitted by applicable
Law, be taken and held to be valid personal service. Nothing contained herein shall affect the right of any party hereto to serve
process in any manner permitted by Law.

 

12.9.4In the event any
party hereto is required to engage the services of legal

counsel in connection with an action to enforce or interpret the
terms and conditions of this Agreement against the other party or parties, the prevailing party shall be entitled to recover its
reasonable attorneys’ fees, costs and experts and accountants, and other related costs, from the non-prevailing party, including
any fees or costs incurred at trial or in any appellate proceeding.

 

12.10Assignment. This Agreement
will be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns, but
will not be assignable or delegable by any party without the prior written consent of the other parties, provided, however,
that the Buyer shall be allowed to assign its rights and benefits hereto to a third party so long as the assignee assumes the Buyer’s
obligations hereunder.

    	37

    	 

    

 

12.11Entire Agreement. This
Agreement, the Preamble, the Recitals and all of the Schedules and Exhibits attached to this Agreement (all of which shall be deemed
incorporated in the Agreement and made a part hereof) and the other Transaction Documents set forth the entire understanding of
the parties, and supersede and preempt all prior oral or written understandings and agreements with respect to the subject matter
hereof (including, but not limited to, any term sheet and/or letter of intent), and shall not be modified or affected by any offer,
proposal, statement or representation, oral or written, made by or for any party in connection with the negotiation of the terms
hereof, and may be modified only by instruments signed by all of the parties hereto.

 

12.12Third Parties. Nothing
herein expressed or implied is intended or shall be construed to confer upon or give to any Person, other than the parties to this
Agreement and their respective permitted successors and assigns, any rights or remedies under or by reason of this Agreement.

 

12.13Interpretation of Representations.
Each representation and warranty made in

this Agreement or pursuant hereto is independent of all other representations
and warranties made by the same parties, whether or not covering related or similar matters, and must be independently and separately
satisfied. Exceptions or qualifications to any such representation or warranty shall not be construed as exceptions or qualifications
to any other representation or warranty.

 

12.14Reliance By Buyer.
Notwithstanding the right of Buyer to investigate the

Business, assets and financial condition of the Company, and notwithstanding
any knowledge obtained or obtainable by Buyer as a result of such investigation, Buyer has the unqualified right to rely upon,
and has relied upon, each of the representations and warranties made by Sellers in this Agreement or pursuant hereto.

 

12.15Interpretative Matters.
Unless the context otherwise requires, (a) all references to Articles, Sections or Schedules are to Articles, Sections or Schedules
in this Agreement, (b) each accounting term not otherwise defined in this Agreement has the meaning assigned to it in accordance
with GAAP, (c) words in the singular or plural include the singular and plural, pronouns stated in either the masculine, the feminine
or neuter gender shall include the masculine, feminine and neuter, (d) the terms “include,” “includes,”
and “including” shall mean by way of example and not by way of limitation, (e) “or” is not exclusive, (f)
the phrases “arising out of” or “arises out of” mean arising out of, in connection with or otherwise relating
to (notwithstanding that in some cases all of such words may be used and in most cases they are not); (g) a reference in a document
to an article, section, exhibit or schedule is to the article, section, exhibit or schedule of such document unless otherwise indicated,
(h) references to any document shall include all exhibits, schedules and other attachments thereto, and (i) the words “hereof,”
“herein,” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement
as a whole and not to any particular provision of this Agreement. The parties hereto have participated jointly in the negotiation
and drafting of this Agreement. If an ambiguity or questions of intent or interpretation arises, this Agreement shall be construed
as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring any party by virtue of the authorship
of any of the provisions of this Agreement.

    	38

    	 

    

 

12.16Further Assurances. The
Buyer and the Sellers shall from time to time after the Closing, at any other party’s reasonable request, execute and deliver
or cause to be executed and delivered such instruments of transfer, conveyance and assignment (in addition to those delivered at
the Closing), and take or cause to be taken such other action, as such any party may reasonably require, to effect, consummate,
confirm, or evidence the transactions contemplated hereby. The Sellers and the Buyer will also do such acts as are necessary to
perform their covenants and agreements herein.

 

IN WITNESS WHEREOF, the parties have
executed this Asset Acquisition Agreement as of the date first written above.

 

THE SELLERS:

 

ROCHESTER POWER SAVER, INC.

 

By: /s/Michael Dana

 Michael Dana, President

 

 /s/Michael Dana

MICHAEL DANA, individually

 

 

 /s/Lisette Dana

LISETTE DANA, individually

 

 

THE BUYER:

 

XZERES WIND CORP.

 

 

By: /s/David N. Baker

 David N. Baker, Chairman of the Board

    	39<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>CONSULTING AGREEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>THIS CONSULTING
AGREEMENT</B> is made this 20th day of April, 2011, by and between <B>XZERES WIND CORP.</B>, a Nevada corporation (the
&quot;<U>Company</U>&quot;) having its principal place of business at 9025 SW Hillman Court, Building 31 Suite
#3126,Wilsonville, Oregon 97070 and<B> ROCHESTER POWER SAVER, INC., </B>a New York corporation<B> </B>(the
&quot;<U>Consultant</U>&quot;) and <B>MICHAEL DANA</B> (the &ldquo;<U>Principal</U>&rdquo;), each having an address at 35
Mooring Line Drive, Rochester, New York 14622.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>RECITALS:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>WHEREAS </B>the Company
has acquired substantially all of the assets of the Consultant pursuant to the terms of an Asset Acquisition Agreement (the &ldquo;<U>Asset
Acquisition Agreement</U>&rdquo;) by and among, the Consultant, the Principal and Lisette Dana, as sellers, and the Company, as
purchaser; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>WHEREAS</B> the Principal
is the principal shareholder of the Consultant; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>WHEREAS </B>in connection
with the aforementioned acquisition, the Consultant has agreed to provide consulting services to the Company on the terms and conditions
set forth herein; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>NOW, THEREFORE</B>,
in consideration of the premises and mutual covenants herein contained, the parties hereto, intending to be legally bound hereby,
do hereby agree as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">a)&#9;<U>Engagement</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">The Company hereby retains
the Consultant as a consultant to provide consulting services with respect to (a) the manufacture of the products heretofore manufactured
by the Consultant and sold to the Company pursuant to the terms of the Asset Acquisition Agreement, (b) the sales of said products
to customers, and (c) product development for all current and future products of the Company; and the Consultant hereby accepts
such retention upon the terms and conditions hereinafter set forth. The Consultant agrees that its services hereunder shall be
provided by the Principal and that the Principal shall devote substantially all of his business time, skill, labor and attention
to the services required of the Consultant under this Agreement and shall perform such services in a manner consonant with the
duties of such position.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">b) &#9;<U>Term</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">The term of this Agreement
shall commence on the date hereof (the &ldquo;<U>Commencement Date</U>&rdquo;) and shall terminate on the third (3<SUP>rd</SUP>
) anniversary thereof, unless sooner terminated pursuant to the provisions of Article 5 of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">c)&#9;<U>Certain Responsibilities
of Consultant and Principal</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">i) <U>Rules, etc.</U> The
Consultant agrees that it will comply with all laws, rules, regulations and special instructions applicable to it in the performance
of its duties (including without limitation legal and proper rules established and special instructions given to the Consultant
by the Company).</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">ii) <U>Relevant Information</U>.
The Consultant and Principal each agree that it or he will make available to the Company any and all material information of which
it or he has knowledge that is relevant to the business of the Company (the &ldquo;<U>Business</U>&rdquo;), which includes, but
may not be limited to the providing of energy, electricity, renewable energy and clean energy and will make all suggestions and
recommendations which it or he feels will be of benefit to the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">iii) <U>Other Business Opportunities</U>.
The Consultant and Principal shall make all business opportunities with which it becomes familiar pertaining to the Business available
to the Company and will not make available any such business opportunities to any other person or entity nor to itself or himself
individually.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">iv) <U>Ownership rights</U>.
The Consultant and Principal agree that any intellectual property and other property rights in any work product, discoveries, or
inventions, related to the business of the Company including but not limited to anything related to energy, electricity, renewable
energy or clean energy, developed by the Consultant and/or the Principal during the term of this Agreement (collectively, the &ldquo;<U>IP</U>&rdquo;)
including, without limitation, all patents, copyrights, trademarks, service marks and other intellectual property rights related
thereto, shall be deemed to be owned exclusively by the Company. The Consultant and Principal further acknowledge that all IP which
are developed by it (solely or jointly with others) during the term of the consultancy are &ldquo;works for hire&rdquo; (to the
greatest extent permitted by applicable law) but that, in the event that same are not deemed to be worked for hire, the Consultant
and Principal each hereby unconditionally and irrevocably transfer and assign to the Company any and all rights, title and interest
the either the Consultant or Principal may currently have (or in the future may have) by operation of law or otherwise in or to
any IP. The Consultant and Principal each agree to execute and deliver to Company any transfers, assignments, documents or other
instruments necessary or appropriate to vest complete title and ownership of any IP, and all associated rights, exclusively in
Company pursuant to this Agreement. The Consultant and Principal each acknowledge and agree that, in the event of any violation
the covenants contained in this Section 3.4, the Company will have no adequate remedy at law. The Consultant and Principal each
accordingly agree that in the event of any violation of this Section 3.4, the Company shall be entitled to specific performance
and other equitable relief in addition to any other relief at law to which it may be entitled.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">d)&#9;<U>Consulting Fee</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">During the term of this Agreement,
the Company shall pay to the Consultant for its services hereunder:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">i) <U>Base Consulting Fee</U>.
A base consulting fee of One Hundred Five Thousand ($105,000) Dollars per annum, payable bi-weekly by direct deposit to the bank
account within the United States designated by Consultant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">ii) <U>Commissions</U>. In
addition to the base consulting fee a commission (the &quot;<U>Commission</U>&quot;) equal to five (5%) percent of all Net Sales
directly resulting from the sales activities of the Consultant. For purposes hereof &quot;<U>Net Sales</U>&quot; shall mean net
revenues, on a cash basis, from sales after returns and allowances, and after other necessary eliminations and adjustments are
made, all calculated in accordance with generally accepted accounting principles, consistently applied.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">iii) <U>Company's Rights
to Decline Orders</U>. The Company shall have the absolute right to decline any order placed through the Consultant without any
liability to the Consultant for a Commission. The Company will use its best efforts to determine and pay the Commission on a monthly
basis within fifteen (15) days after the end of each month. The determination by the Company of the Commission shall be submitted
in writing to the Consultant. Except for any specific objections with respect to which the Consultant gives the Company notice
within thirty (30) days following the Consultant being given the Company's determination, the determination of the Company shall
be final and binding on the Consultant and anyone else interested therein without any right of review, appeal or redetermination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">e)&#9;<U>Termination of
Consultancy</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">The retention of the Consultant
by the Company shall terminate (the &quot;<U>Termination Date</U>&quot;) upon the occurrence of any of the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">i) <U>End of Term</U>. The
end of the term of this Agreement, as provided in Article 2 hereof;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">ii) <U>Death</U>. The death
of the Principal;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">iii) <U>Disability</U>. At
the option of the Company, the Disability of the Principal for a continuous and consecutive three (3) month period. &quot;<U>Disability</U>&quot;
shall mean the Principal's inability to render either (a) for a period of three (3) consecutive months or (b) in the aggregate
of ninety (90) days in any consecutive six month period, services hereunder by reason of a disability, as determined by the written
medical opinion of an independent medical physician mutually acceptable to the Consultant and the Company. If the Consultant and
the Company cannot agree as to such an independent medical physician, each shall appoint one medical physician and those two physicians
shall appoint a third physician who shall make such determination. If the Principal shall be Disabled, shall thereafter return
to work and shall thereafter become Disabled, then such latter Disability shall be deemed a continuation of the former Disability
(and not a new Disability) unless the Principal has returned to work on a full time basis and has substantially performed all of
his duties for a period of four (4) continuous and consecutive weeks;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">iv) <U>For Cause</U>. The
giving of written notice by the Company to the Consultant of termination for Cause. &quot;<U>Cause</U>&quot; shall mean any one
or more of the following, as determined by the Company in good faith: (a) the willful or knowing failure or refusal of the Consultant
substantially to perform its duties hereunder; (b) the breach by the Consultant or Principal of any of the material obligations
of the Consultant and/or Principal under this Agreement; (c) the engaging by the Consultant or Principal in: (i) an act of fraud,
(ii) an illegal or criminal act, (iii) a dishonest act, or (iv) misconduct materially injurious to the Company, monetarily or otherwise,
including but not limited to any action which holds the Consultant or the Company in public disrepute; (d) a breach by the Consultant
of any fiduciary duty to the Company; (e) malfeasant or negligent conduct; or (f) any violation by the Consultant or Principal
of any Federal or state securities law; or (g) a breach by the Principal of any restrictive covenants contained in the Asset Acquisition
Agreement or this Agreement.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">f) <U>Effect of Termination</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">In the event of the termination
of the Consultant&rsquo;s consultancy for any of the reasons set forth in Article 5 hereof, all sums payable to the Consultant
shall terminate as of the Termination Date and the Consultant shall only be entitled to payment of any sums previously accrued
hereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">g) <U>Confidentiality of
Information and Duty of Nondisclosure</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">i) <U>Acknowledgment</U>.
The Consultant and Principal each acknowledge and agree that the Consultant&rsquo;s engagement by the Company under this Agreement
necessarily involves his understanding of and access to certain trade secrets and confidential information pertaining to the Business
as well as relationships with customers and suppliers of the business of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">ii) <U>Confidentiality</U>.
Accordingly, the Consultant and Principal each agree that at all times during the term of this Agreement and thereafter, it and
he will not, directly or indirectly, without the express authority of the Company unless directed by applicable legal authority
having jurisdiction over the Consultant and/or Principal, disclose to or use for the benefit of any person, firm or entity (a &ldquo;<U>Person</U>&rdquo;),
or himself, any files, trade secrets, proprietary information or other Confidential Information concerning the Company or its Business.
Further, the Consultant and Principal each agree that it and he will not, directly or indirectly, remove or retain, without the
express prior written consent of the Company, any figures, calculations, letters, papers, records, documents, instruments, drawings,
designs, programs, or any copies thereof, or any information or instruments derived therefrom, or any other similar documents or
information of any type or description, however such information might be obtained or recorded and on whatever medium such information
may be contained, arising out of or in any way relating to the Company or its Business obtained as a result of or in connection
with his retention, heretofore or hereafter, by the Company. The Consultant and Principal each acknowledge that all of the foregoing
constitutes proprietary information, which is the exclusive property of the Company. As used in this Section 7.2, &ldquo;Confidential
Information&rdquo; shall mean any information relating to this Agreement, the Business or affairs of the Company, and information
relating to financial statements, customer identities, potential customers, employees, suppliers, servicing methods, equipment,
programs, strategies and information, analyses, profit margins or other proprietary information used by the Company in connection
with its business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">iii) <U>Limitations on Obligations</U>.
From and after the Termination Date, the restrictions set forth in this Article shall not apply to such information which is then
in the public domain, if the Consultant or Principal was not responsible, directly or indirectly, for permitting such information
to enter the public domain without the consent of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">h)&#9;<U>Covenant Not to
Compete</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">i) <U>Consideration</U>.
This covenant between the Consultant and Principal, on one hand, and the Company, on the other hand, is being executed and delivered
by the parties in consideration of the covenants of the Company and the Principal contained in this Agreement and the agreement
of the Company to acquire substantially all of the assets of the Consultant pursuant to the Asset Acquisition Agreement.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">ii) <U>Non-Compete</U>. The
Consultant and Principal each hereby agree that during the term of this Agreement and for a period commencing on the termination
of the consultancy hereunder for any reason whatsoever, with or without cause, voluntarily or involuntarily, and ending three (3)
years after the Termination Date (the &ldquo;<U>Restricted Period</U>&rdquo;), except on behalf of the Company, it and he will
not, directly or indirectly, as agent, employee, consultant, representative, stockholder, manager, member, partner or in any other
capacity, own (other than through the passive ownership of less than one percent (1%) of the publicly traded shares of any Person),
operate, manage, control, engage in, invest in (other than through the passive ownership of less than one percent (1%) of the publicly
traded shares of any Person) or participate in any manner in, act as a consultant or advisor to, render services for (alone or
in association with any Person), or otherwise assist any Person that engages in or owns, invests in, operates, manages or controls
any venture or enterprise that directly or indirectly engages or proposes to engage in any business competitive with any portion
of the Business anywhere in the world (the &ldquo;<U>Territory</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">iii) &#9;<U>Non-Solicitation</U>.
Without limiting the generality of the provisions of Section 8.2, the Consultant and Principal each hereby agree that during the
Restricted Period, it and he will not, except on behalf of the Company, directly or indirectly, solicit, or participate as agent,
employee, consultant, representative, stockholder, manager, partner or in any other capacity in any business which solicits business
from any Person which is or was a customer or supplier of the Business at any time during the three (3)-year period preceding the
date of such solicitation, or from any successor in interest to any such Person for the purpose of securing business or contracts
related to any portion of the Business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">iv)&#9;<U>Interference with
Relationships</U>. .</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">(1) During the Restricted
Period, the Consultant and Principal each shall not, directly or indirectly, as agent, employee, consultant, distributor, representative,
stockholder, manager, member, partner or in any other capacity, request, directly or indirectly, that any suppliers, customers
or clients of the Company, or other Persons sharing a business relationship with the Company curtail or cancel their business with
the Company, or in any other way interfere with any such business relationships with the Company, or otherwise take action which
might be to the material disadvantage of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1.5in">(2) During the Restricted
Period, the Consultant and Principal each shall not, without the prior written consent of the Company, except on behalf of the
Company, directly or indirectly, as agent, employee, consultant, distributor, representative, stockholder, manager, member, partner
or in any other capacity, employ or engage, or recruit or solicit for employment or engagement, any person (i) who is employed
or engaged by the Company or any of its affiliates, (ii) who was employed or engaged by the Company within six (6) months of such
contact, or otherwise seek to influence or alter any such person&rsquo;s relationship with the Company .</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">v)&#9;<U>Blue-Pencil</U>.
If any court of competent jurisdiction shall at any time deem the term or any particular restrictive covenant contained in this
Article 8 too lengthy or the Territory too extensive, the other provisions of this Article 8 shall nevertheless stand, and the
Restricted Period and/or the Territory shall be reduced to such duration or size of such court shall determine to be permissible.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">i)&#9;<U>Certain Remedies</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">i) <U>Accounting</U>. The
Consultant and Principal each agree that upon a breach of any of the covenants set forth in Article 7 or 8, the Company shall be
entitled to an accounting and payment by the Consultant and Principal of all profits realized by it or him as a result of any such
violation, in addition to the injunctive relief set forth in Section 9.2.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">ii) <U>Injunctive Relief</U>.
The Consultant and Principal each acknowledge and agree that the covenants set forth in Articles 7 and 8 are reasonable and necessary
for the protection of the Company&rsquo;s business interests, that irreparable injury will result to the Company if the Consultant
and/or Principal breaches any of the terms of Article 7 or 8 and that in the event of any actual or threatened breach by the Consultant
and/or Principal of any of the provisions contained in Article 7 or 8, the Company will have no adequate remedy at law. The Consultant
and Principal each accordingly agree that in the event of any actual or threatened breach by it or him of any of the provisions
contained in Article 7 or 8, the Company shall be entitled to injunctive and other equitable relief, without the necessity of showing
actual monetary damages and without posting any bond or other security, in addition to pursuing any other remedies available to
it for such breach or threatened breach, including the recovery of any damages.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">iii) <U>Independent Covenants</U>.
The provisions of Articles 7 and 8 shall be read and construed and shall have effect as separate, severable and independent provisions
or restrictions, and shall be enforceable accordingly. The existence of any claim or cause of action which the Consultant and/or
Principal may have against the Company shall not constitute a defense or bar to the enforcement of any of the covenants contained
in Articles 7 and 8.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">iv) <U>Costs of Enforcement</U>.
In addition thereto, if the Company must resort to litigation to enforce any of the covenants contained in Article 7 or 8, the
Company shall be entitled to recover from the Consultant and/or Principal all of its costs of enforcement, including reasonable
attorneys' fees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">v) <U>Extension of Covenant</U>.
If the Company must resort to litigation to enforce any of the covenants contained in Article 8 which has a fixed term, then such
term shall be extended for a period of time equal to the period of such breach, beginning on the date of a final court order (without
further right of appeal) acknowledging the validity of such covenant or, if later, the last day of the original fixed term of such
covenant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">j) <U>Survival of Obligations</U>.&#9;Notwithstanding
anything contained in this Agreement to the contrary, the obligations of the Consultant and Principal under Articles 7 and 8, and
the rights and remedies of the Company under Article 9 shall survive the termination of the Consultant's services hereunder for
any reason whatsoever.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">k) <U>Non-Disparagement</U>.
Consultant will not, at any time, during or after this Agreement, directly or indirectly, publish or communicate disparaging or
derogatory statements or opinions in any way about the Company or its affiliates, including but not limited to disparaging or derogatory
statements or opinions about the Company&rsquo;s management, products or services, to any third party. It shall not be a breach
of this section for Consultant to testify truthfully in any judicial or administrative proceeding or to make statements or allegations
in legal filings based upon the Consultant&rsquo;s reasonable belief and are not made in bad faith. The Company will not, at any
time, during or after this Agreement, directly or indirectly, publish or communicate disparaging or derogatory statements or opinions
about Consultant to any third party unrelated to the Company. It shall not be a breach of this section for the Company, or its
employees to testify truthfully in any judicial or administrative proceeding or to make statements or allegations in legal or government
filings that are based on the Company&rsquo;s reasonable belief and are not made in bad faith.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">l) <U>Consultant Representations</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">The Consultant and Principal
represent and warrant to the Company, knowing and intending that it shall rely thereon, as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">i) <U>No Violations</U>.
The execution and delivery of this Agreement by the Consultant and Principal, and the performance by the Consultant and Principal
of their obligations hereunder, does not violate any other agreement or contract to which the Consultant and/or Principal is a
party or by which it or he may be bound.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">ii) <U>Authority</U>. The
Consultant and Principal have the power and authority to enter into this Agreement and this Agreement constitutes the valid, legal
and binding obligation of the Consultant and Principal, enforceable in accordance with its terms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">iii) <U>No Prior Obligations</U>.
Principal is under no obligation to any former employer or any other person which is in any way inconsistent with, or which imposes
any restriction upon, Consultant's or Principal&rsquo;s undertakings under this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">iv) <U>Counsel</U>. The Consultant
and Principal have reviewed this Agreement with John I. Menard, Esq., a member of the Bar of the State of New York.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">m) <U>Successors</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">i) <U>The Consultant</U>.
This Agreement is personal to the Consultant and, without the prior express written consent of the Company, shall not be assignable
by the Consultant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">ii) <U>The Company</U>. This
Agreement shall inure to the benefit of and be binding upon the Company, and its affiliates, successors and assigns.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">n) <U>Miscellaneous</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">i) <U>Applicable Law</U>.
This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada, applied without reference
to principles of conflict of laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">ii) <U>Amendments</U>. This
Agreement may not be amended or modified otherwise than by a written agreement executed by the parties hereto or their respective
successors and legal representatives.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">iii) <U>Notices</U>. All
notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other parties or by registered
or certified mail, return receipt requested, postage prepaid, addressed as follows:</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">If to the Consultant</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 2in; text-align: justify; text-indent: -2in">and/or Principal:&#9;35
Mooring Line Drive</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 2in">Rochester, New York 14622</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 2in; text-align: justify; text-indent: -2in">with a copy to:&#9;John
I. Menard, Esq.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 2in">Van Loon Menard, Attorneys
at Law</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 2in">1 South Washington Street,
Suite 410</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 2in">Rochester, New York 14614</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">If to the Company:&#9;at its then principal
place of business</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 2in; text-align: justify; text-indent: -2in">with a copy to:&#9;Paul
M. Petigrow, Esq.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 2in">Lampf, Lipkind, Prupis &amp;
Petigrow, P.A.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 2in">80 Main Street, Suite 350</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 2in">West Orange, New Jersey 07052-5482</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">or to such other address as any party hereto
shall have furnished to the others in writing in accordance herewith. Notices and communications shall be effective when actually
received by the addressee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">iv) <U>Severability</U>.
The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">v) <U>Captions</U>. The captions
of this Agreement are not part of the provisions hereof and shall have no force or effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">vi) <U>Entire Agreement</U>.
This Agreement contains the entire agreement between the parties concerning the subject matter hereof and supersedes all prior
agreements, understandings, discussions, negotiations and undertakings, whether written or oral, between the parties with respect
thereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">vii) <U>Survivorship</U>.
The respective rights and obligations of the parties hereunder shall survive any termination of this Agreement, to the extent necessary
to the intended provision of such rights and the intended performance of such obligations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">viii) <U>Validity</U>. The
invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability
of any other provision of this Agreement, which shall remain in full force and effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 1in">ix) <U>Headings</U>. The
headings in this Agreement are for the convenience of reference only and shall not be deemed to define, limit, or describe the
scope and intent of this Agreement, or any article or section thereof, or to alter or affect the interpretation of any provision
thereof.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B>IN WITNESS WHEREOF</B>,
the parties have executed this Agreement the day and year first above written.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>XZERES WIND CORP.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">By: <U>/s/David N. Baker</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">David N. Baker, Chairman of the Board</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>ROCHESTER POWER SAVER, INC.</B>, Consultant</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">By: <U>/s/Michael Dana</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Michael Dana, President</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><U>/s/Michael Dana</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>MICHAEL DANA</B>, Principal</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U></U></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>&nbsp;</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><B></P>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00188-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00188-of-00352.parquet"}]]