Document:

EX-10.12

 EXHIBIT 10.12 

FirstBank 2012 Equity Based Incentive Plan 

1. PURPOSE OF THE PLAN 
 FirstBank (the
“Company”), a corporation organized under the laws of the State of Tennessee, hereby adopts this 2012 Equity Based Incentive Plan (the “Plan”). The purposes of the Plan are: 

 

	(a)	To promote the long-term financial interests and growth of the Company and the Subsidiaries (as defined below) by attracting and retaining management and personnel with the training, experience, and ability to make a
substantial contribution to the success of the business of the Company and the Subsidiaries; 

  

	(b)	To motivate personnel by means of incentives to achieve long range goals; 

  

	(c)	To further align the interests of Participants with those of the Company’s Parent and its stockholder(s) through opportunities for equity-based incentives in the Company; and 

 

	(d)	To allow each participant to share in the value of the Company on the date such Participant is granted EBI Units (as defined below) and the increase in the value of the Company following the date such Participant is
granted EBI Units in accordance with the terms of the Plan. 

 2. DEFINITIONS 

 

	(a)	“Administrator” means the Vice Chairman of the Board and the President of the Company. 

  

	(b)	“Award” means a grant of EBI Units. 

  

	(c)	“Award Agreement” means an agreement entered into between the Company and the Participant evidencing the terms of this 2012 Equity Based Incentive Plan. 

 

	(d)	“Board” or “Board of Directors” means the Board of Directors of the Company as it may be constituted from time to time. 

 

	(e)	“Cause” means (i) Employee is indicted on a felony charge unless and until the charge is subsequently dismissed; (ii) Employee is convicted of a felony (or submits a nolo contendere plea to one); (iii)
Employee’s performance while on or about the business of the Company is impaired by the use of alcohol, drugs, or other mind or behavior altering substances; (iv) Employee commits an act of fraud or dishonesty or knowingly permits another
employee to commit an act of fraud or dishonesty; (v) Employee’s willful neglect of, or willful failure to perform, their duties; (vi) breach of the restrictive provisions contained in any Confidentiality Agreement or Non-Competition and
Non-Solicitation Agreement. 

  
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	(f)	“Change in Control” means the occurrence of a “change in ownership,” or a “change in ownership of a substantial portion of assets.” 

A “change in ownership” occurs on the date that any one person, or more than one person acting as a group, acquires ownership of
stock of the Company or the Parent that, together with any stock already held by such person or group, constitutes more than 50% of the total fair market value or total voting power of the stock of the Company or the Parent, as applicable. However,
if any one person or group is already considered to own more than 50% of the Company or the Parent at the time an Award is made, the acquisition of additional stock by such person or group is not considered to cause a change in ownership with
respect to such Award. A change in ownership will also occur in the event of a public offering in which more than 50% of the total fair market value or total voting power of the stock of the Company or the Parent is sold. 

A “change in ownership of a substantial portion of assets” occurs on the date that any one person, or more than one person acting as
a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or group) assets from the Company that have a total gross fair market value equal to or greater than 50% of the total
gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions. For this purpose, gross fair market value means the value of the assets of the Company, or the value of the assets being disposed of,
determined without regard to any liabilities associated with such assets. A transfer of assets by a Company is not treated as a change in ownership of such assets if the assets are transferred to: 

 

	 	i.	a shareholder of the Company (immediately before the asset transfer) in exchange for or with respect to its stock; 

  

	 	ii.	an entity, 50% or more of the total value or voting power of which is owned, directly or indirectly, by the Company or the Parent; 

  

	 	iii.	a person, or more than one person acting as a group, that owns, directly or indirectly, 50% or more of the total value or voting power of all the outstanding stock of the Company; or 

 

	 	iv.	an entity, at least 50% of the total value or voting power of which is owned, directly or indirectly, by a person or group described in (iii) above. 

For purposes of (ii) through (iv) above, a person’s or group’s status is determined immediately after the transfer of assets. For
example, a transfer to a corporation in which the transferor corporation has no ownership interest before the transaction, but which is a majority-owned subsidiary of the transferor corporation after the transaction is not treated as a change in the
ownership of the assets of the transferor corporation. 

  
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 However, notwithstanding the above, a Change in Control shall not include a sale to an Employee
Stock Ownership Plan sponsored by the Company or its Subsidiaries or Parent or a sale or transfer to a Family Member or members of a current shareholder of the Parent or a trust or partnership established by a current shareholder of the Parent or
Family Member of such shareholder if the partnership is substantially owned (80% or more) by a current shareholder or Family Member, or a transfer to a charitable trust or foundation established by a current shareholder or Family Member. A current
shareholder is a shareholder of the Parent as of the date of the adoption of this Plan. 
  

	(g)	“Code” means the Internal Revenue Code of 1986, as amended. 

  

	(h)	“Company” means First Bank, a Tennessee corporation, also known as FirstBank. 

  

	(i)	“Disability” means the Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can
be expected to last for a continuous period of not less than 12 months. 

  

	(j)	“Employee” shall mean any officer or other employee (as defined in accordance with Section 3401(c) of the Code) of the Company, or of any corporation which is a Subsidiary. 

 

	(k)	“EBI Units” means a contractual right to receive the Fair Market Value of a share of Common Stock on the Payment Date after the Grant Date on each EBI Unit subject to such Award. 

 

	(l)	“Exchange Act” means the Securities Exchange Act of 1934, as amended, and any successor statutes or regulations of similar purpose or effect. 

 

	(m)	 “Fair Market Value” of the Company as of a given date shall be the value computed as of the
December 31 immediately prior to the date such value is to be determined (e.g. date of Award or Payment), of all outstanding shares of Common Stock of the Company (“Common Stock”) determined according to the following: (a) If the
Common Stock is publicly traded, the market value of the Company as computed by the aggregate, multiplied by the closing price of a share of Common Stock on the principal exchange on which shares of Common Stock are then trading, if any (or as
reported on any composite index which includes such principal exchange), on the trading day previous to such date, or, if shares were not traded on the trading day previous to such date, then on the next preceding date on which a trade occurred, or
(b) if Common Stock is not traded on an exchange but is quoted on NASDAQ or a successor quotation system, market value of the Company as computed by the aggregate, as of the December 31 immediately prior to the valuation event, of all
outstanding shares of Common Stock multiplied by the closing price for the Common Stock on the trading day previous to such date as reported by NASDAQ or such successor quotation system, or (c) if Common Stock is not publicly traded on an exchange
and not quoted on NASDAQ or a successor quotation 

  
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system, the Fair Market Value of the Company shall be determined by the Formula Value. The Formula Value is defined as the average of the sum of (a) 1.5 times FSB After-Tax Earnings and (b)
1.5 times the Parent’s FSB Tangible Book Value. FSB After-Tax Earnings is defined as the consolidated pre-tax earnings of the Company and the Parent minus a default rate equal to the then existing corporate income tax rate imposed by the
Code on a corporation’s earnings of such amount. FSB Tangible Book Value is defined as the consolidated equity of the Company and Parent less Unrealized Gain (Loss) and less Intangibles. 

The Fair Market Value of a share of Common Stock shall be the determined by dividing the Fair Market Value of the Company as determined above
by the number of shares of Common Stock outstanding on June 30, 2012 (as such total shares shall be adjusted in accordance with section 7 hereof), as illustrated by the following formula: 

 

			
	Value of share of Common Stock =	 	 Stock Market Value of Company, or Formula Value (whichever is applicable)

		 	 Total Shares of Common Stock
 (171,800 shares at
6-30-12, as adjusted pursuant to section 7 hereof)

 However, if an Employee first becomes entitled to a Plan distribution due to a Change in Control, the Fair
Market Value of the Company shall equal the greater of: (i) the Formula Value as of December 31 of the previous year, or (ii) the value of the Common Stock as paid in the Change in Control (the average price per share paid for such Common Stock
aggregating into the Change of Control). In the event a portion of the purchase price in the Change of Control transaction is subject to an earn out or other contingency, the contingency component shall be computed and paid in accordance with the
provisions of section 6(b) hereof as the contingency is met. In the event the stock involved in the Change in Control is that of the Parent, the Administrator shall obtain an appraisal of the value of the transaction attributable to the Company, so
as to determine the Fair Market Value of the common stock of the Company based on the sale of the Parent’s stock. Further, Fair Market Value shall at all times be determined in a manner consistent with Section 409A of the Internal Revenue Code,
as applicable. 
  

	(n)	“Family Member” means the spouse, lineal descendants and spouses of lineal descendants of the measuring person. For this purpose, an adopted child shall be considered a lineal descendant of the adopting
parent. Any shares owned by a spouse immediately following a divorce shall be deemed owned by a Family Member. 

  
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	(o)	“Grant Date” means the effective date of an Award granted to a Participant. 

  

	(p)	“Parent” means First South Bancorp, Inc. 

  

	(q)	“Participant” means an Employee who has received an Award that has not been settled, cancelled or forfeited. 

  

	(r)	“Plan” means this FirstBank 2012 Equity Based Incentive (EBI) Plan, as may be amended from time to time. 

  

	(s)	“Retirement” means (i) termination of employment with the Company by a Participant who is age 65 or older or (ii) termination of employment with the Company by a younger Participant where the Chairman of the
Board in his sole discretion deems to accept such termination as a Retirement; provided, however, that to the extent that an Award is nonqualified deferred compensation (within the meaning of Section 409A of the Internal Revenue Code), the
definition of “Retirement” with respect to the timing of payment (and not merely vesting) of the Award cannot be changed after the Award is granted. 

  

	(t)	“Securities Act” means the Securities Act of 1933, as amended, and any successor statutes or regulations of similar purpose or effect. 

 

	(u)	“Payment Date” means the date set forth in Section 6 pursuant to which a Participant becomes entitled to payment for his or her EBI Units. 

 

	(v)	“Subsidiary” means (i) any corporation the majority of the voting power of all classes of stock entitled to vote or the majority of the total value of shares of all classes of stock of which is owned, directly
or indirectly, by the Company or its Parent, or (ii) any trade, business, or other entity other than a corporation of which the majority of the profits interest, capital interest, or actuarial interest is owned, directly or indirectly, by the
Company or its Parent. 

  

	(w)	“Vesting Date” means the date on which the Participant becomes vested in his or her Award as provided in Section 5. 

3. ADMINISTRATION OF THE PLAN 
  

	(a)	 Duties and Powers of the Administrator. The Plan will be administered by the Administrator. The
Administrator may adopt its own rules of procedure, and the action of the Compensation Committee of the Board, taken at a meeting or, to the extent permitted by law, taken without a meeting by a writing signed by such majority (or by all or such
greater proportion of the members thereof if required by law), shall constitute action by the Administrator. The Administrator shall have the power, authority, and discretion to administer, construe, and interpret the Plan and Award Agreements,
including, without limitation, the discretion to determine which employees shall be Participants and the terms and conditions, subject to the 

  
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Plan, of the individual Award Agreements. The decisions and interpretations of the Administrator with respect to any matter concerning the Plan shall be final, conclusive, and binding on all
parties who have an interest in the Plan. Any such interpretations, rules, and administration shall be consistent with the basic purposes of the Plan. Notwithstanding the above provisions of this subsection (a), the selection of Participants
and the determination of the grants under this Plan shall be made by the Chairman of the Board of the Company. 

  

	(b)	Delegation. In its absolute discretion, the Administrator may delegate to the other senior officers of the Company its duties under the Plan subject to any conditions and limitations as the Administrator shall
prescribe. 

  

	(c)	Expenses; Professional Assistance; Good Faith Actions. All expenses and liabilities incurred by the Administrator in connection with the administration of the Plan shall be borne by the Company. The Administrator
may employ attorneys, consultants, accountants, appraisers, brokers, or other persons. The Administrator, the Company and its Subsidiaries, and the officers of the Company and its Subsidiaries shall be entitled to rely upon the advice, opinions, or
valuations of any such persons. All actions taken and all interpretations and determinations made by the Administrator in good faith shall be final and binding upon all Participants, the Company and its Subsidiaries, and all other interested
persons. No member of the Administrator shall be personally liable for any action, determination or interpretation made in good faith with respect to the Plan or the Awards, and all members of the Administrator shall be fully protected by the
Company with respect to any such action, determination, or interpretation. 

 4. INDIVIDUAL GRANTS; ELIGIBILITY; UNITS 

 

	(a)	Eligibility. Participants will be chosen by the Chairman of the Board of the Company, in his sole discretion, from employees who, in his judgment, have a significant opportunity to influence the growth of the
Company or whose outstanding performance or potential merit deserve further incentive and reward for continued employment and accomplishment. Any employee who receives a Grant must enter into a Confidentiality Agreement and a Non-Competition and
Non-Solicitation Agreement or equivalent or already be subject to a Confidentiality Agreement and a Non-Competition and Non-Solicitation Agreement with the Company, in either case in form and substance satisfactory to the Administrator. The
Administrator may vary the requirements of the Non-Confidentiality aspect of the Agreement by category of amount of grant or such other criteria as the Administrator may determine. 

  
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 5. AWARDS 
  

	(a)	Grant of Awards. The Chairman of the Board of the Company may, in his sole discretion, at any time and from time to time grant EBI Units to any Employee. Each Award will be evidenced by an Award Agreement
containing such terms and conditions, not inconsistent with the Plan, as the Chairman of the Board of the Company shall designate. An Award will become effective upon the execution by the Participant of an Award Agreement, acknowledging the terms
and conditions of the Award and the execution of a Confidentiality Agreement and a Non-Competition and Non-Solicitation Agreement with the Company satisfactory to the Administrator if Participant is not already subject to such an agreement(s) that
is satisfactory to the Administrator. 

  

	(b)	Unit Accounts. Any EBI Units awarded to a Participant shall be credited to an account to be maintained on behalf of such Participant. Such account shall be debited by the number of EBI Units with respect to which
any Payments are made pursuant to Section 6. 

  

	(c)	Vesting. Each Award shall vest on the Vesting Date as specified in the following Vesting Schedule. 

  

					
	 Complete Years of Service

Following Grant Date
	  	Percentage Vested	 
	 1
	  	 	0	% 
	 2
	  	 	0	% 
	 3
	  	 	100	% 

 Provided however, that (subject to the last sentence in this paragraph) in the case of Retirement, death or Disability
the Award shall be deemed fully vested upon the date of such Retirement, death or Disability, and provided further, that in the case of a Change in Control, all Units shall become fully vested. However, in no event may any
vesting violate the minimum two-year vesting period specified in the definition of “Long Term Restricted Stock” in the Department of Treasury’s Interim Final Rule in 31 CFR Part 30. 

For example, if a Participant received a Grant of EBI Units on October 1, 2012, he or she would be 0% vested in those Units prior to September 30, 2015, and
100% vested on September 30, 2015. Any Award, or portion thereof, not 100% vested upon the date of a Participant’s termination (by resignation or dismissal,) of employment with the Company, its Parent, or Subsidiaries of the Parent or
Company will be forfeited, and no payment will be made thereon, except that, in the case of Retirement, death or Disability the EBI Units shall be deemed fully vested upon the date of such Retirement, death or Disability. If a
Participant’s employment is terminated for Cause, the Participant shall forfeit any Award and all EBI Units, whether vested or unvested, or any portion thereof, outstanding as of the date of such termination of employment. 

  
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 6. PAYMENT OF EBI UNITS 
  

	(a)	Payment Date. Except as provided herein, and assuming the Participant has not violated the terms of his or her Confidentiality Agreement or Non-Competition and Non-Solicitation Agreement, all as set forth in
section 4 hereof, the Fair Market Value of the vested portion of each Award/EBI Units shall become payable in accordance with subsection (b) below on the earlier to occur of: (i) the 100% vesting of the Award/EBI Units, or (ii) the Retirement, death
or Disability of the Participant, or (iii) a Change of Control. For example, if a Participant received a Grant of EBI Units on October 1, 2012, he or she would be 100% vested in those Units on September 30, 2015, and payment would be made on
September 30, 2015 based on Fair Market Value as of December 31, 2014. If the Participant separates employment due to Retirement, death or Disability prior to 100% vesting, then the Units will become fully vested upon such event and the Payment Date
will be the date of such Retirement, death or Disability and the amount paid shall be the Fair Market Value (as of the December 31 preceding Retirement, death or Disability) of the full Award/EBI Units in the case of Retirement, death or
Disability. If a Change of Control occurs prior to full vesting, all outstanding Awards/EBI Units shall become fully vested upon the Change in Control and paid at such date (subject to the provisions herein regarding deferrred payment of contingent
purchase price in Change in Control transactions). To provide for administrative flexibility, the actual payment of amounts due under this Plan may be delayed by the Company until the end of the fiscal quarter in which the Payment Date occurs.

  

	(b)	Payment. On the Payment Date, each Participant shall be entitled to receive an amount in cash for each EBI Unit vested to such Participant equal to the Fair Market Value of a share of Common Stock on the
December 31 immediately preceding the Payment Date (or in the case of a Change of Control, the Fair Market Value of a share of Common Stock on the date of the Change of Control), as specified in the definition of Fair Market Value in section 2,
less any required income tax withholding. In the event of a Change in Control, if a portion of the purchase price for the stock is subject to an earn out or other contingency, the Participant shall first receive an amount in cash on the Payment Date
for each EBI Unit awarded to such Participant equal to the Fair Market Value determined without the contingency. As the contingency is satisfied and paid, the Fair Market Value shall be recomputed and the incremental increase shall be paid in cash
to the Participant immediately following the satisfaction of a contingency and payment of the earn out/contingency, but in no event later than two and one-half months after the end of the later of the calendar year or the Company’s fiscal year
in which the right to payment is no longer subject to a substantial risk of forfeiture. 

  
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	(c)	Postponement of Payment in the Event CPP Obligations are Outstanding. In the event that there is outstanding any obligations to the United States Treasury pursuant to the funding of the CPP note and warrants
issued by the Parent of the Company on July 17, 2009, the payment to any Participant shall be postponed to the extent postponement is required for any other Participant by the regulation specified in the definition of “Long Term Restricted
Stock” in the Interim Final Rule in 31 CFR Part 30. Such postponement shall be applicable to the Participants who have been covered by the prohibition on bonuses and incentive payments provisions of such Interim Final Rule in any year in
which or for which they participate in this Plan, and such postponement shall apply regardless of any vesting hereunder. Prior to any Payment, the Administrator shall consult with legal counsel to determine whether, and to what extent, a
Participant is affected by the said CPP restrictions. 

 7. DILUTION AND OTHER ADJUSTMENTS 

In the event of any change in the outstanding shares of Common Stock by reason of any issuance of shares in a sale of shares for cash, stock dividend or split,
recapitalization, merger, acquisition of another company, consolidation, spin-off, reorganization, combination or exchange of shares, or other similar corporate change, the Administrator will make such adjustments, if any, as it in its sole
discretion deems equitable in the number of EBI Units with respect to which an Award held by any Participant is referenced, such adjustments to be conclusive and binding upon all parties concerned. 

8. REIMBURSEMENT OF PAYMENT IN THE EVENT OF BREACH OF CONFIDENTIALITY AGREEMENT OR NON-COMPETITION AND NON-SOLICITIATION AGREEMENT; RIGHT OF SET-OFF;
CANCELLATION OF AWARDS. 
 In the event that the Participant breaches the Non-Competition and Non-Solicitation Agreement, following receipt of payment
for an Award, the Participant shall, upon demand by Company, immediately pay to Company an amount equal to the amount he or she received for payment of the Award. 

Notwithstanding anything which may be to the contrary contained herein, the Participant hereby agrees that the Company, the Parent and Subsidiaries shall have
a lien and a right to setoff for all liabilities, whether or not matured, owed by the Participant to the Company, the Parent and Subsidiaries arising out of this Agreement, or the Participant’s Confidentiality Agreement or Non-Competition and
Non-Solicitation Agreement or any other obligation owed by Participant or the Participant’s Personal Representative to the Company, the Parent and Subsidiaries upon and against all payments due and obligations of the Company under this
Agreement. Company may at any time without notice to Participant reduce the amount of any payment due to Participant hereunder by the amount 

  
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of any obligation owed by Participant to the Company, the Parent and Subsidiaries; provided, however, that any exercise of such right of setoff shall not be construed as a waiver or election of
the Company, the Parent and Subsidiaries to forego any other remedy or remedies that may be available at law or in equity. 
 All or any part of an Award
may be cancelled with the written consent of the Participant holding such Award. In the event of any cancellation, all rights of the former Participant in respect of such cancelled Award will terminate. 

9. MISCELLANEOUS PROVISIONS 
  

	(a)	Assignment and Transfer. Awards will not be transferable other than by will or the laws of descent and distribution and may be realized, during the lifetime of the Participant, only by the Participant or by their
guardian or legal representative. No Award or interest or right therein shall be liable for the debts, contracts, or engagements of the Participant or their successors in interest or shall be subject to disposition by transfer, alienation,
anticipation, pledge, encumbrance, assignment, or any other means whether such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment, or any other legal or equitable proceedings (including
bankruptcy), and any attempted disposition thereof shall be null and void and of no effect, except to the extent that such disposition is permitted by the preceding sentence. 

 

	(b)	No Right to Awards or Employment. No Employee or other person will have any claim or right to be granted an Award. Neither the Plan nor any action taken hereunder will be construed as giving any Employee or
Participant any right to be retained in the employ of the Company, the Parent or any Subsidiaries thereof. 

  

	(c)	General Creditor Status. Obligations of the Company under the Plan shall be unsecured and unfunded obligations, and the holders of Awards shall be general unsecured creditors of the Company. 

 

	(d)	Withholding. The Company and its Subsidiaries will have the right to deduct from payment of an Award any taxes required by law to be withheld from an Employee with respect to such payment. 

 

	(e)	Securities Laws. Each Award will be subject to the condition that such Award may not be exercised if the Administrator determines that the exercise of such Award may violate the Securities Act or any other law or
requirement of any governmental authority. The Company will not be deemed by any reason of the granting of any Award to have any obligation to register the Awards under the Securities Act or to maintain in effect any registration of such Awards or
shares that may be made at any time under the Securities Act. 

  
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	(f)	No Strict Construction. No rule of strict construction will be applied against the Company, the Administrator, or any other person in the interpretation of any of the terms of the Plan, any Award, or any rule or
procedure established by the Administrator. 

  

	(g)	Stockholder Rights. A Participant will not have any dividend, voting, or other stockholder rights by reason of a grant of an Award or settlement of an Award. An Award does not give a Participant an interest in
stock or securities or the right to stock or securities but rather uses an equity based formula to determine bonus compensation. 

  

	(h)	Severability. Whenever possible, each provision in the Plan and in every Award Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Plan or
any Award Agreement made thereunder will be held to be prohibited by or invalid under applicable law, then (i) such provision will be deemed amended, and to have contained from the outset such language necessary to accomplish the objectives of the
provision as originally written to the fullest extent permitted by law, and (ii) all other provisions of the Plan and every Award Agreement will remain in full force and effect. 

 

	(i)	Governing Law. The Plan will be governed by and construed in accordance with the laws of the United States of America and, to the extent not inconsistent therewith, by the laws of the State of Tennessee without
regard to conflicts of laws thereof. 

  

	(j)	Applicable Law and Regulations. This Plan and each of its provisions is intended to comply with all applicable state and federal laws, rules and regulations and in particular with any law, rule, regulation or
interpretation of any state or federal bank regulatory authority, now in force or hereafter enacted or promulgated (each a “Banking Law”) and Section 409A of the Internal Revenue Code. Notwithstanding anything herein to the contrary, if a
Participant is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Internal Revenue Code, the payment schedule for an Award shall be modified or adjusted as necessary to provide that no payments shall be made
until the expiration of six months following a separation from service pursuant to the default definition in Treasury Regulation section 1.409A-1(h). Any provisions of this Plan determined not to be consistent with current or future applicable laws
or regulations shall be disregarded by the Plan Administrator who shall cause the Plan to be amended to be consistent with all applicable laws and regulations and such Plan shall be deemed modified as necessary to conform with any Banking Law. This
Plan shall be governed by and construed in accordance with the laws of the State of Tennessee, without regard to the principles of conflicts of law thereof. The parties consent to exclusive jurisdiction and venue in the state or federal courts
sitting in Nashville, Tennessee. Each party hereto waives all defenses of lack of personal jurisdiction and forum non conveniens. 

  
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 10. AMENDMENT AND TERMINATION 

The Administrator may at any time amend, suspend, or terminate the Plan, provided that no such action will adversely affect any rights under any Awards
theretofore granted or change the vesting applicable to an Award in a manner adverse to a Participant, except in accordance with Section 7. 
 11.
EFFECTIVE DATE OF THE PLAN 
 The Plan will become effective as of the date on which it is adopted by the Compensation Committee of the Board of
Directors of FirstBank. 
 *  *  * 

I hereby certify that the foregoing Plan was duly adopted by the Compensation Committee of the Board of Directors of FirstBank on
                    . 
 Executed on this
     day of             . 
  

	
	  

	Chief Executive Officer

  
 12SECURITIES
PURCHASE AGREEMENT

 

This
Agreement (the “Agreement”), made and entered into this 4th day of May 2016 by and between certain selling
shareholders and warrant holders (the “Sellers”) (as indicated on Exhibit A hereof) of BIM Homes Inc. (the “Company”)
herein represented by Daniel Masters (“Sellers’ Representative”) and certain purchasers (the “Purchasers”)
(as indicated on Exhibit B hereof), herein represented by Armada Enterprises GP, LLC (“Purchasers’ Representative”),
sets forth the terms and conditions upon which Sellers will sell to Purchasers and Purchaser will buy from Sellers certain securities
consisting of Two Million (2,000,000) shares of common stock and Two Million Five Thousand (2,005,000) warrants to purchase shares
of common stock (collectively the “Securities”) of the Company.

 

In
consideration of the mutual promises, covenants, and representations contained herein, the parties hereto agree as follows:

 

ARTICLE
I

PURCHASE
OF SECURITIES

 

1.01Subject
to the terms and conditions of this Agreement, Purchasers agree to buy, and the Sellers agree to sell the Securities. The price
for the Securities will be Two Hundred Thousand Dollars ($200,000).

 

ARTICLE
II

REPRESENTATIONS
AND WARRANTIES

 

The
Sellers represent the following to Purchasers:

 

2.01Organization.
Company is a corporation duly organized, validly existing, and in good standing under the laws of Delaware, has all necessary
corporate power to own its properties and to carry on its business as now owned and operated by it, and is duly qualified to do
business and is in good standing in each of the states where its business requires qualification.

 

2.02Capital.
The authorized capital stock of Company consists of 100,000,000 shares of common stock and 20,000,000 shares of preferred stock,
of which 2,630,000 shares of common stock are outstanding as of the date hereof. At closing, Company will not have any outstanding
shares of preferred stock. All outstanding shares of Company are validly issued, fully paid and not assessable and not subject
to any preemptive rights. Except for the 2,500,000 warrants which are currently outstanding there are no subscriptions, options,
rights, warrants, convertible securities, or other agreements or outstanding commitments obligating Company to issue or to transfer
from treasury any additional shares of its capital stock.

 

2.03Directors
and Officers Compensation. No Director, Officer, Employee, or any other person associated with Company is due any compensation
from Company as of the date of this Agreement and none will be due any compensation at the time of Closing.

 

    	 	1	 

    	 	 	 

    

 

2.04SEC
Documents. Purchasers have been provided with the Registration Statement of Company on Form 10 and with all of its annual
and quarterly reports on Forms 10-K and 10-Q as filed with the Securities and Exchange Commission. These reports are accurate
in all material respects. Company has filed all required forms, reports and documents with the Securities and Exchange Commission
(the “SEC”) since the Company has been required to file such forms (collectively, the “SEC Reports”),
all of which have complied in all material respects with all applicable requirements of the Securities Act and the Exchange Act.
The Company Financial Statements are complete and correct in all material respects and fairly present in all material respects
the financial condition and results of operation of Company at such date and for such period and show all material liabilities,
absolute or contingent, of Company. The Company Financial Statements comply as to form in all material respects with applicable
requirements of the U.S. Securities and Exchange Commission with respect thereto, are accurate and in accordance with the books
and records of Company, have been prepared in accordance with generally accepted accounting principles applied on a consistent
basis during the period involved, except as may be indicated in the notes thereto or as permitted by rules of the Securities and
Exchange Commission.

 

2.05Absence
of Changes. Since March 30, 2016, there has not been any change in the financial condition or results of operations of
Company, except changes reflected on Exhibit C or changes in the ordinary course of business, which changes have not in the aggregate
been materially adverse.

 

2.06Absence
of Undisclosed Liabilities. Company did not, as of December 31, 2015, have any debt, liability, or obligation of any nature,
whether accrued, absolute, contingent, or otherwise, and whether due or to become due, that is not reflected in Company’s
10-K or on Exhibit C.

 

2.07Tax
Returns. Company has never filed any federal, state or local tax returns other than Franchise Tax returns with the State
of Delaware. The Company has had no earnings and therefore believes that no income taxes are due or payable. The provision for
taxes, if any, reflected in Company’s balance sheet as of December 31, 2015 is adequate for any and all federal, state,
county, and local taxes for the period ending on the date of that balance sheet and for all prior periods, whether or not disputed.
There are no present disputes as to taxes of any nature payable by Company.

 

2.08Investigation
of Financial Condition. Without in any manner reducing or otherwise mitigating the representations contained herein, Purchasers
shall have the opportunity between the date of this Agreement and the Closing to meet with accountants and attorneys of Company
to discuss the financial condition of Company. Company shall make available to Purchasers the books and records of Company. Such
books and records have been maintained in the ordinary course of business, and are true and correct copies of such books and records.
The minutes of Company are a complete and accurate record of all meetings of the shareholders and directors of Company and accurately
reflect all actions taken at such meetings. The signatures of the directors and/or officers on such minutes are the valid signatures
of Company’s directors and/or officers who were duly elected or appointed on the dates that the minutes were signed by such
persons. The stock book of Company contains an accurate record of all transactions with respect to the capital stock of Company.

 

2.09Patents,
Trademarks, Trade Names, and Copyrights. Exhibit C attached hereto and made a part hereof lists all trademarks, trademark
registrations or applications, trade names, service marks, patents, copyrights, copyright registrations or applications which
are owned by Company. No person other than Company owns any trademark, trademark registration or application, service mark, trade
name, copyright, or copyright registration or application the use of which is necessary or contemplated in connection with the
operation of Company’s business.

 

    	 	2	 

    	 	 	 

    

 

2.10Contracts
and Leases. Exhibit C, attached hereto and made a part hereof, contains a summary of the provisions of all material contracts,
leases or other agreements to which Company is a party. Company is not in default under any agreements to which it is a party.

 

2.11Insurance
Policies. Exhibit C to this Agreement is a description of all insurance policies held by Company concerning its business
and properties. All these policies are in the respective principal amounts set forth in Exhibit C and are in full force and effect.

 

2.12Compliance
with Laws. Company has complied with, and is not in violation of, applicable federal, state, or local statutes, laws,
and regulations affecting its properties or the operation of its business, including, but not limited to, federal and state securities
laws.

 

2.13Litigation.
Company is not a party to any suit, action, arbitration, legal, administrative, or other proceeding, or governmental investigation
pending or, to the best knowledge of Company, threatened against or affecting Company or its business, assets, or financial condition.
Company is not in default with respect to any order, writ, injunction, or decree of any federal, state, local, or foreign court,
department, agency, or instrumentality. Company is not engaged in any legal action to recover moneys due to Company or damages
sustained by Company.

 

2.14No
Further Consent. No consent, approval, order, or authorization, of, or registration, declaration or filing with, any court,
administrative agency, commission or other governmental authority or instrumentality is required in connection with the execution,
delivery and performance of this Agreement.

 

2.15Full
Disclosure. None of the representations and warranties made by the Sellers, or in any certificate or memorandum furnished
or to be furnished by the Sellers, or on their behalf, contains or will contain any untrue statement of material fact, or omit
any material fact the omission of which would be misleading.

 

2.16Common
Stock. The common stock of Company is quoted on the OTC Market. No letter “E” has been appended to the common
stock of Company during the past twenty-four months and Company has not received any notice of the possible or pending delisting
of the common stock of Company. The common stock of Company is “DTC eligible”.

 

2.17.Ability
to Carry Out Obligations. The Sellers have the right, power, and authority to enter into, and perform their obligations
under, this Agreement. The execution and delivery of this Agreement by the Sellers and the performance by the Sellers of their
obligations hereunder will not cause, constitute, or conflict with or result in (a) any breach or violation of any of the provisions
of or constitute a default under any license, indenture, mortgage, charter, instrument, articles of incorporation, by-law, or
other agreement or instrument to which the Sellers are a party, or by which they may be bound, nor will any consents or authorizations
of any party other than those hereto be required, (b) an event that would permit any party to any agreement or instrument to terminate
it or to accelerate the maturity of any indebtedness or other obligation of the Sellers, or (c) an event that would result in
the creation or imposition or any lien, charge, or encumbrance on any asset of the Sellers or would create any obligations for
which the Sellers would be liable, except as contemplated by this Agreement.

 

    	 	3	 

    	 	 	 

    

 

2.18Securities
to Be Sold to Purchasers. The Sellers have valid title to their Securities and acquired their Securities in lawful transactions
in accordance with Delaware corporate law and the applicable securities laws and bankruptcy laws of the United States. The Sellers
have good and marketable title to all of the Securities being sold by them to Purchasers pursuant to this Agreement. The Securities
will be, at the Closing, free and clear of all liens, security interests, pledges, charges, claims, encumbrances and restrictions
of any kind, except for restrictions on transfer imposed by federal and state securities laws. None of the securities are or will
be subject to any voting trust or agreement. No person holds or has the right to receive any proxy or similar instrument with
respect to such Securities. Except as provided in this Agreement, the Sellers are not a party to any agreement which offers or
grants to any person the right to purchase or acquire any of the Securities. There is no applicable local, state or federal law,
rule, regulation, or decree which would, as a result of the purchase of the Securities by Purchasers, impair, restrict or delay
voting rights with respect to the Securities.

 

Purchasers
warrant the following to the Sellers:

 

2A.Organization.
If and to the extent that any Purchaser(s) is not an individual but an entity, such entity is duly organized, validly existing,
and in good standing under the laws of its state of domicile, has all necessary powers to own its properties and to carry on its
business as now owned and operated by it, and is duly qualified to do business and is in good standing in each of the states where
its business requires qualification, except in those states where the failure to be so qualified would not have a material adverse
effect on such Purchaser(s).

 

2B.Ability
to Carry Out Obligations. Each and Every Purchaser has the right, power, and authority to enter into, and perform its
obligations under, this Agreement. The execution and delivery of this Agreement by Purchasers and the performance by Purchasers
of their obligations hereunder will not cause, constitute, or conflict with or result in (a) any breach or violation of any of
the provisions of or constitute a default under any license, indenture, mortgage, charter, instrument, articles of incorporation,
by-law, or other agreement or instrument to which such Purchaser is a party, or by which it may be bound, nor will any consents
or authorizations of any party other than those hereto be required, (b) an event that would permit any party to any agreement
or instrument to terminate it or to accelerate the maturity of any indebtedness or other obligation of such Purchaser, or (c)
an event that would result in the creation or imposition or any lien, charge, or encumbrance on any asset of such Purchaser or
would create any obligations for which such Purchaser would be liable, except as contemplated by this Agreement.

 

2C.Restricted
Securities.

 

●Purchasers
agree that the 2,000,000 of the common shares being acquired pursuant to this Agreement are restricted and may be sold, pledged,
assigned, hypothecated or otherwise transferred, with or without consideration (“Transfer”) only pursuant to an effective
registration statement under the Securities Act of 1933, as amended (the “Act”), or pursuant to an exemption from
registration under the Act.

 

●Purchasers
are aware of the restrictions on transferability of the 2,000,000 common shares, and further understand the certificates representing
these shares shall bear the following legend.

 

    	 	4	 

    	 	 	 

    

 

THESE
SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT”), IN RELIANCE UPON THE EXEMPTION FROM REGISTRATION PROVIDED IN SECTIONS 4(1) AND 4(2) AND REGULATION D UNDER
THE ACT. AS SUCH, THE PURCHASE OF THIS SECURITY WAS MADE WITH THE INTENT OF INVESTMENT AND NOT WITH A VIEW FOR DISTRIBUTION. THEREFORE,
ANY SUBSEQUENT TRANSFER OF THIS SECURITY OR ANY INTEREST THEREIN WILL BE UNLAWFUL UNLESS IT IS REGISTERED UNDER THE ACT OR UNLESS
AN EXEMPTION FROM REGISTRATION IS AVAILABLE.

 

●Purchasers
acknowledge that they have been encouraged to seek their own legal and financial counsel to assist in evaluating this purchase.
Purchasers acknowledge that the Sellers have given them and their attorneys access to all information relating to the business
of Company that they have requested. Purchasers acknowledge that they have sufficient business and financial experience, and knowledge
concerning the affairs and conditions of Company so that they can make a reasoned decision as to this purchase of Securities and
are capable of evaluating the merits and risks of the purchase.

 

2D.Exempt
(Un-restricted) Securities. The 500,000 of the common shares are exempt from registration pursuant to §1145 of the
United States Bankruptcy Code as decreed in the Company’s bankruptcy preceeding.

 

ARTICLE
III

OBLIGATIONS
BEFORE CLOSING

 

3.01Investigative
Rights. From the date of this Agreement until the date of closing, each party shall provide to the other party, and such
other party’s counsel, accountants, auditors, and other authorized representatives, full access during normal business hours
to all of each party’s properties, books, contracts, commitments, records and correspondence and communications with regulatory
agencies for the purpose of examining the same. Each party shall furnish the other party with all information concerning each
party’s affairs as the other party may reasonably request.

 

3.02Conduct
of Business. Prior to the closing, and except as contemplated by this Agreement, each party shall conduct its business
in the normal course, and shall not sell, pledge, or assign any assets, without the prior written approval of the other party,
except in the regular course of business. Except as contemplated by this Agreement, neither party to this Agreement shall issue
or sell any shares, stock, options or other securities, amend its Articles of Association, Articles of Incorporation or By-laws,
declare dividends, redeem or sell stock or other securities, incur additional or newly-funded material liabilities, acquire or
dispose of fixed assets, change senior management, change employment terms, enter into any material or long-term contract, guarantee
obligations of any third party, settle or discharge any balance sheet receivable for less than its stated amount, pay more on
any liability than its stated amount, or enter into any other transaction other than in the regular course of business, or enter
into any agreement or take any action that is likely to cause any of the representations and warranties of such party under this
Agreement not to be true and correct as of the Closing, or that is likely to affect the Closing.

 

    	 	5	 

    	 	 	 

    

 

ARTICLE
IV

CONDITIONS
PRECEDENT TO PERFORMANCE BY THE SELLERS

 

4.01Conditions.
The Sellers’ obligations hereunder shall be subject to the satisfaction, at or before the Closing, of all the conditions
set forth in this Article IV. The Purchasers may waive any or all of these conditions in whole or in part without prior notice;
provided, however, that no such waiver of a condition shall constitute a waiver by the Purchasers of any other condition or any
of the Purchasers’ other rights or remedies, at law or in equity, if Sellers shall be in default of any of its representations,
warranties, or covenants under this agreement.

 

4.02Accuracy
of Representations. Except as otherwise permitted by this Agreement, all representations and warranties by Purchasers
in this Agreement or in any written statement that shall be delivered to the Sellers by Purchasers under this Agreement shall
be true on and as of the Closing Date as though made at those times.

 

4.03Absence
of Litigation. No action, suit, or proceeding before any court or any governmental body or authority, pertaining to the
transaction contemplated by this agreement or to its consummation, shall have been instituted or threatened on or before the Closing.

 

ARTICLE
V

CONDITIONS
PRECEDENT TO PERFORMANCE BY PURCHASERS

 

5.01Conditions.
Purchasers’ obligations hereunder shall be subject to the satisfaction, at or before the Closing, of the conditions set
forth in this Article V. Sellers may waive any or all of these conditions in whole or in part without prior notice; provided,
however, that no such waiver of a condition shall constitute a waiver by Sellers of any other condition of or any of Sellers’
other rights or remedies, at law or in equity, if the Purchasers shall be in default of any of its representations, warranties,
or covenants under this Agreement.

 

5.02Accuracy
of Representations. Except as otherwise permitted by this Agreement, all representations and warranties by the Sellers
in this Agreement or in any written statement that shall be delivered to Purchasers by the Sellers under this Agreement shall
be true on and as of the Closing Date as though made at those times.

 

5.03Performance.
The Sellers shall have performed, satisfied, and complied with all covenants, agreements, and conditions required by this Agreement
to be performed or complied with by them, on or before the Closing. The Sellers shall have obtained all necessary consents and
approvals necessary to consummate the transactions contemplated hereby.

 

5.04Absence
of Litigation. No action, suit, or proceeding before any court or any governmental body or authority, pertaining to the
transaction contemplated by this Agreement or to its consummation, shall have been instituted or threatened on or before the closing.

 

5.05Other.
In addition to the other provisions of this Article V, Purchasers’ obligations hereunder shall be subject to the satisfaction,
at or before the Closing, of the following:

 

	 	●	Company
    will not have any assets or liabilities; and
	 	 	 
	 	●	Company
    will not have more than 2,630,000 outstanding shares of common stock. 

 

    	 	6	 

    	 	 	 

    

 

ARTICLE
VI

CLOSING

 

6.01Closing.
The Closing (the “Closing”) of this transaction will occur when all of the documents described in 6.02 below, have
been delivered to Escrow Agent, or other arrangements made and agreed to, and the consideration described in 1.01 above has been
delivered to the Escrow Agent, or other arrangements made and agreed to. Unless the Closing of this transaction takes place on
or before June 1, 2016 either party may terminate this Agreement, unless mutually extended by the parties with an additional deposit
of not less than Fifty Thousand Dollars ($50,000.) to extend period by an additional 30 days. If the documents described in Section
6.02 and the consideration described in Section 6.03 are received by the Escrow Agent prior to June 1, 2016 (or the extended deadline
as set forth herein), or if delivered after that date but prior to the time either party gives written notice to the Escrow Agent
of the party’s termination of this agreement, the Escrow Agent will:

 

	 	●	deliver
    the documents described in Section 6.02 to Purchasers; and
	 	 	 
	 	●	wire
    transfer the balance of the purchase price ($225,000) to the Sellers in accordance with written instructions provided to the
    Escrow Agent by Sellers agent, Masters.

 

6.02Documents
to be delivered by Sellers. The following documents, in form reasonably acceptable to Purchasers, shall be delivered by
the Sellers to the Escrow Agent:

 

(i)Certificate
of Incorporation and all amendments thereto;

 

(ii)Bylaws
and all amendments thereto;

 

(iii)Minutes
and Consents of shareholders;

 

(iv)
Minutes and Consents of the board of directors;

 

(v)List
of officers and directors;

 

(vi)Shareholder
list from the Transfer Agent;

 

(vii)True
and correct copies of all of the business records of Company, including but not limited to, correspondence files and agreements
and contracts;

 

(viii)Order
of the Bankruptcy Court confirming the Plan of Reorganization of the former parent of Company.

 

(ix)Letter
from FINRA approving a priced quotation for the common stock of Company.

 

(x)Stock
certificates along with stock powers with signature guarantees acceptable to the transfer agent, representing 2,000,000 shares
of the common stock of Company, endorsed in favor of the name or names as designated by Purchasers or left blank;

 

(xi)Warrant
certificates along with Warrant Assignments acceptable to the transfer agent, representing the rights to purchase 2,500,000 shares
of the common stock of Company, endorsed in favor of the name or names as designated by Purchasers or left blank;

 

    	 	7	 

    	 	 	 

    

 

(xii)The
appointment of George Wight as a director of Company;

 

(xiii)The
resignation of all current officers of Company;

 

(xiv)The
resignation of all current directors of Company;

 

(xv)Such
other documents of Company as may be reasonably requested by Purchasers, if available.

 

6.03Consideration
to be delivered by Purchasers. Purchasers will wire transfer a total of $250,000 to the trust account of the Escrow Agent,
form which $25,000 will be released to Sellers as a non-refundable deposit by May 9, 2016 and the balance of $225,000 will be
released to Sellers at Closing.

 

ARTICLE
VII

REMEDIES

 

7.01Arbitration.
Any dispute in any way involving this Agreement will be settled through binding arbitration in accordance with the Commercial
Arbitration Rules of the American Arbitration Association in San Diego, California.

 

7.02Costs.
If any legal action or any arbitration or other proceeding is brought for the enforcement of this Agreement, or because of an
alleged dispute, breach, default, or misrepresentation in connection with any of the provisions of this Agreement, the successful
or prevailing party or parties shall be entitled to recover reasonable attorney’s fees and other costs incurred in that
action or proceeding, in addition to any other relief to which it or they may be entitled.

 

7.03Termination.
In addition to the other remedies, the Sellers or Purchasers may, prior to May 10, 2016, terminate this Agreement, without liability
to the other party, and the Sellers or Purchasers may, on or after May 10, 2016 and release of the $25,000 deposit referenced
above, but prior to June 1, 2016, terminate this Agreement without further liability to the other party:

 

(i)
If the legality and sufficiency of all steps taken and to be taken by each party in carrying out this Agreement shall not have
been approved by the respective party’s counsel, which approval shall not be unreasonably withheld.

 

(iii)If
a party breaches any representation, warranty, covenant or obligation of such party set forth herein and such breach is not corrected
within ten days of receiving written notice from the other party of such breach.

 

7.04Effect
of Closing. All representations, warranties, covenants, and agreements of the parties contained in this Agreement, or
in any instrument, certificate, opinion, or other writing provided for in it, shall survive the closing of this Agreement and
shall remain in effect for a period of twelve months thereafter. In the event there is any material misrepresentation or warranty
by the Sellers, then Purchasers may rescind this Agreement during the 30 day period following the Closing of this Agreement.

 

    	 	8	 

    	 	 	 

    

 

ARTICLE
VIII

MISCELLANEOUS

 

8.01Captions
and Headings. The Article and paragraph headings throughout this Agreement are for convenience and reference only, and
shall in no way be deemed to define, limit, or add to the meaning of any provision of this Agreement.

 

8.02No
Oral Change. This Agreement and any provision hereof, may not be waived, changed, modified, or discharged orally, but
only by an agreement in writing signed by all parties hereto.

 

8.03Non-Waiver.
Except as otherwise expressly provided herein, no waiver of any covenant, condition, or provision of this Agreement shall be deemed
to have been made unless expressly in writing and signed by the party against whom such waiver is charged; and (i) the failure
of any party to insist in any one or more cases upon the performance of any of the provisions, covenants, or conditions of this
Agreement or to exercise any option herein contained shall not be construed as a waiver or relinquishment for the future of any
such provisions, covenants, or conditions, (ii) the acceptance of performance of anything required by this Agreement to be performed
with knowledge of the breach or failure of a covenant, condition, or provision hereof shall not be deemed a waiver of such breach
or failure, and (iii) no waiver by any party of one breach by another party shall be construed as a waiver with respect to any
other or subsequent breach.

 

8.04Time
of Essence. Time is of the essence of this Agreement and of each and every provision hereof.

 

8.05Entire
Agreement. This Agreement contains the entire Agreement and understanding between the parties hereto, and supersedes all
prior agreements, understandings and the letters of intent between the parties.

 

8.06Governing
Law. This Agreement and its application shall be governed by the laws of California.

 

8.07Counterparts.
This Agreement may be executed simultaneously in one or more counterparts, each of which shall be deemed an original, but all
of which together shall constitute one and the same instrument.

 

8.08Notices.
All notices, requests, demands, and other communications under this Agreement shall be in writing and shall be deemed to have
been duly given on the date of service if served personally on the party to whom notice is to be given, or on the third day after
mailing if mailed to the party to whom notice is to be given, by first class mail, registered or certified, postage prepaid, and
properly addressed as follows:

 

Sellers

Daniel
Masters

1752
Castellana Road

La
Jolla, California, 92037

Phone:
(858) 459-1133

masters@lawyer.com

 

Purchasers

Armada
Enterprises GP, LLC

Purchasers’
Representative

40
Wall Street, 28th Floor

New
York, NY 10005

Phone:
(646) 926-6206

Email:
milansaha.esq@gmail.com

 

8.09Binding
Effect. This Agreement will be binding upon the parties herein even though this Agreement may not be signed by all persons
whose names appear on the signature page of this Agreement. This Agreement shall inure to and be binding upon and be enforceable
against the respective successors of each of the parties to this Agreement. No party may assign or transfer any of its rights
or obligations hereunder, without the prior written consent of the other parties hereto. Nothing in this Agreement, express or
implied, shall give to any person other than the parties hereto any benefit or any legal or equitable right, remedy or claim under
this Agreement.

 

8.10Mutual
Cooperation. The parties hereto shall cooperate with each other to achieve the purpose of this Agreement, and shall execute
such other and further documents and take such other and further actions as may be necessary or convenient to effect the transaction
described herein. Neither party will intentionally take any action, or omit to take any action, which will cause a breach of such
party’s obligations pursuant to this Agreement.

 

8.11Expenses.
Each of the parties hereto agrees to pay all of its own expenses (including without limitation, attorneys’ and accountants’
fees) incurred in connection with this Agreement, the transactions contemplated herein and negotiations leading to the same and
the preparations made for carrying the same into effect.

 

REMAINDER
OF PAGE LEFT INTENTIONALLY BLANK

 

    	9

    	 

    

 

AGREED
TO AND ACCEPTED as of the date first above written.

 

	 	PURCHASERS
	 	 	 
	 	Armada
    Enterprises GP, LLC
	 	 	 
	 	By:	/s/
    George Wight
	 	 	George
    Wight, Managing General Partner
	 	 	Purchasers’
    Representative
	 	 	 
	 	SELLERS
	 	 	 
	 	 	/s/
    Daniel Masters
	 	 	Daniel
    Masters
	 	 	Sellers’
    Representative

 

    	10

    	 

    

 

EXHIBIT
A

 

Name
of Selling Shareholder

 

	Name	 	Shares
	Daniel
    Masters	 	2,000,000
    (Restricted)

 

Names
of Selling Warrant Holders

 

		 	Warrants	 
	Name	 	A	 	 	B	 	 	C	 	 	D	 	 	E	 
	Anthony Turnbull	 	 	100,000	 	 	 	100,000	 	 	 	100,000	 	 	 	100,000	 	 	 	100,000	 
	Frances Munro	 	 	100,000	 	 	 	100,000	 	 	 	100,000	 	 	 	100,000	 	 	 	100,000	 
	Gultan Balaban Umancan	 	 	100,000	 	 	 	100,000	 	 	 	100,000	 	 	 	100,000	 	 	 	100,000	 
	Joseph LeBlanc	 	 	100,000	 	 	 	100,000	 	 	 	100,000	 	 	 	100,000	 	 	 	100,000	 
	The Entrust Group	 	 	1,000	 	 	 	1,000	 	 	 	1,000	 	 	 	1,000	 	 	 	1,000	 

 

    	11

    	 

    

 

EXHIBIT
B

 

	Common
    Stock	 	 
	 	 	 
	Armada
    Enterprises GP, LLC	 	2,000,000
    (restricted)
	 	 	 
	Warrants	 	 
	 	 	 
	Armada
    Enterprises GP, LLC	 	2,005,000
    

 

    	12

    	 

    

 

Changes

 

None

 

Undisclosed
Liabilities

 

None

 

Patents,
Trademarks, Trade Names, and Copyrights

 

None

 

Contract
and Leases

 

None
other than transfer agent – Globex Stock Transfer

 

Insurance
Policies

 

None

 

Strategic
Cap Securities Purch Agree with Sellers 12-12-13

 

    	13

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