Document:

skky_ex101.htm

EXHIBIT 10.1

 

COMMON STOCK PURCHASE AGREEMENT

 

This Common Stock Purchase Agreement is made and entered into as of January 2, 2014, by and between Skkynet Cloud Systems, Inc., a Nevada corporation with an address at 20 Bay Street, Suite 1100, Toronto, Ontario, M5J 2N8, Canada (the “Company”), and __________________, with an address __________________ (the “Purchaser”).

 

Whereas, the Purchaser desires to purchase, and the Company desires to sell, an aggregate of ___________ shares (the “Shares”) of the Company’s common stock, par value $0.001 per share (the “Common Stock”), upon the terms and conditions hereof.

 

Now, Therefore, in consideration of the premises and the mutual agreements contained herein, the Purchaser and the Company hereby agree as follows:

 

	
Section 1.  

	
Sale and Purchase of Shares.

 

1.1           Sale and Purchase of Shares. Subject to the terms and conditions hereof, the Company will sell and deliver to the Purchaser and the Purchaser will purchase from the Company, on the Closing (as defined below), the Shares for a purchase price as set forth in Section 2.3 below.

 

	
Section 2.  

	
Closing Date; Delivery; Consideration.

 

2.1           Closing Date.  The closing of the purchase and sale of the Shares hereunder (the “Closing”) shall be held within one (1) business day immediately following the execution and delivery of this Agreement or unless otherwise agreed to by the Company and the Purchaser.

 

2.2           Delivery at Closing.  At the Closing, the Company will deliver to the Purchaser a stock certificate registered in the Purchaser’s name, representing the number of Shares to be purchased by the Purchaser hereunder, against payment of the consideration as indicated herein.

 

2.3           Consideration. As consideration for the purchase of the Shares as set forth in Section 1 of this Agreement, Purchaser shall pay Seller the amount of ________ U.S. Dollars ($________), to be paid in immediately available funds pursuant to the instructions of the Company.

 

	
Section 3.  

	
Representations and Warranties of Company

 

The Company hereby represents and warrants to the Purchaser as follows:

 

3.1           Valid Issuance of Shares. The Shares, when issued, sold and delivered in accordance with the terms and for the consideration set forth in this Agreement, will be validly issued, fully paid and nonassessable and free of restrictions on transfer other than restrictions described herein in this Agreement, applicable state and federal securities laws and liens or encumbrances created by or imposed by a Purchaser.  Assuming the accuracy of the representations of the Purchasers in Section 4 of this Agreement and subject to the filings described in Section 3.2 below, the Shares will be issued in compliance with all applicable federal and state securities laws.

 

  

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3.2           Government Consents and Filings.  Assuming the accuracy of the representations made by the Purchasers in Section 4 of this Agreement, no consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing with, any federal, state or local governmental authority is required on the part of the Company in connection with the consummation of the transactions contemplated by this Agreement, except for filings pursuant to Regulation D of the Securities Act of 1933, as amended (the “Securities Act”), and applicable state securities laws, which have been made or will be made in a timely manner.

 

	
Section 4.  

	
Representations and Warranties of Purchaser

 

The Purchaser hereby represents and warrants to the Company as follows:

 

4.1           Investment Experience.  The Purchaser has such knowledge and experience in financial and business matters so that the Purchaser is capable of evaluating the merits and risks of its investment in the Company, whether by reason of the Purchaser’s own business and financial expertise, the business and financial expertise of certain professional advisors unaffiliated with the Company with whom the Purchaser has consulted, or the Purchaser’s preexisting business relationship with the Company or any of its officers, directors or controlling persons.  The Purchaser acknowledges that the purchase of the Shares involves a high degree of risk, and that the Company’s future prospects are uncertain.  The Purchaser is able to hold the Shares indefinitely if required and is able to bear the loss of its entire investment in the Shares.

 

4.2           Investment Intent.  The Purchaser is acquiring the Shares for investment for its own account, not as a nominee or agent, and not with the view to, or for resale in connection with, any distribution thereof, and that the Purchaser has no present intention of selling, granting any participation in, or otherwise distributing the same.  The Purchaser further represents that it does not have any contract, undertaking, agreement or arrangement with any person or entity to sell, transfer or grant participation to such person or entity or to any third person or entity with respect to any of the Shares.

 

4.3           Restricted Securities.  The Purchaser understands that the Shares have 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 the Purchaser’s representations as expressed herein.  The Purchaser understands that the Shares are “restricted securities” under applicable U.S. federal and state securities laws and that, pursuant to these laws, the Purchaser must hold the Shares indefinitely unless they are registered with the Securities and Exchange Commission and qualified by state authorities, or an exemption from such registration and qualification requirements is available.  The Purchaser acknowledges that the Company has no obligation to register or qualify the Shares.  The Purchaser further acknowledges that if an exemption from registration or qualification is available, it may be conditioned on various requirements including, but not limited to, the time and manner of sale, the holding period for the Shares, and on requirements relating to the Company which are outside of the Purchaser’s control, and which the Company is under no obligation and may not be able to satisfy.

 

4.4           Access to Data.  The Purchaser is sufficiently aware of the Company’s business affairs and financial condition to reach an informed and knowledgeable decision to acquire the Shares.  The Purchaser has had opportunity to discuss the plans, operations and financial condition of the Company with its officers, directors or controlling persons, and has received all information the Purchaser deems appropriate for assessing the risk of an investment in the Shares.

 

4.5           Authorization.

 

a.           This Agreement, when executed and delivered by the Purchaser, will constitute valid and legally binding obligations of the Purchaser, enforceable in accordance with its terms except: (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally; and (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies or by general principles of equity.

 

  

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b.           The execution, delivery and performance by the Purchaser of this Agreement and compliance therewith and the purchase and sale of the Shares will not result in a violation of and will not conflict with, or result in a breach of, any of the terms of, or constitute a default under, any provision of state or Federal law to which Purchaser is subject, or any mortgage, indenture, agreement, instrument, judgment, decree, order, rule or regulation or other restriction to which the Purchaser is a party or by which the Purchaser is bound, or result in the creation of any mortgage, pledge, lien, encumbrance or charge upon any of the properties or assets of the Purchaser pursuant to any such term.

 

c.           The Purchaser has all necessary power and authority to enter into and to perform its obligations under this Agreement, and the execution, delivery and performance by the Purchaser of this Agreement have been duly authorized by all necessary action on the part of the Purchaser and its management.  No consent, approval, authorization, order, filing, registration or qualification of or with any court, governmental authority or third person is required to be obtained by the Purchaser in connection with the execution and delivery of this Agreement by the Purchaser or the performance of the Purchaser’s obligations hereunder.

 

4.6           Accredited Investor.  The Purchaser is an “accredited investor” within the meaning of Regulation D, Rule 501, promulgated by the Securities and Exchange Commission under the Securities Act and shall submit to the Company such further assurances of such status as may be reasonably requested by the Company.

 

	
Section 5.  

	
Miscellaneous

 

5.1           Governing Law; Construction.  This Agreement shall be governed in all respects by, and construed in accordance with, the laws of the State of Nevada, without regard to conflicts of laws principles thereof.  The parties hereto have participated jointly in the negotiation and drafting of this Agreement.  In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement.

 

5.2           Survival.  The terms, conditions and agreements made herein shall survive the Closing.

 

5.3           Successors and Assigns.  Except as otherwise expressly provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors and administrators of the parties hereto.

 

5.4           Entire Agreement; Amendment; Waiver. This Agreement constitutes the entire and full understanding and agreement between the parties with regard to the subject matter hereof.  Neither this Agreement nor any term hereof may be amended, waived, discharged or terminated, except by a written instrument signed by all the parties hereto.

 

5.5           Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together, shall constitute one instrument.

 

  

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In Witness Whereof, the undersigned have hereunto set their hands to this Common Stock Purchase Agreement as of the day and year first above written.

 

	 	COMPANY SKKYNET CLOUD SYSTEMS, INC. 	 
	 	 	 	 
	 	By:	 	 
	 	Name:	 	 
	 	Title:	 	 
	 	 	 	 
	 	PURCHASER	 
	 	 	 	 
	 	By:	 	 
	 	Name:	 	 

 

 

4EXHIBIT 10.1

 

FIRST
AMENDED SECURITIES EXCHANGE AGREEMENT

 

This
FIRST AMENDED SECURITIES EXCHANGE AGREEMENT (the “Agreement”), is made effective as of this 31st day of December
2013, by and among THE PAWS PET COMPANY, INC., an Illinois corporation (“PAWS”), having its principal place
of business at 855 El Camino Real, Suite 13A-184, Palo Alto, California 94301 and PHARMACY DEVELOPMENT CORP., a California
corporation (“PDC”), having its principal place of business at 18013 Sky Park Circle, Suite D, Irvine, CA 92614 (collectively
referred to hereinafter as the “Parties”).

 

RECITALS

 

WHEREAS,
PDC owns one hundred percent (100%) of the issued and outstanding equity interests of Mesa Pharmacy, Inc. (“MESA”)
(the “MESA Shares”); and

 

WHEREAS,
PDC wishes to exchange the MESA Shares for PAWS’ Series D Convertible Preferred Stock having the rights, preferences,
privileges and restrictions which are set forth in the Certificate of Designation attached as Exhibit A hereto (the “PAWS
Shares”) and PAWS wishes to issue and exchange the PAWS Shares for the MESA Shares, whereupon MESA will become a wholly-owned
subsidiary of PAWS, all on the terms and conditions set forth herein.

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the mutual covenants contained in this Agreement, and for other good and valuable consideration,
the receipt and adequacy are hereby acknowledged, PAWS and PDC agree as follows:

 

ARTICLE
I

EXCHANGE
OF SECURITIES

 

1.1
Exchange of Securities. Subject to the terms and conditions set forth in this Agreement, at Closing (as hereinafter defined),
PDC shall assign, transfer, convey and deliver the MESA Shares to PAWS in exchange for which PAWS shall issue and deliver five
hundred thousand (500,000) PAWS Series D Shares to PDC. The voting privilege attached to the Series D Shares shall not be effective
until and unless the requirements of Sections 1.4(b)(c) and (d) as well as those of Section 3.2 below are fulfilled.

 

1.2
Closing Date. Subject to the prior approval of the respective boards of directors of both PAWS and PDC, the closing of the
transactions contemplated by this Agreement (the “Closing”) shall take place on December 31, 2013 at 1:00 PM PST or
earlier by mutual agreement of the Parties. In the event that PAWS is unable to obtain a Site Permit, for any reason, this Agreement
will automatically cancel and the consideration exchanged in this Section 1.1 will be returned to the respective parties.

 

1.3
Deliveries by PDC. At the Closing, or as soon as is practicable thereafter, but in no event later than sixty (60) days following
the Closing, PDC shall deliver to PAWS:

 

	 	(a)	Certificates
    evidencing the MESA Shares, duly endorsed for transfer; and
	 	 	 
	 	(b)	A
    fully executed Royalty Agreement, a sample of which is attached hereto as Exhibit B.
	 	 	 
	 	(c)	Such
    other documents as may be necessary to effect the consummation of the transactions contemplated by this Agreement.

 

1.4
Deliveries by PAWS. At the Closing, or as soon as is practicable thereafter, but in no event later than sixty (60) days
following the Closing, PAWS shall deliver to PDC, or complete as applicable, the enumerated items listed below. In the
event that the enumerated items are not delivered or completed within sixty (60) days and PDC has not waived any such
breach pursuant to its rights under Section 5.4 below, this Agreement will automatically cancel and the consideration
exchanged in this Section 1.1 will be returned to the respective parties. The enumerated items to be delivered or
completed within sixty (60) days following the Closing are as follows:

 

	 	(a)	Certificates
    evidencing the PAWS Shares registered in the name of PDC; and

 

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	 	(b)	The
    completion of a shareholder vote by the written consent of no less than a two-thirds majority of shareholders elig ible to
    vote, ratifying all of the actions listed in Exhibit C, attached hereto and incorporated by reference.
	 	 	 
	 	(c)	The
    filing of a Preliminary and a Definitive Schedule 14C with the Securities and Exchange Commission (the “SEC”)
    pursuant to Rule 14C (17 CFR § 240.14c-1 through 17 CFR § 240.14c-101, inclusive) as promulgated by the SEC regarding
    notification of actions taken by written consent of the shareholders, specifically authorizing the Board of Directors to designate
    classes or series of preferred stock with voting and/or super majority voting rights.
	 	 	 
	 	(d)	The
    filing with the Secretary of State of Illinois, either Amended or Restated Articles of Incorporation, incorporating all of
    the actions listed in Exhibit C and no other changes not contemplated by this Agreement or pursuant to PDC’s waiver
    in keeping with the terms of Section 5.4 below.
	 	 	 
	 	(e)	Subsequent
    to the affirmative vote of at least two-thirds of the voting power of PAWS Series B Convertible Preferred Stock (Series B
    Stock) outstanding, PAWS shall file with the Secretary of State of Illinois, an Amended Certificate of Designation of Series
    B Stock, amending the text of Section 5.01(f) of Article V to read, “The number of shares of Common Stock to be issued
    pursuant to a Conversion Demand shall be six thousand, six hundred and thirty-four (6,634).”
	 	 	 
	 	(f)	The
    filing with the Secretary of State of Illinois, an Amended Certificate of Designation of Series C Convertible Preferred Stock
    (Series C Stock), reducing the number of shares of Series C Stock authorized to no more than one thousand and two thousand,
    five hundred (2,500) shares or the number of shares of Series C Stock outstanding, whichever is greater.
	 	 	 
	 	(g)	Such
    other documents as may be necessary to effect the consummation of the transactions contemplated by this Agreement.

 

ARTICLE
II

REPRESENTATIONS
AND WARRANTIES OF THE PARTIES

 

2.1
Representations and Warranties of PAWS. PAWS hereby represents and warrants to PDC as follows:

 

	 	(a)	Organization
    and Qualification. PAWS is a corporation, duly incorporated, validly existing and in good standing under the laws of the
    State of Illinois, with the requisite corporate power and authority to own and use its properties and assets and to carry
    on its business as currently conducted. PAWS is duly qualified to do business as a foreign corporation in each jurisdiction
    which the character of its business requires such qualification, except where the failure to be so qualified could not, individually
    or in the aggregate reasonably be expected to have or result in a material adverse effect on the business, prospects, operations
    or condition (financial or otherwise) of PAWS (a “PAWS Material Adverse Effect”).
	 	 	 
	 	(b)	Authorization;
    Enforcement. PAWS has the requisite corporate power and authority to enter into and to consummate the transactions contemplated
    by this Agreement and otherwise to carry out its obligations hereunder. The execution and delivery of this Agreement by PAWS
    and the consummation by it of the transactions contemplated hereby have been duly authorized by all necessary action on the
    part of PAWS and no further action is required by PAWS or its shareholders. This Agreement has been duly executed by PAWS
    and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of PAWS enforceable
    against PAWS in accordance with its terms. PAWS is not in violation of any of the provisions of its certificate of incorporation
    or bylaws.
	 	 	 
	 	(c)	Capitalization.
    The number of authorized, issued and outstanding shares of capital stock of PAWS is set forth on Schedule 2.1(c).
    No shares of capital stock of PAWS are entitled to preemptive or similar rights, nor is any holder of capital stock of PAWS
    entitled to statutory preemptive or similar rights arising out of any agreement or understanding with PAWS. Except as set
    forth in any document filed by PAWS under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)
    (the “SEC Documents”) or on Schedule 2.1(c) hereto, there are no outstanding options, warrants, rights
    to subscribe to, calls or commitments of any character whatsoever relating to securities, rights or obligations convertible
    into or exchangeable for, or giving any Person (as hereinafter defined) any right to subscribe for or acquire any shares of
    capital stock of PAWS, or contracts, commitments, understandings, or arrangements by which PAWS is or may become bound to
    issue additional shares of capital stock of PAWS, or securities or rights convertible or exchangeable into shares of capital
    stock of PAWS.

 

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	 	(d)	Issuance
    of the PAWS Shares. The PAWS Shares are duly authorized, and, when issued and paid for in accordance with the terms hereof,
    shall be duly and validly issued, fully paid and non-assessable, free and clear of all liens, encumbrances and rights of first
    refusal of any kind (collectively, “Liens”).
	 	 	 
	 	(e)	No
    Conflicts. The execution, delivery and performance of this Agreement by PAWS and the consummation by PAWS of the transactions
    contemplated hereby do not and will not (i) conflict with or violate any provision of PAWS’ certificate of incorporation
    or bylaws (each as amended through the date hereof); (ii) conflict with, or constitute a default (or an event which with notice
    or lapse of time, or both would become a default) under, or give to others any rights of termination, amendment, acceleration
    or cancellation (with or without notice, lapse of time, or both) of, any agreement, credit facility, indenture or instrument
    (evidencing a PAWS’ debt or otherwise) to which PAWS is a party or by which any property or asset of PAWS is bound or
    affected; or (iii) result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction
    of any court or governmental authority to which PAWS is subject (including federal and state securities laws and regulations),
    or by which any property or asset of PAWS is bound or affected, except in the case of each of clauses (ii) and (iii), as could
    not, individually or in the aggregate, reasonably be expected to have or result in a PAWS Material Adverse Effect. The business
    of PAWS is not being conducted in violation of any law, ordinance or regulation of any governmental authority, except for
    violations that, individually or in the aggregate, could reasonably be expected to not have or result in a PAWS Material Adverse
    Effect.
	 	 	 
	 	(f)	Filings,
    Consents and Approvals. PAWS is not required to obtain any consent, waiver, authorization or order of, give any notice
    to, or make any filing or registration with, any court or other U.S. or foreign federal, state, local or other governmental
    authority or other person in connection with the execution, delivery and performance by PAWS of this Agreement other than
    filings which may be required under federal and state securities laws.
	 	 	 
	 	(g)	Litigation;
    Proceedings. Except as set forth in the SEC Documents, there is no action, suit, notice of violation, proceeding or investigation
    pending or, to the knowledge of PAWS, threatened against or affecting PAWS or any of its properties before or by any court,
    governmental or administrative agency, or regulatory authority (U.S. federal, state, county, local or foreign) that (i) adversely
    affects or challenges the legality, validity or enforceability of this Agreement or (ii) could, individually or in the aggregate,
    reasonably be expected to have or result in a PAWS Material Adverse Effect.
	 	 	 
	 	(h)	No
    Default or Violation. Except as set forth in the SEC Documents or on Schedule 2.1(h) hereto, PAWS (i) is not in
    default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or
    both, would result in a default by PAWS), nor has PAWS received written notice of a claim that it is in default under or is
    in violation of any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by
    which it or any of its properties is bound, (ii) is not in violation of any order of any court, arbitrator or governmental
    body, or (iii) is not in violation of any statute, rule or regulation of any governmental authority, except as could not,
    individually or in the aggregate, reasonably be expected to have or result in a PAWS Material Adverse Effect.
	 	 	 
	 	(i)	Private
    Offering. Assuming the accuracy of the representations and warranties of PDC set forth in Section 2.3 of this Agreement,
    the offer, issuance and sale of the PAWS Shares to PDC as contemplated hereby is exempt from the registration requirements
    of the Securities Act of 1933, as amended (the “Securities Act”). Neither PAWS nor any person acting on PAWS’
    behalf has taken any action that could subject the issuance of the PAWS Shares to the registration requirements of the Securities
    Act.
	 	 	 
	 	(j)	Brokers
    Fees. No fees or commissions will be payable by PAWS to any broker, financial advisor or consultant, finder, placement
    agent, investment banker, or bank with respect to the transactions contemplated by this Agreement.
	 	 	 
	 	(k)	Solicitation
    Materials. Neither PAWS nor any person acting on PAWS’ behalf has solicited PDC to acquire the PAWS Shares by means
    of any form of general solicitation or advertising.

 

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	 	(l)	Patents
    and Trademarks. PAWS owns, or has rights to use, all patents, patent applications, trademarks, trademark applications,
    service marks, trade names, copyrights, licenses and rights (collectively, the “PAWS Intellectual Property Rights”)
    that are necessary or material for use in connection with its business, except where the failure to own or have the right
    to use a PAWS Intellectual Property Right could not reasonably be expected to have or result in a PAWS Material Adverse Effect.
    To the best knowledge of PAWS, all such Intellectual Property Rights are enforceable and there is no existing infringement
    by another person of any of the PAWS Intellectual Property Rights.
	 	 	 
	 	(m)	Registration
    Rights; Rights of Participation. Except as set forth in the SEC Documents, PAWS has not granted or agreed to grant to
    any person any rights (including “piggy-back” registration rights) to have any securities of PAWS registered with
    the SEC or any other governmental authority and no person has any right of first refusal, preemptive right, right of participation,
    or any similar right to participate in the transactions contemplated by this Agreement.
	 	 	 
	 	(n)	Regulatory
    Permits. PAWS possesses all certificates, authorizations and permits issued by the appropriate U.S. federal, state or
    foreign regulatory authorities necessary to conduct its business, except where the failure to possess such permits, individually
    or in the aggregate, could reasonably be expected to have or result in a PAWS Material Adverse Effect (“Material PAWS
    Permits”), and PAWS has not received any notice of proceedings relating to the revocation or modification of any Material
    PAWS Permit.
	 	 	 
	 	(o)	Title.
    PAWS does not own any real property. PAWS has good and marketable title to all personal property owned by them that is
    material to the business of PAWS, in each case free and clear of all Liens, except for Liens that do not materially affect
    the value of such property and do not interfere with the use made and proposed to be made of such property by PAWS. Any real
    property and facilities held under lease by PAWS is held under valid, subsisting and enforceable leases with such exceptions
    as are not material and do not interfere with the use made and proposed to be made of such property and buildings by PAWS.
	 	 	 
	 	(p)	Warrant
    Liability. PAWS represents and warrants that under the terms of its June 3, 2011 warrant (the “Socious Warrant”),
    held of record by Socious CG II, LTD. (“Socious”) that PAWS has no liability to issue any number of new warrants
    pursuant to the terms of the Socious Warrant (or any additional warrants that have been previously issued or are currently
    issuable thereunder) exercisable into a number of shares of Common Stock greater than ten million (10,000,000) shares (the
    “Maximum Warrant Liability”).

 

	 	(i)	In
    the event that PAWS has a liability to issue new warrants pursuant to Section 2 of the Socious Warrant exercisable into a
    number     of shares of Common Stock greater than the Maximum Warrant Liability, the Parties hereby agree that they will use
    their best     efforts to obtain a settlement with Socious, whereby any such warrant liability will be reduced to a number of
    shares equal     to or less than the Maximum Warrant Liability.
	 	 	 
	 	(ii)	In
    the event that PAWS has a liability to issue new warrants pursuant to Section 2 of the Socious Warrant exercisable into a
    number     of shares of Common Stock greater than the Maximum Warrant Liability and the Parties are unable to obtain a
    settlement as     described in Section 2.1(p)(i) above, within one hundred and eighty (180) days of the Closing, PAWS shall
    issue twenty million     (20,000,000) shares of Common Stock to PDC.

 

2.2
Representations and Warranties of PDC. PDC represents and warrants to PAWS as follows:

 

	 	(a)	Organization
    and Qualification. PDC is a corporation duly organized, validly existing and in good standing under the laws of the State
    of California with the requisite corporate power and authority to own and use its properties and assets and to carry on its
    business as currently conducted. PDC is not qualified to do business as a foreign corporation in any jurisdiction, there being
    no jurisdiction where the character of its business requires such qualification.
	 	 	 
	 	(b)	Authorization;
    Enforcement. PDC has the requisite power and authority to enter into and to consummate the transactions contemplated by
    this Agreement and otherwise to carry out its respective obligations hereunder. The execution and delivery of the Agreement
    by PDC and the consummation by it of the transactions contemplated hereby have been duly authorized by all necessary action
    on the part of PDC and no further action is required by PDC or its shareholders. The Agreement has been duly executed by PDC
    and, when delivered in accordance with the terms thereof, will constitute the valid and binding obligations of PDC enforceable
    against PDC in accordance with its terms. PDC is not in violation of any of the provisions of its certificate of incorporation
    or bylaws.

 

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	 	(c)	Capitalization.
    MESA has only the following classes of stock authorized:

 

	 	(i)	Common
    Stock: Ten Thousand (10,000) authorized, Ten Thousand (10,000) of which are issued and outstanding and owned by PDC. MESA
    Common Stock shares are not entitled to preemptive or similar rights, nor is any holder of MESA Common Stock shares entitled
    to statutory preemptive or similar rights arising out of any agreement or understanding with MESA. Any and all outstanding
    options, warrants, rights to subscribe to, calls, or commitments of any character whatsoever relating to securities, rights
    or obligations convertible into or exchangeable for, or giving any person any right to subscribe for or acquire Common Stock
    shares or other membership interests in MESA or contracts, commitments, understandings, or arrangements by which MESA is or
    may become bound to issue additional Common Stock shares or other membership interests in MESA, or securities or rights convertible
    or exchangeable into MESA Shares or other membership interests in PDC are listed in Schedule 2.2(c) hereto.

 

	 	(d)	Title
    to Interests. MESA Shares are duly authorized, validly issued, fully paid and non-assessable and are owned of record and
    beneficially by PDC, free and clear of all Liens.
	 	 	 
	 	(e)	No
    Conflicts. The execution, delivery and performance of this Agreement by PDC and the consummation by PDC of the transactions
    contemplated thereby do not and will not (i) conflict with or violate any provision of MESA’s formation or by-laws;
    (ii) conflict with, or constitute a default (or an event which with notice or lapse of time, or both would become a default)
    under, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse
    of time, or both) of, any agreement, credit facility, indenture or instrument (evidencing a debt or otherwise) to which PDC
    is a party or by which any property or asset of PDC is bound or affected; or (iii) result in a violation of any law, rule,
    regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which PDC is
    subject (including federal and state securities laws and regulations), or by which any property or asset of PDC is bound or
    affected, except in the case of each of clauses (ii) and (iii), as could not, individually or in the aggregate, reasonably
    be expected to have or result in a material adverse effect on the business, prospects, operations or condition (financial
    or otherwise) of MESA (an “MESA Material Adverse Effect”). The business of MESA is not being conducted in violation
    of any law, ordinance or regulation of any governmental authority, except for violations that, individually or in the aggregate,
    could not reasonably be expected to have or result in an MESA Material Adverse Effect.
	 	 	 
	 	(f)	Filings,
    Consents and Approvals. PDC is not required to obtain any consent, waiver, authorization or order of, give any notice
    to, or make any filing or registration with, any court or other or foreign federal, state, local or other governmental authority
    or other person in connection with the execution, delivery and performance by PDC of this Agreement other than as relates
    to the Site License defined in Section 1.2 above.
	 	 	 
	 	(g)	Litigation;
    Proceedings. Except as listed in listed in Schedule 2.2(g), there is no action, suit, notice of violation, proceeding
    or investigation pending or, to the knowledge of PDC, threatened against or affecting PDC or any of their respective properties
    before or by any court, governmental or administrative agency, or regulatory authority (U.S. federal, state, county, local
    or foreign) that (i) adversely affects or challenges the legality, validity or enforceability of the Agreement or the MESA
    Shares or (ii) could, individually or in the aggregate, reasonably be expected to have or result in an PDC Material Adverse
    Effect.
	 	 	 
	 	(h)	No
    Default or Violation. Except as listed in listed in Schedule 2.2(h), PDC is not (i) are in default under or in
    violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result
    in a default by), nor has PDC received notice of a claim that it or he is in default under or is in violation of any indenture,
    loan or credit agreement or any other agreement or instrument to which it, he or she is a party or by which it, he or she
    or any of its, his or her properties is bound, (ii) is in violation of any order of any court, arbitrator or governmental
    body, or (iii) is in violation of any statute, rule or regulation of any governmental authority, except as could not, individually
    or in the aggregate, reasonably be expected to have or result in an MESA Material Adverse Effect.

 

    	Page 5 of 10

    	 

    

 

	 	(i)	Financial
    Statements; Books and Records; Accounts Receivable.

 

	 	(i)	Within
    thirty (30) days of the Closing, PDC will deliver financial statements of MESA that have been prepared and audited in accordance
    with GAAP for the periods listed in Schedule 2.2(i) (the “MESA Financial Statements”). The MESA Financial
    Statements shall comply in all material respects with the applicable accounting requirements of the SEC.
	 	 	 
	 	(ii)	The
    books and records of MESA are complete and correct in all material respects and have been maintained in accordance with sound
    business practices consistent with industry standards.

 

	 	(j)	Absence
    of Certain Changes. Since the date of the latest balance sheet included in the PDC Financial Statements, PDC has been
    operated, in the ordinary course and consistent with past practice and, in any event, there has not been: (i) any material
    adverse change in the business, condition (financial or otherwise), operations, results of operations or prospects of MESA;
    (ii) any loss or, to the knowledge of PDC, threatened or contemplated loss, of business of any customers or suppliers of MESA
    which, individually or in the aggregate, could reasonably be expected to have an MESA Material Adverse Effect; (iii) any loss,
    damage, condemnation or destruction to any of the properties of MESA (whether or not covered by insurance); (iv) any borrowings
    by MESA other than trade payables arising in the ordinary course of the business and consistent with past practice; or (v)
    any sale, transfer or other disposition of any of the assets other than in the ordinary course of the business and consistent
    with past practice.
	 	 	 
	 	(k)	Contracts.
    Schedule 2.2(k) hereto sets forth a list of all contracts, agreements, leases, licenses, permits, commitments and arrangements
    of MESA (the “Contracts”). MESA is not alleged to be in default, nor to the knowledge of PDC is there any basis
    for MESA or any other party, under any of the Contracts and no event has occurred and no condition or state of facts exists
    which, with the passage of time or the giving of notice or both, would constitute such a default or breach by PDC, or any
    other party thereto. All of the Contracts are in full force and effect, will continue in full force and effect after the Closing
    without breaching the terms thereof or resulting in the forfeiture or impairment of any rights thereunder and without the
    consent, approval or act of, or making of any filing with, any third party. The Contracts are valid and enforceable against
    MESA and to the knowledge of PDC, the other parties thereto. PDC has not received any notice of the intention of any party
    to terminate, or substantially reduce the volume of its purchases, sales, products or advertisements under, any Contract.
    PDC is not currently in discussions regarding any amendment, modification, extension or termination of, and is not currently
    re-negotiating Contracts.
	 	 	 
	 	(l)	Employees.
    Schedule 2.2(1) hereto sets forth the name of each employee of MESA and a description of their compensation. PDC does
    not maintain any employee benefit plans.
	 	 	 
	 	(m)	Taxes.
    MESA has filed all tax returns of any kind required to be filed and has paid all taxes and other charges due or claimed
    to be due with respect to its taxing authorities. There are no Liens for taxes upon any of MESA’s assets and there are
    no claims asserted for taxes against MESA or PDC with respect to any of MESA’s assets, except for taxes due but not
    yet payable.
	 	 	 
	 	(n)	Brokers’
    Fees. No fees or commissions will be payable by PDC to any broker, financial advisor or consultant, finder, placement
    agent, investment banker, or bank with respect to the transactions contemplated by this Agreement.
	 	 	 
	 	(o)	Patents
    and Trademarks. MESA owns, or has rights to use, all patents, patent applications, trademarks, trademark applications,
    service marks, trade names, copyrights, licenses and rights (collectively, the “MESA Intellectual Property Rights”)
    that are necessary or material for use in connection with its business, and the failure to own or have the right to use and
    any MESA Intellectual Property Right, so could not reasonably be expected to have an MESA Material Adverse Effect. To the
    best knowledge of PDC, all such MESA Intellectual Property Rights are enforceable and there is no existing infringement by
    another person of any of the MESA Intellectual Property Rights.
	 	 	 
	 	(p)	Regulatory
    Permits. MESA possesses all certificates, authorizations and permits issued by the appropriate U.S. federal, state or
    foreign regulatory authorities necessary to conduct its business except where the failure to possess such permits, individually
    or in the aggregate, could reasonably be expected to have or result in an PDC Material Adverse Effect (“MESA Material
    Permits”), and PDC has not received any notice of proceedings relating to the revocation or modification of any MESA
    Material Permit.

 

    	Page 6 of 10

    	 

    

 

	 	(q)	Title.
    MESA does not own any real property and is not a party to any leases other than those listed in Schedule 2.2(q).
    PDC has good and marketable title to all real or personal property owned by it in each case free and clear of all liens, except
    for liens that do not materially affect the value of such property and do not interfere with the use made and proposed to
    be made of such property by PDC.
	 	 	 
	 	(r)	Disclosure.
    No representation or warranty of PDC or the Holders contained in this Agreement and no statement contained in any certificate,
    exhibit, schedule or other document furnished to PAWS in connection with this Agreement contains any untrue statement of a
    material fact, or omits to state a material fact necessary to make the statements herein or therein not misleading.

 

2.3
Investment Representations and Warranties of the PDC. PDC represents and warrants to PAWS as follows:

 

	 	(a)	Investment
    Intent. PDC is acquiring PAWS Shares for its own account. PDC is acquiring PAWS Shares for investment purposes only and
    not with a view to or for distributing or reselling the PAWS Shares or any part thereof or interest therein, without prejudice,
    however, to PDC’s right at all times to sell or otherwise dispose of all or any part of the PAWS Shares pursuant to
    an effective registration statement under the Securities Act and in compliance with applicable state securities laws or under
    an exemption from such registration.
	 	 	 
	 	(b)	Status.
    PDC meets the definition of an “accredited investor” as defined in Rule 501(a) of Regulation D under the Securities
    Act; or, in the event that PDC is not an accredited investor, PDC represents and warrants that it has such knowledge and experience
    in financial and business matters that it is capable of evaluating the merits and risks of the prospective investment, or
    PDC reasonably believes that it comes within this description.
	 	 	 
	 	(c)	Experience
    of PDC. PDC and/or its management has such knowledge, sophistication and experience in business and financial matters
    so as to be capable of evaluating the merits and risks of the prospective investment in the PAWS Shares, and has so evaluated
    the merits and risks of such investment.
	 	 	 
	 	(d)	Ability
    of PDC to Bear Risk of Investment. PDC is able to bear the economic risk of an investment in the PAWS Shares and, at the
    present time, is able to afford a complete loss of such investment.
	 	 	 
	 	(e)	Access
    to Information. PDC acknowledges that the it has been afforded (i) the opportunity to ask such questions as he has deemed
    necessary of, and to receive answers from, representatives of PAWS concerning the terms and conditions of the issuance of
    the PAWS Shares and the merits and risks of investing in the PAWS Shares; (ii) access to public information about PAWS and
    PAWS’ financial condition, results of operations, business, properties, management and prospects sufficient to enable
    PDC to evaluate its investment; and (iii) the opportunity to obtain such additional information that PAWS possesses or can
    acquire without unreasonable effort or expense that is necessary to make an informed investment decision with respect to the
    investment and to verify the accuracy and completeness of the public information contained herein.
	 	 	 
	 	(f)	General
    Solicitation. PDC is not acquiring the PAWS Shares as a result of or subsequent to any advertisement, article, notice
    or other communication regarding the PAWS Shares published in any newspaper, magazine or similar media, published or broadcast
    over television or radio or presented at any seminar.
	 	 	 
	 	(g)	Reliance.
    PDC understands and acknowledges that (i) the PAWS Shares are being offered and sold to the Holders without registration
    under the Securities Act and applicable state securities laws in a private placement that is exempt from the registration
    provisions of the Securities Act and applicable state securities laws and (ii) the availability of such exemption depends
    in part on, and PAWS will rely upon the accuracy and truthfulness of, the foregoing representations and the Holders hereby
    consents to such reliance.

 

    	Page 7 of 10

    	 

    

 

ARTICLE
III

OTHER
AGREEMENTS OF THE PARTIES

 

3.1
Transfer Restrictions.

 

	 	(a)	The
    PAWS Shares may only be disposed of pursuant to an effective registration statement under the Securities Act, or pursuant
    to an available exemption from or in a transaction not subject to the registration requirements of the Securities Act. In
    connection with any transfer of the PAWS Shares other than pursuant to an effective registration statement, PAWS may require
    the transferor thereof to provide to PAWS an opinion of counsel selected by the transferor, the form and substance of which
    opinion shall be reasonably satisfactory to PAWS, to the effect that such transfer does not require registration of such transferred
    securities under the Securities Act and applicable state securities laws.
	 	 	 
	 	(b)	PDC
    agrees to the imprinting, so long as is required under the Securities Act and the rules and regulations thereunder, of an
    appropriate restrictive legend on the certificates evidencing their respective Shares.

 

3.2
PDC hereby agrees to not distribute the PAWS Shares to its respective holders until such time as a permanent Site Permit has
been issued by the California State Board of Pharmacy listing PAWS as the owner of MESA. SEC Reporting Obligations. Pursuant
to Regulation S-K promulgated pursuant to the Securities Exchange Act of 1934, PAWS must file audited consolidated pro forma financial
statements within seventy-five (75) days of the Closing (the “PDC Audit”). In the event that the audited consolidated
pro forma financial statements cannot be completed within the time frame specified in Regulation S-K, this agreement shall automatically
terminate, the consideration exchanged pursuant to Section 1.1 above shall be returned to their respective owners and any monies
advanced to PDC shall be returned to PAWS within one hundred eighty (180) days of the termination.

 

3.3
Changes to Board of Directors. Upon completion of the PDC Audit and the issuance of permanent Site Permit by the California
State Board of Pharmacy, listing PAWS as the owner of MESA the existing members of PAWS’ board of directors (the “Board”)
shall appoint three (3) individuals designated by PDC to the Board.

 

3.4
Restrictions on Shareholder Actions. Other than as may be necessary to complete the delivery of the actions required pursuant
to Section 1.04 above, the Board of Directors of PAWS shall not call any annual, special or any action taken by written consent
of the shareholders prior to the installation of the three (3) individuals designated by PDC to the Board pursuant to Section
3.3 above, unless agreed to, in writing, by PDC.

 

ARTICLE
IV

INDEMNIFICATION

 

4.1
Survival. All of the provisions of this Agreement shall survive the Closing indefinitely, except that the representations
and warranties of PDC, on the one hand, and the representations and warranties of PAWS on the other hand, shall survive until
the first anniversary of the Closing Date.

 

4.2
Indemnity by PDC. PDC shall indemnify and hold PAWS and PAWS’ directors, officers and employees harmless against and
in respect of any and all damages, losses, claims, penalties, liabilities, costs and expenses (including, without limitation,
all fines, interest, reasonable and actual legal fees and expenses and amounts paid in settlement), that arise from or relate
or are attributable to (and without giving effect to any tax benefit to the indemnified party) (a) any misrepresentation or breach
of any warranty by PDC in the Agreement or (b) any breach of any covenant or agreement on the part of PDC pursuant to its obligations
under the Agreement.

 

4.3
Indemnity by PAWS. PAWS shall indemnify and hold PDC and PDC’s directors, officers and employees harmless against and
in respect of any and all damages, losses, claims, penalties, liabilities, costs and expenses (including, without limitation,
all fines, interest, reasonable and actual legal fees and expenses and amounts paid in settlement), that arise from or relate
or are attributable to (and without giving effect to any tax benefit to the indemnified party) (a) any misrepresentation or breach
of any warranty by PAWS in the Agreements or (b) any breach of any covenant or agreement on the part of PAWS pursuant to its obligations
under the Agreement.

 

    	Page 8 of 10

    	 

    

 

4.4
Notice to Indemnitor; Right of Parties to Defend. Promptly after the assertion of any claim by a third party or occurrence
of any event which may give rise to a claim for indemnification from an indemnifying party (“Indemnitor”) under this
Article IV, an indemnified party (“Indemnitee”) shall notify the Indemnitor in writing of such claim. The Indemnitor
shall have the right to assume the control and defense of any such action (including, but without limitation, tax audits), provided
that the Indemnitee may participate in the defense of such action subject to the Indemnitor’s reasonable direction and at
Indemnitee’s sole cost and expense. The party contesting any such claim shall be furnished all reasonable assistance in
connection therewith by the other party and be given full access to all information relevant thereto. In no event shall any such
claim be settled without the Indemnitor’s consent.

 

ARTICLE
V

MISCELLANEOUS

 

5.1
Fees and Expenses. Each party to this Agreement shall pay the fees and expenses of its or its advisers, counsel, accountants
and other experts, if any, and all other expenses incurred by such party incident to the negotiations, preparation, execution,
delivery and performance of this Agreement.

 

5.2
Entire Agreement; Amendments. This Agreement, together with the exhibits and schedules hereto, contains the entire understanding
of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written,
with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

 

5.3
Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be
in writing and shall be delivered (a) by hand; (b) by recognized overnight courier; or (c) by certified mail, return receipt requested,
postage-prepaid. All of the foregoing shall be deemed given and effective on (x) receipt, if delivered by hand; (y) the next business
day after deposit, if sent by nationally recognized overnight courier; or (c) the third (3rd) business day after deposit, if mailed.
The address for such notices and communications shall be as follows:

 

	 	If
    to PAWS:	855
    El Camino Real, Suite 13A-184
	 	 	Palo
    Alto, California 94301 

Attn: CEO
	 	 	 
	 	If
    to PDC:	18013
    Sky Park Circle, Suite D
	 	 	Irvine,
    California 92614
	 	 	Attn:
    CEO

 

or
such other address as maybe designated by party in writing hereafter, by notice (given in the same manner).

 

5.4
Amendments; Waivers. No provision of this Agreement may be waived or amended except in a written instrument signed, in the
case of an amendment, by all the parties; or, in the case of a waiver, by the party against whom enforcement of any such waiver
is sought. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed
to be a continuing waiver in the future or a waiver of any other provision, condition or requirement hereof, nor shall any delay
or omission of either party to exercise any right hereunder in any manner impair the exercise of any such right accruing to it
thereafter.

 

5.5
Headings. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed
to limit or affect ay of the provisions hereof.

 

5.6
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors
and permitted assigns. Neither party may assign this Agreement or any of the rights or obligations hereunder without the written
consent of the other party, which consent shall not unreasonably be withheld.

 

5.7
No Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors
and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

 

    	Page 9 of 10

    	 

    

 

5.8
Governing Law. This Agreement shall be governed by and construed and enforced in accordance with the internal laws of Nevada
without regard to the principles of conflicts of law thereof. Each party hereby irrevocably submits to the exclusive jurisdiction
of the state and federal courts sitting in Washoe County, Nevada, for the adjudication of any dispute hereunder or in connection
herewith or with any transaction contemplated hereby or discussed herein (including with respect to the interpretation or enforcement
of this Agreement), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that
it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper. Each party
hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding
by mailing a copy thereof to such party at the address in effect for notices to it under this Agreement and agrees that such service
shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit
in any way any right to serve process in any manner permitted by law.

 

5.9
Attorneys’ Fees. In any suit, action or proceeding brought with respect to interpretation or enforcement of this Agreement,
the prevailing party shall be entitled to recover attorneys’ fees and costs from the non-prevailing party at both the trial
and appellate levels.

 

5.10
Construction. In the construction of this Royalty Agreement, the rule of construction that a document is to be construed most
strictly against a party who prepared the same shall not be applied, it being agreed that all parties have participated in the
preparation of the final form of this Royalty Agreement.

 

5.11
Execution. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other
party, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered
by facsimile or .pdf transmission, such signature shall create a valid and binding obligation of the party executing (or on whose
behalf such signature is executed) the same with the same force and effect as if such facsimile signature page were an original
thereof.

 

5.12
Severability. In case any one or more of the provisions of this Agreement shall be invalid or unenforceable in any respect,
the validity and enforceability of the remaining terms and provisions of this Agreement shall not in any way be affecting or impaired
thereby and the parties will attempt to agree upon a valid and enforceable provision that shall be a reasonable substitute therefore,
and upon so agreeing, shall incorporate such substitute provision in this Agreement.

 

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

 

	 	THE
    PAWS PET COMPANY, INC.
	 	 	 
	 	By:	/s/
    Daniel Wiesel
	 	Name:	Daniel
    Wiesel
	 	Title:	Chief
    Executive Officer
	 	 	 
	 	PHARMACY
    DEVELOPMENT CORP.
	 	 	 
	 	By:	/s/
    Edward Kurtz
	 	Name:	Edward
    Kurtz
	 	Title:	Chief
    Operating Officer

 

    	Page 10 of 10

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