Document:

AMENDED AND RESTATED PROMISSORY NOTE

 

FOR VALUE RECEIVED, and subject to the
terms and conditions set forth herein, Armada Water Assets, Inc., a Nevada corporation (the "Borrower"), hereby
unconditionally promises to pay to the order of _____________ or his assigns (the "Noteholder", and together with
the Borrower, the "Parties"), the principal amount of ________________________ Dollars ($_________) (the "Loan"),
together with all accrued interest thereon, as provided in this Promissory Note (the "Note").

 

This Note is one of an aggregate principal
amount of $1,000,000 of notes of like tenor (the “Purchase Money Notes”) originally issued to the selling members
of Barstow Water Production Solutions, LLC (“Barstow”) in connection with the acquisition of all of the membership
interests of Barstow by the Borrower.

 

		1.	Definitions. Capitalized terms used herein shall
have the meanings set forth in this Section 1.

 

"Applicable Rate" means
the rate equal to ten percent (10%) per annum.

 

"Borrower" has the
meaning set forth in the introductory paragraph.

 

"Business Day" means
a day other than a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law to
close.

 

“Cash Flow” shall mean
Barstow’s net income, plus depreciation, amortization, and other non-cash charges, determined in accordance with GAAP.

 

"Default" means any
of the events specified in Section 8 which constitutes an Event of Default or which, upon the giving of notice, the lapse of time,
or both pursuant to Section 8 would, unless cured or waived, become an Event of Default.

 

"Default Rate" means,
at any time, the Applicable Rate plus 3%.

 

"Event of Default" has
the meaning set forth in Section 8.

 

"GAAP" means generally
accepted accounting principles in the United States of America as in effect from time to time.

 

"Governmental Authority" means
the government of any nation or any political subdivision thereof, whether at the national, state, territorial, provincial, municipal
or any other level, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of, or pertaining to, government (including
any supranational bodies such as the European Union or the European Central Bank).

 

    	 

    	 

    

 

"Law" as to any Person,
means any law (including common law), statute, ordinance, treaty, rule, regulation, policy or requirement of any Governmental Authority
and authoritative interpretations thereon, whether now or hereafter in effect, in each case, applicable to or binding on such Person
or any of its properties or to which such Person or any of its properties is subject.

 

"Lien" means any
mortgage, pledge, hypothecation, encumbrance, lien (statutory or other), charge or other security interest.

 

"Loan" has the meaning
set forth in the introductory paragraph.

 

"Material Adverse Effect" means
a material adverse effect on (a) the business, assets, properties, liabilities (actual or contingent), operations /or condition
(financial or otherwise) of the Borrower; (b) the validity or enforceability of the Note; (c) the rights or remedies of the Noteholder
hereunder; or (d) the Borrower's ability to perform any of its material obligations hereunder.

 

"Maturity Date" means
the earlier of (a) February 1, 2016 and (b) the date on which all amounts under this Note shall become due and payable pursuant
to Section 8.

 

"Note" has the meaning
set forth in the introductory paragraph.

 

"Noteholder" has
the meaning set forth in the introductory paragraph.

 

"Order" as to any
Person, means any order, decree, judgment, writ, injunction, settlement agreement, requirement or determination of an arbitrator
or a court or other Governmental Authority, in each case, applicable to or binding on such Person or any of its properties or to
which such Person or any of its properties is subject.

 

"Parties" has the
meaning set forth in the introductory paragraph.

 

"Person" means any
individual, corporation, limited liability company, trust, joint venture, association, company, limited or general partnership,
unincorporated organization, Governmental Authority or other entity.

 

    	2

    	 

    

 

		2.	Interest and Principal Payments; Mandatory Prepayments;
Optional Prepayments.

 

2.1    Interest and Principal Payments.
For so long any amounts remain outstanding under this Note, Borrower shall make quarterly payments of principal and interest, on
June 30, September 30, December 31 and March 31, in an amount equal to Noteholder’s Pro Rata Share of one quarter (25%) of
the Cash Flow during the prior fiscal quarter. The aggregate unpaid principal amount of the Loan, all accrued and unpaid interest
and all other amounts payable under this Note shall be due and payable on the Maturity Date. Noteholder’s Pro Rata Share
equals ten percent (10%) (i.e. the original face amount of this Note ($________ divided by the aggregate principal amount of all
of the Purchase Money Notes ($1,000,000.00).

 

2.2    Mandatory Prepayments. The
Borrower shall make mandatory prepayments equal to Noteholder’s Pro Rata Share of the proceeds of any subsequent debt or
equity (i) private placement financings after the date hereof by the Borrower provided aggregate cumulative proceeds thereof exceed
$4,000,000, up to an aggregate of $250,000 in mandatory prepayments to the holders of all Purchase Money Notes, and (ii) publicly-offered
financings after the date hereof by the Borrower provided aggregate cumulative proceeds thereof exceed $15,000,000, up to an aggregate
of $750,000 in mandatory prepayments to the holders of all Purchase Money Notes.

 

2.3    Optional Prepayment. The
Borrower may prepay the Loan in whole or in part at any time or from time to time without penalty or premium by paying the principal
amount to be prepaid together with accrued interest thereon to the date of prepayment. No prepaid amount may be reborrowed.

 

		3.	Interest.

 

3.1    Interest Rate. Except as
otherwise provided herein, the outstanding principal amount of Loan made hereunder shall bear interest at the Applicable Rate from
the date hereof is paid in full, whether at maturity, upon acceleration, by prepayment or otherwise.

 

3.2    Default Interest. If any
amount payable hereunder is not paid when due (without regard to any applicable grace periods), whether at stated maturity, by
acceleration or otherwise, such overdue amount shall bear interest at the Default Rate from the date of such non-payment until
such amount is paid in full.

 

3.3    Computation of Interest.
All computations of interest shall be made on the basis of a year of 360 days, and the actual number of days elapsed.

 

3.4    Interest Rate Limitation.
If at any time and for any reason whatsoever, the interest rate payable on the Loan shall exceed the maximum rate of interest permitted
to be charged by the Noteholder to the Borrower under applicable Law, such interest rate shall be reduced automatically to the
maximum rate of interest permitted to be charged under applicable Law/that portion of each sum paid attributable to that portion
of such interest rate that exceeds the maximum rate of interest permitted by applicable Law shall be deemed a voluntary prepayment
of principal.

 

    	3

    	 

    

 

		4.	Payment Mechanics.

 

4.1    Manner of Payments. All payments
of interest and principal shall be made in lawful money of the United States of America no later than 12:00 PM on the date on which
such payment is due by wire transfer of immediately available funds to the Noteholder's account at a bank specified by the Noteholder
in writing to the Borrower from time to time.

 

4.2    Application of Payments.
All payments made hereunder shall be applied first to the payment of any fees or charges outstanding hereunder, second to accrued
interest, and third to the payment of the principal amount outstanding under the Note.

 

4.3    Business Day Convention.
Whenever any payment to be made hereunder shall be due on a day that is not a Business Day, such payment shall be made on the next
succeeding Business Day and such extension will be taken into account in calculating the amount of interest payable under this
Note.

 

4.4    Evidence of Debt. The Noteholder
is authorized to record on the grid attached hereto as Exhibit A the Loan made to the Borrower and each payment or prepayment thereof.
The entries made by the Noteholder shall, to the extent permitted by applicable Law, be prima facie evidence of the existence and
amounts of the obligations of the Borrower therein recorded; provided, however, that the failure of the Noteholder to record such
payments or prepayments, or any inaccuracy therein, shall not in any manner affect the obligation of the Borrower to repay (with
applicable interest) the Loan in accordance with the terms of this Note.

 

4.5    Rescission of Payments. If
at any time any payment made by the Borrower under this Note is rescinded or must otherwise be restored or returned upon the insolvency,
bankruptcy or reorganization of the Borrower or otherwise, the Borrower's obligation to make such payment shall be reinstated as
though such payment had not been made.

 

5.    Representations
and Warranties. The Borrower hereby represents and warrants to the Noteholder on the date hereof as follows:

 

5.1    Existence; Compliance With Laws.
The Borrower is (a) a corporation duly incorporated, validly existing and in good standing under the laws of the state of its jurisdiction
of organization and has the requisite power and authority, and the legal right, to own, lease and operate its properties and assets
and to conduct its business as it is now being conducted and (b) in compliance with all Laws and Orders except to the extent that
the failure to comply therewith would not reasonably be expected to have a Material Adverse Effect.

 

5.2    Power and Authority. The
Borrower has the power and authority, and the legal right, to execute and deliver this Note and to perform its obligations hereunder.

 

    	4

    	 

    

 

5.3    Authorization; Execution and
Delivery. The execution and delivery of this Note by the Borrower and the performance of its obligations hereunder have been
duly authorized by all necessary corporate action in accordance with all applicable Laws. The Borrower has duly executed and delivered
this Note.

 

5.4    No Approvals. No consent
or authorization of, filing with, notice to or other act by, or in respect of, any Governmental Authority or any other Person is
required in order for the Borrower to execute, deliver, or perform any of its obligations under this Note.

 

5.5    No Violations. The execution
and delivery of this Note and the consummation by the Borrower of the transactions contemplated hereby do not and will not (a)
violate any provision of the Borrower's organizational documents; (b) violate any Law or Order applicable to the Borrower or by
which any of its properties or assets may be bound; or (c) constitute a default under any material agreement or contract by which
the Borrower may be bound.

 

5.6    Enforceability. The Note
is a valid, legal and binding obligation of the Borrower, enforceable against the Borrower in accordance with its terms.

 

5.7    No Litigation. No action,
suit, litigation, investigation or proceeding of, or before, any arbitrator or Governmental Authority is pending or, to the knowledge
of the Borrower, threatened by or against the Borrower or any of its property or assets (a) with respect to the Note or any of
the transactions contemplated hereby or (b) that could be expected to materially adversely affect the Borrower's financial condition
or the ability of the Borrower to perform its obligations under the Note.

 

6.    Affirmative
Covenants. Until all amounts outstanding in this Note have been paid in full, the Borrower shall:

 

6.1    Maintenance of Existence.
(a) Preserve, renew and maintain in full force and effect its corporate or organizational existence and (b) take all reasonable
action to maintain all rights, privileges and franchises necessary or desirable in the normal conduct of its business, except,
in each case, where the failure to do so could not reasonably be expected to have a Material Adverse Effect.

 

6.2    Compliance. Comply with (a)
all of the terms and provisions of its organizational documents; (b) its obligations under its material contracts and agreements;
and (c) all Laws and Orders applicable to it and its business, except where the failure to do so could not reasonably be expected
to have a Material Adverse Effect.

 

6.3    Payment Obligations. Pay,
discharge or otherwise satisfy at or before maturity or before they become delinquent, as the case may be, all its material obligations
of whatever nature, except where the amount or validity thereof is currently being contested in good faith by appropriate proceedings,
and reserves in conformity with GAAP with respect thereto have been provided on its books.

 

    	5

    	 

    

 

6.4    Notice of Events of Default.
As soon as possible and in any event within two 2 Business Days after it becomes aware that a Default or an Event of Default has
occurred, notify the Noteholder in writing of the nature and extent of such Default or Event of Default and the action, if any,
it has taken or proposes to take with respect to such Default or Event of Default.

 

6.5    Further Assurances. Upon
the request of the Noteholder, promptly execute and deliver such further instruments and do or cause to be done such further acts
as may be necessary or advisable to carry out the intent and purposes of this Note.

 

7.    Negative
Covenants. Until all amounts outstanding under this Note have been paid in full, the Borrower shall not:

 

7.1    No Dividends; No Redemption.
Declare any dividend, pay or set aside for payment any dividend or other distribution, in cash, stock, or other property, or make
any payment to any related parties, including to any preferred stockholders, as a dividend, redemption, or otherwise, other than
the payment of salaries in the ordinary course of business.

 

7.2    Sale of Assets, Dissolution,
Etc. Transfer, sell, assign, lease or otherwise dispose of any of its properties or assets, or any assets or properties necessary
or desirable for the proper conduct of its business, or transfer, sell, assign or otherwise dispose of any of its accounts, or
contract rights to any person or entity, or change the nature of its business, wind-up, liquidate or dissolve, or agree to any
of the foregoing, other than in the ordinary course of business.

 

8.    Events
of Default. The occurrence and continuance of any of the following shall constitute an Event of Default hereunder:

 

8.1    Failure to Pay. The Borrower
fails to pay (a) any principal amount of the Loan when due or (b) interest or any other amount when due and such failure continues
for 5 days after written notice to the Borrower.

 

8.2    Breach of Representations and
Warranties. Any representation or warranty made or deemed made by the Borrower to the Noteholder herein is incorrect in any
material respect on the date as of which such representation or warranty was made or deemed made.

 

8.3    Breach of Covenants. The
Borrower fails to observe or perform any material covenant, obligation, condition or agreement contained in this Note, other than
those specified in Section 8.1, and such failure continues for 30 days after written notice to the Borrower.

 

    	6

    	 

    

 

8.4    Cross-Defaults. The Borrower
fails to pay when due any of its indebtedness (other than trade payables arising in the ordinary course of business) or any interest
or premium thereon when due (whether by scheduled maturity, acceleration, demand or otherwise), or breaches in any material respect
the Membership Interest Purchase Agreement of even date herewith between the Borrower and the original Noteholder and such failure
continues after the applicable grace period, if any, specified in the agreement or instrument relating to such Debt or Membership
Interest Purchase Agreement.

 

8.5    Bankruptcy.  

 

(a)    the Borrower commences any case, proceeding
or other action (i) under any existing or future Law relating to bankruptcy, insolvency, reorganization, or other relief of debtors,
seeking to have an order for relief entered with respect to it, or seeking to adjudicate it as bankrupt or insolvent, or seeking
reorganization, arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief with respect to it or
its debts or (ii) seeking appointment of a receiver, trustee, custodian, conservator or other similar official for it or for all
or any substantial part of its assets, or the Borrower makes a general assignment for the benefit of its creditors;

 

(b)    there is commenced against the Borrower
any case, proceeding or other action of a nature referred to in Section 8.5(a) above which (i) results in the entry of an order
for relief or any such adjudication or appointment or (ii) remains undismissed, undischarged or unbonded for a period of 30 days;

 

(c)    there is commenced against the Borrower
any case, proceeding or other action seeking issuance of a warrant of attachment, execution or similar process against all or any
substantial part of its assets which results in the entry of an order for any such relief which has not been vacated, discharged,
or stayed or bonded pending appeal within 30 days from the entry thereof;

 

(d)    the Borrower takes any action in furtherance
of, or indicating its consent to, approval of, or acquiescence in, any of the acts set forth in Section 8.5(a), Section 8.5(b)
or Section 8.5(c) above; or

 

(e)    the Borrower is generally not, or
shall be unable to, or admits in writing its inability to, pay its debts as they become due.

 

8.6    Judgments. One or more judgments
or decrees shall be entered against the Borrower and all of such judgments or decrees shall not have been vacated, discharged,
stayed or bonded pending appeal within 30 days from the entry thereof.

 

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9.    Remedies.
Upon the occurrence of any Event of Default and at any time thereafter during the continuance of such Event of Default, the Noteholder
may at its option, by written notice to the Borrower (a) declare the entire principal amount of this Note, together with all accrued
interest thereon and all other amounts payable hereunder, immediately due and payable; and/or (b) exercise any or all of its rights,
powers or remedies under applicable Law; provided, however that, if an Event of Default described in Section 8.5 shall occur,
the principal of and accrued interest on the Loan shall become immediately due and payable without any notice, declaration or other
act on the part of the Noteholder.

 

10.  Miscellaneous.

 

		10.1	Notices.

 

(a)    All notices, requests or other communications
required or permitted to be delivered hereunder shall be delivered in writing, in each case to the address specified below or to
such other address as such Party may from time to time specify in writing in compliance with this provision:

 

		(i)	If to the Borrower:

Armada Water Assets, Inc.

1716 E. Lincoln Avenue

Fort Collins, CO 80524

 

		(ii)	If to the Noteholder:

_____________________

_____________________

_____________________

 

(b)    Notices if (i) mailed by certified
or registered mail or sent by hand or overnight courier service shall be deemed to have been given when received; (ii) sent by
facsimile during the recipient's normal business hours shall be deemed to have been given when sent (and if sent after normal business
hours shall be deemed to have been given at the opening of the recipient's business on the next business day); and (iii) sent by
e-mail shall be deemed received upon the sender's receipt of an acknowledgment from the intended recipient (such as by the "return
receipt requested" function, as available, return e-mail or other written acknowledgment).

 

10.2             Expenses. The Borrower shall
reimburse the Noteholder on demand for all reasonable out-of-pocket costs, expenses and fees (including reasonable expenses and
fees of its counsel incurred by the Noteholder in connection with the transactions contemplated hereby including the negotiation,
documentation and execution of this Note and the enforcement of the Noteholder's rights hereunder.

 

10.3             Governing Law. This Note
and any claim, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or
relating to this Note and the transactions contemplated hereby shall be governed by the laws of the State of New York.

 

    	8

    	 

    

 

10.4             Submission to Jurisdiction.

 

(a)    The Borrower hereby irrevocably and
unconditionally (i) agrees that any legal action, suit or proceeding arising out of or relating to this Note may be brought in
the courts of the State of New York or of the United States of America for the Southern District of New York and (ii) submits to
the jurisdiction of any such court in any such action, suit or proceeding. Final judgment against the Borrower in any action, suit
or proceeding shall be conclusive and may be enforced in any other jurisdiction by suit on the judgment.

 

(b)    Nothing in this Section 10.4 shall
affect the right of the Noteholder to (i) commence legal proceedings or otherwise sue the Borrower in any other court having jurisdiction
over the Borrower or (ii) serve process upon the Borrower in any manner authorized by the laws of any such jurisdiction.

 

10.5             Venue. The Borrower irrevocably
and unconditionally waives, to the fullest extent permitted by applicable law, any objection that it may now or hereafter have
to the laying of venue of any action or proceeding arising out of or relating to this Note in any court referred to in Section
10.4 and the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

 

10.6             Waiver of Jury Trial. THE
BORROWER HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY
IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY RELATING TO THIS NOTE OR THE TRANSACTIONS CONTEMPLATED HEREBY WHETHER BASED ON CONTRACT,
TORT OR ANY OTHER THEORY.

 

10.7             Counterparts; Integration; Effectiveness.
This Note and any amendments, waivers, consents or supplements hereto may be executed in counterparts, each of which shall constitute
an original, but all taken together shall constitute a single contract. This Note constitutes the entire contract between the Parties
with respect to the subject matter hereof and supersede all previous agreements and understandings, oral or written, with respect
thereto. Delivery of an executed counterpart of a signature page to this Note by facsimile or in electronic (i.e., "pdf"
or "tif") format shall be effective as delivery of a manually executed counterpart of this Note.

 

10.8             Successors and Assigns.
This Note may be assigned or transferred by the Noteholder to any Person. The Borrower may not assign or transfer this Note or
any of its rights hereunder without the prior written consent of the Noteholder. This Note shall inure to the benefit of, and be
binding upon, the Parties and their permitted assigns.

 

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10.9             Waiver of Notice. The Borrower
hereby waives demand for payment, presentment for payment, protest, notice of payment, notice of dishonor, notice of nonpayment,
notice of acceleration of maturity and diligence in taking any action to collect sums owing hereunder.

 

10.10           Interpretation. For purposes
of this Note (a) the words "include," "includes" and "including" shall be deemed to be followed by
the words "without limitation"; (b) the word "or" is not exclusive; and (c) the words "herein," "hereof,"
"hereby," "hereto" and "hereunder" refer to this Note as a whole. The definitions given for any defined
terms in this Note shall apply equally to both the singular and plural forms of the terms defined. Whenever the context may require,
any pronoun shall include the corresponding masculine, feminine and neuter forms. Unless the context otherwise requires, references
herein: (x) to Schedules, Exhibits and Sections mean the Schedules, Exhibits and Sections of this Note; (y) to an agreement, instrument
or other document means such agreement, instrument or other document as amended, supplemented and modified from time to time to
the extent permitted by the provisions thereof; and (z) to a statute means such statute as amended from time to time and includes
any successor legislation thereto and any regulations promulgated thereunder. This Note shall be construed without regard to any
presumption or rule requiring construction or interpretation against the party drafting an instrument or causing any instrument
to be drafted.

 

10.11           Amended and Restated Note;
Amendments and Waivers. This Amended and Restated Note supersedes the original Note issued in connection with the closing of
the Barstow acquisition and the Holder agrees to promptly surrender such original note. By execution of a counterpart of this Note,
the Holder, on behalf of itself and its successors and assigns, hereby releases the Borrower from the terms and conditions of the
original Note. No term of this Note may be waived, modified or amended except by an instrument in writing signed by both of the
parties hereto. Any waiver of the terms hereof shall be effective only in the specific instance and for the specific purpose given.

 

10.12           Headings. The headings
of the various Sections and subsections herein are for reference only and shall not define, modify, expand or limit any of the
terms or provisions hereof.

 

10.13           No Waiver; Cumulative Remedies.
No failure to exercise and no delay in exercising on the part of the Noteholder, of any right, remedy, power or privilege hereunder
shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder
preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies,
powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided
by law.

 

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10.14           Electronic Execution. The
words "execution," "signed," "signature," and words of similar import in the Note shall be deemed
to include electronic or digital signatures or the keeping of records in electronic form, each of which shall be of the same effect,
validity and enforceability as manually executed signatures or a paper-based recordkeeping system, as the case may be, to the extent
and as provided for under applicable law, including the Electronic Signatures in Global and National Commerce Act of 2000 (15 USC
§ 7001 et seq.), the Electronic Signatures and Records Act of 1999 (N.Y. State Tech. Law §§ 301-309), or any other
similar state laws based on the Uniform Electronic Transactions Act.

 

10.15           Severability. If any term
or provision of this Note is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability
shall not affect any other term or provision of this Note or invalidate or render unenforceable such term or provision in any other
jurisdiction. Upon such determination that any term or other provision is invalid, illegal or unenforceable, the parties hereto
shall negotiate in good faith to modify this Note so as to effect the original intent of the parties as closely as possible in
a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the
greatest extent possible.

 

10.16           Counterparts;. This Note
and any amendments, waivers, consents or supplements hereto may be executed in counterparts, each of which shall constitute an
original, but all taken together shall constitute a single contract. This Note constitutes the entire contract between the Parties
with respect to the subject matter hereof and supersede all previous agreements and understandings, oral or written, with respect
thereto.

 

[Signatures
pages contained on following page]

 

    	11

    	 

    

 

IN WITNESS WHEREOF, the Borrower has executed
this Note as of February 1, 2013.

 

	 	ARMADA WATER ASSETS, INC.	 
	 	 	 
	 	By	 	 
	 	 	 
	 	Name:	 
	 	Title:	 

 

	 	FOR THE PURPOSES OF ACCEPTING
	 	THE PROVISIONS OF SECTION 10.11
	 	 
	 	 

 

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Exhibit
A

 

Advances
and Payments on the Loan

 

	Date of

Advance	Amount of

Advance	Amount of

Principal Paid	Unpaid

Principal

Amount of

Note	Name of

Person Making

the Notation
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

    	13Final Execution Version

 

AGREEMENT AND PLAN OF MERGER

 

By and Among

 

ARMADA WATER ASSETS, INC.

 

and 

 

DAC CORP.

 

and

 

DEVONIAN ACQUISITION CORPORATION

 

and

 

THE PRINCIPAL STOCKHOLDERS OF

 

DEVONIAN ACQUISITION CORPORATION

 

and

 

AUSTIN LEASING PARTNERS, LLC

 

(Stockholders’ Agent)

 

Dated: March 26, 2013

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	ARTICLE I MERGER OF MERGER SUB WITH AND INTO DEVONIAN AND RELATED MATTERS	1
	 	 	 
	1.1	THE MERGER.	1
	 	 	 
	1.2	CONVERSION OF STOCK.	2
	 	 	 
	1.3	MERGER CONSIDERATION.	3
	 	 	 
	1.4	TREATMENT OF DEVONIAN NOTES.	5
	 	 	 
	1.5	DISSENTERS’ RIGHTS.	5
	 	 	 
	1.6	BOARD AND STOCKHOLDER APPROVAL.	5
	 	 	 
	1.7	NO FURTHER RIGHTS OR TRANSFERS.	6
	 	 	 
	1.8	SUBSEQUENT ACTIONS	6
	 	 	 
	ARTICLE II THE CLOSING	6
	 	 	 
	2.1	CLOSING DATE.	6
	 	 	 
	2.2	CLOSING TRANSACTIONS.	7
	 	 	 
	ARTICLE III REPRESENTATIONS AND WARRANTIES	9
	 	 	 
	3.1	REPRESENTATIONS AND WARRANTIES OF THE DEVONIAN STOCKHOLDERS.	9
	 	 	 
	3.2	REPRESENTATIONS AND WARRANTIES OF DEVONIAN AND THE PRINCIPAL STOCKHOLDERS.	11
	 	 	 
	3.3	REPRESENTATIONS AND WARRANTIES OF ACQUIROR AND MERGER SUB.	13
	 	 	 
	ARTICLE IV COVENANTS OF THE PARTIES PENDING CLOSING	15
	 	 	 
	4.1	ACCESS TO INFORMATION.	15
	 	 	 
	4.2	INTERIM OPERATIONS.	16
	 	 	 
	4.3	CONSENTS.	18
	 	 	 
	4.4	FILINGS.	18
	 	 	 
	4.5	ALL REASONABLE EFFORTS.	18
	 	 	 
	4.6	FURTHER MUTUAL COVENANTS.	18
	 	 	 
	4.7	NOTIFICATION OF CERTAIN MATTERS.	18
	 	 	 
	4.8	EXPENSES.	19
	 	 	 
	4.9	DOCUMENTS AT CLOSING.	19
	 	 	 
	4.10	EXCLUSIVE DEALING.	19
	 	 	 
	ARTICLE V CONDITIONS TO CONSUMMATION OF THE MERGER	19

 

 

    	i

    	 

    

 

	5.1	CONDITIONS TO OBLIGATIONS OF DEVONIAN AND THE principal STOCKHOLDERS.	19
	 	 	 
	5.2	CONDITIONS TO ACQUIROR’S AND MERGER SUB’S OBLIGATIONS.	20
	 	 	 
	ARTICLE VI INDEMNIFICATION; SURVIVAL OF REPRESENTATIONS AND WARRANTIES AND CERTAIN COVENANTS	21
	 	 	 
	6.1	INDEMNIFICATION.	21
	 	 	 
	6.2	EXPIRATION OF REPRESENTATIONS, WARRANTIES AND COVENANTS.	22
	 	 	 
	6.3	METHODS OF ASSERTING CLAIMS FOR INDEMNIFICATION.	22
	 	 	 
	6.4	NO RIGHT OF CONTRIBUTION.	23
	 	 	 
	ARTICLE VII ADDITIONAL AGREEMENTS OF THE PARTIES	23
	 	 	 
	7.1	CONFIDENTIALITY.	23
	 	 	 
	7.2	INJUNCTIVE RELIEF.	25
	 	 	 
	7.3	FURTHER ACTS AND ASSURANCES.	25
	 	 	 
	7.4	PUBLIC ANNOUNCEMENTS.	25
	 	 	 
	7.5	TAX MATTERS.	26
	 	 	 
	ARTICLE VIII TERMINATION	26
	 	 	 
	8.1	TERMINATION EVENTS.	26
	 	 	 
	8.2	AUTOMATIC TERMINATION.	26
	 	 	 
	8.3	EFFECT OF TERMINATION.	27
	 	 	 
	8.4	EXTENSION; WAIVER.	27
	 	 	 
	8.5	AMENDMENT AND MODIFICATION.	27
	 	 	 
	ARTICLE IX MISCELLANEOUS	27
	 	 	 
	9.1	STOCKHOLDERS’ AGENT.	27
	 	 	 
	9.2	NOTICES.	30
	 	 	 
	9.3	ENTIRE AGREEMENT; ASSIGNMENT.	31
	 	 	 
	9.4	WAIVER OF CONFLICTS.	31
	 	 	 
	9.5	BINDING EFFECT; BENEFIT.	31
	 	 	 
	9.6	HEADINGS.	31
	 	 	 
	9.7	COUNTERPARTS.	31
	 	 	 
	9.8	GOVERNING LAW.	31
	 	 	 
	9.9	SEVERABILITY.	31
	 	 	 
	9.10	RELEASE AND DISCHARGE.	32
	 	 	 
	9.11	CERTAIN DEFINITIONS.	32

 

 

    	ii

    	 

    

 

EXHIBITS AND SCHEDULES

EXHIBITS

 

	A	Form of Articles of Merger
	B	Form of Acquiror Notes
	C	Custody and Power of Attorney Agreement

 

    	iii

    	 

    

 

AGREEMENT AND PLAN OF MERGER

 

THIS AGREEMENT AND
PLAN OF MERGER (the “Agreement”), is made and entered into as of March 26, 2013, by and among Armada Water Assets,
Inc., a Nevada corporation (“Acquiror”), DAC CORP., a Nevada corporation and wholly-owned subsidiary of Acquiror (“Merger
Sub”), Devonian Acquisition Corporation, a Nevada corporation (“Devonian ”),
Austin Leasing Partners, LLC, a Delaware limited liability company (“Austin Leasing”), Austin Water Holdings, LLC,
a Delaware limited liability company (“Austin Water”), Don L. Washington (“Washington”), Arnaldo Huerta
(“Huerta”), and Thomas R. Brown, Jr. (“Brown”) and Austin Leasing, as stockholders’ agent (the “Stockholders’
Agent”, and collectively with Austin Leasing, Austin Water, Washington, Huerta and Brown, the “Principal Stockholders”).
The Acquiror, Devonian, the Principal Stockholders and the Stockholders’ Agent are referred to herein individually as a “Party”
and collectively as the “Parties”.

 

RECITALS

 

WHEREAS, Acquiror and
Devonian have determined that it is in the best interests of their respective stockholders for Devonian to merge with and into
Merger Sub upon the terms and subject to the conditions set forth in this Agreement; and

 

WHEREAS, Devonian wishes
to have such transaction qualify as a reorganization under Section 368 of the Internal Revenue Code of 1986, as amended (the "Code");
and

 

WHEREAS, the respective
Boards of Directors of Acquiror and Devonian and those Principal Stockholders, who collectively own over fifty percent (50%) of
the outstanding voting shares of Devonian, each approved this Agreement and the consummation of the transactions contemplated hereby
and approved the execution and delivery of this Agreement; and

 

WHEREAS, the Stockholders’
Agent is being appointed by Devonian and the Principal Stockholders to act as the sole and exclusive agent, representative and
attorney-in-fact on behalf of the Principal Stockholders under this Agreement before and after the closing of the transactions
contemplated hereby, and will, pursuant to the Custody and Power of Attorney Agreement, be appointed as the exclusive agent, representative
and attorney-in-fact on behalf of all other Devonian Stockholders.

 

NOW, THEREFORE, in
consideration of the foregoing premises and representations, warranties and agreements contained herein, and for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

ARTICLE
I

MERGER OF MERGER SUB WITH AND INTO DEVONIAN AND RELATED MATTERS

 

		1.1	THE MERGER.

 

(a)          Upon
the terms and conditions of this Agreement, at the “Effective Time” (as defined herein), Merger Sub shall be merged
with and into Devonian (the “Merger”) in accordance with the provisions of the Nevada Revised Statutes (the “NRS”)
and the separate corporate existence of Merger Sub shall cease, and Devonian shall continue its corporate existence as the surviving
corporation under the laws of the State of Nevada (the “Surviving Corporation”) as a wholly-owned subsidiary of Acquiror.

 

    	1

    	 

    

 

(b)          The
Merger shall become effective as of the filing of a certificate of merger (the “Articles of Merger”) with the Secretary
of State of the State of Nevada, in accordance with the provisions of Section 92A.240 of the NRS and the confirmation by the Articles
of Merger that the Merger is effective as of such filing date. The date and time when the Merger shall become effective is referred
to herein as the “Effective Time.”

 

(c)          At
the Effective Time:

 

(i)          Devonian
shall continue its existence under the laws of the State of Nevada as the Surviving Corporation;

 

(ii)         the
separate corporate existence of Merger Sub shall cease;

 

(iii)        all
rights, title and interests to all assets, whether tangible or intangible and any property or property rights owned by Merger Sub
shall be allocated to and vested in Devonian as the Surviving Corporation without reversion or impairment, without further act
or deed, and without any transfer or assignment having occurred, but subject to any existing Encumbrances (defined herein) of any
kind thereon, and all liabilities and obligations of Merger Sub shall be allocated to Devonian as the Surviving Corporation, which
shall be the primary obligor therefor and, except as otherwise provided by law or contract, no other party to the Merger, other
than Devonian as the Surviving Corporation, shall be liable therefor;

 

(iv)        the
articles of incorporation of the Surviving Corporation shall be the articles of incorporation of Devonian as in effect immediately
prior to the consummation of the Merger;

 

(v)         Each
of Acquiror, Merger Sub and Devonian shall execute and deliver, and file or cause to be filed with the Secretary of State of the
State of Nevada, the Articles of Merger in the form attached as Exhibit A hereto, with such amendments thereto as the parties hereto
shall deem mutually acceptable.

 

(vi)        the
bylaws of the Surviving Corporation shall be the bylaws of Acquiror as in effect immediately prior to the consummation of the Merger,
and shall continue in full force and effect until thereafter amended as provided by law and such bylaws; and

 

(vii)       the
officers and directors of Devonian shall consist of those individuals identified on Schedule 1.1(c)(vii), and such persons shall
serve in such positions for their respective terms provided by law or in the bylaws of the Surviving Corporation and until their
respective successors are elected and qualified.

 

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		1.2	CONVERSION OF STOCK.

 

(a)          At
the Effective Time:

 

(i)          the
shares representing 100% of the issued and outstanding common stock of Devonian, par value $0.0001 per share (the “Devonian
Common Stock”) and the shares representing 100% of the issued and outstanding Series A Preferred Stock of Devonian, par value
$0.0001 per share (the “Devonian Preferred Stock”)(together with the Devonian Common Stock, the “Devonian Shares”)
as of the Closing, with the accompanying certificates (to the extent such shares are represented by share certificates) and stock
powers, shall be delivered to Merger Sub for cancellation, and by virtue of the Merger and without any action on the part of any
holder thereof, be converted into and represent the right to receive, and shall be exchangeable for the merger consideration identified
at Section 1.3 hereafter (the “Merger Consideration”);

 

(ii)         each
share of capital stock of Devonian held in treasury as of the Effective Time shall, by virtue of the Merger, shall be canceled
without payment of any consideration therefor and without any conversion thereof;

 

(iii)        each
share of common stock of Merger Sub that is issued and outstanding as of the Effective Time shall be converted into and become
one fully paid and non-assessable share of common stock, $0.0001 par value, of the Surviving Corporation, which shares shall thereafter
constitute all of the issued and outstanding shares of capital stock of the Surviving Corporation;

 

(iv)        
the Surviving Corporation shall assume the corporate existence of the Merger Sub as a wholly-owned subsidiary of Acquiror; and

 

(v)         each
share of capital stock of Devonian outstanding as of the Effective Time, by virtue of the Merger, shall no longer be outstanding
and shall automatically be canceled and retired and shall cease to exist.

 

(b)          From
and after the Effective Time, there shall be no transfers on the stock transfer books of Devonian of shares of its capital stock
that were outstanding immediately prior to the Effective Time. After the Effective Time, certificates for shares of Devonian capital
stock that were outstanding immediately prior to the Effective Time shall be canceled and exchanged for the Merger Consideration
as provided in this Agreement.

 

		1.3	MERGER CONSIDERATION.

 

(a)          Conversion
of Devonian Shares. At the Effective Time, by virtue of the Merger and without any action on
the part of the stockholders of Devonian (“Devonian Stockholders”):

 

(i)          Conversion
of Devonian Common Stock. Each share of Devonian Common Stock issued and outstanding at the Effective Time shall be converted
into the right to receive one (1) share of Acquiror Common Stock, par value $0.0001 per share (the “Acquiror Common Stock”).
All such shares of Devonian Common Stock, when so converted, shall no longer be outstanding and shall automatically be canceled
and retired and shall cease to exist, and each holder of a certificate representing any such shares of Devonian Common Stock shall
cease to have any rights with respect thereto, except the right to receive the Acquiror Common Stock therefor, without interest
or dividends.

 

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(ii)         Conversion
of Devonian Preferred Stock. Each share of Devonian Series A Preferred Stock, par value
$0.0001 per share (the “Devonian Preferred Stock”) issued and outstanding at the Effective Time shall be converted
into the right to receive one (1) share of Acquiror Series B Preferred Stock, par value $0.0001 per share (the “Acquiror
Preferred Stock”)(together with the Acquiror Common Stock, the “Acquiror Shares”). All such shares of Devonian
Preferred Stock, when so converted, shall no longer be outstanding and shall automatically be canceled and retired and shall cease
to exist, and each holder of a certificate representing any such shares of Devonian Preferred Stock shall cease to have any rights
with respect thereto, without interest or dividends.

 

(b)          Exchange
of Certificates. To the extent that the Devonian Shares are represented by share certificates, each
Devonian Stockholder shall deliver to the Acquiror any certificate evidencing a share of Devonian Common Stock or a share of Devonian
Preferred Stock and receive in exchange therefore the applicable Merger Consideration with respect to such share. To the extent
that the Devonian Shares are uncertificated, each Devonian Stockholder shall provide to the transfer agent of the Devonian Shares
an irrevocable direction to transfer such Devonian Shares and receive in exchange therefore the applicable Merger Consideration
with respect to such share

 

(c)          Distributions
With Respect to Unexchanged Shares. No interest or dividends or other distributions with respect
to Devonian Shares with a record date after the Effective Time shall be paid to the holder of any unexchanged shares with respect
to the Devonian Shares represented thereby, and no cash payment in lieu of fractional Devonian Shares shall be paid to any such
holder.

 

(d)          No
Further Ownership Rights in Devonian Shares. From and after the Effective Time, the holders of certificates
evidencing ownership of Devonian Shares outstanding immediately prior to the Effective Time shall cease to have any rights with
respect to such Devonian Shares, except as otherwise provided for herein or by applicable law.

 

(e)          Lost,
Stolen or Destroyed Certificates. In the event any certificate shall have been lost, stolen or destroyed, upon the making of an
affidavit of that fact by the Person claiming such certificate to be lost, stolen or destroyed and, if required by the Acquiror,
the posting by such Person of a bond in such reasonable amount as the Acquiror may direct as indemnity against any claim that may
be made against it with respect to such certificate, the Acquiror will issue in exchange for such lost, stolen or destroyed certificate
the Acquiror Shares to which such Person is entitled pursuant to this Agreement.

 

(f)          Transfer
Books. The Devonian Share transfer books of the Company shall be closed immediately at the Effective
Time and thereafter there shall be no further registration of transfers of Devonian Shares on the records of Devonian. If, after
the Effective Time, certificates are presented to the Surviving Corporation for any reason, they shall be cancelled and exchanged
as provided in this Section 1.3.

 

(h)          Adjustments.
If at any time during the period between the date of this Agreement and the Effective Time, any change in the number of issued
and outstanding shares of Acquiror Common Stock or Acquiror Preferred Stock shall occur, by reason of any reclassification, recapitalization,
stock split or combination, exchange or readjustment of shares, or any stock dividend thereon with a record date during such period,
the number of Acquiror Shares shall be adjusted appropriately.

 

    	4

    	 

    

 

		1.4	TREATMENT OF DEVONIAN NOTES.

 

At Closing, each Devonian
Stockholder who is also a holder of a note issued by Devonian in connection with the acquisition of ORL Equipment, LLC (“ORL”),
shall exchange such note for a note in like principal amount of Acquiror in substantially the form attached as Exhibit B (the “Acquiror
Notes”), with all blanks appropriately completed.

 

		1.5	DISSENTERS’ RIGHTS.

 

Notwithstanding any
provision of this Agreement to the contrary, any Devonian Shares that are issued and outstanding immediately prior to the Effective
Time and that are held by a Devonian Stockholder that has not voted in favor of the Merger or consented thereto in writing and
who has properly delivered a written notice of demand for appraisal of such Devonian Shares in accordance with Section 92A.420
of the NRS, which provides for appraisal rights for such Shares in the Merger (the “Dissenting Shares”), shall not
be converted into the right to receive Merger Consideration unless and until such Devonian Stockholder fails to perfect or effectively
withdraws or loses its right to appraisal and payment under Section 92A.440 of the NRS. Devonian shall give Acquiror: (i) prompt
notice of any notice or demands for appraisal for the Merger Consideration, and (ii) the opportunity to participate, at Acquiror’s
expense, in all negotiations and proceedings with respect to any such demands or notices. Devonian shall not, without the prior
written consent of Acquiror, make any payment with respect to, or settle, offer to settle or otherwise negotiate, any such demands.

 

		1.6	BOARD AND STOCKHOLDER APPROVAL.

 

(a)          Acquiror’s
Board of Directors, Devonian’s Board of Directors, and the Principal Stockholders have approved this Agreement and the Merger
prior to the date hereof. Promptly after executing this Agreement, Devonian, acting through its Board of Director shall duly call,
give notice of, convene, and hold a special meeting of the Devonian Stockholders for the purpose of considering and approving this
Agreement and the Merger in accordance with all applicable requirements of Section 92A.130 of the NRS (the “Special Meetings”).
Unless the Devonian Stockholders elect to waive prior notice thereof, Devonian will provide written notice at least ten (10) days
before the Special Meeting to all Devonian Stockholders informing that the Board of Directors of Devonian and the Principal Stockholders
have approved this Agreement. At such meeting, each Principal Stockholder shall vote all Devonian Shares to approve this Agreement
and the Merger in accordance with all applicable requirements of the NRS.

 

(b)          The
Special Meeting shall be cancelled in the event that, prior to the date thereof, Devonian obtains the unanimous written consent
of the Devonian Stockholders approving this Agreement, the Merger and the transactions contemplated herein and waiving any required
notice or waiting periods, statutory or otherwise.

 

    	5

    	 

    

 

(c)          Each
of Acquiror, Merger Sub, Devonian and Principal Stockholders, respectively, shall use their commercially reasonable efforts to
take all such action as may be necessary and appropriate to effectuate the Merger under the as promptly as possible, including,
without limitation, the filing of the Articles of Merger consistent with the terms of this Agreement. If at any time after the
Effective Time, any further action is necessary or desirable to carry out the purposes of this Agreement, the officers of such
corporations are fully authorized in the name of their corporations or otherwise, and notwithstanding the Merger, to take, and
shall take, all lawful and necessary action.

 

		1.7	NO FURTHER RIGHTS OR TRANSFERS.

 

At and after the Effective
Time, the shares of capital stock of Devonian outstanding immediately prior to the Effective Time shall cease to provide the Devonian
Stockholders thereof any rights as a stockholder of Devonian or the Surviving Corporation, except for the right to surrender the
certificate or certificates representing such shares and to receive the consideration to be received in the Merger as provided
in this Agreement.

 

		1.8	SUBSEQUENT ACTIONS

 

If, at any time after
the Effective Time, the Surviving Corporation shall determine, in its sole discretion, or shall be advised, that any deeds, bills
of sale, assignments, assurances or any other actions or things are necessary or desirable to vest, perfect or confirm of record
or otherwise in the Surviving Corporation its right, title or interest in, to or under any of the property, rights, powers, privileges,
franchises or other assets of either of Devonian or Merger Sub acquired or to be acquired by the Surviving Corporation as a result
of, or in connection with, the Merger or otherwise to carry out this Agreement, then the officers of the Surviving Corporation
shall be authorized to execute and deliver, and shall execute and deliver, in the name and on behalf of either Devonian or Merger
Sub, all such deeds, bills of sale, assignments, assurances, and to take and do, in the name and on behalf of each such corporation
or otherwise, all such other actions and things as may be necessary or desirable, to vest, perfect or confirm any and all right,
title or interest in, to and under such property, rights, powers, privileges, franchises or other assets in the Surviving Corporation
or otherwise to carry out the transactions contemplated by this Agreement.

 

ARTICLE
II

THE CLOSING

 

		2.1	CLOSING DATE.

 

Subject to satisfaction
or waiver of all conditions precedent set forth in Article V of this Agreement, the closing of the Merger (the “Closing”)
shall take place at the offices of Fox Rothschild LLP, 2000 Market Street, Philadelphia, Pennsylvania 19103 at 10:00 a.m. local
time on (a) the later of: (i) the first business day following the date upon which all appropriate corporate action has been taken
by Devonian in accordance with Article IV of this Agreement and (ii) the day on which the last of the conditions precedent
set forth in Article V of this Agreement is fulfilled or waiver; or (b) at such other time, date and place as the parties
may agree (the “Closing Date”).

 

    	6

    	 

    

 

		2.2	CLOSING TRANSACTIONS.

 

At the Closing, the
following transactions shall occur, all of such transactions being deemed to occur simultaneously:

 

(a)          Devonian
and the Devonian Stockholders will deliver, or shall cause to be delivered, to the Acquiror and the Merger Sub the following documents
and shall take the following actions:

 

(i)          The
Devonian Stockholders shall surrender and deliver to the certificates representing all of the Devonian Shares duly endorsed by
the Devonian Stockholders in blank or accompanied by assignments separate from certificate duly endorsed in blank, and such other
duly executed transfer documents as are required to perfect the transfer;

 

(ii)         The
Minority Stockholders shall deliver a Custody and Power of Attorney Agreement (the “Custody and Power of Attorney Agreement”),
in the form attached as Exhibit C attached hereto, executed by the Minority Stockholders, whereby the Minority Stockholders shall,
among other things, (A) attest to the representations and warranties in Section 3.1 of this Agreement, (B) acknowledge and accept
the full terms of this Agreement, (C) waive all dissenter’s rights associated with the Merger, and (D) accept the Merger
Consideration;

 

(iii)        Devonian
shall execute and deliver, and file or cause to be filed with the Secretary of State of the State of Nevada, the Articles of Merger,
with such amendments thereto as the parties hereto shall deem mutually acceptable;

 

(iv)        A
certificate shall be executed by Devonian and the Principal Stockholders to the effect that: (i) all representations and warranties
made by Devonian and the Principal Stockholders under this Agreement are true and correct in all material respects as of the Closing,
as though originally given to Acquiror and Merger Sub on said date; (ii) Devonian and the Principal Stockholders have performed
all obligations required to be performed by them under Article IV of this Agreement prior the Closing Date; and (iii) the
conditions precedent identified in Article V have been satisfied or waived in writing;

 

(v)         A
certificate of good standing shall be delivered by Devonian from the Secretary of State of the State of Nevada, dated within fifteen
(15) days of the Closing, to the effect that Devonian is in good standing under the laws of such state;

 

(vi)        Certified
Board and stockholder resolutions shall be delivered by the Secretary of Devonian dated at or about the Closing authorizing the
transactions contemplated under this Agreement;

 

(vii)       The
Devonian Noteholders shall deliver the original notes, endorsed for cancellation, against delivery of the Acquiror Notes; and

 

(viii)      Devonian
shall provide such other documents, agreements, consents, and approvals governmental or otherwise, as are required under this Agreement
or as may be reasonably requested by the Acquiror in order to comply with the provisions hereunder and to consummate the transactions
contemplated herein.

 

    	7

    	 

    

 

(b)          Acquiror
and Merger Sub will deliver, or shall cause to be delivered, to Devonian and the Devonian Stockholders, the following documents
and shall take the following actions:

 

(i)          Acquiror
shall deliver or shall cause to be delivered to the Stockholders’ Agent certificates representing the Acquiror Shares, registered
in the name of the Devonian Stockholders;

 

(ii)         Acquiror
shall deliver or shall cause to be delivered to the Devonian Noteholders the Acquiror Notes;

 

(iii)        Acquiror
and Merger Sub shall execute and deliver, and file or cause to be filed with the Secretary of the State of Nevada, the Articles
of Merger, with such amendments thereto as the parties hereto shall deem mutually acceptable;

 

(iv)        Merger
Sub shall receive from the Secretary of State of Nevada a final Articles of Merger;

 

(v)         A
certificate shall be executed by the Acquiror’s and Merger Sub’s Chief Executive Officer to the effect that all representations
and warranties of the Acquiror and Merger Sub under this Agreement are true and correct in all material respects as of the Closing,
as though originally given to Devonian on said date;

 

(vi)        Certificates
of good standing shall be delivered within fifteen (15) days of the Closing Date by Acquiror and Merger Sub from the Secretary
of the State of Nevada that the Acquiror and Merger Sub are in good standing under the laws of said state;

 

(vii)       An
incumbency certificate shall be delivered by Acquiror and Merger Sub signed by the principal executive officer of each dated at
or about the Closing;

 

(viii)      Certified
articles of incorporation shall be delivered by Acquiror and Merger Sub dated at or about the Closing, and a copy of the bylaws
of Acquiror and Merger Sub certified by the principal executive officer of Acquiror and Merger Sub dated at or about the Closing;

 

(ix)         (viii)      Certified
Board and stockholder resolutions shall be delivered by the Secretary of Acquiror and Merger Sub dated at or about the Closing
authorizing the transactions contemplated under this Agreement;

 

(x)          Acquiror
and Merger Sub shall deliver all consents, authorizations, orders or approvals required in order to execute and deliver this Agreement
and the Ancillary Agreements and to perform its obligations hereunder and thereunder;

 

(xi)         Acquiror
and Merger Sub shall deliver such additional documents, agreements, consents, and approvals governmental or otherwise, as are required
under this Agreement or as may be reasonably requested by Devonian and the Principal Stockholders in order to comply with the provisions
hereunder and consummate the transactions contemplated herein; and

 

    	8

    	 

    

 

(xii)        Acquiror
and Merger Sub shall provide such other documents, agreements, consents, and approvals governmental or otherwise, as are required
under this Agreement or as may be reasonably requested by Devonian in order to comply with the provisions hereunder and to consummate
the transactions contemplated herein.

 

ARTICLE
III

REPRESENTATIONS AND WARRANTIES

 

		3.1	REPRESENTATIONS AND WARRANTIES OF THE DEVONIAN STOCKHOLDERS.

 

As a material inducement
to Acquiror and Merger Sub to execute this Agreement and consummate the Merger, each Devonian Stockholder, severally but not jointly,
and only with respect to itself, hereby represents to Acquiror and Merger Sub that each of the following representations and warranties
are true and correct as of the date hereof, and will be true and correct in all material respects as of the Closing Date.

 

(a)          Due
Authorization. The Devonian Stockholder has full power and authority to execute and deliver this Agreement and to perform such
Devonian Stockholder’s obligations hereunder. This Agreement has been duly authorized, executed and delivered by the Devonian
Stockholder. This Agreement constitutes the valid and legally binding obligation of the Devonian Stockholder, enforceable in accordance
with its terms and conditions. The Devonian Stockholder is not required to give any notice to, make any filing with, or obtain
any authorization, consent, or approval of any Governmental Authority in order to consummate the transactions contemplated by this
Agreement.

 

(b)          No
Contravention. Neither the execution and the delivery of this Agreement, nor the consummation of the transactions contemplated
hereby, will (A) violate any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling, charge, or other
restriction of any Governmental Authority, or court to which the Devonian Stockholder is subject or any provision of its operating
agreement or organizational documents (as applicable) or (B) conflict with, result in a breach of, constitute a default under,
result in the acceleration of, create in any party the right to accelerate, terminate, modify, or cancel, or require any notice
under any agreement, contract, lease, license, instrument, or other arrangement to which the Devonian Stockholder is a party or
by which the Devonian Stockholder is bound or to which any of the Devonian Stockholder’s assets is subject.

 

(c)          Investment
Banking Fees. There is no investment banker, broker, finder or other similar intermediary which has been retained by, or is
authorized by, the Devonian Stockholder to act on its behalf who might be entitled to any fee or commission from the Devonian Stockholder
or any of its affiliates upon consummation of the transactions contemplated by this Agreement.

 

    	9

    	 

    

 

(d)          Share
Ownership. The Devonian Stockholder owns and holds, beneficially and of record, the entire right, title, and interest in and
to the Devonian Shares held by such Devonian Stockholder, free and clear of all Rights and Encumbrances. The number and class of
Devonian Shares owned by a Principal Stockholder is set forth on the signature page hereto. The Devonian Stockholder has full power
and authority to vote the Devonian Shares owned by such Devonian Stockholder and to approve the transactions contemplated by this
Agreement. The Devonian Stockholder has the full power and authority to vote, transfer and dispose of the Devonian Shares held
by such Devonian Stockholder, free and clear of any Right or Encumbrance other than restrictions under the Securities Act and applicable
state securities laws. At the Closing, the Merger Sub will acquire good title to the Devonian Shares held by the Devonian Stockholder,
free and clear of all Rights and Encumbrances. Other than the transactions contemplated by this Agreement, there is no outstanding
vote, plan, pending proposal, or other right of any Person to acquire, or to cause the redemption of, the Devonian Shares held
by such Devonian Stockholder or to effect the merger or consolidation of Devonian with or into any other Person.

 

(e)          Investment.
The Devonian Stockholder (i) understands that the Acquiror Shares constituting the Merger Consideration have not been, and will
not be, registered under the Securities Act or under any Blue Sky Laws and are being offered and sold in reliance on federal and
state exemptions for transactions not involving any public offering; (ii) represents that any Acquiror Shares acquired pursuant
to this Agreement are being acquired solely for its own account for investment purposes, and not with a view to the distribution
thereof; (iii) is a sophisticated investor with knowledge and experience in business and financial matters; (iv) has received certain
information concerning Acquiror and has had the opportunity to obtain additional information as desired in order to evaluate the
merits and the risks inherent in owning and holding Acquiror Shares; (v) is able to bear the economic risk and lack of liquidity
inherent in owning and holding any Acquiror Shares acquired pursuant to this Agreement; (vi) is an “Accredited Investor”
within the definition set forth in Rule 501(a) under the Securities Act; (vii) was not formed for the purpose of the transactions
contemplated by this Agreement; (viii) understands that an investment in the Acquiror Shares may involve certain material legal,
accounting and federal and state tax consequences, as to which the Devonian Stockholder has consulted with its legal counsel, accountant
and/or business advisor; and (ix) understands that any certificate representing Acquiror Shares issued to the Devonian Stockholder
pursuant to this Agreement will be imprinted with a legend in substantially the following form:

 

“THE SHARES REPRESENTED
BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. SAID SHARES CANNOT BE SOLD, TRANSFERRED,
DISPOSED OF, PLEDGED OR HYPOTHECATED IN ANY MANNER WHATSOEVER IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SHARES
UNDER SAID ACT, OR IN THE OPINION REASONABLY SATISFACTORY TO THE COMPANY IN FORM AND OF COUNSEL, AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS IS IN FACT APPLICABLE TO SAID SHARES.”

 

    	10

    	 

    

 

(f)          Taxes.
The Devonian Stockholders acknowledge and agree that (i) it is the intention of the Parties to treat the transactions contemplated
by this Agreement, and delivery of the Merger Consideration subject to this Agreement, as a tax free reorganization governed by
Section 368 of the Code; and (ii) they have had the opportunity to review the tax consequences of this transaction with their tax
advisors and have neither relied upon the advice of Acquiror or the Merger Sub nor their legal, accounting or financial advisors
in connection therewith.

 

3.2         REPRESENTATIONS
AND WARRANTIES OF DEVONIAN AND THE PRINCIPAL STOCKHOLDERS.

 

As a material inducement
to Acquiror and Merger Sub to execute this Agreement and consummate the Merger, the Devonian Principal Stockholders, jointly and
severally, Devonian, and Devonian, jointly and severally with the Devonian Principal Stockholders, hereby represent to Acquiror
and Merger Sub that each of the following representations and warranties are true and correct as of the date hereof, except as
otherwise set forth in written disclosure schedules (the “Stockholders’ Schedules”) delivered to Acquiror pursuant
to this Section 3.2. The Stockholders’ Schedules are numbered to correspond to the various sections of this Section 3.2 setting
forth certain exceptions to the representations and warranties contained in this Section 3.2 and certain other information required
by this Agreement; provided, however, that any information disclosed in any section of the Stockholders’ Schedules
shall be deemed to be disclosed and incorporated in any other part of the Stockholders’ Schedules, and shall modify and except
the representations and warranties applicable thereto, where such incorporation is reasonable under the circumstances.

 

(a)          Corporate
Existence and Power. Devonian is a corporation duly incorporated, validly existing and in good standing under the laws of the
State of Nevada, and has all corporate powers and all material governmental licenses, permits, authorizations, consents and approvals
required to carry on its business as substantially now conducted. Devonian is duly qualified to do business as a foreign corporation
and is in good standing in each jurisdiction where the character of the property owned or leased by it or the nature of its activities
makes such qualification necessary, except for those jurisdictions where the failure to be so qualified would not, individually
or in the aggregate, have a Material Adverse Effect on Devonian. The minute books of Devonian, as made available to the Acquiror,
contain a true, complete and correct record of all corporate action taken on or prior to the date hereof at the meetings of its
stockholders and directors and committees thereof. The stock certificate books and ledgers of Devonian, as made available to the
Acquiror for inspection, are true, correct and complete, and accurately reflect, at the date hereof, the ownership of the outstanding
capital stock of Devonian by the Devonian Stockholders.

 

(b)          Due
Authorization. This Agreement has been duly authorized, executed and delivered by Devonian, the Principal Stockholders and
the Stockholders’ Agent and constitutes a valid and binding agreement of Devonian, the Principal Stockholders and the Stockholders’
Agent, enforceable in accordance with its terms. As of the Closing Date, all corporate action on the part of Devonian, the Principal
Stockholders and the Stockholders’ Agent required under applicable law in order to consummate the Merger will have occurred.

 

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(c)          No
Contravention. The execution and delivery of the Agreement does not, and the consummation of the transactions contemplated
hereby will not: (i) result in any violation of any provision of the articles of incorporation or bylaws of Devonian; or (ii) result
in any violation or default (with or without notice or lapse of time, or both) under, or give rise to a right of termination, cancellation
or acceleration of a right or obligation or loss under, any material loan or credit agreement, note, bond, mortgage, indenture,
lease or other agreement, instrument, permit, concession, franchise, license, judgment, order, decree, statute, law, ordinance,
rule or regulation applicable to Devonian or its properties or assets, or result in the creation or imposition of any material
Encumbrances on any assets of Devonian, except such as is not reasonably likely to result in a Liability in excess of $10,000 or
prevent Devonian from consummating the transactions contemplated by this Agreement. No consent, approval, order or authorization
of, or registration, declaration or filing with, any court, administrative agency or commission or other governmental authority
or instrumentality, domestic or foreign, is required by or with respect to Devonian in connection with the execution and delivery
of this Agreement by Devonian or the consummation by Devonian of the transactions contemplated hereby, except the filing of the
Articles of Merger.

 

(d)          Capitalization.
The entire authorized capital stock of Devonian consists of 150,000,000 shares, of which 100,000,000 shares are designated as common
stock, par value $0.0001 per share, of which 3,801,000 shares are presently issued and outstanding, and of which 50,000,000 shares
are designated as preferred stock, par value $0.0001 per share, 8,000,000 shares of which have been designated as Series A Preferred
Stock, of which 8,000,000 shares are issued and outstanding. All of the Devonian Shares are held beneficially and of record by
the Devonian Stockholders, and no shares are held in the treasury of the Devonian. All of the Devonian Shares are validly issued,
fully paid and non-assessable and entitled to vote at any meeting of the Devonian Stockholders, and none of the Devonian Shares
has been issued in violation of any preemptive rights of stockholders or transferred in violation of any transfer restrictions
relating thereto. None of the Devonian Shares is subject to any preemptive or other right created by statute, Devonian’s
articles of incorporation or bylaws, by contract, or otherwise. There are no authorized or outstanding options, warrants, convertible
securities, subscription rights, puts, calls, unsatisfied preemptive rights or other rights of any nature to purchase or otherwise
receive, or to require Devonian to purchase, redeem or acquire, any shares of the capital stock or other securities of Devonian
and there is no outstanding security of any kind convertible into such capital stock. None of the shares of capital stock or other
securities of Devonian was issued in violation of the Securities Act, state securities laws, or any other legal requirement. Notwithstanding
the foregoing, promptly after the execution of this Agreement the Acquiror intends to conduct a private placement on a “best
efforts” basis of up to an additional 5 million shares of its common stock which it expects to complete shortly after the
Closing.

 

(e)          Assignment
of Representations and Warranties. Devonian was recently organized and has conducted no other business except (i) those activities
associated with its organization; (ii) activities related to a private placement of its securities; and (iii) activities related
to the acquisition of all of the outstanding membership interests of ORL pursuant to a Member Interest Purchase Agreement, dated
as of March 8, 2013 by and among Devonian, ORL and the Members of ORL (the “ORL Purchase Agreement”). The representations
and warranties made by ORL and the members of ORL in the ORL Purchase Agreement are true and correct as of the date hereof.

 

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(f)     
     Litigation. There is no action, suit, investigation or proceeding (or, to the Knowledge
of Devonian, any basis therefor) pending against, or to the Knowledge of Devonian threatened, against or affecting Devonian
or any of its properties before any court or arbitrator or any governmental body, agency or official that (i) if adversely
determined against Devonian, would result in a Liability in excess of $10,000 or (ii) in any manner challenges or seeks to
prevent, enjoin, alter or materially delay the Merger or any of the other transactions contemplated by the Agreement.

 

(g)          Investment
Banking Fees. There is no investment banker, broker, finder or other similar intermediary which has been retained by, or is
authorized by, Devonian to act on its behalf who might be entitled to any fee or commission from Devonian or the Acquiror or any
of their respective affiliates upon consummation of the transactions contemplated by this Agreement.

 

(h)          Statements
And Other Documents Not Misleading. This Agreement, including all exhibits and schedules hereto taken as a whole, does not
contain and will not contain any untrue statement of any material fact. There is no fact known to Devonian or the Principal Stockholders
which is reasonably likely to have a Material Adverse Effect on Devonian which has not been set forth in this Agreement as an exhibit
or schedule hereto.

 

		3.3	REPRESENTATIONS AND WARRANTIES OF ACQUIROR AND MERGER
SUB.

 

As a material inducement
to Devonian and the Devonian Stockholders to execute this Agreement and consummate the Merger, Acquiror and Merger Sub hereby represent
and warrant to Devonian and the Devonian Stockholders that each of the following representations and warranties are true and correct
as of the date hereof, except as set forth in written disclosure schedules (the “Acquiror’s Schedules”) delivered
to the Devonian Stockholders pursuant to this Section 3.3. The Acquiror’s Schedules are numbered to correspond to the various
sections of this Section 3.3 setting forth certain exceptions to the representations and warranties contained in this Article III
and certain other information required by this Agreement; provided, however, that any information disclosed in any
section of the Acquiror’s Schedules shall be deemed to be disclosed and incorporated in any other part of the Acquiror’s
Schedules, and shall modify and except the representations and warranties applicable thereto, where such incorporation is reasonable
under the circumstances.

 

(a)          Corporate
Existence and Power. Acquiror is a corporation duly incorporated, validly existing and in good standing under the laws of the
State of Nevada, and the Merger Sub is a corporation duly incorporated, validly existing and in good standing under the laws of
the State of Nevada. Each of Acquiror and the Merger Sub has all corporate powers and all governmental licenses, authorizations,
consents and approvals required to carry on its business as now conducted, except where the failure to have any of the foregoing
would not have a Material Adverse Effect on Acquiror or Merger Sub. Acquiror and Merger Sub is duly qualified to do business as
a foreign corporation and is in good standing in each jurisdiction where the character of the property owned or leased by it or
the nature of its activities makes such qualification necessary, except for those jurisdictions where the failure to be so qualified
would not, individually or in the aggregate, have a Material Adverse Effect on Acquiror or Merger Sub. Acquiror owns all of the
issued and outstanding shares of capital stock of the Merger Sub, and there are no other rights or obligations of Acquiror or the
Merger Sub to issue any other shares of capital stock of the Merger Sub. The Merger Sub has conducted no business activity other
than in connection with the transactions contemplated by this Agreement.

 

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(b)          Due
Authorization. This Agreement and the other agreements described herein to which Acquiror or Merger Sub is a party, have been
duly authorized, executed and delivered by Acquiror and Merger Sub and constitute, or as of the Closing will constitute, valid
and binding agreements of Acquiror and Merger Sub, enforceable in accordance with their terms, except as such enforcement may be
limited by applicable bankruptcy, insolvency, moratorium, and other similar laws relating to, limiting or affecting the enforcement
of creditors rights generally or by the application of equitable principles. As of the date hereof, all corporate action on the
part of Acquiror and Merger Sub required under applicable law in order to consummate the Merger has occurred.

 

(c)          No
Contravention. The execution and delivery of the Agreement does not, and the consummation of the transactions contemplated
thereby will not (i) result in any violation of any provision of the articles of incorporation or bylaws of Acquiror or Merger
Sub or (ii) result in any violation or default (with or without notice or lapse of time, or both) under, or give rise to a right
of termination, cancellation or acceleration of an right or obligation or to loss or a benefit under, any provision of the articles
of incorporation or bylaws of Acquiror or Merger Sub or any loan or credit agreement, note, bond, mortgage, indenture, lease or
other agreement, instrument, permit, concession, franchise, license, judgment, order, decree, or to the Knowledge of Acquiror,
any statute, law, ordinance, rule or regulation applicable to Acquiror or its properties or assets. or result in the creation or
imposition of any Encumbrance on any asset of Acquiror or Merger Sub, except, only as to clause (ii) above, such as is not reasonably
likely to have a Material Adverse Effect on Acquiror or Merger Sub or prevent Acquiror and Merger Sub from consummating the transactions
contemplated by this Agreement. No material consent, approval, order or authorization of, or registration, declaration or filing
with, any court, administrative agency or commission or other governmental authority or instrumentality, domestic or foreign, is
required by or with respect to Acquiror or Merger Sub in connection with the execution and delivery of this Agreement by either
of them or the consummation by either of them of the transactions contemplated hereby, except the filing of the Articles of Merger
with the Secretary of the State of Nevada, and to the extent a Form D may be filed with the SEC or any other form may be required
to be filed with a state securities commission, in connection with the issuance of the Acquiror Shares.

 

(d)          Capitalization.
The entire authorized capital stock of Acquiror consists of 125,000,000 shares, of which 100,000,000 shares are designated as common
stock, par value $0.0001 per share, of which 11,287,573 shares are issued and outstanding, and of which 25,000,000 shares are designated
as preferred stock, par value $0.0001 per share, 4,000,000 shares of which have been designated as Series A Preferred Stock, of
which 3,200,000 are issued and outstanding, and 8,000,000 of which have been designated as Series B Preferred Stock, none of which
are issued and outstanding. Notwithstanding the foregoing, promptly after the execution of this Agreement, the Acquiror intends
to conduct a private placement on a “best efforts” basis of up to an additional 5 million shares of its common stock
which it expects to complete shortly after the Closing. All outstanding shares of capital stock of Acquiror have been duly authorized
and validly issued and are fully paid and nonassessable and free of preemptive rights. Except as otherwise set forth herein, there
are no outstanding or presently authorized warrants, preemptive rights, subscription rights, options or related commitments or
agreements of any nature to issue any of Acquiror’s securities or to sell, pledge, assign or otherwise transfer such securities.

 

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(e)          Litigation.
There are no Proceedings, claims or demands pending or, to the Knowledge of Acquiror, Threatened against or involving the Acquiror
or Merger Sub or state of facts existing which could give rise to any such action, suit, proceeding, claim, demand or investigation
and (ii) there are no Proceedings pending or, to the Knowledge of Acquiror, Threatened against or involving the Acquiror or Merger
Sub by or before any Governmental Authority, department, commission, bureau, instrumentality or agency (including but not limited
to any Governmental Authority concerned with control of foreign exchange, energy, environmental protection or pollution control,
franchising or other distribution arrangements, antitrust or trade regulation, civil rights, labor or discrimination, wages and
hours, safety or health, zoning or land use), or, to the Knowledge of Acquiror, state of facts existing which could give rise to
any such proceedings; and the Acquiror and Merger Sub are not in violation of any Injunction of any Governmental Authority. There
is no order, writ, Injunction, judgment or decree to which Acquiror or Merger Sub or any of their assets owned or used by them,
is subject.

 

(f)      
    Statements And Other Documents Not Misleading. This Agreement, including all exhibits and
schedules hereto taken as a whole, does not contain and will not contain any untrue statement of any material fact. There is
no fact known to Acquiror or Merger Sub which is reasonably likely to have a Material Adverse Effect on the business,
prospects, financial condition or results of operations of Acquiror or Merger Sub which has not been set forth in this
Agreement as an exhibit or schedule hereto.

 

(g)          Taxes.
The Acquiror and Merger Sub acknowledge and agree that (i) it is the intention of the Parties to treat the delivery of the Merger
Consideration subject to this Agreement as a tax free reorganization governed by Section 368 of the Code; and (ii) they have had
the opportunity to review the tax consequences of this transaction with their tax advisors and have neither relied upon the advice
of Devonian or the Devonian Stockholders nor their legal, accounting or financial advisors in connection therewith.

 

ARTICLE
IV

COVENANTS OF THE PARTIES PENDING CLOSING

 

		4.1	ACCESS TO INFORMATION.

 

At all times prior
to the Closing or the earlier termination of this Agreement in accordance with the provisions of Section 8, and in each case subject
to Section 7.1 below, each of the parties hereto shall provide to the other Parties (and the other Parties’ authorized representatives)
reasonable access during normal business hours and upon reasonable prior notice to the premises, properties, books, records, assets,
liabilities, operations, contracts, personnel, financial information and other data and information of or relating to such party.
The Acquiror, its officers, counsel, or accountants shall, with the prior consent of Devonian, have the authority to interview,
as reasonably necessary and without undue disruption to the business of Devonian, all employees, customers, vendors, and suppliers,
and Devonian shall make such introductions as may be requested; provided, however, that any contacts or interactions with Devonian
’s customers, vendors and suppliers shall be in a commercially reasonably manner consistent with the best interests of Devonian.

 

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		4.2	INTERIM OPERATIONS.

 

During the period from
the date of this Agreement and continuing until the Closing, Devonian agrees (except as expressly contemplated by this Agreement,
including any Exhibits and Schedules hereto, or to the extent that Acquiror shall otherwise consent in writing such consent not
to be unreasonably withheld, conditioned, or delayed) that as to Devonian:

 

(a)          Ordinary
Course. Each of Devonian and each of its subsidiaries shall carry on its business in the usual, regular and ordinary course
in substantially the same manner as heretofore conducted and, to the extent consistent with such business, use all reasonable efforts
to preserve intact its present business organization, keep available the services of its present officers and employees and preserve
its relationships with customers, suppliers and others having business dealings with it;

 

(b)          Dividends;
Changes in Stock. Each of Devonian and each of its subsidiaries shall not and shall not propose to (i) declare, set aside or
pay any dividend, on, or make other distributions in respect of, any of its capital stock, (ii) split, combine or reclassify any
of its capital stock or issue, authorize or propose the issuance of any other securities in respect of, in lieu of or in substitution
for shares of its capital stock (iii) redeem, repurchase or otherwise acquire any shares of its capital stock or (iv) otherwise
change its capitalization.

 

(c)          Issuance
of Securities. Except as contemplated by this Agreement, each of Devonian and each of its subsidiaries shall not sell, issue,
pledge, authorize or propose the sale or issuance of, pledge or purchase or propose the purchase of, any shares of its capital
stock of any class or securities convertible into, or rights, warrants or options to acquire, any such shares or other convertible
securities.

 

(d)          Governing
Documents. Each of Devonian and each of its subsidiaries shall not amend its articles of incorporation or its bylaws.

 

(e)          No
Dispositions. Each of Devonian and each of its subsidiaries shall not sell, lease, pledge, encumber or otherwise dispose of
or agree to sell, lease, pledge, encumber or otherwise dispose of, any of its assets that are material except in the Ordinary Course
of Business consistent with prior practice and in no event amounting in the aggregate to more than $25,000.

 

(f)     
     Indebtedness. Each of Devonian and each of its subsidiaries shall not incur any
indebtedness for borrowed money or guarantee any such indebtedness or issue or sell any debt securities of Devonian or each
of its subsidiaries or guarantee any debt securities of others other than in the Ordinary Course of Business consistent with
prior practice and in no event amounting in the aggregate to more than $25,000.

 

(g)          Capital
Expenditures. Each of Devonian and each of its subsidiaries shall not make any capital expenditures in excess of $25,000 individually
or $100,000 in the aggregate without the Acquiror’s prior written consent.

 

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(h)          Materials
and Supplies. Each of Devonian and each of its subsidiaries shall maintain the levels of materials and supplies used in the
Business consistent with its past practice for similar periods of the calendar year.

 

(i)     
     Benefit Plans; Etc. Each of Devonian and each of its subsidiaries shall not adopt or
amend in any material respect any collective bargaining agreement or Employee Benefit Plan (as defined herein).

 

(j)          Executive
Compensation. Each of Devonian and each of its subsidiaries shall not grant to any executive officer any increase in compensation
or in severance or termination pay, or enter into any new, or amend any existing employment agreement with any executive officer.

 

(k)          Acquisitions.
Each of Devonian and each of its subsidiaries shall not acquire (by merger, consolidation or acquisition of stock or assets or
otherwise) any corporation, partnership or other business organization or subdivision thereof, or make any investment by either
purchase of stock or securities, contributions to capital, property transfer or, except in the Ordinary Course of Business, purchase
of any property or assets, of any other individual or entity.

 

(l)          Tax
Elections. Each of Devonian and each of its subsidiaries shall not make any material tax election or settle or compromise any
material federal, state, local or foreign tax liability.

 

(m)        Taxes.
Each of Devonian and each of its subsidiaries will duly and timely file all reports or Tax Returns required to be filed with federal,
state, local and foreign authorities and will promptly pay all Tax, assessments and governmental charges levied or assessed upon
it or any of its properties (unless contesting such in good faith and adequate provision has been made therefor).

 

(n)          Insurance.
Each of Devonian and each of its subsidiaries shall maintain in full force and effect all insurance coverages for its properties
and assets substantially comparable to coverages existing on the date hereof.

 

(o)          Waivers
and Releases. Each of Devonian and each of its subsidiaries shall not waive, release, grant or transfer any rights of material
value or modify or change in any material agreement other than in the Ordinary Course of Business and consistent with past practice.

 

(p)          Related
Persons. Each of Devonian and each of its subsidiaries shall not enter into, or modify, any contract with a Related Person
except for those expressly contemplated therein.

 

(q)          Other
Actions. Each of Devonian and each of its subsidiaries shall not enter into any agreement or arrangement to do any of the foregoing.

 

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4.3           CONSENTS.

 

Acquiror, Merger Sub,
Devonian and the Principal Stockholders shall cooperate and use their best efforts to obtain, prior to the Closing, all licenses,
permits, consents, approvals, authorizations, qualifications and orders of governmental authorities and parties to contracts as
are necessary for the consummation of the transactions contemplated by this Agreement; provided, however, that no loan agreement
or contract for borrowed monies shall be repaid and no contract shall be amended materially to increase the amount payable thereunder
or otherwise to be materially more burdensome to Devonian in order to obtain any such consent, approval or authorization without
first obtaining the written approval of the other parties hereto.

 

4.4           FILINGS.

 

Acquiror, Merger Sub,
Devonian and the Principal Stockholders shall, as promptly as practicable, make any required filing, and any other required submissions,
under any law, statute, order rule or regulation with respect to the Merger and the related transactions and shall cooperate with
each other with respect to the foregoing.

 

4.5           ALL
REASONABLE EFFORTS.

 

Subject to the terms
and conditions of this Agreement and to the fiduciary duties and obligations of the boards of directors of the parties hereto to
their respective stockholders, as advised by their counsel, each of the parties to this Agreement shall use all reasonable efforts
to take, or cause to be taken, all action and to do, or cause to be done, all things necessary, proper or advisable under applicable
laws and regulations, or to remove any injunctions or other impediments or delays, legal or otherwise, as soon as reasonable practicable,
to consummate the Merger and the other transactions contemplated by this Agreement.

 

4.6           FURTHER
MUTUAL COVENANTS.

 

Acquiror, Merger Sub,
Devonian and the Principal Stockholders shall each refrain from taking any action which would render any representations or warranties
contained in Article III of this Agreement inaccurate as of the Closing Date and shall promptly notify the other Parties upon
the happening of any event or taking of any action which renders any such representation or warranty inaccurate. Each Party shall
promptly notify the other Parties if he or it has discovered that any representation or warranty made by another Party under this
Agreement is untrue or incorrect in any material respect. Each Party shall promptly notify the other Parties of any action, suit
or proceeding that shall be instituted or Threatened against such Party to restrain, prohibit, or otherwise challenge the legality
of any transaction contemplated by this Agreement.

 

4.7           NOTIFICATION
OF CERTAIN MATTERS.

 

Devonian and the Principal
Stockholders shall give prompt notice to Acquiror and Merger Sub, and Acquiror and Merger Sub shall give prompt notice to Devonian
and the Principal Stockholders, of (a) the occurrence or non-occurrence of any event, the occurrence or non-occurrence of which
causes any of its representations or warranties in this Agreement to be untrue or inaccurate in any material respect at or prior
to the Closing and (b) any material failure of Devonian and the Principal Stockholders, on the one hand, or Acquiror and Merger
Sub, on the other hand, as the case may be, to comply with or satisfy any covenant, condition or agreement to be complied with
or satisfied by them under this Agreement; provided, however, the delivery of any notice pursuant to this Section 4.7 shall not
limit or otherwise affect the remedies available to the party receiving such notice under this Agreement as expressly provided
in this Agreement.

 

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		4.8	EXPENSES.

 

All costs and expenses
incurred in connection with the Agreement and the transactions contemplated hereby shall be paid by the party incurring such expenses
whether or not the Merger is consummated, provided that, the costs and expenses of Devonian incurred in connection with the contemplated
transactions shall be borne by the Devonian Stockholders. Any costs and expenses of each respective Devonian Stockholder incurred
in connection with the contemplated transaction, shall be borne by each respective Devonian Stockholder.

 

		4.9	DOCUMENTS AT CLOSING.

 

Each party to this
Agreement agrees to execute and deliver at the Closing those documents applicable to such Party identified in Section 2.2.

 

		4.10	EXCLUSIVE DEALING.

 

Neither the Principal
Stockholders nor Devonian will, directly or indirectly, through any officer, director, agent or otherwise, (a) solicit, initiate
or encourage submission of proposals or offers from any person relating to an acquisition or purchase of all or a material portion
of the assets of or an equity interest in Devonian or any of its subsidiaries or any merger, consolidation or business combination
with Devonian or any of its subsidiaries, or (b) participate in any discussions or negotiations regarding, or furnish to any other
person, any non-public information with respect to or otherwise cooperate in any way with, or assist or participate in, facilitate
or encourage, any effort or attempt by any other person to do or seek any of the foregoing. The Principal Stockholders and Devonian
agree to promptly notify the Acquiror of any such proposal or offer, or any inquiry or contact with respect thereto received by
Devonian, or any of the Principal Stockholders.

 

ARTICLE
V

CONDITIONS TO CONSUMMATION OF THE MERGER

 

5.1         CONDITIONS
TO OBLIGATIONS OF DEVONIAN AND THE principal STOCKHOLDERS.

 

(a)          The
obligations of Devonian and the Principal Stockholders under this Agreement shall be subject to the following conditions, any or
all of which may be waived in writing by the Principal Stockholders:

 

(i)          Each
of Acquiror and Merger Sub shall have in all respects performed and complied with each of the agreements, covenants, stipulations,
terms and conditions contained herein and required to be performed or complied with by Acquiror and Merger Sub on or prior to the
Closing Date. Each of the representations and warranties of Acquiror and Merger Sub in this Agreement that is already expressly
qualified by a reference to materiality shall be true in all respects as so qualified on the date hereof and on the Closing Date,
and each of the representations and warranties of Acquiror and Merger Sub in this Agreement that is not so qualified shall be true
and correct in all respects on the date hereof and will be true and correct in all material respects as of the Closing Date.

 

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(ii)         Acquiror
and Merger Sub, as applicable, shall have executed and delivered to Devonian and the Principal Stockholders the documents, and
shall have taken the actions set forth within Section 2.2(b) hereof.

 

(iii)        As
of the Closing Date, nothing shall have occurred which, individually or in the aggregate, had or is reasonably expected to have
a Material Adverse Effect on the Acquiror or Merger Sub.

 

(iv)        Devonian
shall have obtained approval of the Devonian Stockholders in accordance each by NRS and this Agreement.

 

(v)         No
action, proceeding or investigation shall have been instituted or Threatened to set aside the transactions provided for herein
or to enjoin or prevent the consummation of the transactions contemplated hereby and all required consents and approvals for the
consummation of the transactions shall have been secured.

 

		5.2	CONDITIONS TO ACQUIROR’S AND MERGER SUB’S
OBLIGATIONS.

 

(a)          The
obligations of Acquiror and Merger Sub under this Agreement shall be subject to the following conditions, any or all of which may
be waived in writing by Acquiror:

 

(i)          Devonian
and the Principal Stockholders shall have performed and complied in all respects with each of the agreements, covenants, stipulations,
terms and conditions contained herein and required to be performed or complied with by them on or prior to the Closing Date. Each
of the representations and warranties of Devonian and the Principal Stockholders in this Agreement that is already expressly qualified
by a reference to materiality shall be true in all respects as so qualified on the date hereof and on the Closing Date, and each
of the representations and warranties of Devonian and the Principal Stockholders in this Agreement that is not so qualified shall
be true and correct in all respects as of the date hereof and will be true and correct in all material respects as of the Closing
Date.

 

(ii)         Devonian
and the Principal Stockholders, as applicable, shall have executed and delivered to Acquiror at Closing the documents, and taken
the actions identified in Section 2.2(a) hereof.

 

(iii)        As
of the Closing Date, nothing shall have occurred which, individually or in the aggregate, had or is reasonably expected to have
a Material Adverse Effect on Devonian.

 

(iv)        No
action, proceeding or investigation shall have been instituted or Threatened to set aside the transactions provided for herein
or to enjoin or prevent the consummation of the transactions contemplated hereby.

 

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(v)         All
required consents and approvals for the consummation of the transactions contemplated hereby shall have been secured or waived.

 

(vi)        Devonian
shall have obtained approval of the Devonian Stockholders in accordance with the NRS and this Agreement.

 

(vii)       No
stockholder of Devonian shall have filed with Devonian, prior to the Devonian Stockholders Meeting at which a vote is to be taken
with respect to a proposal to approve this Agreement, a written objection to such proposed action and to have asserted the right
to exercise dissenter’s rights.

 

ARTICLE
VI

INDEMNIFICATION; SURVIVAL OF REPRESENTATIONS AND WARRANTIES AND CERTAIN COVENANTS

 

		6.1	INDEMNIFICATION.

 

(a)          Subject
to the limitations set forth in this Article VI, Devonian (for all periods prior to and ending on the Closing), and the Devonian
Stockholders, jointly and severally (but only with respect to the periods after the Closing), shall defend and hold harmless Acquiror
from and against any and all demands, claims, actions or causes of action, judgments, assessments, losses, liabilities, damages
or penalties and reasonable attorneys’ fees and related disbursements (collectively, “Claims”) incurred by the
Acquiror: (i) which arise out of or result from a breach of any representation or warranty of the Principal Stockholders contained
in this Agreement (other than Section 3.1, which is addressed in Section 6.1(b) below); (ii) which arise out of or result from
a breach of any covenant or agreement of the Principal Stockholders contained in this Agreement or any of the Ancillary Agreements,
or in the Schedules annexed hereto or thereto, or in any deed, exhibit, closing certificate, schedule or any ancillary certificates
furnished by the Principal Stockholders pursuant hereto or thereto or in connection with the transactions contemplated hereby or
thereby; or (iii) which arise out of or relate to fraud on behalf of Devonian or the Devonian Stockholders, or any fraudulent misrepresentation
of Devonian or the Devonian Stockholders under this Agreement. On the Closing Date, all representations and warranties contained
in this Agreement and made by Devonian, the Devonian Stockholders or the Principal Stockholders will expire as to Devonian and
thereafter will be deemed to be made exclusively by the Principal Stockholders.

 

(b)          Each
Devonian Stockholder shall, jointly but not severally defend and hold harmless Acquiror from and against Claims incurred by the
Acquiror which arise out of or result from a breach of any representation or warranty of such Devonian Stockholder contained in
Section  3.1 of this Agreement. On the Closing Date, all representations and warranties contained in this Agreement and made
by the Devonian Stockholder under Section 3.1 of this Agreement will expire as to Devonian and thereafter will be deemed to be
made exclusively by the Devonian Stockholders.

 

(c)          The
Acquiror shall indemnify, defend and hold harmless the Devonian Stockholders from and against any and all Claims incurred by any
of the Devonian Stockholders which arise out of or result from breach of any representation or warranty of the Acquiror or a breach
of any covenant or agreement of the Acquiror contained herein or any of the Ancillary Agreements or in the exhibits or schedules
annexed hereto or thereto or in any deed, exhibit, closing certificate, schedule or any ancillary certificates furnished by the
Acquiror pursuant hereto or in connection with the transactions contemplated hereby or thereby.

 

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(d)          The
right to indemnification, payment of damages or other remedy based on any representations, warranties, covenants and obligations
contained in this Agreement will not be affected by and will survive any investigation conducted with respect to, or any knowledge
acquired (or capable of being acquired) at any time, whether before or after the Closing Date, with respect to the accuracy or
inaccuracy of or compliance with, any such representation, warranty, covenant or obligation.

 

		6.2	EXPIRATION OF REPRESENTATIONS, WARRANTIES AND COVENANTS.

 

The representations
and warranties contained herein shall survive the Closing and shall thereupon terminate on September 30, 2014 except in respect
of any Claims related to or arising out of (i) the representations and warranties in Sections 3.1, 3.2(a), 3.2(b), or 3.2(d), or
(ii) any Claim for fraud or fraudulent misrepresentation; all of which may be asserted at any time after the Closing Date subject
to the applicable statute of limitations. All covenants and agreements contained herein which by their terms contemplate actions
following the Closing shall survive the Closing and remain in full force and effect in accordance with their terms. If prior to
the applicable expiration of a representation, warranty or covenant, Acquiror shall have delivered a Claim Notice to the Devonian
Stockholders, then the specific indemnification claim set forth in the Claim Notice shall survive such expiration date and shall
not be extinguished thereby.

 

		6.3	METHODS OF ASSERTING CLAIMS FOR INDEMNIFICATION.

 

All Claims for indemnification
under this Agreement shall be asserted as follows:

 

(a)          Third
Party Claims. In the event that any Claim for which a Party (the “Indemnitee”) would be entitled to indemnification
under this Agreement is asserted against or sought to be collected from the Indemnitee by a third party, the Indemnitee shall promptly
notify the other Party (the “Indemnitor”) of such Claim, specifying the nature thereof, and the amount or the estimated
amount thereof, if known (the “Claim Notice”). The Indemnitor shall have thirty (30) days (or, if shorter, a period
to a date not less than ten (10) days prior to when a responsive pleading or other document is required to be filed but in no event
less than ten (10) days from delivery of the Claim Notice) to notify the Indemnitee (a) whether or not it disputes the Claim and
(b) if liability hereunder is not disputed, whether or not it desires to defend the Indemnitee. If the Indemnitor elects to defend
by appropriate proceedings, such proceedings shall be promptly defended by Indemnitor; and all costs and expenses of such proceedings
and the amount of any judgment shall be paid by the Indemnitor.

 

The Indemnitee shall
have the right to participate in, but not control, any such defense or settlement, at its sole cost and expense. If the Indemnitor
has disputed the Claim, as provided above, the Indemnitee shall have the right to control the defense or settlement of such Claim,
in its sole discretion. Neither Indemnitee nor Indemnitor shall be otherwise liable for any settlement of any Claim without the
prior written consent of the other Party.

 

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(b)          Non-Third
Party Claims. In the event that the Indemnitee has a Claim for indemnification hereunder which does not involve a Claim being
asserted against it or sought to be collected by a third party, the Indemnitee shall promptly send a Claim Notice with respect
to such Claim to the Indemnitor. If the Indemnitor does not satisfy the Claim within thirty (30) days of the date of the Claim
Notice, then such Claim shall be submitted to arbitration pursuant to Section 10.9 hereof.

 

		6.4	NO RIGHT OF CONTRIBUTION.

 

After the Closing,
the Devonian Stockholders shall not have any right of contribution against Devonian for any breach of representation, warranty,
covenant or agreement of Devonian under this Agreement or for any third party claims that may be asserted against any such Devonian
Stockholder after the Closing.

 

ARTICLE
VII

ADDITIONAL AGREEMENTS OF THE PARTIES

 

		7.1	CONFIDENTIALITY.

 

(a)          With
respect to Confidential Information concerning Devonian and the Devonian Stockholders that is made available to Acquiror pursuant
to the terms of this Agreement, Acquiror agrees that it shall hold such Confidential Information in strict confidence, shall not
use such information except for the sole purpose of evaluating, and performing the Acquiror’s obligations and exercising
the Acquiror’s rights under, this Agreement and shall not disseminate or disclose any of such information other than to the
directors, officers, employees, stockholders, affiliates, agents and representatives of the Acquiror who need to know such information
for the sole purpose of evaluating, and performing the Acquiror’s obligations and exercising the Acquiror’s rights
under, this Agreement (each of whom shall be informed by Acquiror of the confidential nature of the Confidential Information and
directed by Acquiror to treat such information confidentially). If this Agreement is terminated pursuant to the provisions of Article VIII,
Acquiror shall immediately return all such Confidential Information of Devonian, all copies thereof and all information prepared
by Acquiror based upon the same. The above limitations on use, dissemination and disclosure shall not apply to Confidential Information
that (i) is learned by Acquiror from a third party under no obligation of confidentiality; (ii) becomes known publicly other than
through any act or omission of Acquiror or any party who received the same through Acquiror; provided, however, that Acquiror has
no knowledge that the disclosing party was subject to an obligation of confidentiality; (iii) is required by law or court order
to be disclosed by Acquiror; (iv) is independently developed by Acquiror or any of its Affiliates without the use of any Confidential
Information received from Devonian or the Devonian Stockholders; or (v) is disclosed with the express prior written consent thereto
of Devonian or the Devonian Stockholders. Acquiror shall undertake all necessary steps to ensure that the secrecy and confidentiality
of such Confidential Information will be maintained in accordance with the provisions of this subsection (a).

 

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(b)          With
respect to Confidential Information concerning Acquiror that is made available to Devonian and the Devonian Stockholders pursuant
to the provisions of this Agreement, the Devonian Stockholders and Devonian agree that they shall hold such Confidential Information
in strict confidence, shall not use such Confidential Information except for the sole purpose of evaluating, and performing the
Devonian Stockholders’ or Devonian ’s obligations and exercising the Devonian Stockholders’ and Devonian’s
rights under, this Agreement, and shall not disseminate or disclose any of such Confidential Information other than to Devonian’s
directors, officers, employees, affiliates, agents and representatives (including Devonian’s accountants and insurance providers)
who need to know such information for the sole purpose of evaluating, or performing Devonian’s or the Devonian Stockholders’
obligations or exercising Devonian’s or the Devonian Stockholders’ rights under, this Agreement and the related transactions
(each of whom shall be informed by the Devonian Stockholder or Devonian of the confidential nature of the Confidential Information
and directed by such party to treat the Confidential Information confidentially). If this Agreement is terminated pursuant to the
provisions of Article VIII, the Devonian Stockholders agree to return immediately all Confidential Information, all copies
thereof and all information prepared by either of the Devonian Stockholders or Devonian based upon the same. The above limitations
on use, dissemination and disclosure shall not apply to Confidential Information that (i) is learned by the Devonian Stockholders
or Devonian from a third party under no obligation of confidentiality; (ii) becomes known publicly other than through any act or
omission of the Devonian Stockholder or Devonian or any party who received the same through the Devonian Stockholders or Devonian;
provided, however, that to the Knowledge of the Devonian Stockholders and Devonian, no disclosing party was subject to an obligation
of confidentiality; (iii) is required by law or court order to be disclosed by the Devonian Stockholder or Devonian ; (iv) is independently
developed by Devonian or the Devonian Stockholders without the use of any Confidential Information received from the Acquiror or
its Affiliates or (v) is disclosed with the express prior written consent thereto of Acquiror. The Devonian Stockholders and Devonian
agree to undertake all necessary steps to ensure that the secrecy and confidentiality of the Confidential Information will be maintained
in accordance with the provisions of this subsection (b).

 

(c)          Notwithstanding
anything contained in this Section to the contrary, in the event a Party is required by law, rule, regulation, court order or subpoena
to disclose Confidential Information which is subject to the confidentiality obligations hereunder, prior to such disclosure, the
disclosing Party shall: (i) promptly notify the non-disclosing Party and, if having received a court order or subpoena, deliver
a copy of the same to the non-disclosing Party; (ii) cooperate with the non-disclosing Party at the expense of the non-disclosing
Party in obtaining a protective or similar order with respect to such information; and (iii) provide only such portion of the Confidential
Information of the non-disclosing Party as the disclosing Party is advised by its counsel is necessary to strictly comply with
such law, rule, regulation, court order or subpoena.

 

(d)          On
and after the Closing, the Devonian Stockholders shall hold in strict confidence all Confidential Information of Devonian, shall
not disclose, publish or make use of such knowledge or information without the consent of the Acquiror.

 

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		7.2	INJUNCTIVE RELIEF.

 

The Parties agree that
the remedy of damages at law for the breach by any of them of any of the covenants, obligations or other provisions contained in
this Article VII is an inadequate remedy. In recognition of the irreparable harm that a violation of such covenants would cause
the Party or Parties whom such covenants, obligations or other provisions benefit, the Parties agree that in addition to any other
remedies or relief that may be available to them, such injured Party upon an otherwise adequate showing is entitled to (a) a decree
or order of specific performance or mandamus to enforce the observance and performance of such covenant, obligation or other provision,
and (b) an injunction against and restraining an actual or threatened breach, violation or violations. The Parties agree that both
damages and specific performance shall be proper modes of relief and are not to be considered alternative remedies.

 

		7.3	FURTHER ACTS AND ASSURANCES.

 

The Parties agree that,
at any time and from time to time, on and after the Closing Date, upon the reasonable request of any other Party, they will do
or cause to be done all such further acts and things and execute, acknowledge and deliver, or cause to be executed, acknowledged
and delivered any and all papers, documents, instruments, agreements, assignments, transfers, assurances and conveyances as may
be necessary or desirable to carry out and give effect to the provisions and intent of this Agreement and the Ancillary Agreements.
In addition, from and after the Closing Date, the Acquiror will afford to the Principal Stockholders and their attorneys, accountants
and other representatives, access, during normal business hours, to such personnel, books and records relating to Acquiror as may
reasonably be required in connection with the preparation of financial information or the filing of Tax Returns and will cooperate
in all reasonable respects in connection with claims and proceedings asserted by or against third parties, relating to or arising
from the transactions contemplated hereby.

 

		7.4	PUBLIC ANNOUNCEMENTS.

 

(a)          Neither
the Principal Stockholders nor the Acquiror, shall disclose to the public or to any third party the existence of this Agreement
or the transactions contemplated hereby or any other material nonpublic information concerning or relating to any Party hereto,
other than with the express prior written consent of the Party regarding whom such disclosure would be made; provided, however,
that disclosure may be made with advance notice (i) to the minimum extent as may be required by law or court order, or (ii) to
enforce the rights of such disclosing Party under this Agreement; provided further, however, that notwithstanding anything to the
contrary contained in this Agreement, any Party hereto may disclose this Agreement to any of its directors, officers, employees,
stockholders, affiliates, agents and representative who need to know such information for the sole purpose of evaluating, or performing
its obligations or exercising its rights under this Agreement.

 

(b)          Notwithstanding
anything contained in this Section to the contrary, in the event a Party is required by law, rule, regulation, court order or subpoena
to disclose material nonpublic information of another Party, prior to such disclosure, the disclosing Party shall: (i) promptly
notify the non-disclosing Party and, if having received a court order or subpoena, deliver a copy of the same to the non-disclosing
Party; (ii) cooperate with the non-disclosing Party at the expense of the non-disclosing Party in obtaining a protective or similar
order with respect to such information; and (iii) provide only such of the Confidential Information of the non-disclosing
Party as the disclosing Party is advised by its counsel is necessary to strictly comply with such law, court order or subpoena.

 

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(c)          No
press releases or public announcements regarding the consummation of the transactions provided for herein shall be made without
the mutual agreement of all Parties as to form and substance of such press release or public announcement.

 

		7.5	TAX MATTERS.

 

Acquiror and Devonian
agree that they shall report the transaction contemplated by this Agreement for income tax purposes as a reorganization under Section
368 of the Code.

 

ARTICLE
VIII

TERMINATION

 

		8.1	TERMINATION EVENTS.

 

This Agreement may,
by written notice given prior to or at the Closing, be terminated, and the Merger may be abandoned at any time prior to or at the
Closing:

 

(a)          by
the Acquiror if a material breach of any provision of this Agreement has been committed by Devonian, the Devonian Stockholders
or the Principal Stockholders on or before the Closing Date and such breach has not been waived by the Acquiror;

 

(b)          by
Devonian or the Stockholders’ Agent if a material breach of any provision of this Agreement has been committed by Acquiror
or Merger Sub on or before the Closing Date and such breach has not been waived by Devonian;

 

(c)          by
the Acquiror if any of the conditions in Section 5.2 have not been satisfied as of the Closing Date or if satisfaction of such
condition is or becomes impossible (other than through the failure of Acquiror or Merger Sub to comply with its obligations under
this Agreement), and Acquiror has not waived such condition on or before the Closing Date;

 

(d)          by
Devonian, if any of the conditions in Section 5.1 have not been satisfied as of the Closing Date or if satisfaction of such a condition
is or becomes impossible (other than through the failure of Devonian, the Devonian Stockholders or the Principal Stockholders to
comply with their obligations under this Agreement), and Devonian has not waived such condition on or before the Closing Date;
or

 

(e)          by
mutual consent of the Acquiror, Merger Sub, Devonian and the Stockholders’ Agent.

 

		8.2	AUTOMATIC TERMINATION.

 

This Agreement shall
automatically terminate and shall be of no further force or effect, except as expressly provided below in Section 8.3, on and as
of the Termination Date.

 

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		8.3	EFFECT OF TERMINATION.

 

Each Party’s
right of termination under Sections 8.1 and 8.2 is in addition to any other rights it may have under this Agreement or otherwise,
and the exercise of a right of termination will not be an election of remedies. If this Agreement is terminated pursuant to Section
8.1 or 8.2, all further obligations of the Parties under this Agreement will terminate; provided however, that if this Agreement
is terminated by a Party because of a material breach of the Agreement by another Party or because one or more of the conditions
to the terminating Party’s obligations under this Agreement is not satisfied as a result of another Party’s failure
to comply with its obligations under this Agreement, the terminating Party’s right to pursue all legal remedies will survive
such termination unimpaired. The rights and remedies of the Parties to this Agreement are cumulative, not alternative. In addition
to their respective rights to damages or other remedies they may have, and without limitation thereof, Acquiror and Merger Sub
shall have the right to obtain injunctive relief to restrain any breach or otherwise to specifically enforce the provisions of
this Agreement, it being agreed by the parties that money damages alone would be inadequate to compensate Acquiror and Merger Sub
for such breach or other failure to perform the obligations of Devonian and the Principal Stockholders under this Agreement.

 

		8.4	EXTENSION; WAIVER.

 

Any time prior to the
Closing, the parties may (a) extend the time for the performance of any of the obligations or other acts of any other party under
or relating to this Agreement; (b) waive any inaccuracies in the representations or warranties by any other party or (c) waive
compliance with any of the agreements of any other party or with any conditions to its own obligations. Any agreement on the part
of any other party to any such extension or waiver shall be valid only if set forth in an instrument in writing signed on behalf
of such party.

 

		8.5	AMENDMENT AND MODIFICATION.

 

This Agreement may
be amended, whether before or after the vote of the Devonian Stockholder or stockholders of Acquiror, by written agreement of Acquiror,
Merger Sub, Devonian and the Devonian Stockholder; provided, however, that after the approval, if any, of this Agreement by the
Devonian Stockholder, no such amendment shall reduce or change the consideration to be received by any Devonian Stockholder in
connection with the Merger as set out in Section 1.3 hereof or shall otherwise adversely affect the rights under this Agreement
of the Devonian Stockholder without the approval of such adversely affected Devonian Stockholder. This Agreement may not be amended
except by an instrument in writing signed on behalf of Acquiror, the Acquiror, Devonian, the Principal Stockholders and the Stockholders’
Agent.

 

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ARTICLE
IX

MISCELLANEOUS

 

		9.1	STOCKHOLDERS’ AGENT.

 

(a)          Pursuant
to the Custody and Power of Attorney Agreement, each Devonian Stockholder has approved the terms of this Agreement and the transactions
contemplated hereby, and has constituted, appointed and empowered effective from and after the date of such approval of the Merger,
Austin Leasing Partners, LLC as the Stockholders’ Agent, for the benefit of the Devonian Stockholders and the exclusive agent
and attorney-in-fact to act on behalf of each Devonian Stockholder, in connection with and to facilitate the consummation of the
transactions contemplated hereby, which shall include but not be limited to the power and authority: (i) to execute and deliver
such waivers, consents and amendments (with respect to any and all matters or issues, including those which may have a negative
impact on an Devonian Stockholder, other than the unanimous written consent referred to in this sentence) under this Agreement
the Custody and Power of Attorney Agreement and the consummation of the transactions contemplated hereby or thereby as the Stockholders’
Agent, in its sole discretion, may deem necessary or desirable; (ii) as the Stockholders’ Agent, to enforce and protect the
rights and interests of the Devonian Stockholders arising out of or under or in any manner relating to this Agreement the Custody
and Power of Attorney Agreement, the Acquiror Shares, and the transactions provided for herein or therein, and to take any and
all actions which the Stockholders’ Agent believes are necessary or appropriate thereunder for and on behalf of the Devonian
Stockholders including, consenting to, compromising or settling any such claims, conducting negotiations with the Acquiror, Devonian
and their respective representatives regarding such claims, and, in connection therewith, to (A) assert any claim or institute
any action, proceeding or investigation; (B) investigate, defend, contest or litigate any claim, action, proceeding or investigation
initiated by the Acquiror, Devonian or any other Person, or by any Governmental Authority against the Stockholders’ Agent
and/or any of the Devonian Stockholders, and receive process on behalf of any or all Devonian Stockholders in any such claim, action,
proceeding or investigation and compromise or settle on such terms as the Stockholders’ Agent shall determine to be appropriate,
and give receipts, releases and discharges with respect to, any such claim, action, proceeding or investigation; (C) file any proofs
of debt, claims and petitions as the Stockholders’ Agent may deem advisable or necessary; (D) settle or compromise any claims
asserted under this Agreement or the Custody and Power of Attorney Agreement; and (E) file and prosecute appeals from any decision,
judgment or award rendered in any such action, proceeding or investigation, it being understood that the Stockholders’ Agent
shall not have any obligation to take any such actions, and shall not have any liability for any failure to take any such actions;
(iii) to refrain from enforcing any right of the Devonian Stockholders arising out of or under or in any manner relating to this
Agreement and the Custody and Power of Attorney Agreement; provided, however, that no such failure to act on the part of the Stockholders’
Agent, except as otherwise provided in this Agreement or the Custody and Power of Attorney Agreement, shall be deemed a waiver
of any such right or interest by the Stockholders’ Agent or by the Devonian Stockholders unless such waiver is in writing
signed by the waiving party or by the Stockholders’ Agent; (iv) to make, execute, acknowledge and deliver all such other
agreements, guarantees, orders, receipts, endorsements, notices, requests, instructions, certificates, stock powers, letters and
other writings, and, in general, to do any and all things and to take any and all action that the Stockholders’ Agent, in
its sole and absolute discretion, may consider necessary or proper or convenient in connection with or to carry out the transactions
contemplated by this Agreement or the Custody and Power of Attorney Agreement; (v) to engage special counsel, accountants and other
advisors and incur such other expenses on behalf of the Devonian Stockholders in connection with any matter arising under this
Agreement or the Custody and Power of Attorney Agreement; and (vi) to collect, hold and disburse any portion of the Merger Consideration
received by Stockholders’ Agent pursuant to the terms hereof in accordance with the terms of this Agreement.

 

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(b)          The
Stockholders’ Agent shall be entitled to receive reimbursement from, and be indemnified by, the Devonian Stockholders for
certain expenses, charges and liabilities as provided in the Custody and Power of Attorney Agreement. In connection with this Agreement,
and in exercising or failing to exercise all or any of the powers conferred upon the Stockholders’ Agent hereunder, (i) the
Stockholders’ Agent shall incur no responsibility whatsoever to any Devonian Stockholders by reason of any error in judgment
or other act or omission performed or omitted hereunder, excepting only responsibility for any act or failure to act which represents
willful misconduct, and (ii) the Stockholders’ Agent shall be entitled to rely on the advice of counsel, public accountants
or other independent experts experienced in the matter at issue, and any error in judgment or other act or omission of the Stockholders’
Agent pursuant to such advice shall in no event subject the Stockholders’ Agent to liability to any Devonian Stockholders.
Each Devonian Stockholder shall indemnify, severally and not jointly, based on such Devonian Stockholder’s Pro Rata Share,
the Stockholders’ Agent against all losses, damages, liabilities, claims, obligations, costs and expenses, including reasonable
attorneys’, accountants’ and other experts’ fees and the amount of any judgment against them, of any nature whatsoever
(including, but not limited to, any and all expense whatsoever reasonably incurred in investigating, preparing or defending against
any litigation, commenced or threatened or any claims whatsoever), arising out of or in connection with any claim, investigation,
challenge, action or proceeding or in connection with any appeal thereof, relating to the acts or omissions of the Stockholders’
Agent hereunder. The foregoing indemnification shall not apply in the event of any action or proceeding which finally adjudicates
the liability of the Stockholders’ Agent hereunder for its willful misconduct. In the event of any indemnification hereunder,
upon written notice from the Stockholders’ Agent to the Devonian Stockholders as to the existence of a deficiency toward
the payment of any such indemnification amount, each Devonian Stockholder shall promptly deliver to the Stockholders’ Agent
full payment of his or her Pro Rata Share of the amount of such deficiency.

 

(c)          All
of the indemnities, immunities and powers granted to the Stockholders’ Agent under this Agreement or the Custody and Power
of Attorney Agreement shall survive the Closing Date and/or any termination of this Agreement.

 

(d)          The
Acquiror and Devonian shall have the right to rely upon all actions taken or omitted to be taken by the Stockholders’ Agent
pursuant to this Agreement or the Custody and Power of Attorney Agreement, all of which actions or omissions shall be legally binding
upon the Devonian Stockholders.

 

(e)          The
grant of authority provided for herein (i) is coupled with an interest and shall be irrevocable and survive the death, incompetency,
bankruptcy or liquidation of any Devonian Stockholder and (ii) shall survive the consummation of the Merger, and any action taken
by the Stockholders’ Agent pursuant to the authority granted in this Agreement or the Custody and Power of Attorney Agreement
shall be effective and absolutely binding on each Devonian Stockholder notwithstanding any contrary action of or direction from
such Devonian Stockholder, except for actions or omissions of the Stockholders’ Agent finally adjudicated to constitute willful
misconduct.

 

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(f)          Each
of the Acquiror, Merger Sub and Devonian acknowledges and agrees that the Stockholders’ Agent is a party to this Agreement
and the Custody and Power of Attorney Agreement solely to perform certain administrative functions in connection with the consummation
of the transactions contemplated hereby. Accordingly, each of the Acquiror, Merger Sub and Devonian acknowledges and agrees that,
other than in the Stockholders’ Agent’s role as an Devonian Stockholder, the Stockholders’ Agent shall have no
liability to, and shall not be liable for any Claims of, any of the Acquiror, the Acquiror and Devonian or to any person in connection
with any obligations of the Stockholders’ Agent under this Agreement or the Custody and Power of Attorney Agreement or otherwise
in respect of this Agreement or the Custody and Power of Attorney Agreement or the transactions contemplated hereby, except to
the extent such Claims shall be proven to be the direct result of fraud, intentional or willful misconduct by the Stockholders’
Agent in connection with the performance any Stockholders’ Agent of its obligations hereunder.

 

(g)          Notwithstanding
anything contained herein to the contrary, the powers of the Stockholders Agent with respect to the Acquiror Shares held by any
Devonian Stockholder shall be limited to the extent necessary to prevent Stockholders Agent from being deemed to beneficially own
any Acquiror Shares owned by any other Devonian Stockholder or for the Devonian Stockholders to be deemed to be acting in concert
with respect to the Acquiror Shares owned by them.

 

		9.2	NOTICES.

 

All notices requests,
demands, waivers and other communications required or permitted to be given under this Agreement shall be in writing and shall
be deemed to have been duly given on the date if delivered personally, or upon the second business day after it shall have been
deposited by certified or registered mail with postage prepaid, or sent by telex, telegram or telecopier, as follows (or at such
other address or facsimile number for a party as shall be specified by like notice):

 

	a)           if to Devonian or to the Stockholders Representative, to it at:	 	 
	 	 	 
	
        Devonian Acquisition Corp.

        600 W. Germantown Pike, Suite 400

        Plymouth Meeting, PA 19462-1075
	 	 
	Attn: Stephen P. Harrington, President	 	 
	 	 	 
	and
	 	 	 
	b)           if to Acquiror or Merger Sub, to it at:	 	with a copy to:
	 	 	 
	
        Mitch Burroughs

        New Water Financial

        1716 W. Lincoln Avenue

        Suite #1

        Fort Collins, CO 80524
	 	
        Stephen M. Cohen, Esquire

        Fox Rothschild LLP

        2000 Market Street, Twentieth Floor

        Philadelphia, PA 19103

        Phone: (215) 299-2744

        Fax: (215) 299-2150

        Email: smcohen@foxrothschild.com

 

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		9.3	ENTIRE AGREEMENT; ASSIGNMENT.

 

This Agreement, including
all Exhibits and Schedules hereto, constitutes the entire Agreement among the parties with respect to its subject matter and supersedes
all prior agreements and understandings, both written and oral, among the parties or any of them with respect to such subject matter
and shall not be assigned by operation of law or otherwise.

 

		9.4	WAIVER OF CONFLICTS.

 

Fox Rothschild LLP
(“Fox Rothschild”) has previously acted, and currently acts, as counsel for Acquiror, Merger Sub and Devonian. In preparing
this Agreement, Fox Rothschild has not represented as an advocate any Party but rather has acted as a scrivener relying upon the
instructions of the Parties. Each Party, and each director, officer, member, and stockholder of a Party, have been encouraged to
seek their own counsel to advise them with respect to this Agreement and the transactions contemplated hereby, and waives any conflict
of interest to which Fox Rothschild may be subject.

 

		9.5	BINDING EFFECT; BENEFIT.

 

This Agreement shall
inure to the benefit of and be binding upon the parties and their respective successors and assigns. Nothing in this Agreement
is intended to confer on any person other than the parties to this Agreement or their respective successors and assigns any rights,
remedies, obligations or liabilities under or by reason of this Agreement.

 

		9.6	HEADINGS.

 

The descriptive headings
of the sections of this Agreement are inserted for convenience only, do not constitute a part of this Agreement and shall not affect
in any way the meaning or interpretation of this Agreement.

 

		9.7	COUNTERPARTS.

 

This Agreement may
be executed in two or more counterparts and delivered via electronic means or facsimile, each of which shall be deemed to be an
original, and all of which together shall be deemed to be one and the same instrument.

 

		9.8	GOVERNING LAW.

 

This Agreement shall
be governed by and construed in accordance with the laws of the State of Nevada, without regard to the laws that might otherwise
govern under principles of conflicts of laws applicable thereto.

 

		9.9	SEVERABILITY.

 

If any term, provision,
covenant or restriction of this Agreement is held by a court of competent jurisdiction or other authority to be invalid, void,
unenforceable or against its regulatory policy, the remainder of this Agreement shall remain in full force and effect and shall
in no way be affected, impaired or invalidated.

 

    	31

    	 

    

 

		9.10	RELEASE AND DISCHARGE.

 

BY OPERATION OF THE
CLOSING OF THE MERGER AND THEREAFTER, THE DEVONIAN STOCKHOLDERS, FOR AND ON BEHALF OF THEIR HEIRS, ASSIGNS, BENEFICIARIES, EXECUTORS
AND ADMINISTRATORS DO HEREBY FULLY AND IRREVOCABLY REMISE, RELEASE AND FOREVER DISCHARGE DEVONIAN , AND ITS SUBSIDIARIES, DIRECTORS,
OFFICERS, EMPLOYEES, AGENTS, ATTORNEYS, ACCOUNTANTS OF AND FROM ANY AND ALL MANNER OF CLAIMS, ACTIONS, CAUSES OF ACTION, GRIEVANCES,
LIABILITIES, OBLIGATIONS, PROMISES, DAMAGES, AGREEMENTS, RIGHTS, DEBTS AND EXPENSES (INCLUDING CLAIMS FOR ATTORNEYS’ FEES
AND COSTS), OF EVERY KIND, EITHER IN LAW OR IN EQUITY, WHETHER CONTINGENT, MATURE, KNOWN OR UNKNOWN, OR SUSPECTED OR UNSUSPECTED,
INCLUDING, WITHOUT LIMITATION, ANY CLAIMS ARISING UNDER ANY FEDERAL, STATE, LOCAL OR MUNICIPAL LAW, COMMON LAW OR STATUTE, WHETHER
ARISING IN CONTRACT OR IN TORT, AND ANY CLAIMS ARISING UNDER ANY OTHER LAWS OR REGULATIONS OF ANY NATURE WHATSOEVER, THAT STOCKHOLDERS
EVER HAD, NOW HAS OR MAY HAVE, FOR OR BY REASON OF ANY CAUSE, MATTER OR THING WHATSOEVER, FROM THE BEGINNING OF THE WORLD TO THE
DATE HEREOF; PROVIDED, HOWEVER, THAT SUCH RELEASE SHALL NOT CONSTITUTE A RELEASE OR WAIVER OF CLAIMS MADE UNDER AND
IN ACCORDANCE WITH THIS AGREEMENT.

 

		9.11	CERTAIN DEFINITIONS.

 

As used herein:

 

“Acquiror”
has the meaning set forth in introductory paragraph of this Agreement.

 

“Acquiror
Note” has the meaning set forth in Section 1.4 of this Agreement.

 

“Acquiror’s
Schedules” has the meaning set forth in the introductory paragraph to Section 3.3.

 

“Acquiror
Shares” means common stock of Acquiror.

 

“Affiliate”
of a Person means any other Person which, directly or indirectly, controls, is controlled by, or is under common control with,
such Person. The term “control” (including, with correlative meaning, the terms “controlled by” and “under
common control with”), as used with respect to any Person, means the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities,
by contract or otherwise.

 

“Agreement”
has the meaning set forth in the introductory paragraphs of this Agreement.

 

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“Ancillary
Agreements” means the documents, instruments and agreements to be executed and/or delivered pursuant to this Agreement
or any Ancillary Agreement including, without limitation, the Stockholders’ Schedules.

 

“Applicable
Law” or “Applicable Laws” means any and all laws, ordinances, constitutions, regulations, statutes,
treaties, rules, codes, licenses, certificates, franchises, permits, requirements and Injunctions adopted, enacted, implemented,
promulgated, issued or entered by or under the authority of any Governmental Authority having jurisdiction over a specified Person
or any of such Person’s properties or assets.

 

“Articles
of Merger” has the meaning set forth in Section 1.1(b) of this Agreement.

 

“Blue Sky
Laws” means the laws of any state, the District of Columbia, or any territory or other jurisdiction in the United States
governing the offer and/or sale of securities in such jurisdiction.

 

“Claim Notice”
has the meaning set forth in Section 6.3(a) of this Agreement.

 

“Claims”
has the meaning set forth in Section 6.1(a) of this Agreement.

 

“Closing”
has the meaning set forth in Section 2.1 of this Agreement.

 

“Closing Date”
has the meaning set forth in Section 2.1 of this Agreement.

 

“Code”
means the Internal Revenue Code of 1986, as amended, and any successor statute, and the rules and regulations promulgated thereunder.

 

“Confidential
Information” means and includes, with respect to a Party, any and all: (a) trade secrets concerning the business
and affairs of such Party, data, know-how, compositions, processes, designs, sketches, photographs, graphs, drawings, inventions
and ideas, past, current, and planned research and development, customer lists, current and anticipated customer requirements,
price lists, market studies, business plans, computer software and programs (including object code and source code), computer software
and database technologies, systems, structures and architectures (and related processes, formulae, composition, improvements, devices,
know-how, inventions, discoveries, concepts, ideas, designs, methods and information), and any other information, however documented,
that is a trade secret within the meaning of Applicable Law; and (b) information concerning the business and affairs of such Party,
which includes historical financial statements, financial projections and budgets, historical and projected sales, capital spending
budgets and plans, the names and backgrounds of key personnel and personnel training techniques and materials, however documented,
that has been or may hereafter be provided or shown to a receiving Party by such Party or by the directors, officers, employees,
agents, consultants, advisors, or other representatives including legal counsel, accountants and financial advisors of such Party
or is otherwise obtained from review of such Party’s documents or property or discussions with such Party or its representatives,
irrespective of the form of the communication, and also includes all notes, analyses, compilations, studies, summaries, and other
material prepared by the receiving Party based, in whole or in part, on any information included in the foregoing.

 

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“Custody and
Power of Attorney Agreement” has the meaning set forth in Section 2.2(a)(ii) of this Agreement.

 

“Devonian
” has the meaning set forth in the introductory paragraph of this Agreement.

 

“Devonian
Common Stock” has the meaning set forth in Section 1.2(a)(i) of this Agreement.

 

“Devonian
Stockholder” and “Devonian Stockholders” has the meaning set forth in Section 1.3(a) of this Agreement.

 

“Devonian
Shares” means 100% of the Devonian Common Stock and 100% of the Devonian Preferred Stock .

 

“NRS”
has the meaning set forth in Section 1.1(a) of this Agreement.

 

“Dissenting
Shares” has the meaning set forth in Section 1.5 of this Agreement.

 

“Effective
Time” has the meaning set forth in Section 1.1(b) of this Agreement.

 

“Encumbrance”
means and includes:

 

(a)          with
respect to any personal property, any intangible property or any property other than real property, any security or other property
interest or right, claim, lien, pledge, option, charge, security interest, contingent or conditional sale, or other title claim
or retention agreement or lease or use agreement in the nature thereof, interest or other right or claim of third parties, whether
voluntarily incurred or arising by operation of law, and including any agreement to grant or submit to any of the foregoing in
the future; and

 

(b)          with
respect to any real property (whether and including owned real estate or leased real estate), any mortgage, lien, easement, interest,
right of way, condemnation or eminent domain proceeding, encroachment, any building, use or other form of restriction, encumbrance
or other claim (including adverse or prescriptive) or right of third parties (including Governmental Authorities), any lease or
sublease, boundary dispute, and agreements with respect to any real property including: purchase, sale, right of first refusal,
option, construction, building or property service, maintenance, property management, conditional or contingent sale, use or occupancy,
franchise or concession, whether voluntarily incurred or arising by operation of law, and including any agreement to grant or submit
to any of the foregoing in the future.

 

“GAAP”
means generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board
and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards
Board (or agencies with similar functions of comparable stature and authority within the accounting profession), or in such other
statements by such entity as may be in general use by significant segments of the U.S. accounting profession, which are applicable
to the facts and circumstances on the date of determination.

 

    	34

    	 

    

 

“Governmental
Authority” means any: (a) U.S. federal or state government; or (b) U.S. federal or state governmental authority (including
any governmental agency, branch, board, commission, department, instrumentality, office or other entity, and any court or other
tribunal).

 

“Indemnitee”
has the meaning set forth in Section 6.3(a) of this Agreement.

 

“Indemnitor”
has the meaning set forth in Section 6.3(a) of this Agreement.

 

“Injunction”
means any and all writs, rulings, awards, injunctions (whether temporary, preliminary or permanent), judgments, decrees or orders
(whether executive, judicial or otherwise) adopted, enacted, implemented, promulgated, issued or entered by or under the authority
of any Governmental Authority.

 

“Knowledge”
means (i) with respect to Devonian or the Principal Stockholders, that any one or more of the Principal Stockholders and each of
the Key Employees have actual knowledge of the relevant fact, matter or circumstance, prior to or as of the date of this Agreement
and without any obligation of the Principal Stockholders to undertake an independent investigation of such fact or circumstance,
and (ii) with respect to Acquiror, the actual knowledge of the each executive officer or Person of Acquiror.

 

“Liability”
or “Liabilities” means any and all debts, liabilities and/or obligations of any type, nature or description
whether known or unknown, absolute or contingent, accrued or unaccrued, disputed or undisputed, liquidated or unliquidated, secured
or unsecured, joint or several, due or to become due, vested or unvested, executory, determined, determinable or otherwise solely
to the extent such liabilities and obligations, if known, are or would be required to be accrued or noted on any financial statements
prepared in accordance with GAAP.

 

“Material
Adverse Effect” means, with respect to any Person, entity or group of entities, any event, change or effect that, individually
or in the aggregate, has or is reasonably expected to have a material adverse effect on the condition (financial or otherwise),
properties, assets, Liabilities, revenues, income, business, operations or results of operations of such Person and its subsidiaries,
taken as a whole, or on the ability to consummate the Merger or any of the other transactions contemplated by this Agreement, other
than any event, change, fact, circumstance or condition caused by (i) any adverse change to the United States or global economy
in general (provided that such change does not affect the business, results of operations or financial condition of such
Person in a disproportionate adverse manner), (ii) any adverse change in general to the industries in which Devonian operates (provided
that such change does not affect the business, results of operations or financial condition of such Person in a disproportionate
adverse manner), (iii) any adverse change to financial, banking or securities markets (including any disruption thereof and any
decline in the price of any security or any market index) (provided that such change does not affect the business, results of operations
or financial condition of such Person in a disproportionate adverse manner), (iv) the announcement of the Agreement and/or the
announcement of any of the transactions contemplated hereunder, the fulfillment of the parties’ obligations hereunder or
the consummation of the transactions contemplated by this Agreement, or (v) any outbreak or escalation of hostilities or act of
terrorism involving the United States or any declaration of war by the United States.

 

    	35

    	 

    

 

“Merger”
has the meaning set forth in Section 1.1(a) of this Agreement.

 

“Merger Consideration”
has the meaning set forth in Section 1.2(a)(i) of this Agreement.

 

“Merger Sub”
has the meaning set forth in the introductory paragraph of this Agreement. 

 

“Minority
Stockholders” means all of the stockholders of Devonian other than the Principal Stockholders.

 

“NRS”
has the meaning set forth in Section 1.1(a) of this Agreement.

 

“Ordinary
Course of Business” means an action taken by a Person if such action is consistent with the past practices of such Person
and is taken in the ordinary course of the normal day-to-day operations of such Person.

 

“Party”
and “Parties” has the meaning set forth in the introductory paragraph of this Agreement.

 

“Permitted
Encumbrances” means (i) Encumbrances for Taxes, assessments and other governmental charges not yet due and payable as
of the Closing Date; (ii) zoning, building and other land use laws imposed by a Governmental Authority having jurisdiction, and
all Encumbrances of record (other than monetary Encumbrances), that, individually or in the aggregate, do not materially interfere
with the operation of the business or the occupancy, use, value or marketability of the assets subject thereto; and (iii) those
Encumbrances that are specifically listed on the Stockholders’ Schedule.

 

“Person”
means any individual, corporation (including any non profit corporation), general, limited or limited liability partnership, limited
liability company, joint venture, estate, trust, association, organization, or other entity or Governmental Authority.

 

“Principal
Stockholders” has the meaning set forth in the introductory paragraph of this Agreement.

 

“Pro Rata
Share” means, with respect to a Devonian Stockholder, the percentage of the total Merger Consideration received such
Devonian Stockholder, with each share of Acquiror Preferred Stock equal to one quarter (1/4) of a share of Acquiror Common Stock.

 

“Proceeding”
means any suit, litigation, arbitration, hearing, audit, investigation or other action (whether civil, criminal, administrative
or investigative) commenced, brought, conducted, or heard by or before, or otherwise involving, any Governmental Authority or arbitrator.

 

“Related Person”
or “Related Persons” means, with respect to a natural Person: each Family Member; and any Affiliate of a Family
Member. With respect to any other Person: any Affiliate of such Person; and each Person that serves as a director, governor, officer,
manager, general partner, executor or trustee of such Person (or in a similar capacity).

 

    	36

    	 

    

 

“Rights”
means any and all outstanding subscriptions, warrants, options, voting agreements, voting trusts, proxies, or other arrangements
or commitments obligating or which may obligate a Person to dispose of or vote any securities, including, without limitation, the
Shares.

 

“Stockholders’
Agent” has the meaning set forth in the introductory paragraphs to this Agreement.

 

“Stockholders’
Schedules” has the meaning set forth in the introductory paragraph to Section 3.1.

 

“Special Meeting”
has the meaning set forth in Section 1.6(a) of this Agreement.

 

“Surviving
Corporation” has the meaning set forth in Section 1.1(a) of this Agreement.

 

“Tax”
or “Taxes” means any and all net income, gross income, gross revenue, gross receipts, net receipts, ad valorem,
franchise, profits, transfer, sales, use, social security, Medicare, employment, unemployment, disability, license, withholding,
payroll, privilege, excise, value added, severance, stamp, occupation, property, customs, duties, real estate and/or other taxes,
assessments, levies, fees or charges of any kind whatsoever imposed by any Governmental Authority, together with any interest or
penalty relating thereto.

 

“Tax Return”
or “Tax Returns” means any return, declaration, report, claim for refund or information return or statement
relating to Taxes, including, without limitation, any schedule or attachment thereto, any amendment thereof.

 

“Termination
Date” shall mean May 1, 2013.

 

“Threatened”
means that a claim, Proceeding, dispute, action, or other matter will be deemed to have been “Threatened” if any demand
or statement has been made in writing, or any notice has been given in writing that would lead a reasonably prudent Person to conclude
that such a claim, Proceeding, dispute, action, or other matter will, with substantial certainty, be asserted, commenced, taken
or otherwise pursued in the future; provided, however, that the foregoing shall not include customer billing disputes
in the Ordinary Course of Business.

 

[Remainder of page intentionally left
blank.]

 

    	37

    	 

    

 

IN WITNESS WHEREOF,
Acquiror, Devonian, the Principal Stockholders and the Stockholders’ Agent have caused this Agreement to be signed in their
own capacity or by their respective officers hereunto duly authorized, as applicable, all as of the date first written above.

 

	 	ARMADA WATER ASSETS, INC., 
	 	a Nevada corporation
	 	 	 
	 	By: 	/s/ Mitch Burroughs
	 	Name: Mitch Burroughs
	 	Title: President
	 	 	 
	 	DAC CORP.,
	 	a Nevada corporation
	 	 	 
	 	By:  	/s/ Stephen P. Harrington
	 	Name: Stephen P. Harrington
	 	Title: President
	 	 	 
	 	Devonian Acquisition Corporation,
	 	a Nevada corporation
	 	 	 
	 	By: 	/s/ Stephen P. Harrington
	 	Name: Stephen P. Harrington
	 	Title: Chief Executive Officer
	 	 	 
	 	PRINCIPAL STOCKHOLDERS:
	 	 
	 	AUSTIN LEASING PARTNERS, LLC
	 	By:  	DIT Equity Holdings, LLC,
	 	 	Managing Member
	 	By:  	RMS Investment Advisors, Inc.,
	 	 	Managing Member
	 	 	 
	 	By:	/s/ Kyung Won Lee
	 	 	Kyung Won Lee, President
	 	 	Class of Devonian Shares: Series A Preferred Stock
	 	 	Number of Shares: 1,750,000

 

[Signature Page to Agreement and Plan
of Merger]

 

    	 

    	 

    

 

	 	AUSTIN WATER HOLDINGS, LLC
	 	 	 
	 	By:	/s/ M.Austin Smith
	 	 	M. Austin Smith, Managing Member
	 	 	Class of Devonian Shares: Series A Preferred Stock
	 	 	Number of Shares: 1,750,000
	 	 	 
	 	/s/Don L. Washington
	 	DON L. WASHINGTON
	 	Class of Devonian Shares: Series A Preferred Stock
	 	Number of Shares: 1,750,000
	 	 
	 	/s/ Arnaldo Huerta
	 	ARNALDO HUERTA
	 	Class of Devonian Shares: Series A Preferred Stock
	 	Number of Shares: 1,750,000
	 	 
	 	/s/ Thomas R. Brown, Jr.
	 	THOMAS R. BROWN, JR.
	 	Class of Devonian Shares: Series A Preferred Stock
	 	Number of Shares: 1,000,000
	 	 
	 	STOCKHOLDERS’ AGENT:
	 	 
	 	AUSTIN LEASING PARTNERS, LLC
	 	By:  	DIT Equity Holdings, LLC, Manager
	 	By:  	RMS Investment Advisors, Inc., Manger
	 	 	 
	 	By:	/s/ Kyung Won Lee
	 	 	Kyung Won Lee, President

 

[Signature Page to Agreement and Plan
of Merger]

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