Document:

dais_ex102.htm

EXHIBIT 10.2

 

PATENT SECURITY AGREEMENT

This PATENT SECURITY AGREEMENT (this “Agreement”) is made on this 13th day of July, 2012 between Dais Analytic Corporation ("Debtor"), and holder of Secured Convertible Promissory Note dated July 13, 2012   ("Secured Party").

1. SECURITY INTEREST.  Debtor hereby grants to Secured Party a security interest in (i) all rights, title, and interest in all patents, patent applications and like protections now owned or hereafter acquired by Debtor and listed on Schedule I attached hereto (which Schedule may be updated by the Secured Party from time to time), including, without limitation, improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same and the proceeds therefrom and (ii) all rents, royalties, license fees and “accounts” (as defined in the Uniform Commercial Code of the State of Illinois) with respect to all of the foregoing items in clause (i)  (all of the foregoing, collectively, the “Collateral”).  The security interest granted hereunder shall secure the payment and performance of Debtor's obligations under the secured convertible promissory note issued on or about the date hereof by the Debtor to the Secured Party in the principal amount of Two Million Dollars ($2,000,000) (the “Note”), and the full, prompt and complete payment and performance when due (whether at stated maturity, by acceleration or otherwise) of all other liabilities and obligations of Debtor to the Secured Party due or to become due or hereafter arising under this Agreement or in connection with the Note (the “Obligations”).

2. COVENANTS.  Debtor hereby warrants and covenants that during the course of this Agreement: (a)  The Debtor's place of business is 11552 Prosperous Drive, Odessa, Florida, 33556 and Debtor will immediately notify Secured Party in writing of any change in or discontinuance of Debtor's place of business; (b) Debtor will not sell, dispose, or otherwise transfer all or any portion of the Collateral or any interest therein other than license grants made by Debtor in the ordinary course of business, consistent with past practice and on an arm’s-length basis, in each case, without the prior written consent of Secured Party; (c) Debtor shall file this Agreement with the U.S. Patent and Trademark Office no later than ten (10) days after issue of the Note; (d) Debtor shall, from time to time, execute and file such other documents and instruments, and take such further actions as the Secured Party may reasonably request to perfect or continue the perfection of Secured Party’s interest in the Collateral, and Debtor authorizes Secured Party to file Uniform Commercial Code financing statements with respect to the Collateral and the security interest granted herein; (e) to Debtor’s knowledge, this Agreement creates in favor of Secured Party a valid first priority security interest in the Collateral in the United States securing the payment and performance of the obligations evidenced by the Note; and (f) the Debtor shall comply with the covenants set forth on Annex A hereto.

3. DEFAULT.  The following are each an event of default under this Agreement (each, an “Event of Default”): (a) any material misrepresentation relating to this Agreement or the Note on the part of the Debtor, (b) any material noncompliance with or nonperformance of the Debtor's obligations under the Noteor this Agreement, (c) if Debtor makes (i) an assignment for the benefit of creditors, or is subject to (ii) an attachment or receivership of assets that is not dissolved, or (iii) is subject to the institution of Bankruptcy proceedings, whether voluntary or involuntary, and (d) any Event of Default as defined in the Note.  Should an Event of Default occur, Secured Party shall provide Debtor with written notice detailing the Event of Default. Debtor shall have fifteen (15) days from receipt of said notice to cure such default.  Should Debtor fail to cure within the prescribed time period, Secured Party may at any time thereafter declare the Note in default and all obligations secured hereby immediately due and payable and shall have the remedies of a secured party under the Uniform Commercial Code of  the State of Illinois.  Secured Party may require the Debtor to make the collateral provided hereunder available to the Secured Party at a place which is mutually convenient. No waiver by Secured Party of any default shall operate as a waiver of any other default or of the same default on a future occasion. This Agreement shall inure to the benefit of and bind the heirs, executors, administrators, successors, and assigns of the parties. This Agreement shall have the effect of an instrument under seal.

 

  

1

  

3.  TERM.  This Agreement shall create a continuing security interest in the Collateral and shall remain in full force and effect until the Obligations have been paid in full.  Upon satisfaction of the Obligations, the Secured Party shall execute and deliver such releases or other evidences of satisfaction and release of this Agreement as may be reasonably requested by the Debtor.

4. MISCELLANEOUS.  Notwithstanding Section 3 above, this Agreement shall remain in full force and effect and continue to be effective should any petition be filed by or against the Debtor for liquidation or reorganization, should the Debtor become insolvent or make an assignment for the benefit of any creditor or creditors or should a receiver or trustee be appointed for all or any significant part of the Debtor's assets, and shall continue to be effective or be reinstated, as the case may be, if at any time payment and performance of the Debtor’s obligations to the Secured Party under the Note, or any part thereof, is, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee of such obligations, whether as a "voidable preference," "fraudulent conveyance," or otherwise, all as though such payment or performance had not been made. In the event that any payment, or any part thereof, is rescinded, reduced, restored or returned, the obligations of the Debtor to the Secured Party under the Note shall be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned.  This Agreement shall be governed by the laws of  the State of Illinois , without regard to its conflict of laws provisions.  Any suit for the enforcement of the obligations of Debtor to the Secured Party, arising out of or in any manner relating to this Agreement may be brought in the courts of the City of Chicago, State of Illinois or of the United States of America sitting in Chicago, Illinois and the parties hereto consents to the non-exclusive jurisdiction of such courts.  The Debtor hereby waives any objection that it may now or hereafter have to the venue of any such suit or any such court or that such suit was brought in an inconvenient court.  The Debtor shall not be entitled in any such action or proceeding to assert any defense given or allowed under the laws of any state other than the State of Illinois unless such defense is also given or allowed by the laws of the State of Illinois.

 

[Signature Page Follows]

 

  

2

  

 

IN WITNESS WHEREOF, the parties hereto have duly executed this agreement as of the date first written above.

 

	
Debtor:

	 
	 	 
	
DAIS ANALYTIC CORPORATION

	 
	 	 	 
	
By: 

	/s/ Timothy N. Tangredi	 
	 	Timothy N. Tangredi	 
	 	President and Chief Executive Officer	 
	 	 	 
	 	 	 
	
Secured Party:

	 
	 	 	 
	 	
/s/ M. Gostomski

	 
	 	
M. Gostomski

	 

 

[Patent Security Agreement

dated July 13, 2012]

 

  

3

  

Schedule i

to Patent Security Agreement

 

	 	1.	Patent No. 6,841,601– Cross-linked polymer electrolyte membranes for heat and moisture exchange devices. This patent was issued on January 11, 2005.
	 	 	 
	
  

	
2.

	
Patent No. 6,413,298 – Water and ion-conducting membranes and uses thereof. This patent was issued on July 2, 2002.

 

	  	
3.

	
Patent No. 6,383,391 – Water and ion-conducting membranes and uses thereof. This patent was issued on May 7, 2002.

 

	  	
4.

	
Patent No. 6,110,616 – Ion-conducting membrane for fuel cell. This patent was issued on August 29, 2000.

 

	  	
5.

	
Patent No. 5,679,482 – Fuel Cell incorporating novel ion-conducting membrane. This patent was issued on October 21, 1997.

 

	  	
6.

	
Patent No. 5,468,574 – Fuel Cell incorporating novel ion-conducting membrane. This patent was issued on October 21, 1995.

 

	  	
7.

	
Patent No. 7,179,860 – Cross-linked polymer electrolyte membranes for heat, ion and moisture exchange devices. This patent was issued on February 20, 2007.

 

	  	
8.

	
U.S. Application No: 11/879,482– Nanoparticle Ultra Capacitor

 

	  	
9.

	
Patent Application  U.S. -12/442,582– Enhanced HVAC System and Method

 

	  	
10.

	
Patent Application  China-  200880009211.4 - Multiphase Selective Transport Through a Membrane

 

	  	
11.

	
Patent Application  U.S. - #12/523,470 - Multiphase Selective Transport Through a Membrane

 

	  	
12.

	
Patent Application  Europe – 08728059.0- Multiphase Selective Transport Through a Membrane

 

	  	
13.

	
Patent Application  Hong Kong – 10106074.4 - Multiphase Selective Transport Through a Membrane

 

	  	
14.

	
Patent Application  China–  200880023707.7 - Molecule Sulphonation Process*

 

	  	
15.

	
Patent Application  U.S. – #12/599,200 - Molecule Sulphonation Process*

 

	  	
16.

	
Patent Application U.S.– #12/664,762 - Stable and Compatible Polymer Blends*

 

_________________________________________

* Patent applications jointly owned with Aegis Biosciences, LLC.

 

[Patent Security Agreement

dated July 13, 2012]

 

  

4

  

 

Schedule i

to Patent Security Agreement, Continued

 

	  	
17.

	
Patent Application Europe- 08771840.9- Stable and Compatible Polymer Blends*

 

	  	
18.

	
Patent Application Hong Kong- Stable and Compatible Polymer Blends [unpublished]*

 

	  	
19.

	
Patent Application China- 200880103522.7 - Stable and Compatible Polymer Blends*

 

	  	
20.

	
Patent  Application  U.S.- # 11/988,818– Novel Coblock Polymers and Methods for Making Same

 

	  	
21.

	
Patent Application –Energy Storage Devises Including a Multilayer Electrolyte [unpublished]

 

	  	
22.

	
Anionic Exchange Electrolyte Polymer Membranes [unpublished]

 

	
 

	
23.

	
PROVISIONAL Patent  Application- Air Conditioning and Refrigeration Based on Molecular transport of Water [unpublished]

_________________________________________

* Patent applications jointly owned with Aegis Biosciences, LLC.

 

[Patent Security Agreement

dated July 13, 2012]

 

  

5

  

Annex A – Additional Covenants

	
1.  

	
The Debtor shall give the Secured Party prompt written notice of any non provisional published patent application filed with the United States Patent and Trademark Office or any similar office or agency, and, upon the request of the Secured Party, the Debtor shall execute and deliver a supplement hereto (in form and substance satisfactory to the Secured Party) to evidence the Secured Party's security interest in and lien on such patent of the Debtor relating thereto or represented thereby.

 

	
2.  

	
The Debtor shall take all actions reasonably necessary to prosecute to allowance applications for patents and maintain all patents (now or hereafter existing)

 

	
3.  

	
The Debtor shall take all steps reasonably necessary, in its good faith business judgment, to seek to recover any and all damages for infringement, misappropriation or dilution of the Collateral, unless such infringement, misappropriation or dilution could not reasonably be expected to have a material adverse effect on the Debtor or its ability to satisfy the Obligations or unless the Debtor determines, in its good faith business judgment, that seeking recovery for such infringement, misappropriation or dilution is uneconomical or otherwise not in the best interests of the Debtor.  Upon the occurrence and during the continuance of any event of default under the Note (an “Event of Default”), the Secured Party shall have the right to exercise all rights and remedies available at law or in equity.  From and after the occurrence and during the continuance of an Event of Default, the Secured Party shall have the right, but shall not be obligated, to bring suit or take any other action to enforce the Collateral and, if the Secured Party shall commence any such suit or take any such action, Debtor shall, at the request of the Secured Party, do any and all reasonable lawful acts and execute any and all proper documents reasonably required by the Secured Party in aid of such enforcement.

	
4.  

	
The Debtor shall not create, cause to be crated or permit to exist any lien, security interest or encumbrance on any portion of the Collateral in favor of any person or entity other than the Secured Party.

 

[Patent Security Agreement

dated July 13, 2012]

 

 

6Exhibit 10.1

 

ASSET PURCHASE AGREEMENT

 

This Asset Purchase Agreement (this “Agreement”)
is made as of November 1, 2011, by and between Solar Energy Initiatives, Inc, a Delaware corporation (SNRY) (“Buyer”),
and Social Fly Marketing Inc. (DBA Internet Digital Marketing, Inc.) (IDM) (“Seller”), a Florida corporation. Buyer and
Seller are sometimes referred to individually as a “Party” and together as “Parties.”

 

PRELIMINARY STATEMENTS:

 

Seller is a party to all
assets listed on Exhibit A (collectively the “Asset List”).

 

Seller desires to assign
and sell, and Buyer has agreed to assume and purchase, (i) all of Seller’s rights, use and obligations in and to the Asset List
(Exhibit A).

 

NOW, THEREFORE, in consideration of these preliminary
statements and the mutual covenants, representations, warranties and agreements hereinafter set forth, and for other good and valuable
consideration, the receipt and sufficiency of which the Parties hereby acknowledge, the Parties hereby agree as follows:

 

1. PURCHASED ASSETS; EXCLUDED ASSETS;

 

1.1 Purchased Assets and Rights. Subject
to the terms and conditions of this Agreement, on the Closing Date (as defined in Section 3.1), Seller will sell to Buyer, and
Buyer will purchase from Seller:

 

(i) all of Seller’s right,
title and interest in and to the Asset List (Exhibit A), collectively, the “Purchased Assets”.

 

Seller shall transfer the Purchased Assets
free and clear of all security interests, liens, restrictions, claims, encumbrances or charges of any kind.

 

1.2 Limited Liabilities Assumed. Buyer,
effective as of the Closing Date, will assume Seller’s rights and obligations arising on or after the Closing Date under (i) the
Asset List identified on Exhibit A attached hereto. Subject to the preceding sentence or except as otherwise expressly set out
in this Agreement, the parties acknowledge that the Buyer assumes no other obligations or liabilities of the Seller.

 

1.3 Excluded Assets. Except as expressly
set forth herein, the Purchased Assets shall not include cash in the bank, and does not set exclusivity rights for Buyer (collectively,
the “Excluded Assets”).

 

Initial _______/________1

 

    	 

    	 

    

 

2. PURCHASE PRICE

 

2.1 Purchase Price; Payment. Subject
to Section 2.2, the consideration to be paid by Buyer to Seller for the Purchased Assets will be Two Hundred Thirty Thousand Dollars
($230,000) upon Close Date (the “Purchase Price”). The Purchase Price will be paid at closing by the delivery of:

 

		(i)	Issuance of 100,000,000 common stock of SNRY as payment in full on or before Close Date.

		(ii)	$30,000.00 cash payment within 30 days of closing

 

2.2 Obligations. Seller will be responsible
for any and all expenses that accrue or arise under the Transferred Agreements or relating to Seller’s business (the “Seller
Expenses”) on or prior to the Closing Date. Seller will be responsible for, and shall promptly pay when presented, all valid
vendor invoices relating to expenses prior to Closing Date. Should any such invoice be presented to Buyer, Buyer shall promptly
notify Seller of such fact. Seller shall pay such invoice within 10 days, failing which Buyer may authorize payment from the Escrow
or seek recovery from Seller.

 

2.3 Taxes. All transfer, sales or similar
tax due to the State of Florida as a result of this transaction will be paid by Buyer. All other transfer, sales or similar tax
due as a result of this transaction will be paid by the party upon whom such taxes are imposed by law.

 

3. CLOSING.

 

3.1 Closing Date. Subject to the terms
and conditions of this Agreement, the closing of the transactions (the “Closing”) contemplated by this Agreement shall
occur at a mutually acceptable place and time within five (5) days after the last of the conditions to Closing set forth in Sections
7.1 and 7.2 have been satisfied or waived by the Party or Parties entitled to waive the same, or such other date and time as to
which Buyer and Seller may agree in writing; provided that, at Buyer’s option, the Closing may take place on the last day of the
month in which the conditions set forth in Sections 7.1 and 7.2 have been satisfied (the “Closing Date”), and to be no
later than November 30, 2011.

 

Initial _______/________2

 

    	 

    	 

    

 

3.2 Actions to be taken at the Closing.
At the Closing, the Parties will take the following actions and deliver the following documents:

 

(a) Seller will deliver
to Buyer: 

 

	1)		a duly executed Assignment and Assumption Agreement, in substantially the form attached
hereto as Exhibit C.

	 		 

	2)		a duly executed bill of sale, in substantially the form attached hereto as Exhibit
C.

	 		 

	3)		all required consents of third parties to the sale, conveyance, transfer, assignment
and delivery of the Purchased Assets, the consent of the Asset List.

	 		 

	4)		intentionally left blank

	 		 

	5)		a secretary’s certificate, certifying resolutions of the board of directors and shareholders
of Seller approving the sale of the Purchased Assets.

	 		 

	6)		a certificate of Heather Rich certifying as to the truth and correctness of Seller’s
representations and warranties to the best of Seller’s knowledge as of the Closing Date and that all of Seller’s obligations that
are to be performed prior to Closing have been performed.

 

(b) Buyer will deliver
to Seller:

 

	1)		100,000,00 stock certificate of SNRY Common Stock

	2)		Payment of $30,000.00 within 30 days after closing

	3)		a duly executed Assignment and Assumption Agreement in substantially the form attached
as Exhibit B.

	4)		a secretary’s certificate, certifying resolutions of the board of directors of Buyer
approving the purchase of the Purchased Assets,

	5)		an officer’s certificate certifying as to the truth and correctness of Buyer’s representations
and warranties to the best of Buyer’s knowledge as of the Closing Date and that all of Buyer’s obligations that are to be performed
prior to Closing have been performed.

 

(c) The Parties will take
such other actions and will execute and deliver such other instruments, documents and certificates as are required by the terms
of this Agreement and the agreements executed in connection herewith (the “Related Agreements”) or as may be reasonably
requested by any Party in connection with the consummation of the transactions contemplated herein.

 

Initial _______/________3

 

    	 

    	 

    

 

4. REPRESENTATIONS; WARRANTIES.

 

4.1 Seller Representations. Seller represents
and warrants to Buyer as of the date hereof, and as of the Closing Date as follows:

 

(a) Seller is a corporation
duly organized, validly existing and in good standing under the laws of the State of Florida. Seller has full power and lawful
authority to enter into this Agreement and all Related Agreements, and consummate the transactions contemplated hereby and thereby.

 

(b) This Agreement and
the Related Agreements have each been duly authorized by all necessary action on the part of Seller, including shareholder authorization.
This Agreement constitutes, and when executed, the Related Agreements each will constitute, the legal, valid and binding obligation
of Seller, enforceable in accordance with their respective terms. Seller’s execution, delivery and performance of this Agreement
and the Related Agreements will not;

 

(i) constitute a breach or violation of Seller’s
incorporation documents or bylaws, (ii) constitute a breach or violation of any law, rule, regulation, material agreement, indenture,
deed of trust, mortgage, loan agreement or any material instrument to which Seller is a party, (iii) constitute a violation of
any order, judgment or decree by which Seller is bound or affected, or the creation of any lien or charge thereon.

 

(c) No consent, license,
approval or authorization of, or filing, registration or waiver or other action by, any governmental authority or any third party
is or will be required in connection with the execution, delivery or performance by Seller of this Agreement or any agreement executed
in connection herewith except those consents which Seller shall deliver to Buyer before Closing.

 

(d) Exhibit A sets forth a complete list Asset
List to which Seller is a party all of which are being sold to Buyer hereunder. There is no suit or proceeding pending or threatened,
relating in any way to, any listing in the Purchased Assets, or that could otherwise impair Seller’s ability to perform its obligations
hereunder. Neither Seller nor any other party thereto is in breach of or in default under any contract included in the Purchased
Assets nor has any notice or claim with respect to any breach or default thereunder been given. Seller has not made any oral representations
or warranties to any person with respect to the Purchased Assets, nor has it offered to provide any services. The Purchased Assets
constitute all assets currently utilized by Seller in the operation of its development business and related businesses, other than
the Excluded Assets.

 

(e) All financial information
relating to the Purchased Assets that has been provided by Seller, or its agents, to Buyer is true and complete and has been prepared
in accordance with sound financial practices applied on a consistent basis.

 

Initial _______/________4

 

    	 

    	 

    

 

(f) Neither this Agreement
nor any schedules, certificates or other document or information provided by Seller to Buyer in connection with this Agreement
or the Related Agreements or the transactions contemplated hereby contains or will contain any untrue statement of a material fact
or omits to state a material fact necessary to make the statements so made not misleading, at the time such statements were made
and through the time of the Closing Date.

 

(g) Neither the Seller,
nor any of its shareholders, officers, employers or agents, has employed any financial advisor, broker or finder or incurred any
liability for any financial advisory, brokerage or finder’s fee or commission in connection with this Agreement, and the Related
Agreements, or the transactions contemplated by such agreements for which Buyer could become liable or obligated.

 

(h) Seller has not received
any proceeds with respect to the Purchased Assets that relate in whole or part to any period after the Closing Date.

 

(i) Seller has provided
all financial data that is material to Seller, its operations or financial condition.

(j) Seller is not voluntarily
or involuntary in bankruptcy.

 

4.2 Buyer Representations. Buyer represents
and warrants to Seller as follows:

 

(a) Buyer is a corporation
duly organized, validly existing and in good standing under the laws of the State of Nevada and has the corporate power and authority
to enter into this Agreement and the Related Agreements and to consummate the transactions contemplated by this Agreement and the
Related Agreements.,

 

(b) Prior to the Closing,
this Agreement and each Related Agreement will have been duly authorized by all necessary regulatory authorities and corporate
action on the part of Buyer. This Agreement constitutes and, when executed, the Related Agreements will constitute, the legal,
valid and binding obligations of Buyer, enforceable in accordance with their respective terms.

 

(c) Neither Buyer, nor
any of its Shareholders, officers, employees or agents have employed any financial advisor, broker or finder or incurred any liability
for any financial advisory, brokerage or finder’s fee or commission in connection with this Agreement, the Related Agreements or
the transactions contemplated by such agreements for which Seller could become liable or obligated.

 

(d) Buyer has been provided
and has received all financial information related to the Purchased Assets which it has requested of Seller as of the date hereof.

 

Initial _______/________5

 

    	 

    	 

    

 

5. CERTAIN COVENANTS AND AGREEMENTS.

 

5.1 Approvals and Consents. Prior to
Closing, Seller will obtain, in writing and without penalty to Buyer, all necessary approvals and consents required in order to
authorize and approve this Agreement and the Related Agreements, and to consummate the assignment to, and assumption by, Buyer
of the Purchased Assets.

 

5.2 Cooperation. Each of the Parties
hereto will use its best efforts in good faith to perform and fulfill all conditions and obligations to be fulfilled or performed
by it hereunder.

 

5.3 Access to Properties, Records and Personnel;
Inspection. Seller shall give Buyer and its counsel, accountants and other representatives full access during normal business
hours to all of the properties, personnel, financial and operating data, books, tax returns, contracts, commitments and records
of Seller to the extent that they relate to the Purchased Assets.

 

5.4 Notices. Each of Buyer and Seller
will promptly notify the other in writing if it receives any notice, or otherwise becomes aware, of any action or proceeding instituted
or threatened before any court or governmental agency by any third party to restrain or prohibit, or obtain damages in respect
of this Agreement or any Related Agreement or the consummation of the transactions contemplated hereby or thereby.

 

5.5 Further Assurances. Each Party will
execute and deliver any further instruments or documents, and take all further action, reasonably requested by the other Party
to carry out the transactions contemplated by this Agreement and the Related Agreements.

 

5.6 Indemnification by Seller. The Seller
will indemnify, defend and hold the Buyer, its Affiliates (as defined below) and their respective stockholders, directors, officers,
employees, legal representatives, agents, successors and assigns (the “Indemnified Parties”) harmless from and against
any and all claims, judgments, damages, penalties, fines, costs, liabilities, losses and expenses (including, without limitation,
reasonable attorneys’ fees and expenses) incurred by the Indemnified Parties (collectively, “Losses”) arising from or
directly or indirectly relating to:

 

(a) any breach by Seller
of any term or provision of this Agreement or any Related Agreement, including without limitation, Seller’s representations and
warranties contained herein; or

 

(b) any other expense or
liability relating to the Purchased Assets arising or occurring prior to the Closing Date.

 

Initial _______/________6

 

    	 

    	 

    

 

“Affiliate” means,
with respect to any Person (as hereinafter defined), any Person that controls, is controlled by or is under common control with
such Person, together with its and their respective members, partners, venturers, directors, officers, stockholders, agents, employees
and spouses. A Person shall be presumed to have control when it possesses the power, directly or indirectly, to direct, or cause
the direction of, the management or policies of another Person, whether through ownership of voting securities, by contract, or
otherwise. “Person” means an individual, partnership, Limited Liability Company, association, corporation, or other entity.

 

5.7 Indemnification by Buyer. Buyer
shall indemnify, defend and hold Seller, its Affiliates and their respective Indemnified Parties harmless from and against any
and all Losses arising from or directly or indirectly relating to:

 

(a) any breach by Buyer
of any term or provision of this Agreement or any Related Agreement, including without limitation, Buyer’s representations, warranties
and covenants contained herein; or

 

(b) Buyer’s performance
or breach of the warrant agreements or performance agreements after the Closing Date; or

 

(c) any other expense or
liability relating to the Purchased Assets arising or occurring after the Closing Date.

 

5.8 Survival of Representations and Warranties.
The parties’ representations and warranties contained herein shall survive the Closing for a period of two (2) years.

 

5.9 Exclusivity. From the date hereof
through the Closing Date or the termination of this Agreement, whichever first occurs, Seller shall not, nor shall Seller authorize
or permit any of its directors, officers, employees, representatives, agents or Affiliates to, directly or indirectly, solicit,
initiate, encourage, respond favorably to, permit or condone inquiries or

proposals from, or provide any confidential
information to, or participate in any discussions or negotiations with, any Person (other than Buyer and its directors, officers,
employees, representatives and agents) concerning a sale, assignment or other transfer of the Purchased Assets, either directly
or through a stock purchase or merger or other acquisition structure.

 

5.10 Material Agreements. At Buyer’s
request, Seller shall assign as necessary and rights relating to the Purchased Assets

 

5.11 Closing Agreements. As defined
in the Purchase Price and above in section 5.

 

6. [Intentionally Blank]

 

Initial _______/________7

 

    	 

    	 

    

 

7. CONDITIONS PRECEDENT.

 

7.1 Conditions to Buyer’s Obligations.
Buyer’s obligations under this Agreement are subject to the satisfaction, on or prior to the Closing Date, of each of the following
conditions, any of which may be waived in writing by Buyer:

 

(a) Seller will have complied
with and performed in all material respects its obligations under this Agreement and the Related Agreements required to be complied
with or performed prior to Closing.

 

(b) All representations
and warranties of Seller in this Agreement and the Related Agreements will be true and correct in all material respects as of the
date when given and on the Closing Date.

 

(c) All consents, approvals
and waivers required to consummate the transactions contemplated by this Agreement and the Related Agreements will have been obtained
in writing by Seller and provided to Buyer without any penalty or condition which is adverse to Buyer. Buyer will have received
evidence of the due authorization and execution of this Agreement by Seller in form and substance satisfactory to Buyer.

 

(d) There will not have
been any material adverse change in the business, prospects or future business relating to the Purchased Assets, or any event which
may, in the future, cause such a change or any pending or threatened material litigation or other proceeding relating to the Purchased
Assets.

 

(e) Seller shall have delivered
such other documents and instruments as Buyer may reasonably request to effectuate the transactions contemplated herein and to
vest in Buyer title to, and rights in the Purchased Assets.

 

(f) Buyer shall have received
all of the items set forth in Sections 3.2(a) and 3.2(c) hereof

 

7.2 Condition to Seller’s Obligations.
Seller’s obligations under this Agreement are subject to the satisfaction, on the Closing Date, of the following conditions, which
may be waived by Seller:

 

(a) Buyer ill have complied
with and performed, in all material respects, its obligations under this Agreement and the Related Agreements.

 

(b) All representations
of Buyer in this Agreement or the Related Agreements will be true and correct as of the date when given and on the Closing Date.

 

(c) Seller shall have received
all of the items set forth in Section 3.2(b) and 3.2(c) hereof.

 

Initial _______/________8

 

    	 

    	 

    

 

8. TERMINATION OF AGREEMENT; EFFECT OF TERMINATION.

 

8.1 Termination. This Agreement may
be terminated at any time before the Closing as follows:

 

(a) By Buyer, by notice
to Seller, if any of Buyer’s conditions precedent to Closing have not been satisfied as of the Closing Date or have become incapable
of being satisfied by November 4, 2011.

 

(b) By Seller, by notice
to Buyer, if any of Seller’s conditions precedent to Closing have not been satisfied as of the Closing Date or have become incapable
of being satisfied by November 4, 2011.

 

8.2 Effect of Termination. With the
exception of Section 5.6 & 5.7 (Indemnification) and this Section 8.2 which shall survive termination of this Agreement, upon
a termination in accordance with Section 8.1, this Agreement will have no further force or effect. Notwithstanding the foregoing,
each Party will be liable to the other for any breaches by such Party prior to termination of this Agreement. If Seller refuses
to consummate the transactions contemplated as and when required herein, despite the satisfaction or waiver by Seller of the conditions
set forth in Section 7.2 hereof, Buyer shall be entitled to receive from Seller $0.00 as liquidated damages and not as a penalty.
If Buyer refuses to consummate the transactions contemplated as and when required herein despite the satisfaction or waiver by
Buyer of the conditions set forth in Section 7.1 hereof, there will be no liquidated damages.

 

9. Left intentionally blank

 

10. MISCELLANEOUS.

 

10.1 No Waiver. No waiver of any breach
of any provision of this Agreement will be deemed a waiver of any other breach of this Agreement. No extension of time for performance
of any act will be deemed an extension of the time for performance of any other act.

 

10.2 Severability. The provisions of
this Agreement will be deemed severable, and if any provision of this Agreement is held illegal, void or invalid under applicable
law, such provision may be changed to the extent reasonably necessary to make the provision legal, valid and binding. If any provision
of this Agreement is held illegal, void or invalid in its entirety, the remaining provisions of this Agreement will not be affected
but will remain binding in accordance with their terms.

 

10.3 Entire Agreement; Amendment. This
Agreement, the Related Agreements and the schedules, exhibits and attachments to such agreements contain the entire agreement of
the Parties with respect to the subject matter hereof. This Agreement may be amended only by an instrument in writing signed by
all of the Parties hereto. The headings in this Agreement are solely for convenience of reference and will not affect the interpretation
of any provision of this Agreement.

 

Initial _______/________9

 

    	 

    	 

    

 

10.4 Applicable Law. This Agreement
will be construed in accordance with and governed by the laws of the State of Florida. Jurisdiction and venue for all disputes
relating to this Agreement shall lie with the state and federal courts located in Duval County, Florida.

 

10.5 Time is of the Essence. The Parties
to this Agreement acknowledge and agree that time is of the essence with respect to the consummation of the transactions contemplated
by this Agreement and each Related Agreement.

 

10.6 Binding Agreement, Assignment.
The terms and provisions of this Agreement will bind the Parties and their respective permitted successors and assigns. Neither
this Agreement nor any Related Agreement may be assigned by Seller or Buyer, without the prior written consent of the other.

 

10.7 Expenses. Each Party will pay all
of its expenses, including attorneys’ and accountants’ fees in connection with the negotiation of this Agreement or any Related
Agreement, the performance of its obligations hereunder or thereunder, and the consummation of the transactions contemplated by
this Agreement or any Related Agreement; provided that in any proceeding or other attempt to enforce, construe or to determine
the validity of this Agreement or any Related Agreement, the non-prevailing Party will pay the reasonable attorneys’ fees and costs
of the prevailing Party.

 

10.8 Notices. All notices, demands or other communications
required or permitted to be given hereunder will be in writing, and any and all such items will be deemed to have been duly delivered
upon personal delivery; or as of the third business day after mailing by United States mail, certified, return receipt requested,
postage prepaid, addressed as follows; or as of the immediately following business day after deposit with Federal Express or a
similar overnight courier service, addressed as follows; or as of the business day if by facsimile to the facsimile number set
forth below:

 

	Notices to Seller:	Social Fly Marketing Inc, DBA
	 	
        Internet Digital Marketing, Inc.

        3105 Hartridge Terrace

        Wellington, Florida 33414

        Attn: Heather Rich

        561-716-3858

 

Initial _______/________10

 

    	 

    	 

    

 

	Notices to Buyer: 	Solar Energy Initiatives, Inc.
	 	570 Walnut Valley Parkway
	 	Arden, NC 28704
	 	Attn: David Fann
	 	Phone: 904-251-4910 

 

10.9 Counterparts. This Agreement may
be executed in one or more counterparts, any one of which need not contain the signatures of more than one party, but all such
counterparts taken together will constitute one and the same instrument.

 

10.10 No Third Party Beneficiaries.
Nothing in this Agreement is intended or shall be construed to give any person, other than the parties hereto, any legal or equitable
right, remedy or claim under or in respect of this Agreement or any provision contained herein.

 

10.11 Publicity. Each party agrees to
notify the other prior to issuing any press release or making any public statement regarding the transactions contemplated hereby,
and will attempt to obtain the reasonable approval of the other party prior to making such release or statement, except where such
release or statement is required by applicable law or pursuant to any listing agreement with, or the rules or regulations of, any
securities exchange or any other regulatory requirement, in which case the disclosing party shall endeavor to provide the other
party with as much prior notice of the content of such release or statement as is reasonably practicable under the circumstances.

 

10.12 Confidentiality. Other than as
contemplated by this Agreement, Seller will maintain in confidence, and will cause its directors, officers, employees, agents,
and advisors to maintain in confidence, any written, oral, or other information in its possession relating directly or indirectly
to the Purchased Assets, unless such information becomes publicly available through no fault of Seller, or its directors, officers,
employees, agents or advisors, the use of such information is necessary or appropriate in making any filing or obtaining any consent
or approval required for the consummation of the transactions contemplated herein, or the furnishing or use of such information
is required by legal proceedings or otherwise required by law. If this Agreement is terminated pursuant to Section 8.1, this Section
10.12 shall be of no further force or effect.

 

Initial _______/________11

 

    	 

    	 

    

 

The Parties have executed
and delivered this Agreement on the date set forth in the introductory paragraph of this Agreement.

 

	Buyer: 	 	 Seller:	 
	 	 	 	 
	SOLAR ENERGY INITIATIVES, INC.	 	Internet Digital MARKETING, INC.	 
	a Delaware corporation 	 	a Florida corporation	 
	 	 	 	 
	By: /s/ David Fann	 	By: /s/ Heather Rich      	 
	Name: David Fann	 	Name: Heather Rich   	 
	Title: Chief Executive Officer 	 	Title: Chief Executive Officer 	 

 

EXHIBIT A – Asset List

 

Assets and Liability included in Purchase

 

		1.	All owned websites including: www.internetdigitalmarketing.com

		2.	www.socialflymarketing.com,
                                                                www.finwebsolutions.com

		3.	A list with contact information of all customers

		4.	Company Bank Account

		5.	List of potential customers

		6.	Company Business plans, Sales material, brochures, and projections

 

Initial _______/________12

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