Exhibit 2.1
SHARE EXCHANGE AND CONVERSION AGREEMENT
by and among
TABACALERAYSIDRON, INC. (“PUBCO”),
a Nevada corporation
and
THE MAJORITY STOCKHOLDER OF PUBCO
on the one hand;
and
MOUNT TAM BIOTECHNOLOGIES, INC. (“PRIVECO”),
a Delaware corporation
and
THE STOCKHOLDERS OF PRIVECO
and
THE NOTEHOLDERS OF PRIVECO
on the other hand
Dated as of August 13, 2015
SHARE EXCHANGE AND CONVERSION AGREEMENT
THIS SHARE EXCHANGE
AND CONVERSION AGREEMENT (this “Agreement”), dated as of August 13, 2015, is made and entered into by and
among TabacaleraYsidron, Inc., a Nevada corporation (“Pubco”), Xxxxx Xxxxxx, an individual and the majority
stockholder of Pubco (“Pubco Stockholder”), on the one hand, and Mount TAM Biotechnologies, Inc., a Delaware
corporation (“Priveco”), the stockholders of Priveco identified on Annex I hereto (together referred
to herein as “Priveco Stockholders,” each a “Priveco Stockholder”), and the holders of Priveco’s
convertible promissory notes identified on Annex II hereto (together referred to herein as “Priveco Noteholders,”
each a “Priveco Noteholder”), on the other hand. Each party to this Agreement is individually referred to herein
as a “Party” and collectively, as the “Parties.”
RECITALS
WHEREAS, on
August 12, 2015, the board of directors of Pubco adopted resolutions approving Pubco’s acquisition of the equity interests
of Priveco held by Priveco Stockholders by means of a share exchange with Priveco Stockholders (the “Share Exchange”),
and the conversion of convertible promissory notes of Priveco held by Priveco Noteholders (each a “Note”, and
collectively, the “Notes”) into shares of Pubco’s common stock (the “Conversion”),
upon the terms and conditions hereinafter set forth in this Agreement;
WHEREAS, each
Priveco Stockholder owns the amount of equity interests (in shares of capital stock or otherwise) of Priveco set forth opposite
such Priveco Stockholder’s name in Column II on Exhibit A attached hereto (collectively, the “Priveco Shares”);
WHEREAS, Priveco
Stockholders desire to sell and transfer their respective holdings of the Priveco Shares in exchange for shares of Pubco pursuant
to the terms and conditions of this Agreement, and will enter into this Agreement for the purpose of making certain representations,
warranties, covenants and agreements;
WHEREAS, each
Priveco Noteholder owns a Note in the principal amount set forth opposite such Priveco Stockholder’s name in Column II on
Exhibit B attached hereto;
WHEREAS, concurrently
with closing of the Share Exchange, the Notes shall convert into shares of Pubco pursuant to the terms and conditions of this Agreement,
and Priveco Noteholders will enter into this Agreement for the purpose of making certain representations, warranties, covenants
and agreements;
WHEREAS, concurrently
with the execution of this Agreement, Pubco and Pubco Stockholder shall enter into a Cancellation Agreement, dated as of the date
of this Agreement, in substantially the form attached hereto as Exhibit C (the “Cancellation Agreement”),
pursuant to which Pubco Stockholder agrees to cancel 28,175,000 shares of Pubco’s common stock held by him (the “Cancellation
Shares”) representing approximately 63.27% of the issued and outstanding capital stock of Pubco immediately prior to
the transactions contemplated under this Agreement;
WHEREAS, Pubco
Stockholder will enter into this Agreement for the purpose of making certain representations, warranties, covenants and agreements;
WHEREAS, upon
consummation of the transactions contemplated by this Agreement, Priveco will become a 100% wholly-owned subsidiary of Pubco; and
WHEREAS, it
is intended that the terms and conditions of this Agreement comply in all respects with Section 368(a)(1)(B) and/or Section 351
of the Internal Revenue Code of 1986, as amended and in effect on the date of this Agreement (the “Code”) and
the regulations corresponding thereto, so that the Exchange shall qualify as a tax free reorganization under the Code, and that
the share exchange transaction contemplated by this Agreement shall qualify as a transaction in securities exempt from registration
or qualification under the Securities Act of 1933, as amended and in effect on the date of this Agreement.
AGREEMENT
NOW, THEREFORE,
in consideration of the foregoing and the respective representations, warranties, covenants and agreements set forth herein, and
intending to be legally bound hereby, the Parties agree as follows:
ARTICLE 1
SHARE EXCHANGE AND CONVERSION
1.1 Share
Exchange. Upon the terms and subject to the conditions hereof, at the Closing (as hereinafter defined), Pubco and Priveco Stockholders
shall do the following in connection with the Share Exchange:
(a) Priveco
Stockholders will each sell, convey, assign, transfer and deliver to Pubco the stock certificates representing the Priveco Shares
held by each Priveco Stockholder as set forth in Column II of Annex I hereto, which in the aggregate shall constitute 100%
of the issued and outstanding equity interests of Priveco, each accompanied by a properly executed and authenticated stock power,
instrument of transfer or other instrument of like tenor.
(b) As
consideration in exchange for the acquisition of the Priveco Shares, Pubco will issue to each Priveco Stockholder or its designees,
in exchange for such Priveco Stockholder’s portion of the Priveco Shares, the number of shares of common stock set forth
opposite such party’s name in Column III on Annex I attached hereto (the total number of shares of the Common Stock
to be issued to Priveco Stockholders, as specified in Annex I, shall hereinafter be referred to as the “Exchange
Shares”).
1.2 Conversion.
Upon the terms and subject to the conditions hereof, at the Closing, Pubco and Priveco Noteholders shall do the following in connection
with the Conversion:
(a) Each
Priveco Noteholder will each deliver to Pubco for cancellation the Note held by such Priveco Noteholder, in the principal amount
as set forth set forth in Column II of Annex II hereto.
(b) As
consideration for the surrender of the Notes, Pubco will issue to each Priveco Noteholder or its designees, the number of shares
of common stock set forth opposite such party’s name in Column III on Annex II attached hereto (the total number of
shares of the Common Stock to be issued to Priveco Noteholders, as specified in Annex II, shall hereinafter be referred
to as the “Conversion Shares”).
1.3 Closing
Date. The closing of the Share Exchange and the Conversion (the “Closing”) shall take place as soon as practicable
upon signing of this Agreement, and on or prior to August 13, 2015, or on such other date as may be mutually agreed upon in writing
by the Parties. Such date is referred to herein as the “Closing Date.”
1.4 Taking
of Necessary Action; Further Action. If, at any time after the Closing, any further action is necessary or desirable to carry
out the purposes of this Agreement, Priveco Stockholders, Priveco Noteholders, Priveco, Pubco Stockholder and/or Pubco (as applicable)
will take all such lawful and necessary action.
1.5 Tax
Consequences. It is intended that the terms and conditions of this Agreement comply in all respects with Section
368(a)(1)(B) and/or Section 351 of the Code and the regulations corresponding thereto, so that the Share Exchange and Conversion
shall qualify as a tax-free reorganization under the Code.
1.6 Certain
Definitions. In addition to the capitalized terms defined elsewhere in this Agreement, the following capitalized terms as used
in this Agreement shall have the respective definitions:
“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.
“Common Stock”
means the common stock of Pubco, par value $0.0001 per share, and any other class of securities into which such securities may
hereafter be reclassified or changed.
“Common Stock
Equivalents” means any securities of Pubco or Priveco (as applicable) which would entitle the holder thereof to acquire
at any time such entities capital stock, including, without limitation, any debt, preferred stock, rights, options, warrants or
other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof
to receive shares of such entities capital stock.
“Contract”
means any contract, lease, license, indenture, note, bond, agreement, permit, concession, franchise or other instrument.
“Exchange Act”
means the Securities Exchange Act of 1934, as amended.
“FINRA”
means Financial Industry Regulatory Authority.
“GAAP” means
United States generally accepted accounting principles.
“Knowledge” means the
actual knowledge of the officers, directors or advisors of the referenced party after reasonable inquiry.
“Liens”
means a lien, charge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.
“Market Price”
means the market price per share of the Common Stock on the date in question determined as follows: (a) if the Common Stock is
traded over-the-counter on the date in question, then the Market Price shall be equal to the last transaction price quoted for
such date by the OTC Bulletin Board or, if not so quoted, shall be equal to the mean between the last reported representative bid
and asked prices quoted for such date by the principal automated inter-dealer quotation system on which the Common Stock is quoted
or, if the Common Stock is not quoted on any such system, by the Pink Quote system; (b) if the Common Stock is traded on a stock
exchange (such as the New York Stock Exchange, NYSE Amex Exchange, The NASDAQ Capital Market, The NASDAQ Global Market or The NASDAQ
Global Select Market) or a national market system on the date in question, then the Market Price shall be equal to the closing
price reported by the applicable exchange or system for such date; (c) if there is no such reported price for the Common Stock
for the date in question under (a) or (b), then if available such price on the last preceding date for which such price exists
shall be determinative of the Market Price; or (d) if there is no reported price available under (i), (ii) or (iii) above to determine
the Market Price of the Common Stock, then the Market Price will be determined by the Pubco’s board of directors in good
faith and in a manner that complies with Sections 409A and 422 of the Code.
“Material Adverse
Effect” means an adverse effect on either referenced party or the combined entity resulting from the consummation of
the transaction contemplated by this Agreement, or on the financial condition, results of operations or business, before or after
the consummation of the transaction contemplated in this Agreement, which as a whole is or would be considered material to an investor
in the referenced party.
“Non-U.S. Person”
means any person who is not a U.S. Person or is deemed not to be a U.S. Person under Rule 902(k)(2).
“Organizational
Documents” means (a) the articles or certificate of incorporation and the by-laws or code of regulations of a corporation;
(b) any other document performing a similar function to the documents specified in clause (a) adopted or filed in connection with
the creation, formation or organization of a Person; and (c) any and all amendments to any of the foregoing.
“Person”
means any individual, corporation, partnership, joint venture, trust, business association, organization, governmental authority
or other entity.
“SEC”
means the United States Securities and Exchange Commission or any other federal agency then administering the Securities Act and
the Exchange Act.
“Securities
Act” means the Securities Act of 1933, as amended.
“Subsidiary”
means any entity, whether or not capitalized, in which the referenced party, owns, directly or indirectly, an equity interest of
more than fifty percent (50%).
“Tax Returns”
means all federal, state, local and foreign returns, estimates, information statements and reports relating to Taxes.
“Tax”
or “Taxes” means any and all applicable central, federal, provincial, state, local, municipal and foreign taxes,
including, without limitation, gross receipts, income, profits, sales, use, occupation, value added, ad valorem, transfer, franchise,
withholding, payroll, recapture, employment, excise and property taxes, assessments, governmental charges and duties together with
all interest, penalties and additions imposed with respect to any such amounts and any obligations under any agreements or arrangements
with any other person with respect to any such amounts and including any liability of a predecessor entity for any such amounts.
“Trading Day”
means a day on which the principal Trading Market is open for trading.
“Trading Market”
means the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the
NYSE Amex Exchange, the NASDAQ Capital Market, the NASDAQ Global Market, the NASDAQ Global Select Market, the New York Stock Exchange,
the OTCQB or the OTC Bulletin Board.
“Transaction”
means the transactions contemplated by this Agreement, including the Share Exchange.
“Transaction
Documents” means this Agreement, all exhibits and schedules thereto and hereto and any other documents or agreements
executed in connection with the transactions contemplated hereunder.
“United States”
means and includes the United States of America, its territories and possessions, any State of the United States, and the District
of Columbia.
“U.S. Person” as
defined in Regulation S means: (i) a natural person resident in the United States; (ii) any partnership or corporation organized
or incorporated under the laws of the United States; (iii) any estate of which any executor or administrator is a U.S. Person;
(iv) any trust of which any trustee is a U.S. Person; (v) any agency or branch of a foreign entity located in the United States;
(vi) any nondiscretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the
benefit or account of a U.S. Person; (vii) any discretionary account or similar account (other than an estate or trust) held by
a dealer or other fiduciary organized, incorporated and (if an individual) resident in the United States; and (viii) a corporation
or partnership organized under the laws of any foreign jurisdiction and formed by a U.S. Person principally for the purpose of
investing in securities not registered under the Securities Act, unless it is organized or incorporated, owned, by accredited investors
(as defined in Rule 501(a) under the Securities Act) who are not natural persons, estates or trusts).
ARTICLE 2
REPRESENTATIONS AND WARRANTIES OF PRIVECO
Except as otherwise
disclosed herein or in a disclosure schedule (“Schedule”) attached hereto, Priveco hereby represents and warrants
to Pubco and Pubco Stockholder as of the date hereof and as of the Closing Date (unless otherwise indicated) as follows:
2.1 Organization.
Priveco is a corporation duly organized, validly existing, and in good standing under the laws of the state of Delaware and has
the corporate power and is duly authorized under all applicable laws, regulations, ordinances, and orders of public authorities
to carry on its business in all material respects as it is now being conducted. Included in Schedule 2.1 is a
complete and correct list of the Organizational Documents of Priveco as in effect on the date hereof and a list of those jurisdictions,
if any, in which Priveco presently conducts its business, owns, holds and operates its properties and assets.
2.2 Capitalization.
Priveco has authorized capital stock consisting of a total of 20,000,000 shares of common stock, par value of $0.0001 per share
(the “Priveco Capital Stock”). Priveco has 9,000,000 shares of Priveco Capital Stock currently issued and outstanding.
The Priveco Shares are not subject to any preemptive or subscription right, any voting trust agreement or other contract, agreement,
arrangement, option, warrant, call, commitment or other right of any character obligating or entitling Priveco to issue, sell,
redeem or purchase any of its securities. Except as set forth in Schedule 2.2, there are no outstanding options, warrants,
scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations
convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire any shares of Priveco
Capital Stock, or Contracts, commitments, understandings or arrangements by which Priveco is or may become bound to issue additional
shares of Priveco Capital Stock or Common Stock Equivalents.
2.3 Subsidiaries.
As of the Closing, Priveco has no direct or indirect Subsidiaries.
2.4 Certain
Corporate Matters. Priveco is duly qualified to do business as a corporation and is in good standing under the laws of the
state of Delaware, and in each other jurisdiction in which the ownership of its property or the conduct of its business requires
it to be so qualified, except where the failure to be so qualified would not have a Material Adverse Effect on Priveco’s
financial condition, results of operations or business. Priveco has full corporate power and authority and all authorizations,
licenses and permits necessary to carry on the business in which it is engaged and to own and use the properties owned and used
by it.
2.5 Authority
Relative to this Agreement. Priveco has the requisite power and authority to enter into this Agreement and to carry
out its respective obligations hereunder. The execution, delivery and performance of this Agreement and the consummation
of the transactions contemplated hereby by Priveco have been duly authorized by Priveco’s board of directors and no other
actions on the part of Priveco are necessary to authorize this Agreement or the transactions contemplated hereby. This Agreement
has been duly and validly executed and delivered by Priveco and constitutes a valid and binding agreement, enforceable against
Priveco in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency or other similar laws
affecting the enforcement of creditors’ rights generally or by general principles of equity.
2.6 Consents
and Approvals; No Violations. Except for applicable requirements of foreign and United States federal securities
laws and state securities or blue-sky laws, no filing with, and no permit, authorization, consent or approval of, any third party,
public body or authority is necessary for the consummation by Priveco of the transactions contemplated by this Agreement. Neither
the execution and delivery of this Agreement by Priveco nor the consummation by Priveco of the transactions contemplated hereby,
nor compliance by them with any of the provisions hereof, will: (a) conflict with or result in any breach of any provisions of
the Organizational Documents or bylaws (or operating agreement) of Priveco, (b) result in a violation or breach of, or constitute
(with or without due notice or lapse of time or both) a default (or give rise to any right of termination, cancellation or acceleration)
under, any of the terms, conditions or provisions of any note, bond, mortgage, indenture, license, Contract, agreement or other
instrument or obligation to which Priveco is a party or by which any of their respective properties or assets may be bound or (c)
violate any order, writ, injunction, decree, statute, rule or regulation applicable to Priveco, or any of its properties or assets,
except in the case of clauses (b) and (c) for violations, breaches or defaults which are not in the aggregate material to Priveco
taken as a whole.
2.7 Books
and Records. The books and records of Priveco delivered to Pubco prior to the Closing fully and fairly reflect the transactions
to which Priveco is a party or by which it or its properties are bound, and there shall be no material difference between the unaudited
combined financial statements of Priveco given to Pubco and the actual reviewed U.S. GAAP results of Priveco for the period from
August 13, 2014 (Priveco’s inception date) to December 31, 2014 and the year ended December 31, 2014, and for the three months
ended March 31, 2015.
2.8 Intellectual
Property. Priveco has, or has rights to use, all patents, patent applications, trademarks, trademark applications, service
marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property rights and similar rights as
necessary or required for use in connection with its businesses and which the failure to so have could have a Material Adverse
Effect (collectively, the “Intellectual Property Rights”). Priveco has not received a notice (written
or otherwise) that any of, the Intellectual Property Rights has expired, terminated or been abandoned, or is expected to expire
or terminate or be abandoned, within two (2) years from the date of this Agreement. Since the date of the latest audited
financial statements for Priveco that would be included within the SEC Reports to be filed by Pubco in connection with the Closing
of this transaction, a written notice of a claim or otherwise has any knowledge that the Intellectual Property Rights violate or
infringe upon the rights of any Person, except as could not have or reasonably be expected to not have a Material Adverse Effect. To
the Knowledge of Priveco, all such Intellectual Property Rights are enforceable and there is no existing infringement by another
Person of any of the Intellectual Property Rights. Priveco has taken reasonable security measures to protect the secrecy,
confidentiality and value of all of their intellectual properties, except where failure to do so could not, individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect.
2.9 Litigation.
Priveco is not subject to any judgment or order of any court or quasi-judicial or administrative agency of any jurisdiction, domestic
or foreign, nor is there any charge, complaint, lawsuit or governmental investigation pending against Priveco. Priveco is not a
plaintiff in any action, domestic or foreign, judicial or administrative. There are no existing actions, suits, proceedings against
or investigations of Priveco, and Priveco knows of no basis for such actions, suits, proceedings or investigations. There are no
unsatisfied judgments, orders, decrees or stipulations affecting Priveco or to which Priveco is a party.
2.10 Legal
Compliance. To the Knowledge of Priveco, no claim has been filed against Priveco alleging a violation of any applicable laws
and regulations of foreign, federal, state and local governments and all agencies thereof. Priveco holds all of the material permits,
licenses, certificates or other authorizations of foreign, federal, state or local governmental agencies required for the conduct
of their respective businesses as presently conducted.
2.11 Contracts.
There are no Contracts not made in the ordinary course of business that are material to the business, properties, assets, condition
(financial or otherwise), results of operations or prospects of the Priveco. Priveco is not in violation of or in default
under (nor does there exist any condition which upon the passage of time or the giving of notice would cause such a violation of
or default under) any Contract to which they are a party or by which they or any of their properties or assets are bound, except
for violations or defaults that would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse
Effect. Priveco has delivered to Pubco, if any, copies of each and every Contract of Priveco not made in the ordinary course of
business. The copies of each of the Contracts delivered are accurate and complete. Each Contract is in full force and effect and
constitutes a legal, valid and binding obligation of, and is legally enforceable against, the respective parties thereto. There
is no material default with respect to any such contract which will give rise to liability in respect thereof on the part of Priveco
or the other parties thereto. No notice of default or similar notice has been given or received by Priveco under any
of such contracts.
2.12 Material
Changes. Since March 31, 2015: (i) there has been no event, occurrence or development that has had or that could reasonably
be expected to result in a Material Adverse Effect, (ii) Priveco has not incurred any liabilities (contingent or otherwise) other
than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice and (B)
liabilities not required to be reflected in Priveco’s financial statements pursuant to GAAP, (iii) Priveco has not altered
its method of accounting, (iv) Priveco has not declared or made any dividend or distribution of cash or other property to its stockholders
or purchased, redeemed or made any agreements to purchase or redeem any shares of Priveco Capital Stock, and (v) Priveco has not
issued any equity securities to any officer, director or Affiliate.
2.13 Labor
Relations. No material labor dispute exists or, to the knowledge of Priveco, is imminent with respect to any of
the employees of Priveco which could reasonably be expected to result in a Material Adverse Effect. None of Priveco’s
employees is a member of a union that relates to such employee’s relationship with Priveco, and Priveco is not a party to
a collective bargaining agreement, and Priveco believes that its relationships with its employees are good. No executive
officer, to the Knowledge of Priveco, is, or is now expected to be, in violation of any material term of any employment contract,
confidentiality, disclosure or proprietary information agreement or non-competition agreement, or any other contract or agreement
or any restrictive covenant in favor of any third party, and the continued employment of each such executive officer does not subject
Priveco to any liability with respect to any of the foregoing matters. Priveco is in compliance with all laws and regulations
which they are subject to relating to employment and employment practices, terms and conditions of employment and wages and hours,
except where the failure to be in compliance could not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.
2.14 Title
to Assets. Priveco has good and marketable title in fee simple to all real property owned by them and good and marketable
title in all personal property owned by it that is material to the business of Priveco, in each case free and clear of all Liens,
except for Liens that do not materially affect the value of such property and do not materially interfere with the use made and
proposed to be made of such property by Priveco and Liens for the payment of Taxes, the payment of which is neither delinquent
nor subject to penalties. Any real property and facilities held under lease by Priveco are held by it under valid, subsisting
and enforceable leases with which Priveco is in compliance.
2.15 Transactions
with Affiliates and Employees. Except as disclosed in the combined financial statements of Priveco, none of the
officers or directors of Priveco and, to the knowledge of Priveco, none of the employees of Priveco is presently a party to any
transaction with Priveco (other than for services as employees, officers and directors), including any contract, agreement or other
arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or
otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of Priveco, any entity in which
any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or partner, in each
case in excess of $120,000, other than for: (i) payment of salary or consulting fees for services rendered, (ii) reimbursement
for expenses incurred on behalf of Priveco and (iii) other employee benefits.
2.16 Certain
Fees. No brokerage or finder’s fees or commissions are or will be payable by Priveco to any broker, financial
advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated
by this Agreement.
2.17 Registration
Rights. No Person has any right to cause (or any successor) to effect the registration under the Securities Act
of any securities of Priveco (or any successor).
2.18 Application
of Takeover Protections. Priveco has taken all necessary action, if any, in order to render inapplicable any control
share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover
provision under Priveco’s Organizational Documents or the laws of its state of incorporation that is or could become applicable
as a result of Priveco fulfilling its obligations or exercising its rights under this Agreement.
2.19 Tax
Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result
in a Material Adverse Effect, Priveco has filed all necessary Tax Returns and has paid or accrued all Taxes shown as due thereon,
and Priveco has no knowledge of a tax deficiency which has been asserted or threatened against Priveco.
2.20 No
General Solicitation. Neither Priveco nor any person acting on behalf of Priveco has offered or sold securities
in connection herewith by any form of general solicitation or general advertising.
2.21 Foreign
Corrupt Practices. Neither Priveco, nor to the knowledge of Priveco, any agent or other person acting on behalf
of Priveco, has: (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful
expenses related to foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic government officials
or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully
any contribution made by Priveco (or made by any person acting on its behalf of which Priveco is aware) which is in violation of
law or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended.
2.22 Obligations
of Management. Each officer and key employee of Priveco is currently devoting substantially all of his or her business time
to the conduct of business of Priveco. Priveco is not aware that any officer or key employee of Priveco is planning
to work less than full time at Priveco, as applicable, in the future. No officer or key employee is currently working
or, to Priveco’s Knowledge, plans to work for a competitive enterprise, whether or not such officer or key employee is or
will be compensated by such enterprise.
2.23 Employee
Benefits. Priveco has not (nor for the two years preceding the date hereof has had) any plans which are subject
to ERISA. “ERISA” means the Employee Retirement Income Security Act of 1974 or any successor law
and the regulations and rules issued pursuant to that act or any successor law.
2.24 Money
Laundering Laws. The operations of Priveco are and have been conducted at all times in compliance with applicable
financial record-keeping and reporting requirements of the money laundering statutes of all U.S. and non-U.S. jurisdictions, the
rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced
by any governmental body (collectively, the “Money Laundering Laws”) and no action, suit or proceeding by or
before any court or governmental agency, authority or body or any arbitrator involving Priveco with respect to the Money Laundering
Laws is pending or, to the knowledge of Priveco, threatened.
2.25 Disclosure.
The representations and warranties and statements of fact made by Priveco in this Agreement are, as applicable, accurate, correct
and complete and do not contain any untrue statement of a material fact or omit to state any material fact necessary in order to
make the statements and information contained herein not false or misleading.
ARTICLE 3
REPRESENTATIONS AND WARRANTIES OF PRIVECO
STOCKHOLDERS
Except as otherwise
disclosed herein or in a Schedule attached hereto, each Priveco Stockholder hereby represents and warrants to Pubco and Pubco Stockholder
as of the date hereof and as of the Closing Date (unless otherwise indicated) as follows:
3.1 Ownership
of the Priveco Shares. Each Priveco Stockholder owns, beneficially and of record, good and marketable title to the
amount of the Priveco Shares set forth opposite such Priveco Stockholder’s name in Column II on Annex I attached hereto,
free and clear of all security interests, liens, adverse claims, encumbrances, equities, proxies, options or voting agreements.
Each Priveco Stockholder represents that they have no right or claims whatsoever to any equity interests of Priveco, other than
the Priveco Shares listed opposite such Priveco Stockholder’s name in Column II on Annex I, and does not have any
options, warrants or any other instruments entitling him to exercise or purchase or convert into additional equity interests of
Priveco. At the Closing, Priveco Stockholders will convey to Pubco good and marketable title to the Priveco Shares, free and clear
of any security interests, liens, adverse claims, encumbrances, equities, proxies, options, stockholders’ agreements or restrictions.
3.2 Authority
Relative to this Agreement. This Agreement has been duly and validly executed and delivered by Priveco Stockholders and constitutes
a valid and binding agreement of such Person, enforceable against such Person in accordance with its terms, except as such enforcement
may be limited by bankruptcy, insolvency or other similar laws affecting the enforcement of creditors’ rights generally or
by general principles of equity.
3.3 Purchase
of Restricted Securities for Investment. Each Priveco Stockholder acknowledges that the Exchange Shares will not be registered
pursuant to the Securities Act or any applicable state securities laws, that the Exchange Shares will be characterized as “restricted
securities” under federal securities laws, and that under such laws and applicable regulations the Exchange Shares cannot
be sold or otherwise disposed of without registration under the Securities Act or an exemption therefrom. In this regard,
each Priveco Stockholder is familiar with Rule 144 promulgated under the Securities Act, as currently in effect, and understands
the resale limitations imposed thereby and by the Securities Act. Further, each Priveco Stockholder acknowledges and
agrees that:
(a) Each
Priveco Stockholder is acquiring the Exchange Shares for investment for such Priveco Stockholder’s own account and not as
a nominee or agent, and not with a view to the resale or distribution of any part thereof, and each Priveco Stockholder has no
present intention of selling, granting any participation in, or otherwise distributing the same. Each Priveco Stockholder
further represents that he, she or it does not have any Contract, undertaking, agreement or arrangement with any person to sell,
transfer or grant participation to such person or to any third person, with respect to any of the Exchange Shares.
(b) Each
Priveco Stockholder understands that the Exchange Shares are not registered under the Securities Act on the ground that the sale
and the issuance of securities hereunder is exempt from registration under the Securities Act pursuant to Section 4(2) thereof,
and that Pubco’s reliance on such exemption is predicated on the each Priveco Stockholder’s representations set forth
herein.
3.4 Status
of Stockholder. Each of Priveco Stockholders hereby makes the representations and warranties in either paragraph (a) or (b)
of this Section 3.4, as indicated on the signature page of such Priveco Stockholder which is attached and part of this Agreement:
(a) Accredited
Investor Under Regulation D. The Priveco Stockholder is an “Accredited Investor” as that term is defined
in Rule 501 of Regulation D promulgated under the Securities Act, an excerpt of which is included in the attached Annex II,
and such Priveco Stockholder is not acquiring its portion of the Exchange Shares as a result of any advertisement, article, notice
or other communication regarding the Exchange Shares published in any newspaper, magazine or similar media or broadcast over television
or radio or presented at any seminar or any other general solicitation or general advertisement.
(b) Non-U.S.
Person Under Regulation S. The Priveco Stockholder:
(i) is
not a “U.S. person” as defined by Rule 902 of Regulation S promulgated under the Securities Act, was not organized
under the laws of any U.S. jurisdiction, and was not formed for the purpose of investing in securities not registered under the
Securities Act;
(ii) at
the time of Closing, such Priveco Stockholder was located outside the United States;
(iii) no
offer of the Exchange Shares was made to such Priveco Stockholder within the United States;
(iv) such
Priveco Stockholder is either (a) acquiring the Exchange Shares for its own account for investment purposes and not with a view
towards distribution, or (b) acting as agent for a principal that has signed this Agreement or has delivered representations and
warranties substantially similar to this Section 3.4(b);
(v) all
subsequent offers and sales of the Exchange Shares by such Priveco Stockholder will be made outside the United States in compliance
with Rule 903 of Rule 904 of Regulation S, pursuant to registration of the Exchange Shares under the Securities Act, or pursuant
to an exemption from such registration; such Priveco Stockholder understands the conditions of the exemption from registration
afforded by section 4(l) of the Securities Act and acknowledges that there can be no assurance that it will be able to rely on
such exemption.
(vi) such
Priveco Stockholder will not resell the Exchange Shares to U.S. Persons or within the United States until after the end of the
one (1) year period commencing on the date of Closing (the “Restricted Period”);
(vii) such
Priveco Stockholder shall not and hereby agrees not to enter into any short sales with respect to the Common Stock of Pubco at
any time after the execution of this Agreement by such Priveco Stockholder and prior to the expiration of the Restricted Period;
(viii) such
Priveco Stockholder understands that the Exchange Shares are being offered and sold to it in reliance on specific provisions of
federal and state securities laws and that Pubco is relying upon the truth and accuracy of the representations, warranties, agreements,
acknowledgments and understanding of such Priveco Stockholder set forth herein in order to determine the applicability of such
provisions. Accordingly, such Priveco Stockholder agrees to notify Pubco of any events which would cause the representations
and warranties of such Priveco Stockholder to be untrue or breached at any time after the execution of this Agreement by such Priveco
Stockholder and prior to the expiration of the Restricted Period;
(ix) in
the event of resale of the Exchange Shares to non-U.S. Persons outside of the United States during the Restricted Period, such
Priveco Stockholder shall provide a written confirmation or other written notice to any distributor, dealer, or person receiving
a selling concession, fee, or other remuneration in respect of the Exchange Shares stating that such purchaser is subject to the
same restrictions on offers and sales that apply to the undersigned, and shall require that any such purchase shall provide such
written confirmation or other notice upon resale during the Restricted Period;
(x) such
Priveco Stockholder has not engaged, nor is it aware that any party has engaged, and it will not engage or cause any third party
to engage in any “directed selling” efforts (as such term is defined in Regulation S) in the United States with respect
to the Exchange Shares;
(xi) such
Priveco Stockholder is not a “distributor” as such term is defined in Regulation S, and it is not a “dealer”
as such term is defined in the Securities Act;
(xii) such
Priveco Stockholder has not taken any action that would cause any of the Parties to be subject to any claim for commission or other
or remuneration by any broker, finder, or other person; and
(xiii) such
Priveco Stockholder hereby represents that it has satisfied fully observed of the laws of the jurisdiction in which it is located
or domiciled, in connection with the acquisition of the Exchange Shares or this Agreement, including (A) the legal requirements
of such Priveco Stockholder’s jurisdiction for the purchase and acquisition of the Exchange Shares, (B) any foreign exchange
restrictions applicable to such purchase and acquisition, (C) any governmental or other consents that may need to be obtained,
and (D) the income tax and other tax consequences, if any, which may be relevant to the purchase, holding, redemption, sale, or
transfer of the Exchange Shares; and further, such Priveco Stockholder agrees to continue to comply with such laws as long as it
shall hold the Exchange Shares.
3.5 Investment
Risk. Each Priveco Stockholder is able to bear the economic risk of acquiring the Exchange Shares pursuant to the terms of
this Agreement, including a complete loss of such Priveco Stockholder’s investment in the Exchange Shares.
3.6 Restrictive
Legends. Each Priveco Stockholder acknowledges that the certificate(s) representing such Priveco Stockholder’s pro rata
portion of the Exchange Shares shall each conspicuously set forth on the face or back thereof a legend in substantially the following
form, corresponding to the stockholder’s status as set forth in Section 3.4 and the signature pages hereto:
REGULATION D LEGEND:
“THESE SECURITIES HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED
IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER SAID ACT OR PURSUANT TO AN EXEMPTION FROM REGISTRATION
OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.”
REGULATION S LEGEND:
“THE SHARES REPRESENTED
HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (“SECURITIES ACT”), AND MAY NOT BE SOLD,
TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S PROMULGATED UNDER THE SECURITIES
ACT, PURSUANT TO REGISTRATION UNDER THE SECURITIES ACT, OR PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM REGISTRATION; HEDGING TRANSACTIONS
INVOLVING THE SHARES REPRESENTED HEREBY MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT.”
3.7 Disclosure. The
representations and warranties and statements of fact made by Priveco Stockholders in this Agreement are, as applicable, accurate,
correct and complete and do not contain any untrue statement of a material fact or omit to state any material fact necessary in
order to make the statements and information contained herein not false or misleading.
ARTICLE 4
REPRESENTATIONS AND WARRANTIES OF PRIVECO
NOTEHOLDERS
Except as otherwise
disclosed herein or in a Schedule attached hereto, each Priveco Noteholder hereby represents and warrants to Pubco and Pubco Noteholder
as of the date hereof and as of the Closing Date (unless otherwise indicated) as follows:
4.1 Ownership
of the Notes. Each Priveco Noteholder owns, beneficially and of record, good and marketable title to the Note in
the principal amount set forth opposite such Priveco Noteholder’s name in Column II on Annex II attached hereto, free
and clear of all security interests, liens, adverse claims, encumbrances, equities, proxies, options or voting agreements. Each
Priveco Noteholder represents that they have no right or claims whatsoever to any equity interests of Priveco, other than pursuant
to the Note held by such Priveco Noteholder, and does not have any options, warrants or any other instruments entitling him to
exercise or purchase or convert into additional equity interests of Priveco. At the Closing, Priveco Noteholders will convey to
Pubco good and marketable title to the Notes, free and clear of any security interests, liens, adverse claims, encumbrances, equities,
proxies, options, Noteholders’ agreements or restrictions.
4.2 Authority
Relative to this Agreement. This Agreement has been duly and validly executed and delivered by Priveco Noteholders and constitutes
a valid and binding agreement of such Person, enforceable against such Person in accordance with its terms, except as such enforcement
may be limited by bankruptcy, insolvency or other similar laws affecting the enforcement of creditors’ rights generally or
by general principles of equity.
4.3 Purchase
of Restricted Securities for Investment. Each Priveco Noteholder acknowledges that the Conversion Shares will not be registered
pursuant to the Securities Act or any applicable state securities laws, that the Conversion Shares will be characterized as “restricted
securities” under federal securities laws, and that under such laws and applicable regulations the Conversion Shares cannot
be sold or otherwise disposed of without registration under the Securities Act or an exemption therefrom. In this regard,
each Priveco Noteholder is familiar with Rule 144 promulgated under the Securities Act, as currently in effect, and understands
the resale limitations imposed thereby and by the Securities Act. Further, each Priveco Noteholder acknowledges and
agrees that:
(c) Each
Priveco Noteholder is acquiring the Conversion Shares for investment for such Priveco Noteholder’s own account and not as
a nominee or agent, and not with a view to the resale or distribution of any part thereof, and each Priveco Noteholder has no present
intention of selling, granting any participation in, or otherwise distributing the same. Each Priveco Noteholder further
represents that he, she or it does not have any Contract, undertaking, agreement or arrangement with any person to sell, transfer
or grant participation to such person or to any third person, with respect to any of the Conversion Shares.
(d) Each
Priveco Noteholder understands that the Conversion Shares are not registered under the Securities Act on the ground that the sale
and the issuance of securities hereunder is exempt from registration under the Securities Act pursuant to Section 4(2) thereof,
and that Pubco’s reliance on such exemption is predicated on the each Priveco Noteholder’s representations set forth
herein.
4.4 Status
of Noteholder. Each of Priveco Noteholders hereby makes the representations and warranties in either paragraph (a) or (b) of
this Section 4.4, as indicated on the signature page of such Priveco Noteholder which is attached and part of this Agreement:
(a) Accredited
Investor Under Regulation D. Such Priveco Noteholder is an “Accredited Investor” as that term is defined
in Rule 501 of Regulation D promulgated under the Securities Act, an excerpt of which is included in the attached Annex II,
and such Priveco Noteholder is not acquiring its portion of the Conversion Shares as a result of any advertisement, article, notice
or other communication regarding the Conversion Shares published in any newspaper, magazine or similar media or broadcast over
television or radio or presented at any seminar or any other general solicitation or general advertisement.
(b) Non-U.S.
Person Under Regulation S. Such Priveco Noteholder:
(i) is
not a “U.S. person” as defined by Rule 902 of Regulation S promulgated under the Securities Act, was not organized
under the laws of any U.S. jurisdiction, and was not formed for the purpose of investing in securities not registered under the
Securities Act;
(ii) at
the time of Closing, such Priveco Noteholder was located outside the United States;
(iii) no
offer of the Conversion Shares was made to such Priveco Noteholder within the United States;
(iv) such
Priveco Noteholder is either (a) acquiring the Conversion Shares for its own account for investment purposes and not with a view
towards distribution, or (b) acting as agent for a principal that has signed this Agreement or has delivered representations and
warranties substantially similar to this Section 4.4(b);
(v) all
subsequent offers and sales of the Conversion Shares by such Priveco Noteholder will be made outside the United States in compliance
with Rule 903 of Rule 904 of Regulation S, pursuant to registration of the Conversion Shares under the Securities Act, or pursuant
to an exemption from such registration; such Priveco Noteholder understands the conditions of the exemption from registration afforded
by section 4(l) of the Securities Act and acknowledges that there can be no assurance that it will be able to rely on such exemption.
(vi) such
Priveco Noteholder will not resell the Conversion Shares to U.S. Persons or within the United States until after the end of the
Restricted Period;
(vii) such
Priveco Noteholder shall not and hereby agrees not to enter into any short sales with respect to the Common Stock of Pubco at any
time after the execution of this Agreement by such Priveco Noteholder and prior to the expiration of the Restricted Period;
(viii) such
Priveco Noteholder understands that the Conversion Shares are being offered and sold to it in reliance on specific provisions of
federal and state securities laws and that Pubco is relying upon the truth and accuracy of the representations, warranties, agreements,
acknowledgments and understanding of such Priveco Noteholder set forth herein in order to determine the applicability of such provisions. Accordingly,
such Priveco Noteholder agrees to notify Pubco of any events which would cause the representations and warranties of such Priveco
Noteholder to be untrue or breached at any time after the execution of this Agreement by such Priveco Noteholder and prior to the
expiration of the Restricted Period;
(ix) in
the event of resale of the Conversion Shares to non-U.S. Persons outside of the United States during the Restricted Period, such
Priveco Noteholder shall provide a written confirmation or other written notice to any distributor, dealer, or person receiving
a selling concession, fee, or other remuneration in respect of the Conversion Shares stating that such purchaser is subject to
the same restrictions on offers and sales that apply to the undersigned, and shall require that any such purchase shall provide
such written confirmation or other notice upon resale during the Restricted Period;
(x) such
Priveco Noteholder has not engaged, nor is it aware that any party has engaged, and it will not engage or cause any third party
to engage in any “directed selling” efforts (as such term is defined in Regulation S) in the United States with respect
to the Conversion Shares;
(xi) such
Priveco Noteholder is not a “distributor” as such term is defined in Regulation S, and it is not a “dealer”
as such term is defined in the Securities Act;
(xii) such
Priveco Noteholder has not taken any action that would cause any of the Parties to be subject to any claim for commission or other
or remuneration by any broker, finder, or other person; and
(xiii) such
Priveco Noteholder hereby represents that it has satisfied fully observed of the laws of the jurisdiction in which it is located
or domiciled, in connection with the acquisition of the Conversion Shares or this Agreement, including (A) the legal requirements
of such Priveco Noteholder’s jurisdiction for the purchase and acquisition of the Conversion Shares, (B) any foreign exchange
restrictions applicable to such purchase and acquisition, (C) any governmental or other consents that may need to be obtained,
and (D) the income tax and other tax consequences, if any, which may be relevant to the purchase, holding, redemption, sale, or
transfer of the Conversion Shares; and further, such Priveco Noteholder agrees to continue to comply with such laws as long as
it shall hold the Conversion Shares.
4.5 Investment
Risk. Each Priveco Noteholder is able to bear the economic risk of acquiring the Conversion Shares pursuant to the terms of
this Agreement, including a complete loss of such Priveco Noteholder’s investment in the Conversion Shares.
4.6 Restrictive
Legends. Each Priveco Noteholder acknowledges that the certificate(s) representing such Priveco Noteholder’s pro rata
portion of the Conversion Shares shall each conspicuously set forth on the face or back thereof a legend in substantially the form
set forth in Section 3.6, corresponding to the Noteholder’s status as set forth in Section 4.4 and the signature
pages hereto.
4.7 Disclosure. The
representations and warranties and statements of fact made by Priveco Noteholders in this Agreement are, as applicable, accurate,
correct and complete and do not contain any untrue statement of a material fact or omit to state any material fact necessary in
order to make the statements and information contained herein not false or misleading.
ARTICLE 5
REPRESENTATIONS AND WARRANTIES OF PUBCO
AND PUBCO STOCKHOLDER
Except as otherwise
disclosed herein or in a Schedule attached hereto, Pubco and Pubco Stockholder hereby, jointly and severally, represent and warrant,
to Priveco and Priveco Stockholders as of the date hereof and as of the Closing Date (unless otherwise indicated), as follows:
5.1 Organization
and Qualification. Pubco is an entity duly incorporated or otherwise organized, validly existing and in good standing
under the laws of the jurisdiction of its incorporation or organization, with the requisite power and authority to own and use
its properties and assets and to carry on its business as currently conducted. Pubco is neither in violation nor default
of any of the provisions of its Organizational Documents. Pubco is duly qualified to conduct business and is in good
standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property
owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may
be, could not have or reasonably be expected to result in a Material Adverse Effect, and no proceeding has been instituted in any
such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.
5.2 Authorization;
Enforcement. Pubco has the requisite corporate power and authority to enter into and to consummate the transactions
contemplated by this Agreement and otherwise to carry out its obligations hereunder. The execution and delivery of this
Agreement by Pubco and the consummation by it of the transactions contemplated hereby have been duly authorized by all necessary
action on the part of Pubco and no further action is required by Pubco, its board of directors or stockholders in connection therewith
other than in connection with the Required Approvals, as defined in Section 5.4. This Agreement has been (or
upon delivery will have been) duly executed by Pubco and, when delivered in accordance with the terms hereof, will constitute the
valid and binding obligation of Pubco enforceable against Pubco in accordance with its terms, except: (i) as limited by general
equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting
enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by
applicable law.
5.3 No
Conflicts. The execution, delivery and performance by Pubco of this Agreement and the consummation by Pubco of the
other transactions to which it is a party and as contemplated hereby do not and will not: (i) conflict with or violate any provision
of Pubco’s Organizational Documents, (ii) conflict with, or constitute a default (or an event that with notice or lapse of
time or both would become a default) under, result in the creation of any Lien upon any of the properties or assets of Pubco, or
give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both)
of, any agreement, credit facility, debt or other instrument (evidencing a Pubco debt or otherwise) or other understanding to which
Pubco is a party or by which any property or asset of Pubco is bound or affected, or (iii) subject to the Required Approvals, as
defined by Section 5.4, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction,
decree or other restriction of any court or governmental authority to which Pubco is subject (including federal and state securities
laws and regulations), or by which any property or asset of Pubco is bound or affected; except in the case of each of clauses (ii)
and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect.
5.4 Filings,
Consents and Approvals. Pubco is not required to obtain any consent, waiver, authorization or order of, give any
notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or
other Person in connection with the execution, delivery and performance by Pubco of this Agreement, other than the filing of a
Current Report on Form 8-K and Form D (if applicable) with the SEC and such filings as are required to be made under applicable
state securities laws (collectively, the “Required Approvals”).
5.5 Issuance
of the Exchange Shares and Conversion Shares; Exemptions from Registration. The Exchange Shares and Conversion Shares
are duly authorized and, when issued and paid for in accordance with this Agreement, will be duly and validly issued, fully paid
and nonassessable, free and clear of all Liens imposed on or by Pubco other than restrictions on transfer provided for in this
Agreement. Pubco has reserved from its duly authorized capital stock the maximum number of shares of Common Stock issuable pursuant
to this Agreement. All of Pubco’s issued and outstanding shares of Common Stock were issued pursuant to an exemption from
the registration requirements of the Securities Act as set forth in Schedule 5.5, which Schedule shall set forth the exemption
pursuant to which the shares were issued.
5.6 Capitalization. The
capitalization of Pubco is as set forth on Schedule 5.6 of the disclosure schedules hereto, which Schedule shall also include
the number of shares of the Common Stock owned beneficially, and of record, by Affiliates of Pubco as of the date hereof. Pubco
has not issued any capital stock since its most recently filed periodic report under the Exchange Act. No Person has
any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated
by this Agreement. There are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of
any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for,
or giving any Person any right to subscribe for or acquire any shares of the Common Stock, or Contracts, commitments, understandings
or arrangements by which Pubco is or may become bound to issue additional shares of the Common Stock or Common Stock Equivalents. The
issuance of the Exchange Shares and Conversion Shares will not obligate Pubco to issue shares of the Common Stock or other securities
to any Person (other than Priveco Stockholders) and will not result in a right of any holder of Pubco securities to adjust the
exercise, conversion, exchange or reset price under any of such securities. All of the outstanding shares of capital
stock of Pubco are validly issued, fully paid and nonassessable, have been issued in compliance with all federal and state securities
laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or
purchase securities. No further approval or authorization of any stockholder or Pubco’s board of directors is
required for the issuance of the Exchange Shares and Conversion Shares. There are no stockholders agreements, voting
agreements or other similar agreements with respect to Pubco’s capital stock to which Pubco is a party or, to the Knowledge
of Pubco, between or among any of Pubco’s stockholders.
5.7 SEC
Reports; Financial Statements. Pubco has filed all reports, schedules, forms, statements and other documents required
to be filed by Pubco under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the
two years preceding the date hereof (or such shorter period as Pubco was required by law or regulation to file such material) (the
foregoing materials, including the exhibits thereto and documents incorporated by reference therein, being collectively referred
to herein as the “SEC Reports”) on a timely basis or has received a valid extension of such time of filing and
has filed any such SEC Reports prior to the expiration of any such extension. As of their respective dates, the SEC
Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable, and
none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required
to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were
made, not misleading. The financial statements of Pubco included in the SEC Reports (the “Financial Statements”)
comply in all material respects with applicable accounting requirements and the rules and regulations of the SEC with respect thereto
as in effect at the time of filing. Such financial statements have been prepared in accordance with GAAP, except as
may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may
not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of Pubco as of and
for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited
statements, to normal, immaterial, year-end audit adjustments.
5.8 Material
Changes. Since the date of the latest audited financial statements included within the SEC Reports, except as specifically
disclosed in a subsequent SEC Report filed prior to the date hereof or in connection herewith: (i) there has been no event, occurrence
or development that has had or that could reasonably be expected to result in a Material Adverse Effect, (ii) Pubco has not incurred
any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of
business consistent with past practice and (B) liabilities not required to be reflected in Pubco’s financial statements pursuant
to GAAP or disclosed in filings made with the SEC, (iii) Pubco has not altered its method of accounting, (iv) Pubco has not declared
or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements
to purchase or redeem any shares of its capital stock and (v) Pubco has not issued any equity securities to any officer, director
or Affiliate. Pubco does not have pending before the SEC any request for confidential treatment of information. Except
for the issuance of the Exchange Shares and Conversion Shares contemplated by this Agreement, no event, liability or development
has occurred or exists with respect to Pubco or its business, properties, operations or financial condition, that would be required
to be disclosed by Pubco under applicable securities laws at the time this representation is made or deemed made that has not been
publicly disclosed at least one (1) Trading Day prior to the date that this representation is made.
5.9 Litigation. There
is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the Knowledge of Pubco, threatened
against or affecting Pubco or any of its properties before or by any court, arbitrator, governmental or administrative agency or
regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”) which: (i) adversely
affects or challenges the legality, validity or enforceability of this Agreement, the Exchange Shares or Conversion Shares, or
(ii) could, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect. Neither
Pubco nor any director or officer thereof, is or has been the subject of any Action involving a claim of violation of or liability
under federal or state securities laws or a claim of breach of fiduciary duty. There has not been, and to the Knowledge
of Pubco, there is not pending or contemplated, any investigation by the SEC or FINRA involving Pubco or any current or former
director or officer of Pubco. The SEC has not issued any stop order or other order suspending the effectiveness of any
registration statement filed by Pubco under the Securities Act.
5.10 Labor
Relations. No labor dispute exists or, to the Knowledge of Pubco, is imminent with respect to any of the employees
of Pubco which could reasonably be expected to result in a Material Adverse Effect. None of Pubco’s employees
is a member of a union that relates to such employee’s relationship with Pubco, and Pubco is not a party to a collective
bargaining agreement, and Pubco believes that its relationships with their employees are good. No executive officer,
to the Knowledge of Pubco, is, or is now expected to be, in violation of any material term of any employment contract, confidentiality,
disclosure or proprietary information agreement or non-competition agreement, or any other Contract or agreement or any restrictive
covenant in favor of any third party, and the continued employment of each such executive officer does not subject Pubco to any
liability with respect to any of the foregoing matters. Pubco is in compliance with all U.S. federal, state, local and
foreign laws and regulations relating to employment and employment practices, terms and conditions of employment and wages and
hours, except where the failure to be in compliance could not, individually or in the aggregate, reasonably be expected to have
a Material Adverse Effect.
5.11 Compliance. Pubco:
(i) is not in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of
time or both, would result in a default by Pubco under), nor has Pubco received notice of a claim that it is in default under or
that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party
or by which it or any of its properties is bound (whether or not such default or violation has been waived), (ii) is not in violation
of any order of any court, arbitrator or governmental body, or (iii) is not or has not been in violation of any statute, rule or
regulation of any governmental authority, including without limitation all foreign, federal, state and local laws applicable to
its business and all such laws that affect the environment, except in each case as could not have or reasonably be expected to
result in a Material Adverse Effect.
5.12 Regulatory
Permits. Pubco possesses all certificates, authorizations and permits issued by the appropriate federal, state,
local or foreign regulatory authorities necessary to conduct its business, except where the failure to possess such permits could
not reasonably be expected to result in a Material Adverse Effect (“Material Permits”), and Pubco has not received
any notice of proceedings relating to the revocation or modification of any Material Permit.
5.13 Title
to Assets. Pubco has good and marketable title in all personal property owned by it that is material to the business
of, in each case free and clear of all Liens, except for Liens that do not materially affect the value of such property and do
not materially interfere with the use made and proposed to be made of such property by Pubco and Liens for the payment of Taxes,
the payment of which is neither delinquent nor subject to penalties. Pubco does not own any real property. Any
real property and facilities held under lease by Pubco, if any is held by Pubco under valid, subsisting and enforceable leases
with which Pubco is in compliance.
5.14 Transactions
with Affiliates and Employees. Except as set forth in the SEC Reports, none of the officers or directors of Pubco
and, to the Knowledge of Pubco, none of the employees of Pubco is presently a party to any transaction with Pubco (other than for
services as employees, officers and directors), including any Contract, agreement or other arrangement providing for the furnishing
of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from
any officer, director or such employee or, to the Knowledge of Pubco, any entity in which any officer, director, or any such employee
has a substantial interest or is an officer, director, trustee or partner, in each case in excess of $120,000, other than for:
(i) payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses incurred on behalf of Pubco and
(iii) other employee benefits.
5.15 Xxxxxxxx-Xxxxx;
Internal Accounting Controls. Pubco is in material compliance with all provisions of the Xxxxxxxx-Xxxxx Act of 2002
which are applicable to it as of the Closing Date. Pubco maintains a system of internal accounting controls sufficient
to provide reasonable assurance that: (i) transactions are executed in accordance with management’s general or specific authorizations,
(ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain
asset accountability, (iii) access to assets is permitted only in accordance with management’s general or specific authorization,
and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate
action is taken with respect to any differences. Pubco has established disclosure controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15d-15(e)) for Pubco and designed such disclosure controls and procedures to ensure that information
required to be disclosed by Pubco in the reports it files or submits under the Exchange Act is recorded, processed, summarized
and reported, within the time periods specified in the SEC’s rules and forms. Pubco’s certifying officers
have evaluated the effectiveness of Pubco’s disclosure controls and procedures as of the end of the period covered by Pubco’s
most recently filed periodic report under the Exchange Act (such date, the “Evaluation Date”). Pubco
presented in its most recently filed periodic report under the Exchange Act the conclusions of the certifying officers about the
effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date. Since
the Evaluation Date, there have been no changes in Pubco’s internal control over financial reporting (as such term is defined
in the Exchange Act) that has materially affected, or is reasonably likely to materially affect, Pubco’s internal control
over financial reporting.
5.16 Certain
Fees. No brokerage or finder’s fees or commissions are or will be payable by Pubco to any broker, financial
advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated
by this Agreement.
5.17 Issuance
of Exchange Shares and Conversion Shares. Assuming the accuracy of Priveco Stockholders’ representations and warranties
set forth under Article 3, and Priveco Noteholders’ representations and warranties set forth under Article 4,
no registration under the Securities Act is required for the offer and issuance of the Exchange Shares to Priveco Stockholders
and the Conversion Shares to Priveco Noteholders by Pubco as contemplated hereby. The issuance of the Exchange Shares
and Conversion Shares hereunder does not contravene the rules and regulations of the applicable Trading Market.
5.18 Investment
Company. Pubco is not, and is not an Affiliate of, an “investment company” within the meaning of the Investment
Company Act of 1940, as amended.
5.19 Listing
and Maintenance Requirements. The Common Stock is currently quoted on FINRA’s Over-the-Counter Bulletin Board
Quotation Service (“OTC Bulletin Board”) and on the OTC Market Group Inc.’s
OTCQB quotation system (“OTCQB”) and Pubco has not, in the twenty four (24) months preceding the date hereof,
received any notice from the OTC Bulletin Board, OTCQB or FINRA or any trading market on which the Common Stock is or has been
listed or quoted to the effect that Pubco is not in compliance with the quoting, listing or maintenance requirements of the OTC
Bulletin Board, OTCQB or such other trading market. Pubco is, and has no reason to believe that it will not, in the foreseeable
future continue to be, in compliance with all such quoting, listing and maintenance requirements. Trading in securities generally
as reported by Bloomberg L.P. shall not have been suspended or limited, or minimum prices shall not have been established on securities
whose trades are reported by such service, or on any Trading Market, nor shall a banking moratorium have been declared either by
the United States or New York State authorities nor shall there have occurred any material outbreak or escalation of hostilities
or other national or international calamity of such magnitude in its effect on, or any material adverse change in, any financial
market which, in each case, in the reasonable judgment of Priveco Stockholders and Priveco Noteholders, makes it impracticable
or inadvisable to acquire the Exchange Shares and Conversion Shares at the Closing.
5.20 Application
of Takeover Protections. Pubco has taken all necessary action, if any, in order to render inapplicable any control
share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover
provision under Pubco’s Organizational Documents or the laws of its state of incorporation that is or could become applicable
to Priveco Stockholders and Priveco Noteholders as a result of Priveco Stockholders, Priveco Noteholders and Pubco fulfilling their
obligations or exercising their rights under this Agreement, including without limitation as a result of Pubco’s issuance
of the Exchange Shares and Conversion Shares, Priveco Stockholders’ ownership of the Exchange Shares and Priveco Noteholders’
ownership of the Conversion Shares.
5.21 No
Integrated Offering. Assuming the accuracy of Priveco Stockholders’ representations and warranties set forth under Article
3, and Priveco Noteholders’ representations and warranties set forth under Article 4, neither Pubco, nor any of
its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any offers or sales of any security
or solicited any offers to buy any security, under circumstances that would cause this offering of the Exchange Shares and Conversion
Shares to be integrated with prior offerings by Pubco for purposes of (i) the Securities Act which would require the registration
of any such securities under the Securities Act, or (ii) any applicable stockholder approval provisions of any Trading Market on
which any of the securities of Pubco are listed or designated.
5.22 Tax
Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result
in a Material Adverse Effect, Pubco has timely filed all necessary Tax Returns and has paid or accrued all Taxes shown as due thereon,
and Pubco has no Knowledge of a tax deficiency which has been asserted or threatened against Pubco.
5.23 No
General Solicitation. Neither Pubco nor any Person acting on behalf of Pubco has offered or sold any of the Exchange
Shares or Conversion Shares by any form of general solicitation or general advertising.
5.24 Foreign
Corrupt Practices. Neither Pubco, nor to the Knowledge of Pubco, any agent or other person acting on behalf of Pubco,
has: (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses related
to foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic government officials or employees
or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution
made by Pubco (or made by any person acting on its behalf of which Pubco is aware) which is in violation of law or (iv) violated
in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended.
5.25 Accountants. Pubco’s
accounting firm is set forth on Schedule 5.25 of the disclosure schedules hereto. To the Knowledge of Pubco,
such accounting firm: (i) is a registered public accounting firm as required by the Exchange Act and (ii) expressed its opinion
with respect to the financial statements for the period ended March 31, 2014 included in Pubco’s Registration Statement on
Form S-1/A, filed with the SEC on September 10, 2014.
5.26 No
Disagreements with Accountants and Lawyers. There are no disagreements of any kind, including but not limited to
any disagreements regarding fees owed for services rendered, presently existing, or reasonably anticipated by Pubco to arise, between
Pubco and the accountants and lawyers formerly or presently employed by Pubco which could affect Pubco’s ability to perform
any of its obligations under this Agreement, and Pubco is current with respect to any fees owed to its accountants and lawyers.
5.27 Regulation
M Compliance. Pubco has not, and to the Knowledge of Pubco no Person acting on its behalf has, (i) taken, directly or
indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of Pubco
to facilitate the sale or resale of any of the Exchange Shares or Conversion Shares, (ii) sold, bid for, purchased, or paid any
compensation for soliciting purchases of, any of the securities of Pubco, or (iii) paid or agreed to pay to any Person any compensation
for soliciting another to purchase any other securities of Pubco.
5.28 Money
Laundering Laws. The operations of Pubco are and have been conducted at all times in compliance with applicable
financial record-keeping and reporting requirements of the money laundering statutes of all U.S. and non-U.S. jurisdictions, the
rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced
by any governmental body (collectively, the “Money Laundering Laws”) and no action, suit or proceeding by or
before any court or governmental agency, authority or body or any arbitrator involving Pubco with respect to the Money Laundering
Laws is pending or, to the Knowledge of Pubco, threatened.
5.29 Minute
Books. The minute books of Pubco made available to Priveco and Priveco Stockholders contain a complete summary of all meetings
and written consents in lieu of meetings of directors and stockholders since the time of incorporation.
5.30 Employee
Benefits. Pubco has not (nor for the two years preceding the date hereof has) had any plans which are subject to
ERISA.
5.31 Business
Records and Due Diligence. Prior to the Closing, Pubco delivered to Priveco all records and documents relating to
Pubco, which Pubco and possesses, including, without limitation, books, records, government filings, Tax Returns, Organizational
Documents, corporate records, stock records, consent decrees, orders, and correspondence, director and stockholder minutes, resolutions
and written consents, stock ownership records, financial information and records, and other documents used in or associated with
Pubco.
5.32 Contracts. Except
as set forth in the SEC Reports, there are no Contracts that are material to the business, properties, assets, condition (financial
or otherwise), results of operations or prospects of Pubco taken as a whole. Pubco is not in violation of or in default
under (nor does there exist any condition which upon the passage of time or the giving of notice would cause such a violation of
or default under) any Contract to which it is a party or by which it or any of its properties or assets is bound, except for violations
or defaults that would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.
5.33 No
Undisclosed Liabilities. Except as otherwise disclosed in Pubco’s financial statements included with Pubco’s
Quarterly Report on Form 10-Q filed with the SEC on July 24, 2015, and except for those liabilities incurred by Pubco in the ordinary
course of business after December 31, 2014, Pubco has no other undisclosed liabilities whatsoever, either direct or indirect, matured
or unmatured, accrued, absolute, contingent or otherwise. Pubco represents that at the Closing Date, Pubco shall have
no liabilities or obligations whatsoever, either direct or indirect, matured or unmatured, accrued, absolute, contingent or otherwise.
5.34 No
SEC or FINRA Inquiries or Trading Suspensions. Neither Pubco nor any of its past or present officers or directors is, or has
ever been, the subject of any formal or informal inquiry or investigation by the SEC or FINRA. Trading in the Common Stock is,
and has not previously been, suspended by the SEC or FINRA.
5.35 DTC
Program. Pubco employs a transfer agent for its Common Stock that is a participant in the Depositary Trust Company’s
(“DTC”) Automated Securities Transfer Program, the Common Stock is fully transferable pursuant to such program
(“DTC Eligible”), and the DTC has not given Pubco any formal or informal notice to the effect that the Common
Stock is not or may not continue to be DTC Eligible.
5.36 No
Disqualification Events. None of Pubco, any of its predecessors, any affiliated issuer, any director, executive officer, other
officer of Pubco participating in the transactions hereunder, any beneficial owner of 20% or more of Pubco's outstanding voting
equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under the Securities
Act) connected with Pubco in any capacity at the time of the Closing (each, an “Issuer Covered Person”) is subject
to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under the Securities Act
(a “Disqualification Event”), except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3). Pubco
has exercised reasonable care to determine whether any Issuer Covered Person is subject to a Disqualification Event. Pubco has
complied, to the extent applicable, with its disclosure obligations under Rule 506(e), and has furnished to Priveco Stockholders
a copy of any disclosures provided thereunder.
5.37 Shell
Company. Pubco is not and has never been a “shell company” within the meaning of such term in Rule 405 under the
Securities Act.
5.38 Subsidiaries.
Immediately prior to the Closing, Pubco shall have no direct or indirect Subsidiaries.
5.39 Disclosure. The
representations and warranties and statements of fact made by Pubco and Pubco Stockholders in this Agreement are, as applicable,
accurate, correct and complete and do not contain any untrue statement of a material fact or omit to state any material fact necessary
in order to make the statements and information contained herein not false or misleading.
ARTICLE 6
REPRESENTATIONS AND WARRANTIES OF PUBCO STOCKHOLDER
Pubco Stockholder.
Pubco Stockholder hereby represents and warrants to Priveco and Priveco Stockholders as of the date hereof and as of the Closing
Date (unless otherwise indicated), as follows:
6.1 Ownership
of Pubco Capital Stock. Pubco Stockholder owns, beneficially and of record, good and marketable title to the Cancellation
Shares, free and clear of any security interests, liens, adverse claims, encumbrances, equities, proxies, options or stockholders’
agreements, and has no right or claims whatsoever to any other shares of Pubco capital stock and does not have any options, warrants
or any other instruments entitling it to exercise to purchase or convert into shares of Pubco capital stock.
6.2 Authority
Relative to this Agreement. This Agreement has been duly and validly executed and delivered by Pubco Stockholder
and constitutes a valid and binding agreement of it, enforceable against Pubco Stockholder in accordance with its terms, except
as such enforcement may be limited by bankruptcy, insolvency or other similar laws affecting the enforcement of creditors’
rights generally or by general principles of equity.
6.3 Disclosure. The
representations and warranties and statements of fact made by Pubco Stockholder in this Agreement are, as applicable, accurate,
correct and complete and do not contain any untrue statement of a material fact or omit to state any material fact necessary in
order to make the statements and information contained herein not false or misleading.
ARTICLE 7
SURVIVAL OF REPRESENTATIONS
7.1 Survival
of Representations and Warranties. Notwithstanding provision in this Agreement to the contrary, the representations and warranties
given or made by Pubco, Pubco Stockholder, Priveco, Priveco Stockholders and Priveco Noteholders under this Agreement shall survive
the date hereof for a period of twenty four (24) months from and after the Closing Date (the last day of such period is herein
referred to as the “Expiration Date”), except that any written claim for breach thereof made and delivered prior
to the Expiration Date to the party against whom such indemnification is sought shall survive thereafter and, as to any such claim,
such applicable expiration will not affect the rights to indemnification of the party making such claim; provided, however,
that any representations and warranties that were fraudulently made shall not expire on the Expiration Date and shall survive indefinitely,
and claims with respect to fraud by Pubco, Pubco Stockholder, Priveco, Priveco Stockholders or Priveco Noteholders may be made
at any time. Nothing in this Article 7 shall impair or alter any covenant or agreement of the Parties which by its terms
contemplates performance after the Closing Date.
ARTICLE 8
COVENANTS OF THE PARTIES
8.1 Corporate
Examinations and Investigations. Prior to the Closing, each Party shall be entitled, through its employees and representatives,
to make such investigations and examinations of the books, records and financial condition of Priveco and Pubco as each party may
request. In order that each Party may have the full opportunity to do so, Priveco, Pubco, Priveco Stockholders and Pubco Stockholder
shall furnish each Party and its representatives during such period with all such information concerning the affairs of Priveco
or Pubco as each Party or its representatives may reasonably request and cause Priveco or Pubco and their respective officers,
employees, consultants, agents, accountants and attorneys to cooperate fully with each Party’s representatives in connection
with such review and examination and to make full disclosure of all information and documents requested by each Party and/or its
representatives. Any such investigations and examinations shall be conducted at reasonable times and under reasonable circumstances,
it being agreed that any examination of original documents will be at each Party’s premises, with copies thereof to be provided
to each Party and/or its representatives upon request.
8.2 Cooperation;
Consents. Upon the terms and subject to the conditions set forth in this Agreement, each of the Parties agrees to use its best
efforts to take, or cause to be taken, all actions, and to do, or cause to be done, and to assist and cooperate with the other
Parties in doing, all things necessary, proper or advisable to consummate and make effective, in the most expeditious manner practicable,
the Share Exchange and the other transactions contemplated by this Agreement. Pubco and Priveco and their respective representatives
will use their best efforts and cooperate with one another: (i) in promptly determining whether any filings are required to be
made or consents, approvals, waivers, permits or authorizations are required to be obtained (or, which if not obtained, would result
in an event of default, termination or acceleration of any agreement or any put right under any agreement) under any applicable
law or regulation or from any governmental authorities or third parties, in promptly making any such filings and in furnishing
information required in connection therewith and in timely seeking to obtain any such consents, approvals, permits or authorizations
and (ii) in facilitating each other’s due diligence investigations. The Parties shall mutually cooperate in order to facilitate
the achievement of the benefits reasonably anticipated from the Share Exchange.
8.3 Conduct
of Business. Subject to the provisions hereof, from the date hereof through the Closing, each Party shall (i) conduct its business
in the ordinary course and in such a manner so that the representations and warranties contained herein shall continue to be true
and correct in all material respects as of the Closing as if made at and as of the Closing and (ii) not enter into any material
transactions or incur any material liability not required or specifically contemplated hereby, without first obtaining the written
consent of Priveco and Priveco Stockholders on the one hand, and Pubco and Pubco Stockholder on the other hand. Without the prior
written consent of Priveco, Priveco Stockholders, Pubco or Pubco Stockholder, except as required or specifically contemplated hereby,
each party shall not undertake or fail to undertake any action if such action or failure would render any of said warranties and
representations untrue in any material respect as of the Closing.
8.4 Litigation.
From the date hereof through the Closing, each Party shall promptly notify the representative of the other Parties of any lawsuits,
claims, proceedings or investigations which after the date hereof are threatened or commenced against such Party or any of its
Affiliates or any officer, director, employee, consultant, agent or stockholder thereof, in their capacities as such, which, if
decided adversely, could reasonably be expected to have a Material Adverse Effect on such Party.
8.5 Notice
of Default. From the date hereof through the Closing, each Party shall give to the representative of the other Parties prompt
written notice of the occurrence or existence of any event, condition or circumstance occurring which would constitute a violation
or breach of this Agreement by such party or which would render inaccurate in any material respect any of such Party’s representations
or warranties herein.
8.6 Confidentiality;
Access to Information.
(a) Confidentiality.
Any confidentiality agreement or letter of intent previously executed by the Parties shall be superseded in its entirety by the
provisions of this Agreement. Each party agrees to maintain in confidence any non-public information received from the other party,
and to use such non-public information only for purposes of consummating the transactions contemplated by this Agreement. Such
confidentiality obligations will not apply to (i) information which was known to the one party or their respective agents prior
to receipt from the other party; (ii) information which is or becomes generally known; (iii) information acquired by a party or
their respective agents from a third party who was not bound to an obligation of confidentiality; and (iv) disclosure required
by law. In the event this Agreement is terminated as provided in Article 10 hereof, each party will return or
cause to be returned to the other all documents and other material obtained from the other in connection with the Transaction contemplated
hereby.
(b) Access
to Information. Pubco will afford Priveco and its financial advisors, underwriters, accountants, counsel and other representatives
reasonable access during normal business hours, upon reasonable notice, to the properties, books, records and personnel of Pubco
during the period prior to the Closing to obtain all information concerning the business, including the status of product development
efforts, properties, results of operations and personnel of Pubco, as Priveco may reasonably request. No information
or Knowledge obtained by Priveco in any investigation pursuant to this Section 8.6 will affect or be deemed to modify any
representation or warranty contained herein or the conditions to the obligations of the Parties to consummate the Transaction.
8.7 Public
Disclosure. Except to the extent previously disclosed or to the extent the Parties believe that they are required by applicable
law or regulation to make disclosure, prior to Closing, no party shall issue any statement or communication to the public regarding
the transaction contemplated herein without the consent of the other party, which consent shall not be unreasonably withheld. To
the extent a Party believes it is required by law or regulation to make disclosure regarding the Transaction, it shall, if possible,
immediately notify the other party prior to such disclosure. Notwithstanding the foregoing, the Parties agree that Priveco will
prepare and file a Current Report on Form 8-K pursuant to the Exchange Act to report the execution of this Agreement.
8.8 Assistance
with Post-Closing SEC Reports and Inquiries. Upon the reasonable request of Priveco, after the Closing Date, Pubco Stockholder
shall use its reasonable best efforts to provide such information available to it, including information, filings, reports, financial
statements or other circumstances of Pubco occurring, reported or filed prior to the Closing, as may be necessary or required by
Pubco for the preparation of the post-Closing Date reports that Pubco is required to file with the SEC to remain in compliance
and current with its reporting requirements under the Securities Act, or filings required to address and resolve matters as may
relate to the period prior to the Closing and any SEC comments relating thereto or any SEC inquiry thereof.
8.9 Designation
of New Officers and Directors. On the Closing Date, Pubco shall accept the resignation of Xxxxx Xxxxxx as President, Chief
Financial Officer and sole director, and Xxxx Xxxxx as Secretary, with both resignations to be effective on the Closing Date. On
the Closing Date, Pubco shall also appoint Xxxxxxx Xxxxxxxx and Xxxxxxx Xxxxxx as new members of Pubco’s board of directors.
In addition, effective on the Closing Date, Pubco shall appoint the following new officer of Pubco: Xxxxxxx Xxxxxx as the Chief
Executive Officer and President, and Xxxxx X. Xxxxx as Chief Financial Officer, Treasurer and Secretary.
8.10 Payment
of Pubco Liabilities. Pubco and Pubco Stockholder agree to pay, on or before the Closing Date, all of the liabilities of Pubco
in their entirety and all of Pubco’s expenses through the Closing Date that are related to the transactions contemplated
by this Agreement.
8.11 Shares
Cancellation. In connection with the Cancellation Agreement and immediately prior to the Closing, Pubco Stockholder and Pubco
each agrees to execute and deliver any and all agreements, documents and instruments reasonably necessary to effect such cancellation,
including originally executed stock certificate(s) and stock power(s) with proper endorsements and/or medallion certified signatures
(or equivalent) as may be required by Pubco’s transfer agent for the cancellation (the “Shares Cancellation”).
8.12 Bylaws
Amendment. Prior to the Closing, Pubco hereby agrees to adopt an amendment to its by-laws and file a Form 8-K with respect
to such amendment, which provides that the provisions of NRS 78.378 to 78.3793 shall not apply to any transaction in which a controlling
interest is issued in a transaction which is approved by the Pubco’s board of directors (the “Bylaws Amendment”).
ARTICLE 9
CONDITIONS TO CLOSING
9.1 Conditions
to Obligations of Priveco, Priveco Stockholders and Priveco Noteholders. The obligations of Priveco, Priveco Stockholders and
Priveco Noteholders under this Agreement shall be subject to each of the following conditions:
(a) Closing
Deliveries. At the Closing, Pubco and Pubco Stockholder shall have delivered or caused to be delivered to Priveco and Priveco
Stockholders the following:
(i) this
Agreement duly executed by Pubco’s duly authorized signatory and by Pubco Stockholder;
(ii) the
Cancellation Agreement duly executed by Pubco’s duly authorized signatory and by Pubco Stockholder;
(iii) letters
of resignation from Pubco’s current executive officers as follows: (1) letter of resignation of Xxxxx Xxxxxx as to all of
the offices he currently holds with Pubco to be effective on the Closing Date and confirming that he has no claim against Pubco
in respect of any outstanding remuneration or fees of whatever nature as of the Closing Date; and (b) letter of resignation of
Xxxx Xxxxx as Secretary of Pubco to be effective on the Closing Date and confirming that he has no claim against Pubco in respect
of any outstanding remuneration or fees of whatever nature as of the Closing Date;
(iv) letters
of resignation from Pubco’s current directors as follows: (a) letters of resignation of Xxxxx Xxxxxx as sole director, with
resignation to be effective on the Closing Date and confirming that he has no claim against Pubco in respect of any outstanding
remuneration or fees of whatever nature as of the Closing Date;
(v) resolutions
duly adopted by the board of directors of Pubco approving the following events or actions, as applicable:
(A) the
execution, delivery and performance of this Agreement;
(B) the
Share Exchange and the terms thereof;
(C) the
Conversion and the terms thereof;
(D) the
Shares Cancellation and the terms thereof;
(E) the
change of Pubco’s fiscal year end from March 31 to December 31;
(F) the
appointment of Xxxxxxx Xxxxxxxx and Xxxxxxx Xxxxxx to Pubco’s board of directors, effective on the Closing Date; and
(G) the
appointment of the following person/s as officer/s of Pubco, with the titles set forth opposite his name, effective on the Closing
Date:
|
Xxxxxxx Xxxxxx |
Chief Executive Officer, President, |
|
Xxxxx X. Xxxxx |
Chief Financial Officer, Treasurer and Secretary |
(vi) a
certificate of good standing for Pubco from its jurisdiction of incorporation, dated not earlier than three calendar (3) days prior
to the Closing Date (the “Good Standing Certificate”);
(vii) an
instruction letter signed by the President of Pubco addressed to Pubco’s transfer agent of record, in a form reasonably acceptable
to Priveco and Pubco’s transfer agent and consistent with the terms of this Agreement, instructing the transfer agent to
issue stock certificates representing the Exchange Shares and Conversion Shares to be delivered pursuant to this Agreement registered
in the names set forth in Annex I and Annex II;
(viii) a
certificate of the Secretary of the Pubco, dated as of the Closing Date, certifying as to (a) the incumbency of officers of the
Pubco executing this Agreement and all exhibits and schedules hereto and all other documents, instruments and writings required
pursuant to this Agreement (the “Transaction Documents”), (b) a copy of the Articles of Incorporation and Bylaws
of the Pubco, as in effect on and as of the Closing Date, and (c) a copy of the resolutions of the board of directors of Pubco
authorizing and approving the Pubco’s execution, delivery and performance of the Transaction Documents, all matters in connection
with the Transaction Documents, and the transactions contemplated thereby;
(ix) a
stockholder list of Pubco as certified by the Pubco’s transfer agent, dated within three (3) calendar days of the Closing
Date;
(x) all
corporate records, Organizational Documents, agreements, seals and any other information reasonably requested by Priveco’s
representatives with respect to Pubco;
(xi) evidence
satisfactory to Priveco of the delivery by Pubco Stockholder to Pubco of the original stock certificates representing the Cancellation
Shares, accompanied by a stock power(s) with proper endorsements and/or medallion certified signatures (or equivalent) as may be
required by Pubco’s transfer agent for the cancellation and any and all other agreements, documents and instruments required
by the transfer agent for the Shares Cancellation as described in Section 8.11 herein;
(xii)
evidence satisfactory to Priveco of the completion of the Bylaws Amendment as described in Section 8.12; and
(xiii) such
other documents as Priveco and/or Priveco Stockholders may reasonably request in connection with the transactions contemplated
hereby.
(b) Representations
and Warranties to be True. The representations and warranties of Pubco and Pubco Stockholder herein contained shall be true
in all material respects at the Closing with the same effect as though made at such time. Pubco and Pubco Stockholder
shall have performed in all material respects all obligations and complied in all material respects with all covenants and conditions
required by this Agreement to be performed or complied with by them at or prior to the Closing.
(c) No
Assets, Subsidiaries and Liabilities. At the Closing, Pubco shall have no liabilities, debts, Liens or payables (direct or
indirect, matured or unmatured, accrued, absolute, contingent or otherwise), no tax obligations, no material assets, no Subsidiaries,
and except as contemplated in this Agreement, no material changes to its business or financial condition shall have occurred since
the date of this Agreement. At the Closing, Pubco shall provide evidence of the extinguishment of all Pubco pre-Closing liabilities,
including but not limited to Pubco’s debts, liabilities, Liens, payables (direct or indirect, matured or unmatured, accrued,
absolute, contingent or otherwise) and tax obligations as requested by Priveco.
(d) SEC
Filings. At the Closing, Pubco will be current in all SEC filings that Pubco is required to file.
(e) Outstanding
Capital Stock. Pubco shall have at least 100,000,000 shares of its Common Stock authorized and shall have no more than 44,533,750
shares of its Common Stock issued and outstanding immediately prior to the Closing.
(f) No
Adverse Effect. The business and operations of Pubco will not have suffered any Material Adverse Effect.
9.2 Conditions
to Obligations of Pubco. The obligations of Pubco and Pubco Stockholder under this Agreement shall be subject to each of the
following conditions:
(a) Closing
Deliveries. On the Closing Date, Priveco and/or Priveco Stockholders shall have delivered to Pubco the following:
(i) this
Agreement duly executed by Priveco, Priveco Stockholders and Priveco Noteholders;
(ii) resolutions
duly adopted by the board of directors of Priveco authorizing and approving the execution, delivery and performance of this Agreement;
(iii) certificates
representing the Priveco Shares to be delivered pursuant to this Agreement duly endorsed or accompanied by duly executed stock
powers, instruments of transfer or other executed instruments of like tenor;
(iv) the
Notes to be delivered for cancellation pursuant to this Agreement; and
(v) such
other documents as Pubco may reasonably request in connection with the transactions contemplated hereby.
(b) Representations
and Warranties True and Correct. The representations and warranties of Priveco, Priveco Stockholders and Priveco Noteholders
herein contained shall be true in all material respects at the Closing with the same effect as though made at such time. Priveco,
Priveco Stockholders and Priveco Noteholders shall have performed in all material respects all obligations and complied in all
material respects with all covenants and conditions required by this Agreement to be performed or complied with by them at or prior
to the Closing.
(c) No
Adverse Effect. The business and operations of Priveco will not have suffered any Material Adverse Effect.
ARTICLE 10
SEC FILING; TERMINATION
10.1 Termination.
This Agreement may be terminated at any time prior to the Closing:
(a) by
mutual written agreement of Pubco and Priveco Stockholders;
(b) by
either Pubco, Priveco or Priveco Stockholders if the Transaction shall not have been consummated for any reason by September 30,
2015;
(c) by
either Pubco, Priveco or Priveco Stockholders if a governmental entity shall have issued an order, decree or ruling or taken any
other action, in any case having the effect of permanently restraining, enjoining or otherwise prohibiting the Transaction, which
order, decree, ruling or other action is final and non-appealable;
(d) by
Priveco or Priveco Stockholders: (i) if Priveco is not satisfied with the results of its due diligence investigation and Priveco
so notifies Pubco or its representatives before June 30, 2015, or (ii) if Pubco or Pubco Stockholder shall have breached in any
material respect any of its representations, warranties, covenants or other agreements contained in this Agreement, and the breach
cannot be or has not been cured before September 30, 2015.
10.2 Notice
of Termination; Effect of Termination. Any termination of this Agreement under Section 10.1 above will be effective
immediately upon the delivery of written notice of the terminating Party to the other Parties. In the event of the termination
of this Agreement as provided in Section 10.1, this Agreement shall be of no further force or effect and the Transaction
shall be abandoned, except as set forth in Section 10.1, Section 10.2 and Article 11 (General Provisions),
each of which shall survive the termination of this Agreement.
ARTICLE 11
GENERAL PROVISIONS
11.1 Notices. Any
and all notices and other communications hereunder shall be in writing and shall be deemed duly given to the party to whom the
same is so delivered, sent or mailed at addresses and contact information set forth on the signature pages hereof (or at such other
address for a party as shall be specified by like notice). Any notices or other communications required or permitted
hereunder shall be in writing, delivered via facsimile, U.S. nationally recognized overnight courier or by hand-delivery and shall
be deemed sufficiently given, received and effective on the earliest of: (i) the date of transmission, if such notice or communication
is delivered via confirmed facsimile at the applicable facsimile number set forth on the signature pages attached hereto prior
to 5:30 p.m. (Pacific Standard Time) on a Trading Day, (ii) the next Trading Day after the date of transmission, if such notice
or communication is delivered via confirmed facsimile at the applicable facsimile number set forth on the signature pages attached
hereto on a day that is not a Trading Day or later than 5:30 p.m. (Pacific Standard Time) on any Trading Day, (iii) the first Trading
Day following the date of mailing, if sent to the applicable address set forth in the signature pages hereto by U.S. nationally
recognized overnight courier service, or (iv) the date of actual receipt by the party to whom such notice or communication is required
or permitted to be given, if such notice or communication is hand-delivered to such party.
11.2 Interpretation.
The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation
of this Agreement. References to Sections and Articles refer to sections and articles of this Agreement unless otherwise
stated.
11.3 Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, void
or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force
and effect and shall in no way be affected, impaired or invalidated and the Parties shall negotiate in good faith to modify this
Agreement to preserve each party’s anticipated benefits under this Agreement.
11.4 Miscellaneous.
This Agreement (together with all other documents and instruments referred to herein): (a) constitutes the entire agreement and
supersedes all other prior agreements and undertakings, both written and oral, among the Parties with respect to the subject matter
hereof; (b) except as expressly set forth herein, is not intended to confer upon any other person any rights or remedies hereunder
and (c) shall not be assigned by operation of law or otherwise, except as may be mutually agreed upon by the Parties.
11.5 Separate
Counsel. Each Party hereby expressly acknowledges that it has been advised to seek its own separate legal counsel for advice
with respect to this Agreement.
11.6 Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall
be governed by and construed and enforced in accordance with the internal laws of the State of Delaware, without regard to the
principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations,
enforcement and defense of the transactions contemplated by this Agreement (whether brought against a Party or its respective affiliates,
directors, officers, stockholders, employees or agents) shall be commenced exclusively in the state and federal courts sitting
in the City of Los Angeles. Each Party hereby irrevocably submits to the exclusive jurisdiction of the state and federal
courts sitting in the City of Los Angeles, County of Los Angeles for the adjudication of any dispute hereunder or in connection
herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of the Agreement),
and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally
subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an inconvenient
venue for such proceeding. Each Party hereby irrevocably waives personal service of process and consents to process
being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery
(with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such
service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be
deemed to limit in any way any right to serve process in any other manner permitted by law. If any Party shall commence
an action or proceeding to enforce any provisions of the Agreement, then the prevailing Party in such action or proceeding shall
be reimbursed by the other Party(s) for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation,
preparation and prosecution of such action or proceeding.
11.7 Counterparts
and Facsimile Signatures. This Agreement may be executed simultaneously in two 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 Agreement.
This Agreement, to the extent delivered by means of a facsimile machine or electronic mail (any such delivery, an “Electronic
Delivery”), shall be treated in all manner and respects as an original agreement or instrument and shall be considered
to have the same binding legal effect as if it were the original signed version thereof delivered in person. At the request of
any Party, each other Party shall re-execute original forms hereof and deliver them in person to all other Parties. No Party shall
raise the use of Electronic Delivery to deliver a signature or the fact that any signature or agreement or instrument was transmitted
or communicated through the use of Electronic Delivery as a defense to the formation of a contract, and each such Party forever
waives any such defense, except to the extent such defense related to lack of authenticity.
11.8 Amendment.
This Agreement may be amended, modified or supplemented only by an instrument in writing executed by Priveco, Pubco and holders
of a majority of the equity interests of Priveco and the holders of a majority of outstanding voting stock of Pubco; provided that,
the consent of any Priveco Stockholder or Pubco Stockholder that is a party to this Agreement shall be required if the amendment
or modification would disproportionately affect such stockholder (other than by virtue of their ownership of Priveco or Exchange
Shares, as applicable).
11.9 Parties
In Interest. Except as otherwise provided herein, the terms and conditions of this Agreement shall inure to the benefit of
and be binding upon the respective heirs, legal representatives, successors and assigns of the Parties.
11.10 Waiver.
No waiver by any party of any default or breach by another party of any representation, warranty, covenant or condition contained
in this Agreement shall be deemed to be a waiver of any subsequent default or breach by such party of the same or any other representation,
warranty, covenant or condition. No act, delay, omission or course of dealing on the part of any party in exercising any right,
power or remedy under this Agreement or at law or in equity shall operate as a waiver thereof or otherwise prejudice any of such
party’s rights, powers and remedies. All remedies, whether at law or in equity, shall be cumulative and the election of any
one or more shall not constitute a waiver of the right to pursue other available remedies.
11.11 Expenses.
At or prior to the Closing, the Parties shall pay all of their own expenses relating to the transactions contemplated by this Agreement,
including, without limitation, the fees and expenses of their respective counsel and financial advisers.
11.12 Third
Party Beneficiaries. This Agreement is strictly between Pubco, Pubco Stockholder, Priveco and Priveco Stockholders,
and, except as specifically provided, no director, officer, stockholder (other than Priveco Stockholders), employee, agent, independent
contractor or any other Person or entity shall be deemed to be a third party beneficiary of this Agreement.
[Remainder of Page Left Blank Intentionally]
IN WITNESS WHEREOF, the
Parties have executed this Share Exchange Agreement as of the date first written above.
PUBCO: |
|
|
|
TABACALERAYSIDRON, INC., |
|
a Nevada corporation |
|
|
|
By: |
|
|
Name: Xxxxx Xxxxxx |
|
Title: Chief Executive Officer and President |
|
Address for Notices:
|
000 Xxxxxx Xxxxx, Xxxxx 000 |
|
|
Xxxxxx Xxxx, Xxxxx Xxxxxxxx 00000 |
|
|
Phone: (000) 000-0000 |
|
|
Fax: |
|
|
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.
SIGNATURE PAGE FOR PUBCO STOCKHOLDER AND XXXX
X. XXXXXXXX FOLLOWS.]
SIGNATURE PAGE OF PUBCO STOCKHOLDER
PUBCO STOCKHOLDER: |
|
|
|
|
|
Name: |
|
|
|
Address for Notices: |
|
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.
SIGNATURE PAGE FOR PRIVECO FOLLOWS.]
SIGNATURE PAGE OF PRIVECO
PRIVECO: |
|
MOUNT TAM BIOTECHNOLOGIES, INC., |
a Delaware corporation |
|
|
By: |
|
|
Name: Xxxxxxx Xxxxxx |
|
Title: Chief Executive Officer |
|
Address for Notices:
0000 Xxxxxxx Xxxxxxxxx
Xxxxxx, Xxxxxxxxxx 00000
Tel:
Fax:
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.
SIGNATURE PAGES FOR PRIVECO STOCKHOLDERS FOLLOWS.]
SIGNATURE PAGES OF PRIVECO STOCKHOLDERS
PRIVECO STOCKHOLDERS:
|
|
Name: |
|
|
|
Address for Notices: |
|
Check One:
This Priveco Stockholder hereby certifies that it is:
¨ an
“Accredited Investor” under Regulation D of the Securities Act (see Section 3.4 and Annex III of this
Agreement); or
¨ a
Non-U.S. Person, that hereby confirms that the representations and warranties in Section 3.4(b) of this Agreement are true
and correct as to such Priveco Stockholder, and hereby accepts and agrees to comply with the covenants in Section 3.4(b).
SIGNATURE PAGES OF PRIVECO NOTEHOLDERS
PRIVECO NOTEHOLDERS:
[Name of Noteholder]
Address for Notices:
Check One:
This Priveco Noteholder hereby certifies that it is:
¨ an
“Accredited Investor” under Regulation D of the Securities Act (see Section 3.4 and Annex IIII of this
Agreement); or
¨ a
Non-U.S. Person, that hereby confirms that the representations and warranties in Section 3.4(b) of this Agreement are true
and correct as to such Priveco Stockholder, and hereby accepts and agrees to comply with the covenants in Section 3.4(b).
ANNEX I
PRIVECO STOCKHOLDERS
I |
|
II |
|
III |
|
IV |
Name |
|
Shares Owned in
Priveco |
|
Exchange Shares to
be Received in
Exchange for
Priveco Shares |
|
Exchange Shares as
% of Issued and
Outstanding Shares
Immediately after
Closing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Shares |
|
|
|
|
|
|
ANNEX II
PRIVECO NOTEHOLDERS
I |
|
II |
|
III |
|
IV |
Name |
|
Principal Amount of
Note Held by
Noteholder
($) |
|
Conversion Shares to
be Received for
Cancellation of Note |
|
Conversion Shares
as % of Issued and
Outstanding Shares
Immediately after
Closing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
ANNEX III
ACCREDITED INVESTOR DEFINITION
| Category A | The undersigned is a natural person (not a partnership,
corporation, etc.) whose individual net worth, or joint net worth with his or her spouse, excluding the value of the primary residence
of such natural person, presently exceeds $1,000,000. |
| Category B | The undersigned is a natural person (not a partnership,
corporation, etc.) who had an income in excess of $200,000 in each of the two most recent years, or joint income with his or her
spouse in excess of $300,000 in each of those years (in each case including foreign income, tax exempt income and full amount
of capital gains and losses but excluding any income of other family members and any unrealized capital appreciation) and has
a reasonable expectation of reaching the same income level in the current year. |
| Category C | The undersigned is a director or executive officer of the
company which is issuing and selling the securities. |
| Category D | The undersigned is a bank; a savings and loan association;
insurance company; registered investment company; registered business development company; licensed small business investment
company (“SBIC”); or employee benefit plan within the meaning of Title 1 of ERISA and (a) the investment decision
is made by a plan fiduciary which is either a bank, savings and loan association, insurance company or registered investment advisor,
or (b) the plan has total assets in excess of $5,000,000 or (c) is a self-directed plan with investment decisions made solely
by persons that are accredited investors. |
| Category E | The undersigned is a private business development company
as defined in section 202(a)(22) of the Investment Advisors Act of 1940. |
| Category F | The undersigned is either a corporation, partnership, Massachusetts
business trust, or non-profit organization within the meaning of Section 501(c)(3) of the Internal Revenue Code, in each case
not formed for the specific purpose of acquiring the Securities and with total assets in excess of $5,000,000. |
| Category G | The undersigned is a trust with total assets in excess
of $5,000,000, not formed for the specific purpose of acquiring the Securities, where the purchase is directed by a “sophisticated
investor“ as defined in Regulation 506(b)(2)(ii) under the Act. |
| Category H | The undersigned is an entity (other than a trust) in which
all of the equity owners are “accredited investors” within one or more of the above categories. If relying upon this
Category alone, each equity owner must complete a separate copy of this Agreement. |
DISCLOSURE SCHEDULES
TO
SHARE EXCHANGE AND CONVERSION AGREEMENT
(TABACALERA YSIDRON, INC.)
(Note: Capitalized terms used herein and
not defined shall have the same meanings as set forth in the Share Exchange Agreement attached hereto.)
Disclosure Schedules –
Share Exchange Agreement
SCHEDULE 2.1
(Organizational Documents and Jurisdiction of
Priveco)
A list of Priveco’s Organizational Documents
is set forth below:
(1) Certificate
of Incorporation filed with the Delaware Department of Corporations
(2) Certificate
of Qualification filed with the California Secretary of State
Jurisdictions in which Priveco presently conducts
its business, owns, holds and operates its properties and assets: Delaware and California
Disclosure Schedules –
Share Exchange Agreement
SCHEDULE 2.2
(Capitalization of Priveco)
| (1) | Priveco has two convertible promissory notes in the aggregate
principal amount of $1,000,000, which amount automatically converts into common stock of Pubco at $0.50 per share at the Closing. |
| (2) | There are warrants to purchase up to 450,000 shares of
Priveco’s common stock outstanding. |
Disclosure Schedules –
Share Exchange Agreement
SCHEDULE 5.5
(Issuance of the Exchange Shares and Conversion
Shares; Exemptions from Registration)
Section 4(a)(2) of the Securities Act of 1933,
as amended, and Regulation D promulgated thereunder.
Disclosure Schedules –
Share Exchange Agreement
SCHEDULE 5.6
(Capitalization of Pubco)
See attached.
Disclosure Schedules –
Share Exchange Agreement
SCHEDULE 5.25
(Accountants of Pubco)
Xxxxxxx, Xxxx & Xxxx P.A.
0000 Xxxxxxx Xxxxxxxxx, Xxxxx 000
Xxxxxxx Xxxxx, Xxxxxxx 00000
Tel: (000) 000-0000
Disclosure Schedules –
Share Exchange Agreement