AGREEMENT AND PLAN OF MERGER

Agreement and Plan of Merger

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Pixx Acquisition Corp | Pixxures, Inc | Surviving Corporation | Xedar Corporation

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Title: AGREEMENT AND PLAN OF MERGER
Governing Law: Colorado Date: 10/2/2007
Law Firm: Cooley Godward

Exhibit 10.1

AGREEMENT AND PLAN OF MERGER

by and among

Xedar Corporation, a Colorado corporation

and

Pixx Acquisition Corp., a Delaware corporation

and

Pixxures, Inc., a Delaware corporation

September 26, 2007

Table of Contents

			Page
1.	THE MERGER		1
	1.1	Merger	1
	1.2	Effective Time	1
	1.3	Certificate of Incorporation, Bylaws, Directors and Officers	2
	1.4	Assets and Liabilities	2
	1.5	Manner and Basis of Converting Shares	2
	1.6	Options; Warrants; Other Rights	4
	1.7	Parent Common Stock	4
	1.8	Additional Shares	4
2.	REPRESENTATIONS AND WARRANTIES OF THE COMPANY		5
	2.1	Organization, Standing, Subsidiaries, Etc	5
	2.2	Qualification	5
	2.3	Capitalization of the Company	5
	2.4	Company Stockholders	6
	2.5	Corporate Acts and Proceedings	6
	2.6	Compliance with Laws and Instruments	6
	2.7	Binding Obligations	6
	2.8	Broker’s and Finder’s Fees	7
	2.9	Financial Statements	7
	2.10	Absence of Undisclosed Liabilities	7
	2.11	Changes	7
	2.12	Title to Property and Encumbrances	8
	2.13	Litigation	8
	2.14	Patents, Trademarks, Etc	9
	2.15	Governmental Consents	9
	2.16	Tax Returns and Audits	9
	2.17	Employee Benefit Plans; ERISA	9

Table of Contents

Continued

			Page
	2.18	Questionable Payments	10
	2.19	Interested Party Transactions	10
	2.20	Assets and Contracts	10
	2.21	Disclosure	11
3.	REPRESENTATIONS AND WARRANTIES OF PARENT AND ACQUISITION CORP		12
	3.1	Organization and Standing	12
	3.2	Corporate Authority	12
	3.3	Broker’s and Finder’s Fees	12
	3.4	Capitalization of Parent	12
	3.5	Acquisition Corp	13
	3.6	Validity of Shares	13
	3.7	SEC Reporting and Compliance	13
	3.8	Financial Statements	14
	3.9	Governmental Consents	14
	3.10	Compliance with Laws and Instruments	15
	3.11	No General Solicitation	15
	3.12	Binding Obligations	15
	3.13	Absence of Undisclosed Liabilities	15
	3.14	Changes	15
	3.15	Tax Returns and Audits	16
	3.16	Employee Benefit Plans; ERISA	16
	3.17	Litigation	17
	3.18	Interested Party Transactions	17
	3.19	Questionable Payments	18
	3.20	Assets and Contracts	18
	3.21	Disclosure	18
4.	LETTER OF TRANSMITTAL		18

Table of Contents

Continued

			Page
5.	CONDUCT OF BUSINESSES PENDING THE MERGER		19
	5.1	Conduct of Business by the Company Pending the Merger	19
	5.2	Conduct of Business by Parent and Acquisition Corp	20
6.	ADDITIONAL AGREEMENTS		20
	6.1	Additional Agreements	20
	6.2	Publicity	20
	6.3	Registration Rights Agreement	21
7.	CONDITIONS OF PARTIES’ OBLIGATIONS		21
	7.1	Parent and Acquisition Corp. Obligations	21
	7.2	Company Obligations	23
8.	SURVIVAL OF REPRESENTATIONS AND WARRANTIES		25
9.	AMENDMENT OF AGREEMENT		25
10.	DEFINITIONS		26
11.	CLOSING		30
12.	TERMINATION PRIOR TO CLOSING		30
	12.1	Termination of Agreement	30
	12.2	Termination of Obligations	31
13.	MISCELLANEOUS		31
	13.1	Notices	31
	13.2	Entire Agreement	32
	13.3	Expenses	32
	13.4	Time	32
	13.5	Severability	32
	13.6	Successors and Assigns	32
	13.7	No Third Parties Benefited	32
	13.8	Counterparts	32
	13.9	Governing Law	32

iii

LIST OF EXHIBITS AND SCHEDULES

Exhibits

Exhibit A - Certificate of Merger

Exhibit B - Certificate of Incorporation of Pixxures, Inc.

Exhibit C - Bylaws of Pixxures, Inc.

Exhibit D - Directors and Officers of Pixxures, Inc.

Exhibit E - Letter of Transmittal

Exhibit F - Registration Rights Agreement

Schedules

Company Disclosure Schedule

AGREEMENT AND PLAN OF MERGER

This Agreement and Plan of Merger is made and entered into effective as of September 26, 2007, by and among Xedar Corporation, a Colorado corporation (“ Parent ”), Pixx Acquisition Corp., a Delaware corporation (“ Acquisition Corp. ”), which is a wholly-owned subsidiary of Parent, and Pixxures, Inc., a Delaware corporation (the “ Company ”). Unless otherwise specified, capitalized terms shall have the meanings set forth in Section 10 hereof.

RECITALS

Whereas , the Board of Directors of each of Acquisition Corp., Parent and the Company have each determined that it is fair to and in the best interests of the shareholders of their respective corporations for Acquisition Corp. to be merged with and into the Company (the “ Merger ”), with the Company being the Surviving Corporation (as defined below in Section 1.1), upon the terms and subject to the conditions set forth herein; and

Whereas , the Board of Directors of Acquisition Corp. and the Board of Directors of the Company have approved the Merger in accordance with the General Corporation Law of the State of Delaware (the “ DGCL ”) and upon the terms and subject to the conditions set forth herein, in the Certificate of Merger (the “ Certificate of Merger ”), attached as Exhibit A hereto, and the Board of Directors of Parent has also approved the Merger, this Agreement and the Certificate of Merger.

Now, Therefore , in consideration of the mutual agreements and covenants hereinafter set forth, the parties hereto agree as follows:

1.	The Merger .

1.1 Merger . Subject to the terms and conditions of this Agreement and the Certificate of Merger, Acquisition Corp. shall be merged with and into the Company in accordance with Section 251 of the DGCL. At the Effective Time (as hereinafter defined), the separate legal existence of Acquisition Corp. shall cease, and the Company shall be the surviving corporation in the Merger (sometimes hereinafter referred to as the “ Surviving Corporation ”) and shall continue its corporate existence under the laws of the State of Delaware under the name Pixxures, Inc.

1.2 Effective Time . The Merger shall become effective upon the filing of the Certificate of Merger with the Secretary of State of the State of Delaware, in accordance with Section 251 of the DGCL. The time at which the Merger shall become effective as aforesaid is referred to hereinafter as the “ Effective Time. ”

1.3 Certificate of Incorporation, Bylaws, Directors and Officers .

(a) The Certificate of Incorporation of the Acquisition Corp., as in effect immediately prior to the Effective Time, attached as Exhibit B hereto, shall be the Certificate of

Incorporation of the Surviving Corporation from and after the Effective Time until further amended in accordance with applicable law.

(b) The Bylaws of the Acquisition Corp., as in effect immediately prior to the Effective Time, attached as Exhibit C hereto, shall be the Bylaws of the Surviving Corporation from and after the Effective Time until amended in accordance with applicable law, the Certificate of Incorporation of the Surviving Corporation and such Bylaws.

(c) The directors and officers listed in Exhibit D hereto shall be the directors and officers of the Surviving Corporation, and each shall hold his respective office or offices from and after the Effective Time, until his successor shall have been elected and shall have qualified in accordance with applicable law, or as otherwise provided in the Certificate of Incorporation or Bylaws of the Surviving Corporation.

1.4 Assets and Liabilities . At the Effective Time, the Surviving Corporation shall possess all the rights, privileges, powers and franchises of a public as well as of a private nature, and be subject to all the restrictions, disabilities and duties of each of Acquisition Corp. and the Company (collectively, the “ Constituent Corporations ”); and all the rights, privileges, powers and franchises of each of the Constituent Corporations, and all property, real, personal and mixed, and all debts due to any of the constituent corporations on whatever account, as well for stock subscriptions as all other things in action or belonging to each of the Constituent Corporations, shall be vested in the Surviving Corporation; and all property, rights, privileges, powers and franchises, and all and every other interest shall be thereafter as effectively the property of the Surviving Corporation as they were of the several and respective Constituent Corporations, and the title to any real estate vested by deed or otherwise in either of the such Constituent Corporations shall not revert or be in any way impaired by the Merger; but all rights of creditors and all liens upon any property of any of the Constituent Corporations shall be preserved unimpaired, and all debts, liabilities and duties of the Constituent Corporations shall thenceforth attach to the Surviving Corporation, and may be enforced against it to the same extent as if said debts, liabilities and duties had been incurred or contracted by it.

1.5 Manner and Basis of Converting Shares .

(a) At the Effective Time:

(i) each share of common stock, no par value per share, of Acquisition Corp. that shall be outstanding immediately prior to the Effective Time shall, by virtue of the Merger and without any action on the part of the holder thereof, be converted into one (1) share of common stock, no par value per share, of the Surviving Corporation, so that at the Effective Time, Parent shall be the holder of all of the issued and outstanding shares of the Surviving Corporation;

(ii) the shares of common stock, $.001 par value per share, of the Company (the “ Company Common Stock ”) beneficially owned by the Stockholders listed in Section 2.4 of the Company Disclosure Schedule, which shares at the Closing will constitute all of the issued and outstanding shares of common stock of the Company, shall, by virtue of the Merger and without any action on the part of the holders thereof, be cancelled and extinguished;

(iii) the shares of preferred stock, designated Series A-1, $.001 par value per share, of the Company (the “ Series A-1 Preferred Stock ”) beneficially owned by the Stockholders listed in Section 2.4 of the Company Disclosure Schedule, which shares at the Closing will constitute all of the issued and outstanding shares of Series A-1 Preferred Stock of the Company, shall, by virtue of the Merger and without any action on the part of the holders thereof, be cancelled and extinguished;

(iv) the shares of the Company’s Series B-1 Preferred Stock, $.001 par value per share, (the “ Series B-1 Preferred Stock ”) beneficially owned by the Stockholders listed in Section 2.4 of the Company Disclosure Schedule, which shares at the Closing will constitute all of the issued and outstanding shares of Series B-1 Preferred Stock of the Company, shall, by virtue of the Merger and without any action on the part of the holders thereof, each be converted into the number of shares of Parent Common Stock equal to the Series B-1 Conversion Ratio;

(v) the shares of the Company’s Series C Preferred Stock, $.001 par value per share (the “ Series C Preferred Stock ” and, together with the Series B-1 Preferred Stock and Series C Preferred Stock, the “ Company Preferred Stock ”) beneficially owned by the Stockholders listed in Section 2.4 of the Company Disclosure Schedule, which shares of Series C Preferred Stock taken together with the Series B-1 Preferred Stock at the Closing will constitute all of the issued and outstanding shares of preferred stock of the Company, shall, by virtue of the Merger and without any action on the part of the holders thereof, each be converted into the number of shares of Parent Common Stock equal to the Series C Conversion Ratio;

(vi) each share of Company Common Stock held in the treasury of the Company immediately prior to the Effective Time shall be cancelled in the Merger and cease to exist and each share of Company Preferred Stock held in the treasury of the Company immediately prior to the Effective Time shall be cancelled in the Merger and cease to exist;

(b) After the Effective Time, there shall be no further registration of transfers on the stock transfer books of the Surviving Corporation of the shares of Company Common Stock or Company Preferred Stock (referred to collectively herein as “ Company Stock ”) that were outstanding immediately prior to the Effective Time

(c) Promptly after the Effective Time and upon (i) surrender of a certificate or certificates representing shares of Company Stock that were outstanding immediately prior to the Effective Time or an affidavit and indemnification in form reasonably acceptable to counsel for the Parent stating that such Stockholder has lost its certificate or certificates or that such have been destroyed and (ii) delivery of a Letter of Transmittal (as described in Section 4 hereof), Parent shall issue to each record holder of the Company Stock surrendering such certificate or certificates and Letter of Transmittal, a certificate or certificates registered in the name of such Stockholder representing the number of shares of Parent Common Stock that such Stockholder shall be entitled to receive as set forth in Sections 1.5(a)(iv) and 1.5(a)(v) hereof. Until the certificate, certificates or affidavit is or are surrendered together with the Letter of Transmittal as contemplated by this Section 1.5(c) and Section 4 hereof, each certificate or affidavit that immediately prior to the Effective Time represented any outstanding shares of Company Stock shall be deemed at and after the Effective Time to represent only the right for the holder thereof.

to receive upon surrender as aforesaid the Parent Common Stock into which such Company Stock is converted under Sections 1.5(a)(iv) and 1.5(a)(v) hereof or to perfect any rights of appraisal which such holder may have pursuant to the applicable provisions of the DGCL.

1.6 Options; Warrants; Other Rights . Except as set forth in Section 1.6 of the Company Disclosure Schedule, all options, warrants, and other rights of any kind to purchase Company Stock outstanding as of the Effective Date will be exercised or terminated prior to or effective upon the Effective Time, and neither Parent nor Acquisition Corp., except as set forth in Section 1.6 of the Company Disclosure Schedule, shall assume or have any obligation with respect to such options or rights.

1.7 Parent Common Stock . Parent agrees that it will cause the Parent Common Stock into which the Company Stock is converted at the Effective Time pursuant to Section 1.5(a)(iv) and 1.5(a)(v) to be available for such purpose.

1.8 Additional Shares .

(a) Parent intends to file, or has filed a registration statement with the Commission pertaining to certain shares of Parent Common Stock other than the shares of Parent Common Stock to be issued in connection with or as a result of the Merger (the “ Initial Registration Statement ”) and will use best efforts to cause the Commission to declare the Initial Registration Statement effective as soon as practicable. For the purposes of this Agreement, “ Trigger Date ” shall be the first date upon which (i) the Initial Registration statement is declared effective by the Commission and no stop order or other restriction on trading the shares has been imposed by the Commission; (ii) sufficient contractual lockup agreements of the officers, directors and any significant stockholders (including those associated with the Initial Registration Statement) have expired such that 50% of the Parent’s outstanding capital stock is freely tradable and not subject to restrictions on resale (calculated on a fully diluted basis, including all options, warrants, and other rights to acquire capital stock of the Parent outstanding at such time); (iii) Parent has completed a bona fide arm’s length equity financing in one or a series of related transactions of at least $10.0 million; and (iv) at least 50% of the Parent Common Stock issued in connection with the Merger has been registered with the Commission for resale and such shares are not subject to any restrictions on resale; provided that, not withstanding the foregoing, if the Trigger Date has not occurred prior to March 23, 2008, at any time following the such date a majority in interest of the Stockholders may establish a Trigger Date by notice to Parent. In the event that no Trigger Date has occurred as of March 23, 2009, subject to the remainder of this sentence, the Trigger Date shall be March 23, 2009 (the “ Trigger Date Limit ”); provided, however , that such Trigger Date Limit shall be extended by the sum of (x) the number of days beyond January 15, 2008 the Initial Registration Statement is declared effective by the Commission, plus (y) the number of days following effectiveness and prior to the date of calculation of the Trigger Date Limit during which the use of the Initial Registration Statement is either suspended by the Commission or is unavailable because the Initial Registration Statement contains a an untrue statement of fact or omits to state a fact required to be stated therein or necessary to make the statements therein not misleading (such number of days referred to as the “ Delay Period ”).

(b) Beginning on the Trigger Date, Parent will compute the average daily closing price for the Parent Common Stock for the 60 trading days following the Trigger Date during which there is no stop order or similar prohibition on trading in Parent Common Stock on the applicable exchange or OTC bulletin board (the “ Subsequent Market Price ”), and compare that to the Average Closing Price. If the Subsequent Market Price is less than the Average Closing Price, then Parent will promptly issue additional shares (the “ Additional Shares ”) to the Stockholders, pro-rata, such that the total dollar value of the Parent Common Stock issued pursuant to Sections 1.5(a)(iv) and 1.5(a)(v) hereof, plus the Additional Shares to be issued pursuant to this Section 1.8(b), equals $5,115,000, calculated based on the Subsequent Market Price. In the event that the parties disagree as to the calculation of the Subsequent Market Price, an independent national accounting firm shall be engaged, and the determination by such accounting firm shall be binding on all parties absent fraud or manifest error.

2.	Representations and Warranties of the Company .

The Company hereby represents and warrants to Parent and Acquisition Corp., except as set forth in the “ Company Disclosure Schedule ” delivered herewith, as follows:

2.1 Organization, Standing, Subsidiaries, Etc .

(a) The Company is a corporation duly organized and existing in good standing under the laws of the State of Delaware, and has all requisite power and authority (corporate and other) to carry on its business, to own or lease its properties and assets, to enter into this Agreement and the Certificate of Merger and to carry out the terms hereof and thereof. Copies of the Certificate of Incorporation and Bylaws of the Company that have been delivered to Parent and Acquisition Corp. prior to the execution of this Agreement are true and complete and have not since been amended or repealed.

(b) The Company has no subsidiaries or direct or indirect interest (by way of stock ownership or otherwise) in any firm, corporation, limited liability company, partnership, association or business.

2.2 Qualification . The Company is duly qualified to conduct business as a foreign corporation and is in good standing in each jurisdiction wherein the nature of its activities or its properties owned or leased makes such qualification necessary, except where the failure to be so qualified would not have a material adverse effect on the condition (financial or otherwise), properties, assets, liabilities, business operations and results of operations of the Company taken as a whole (the “ Condition of the Company ”).

2.3 Capitalization of the Company . The authorized capital stock of the Company consists of 74,450,000 shares of Company Common Stock, and 64,450,000 shares of preferred stock, 450,000 shares of which have been designated Series A-1 Preferred Stock, 37,000,000 shares of which have been designated Series B-1 Preferred Stock, and 27,000,000 shares of which have been designated Series C Preferred Stock. The Company has no authority to issue any other capital stock. There are 791,923 shares of Company Common Stock issued and outstanding, and such shares are duly authorized, validly issued, fully paid and nonassessable. There are 368,992 shares of Series A-1 Preferred Stock issued and outstanding, and such shares

are duly authorized, validly issued, fully paid and nonassessable. There are 28,467,138 shares of Series B-1 Preferred Stock issued and outstanding, and such shares are duly authorized, validly issued, fully paid and nonassessable. There are 18,849,959 shares of Series C Preferred Stock issued and outstanding, and such shares are duly authorized, validly issued, fully paid and nonassessable. Except as disclosed in Section 1.6 of the Company Disclosure Schedule, the Company has no outstanding warrants, stock options, rights or commitments to issue Company Common Stock, Company Preferred Stock or other Equity Securities of the Company, and there are no outstanding securities convertible or exercisable into or exchangeable for Company Common Stock, Company Preferred Stock or other Equity Securities of the Company.

2.4 Company Stockholders . Section 2.4 of the Company Disclosure Schedule contains a true and complete list of the names of the record owners of all of the outstanding shares of Company Stock and other Equity Securities of the Company, together with the number of securities held. To the knowledge of the Company, except as described in Section 2.4 of the Company Disclosure Schedule, there is no voting trust, agreement or arrangement among any of the beneficial holders of Company Common Stock affecting the exercise of the voting rights of Company Stock.

2.5 Corporate Acts and Proceedings . The execution, delivery and performance of this Agreement and the Certificate of Merger (together, the “ Merger Documents ”) have been duly authorized by the Board of Directors of the Company.

2.6 Compliance with Laws and Instruments . To the knowledge of the Company, the business, products and operations of the Company have been and are being conducted in compliance in all material respects with all applicable laws, rules and regulations, except for such violations thereof for which the penalties, in the aggregate, would not have a material adverse effect on the Condition of the Company. The execution, delivery and performance by the Company of the Merger Documents and the consummation by the Company of the transactions contemplated by this Agreement: (a) will not require any authorization, consent or approval of, or filing or registration with, any court or governmental agency or instrumentality, except such as shall have been obtained prior to the Closing, (b) will not cause the Company to violate or contravene in any material respect (i) any provision of law, (ii) any rule or regulation of any agency or government, (iii) any order, judgment or decree of any court, or (iv) any provision of the Certificate of Incorporation or Bylaws of the Company, (c) will not violate or be in conflict with, result in a breach of or constitute (with or without notice or lapse of time, or both) a default under, any indenture, loan or credit agreement, deed of trust, mortgage, security agreement or other contract, agreement or instrument to which the Company is a party or by which the Company or any of its properties is bound or affected, except as would not have a material adverse effect on the Condition of the Company, and (d) will not result in the creation or imposition of any material Lien upon any property or asset of the Company.

2.7 Binding Obligations . This Agreement constitutes the legal, valid and binding obligations of the Company and are enforceable against the Company in accordance with its terms, except as such enforcement is limited by bankruptcy, insolvency and other similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity. The Certificate of Merger, when executed by the Company, will constitute the legal, valid and binding obligations of the Company and are enforceable against the Company in accordance

with its terms, except as such enforcement is limited by bankruptcy, insolvency and other similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity.

2.8 Broker’s and Finder’s Fees . No Person has, or as a result of the transactions contemplated herein will have, any right or valid claim against the Company, Parent, Acquisition Corp. or any Stockholder for any commission, fee or other compensation as a finder or broker, or in any similar capacity, except as set forth in Section 2.8 of the Company Disclosure Schedule.

2.9 Financial Statements . The Company has previously delivered to the Parent the Company’s audited Consolidated Balance Sheet, Consolidated Statement of operations, Consolidated Statement of Changes in Shareholders’ Equity and Consolidated Statement of Cash Flows as of and for the years ended December 31, 2006, December, 31, 2005, and December 31, 2004, and the Company’s unaudited Consolidated Balance Sheet (the “ Balance Sheet ”) as of July 31, 2007 (the “ Balance Sheet Date ”) and related Statement of Operations, Consolidated Statement of Changes in Shareholders’ Equity and Consolidated Statement of Cash Flows as of and for the six months ended June 30, 2007. Such financial statements (i) are in accordance with the books and records of the Company, (ii) present fairly in all material respects the financial condition of the Company at the dates therein specified and the results of its operations and changes in financial position for the periods therein specified and (iii) have been prepared in accordance with generally accepted accounting principles (“ GAAP ”) applied on a basis consistent with prior accounting periods.

2.10 Absence of Undisclosed Liabilities . As of the date hereof, the Company has no material obligation or liability (whether accrued, absolute, contingent, liquidated or otherwise, whether due or to become due), arising out of any transaction entered into at or prior to the Closing, except (a) as disclosed in Section 2.10 or 2.11 of the Company Disclosure Schedule, (b) to the extent set forth on or reserved against in the Balance Sheet, (c) current liabilities incurred and obligations under agreements entered into in the ordinary course of business since the Balance Sheet Date, none of which (individually or in the aggregate) has had or could reasonably be expected to have a material adverse effect on the Condition of the Company and (d) by the specific terms of any written agreement, document or arrangement identified in the Company Disclosure Schedule.

2.11 Changes . Since the Balance Sheet Date, as of the date hereof and except as disclosed in Section 2.11 of the Company Disclosure Schedule, the Company has not (a) incurred any debts, obligations or liabilities, absolute, accrued or, to the Company’s knowledge, contingent, whether due or to become due, except for current liabilities incurred in the usual and ordinary course of business, (b) discharged or satisfied any Liens other than those securing, or paid any obligation or liability other than, current liabilities shown on the Balance Sheet and current liabilities incurred since the Balance Sheet Date, in each case in the ordinary course of business, (c) mortgaged, pledged or subjected to Lien any of its assets, tangible or intangible, other than in the ordinary course of business, (d) sold, transferred or leased any of its assets, except in the ordinary course of business, (e) cancelled or compromised any debt or claim, or waived or released any right of material value, (f) suffered any physical damage, destruction or loss (whether or not covered by insurance) which could reasonably be expected to have a material adverse effect on the Condition of the Company, (g) entered into any transaction other

than in the ordinary course of business, (h) encountered any labor union difficulties, (i) made or granted any wage or salary increase or made any increase in the amounts payable under any profit sharing, bonus, deferred compensation, severance pay, insurance, pension, retirement or other employee benefit plan, agreement or arrangement, other than in the ordinary course of business consistent with past practice, or entered into any employment agreement, (j) issued or sold any shares of capital stock, bonds, notes, debentures or other securities or granted any options (including employee stock options), warrants or other rights with respect thereto, (k) declared or paid any dividends on or made any other distributions with respect to, or purchased or redeemed, any of its outstanding capital stock, (l) suffered or experienced any change in, or condition affecting, the financial condition of the Company other than changes, events or conditions in the usual and ordinary course of its business, none of which (either by itself or in conjunction with all such other changes, events and conditions) could reasonably be expected to have a material adverse effect on the Condition of the Company, (m) made any change in the accounting principles, methods or practices followed by it or depreciation or amortization policies or rates theretofore adopted, (n) made or permitted any amendment or termination of any material contract, agreement or license to which it is a party, (o) suffered any material loss not reflected in the Balance Sheet or its statement of income for the period ended on the Balance Sheet Date, (p) paid, or made any accrual or arrangement for payment of, bonuses or special compensation of any kind or any severance or termination pay to any present or former officer, director, employee, stockholder or consultant, or (q) entered into any agreement, or otherwise obligated itself, to do any of the foregoing other than in the ordinary course of its business, none of which (either by itself or in conjunction with all such other changes, events and conditions) could reasonably be expected to have a material adverse effect on the Condition of the Company.

2.12 Title to Property and Encumbrances . Except as disclosed in Section 2.12 of the Company Disclosure Schedule, the Company has good, valid and marketable title to all properties and assets used in the conduct of its business (except for property held under valid and subsisting leases which are in full force and effect and which are not in default) free of all Liens and other encumbrances, except Permitted Liens and such ordinary and customary imperfections of title, restrictions and encumbrances as do not, individually or in the aggregate, materially detract from the value of the property or assets or materially impair the use made thereof by the Company in its business. Without limiting the generality of the foregoing, the Company has good and marketable title to all of its properties and assets reflected in the Balance Sheet, except for property disposed of in the ordinary course of business since the Balance Sheet Date and for property held under valid and subsisting leases which are in full force and effect and which are not in default.

2.13 Litigation . Except as set forth on Section 2.13 of the Company Disclosure Schedule, there is no legal action, suit, arbitration or other legal, administrative or other governmental proceeding pending or, to the best knowledge of the Company, threatened against or affecting the Company or its properties, assets or business, and after reasonable investigation, the Company is not aware of any incident, transaction, occurrence or circumstance that might reasonably be expected to result in or form the basis for any such action, suit, arbitration or other proceeding. The Company is not in default with respect to any order, writ, judgment, injunction, decree, determination or award of any court or any governmental agency or instrumentality or arbitration authority.

2.14 Patents, Trademarks, Etc . Section 2.14 of the Company Disclosure Schedule sets forth a list of all United States and foreign patents, trademarks, trade names, copyrights, and applications therefor used by the Company exclusively in and material to the conduct of its business (the “ Patent and Trademark Rights ”). Except as disclosed in Section 2.14 of the Company Disclosure Schedule, (a) the Company owns or possesses adequate licenses or other valid rights to use all Patent and Trademark Rights; and (b) to the Company’s knowledge, the conduct of its business as now being conducted does not conflict with any valid patents, trademarks, trade names or copyrights of others in any way which could reasonably be expected to have a material adverse effect on the business or financial condition of the Company or its business.

2.15 Governmental Consents . All consents, approvals, orders, or authorizations of, or registrations, qualifications, designations, declarations, or filings with any federal or state governmental authority on the part of the Company required in connection with the consummation of the Merger shall have been obtained prior to, and be effective as of, the Closing.

2.16 Tax Returns and Audits . All required federal, state and local Tax Returns of the Company have been accurately prepared in all material respects and duly and timely filed, and all federal, state and local Taxes required to be paid with respect to the periods covered by such returns have been paid to the extent that the same are material and have become due, except where the failure so to file or pay could not reasonably be expected to have a material adverse effect upon the Condition of the Company. The Company is not and has not been delinquent in the payment of any Tax. The Company has not had a Tax deficiency assessed against it. None of the Company’s federal income tax returns nor any state or local income or franchise tax returns has been audited by governmental authorities. The reserves for Taxes reflected on the Balance Sheet are sufficient for the payment of all unpaid Taxes payable by the Company with respect to the period ended on the Balance Sheet Date. There are no federal, state, local or foreign audits, actions, suits, proceedings, investigations, claims or administrative proceedings relating to Taxes or any Tax Returns of the Company now pending, and the Company has not received any notice of any proposed audits, investigations, claims or administrative proceedings relating to Taxes or any Tax Returns.

2.17 Employee Benefit Plans; ERISA .

(a) Except as disclosed in Section 2.17 of the Company Disclosure Schedule, there are no “employee benefit plans” (within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ ERISA ”) nor any other employee benefit or fringe benefit arrangements, practices, contracts, policies or programs other than programs merely involving the regular payment of wages, commissions, or bonuses established, maintained or contributed to by the Company. Any plans listed in Section 2.17 of the Company Disclosure Schedule are hereinafter referred to as the “ Company Employee Benefit Plans. ”

(b) Any current and prior material documents, including all amendments thereto, with respect to each Company Employee Benefit Plan have been provided to the Parent or its advisors.

(c) All Company Employee Benefit Plans are in material compliance with the applicable requirements of ERISA, the Code and any other applicable state, federal or foreign law.

(d) There are no pending, or to the knowledge of the Company, threatened, claims or lawsuits which have been asserted or instituted against any Company Employee Benefit Plan, the assets of any of the trusts or funds under the Company Employee Benefit Plans, the plan sponsor or the plan administrator of any of the Company Employee Benefit Plans or against any fiduciary of a Company Employee Benefit Plan with respect to the operation of such plan.

(e) There is no pending, or to the knowledge of the Company, threatened, investigation or pending or possible enforcement action by the Pension Benefit Guaranty Corporation, the Department of Labor, the Internal Revenue Service or any other government agency with respect to any Company Employee Benefit Plan.

(f) No actual or, to the knowledge of the Company, contingent liability exists with respect to the funding of any Company Employee Benefit Plan or for any other expense or obligation of any Company Employee Benefit Plan, except as disclosed on the financial statements of the Company or in Section 2.17 of the Company Disclosure Schedule, and to the knowledge of the Company, no contingent liability exists under ERISA with respect to any “multi-employer plan,” as defined in Section 3(37) or Section 4001(a)(3) of ERISA.

2.18 Questionable Payments . The Company has not, nor to the knowledge of the Company, has any director, officer, agent, employee or other Person associated with or acting on behalf of the Company, used any corporate funds for unlawful contributions, gifts, entertainment or other unlawful expenses relating to political activity; made any direct or indirect unlawful payments to government officials or employees from corporate funds; established or maintained any unlawful or unrecorded fund of corporate monies or other assets; made any false or fictitious entries on the books of record of any such corporations; or made any bribe, rebate, payoff, influence payment, kickback or other unlawful payment.

2.19 Interested Party Transactions . Except as disclosed in Section 2.19 of the Company Disclosure Schedule, as of the date hereof, no officer, director or stockholder of the Company or any Affiliate or “associate” (as such term is defined in Rule 405 under the Securities Act) of any such Person or the Company has or has had, either directly or indirectly, (a) an interest in any Person that (i) furnishes or sells services or products that are furnished or sold or are proposed to be furnished or sold by the Company or (ii) purchases from or sells or furnishes to the Company any goods or services, or (b) a beneficial interest in any contract or agreement to which the Company is a party or by which it may be bound or affected.

2.20 Assets and Contracts . Except as expressly set forth in Section 2.20 of the Company Disclosure Schedule, the financial statements referenced in Section 2.10 above or the notes thereto, as of the date hereof, the Company (a) is not a party to any written or oral agreement not made in the ordinary course of business that is material to the Company; (b) the Company does not own any real property; and (c) the Company is not a party to, or otherwise barred by, any written or oral (i) agreement with any labor union, (ii) agreement for the purchase

of fixed assets or for the purchase of materials, supplies or equipment in excess of normal operating requirements, (iii) agreement for the employment of any officer, individual employee or other Person on a full-time basis or any agreement with any Person for consulting services, (iv) bonus, pension, profit sharing, retirement, stock purchase, stock option, deferred compensation, medical, hospitalization or life insurance or similar plan, contract or understanding with respect to any or all of the employees of the Company or any other Person, (v) indenture, loan or credit agreement, note agreement, deed of trust, mortgage, security agreement, promissory note or other agreement or instrument relating to or evidencing Indebtedness for Borrowed Money or subjecting any asset or property of the Company to any Lien or evidencing any Indebtedness, (vi) guaranty of any Indebtedness, (vii) lease or agreement under which the Company is lessee of or holds or operates any property, real or personal, owned by any other Person, (viii) lease or agreement under which the Company is lessor or permits any Person to hold or operate any property, real or personal, owned or controlled by the Company, (ix) agreement granting any preemptive right, right of first refusal or similar right to any Person, (x) agreement or arrangement with any Affiliate or any “associate” (as such term is defined in Rule 405 under the Securities Act) of the Company or any present or former officer, director or stockholder of the Company, (xi) agreement obligating the Company to pay any royalty or similar charge for the use or exploitation of any tangible or intangible property, (xii) covenant not to compete or other restriction on its ability to conduct a business or engage in any other activity, (xiii) distributor, dealer, manufacturer’s representative, sales agency, franchise or advertising contract or commitment, (xiv) or agreement to register securities under the Securities Act, or (xv) collective bargaining agreement. Section 2.20 of the Company Disclosure Schedule sets forth and describes each insurance policy and coverage of any kind maintained with respect to the Company, its business, premises, properties, assets, employees and agents. Section 2.20 of the Company Disclosure Schedule contains a true and complete list and description of each bank account, savings account, other deposit relationship and safety deposit box of the Company, including the name of the bank or other depository, the account number and the names of the individuals having signature or other withdrawal authority with respect thereto. Except as disclosed on Section 2.20 of the Company Disclosure Schedule, no consent of any bank or other depository or Person is required to maintain any bank account, other deposit relationship or safety deposit box of the Company. The Company has furnished to Parent true and complete copies of all agreements and other documents disclosed or referred to in Section 2.20 of the Company Disclosure Schedule or in the financial statements or the notes thereto, as well as any additional agreements or documents, reasonably requested by Parent.

2.21 Disclosure . There is no fact relating to the Company that the Company has not disclosed to the Parent in writing that materially and adversely affects nor, insofar as the Company can now foresee, will materially and adversely affect, the condition (financial or otherwise), properties, assets, liabilities, business operations, results of operations or prospects of the Company. No representation or warranty by the Company herein and no information disclosed in the schedules or exhibits hereto by the Company contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements contained herein or therein not misleading.

3. Representations and Warranties of Parent and Acquisition Corp.

Parent and Acquisition Corp. jointly and severally represent and warrant to the Company as follows:

3.1 Organization and Standing .

(a) Parent is a corporation duly organized and existing in good standing under the laws of the State of Colorado. Acquisition Corp. is a corporation duly organized and existing in good standing under the laws of the State of Colorado. Parent and Acquisition Corp. have heretofore delivered to the Company complete and correct copies of their respective Articles of Incorporation and Bylaws as now in effect. Parent and Acquisition Corp. have full corporate power and authority to carry on their respective businesses as they are now being conducted and as now proposed to be conducted and to own or lease their respective properties and assets.

(b) Except for FuGEN, Inc., a Delaware corporation, Premiere Data Services, Inc., a Delaware corporation, PDS/GIS, Inc., a Delaware corporation, Land Links Company, LTD., a New Mexico limited liability company, Atlantic Systems Corporation, a Virginia corporation, Point One, L.L.C., a Virginia limited liability company, and Acquisition Corp. (collectively, the “ Subsidiaries ”), neither Parent nor Acquisition Corp. has any subsidiaries or direct or indirect interest (by way of stock ownership or otherwise) in any firm, corporation, limited liability company, partnership, association or business. Parent owns all of the issued and outstanding capital stock of the Subsidiaries free and clear of all Liens, and none of the Subsidiaries has any outstanding options, warrants or rights to purchase capital stock or other equity securities, other than the capital stock owned by Parent. Each of the Subsidiaries is duly incorporated, validly existing and in good standing in its respective state of organization. Unless the context otherwise requires, all references in this Section 3 to the “Parent” shall be treated as being a reference to the Parent and Acquisition Corp. taken together as one enterprise.

3.2 Corporate Authority . Each of Parent and/or Acquisition Corp. (as the case may be) has full corporate power and authority to enter into the Merger Documents and the other agreements to be made pursuant to the Merger Documents, and to carry out the transactions contemplated hereby and thereby. All corporate acts and proceedings required for the authorization, execution, delivery and performance of the Merger Documents and such other agreements and documents by Parent and/or Acquisition Corp. (as the case may be) have been duly and validly taken or will have been so taken prior to the Closing. Each of the Merger Documents constitutes a legal, valid and binding obligation of Parent and/or Acquisition Corp. (as the case may be), each enforceable against them in accordance with their respective terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization or other similar laws affecting creditors’ rights generally and by general principles of equity. @

3.3 Broker’s and Finder’s Fees . No person, firm, corporation or other entity is entitled by reason of any act or omission of Parent or Acquisition Corp. to any broker’s or finder’s fees, commission or other similar compensation with respect to the execution and delivery of this Agreement or the Certificate of Merger, or with respect to the consummation of the transactions contemplated hereby or thereby.

3.4 Capitalization of Parent . The authorized capital stock of Parent consists of (a) 50,000,000 shares of common stock, no par value per share (the “ Parent Common Stock ”), of which 22,650,518 shares were issued and outstanding as of August 15, 2005. There is no voting trust, agreement or arrangement among any of the beneficial holders of Parent Common Stock affecting the nomination or election of directors or the exercise of the voting rights of Parent Common Stock. All outstanding shares of the capital stock of Parent are validly issued and outstanding, fully paid and nonassessable, and none of such shares have been issued in violation of the preemptive rights of any person. Except as disclosed in the Parent SEC Documents (as defined in Section 3.7(b) below), the Company has no outstanding warrants, stock options, rights or commitments to issue common stock, preferred stock or other Equity Securities, and there are no outstanding securities convertible or exercisable into or exchangeable for common stock, preferred Stock or other Equity Securities of the Parent.

3.5 Acquisition Corp . Acquisition Corp. is a wholly-owned subsidiary of Parent that was formed specifically for the purpose of the Merger and that has not conducted any business or acquired any property, and will not conduct any business or acquire any property prior to the Closing Date, except in preparation for and otherwise in connection with the transactions contemplated by this Agreement, the Certificate of Merger and the other agreements to be made pursuant to or in connection with this Agreement and the Certificate of Merger.

3.6 Validity of Shares . The shares of Parent Common Stock to be issued pursuant to this Agreement, when issued and delivered in accordance with the terms hereof and the Certificate of Merger shall be duly authorized, validly issued, fully paid and nonassessable.

3.7 SEC Reporting and Compliance .

(a) Parent filed a registration statement on Form 10-SB under the Securities and Exchange Act of 1934, as amended (the “ Exchange Act ”), on April 17, 2006, which became effective sixty (60) days thereafter in accordance with Section 12(g) of the Exchange Act and the rule promulgated thereunder. Since that date, Parent has filed with the Commission all statements, reports and filings required to be filed by companies registered pursuant to Section 12(g) of the Exchange Act.

(b) Parent has provided to the Company true and complete copies of the registration statement on Form 10-SB referred to in section 3.7(a) above, and all annual reports on Form 10-KSB, quarterly reports on Form 10-QSB, current reports on Form 8-K, the Initial Registration Statement, and all amendments thereto, and other statements, reports and filings (collectively, the “ Parent SEC Documents ”) filed by the Parent with the Commission. As of their respective dates, the Parent SEC Documents (i) were prepared in accordance with the requirements of the Securities Act or the Exchange Act, as the case may be, and the rules and regulations of the Commission thereunder applicable to such Parent SEC Documents, and (ii) did not at the time they were filed (or if amended or superseded by a filing before the date of this Agreement, then on the date of such filing) contain any untrue statement of a material fact or omit 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. None of Parent’s subsidiaries is required to file any forms, reports or other documents with the SEC.

(c) As of the date hereof, Parent has not filed, and nothing has occurred with respect to which Parent would be required to file, any report on Form 8-K since August 13, 2007. Prior to and until the Closing, Parent will provide to the Company copies of any and all amendments or supplements to the Parent SEC Documents filed with the Commission since August 13, 2007, and any and all subsequent statements, reports and filings filed by the Parent with the Commission or delivered to the stockholders of Parent.

(d) Parent is not an investment company within the meaning of Section 3 of the Investment Company Act.

(e) The shares of Parent Common Stock are quoted on the Over-the-Counter (OTC) Bulletin Board under the symbol “ XDRC.OB ” and Parent is in compliance in all material respects with all rules and regulations of the OTC Bulletin Board applicable to it and the Parent Stock. The OTC Bulletin Board has cleared the Form 211 filed by Parent pursuant to Rule 15c2-11(a)(5) of the Exchange Act.

(f) Between the date hereof and the Closing Date, Parent shall continue to satisfy the filing requirements of the Exchange Act and all other requirements of applicable securities laws and the OTC Bulletin Board.

(g) Parent has otherwise complied with the Securities Act of 1933, as amended (the “ Securities Act ”), Exchange Act and all other applicable federal and state securities laws.

3.8 Financial Statements . The consolidated balance sheets, statements of operations, statements of changes in shareholders’ equity and statements of cash flows contained in the Parent SEC Documents (the “ Parent Financial Statements ”) (i) have been prepared in accordance with GAAP applied on a basis consistent with prior periods (and, in the case of unaudited financial information, on a basis consistent with year-end audits), (ii) are in accordance with the books and records of the Parent, and (iii) present fairly in all material respects the financial condition of the Parent at the dates therein specified and the results of its operations and changes in financial position for the periods therein specified. The financial statements included in the Annual Report on Form 10-KSB for the fiscal years ended December 31, 2005 and December 31, 2006, are audited by, and include the related report of Ehrhardt Keefe Steiner & Hottman PC, Parent’s independent certified public accountants. The financial information included in the Quarterly Report on Form 10-QSB for the quarter ended June, 30, 2007, is unaudited, but reflects all adjustments (including normally recurring accounts) that Parent considers necessary for a fair presentation of such information and have been prepared in accordance with generally accepted accounting principles, consistently applied.

3.9 Governmental Consents . All consents, approvals, orders, or authorizations of, or registrations, qualifications, designations, declarations, or filings with any federal or state governmental authority on the part of Parent or Acquisition Corp. required in connection with the consummation of the Merger shall have been obtained prior to, or be effective as of, the Closing.

3.10 Compliance with Laws and Instruments . The execution, delivery and performance by Parent and/or Acquisition Corp. of this Agreement, the Certificate of Merger and the other agreements to be made by Parent or Acquisition Corp. pursuant to or in connection with this Agreement or the Certificate of Merger and the consummation by Parent and/or Acquisition Corp. of the transactions contemplated by the Merger Documents will not cause Parent and/or Acquisition Corp. to violate or contravene (i) any provision of law, (ii) any rule or regulation of any agency or government, (iii) any order, judgment or decree of any court, or (v) any provision of their respective articles or certificate of incorporation or Bylaws as amended and in effect on and as of the Closing Date and will not violate or be in conflict with, result in a breach of or constitute (with or without notice or lapse of time, or both) a default under any indenture, loan or credit agreement, deed of trust, mortgage, security agreement or other agreement or contract to which Parent or Acquisition Corp. is a party or by which Parent and/or Acquisition Corp. or any of their respective properties is bound.

3.11 No General Solicitation . In issuing Parent Common Stock in the Merger hereunder, neither Parent nor anyone acting on its behalf has offered to sell the Parent Common Stock by any form of general solicitation or advertising.

3.12 Binding Obligations . The Merger Documents constitute the legal, valid and binding obligations of the Parent and Acquisition Corp., and are enforceable against the Parent and Acquisition Corp., in accordance with their respective terms, except as such enforcement is limited by bankruptcy, insolvency and other similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity.

3.13 Absence of Undisclosed Liabilities . Neither Parent nor Acquisition Corp. has any obligation or liability (whether accrued, absolute, contingent, liquidated or otherwise, whether due or to become due), arising out of any transaction entered into at or prior to the Closing, except (a) as disclosed in the Parent SEC Documents, (b) to the extent set forth on or reserved against in the audited balance sheet of Parent as of June 30, 2007 (the “ Parent Balance Sheet ”) or the Notes to the Parent Financial Statements, (c) current liabilities incurred and obligations under agreements entered into in the usual and ordinary course of business since June 30, 2007 (the “ Parent Balance Sheet Date ”), none of which (individually or in the aggregate) materially and adversely affects the condition (financial or otherwise), properties, assets, liabilities, business operations, results of operations or prospects of the Parent or Acquisition Corp., taken as a whole (the “ Condition of the Parent ”), and (d) by the specific terms of any written agreement, document or arrangement attached as an exhibit to the Parent SEC Documents.

3.14 Changes . Since the Parent Balance Sheet Date, except as disclosed in the Parent SEC Documents, or in accordance with the terms of this Agreement, Parent has not (a) incurred any debts, obligations or liabilities, absolute, accrued or, to the Parent’s knowledge, contingent, whether due or to become due, except for current liabilities incurred in the usual and ordinary course of business, (b) discharged or satisfied any Liens other than those securing, or paid any obligation or liability other than, current liabilities shown on the Parent Balance Sheet and current liabilities incurred since the Parent Balance Sheet Date, in each case in the usual and ordinary course of business, (c) mortgaged, pledged or subjected to Lien any of its assets, tangible or intangible, other than in the usual and ordinary course of business, (d) sold,

transferred or leased any of its assets, except in the usual and ordinary course of business, (e) cancelled or compromised any debt or claim, or waived or released any right of material value, (f) suffered any physical damage, destruction or loss (whether or not covered by insurance) which could reasonably be expected to have a material adverse effect on the Condition of the Parent, (g) entered into any transaction other than in the usual and ordinary course of business, (h) encountered any labor union difficulties, (i) made or granted any wage or salary increase or made any increase in the amounts payable under any profit sharing, bonus, deferred compensation, severance pay, insurance, pension, retirement or other employee benefit plan, agreement or arrangement, other than in the ordinary course of business consistent with past practice, or entered into any employment agreement, (j) issued or sold any shares of capital stock, bonds, notes, debentures or other securities or granted any options (including employee stock options), warrants or other rights with respect thereto, (k) declared or paid any dividends on or made any other distributions with respect to, or purchased or redeemed, any of its outstanding capital stock, (l) suffered or experienced any change in, or condition affecting, the financial condition of the Parent other than changes, events or conditions in the usual and ordinary course of its business, none of which (either by itself or in conjunction with all such other changes, events and conditions) could reasonably be expected to have a material adverse effect on the Condition of the Parent, (m) made any change in the accounting principles, methods or practices followed by it or depreciation or amortization policies or rates theretofore adopted, (n) made or permitted any amendment or termination of any material contract, agreement or license to which it is a party, (o) suffered any material loss not reflected in the Parent Balance Sheet or its statement of income for the period ended on the Parent Balance Sheet Date, (p) paid, or made any accrual or arrangement for payment of, bonuses or special compensation of any kind or any severance or termination pay to any present or former officer, director, employee, stockholder or consultant, or (q) entered into any agreement, or otherwise obligated itself, to do any of the foregoing.

3.15 Tax Returns and Audits . All required federal, state and local Tax Returns of the Parent have been accurately prepared in all material respects and duly and timely filed, and all federal, state and local Taxes required to be paid with respect to the periods covered by such returns have been paid to the extent that the same are material and have become due, except where the failure so to file or pay could not reasonably be expected to have a material adverse effect upon the Condition of the Parent. The Parent is not and has not been delinquent in the payment of any Tax. The Parent has not had a Tax deficiency assessed against it. None of the Parent’s federal income tax returns nor any state or local income or franchise tax returns has been audited by governmental authorities. The reserves for Taxes reflected on the Parent Balance Sheet are sufficient for the payment of all unpaid Taxes payable by the Parent with respect to the period ended on the Parent Balance Sheet Date. There are no federal, state, local or foreign audits, actions, suits, proceedings, investigations, claims or administrative proceedings relating to Taxes or any Tax Returns of the Parent now pending, and the Parent has not received any notice of any proposed audits, investigations, claims or administrative proceedings relating to Taxes or any Tax Returns.

3.16 Employee Benefit Plans; ERISA .

(a) Except as disclosed in the Parent SEC Documents, there are no “employee benefit plans” (within the meaning of Section 3(3) of the Employee Retirement Income Security

Act of 1974, as amended (“ ERISA ”) nor any other employee benefit or fringe benefit arrangements, practices, contracts, policies or programs other than programs merely involving the regular payment of wages, commissions, or bonuses established, maintained or contributed to by the Parent. Any plans listed in the Parent SEC Documents are hereinafter referred to as the “Parent Employee Benefit Plans.”

(b) Any current and prior material documents, including all amendments thereto, with respect to each Parent Employee Benefit Plan have been given to the Company or its advisors.

(c) All Parent Employee Benefit Plans are in material compliance with the applicable requirements of ERISA, the Code and any other applicable state, federal or foreign law.

(d) There are no pending, or to the knowledge of the Parent, threatened, claims or lawsuits which have been asserted or instituted against any Parent Employee Benefit Plan, the assets of any of the trusts or funds under the Parent Employee Benefit Plans, the plan sponsor or the plan administrator of any of the Parent Employee Benefit Plans or against any fiduciary of a Parent Employee Benefit Plan with respect to the operation of such plan.

(e) There is no pending, or to the knowledge of the Parent, threatened, investigation or pending or possible enforcement action by the Pension Benefit Guaranty Corporation, the Department of Labor, the Internal Revenue Service or any other government agency with respect to any Parent Employee Benefit Plan.

(f) No actual or, to the knowledge of Parent, contingent liability exists with respect to the funding of any Parent Employee Benefit Plan or for any other expense or obligation of any Parent Employee Benefit Plan, except as disclosed on the financial statements of the Parent or the Parent SEC Documents, and to the knowledge of the Parent, no contingent liability exists under ERISA with respect to any “multi-employer plan,” as defined in Section 3(37) or Section 4001(a)(3) of ERISA.

3.17 Litigation . Except as disclosed in the Parent SEC Documents, there is no legal action, suit, arbitration or other legal, administrative or other governmental proceeding pending or, to the knowledge of the Parent, threatened against or affecting the Parent or Acquisition Corp. or their properties, assets or business. To the knowledge of the Parent, neither Parent nor Acquisition Corp. is in default with respect to any order, writ, judgment, injunction, decree, determination or award of any court or any governmental agency or instrumentality or arbitration authority.

3.18 Interested Party Transactions . Except as disclosed in the Parent SEC Documents, no officer, director or stockholder of the Parent or any Affiliate or “associate” (as such term is defined in Rule 405 under the Securities Act) of any such Person or the Parent has or has had, either directly or indirectly, (a) an interest in any Person that (i) furnishes or sells services or products that are furnished or sold or are proposed to be furnished or sold by the Parent or (ii) purchases from or sells or furnishes to the Parent any goods or services, or (b) a

beneficial interest in any contract or agreement to which the Parent is a party or by which it may be bound or affected.

3.19 Questionable Payments . Neither the Parent, Acquisition Corp. nor to the knowledge of the Parent, any director, officer, agent, employee or other Person associated with or acting on behalf of the Parent or Acquisition Corp., has used any corporate funds for unlawful contributions, gifts, entertainment or other unlawful expenses relating to political activity; made any direct or indirect unlawful payments to government officials or employees from corporate funds; established or maintained any unlawful or unrecorded fund of corporate monies or other assets; made any false or fictitious entries on the books of record of any such corporations; or made any bribe, rebate, payoff, influence payment, kickback or other unlawful payment.

3.20 Assets and Contracts . Except as expressly set forth in the Parent SEC Documents (a) the Parent is not a party to any written or oral agreement not made in the ordinary course of business that is material to the Parent; and (b) Parent does not own any real property.

3.21 Disclosure . There is no fact relating to Parent that Parent has not disclosed to the Company in writing that materially and adversely affects nor, insofar as Parent can now foresee, will materially and adversely affect, the condition (financial or otherwise), properties, assets, liabilities, business operations, results of operations or prospects of Parent. No representation or warranty by Parent herein and no information disclosed in the schedules or exhibits hereto by Parent contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements contained herein or therein not misleading.

4.	Letter of Transmittal

Promptly after the Effective Time, Parent shall cause to be mailed to each holder of record of Company Stock that was converted pursuant to Section 1.5 hereof into the right to receive Parent Common Stock a letter of transmittal (“ Letter of Transmittal ”), in substantially the form attached hereto as Exhibit E , which shall contain additional representations, warranties and covenants of such Stockholder, including, without limitation, that (i) such Stockholder has full right, power and authority to deliver such Company Common Stock and Letter of Transmittal, (ii) the delivery of such Company Common Stock will not violate or be in conflict with, result in a breach of or constitute a default under, any indenture, loan or credit agreement, deed of trust, mortgage, security agreement or other agreement or instrument to which such Stockholder is bound or affected, (iii) such Stockholder has good, valid and marketable title to all shares of Company Common Stock indicated in such Letter of Transmittal and that such Stockholder is not affected by any voting trust, agreement or arrangement affecting the voting rights of such Company Common Stock, (iv) such Stockholder is acquiring Parent Common Stock for investment purposes, and not with a view to selling or otherwise distributing such Parent Common Stock in violation of the Securities Act or the securities laws of any state, (v) that it has adequate net worth and means of providing for its current needs and contingencies to sustain a complete loss of its investment in the Parent Common Stock, (vi) that it has such knowledge and experience in business and financial matters and with respect to investments in securities so as to enable it to understand and evaluate the risks of its investment in the Parent Common Stock and form an investment decision with respect thereto, (vii) such Stockholder has had an opportunity to ask and receive answers to any questions such Stockholder may have had

concerning the terms and conditions of the Merger and the Parent Common Stock and has obtained any additional information that such Stockholder has requested. Delivery shall be effected, and risk of loss and title to the Parent Common Stock shall pass, only upon delivery to the Parent (or an agent of the Parent) of (x) certificates evidencing ownership thereof as contemplated by Section 1.5(c) hereof (or affidavit of lost certificate), and (y) the Letter of Transmittal.

5.	Conduct of Businesses Pending the Merger .

5.1 Conduct of Business by the Company Pending the Merger . Prior to the Effective Time, unless Parent or Acquisition Corp. shall otherwise agree in writing or as otherwise contemplated by this Agreement:

(a) the business of the Company shall be conducted only in the ordinary course;

(b) the Company shall not (i) directly or indirectly redeem, purchase or otherwise acquire or agree to redeem, purchase or otherwise acquire any shares of its capital stock; (ii) amend its Certificate of Incorporation or Bylaws; or (iii) split, combine or reclassify the outstanding Company Common Stock or declare, set aside or pay any dividend payable in cash, stock or property or make any distribution with respect to any such stock;

(c) the Company shall not (i) issue or agree to issue any additional shares of, or options, warrants or rights of any kind to acquire any shares of, Company Common Stock; (ii) acquire or dispose of any fixed assets or acquire or dispose of any other substantial assets other than in the ordinary course of business; (iii) incur additional Indebtedness or any other liabilities or enter into any other transaction other than in the ordinary course of business; (iv) enter into any contract, agreement, commitment or arrangement with respect to any of the foregoing; or (v) except as contemplated by this Agreement, enter into any contract, agreement, commitment or arrangement to dissolve, merge, consolidate or enter into any other material business combination;

(d) the Company shall use its commercially reasonable efforts to preserve intact the business organization of the Company, to keep available the service of its present officers and key employees, and to preserve the good will of those having business relationships with it;

(e) the Company will not, nor will it authorize any director or authorize or permit any officer or employee or any attorney, accountant or other representative retained by it to, make, solicit, encourage any inquiries with respect to, or engage in any negotiations concerning, any Acquisition Proposal (as defined below). The Company will promptly advise Parent orally and in writing of any such inquiries or proposals (or requests for information) and the substance thereof. As used in this paragraph, “ Acquisition Proposal ” shall mean any proposal for a merger or other business combination involving the Company or for the acquisition of a substantial equity interest in it or all or a significant portion of the assets of it other than as contemplated by this Agreement. The Company will immediately cease and cause

to be terminated any existing activities, discussions or negotiations with any person conducted heretofore with respect to any of the foregoing; and

(f) the Company will not enter into any new employment agreements with any of its officers or employees or grant any increases in the compensation or benefits of its officers and employees other than increases in the ordinary course of business and consistent with past practice or amend any employee benefit plan or arrangement.

5.2 Conduct of Business by Parent and Acquisition Corp . Pending the Merger, prior to the Effective Time, unless the Company shall otherwise agree in writing or as otherwise contemplated by this Agreement:

(a) the business of Parent and Acquisition Corp. shall be conducted only in the ordinary course;

(b) neither Parent nor Acquisition Corp. shall (i) directly or indirectly redeem, purchase or otherwise acquire or agree to redeem, purchase or otherwise acquire any shares of its capital stock; (ii) amend its articles or certificate of incorporation or Bylaws; (iii) split, combine or reclassify its capital stock or declare, set aside or pay any dividend payable in cash, stock or property or make any distribution with respect to such stock, or (iv) enter into any contract, agreement, commitment or arrangement to dissolve; and

(c) neither the Parent nor Acquisition Corp. will enter into any new employment agreements with any of their officers or employees or grant any increases in the compensation or benefits of their officers or employees.

6.	Additional Agreements .

6.1 Additional Covenants . Subject to the terms and conditions herein provided, each of the parties hereto agrees to use its commercially reasonable efforts to take, or cause to be taken, all action and to do, or cause to be done, all things necessary, proper or advisable under applicable laws and regulations to consummate and make effective the transactions contemplated by this Agreement, including using its commercially reasonable efforts to satisfy the conditions precedent to the obligations of any of the parties hereto to obtain all necessary waivers, and to lift any injunction or other legal bar to the Merger (and, in such case, to proceed with the Merger as expeditiously as possible). In order to obtain any necessary governmental or regulatory action or non-action, waiver, consent, extension or approval, each of Parent, Acquisition Corp. and the Company agrees to take all reasonable actions and to enter into all reasonable agreements as may be necessary to obtain timely governmental or regulatory approvals and to take such further action in connection therewith as may be necessary. In case at any time after the Effective Time any further action is necessary or desirable to carry out the purposes of this Agreement, the proper officers and/or directors of Parent, Acquisition Corp. and the Company shall take all such necessary action.

6.2 Publicity . No party shall issue any press release or public announcement pertaining to the Merger that has not been agreed upon in advance by Parent and the Company, except as Parent reasonably determines to be necessary in order to comply with the rules of the Commission or of the principal trading exchange or market for Parent Common Stock; provided,

that in such case Parent will use its best efforts to allow the Company to review and reasonably approve any press release or public announcement prior to its release.

6.3 Registration Rights Agreement . As of the Effective Time, Parent shall enter into a Registration Rights Agreement with each of the Stockholders on substantially the terms set forth in the form of agreement attached as Exhibit F .

6.4 Indemnification of Officers and Directors . From and after the Effective Time, Parent shall cause the Surviving Corporation and the Subsidiaries (if applicable) to fulfill and honor in all respects the obligations of Company pursuant to any indemnification provisions under the certificate of incorporation and bylaws of the Company as each is in effect on the date of this Agreement (the persons entitled to be indemnified pursuant to such provisions, and all other current and former directors and officers of Target and its Subsidiaries, being referred to collectively as the “ Indemnified Parties ”). Parent shall cause the certificate of incorporation and bylaws of the Surviving Corporation to contain the provisions with respect to indemnification and exculpation from liability set forth in Company’s certificate of incorporation and bylaws on the date of this Agreement, which provisions shall not be amended, repealed or otherwise modified after the Effective Time in any manner that would adversely affect the rights thereunder of any Indemnified Party.

7.	Conditions of Parties’ Obligations .

7.1 Parent and Acquisition Corp. Obligations . The obligations of Parent and Acquisition Corp. under this Agreement, the Certificate of Merger and the Statement of Merger are subject to the fulfillment at or prior to the Closing of the following conditions, any of which may be waived, in whole or in part, by Parent.

(a) Accuracy of Representations . The representations and warranties of the Company set forth in this Agreement (excluding any representation or warranty that refers specifically to “the date of this Agreement,” “the date hereof” or any other date other than the Closing Date) shall be accurate in all material respects as of the Closing Date as if made on and as of the Closing Date (it being understood that, for purposes of determining the accuracy of such representations and warranties, (i) any update of or modification to the Company Disclosure Schedule made or purported to have been made after the date of this Agreement shall be disregarded, (ii) any inaccuracy that does not have a Material Adverse Effect on the Company shall be disregarded, (iii) any inaccuracy that results from or relates to general business or economic conditions shall be disregarded, (iv) any inaccuracy that results from or relates to conditions generally affecting the industry in which the Company competes shall be disregarded, (v) any inaccuracy that results from or relates to the announcement or pendency of the Merger or any of the other transactions contemplated by this Agreement shall be disregarded, and (vi) any inaccuracy that results from or relates to the taking of any action contemplated by this Agreement shall be disregarded).

(b) Compliance with Agreement . The Company shall have performed and complied in all material respects with all agreements and conditions required by this Agreement to be performed or complied with by it on or before the Closing Date and this Agreement and the Merger shall have been duly authorized by the Board of Directors of the Company and, to the

extent required by the DGCL, have been approved by the requisite vote of the Stockholders, and all of the corporate acts and other proceedings required for the due and valid authorization, execution, delivery and performance of the Merger Documents and the consummation of the Merger have been validly and appropriately taken, except for the filing of the Certificate of Merger, which shall be filed upon or promptly after the Closing.

(c) No Default or Adverse Change . There shall not exist on the Closing Date any Default or Event of Default or any event or condition that, with the giving of notice or lapse of time, or both, would constitute a Default or Event of Default, and since the Balance Sheet Date, there shall have been no Material Adverse Change in the Condition of the Company.

(d) The Company shall have delivered to Parent a certificate dated the Closing Date, executed on its behalf by Charles Killpack, the President and Chief Executive Officer of the Company, certifying the satisfaction of the conditions specified in paragraphs (a), (b) and (c) of this Section 7.1.

(e) No Restraining Action . No action or proceeding before any court, governmental body or agency shall have been threatened, asserted or instituted to restrain or prohibit, or to obtain substantial damages in respect of, this Agreement or the Certificate of Merger or the carrying out of the transactions contemplated by the Merger Documents.

(f) Supporting Documents . Parent and Acquisition Corp. shall have received the following:

(i) Copies of resolutions of the Board of Directors and the Stockholders of the Company, certified by the Secretary of the Company, authorizing and approving the execution, delivery and performance of the Merger Documents and all other documents and instruments to be delivered pursuant hereto and thereto.

(ii) A certificate of incumbency executed by the Secretary of the Company certifying the names, titles and signatures of the officers authorized to execute any documents referred to in this Agreement and further certifying that the Certificate of Incorporation and Bylaws of the Company delivered to Parent and Acquisition Corp. at the time of the execution of this Agreement have been validly adopted and have not been amended or modified.

(iii) A certificate, dated the Closing Date, executed by the Company’s Secretary, certifying that, except for the filing of the Statement of Merger and Certificate of Merger: (i) all consents, authorizations, orders and approvals of, and filings and registrations with, any court, governmental body or instrumentality that are required for the execution and delivery of this Agreement, the Certificate of Merger and the consummation of the Merger shall have been duly made or obtained, and all material consents by third parties that are required for the Merger have been obtained; and (ii) no action or proceeding before any court, governmental body or agency has been threatened, asserted or instituted to restrain or prohibit, or to obtain substantial damages in respect of, this Agreement, the Statement of Merger, the Certificate of Merger or the carrying out of the transactions contemplated by the Merger Documents.

(iv) Evidence as of a recent date of the good standing and corporate existence of the Company issued by the Secretary of State of the State of Delaware and evidence that the Company is qualified to transact business as a foreign corporation and is in good standing in each other state of the United States and in each other jurisdiction where the character of the property owned or leased by it or the nature of its activities makes such qualification necessary.

(v) No more than 15% of the Stockholders of the Company shall have voted against the Merger or shall have demanded or exercised their appraisal rights pursuant Section 262 of the DGCL.

(vi) Termination Agreements in the form previously delivered to Parent causing the termination of all warrants to purchase shares of the Company’s Series B-1 Preferred Stock and Series C Preferred Stock.

(vii) Such additional supporting documentation and other information with respect to the transactions contemplated hereby as Parent and Acquisition Corp. may reasonably request.

(g) Registration Rights Agreement . Parent shall have entered into a Registration Rights Agreement with each of the Stockholders on substantially the terms set forth in the form of agreement attached as Exhibit F .

(h) Proceedings and Documents . All corporate and other proceedings and actions taken in connection with the transactions contemplated hereby and all certificates, opinions, agreements, instruments and documents mentioned herein or incident to any such transactions shall be reasonably satisfactory in form and substance to Parent and Acquisition Corp. The Company shall furnish to Parent and Acquisition Corp. such supporting documentation and evidence of the satisfaction of any or all of the conditions precedent specified in this Section 7.1 as Parent or its counsel may reasonably request.

7.2 Company Obligations . The obligations of the Company under this Agreement, the Certificate of Merger and the Statement of Merger are subject to the fulfillment at or prior to the Closing of the following conditions, and of which may be waived, in whole or in part, by the Company:

(a) Accuracy of Representations . The representations and warranties of Parent and Acquisition Corp. set forth in this Agreement (excluding any representation or warranty that refers specifically to “the date of this Agreement,” “the date hereof” or any other date other than the Closing Date) shall be accurate in all material respects as of the Closing Date as if made on and as of the Closing Date (it being understood that, for purposes of determining the accuracy of such representations and warranties, (i) any update of or modification to the Parent Company Disclosure Schedule made or purported to have been made after the date of this Agreement shall be disregarded, (ii) any inaccuracy that does not have a Material Adverse Effect on the Parent or any subsidiary of the Parent shall be disregarded, (iii) any inaccuracy that results from or relates to general business or economic conditions shall be disregarded, (iv) any inaccuracy that results from or relates to conditions generally affecting the industry in which the

Parent competes shall be disregarded, and (v) any inaccuracy that results from or relates to the taking of any action contemplated by this Agreement shall be disregarded)

(b) Compliance with Agreement . Parent and Acquisition Corp. shall have performed and complied in all material respects with all agreements and conditions required by this Agreement and the Certificate of Merger to be performed or complied with by them on or before the Closing Date.

(c) No Default or Adverse Change . There shall not exist on the Closing Date any Default or Event of Default or any event or condition, that with the giving of notice or lapse of time, or both, would constitute a Default of Event of Default, and since the Parent Balance Sheet Date, there shall have been no Material Adverse Change in the Condition of the Parent.

(d) Certificate of Officer . Parent and Acquisition Corp. shall have delivered to the Company a certificate dated the Closing Date, executed on their behalf by their respective President and CEO, certifying the satisfaction of the conditions specified in paragraphs (a), (b), and (c) of this Section 7.2.

(e) Supporting Documents . The Company shall have received the following:

(1) Copies of resolutions of Parent’s and Acquisition Corp.’s respective boards of directors and the sole shareholder of Acquisition Corp., certified by their respective Secretaries, authorizing and approving, to the extent applicable, the execution, delivery and performance of this Agreement, the Statement of Merger, the Certificate of Merger, the Certificate of Amendment and all other documents and instruments to be delivered by them pursuant hereto and thereto.

(2) A certificate of incumbency executed by the respective Secretaries of Parent and Acquisition Corp. certifying the names, titles and signatures of the officers authorized to execute the documents referred to in paragraph (1) above and further certifying that the articles or certificates of incorporation and Bylaws of Parent and Acquisition Corp. appended thereto have not been amended or modified.

(3) A certificate, dated the Closing Date, executed by the Secretary of each of the Parent and Acquisition Corp., certifying that, except for the filing of the Certificate of Merger: (i) all consents, authorizations, orders and approvals of, and filings and registrations with, any court, governmental body or instrumentality that are required for the execution and delivery of this Agreement, the Certificate of Merger, the Certificate of Merger, the Certificate of Amendment and the consummation of the Merger shall have been duly made or obtained, and all material consents by third parties required for the Merger have been obtained; and (ii) no action or proceeding before any court, governmental body or agency has been threatened, asserted or instituted to restrain or prohibit, or to obtain substantial damages in respect of, this Agreement or the Certificate of Merger or the carrying out of the transactions contemplated by any of the Merger Documents.

(4) Evidence as of a recent date of the good standing and corporate existence of the Parent made available to the Company by the Secretary of State of Colorado.

(5) Evidence as of a recent date of the good standing and corporate existence of Acquisition Corp. issued by the Secretary of State of Colorado.

(6) No more than 15% of the Stockholders of the Company shall have voted against the Merger or shall have demanded or exercised their appraisal rights pursuant Section 262 of the DGCL.

(7) Such additional supporting documentation and other information with respect to the transactions contemplated hereby as the Company may reasonably request.

(f) Registration Rights Agreement . Each of the Stockholders shall enter into a Registration Rights Agreement on substantially the terms set forth in the form of agreement attached as Exhibit F .

(g) Proceedings and Documents . All corporate and other proceedings and actions taken in connection with the transactions contemplated hereby and all certificates, opinions, agreements, instruments and documents mentioned herein or incident to any such transactions shall be satisfactory in form and substance to the Company. Parent and Acquisition Corp. shall furnish to the Company such supporting documentation and evidence of satisfaction of any or all of the conditions specified in this Section 7.2 as the Company may reasonably request.

8.	Survival of Representations and Warranties; Indemnification .

(a) Company Representations . Except as set forth below, the representations and warranties of the Company made in Section 2 of this Agreement (including the applicable Company Disclosure Schedules to the Agreement which are hereby incorporated by reference) shall survive for one (1) year beyond the Effective Time. Notwithstanding the foregoing, the representations and warranties set forth in Sections 2.1, 2.3 and 2.5 shall survive until the date that is 60 trading days following the Trigger Date.

(b) Company Indemnification . Notwithstanding Section 8(a) above, the aggregate maximum amount of damages that may be recovered by the Parent or Acquisition Corp. arising out of or in connection with the breach of any of the representations and warranties of the Company made in Section 2 of this Agreement shall not exceed $550,000. This Section 8 shall not limit any claim for fraud or for breach of any covenant or agreement of the parties which by its terms contemplates performance after the Effective Time. In the event of a breach for which indemnity if available pursuant to this Section 8(b), the Company shall be entitled to compensate Parent or Acquisition Corp. either with cash or by returning shares of common stock of the Parent issued pursuant to this Agreement, which shares shall be valued for purposes of such indemnification claim at the Parent Stock Value.

(c) Parent and Acquisition Corp. Representations . Except as set forth below, the representations and warranties of the Parent and the Acquisition Corp. made in Section 3 of this Agreement shall survive for one (1) year beyond the Effective Time; provided, however, that the one-year survival period shall be extended by the Delay Period (as defined in Section 1.8(a) above). Notwithstanding the foregoing , the representations and warranties set forth in Sections 3.1, 3.2, 3.4, and 3.6 shall survive until the date that is 60 trading days following the Trigger Date.

(d) Parent and Acquisition Corp. Indemnification . Notwithstanding Section 8(c) above, the aggregate maximum amount of damages that may be recovered by the Company arising out of or in connection with the breach of any of the representations and warranties of the parties made in Section 3 of this Agreement shall not exceed $550,000. This Section 8(d) shall not limit any claim for fraud or for breach of any covenant or agreement of the parties which by its terms contemplates performance after the Effective Time.

9.	Amendment of Agreement .

This Agreement, the Certificate of Merger, and the Statement of Merger may be amended or modified at any time in all respects by an instrument in writing executed (i) in the case of this Agreement by the parties hereto; and (ii) in the case of the Certificate of Merger and Statement of Merger by the parties thereto.

10.

Definitions .

Unless the context otherwise requires, the terms defined in this Section 10 shall have the meanings herein specified for all purposes of this Agreement, applicable to both the singular and plural forms of any of the terms herein defined.

“ Acquisition Corp. ” means Pixx Acquisition Corp., a Delaware corporation.

“ Acquisition Proposal ” shall have the meaning assigned to such term in each of Section 5.1(e) hereof.

“ Affiliate ” shall mean any Person that directly or indirectly controls, is controlled by, or is under common control with, the indicated Person.

“ Agreement ” shall mean this Agreement.

“ Average Closing Price ” shall mean the average daily closing price of the Parent Common Stock for the 20 trading days ending two days prior to the Closing.

“ Balance Sheet ” and “ Balance Sheet Date ” shall have the meanings assigned to such terms in Section 2.9 hereof.

“ CBCA ” shall have the meaning assigned to it in the second recital hereof.

“ Certificate of Merger ” shall have the meaning assigned to it in the second recital hereof.

“ Closing ” and “ Closing Date ” shall have the meanings assigned to such terms in Section 11 hereof.

“ Code ” shall mean the Internal Revenue Code of 1986, as amended.

“ Commission ” shall mean the U.S. Securities and Exchange Commission.

“ Company ” shall mean Pixxures, Inc., a Delaware corporation.

“ Company Common Stock ” shall have the meaning assigned to it in Section 1.5(a)(ii) hereof.

Company Disclosure Schedule shall have the meaning assigned to it in Section 2 hereof.

“ Company Employee Benefit Plans ” shall have the meaning assigned to it in Section 2.17 hereof.

“ Company Preferred Stock ” shall have the meaning assigned to it in Section 1.5(a)(iii) hereof.

“ Company Stock ” shall have the meaning assigned to it in Section 1.5(b).

“ Condition of the Company ” shall have the meaning assigned to it in Section 2.2 hereof.

“ Condition of the Parent ” shall have the meaning assigned to it in Section 3.13 hereof.

“ Constituent Corporations ” shall have the meaning assigned to it in Section 1.4 hereof.

“ Default ” shall mean a default or failure in the due observance or performance of any covenant, condition or agreement on the part of the Company, Parent, or Acquisition Corp. to be observed or performed under the terms of this Agreement, or any Merger Document, if such default or failure in performance shall remain unremedied for five (5) days (or such longer period if otherwise specified in this Agreement).

“ DGCL ” shall have the meaning assigned to it in the second recital hereof.

“ Effective Time ” shall have the meaning assigned to it in Section 1.2 hereof.

“ Equity Security ” shall mean any stock or similar security of an issuer or any security (whether stock or Indebtedness for Borrowed Money) convertible, with or without consideration, into any stock or similar equity security, or any security (whether stock or Indebtedness for Borrowed Money) carrying any warrant or right to subscribe to or purchase any stock or similar security, or any such warrant or right.

“ ERISA ” shall have the meaning assigned to it in Section 2.17 hereof.

“ Exchange Act ” shall mean the Securities Exchange Act of 1934, as amended.

“ Event of Default ” shall mean (a) the failure of the Company, Parent, or Acquisition Corp. to pay any Indebtedness for Borrowed Money, or any interest or premium thereon, within five (5) days after the same shall become due, whether such Indebtedness shall become due by scheduled maturity, by required prepayment, by acceleration, by demand or otherwise, (b) an event of default under any agreement or instrument evidencing or securing or relating to any such Indebtedness, or (c) the failure of the Company, Parent, or Acquisition Corp. to perform or observe any material term, covenant, agreement or condition on its part to be performed or observed under any agreement or instrument evidencing or securing or relating to any such Indebtedness when such term, covenant or agreement is required to be performed or observed.

“ GAAP ” shall have the meaning assigned to it in Section 2.9 hereof.

“ Indebtedness ” shall mean any obligation of the Company, Parent, or Acquisition Corp. which under generally accepted accounting principles is required to be shown on the balance sheet of the Company, Parent, or Acquisition Corp., respectively, as a liability. Any obligation secured by a Lien on, or payable out of the proceeds of production from, property of the Company, Parent, or Acquisition Corp., shall be deemed to be Indebtedness of the respective entity even though such obligation is not assumed by the such entity.

“ Indebtedness for Borrowed Money ” shall mean (a) all Indebtedness in respect of money borrowed including, without limitation, Indebtedness which represents the unpaid amount of the purchase price of any property and is incurred in lieu of borrowing money or using available funds to pay such amounts and not constituting an account payable or expense accrual incurred or assumed in the ordinary course of business of the Company, Parent, or Acquisition Corp., respectively, (b) all Indebtedness evidenced by a promissory note, bond or similar written obligation to pay money of the Company, Parent, or Acquisition Corp., respectively ,or (c) all such Indebtedness guaranteed by the of the Company, Parent, or Acquisition Corp., respectively, or for which the of the Company, Parent, or Acquisition Corp., respectively, is otherwise contingently liable.

“ Initial Registration Statement ” shall have the meaning assigned to it in Section 1.8(a) hereof.

“ Investment Company Act ” shall mean the Investment Company Act of 1940, as amended.

“ knowledge ” and “ know ” means, when referring to any person or entity, the actual knowledge of such person or entity of a particular matter or fact, and what that person or entity would have reasonably known after due inquiry. An entity will be deemed to have “knowledge” of a particular fact or other matter if any individual who is serving, or who has served, as an executive officer of such entity has actual “knowledge” of such fact or other matter, or had actual “knowledge” during the time of such service of such fact or other matter, or would have had “knowledge” of such particular fact or matter after due inquiry.

“ Letter of Transmittal ” shall have the meaning assigned to it in Section 4 hereof.

“ Lien ” shall mean any mortgage, pledge, security interest, encumbrance, lien or charge of any kind, including, without limitation, any conditional sale or other title retention agreement,

any lease in the nature thereof and the filing of or agreement to give any financing statement under the Uniform Commercial Code of any jurisdiction and including any lien or charge arising by statute or other law.

“ Material Adverse Change ” means, with respect to any Person, an adverse change in the financial condition or results of operations of the Person since the date of this Agreement; pr ovided, however , that for purposes of determining whether there shall have been any such material adverse change, (i) any adverse change resulting from or relating to general business or economic conditions shall be disregarded, (ii) any adverse change resulting from or relating to conditions generally affecting the industry in which the Person competes shall be disregarded, (iii) any adverse change resulting from or relating to the announcement or pendency of the Merger or any of the other transactions contemplated by this Agreement shall be disregarded, and (iv) any adverse change resulting from or relating to the taking of any action contemplated by this Agreement shall be disregarded.

“ Merger ” shall have the meaning assigned to it in the first recital hereof.

“ Merger Documents ” shall have the meaning assigned to it in Section 2.5 hereof.

“ Parent ” shall mean Xedar Corporation, a Colorado corporation.

“ Parent Balance Sheet ” and “ Parent Balance Sheet Date ” shall have the meanings assigned to them in Section 3.13 hereof.

“ Parent Common Stock ” shall have the meaning assigned to it in Section 3.4 hereof.

“ Parent Employee Benefit Plans ” shall have the meaning assigned to it in Section 3.16 hereof.

“ Parent Financial Statements ” shall have the meaning assigned to it in Section 3.8 hereof.

“ Parent SEC Documents ” shall have the meaning assigned to it in Section 3.7(b) hereof.

“ Parent Stock Value ” shall mean the average daily closing price of the Parent Common Stock for the 20 trading days ending two days prior to the Closing.

“ Patent and Trademark Rights ” shall have the meaning assigned to it in Section 2.15 hereof.

“ Permitted Liens ” shall mean (a) Liens for taxes and assessments or governmental charges or levies not at the time due or in respect of which the validity thereof shall currently be contested in good faith by appropriate proceedings; (b) Liens in respect of pledges or deposits under workmen’s compensation laws or similar legislation, carriers’, warehousemen’s, mechanics’, laborers’ and materialmens’ and similar Liens, if the obligations secured by such Liens are not then delinquent or are being contested in good faith by appropriate proceedings; and (c) Liens incidental to the conduct of the business of the Company that were not incurred in connection with the borrowing of money or the obtaining of advances or credits and which do

not in the aggregate materially detract from the value of its property or materially impair the use made thereof by the Company in its business.

“ Person ” shall include all natural persons, corporations, business trusts, associations, limited liability companies, partnerships, joint ventures and other entities and governments and agencies and political subdivisions.

“ Securities Act ” shall mean the Securities Act of 1933, as amended.

“ Series B-1 Conversion Ratio ” shall mean the quotient obtained by dividing (a)(i) $1,943,607.10 divided by (ii) the Average Closing Price, by (b) the number of shares of Series B-1 Preferred Stock outstanding as of the Closing Date [28,467,138].

“ Series C Conversion Ratio ” shall mean the quotient obtained by dividing (a)(i) $3,171,392.90 divided by (ii) the Average Closing Price, by

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