On\u00a0January 4, 2016, Abakan and MesoCoat entered into a Satisfaction and Assignment Agreement (the \u201cSatisfaction Agreement\u201d) with secured creditors\u00a0George Town, SA (\u201cGeorge Town\u201d) and Sonoro Invest S.A. (\u201cSonoro\u201d), as well as unsecured creditors\u00a0Joseph T. Eberhard\u00a0(\u201cEberhard\u201d), and\u00a0David van der Gulik,\u00a0Warren Lydon,\u00a0Philip Graves,\u00a0Paul Ammon, Ammon & Associates and\u00a0Vladimir Chernyakov\u00a0(together the \u201cAbakan Petitioning Creditors\u201d and collectively with\u00a0George Town, Sonoro and Eberhard, the \u201cCreditors\u201d), reflecting the terms of the Court Approved Transaction. Pursuant to the Satisfaction Agreement, Abakan transferred 77.5% of the outstanding stock and ownership in MesoCoat to the Creditors in satisfaction of approximately\u00a0$6.24 million\u00a0of claims by the\u00a0Creditor\u2019s\u00a0against Abakan and MesoCoat. Under the terms of the Satisfaction Agreement, George Town received 38.75% of MesoCoat\u2019s outstanding stock, Sonoro received 28.17% of MesoCoat\u2019s outstanding stock, Eberhard received 7.44% of MesoCoat\u2019s outstanding stock and the Abakan Petitioning Creditors received an aggregate of 3.14% of MesoCoat\u2019s outstanding stock. Abakan retained 22.5% of MesoCoat\u2019s outstanding stock.\u00a0 In addition, MesoCoat agreed to pay in full the claims of certain creditors of MesoCoat in the aggregate amount of approximately $41,900 within 14 days of execution of the Satisfaction Agreement.\u00a0 Further, pursuant to the Satisfaction Agreement, the Receiver will continue to serve as receiver over MesoCoat and Abakan for 91 days following the date of the Settlement Agreement. MesoCoat is continuing to pay other creditors in the ordinary course of business. .\u00a0.<\/p>\n