# EDGAR Filing Document

**Accession Number:** 0001391426
**File Stem:** 0001903596-23-000060
**Filing Date:** 2023-1
**Character Count:** 728799
**Document Hash:** 36209ba3653212219b3f977cc5e1c338
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001903596-23-000060.hdr.sgml**: 20230123

**ACCESSION NUMBER**: 0001903596-23-000060

**CONFORMED SUBMISSION TYPE**: S-1

**PUBLIC DOCUMENT COUNT**: 9

**FILED AS OF DATE**: 20230123

**DATE AS OF CHANGE**: 20230123

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Clean Vision Corp
- **CENTRAL INDEX KEY:** 0001391426
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-OFFICES & CLINICS OF DOCTORS OF MEDICINE [8011]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** S-1
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-269367
- **FILM NUMBER:** 23545184

**BUSINESS ADDRESS:**
- **STREET 1:** 2711 N. SEPULVEDA BLVD
- **CITY:** MANHATTAN BEACH
- **STATE:** CA
- **ZIP:** 90266
- **BUSINESS PHONE:** 424-835-1845

**MAIL ADDRESS:**
- **STREET 1:** 2711 N. SEPULVEDA BLVD
- **CITY:** MANHATTAN BEACH
- **STATE:** CA
- **ZIP:** 90266

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Byzen Digital, Inc.
- **DATE OF NAME CHANGE:** 20210325

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** CHINA VITUP HEALTH CARE HOLDINGS, INC.
- **DATE OF NAME CHANGE:** 20070227

**As filed with the Securities and Exchange Commission on January 23, 2023**

**Registration No. 333-** 

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM S-1**

**REGISTRATION STATEMENT**

***UNDER***

***THE SECURITIES ACT OF 1933***

**CLEAN VISION CORPORATION**

**(Exact Name of Registrant as Specified in Its Charter)**

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**<u>Nevada</u>** | &nbsp;&nbsp; **<u>7389</u>** | &nbsp;&nbsp;**<u>85–1449444</u>** |
| &nbsp;&nbsp; **(State or Other Jurisdiction of**<br> **Incorporation or Organization)** | &nbsp;&nbsp; **(Primary Standard Industrial**<br> **Classification Code Number)** | &nbsp;&nbsp; **(I.R.S. Employer**<br> **Identification Number)** |

---

**2711 N. Sepulveda Blvd. #1051**

**Manhattan Beach, CA 90266**

**<u>(424) 835-1845</u>**

**(Address, Including Zip Code, and Telephone Number, Including Area Code, of Registrant's Principal Executive Offices)**

**Mr. Daniel Bates**

**Chief Executive Officer**

**2711 N. Sepulveda Blvd. #1051**

**Manhattan Beach, CA 90266**

**<u>(424) 835-1845</u>**

**(Name, Address, Including Zip Code, and Telephone Number, Including Area Code,<br> of Agent For Service)**

***Copies to:***

&nbsp;&nbsp; **Joseph M. Lucosky, Esq.**<br> **Lucosky Brookman LLP**<br> **101 Wood Avenue South, 5<sup>th</sup> Floor**<br> **Woodbridge, NJ 08830**<br> **Tel: (732) 395-4400**<br>

Approximate date of commencement of proposed sale to the public:

As soon as practicable after the effective date of this Registration Statement.

If any of the securities being registered on this form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box. [X]

If this form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. [ ]

If this form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. [ ]

If this form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☒ Smaller reporting company ☒ <br> Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. [ ]

**The registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act or until the Registration Statement shall become effective on such date as the SEC, acting pursuant to said Section 8(a), may determine.**

**The information in this preliminary prospectus is not complete and may be changed. These securities may not be sold until the registration statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell these securities and we are not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.**

***SUBJECT TO COMPLETION, DATED JANUARY 23, 2023***

**PRELIMINARY PROSPECTUS** 

**CLEAN VISION CORPORATION**

**Up to 23,000,000 Shares of Common Stock** 

Pursuant to this prospectus, Coventry Enterprises, LLC ("Coventry" or the "Selling Shareholder") may offer up to 318,000,000 shares of common stock, par value $0.001 (the "Common Stock"), of Clean Vision Corporation, a Nevada corporation (the "Company", "we", "us" or "our") issued to Coventry in connection with the Securities Purchase Agreement by and between Coventry and the Company dated December 9, 2023 (the "Purchase Agreement") as follows (a) up to 3,000,000 shares of Common Stock issued pursuant to the Purchase Agreement (the "Commitment Stock") and (b) up to 20,000,000 shares of Common Stock issuable to Coventry solely upon an event of a default (the "Conversion Stock") under that certain Promissory Note issued to Coventry on December 9, 2023 (the "Note") in the principal amount of $300,000.

Per the terms of the Purchase Agreement, the Company issued 15,500,000 shares of its Common Stock to Coventry. If the Company files an initial Registration Statement within forty-five calendar days from the date of the Note, then Coventy, pursuant to its mandatory obligations thereunder, shall, within ten (10) calendar days thereafter, return to the Company's treasury for cancellation twelve million five hundred thousand (12,500,000) shares of Common Stock. The 3,000,000 shares of Common Stock owned by Coventry represents approximately 0.73% of our issued and outstanding shares of Common Stock of as of January 18, 2023.

Upon an event of default under the Note, the outstanding principal and interest thereon may be converted, at the option of Coventry, into shares of Common Stock at a conversion price equal to 90% per share of the lowest per-share trading price during the 20 trading day period before the conversion.

Coventry is the Selling Shareholder and is deemed to be an "underwriter" within the meaning of the Securities Act of 1933, as amended (the "Act") and any broker-dealers or agents that are involved in selling the shares may be deemed to be "underwriters" within the meaning of the Act in connection with such sales. In such event, any commissions received by such broker-dealers or agents and any profit on the resale of the shares purchased by them may be deemed to be underwriting commissions or equivalent expenses and expenses of legal counsel applicable to the sale of the shares.

Coventry may sell the shares of Common Stock described in this prospectus in a number of different ways and at varying prices. See "Plan of Distribution" for more information about how Coventry may sell the shares of Common Stock being registered pursuant to this prospectus.

The prices at which the Selling Shareholder may sell the shares of Common Shares in this offering will be determined by the prevailing market prices for the shares of Common Shares or in negotiated transactions

The Common Stock is quoted on the OTCQB Market maintained by OTC Markets Group, Inc. ("OTC Markets"), under the symbol "CLNV". On January 18, 2023, the last reported sale price of the Common Stock on the OTCQB was $0.074 per share.

There has been a very limited market for our securities. While our Common Stock is quoted on the OTC Markets, there has been negligible trading volume. There is no guarantee that an active trading market will develop in our securities.

Following the effectiveness of the registration statement of which this prospectus forms a part, the sale and distribution of securities offered hereby may be effected from time to time in one or more transactions that may take place on the OTC Markets (or such other market or quotation system on which our common stock is then listed or quoted), including ordinary brokers' transactions, privately negotiated transactions or through sales to one or more dealers for resale of such securities as principals, at market prices prevailing at the time of sale, at prices related to such prevailing market prices or at negotiated prices. Usual and customary or specifically negotiated brokerage fees or commissions may be paid by the selling stockholders. The selling stockholders and intermediaries through whom such securities are sold may be deemed "underwriters" within the meaning of the Securities Act of 1933, as amended (the "Securities Act"), with respect to the securities offered hereby, and any profits realized or commissions received may be deemed underwriting compensation.

This prospectus describes the general manner in which shares of common stock may be offered and sold by any selling stockholders. When the selling stockholders sell shares of common stock under this prospectus, we may, if necessary and required by law, provide a prospectus supplement that will contain specific information about the terms of that offering. Any prospectus supplement may also add to, update, modify or replace information contained in this prospectus. We urge you to read carefully this prospectus, any accompanying prospectus supplement and any documents we incorporate by reference into this prospectus and any accompanying prospectus supplement before you make your investment decision.

**Investing in our securities involves risks. See "Risk Factors" beginning on page 13 of this prospectus. We and our board of directors are not making any recommendation regarding the exercise of your rights.**

**Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed upon the accuracy or adequacy of this prospectus. Any representation to the contrary is a criminal offense.** 

We are an "emerging growth company" under applicable U.S. Securities and Exchange Commission ("SEC") rules and will be subject to reduced public company reporting requirements.

**The date of this prospectus is , 2023**

**TABLE OF CONTENTS**

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| | |
|:---|:---|
| About This Prospectus |  |
| Glossary Of Industry Terms |  |
| [Prospectus Summary](#a_001) | 4 |
| [The Offering](#a_002) | 11 |
| [Risk Factors](#a_003) | 13 |
| [Cautionary Note Regarding Forward-Looking Statements](#a_004) | 34 |
| [Use of Proceeds](#a_005) | 35 |
| Description of Securities we are Offering |  |
| Determination of The Offering Price |  |
| Dividend Policy |  |
| Capitalization |  |
| Dilution |  |
| Business |  |
| [Management's Discussion and Analysis of Financial Condition and Results of Operations](#a_006) | 37 |
| [Management](#a_007) | 55 |
| [Executive and Director Compensation](#a_008) | 60 |
| [Certain Relationships and Related Party Transactions](#a_009) | 63 |
| Security Ownership of Certain Beneficial Owners and Management |  |
| [Description of Capital Stock](#a_010) | 67 |
| Shares Eligible for Future Sale |  |
| [Plan of Distribution](#a_011) | 73 |
| Blue Sky Restrictions On Resale |  |
| Description of Property |  |
| Legal Proceedings |  |
| [Market for Common Equity and Related Stockholder Matters](#a_012) | 75 |
| [Legal Matters](#a_013) | 76 |
| [Experts](#a_014) | 76 |
| [Where You Can Find More Information](#a_016) | F-1 |

---

Unless the context requires otherwise, references in this prospectus to "Clean Vision," "CLNV," the "Company," "we," "our" "us" and similar terms refer to Clean Vision Corporation, a Nevada corporation, together with its consolidated subsidiaries, unless the context otherwise requires.

**Prospectus Summary**

*This summary highlights selected information contained elsewhere in this prospectus. This summary does not contain all the information that you should consider before investing in our securities. You should carefully read the entire prospectus including "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our Financial Statements and the related notes included elsewhere in this prospectus, before making an investment decision.* 

***<u>Overview</u>***

 ****

We are a new entrant in the clean energy and waste-to-energy industries focused on clean technology and sustainability opportunities. Currently, we are focused on providing a solution to the plastic waste problem by recycling the waste and converting it into saleable byproducts, such as hydrogen and other clean-burning fuels that can be used to generate clean energy. Using a technology known as pyrolysis, which heats the feedstock (*i.e.*, plastic) at high temperatures in the absence of oxygen so that the material does not burn, we are able to turn the feedstock into i) low sulfur fuel, ii) clean hydrogen and iii) carbon black or char (char is created in the pyrolysis of plastic). We have not generated revenue to date and intend to generate revenue from three sources: service revenue from the recycling services we provide, revenue generated from the sale of the byproducts, and revenue generated from the sale of fuel cell equipment. Our mission is to aid in solving the problem of cost-effectively upcycling the vast amount of waste plastic generated on land before it flows into the world's oceans.

We currently operate through our wholly-owned subsidiary, Clean-Seas, Inc. ("Clean-Seas"), which we acquired on May 19, 2020. Clean-Seas acquired its first pyrolysis unit in November 2021 for use in a pilot project in India, which began operations in early May 2022. We believe that this pilot project will showcase our ability to pyrolyze waste plastic (using pyrolysis), which will generate three byproducts: i) low sulfur fuel, ii) clean hydrogen, AquaH<sup>tm</sup>, and iii) char. We intend to sell the majority of the byproducts, while retaining a small amount of the low sulfur fuels and/or hydrogen to power our facilities and equipment. To date, we have not generated any revenue from the provision of pyrolysis services nor have we generated any revenue from the sale of byproducts from our operations in India or fuel cell equipment and we do not currently have any contracts in place to sell these byproducts or fuel cell equipment. However, we believe that there is a strong market for low sulfur fuel and clean hydrogen, upon which we intend to focus our byproduct sales.

According to analysis and projections reported by the U.S. Energy Information Administration ("EIA") on April 7, 2022, it is estimated that 98.3 million barrels per day of petroleum and liquid fuels were consumed globally in March 2022, an increase of 2.4 million barrels per day from March 2021. The EIA estimates that global consumption of petroleum and liquid fuels will rise by 1.9 million barrels per day in 2023 to average 101.7 million barrels per day.

In a report published by Markets and Markets Research in February 2021 entitled "Hydrogen Generation Market by Application (Petroleum Refinery, Ammonia & Methanol production, Transportation, Power Generation), Generation & Delivery Mode (Captive, Merchant), Source (Blue, Green & Grey Hydrogen), Technology, and Region-Forecast to 2025," the global hydrogen generation market is projected to reach $201 billion by 2025 from an estimated $130 billion in 2020, at a compound annual growth rate (CAGR) of 9.2% during the forecast period. While the global green hydrogen market was valued at approximately $0.8 billion in 2021, it is predicted to grow to about $10.2 billion by 2028, with a CAGR of approximately 55.2% over the projection period, according to research and analysis published by Facts and Factors in March 2022 entitled "Green Hydrogen Market By Type (Solid Oxide Electrolyzer, Alkaline Electrolyzer, and Proton Exchange Membrane Electrolyzer), By Use (Transport, Power Generation, and Others) By Customer (Petrochemicals, Glass, Food & Beverages, Chemical, Medical, and Others), and By Region – Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast 2022–2028."

We believe that in the near future, a significant growth sector of the economy will be in clean energy and sustainable products and services. This belief was a key factor in our shift in our business focus in May 2020 and our acquisition of Clean-Seas, which became our wholly-owned subsidiary on May 19, 2020. Clean-Seas believes that it has made significant progress in identifying and developing a new business model around the clean energy and waste-to-energy sectors.

**Clean Vision's Purpose**

Global plastic waste recycling is facing unprecedented challenges. Inadequate processing infrastructure, fewer processing locales, changing laws and conventions, and political circumstances imperil what is already a deficient response to a global problem. Developed nations, including the United States, the world's largest generator of plastic waste, are finding disposal of this waste increasingly difficult, due to expensive and inefficient processing capabilities; global conventions responding to environmental implications of international plastic export; and political constraints. In January 2018, the People's Republic of China, which had been accepting plastic waste from countries including the U.S., implemented its National Sword policy limiting recyclable waste imports. As a result, the worldwide recyclables market experienced drastic limits, fewer options for disposal, resulting in a global backlog of plastic waste. Some of the recyclable material has been rerouted to Southeast Asian countries but the market remains in upheaval, with, at best, plastic waste floating in waiting ships and at worst, illegal dumping into international waters or incinerated.

According to an article published by the United Nations Environment Programme ("UNEP") on March 2, 2022, entitled "What you need to know about the plastic pollution resolution," the world currently produces approximately 400 million tons of plastic waste per year, with the rate of plastic production forecasted to double by 2040. It also estimated that by 2050, there will be more plastic in the ocean by weight than fish. According to an article published by National Geographic entitled "A Whopping 91 Percent of Plastic Isn't Recycled," plastic takes more than 400 years to degrade, so most of it still exists in some form. It is estimated that only 9% of plastic waste has been recycled to date, while the vast majority (approximately 79%) is accumulating in landfills or ending up as litter in the natural environment, including the oceans.

The waste plastics recycling industry was valued at $55.1 billion in 2020 and is poised to become an $88 billion industry by 2030, as reported in a March 2022 report entitled "Market value of waste recycling services worldwide 2020-2030" published by Statista. Pyrolysis is an invaluable technology that can be used to transform certain materials, which traditional mechanical recycling technologies currently cannot handle, into clean energy and other valuable byproducts. Pyrolysis is also an important alternative solution to handling materials that have exhausted their potential for further traditional mechanical recycling.

The emerging markets of the world are especially critical to the plastic pollution problem, where waste handling and collection are not supported with the same infrastructure as in developed nations. We believe this market condition presents a unique opportunity for us. Clean-Seas intends to leverage its management's experience of working in the developing nations of the world for the past decade, providing renewable energy products and services to this sector and now will provide recycling solutions and energy generation. As stated by the Organization for Economic Co-operation and Development (OECD) in 2021, "The path to net zero requires that emerging markets transform their energy systems, yet reliance on hydrocarbons alongside existing policy barriers pose challenges to the green transition."

Clean Vision plans to help provide a solution to the plastic waste problem that the world is facing, while simultaneously creating hydrogen and other clean-burning fuels that can be used to generate clean energy.

**<u>Our Strengths</u>**

We believe that the following are the critical investment attributes of our company:

● *Pilot Project Commenced*. We have acquired our first pyrolysis unit for use in our pilot project in Hyderabad, India, which began operations in May 2022.

● *Large market opportunity for effective solution*. Renewable energy is a large market with an unmet need. Plastic waste disposal affects all countries, including developing nations. With a more recent focus of governments on environmentally friendly waste removal solutions, we believe there is a large opportunity for us.

● *Unique technology*. Pyrolysis technology reduces organic waste while creating valuable byproducts.

● *Public support for clean technologies to protect the environment*. In recent years shareholders have been focusing on environmental sustainability and more investors have been directing their investments towards companies based on ESG factors.

● *Experienced management team*. Members of our management team have years of experience in the renewable energy sector and have begun to develop relationships with several providers of pyrolysis technologies, with whom we expect to seek a strategic partnership or business relationship as we move forward.

● *New Approach to Vertical Supply Chain*. The Plastic Conversion Network ("PCN") is a patent-pending software network connecting sources of waste plastic (feedstock) with conversion facilities, which will produce environmentally friendly commodities. We intend to strategically locate the conversion facilities around the world in locations that are easily accessible and in close proximity to countries that produce a large amount of plastic waste. Currently, we have entered into letters of intent and/or joint venture agreements for the development of facilities in: Morocco, France, Turkey, Sri Lanka, Puerto Rico, Arizona, Massachusetts and Michigan.

**<u>Our Growth Strategy</u>**

We plan to provide tailored solutions to our customers to produce clean energy primarily out of the treatment of waste. We are currently focused on waste-to-energy projects in Morocco, India, France, Turkey, Sri Lanka, Puerto Rico, Arizona, Massachusetts and Michigan due to their proximity to plastic waste, as well as business relationships that have been developed by the management team of Clean Vision with entities and/or municipalities in such countries. We believe there is a virtually endless supply of waste for such projects and the demand for energy (particularly from such projects) is growing consistently.

Another component of the clean energy and waste-to-energy industry in the United States is environmental credits. Recycling of waste plastic mitigates the need for fossil fuels for energy generation and the production of clean-burning diesel. We plan to aggregate these off-sets and sell them to users of fossil fuels in the form of carbon credits or renewable energy credits depending on the location of the facilities and local market conditions. These can be used as off-set as more governments impose a "Carbon-tax" on the end users of fossil fuels. In addition, we expect that in the coming years, there will be new exchanges coming online specifically focused on plastic waste, and credits will be sought after, allowing producers of plastic waste to off-set their plastic footprint, much like what has happened in the carbon markets.

We currently expect our projects to generate revenue in several ways:

●  ***Gate Fees or Tipping Fees*** . It is anticipated that these fees will be paid to us to accept waste from a government, municipality, or corporate entity that must dispose of its waste. Fees are paid to accept this feedstock (which will be waste plastic for our Company) on a per ton basis. Gate fees are expected to vary in range from approximately $35 to $105 per ton, depending on the jurisdiction, land availability, and daily volumes of waste.

●  ***Sale of Hydrogen and Other Fuels*** . Once functional, our anticipated pyrolysis recycling facility will convert waste into hydrogen and other clean-burning fuels. This hydrogen and other fuels can be sold to off-takers as an alternative cleaner fuel for marine use, electrical generators, or refined into a clean-burning road grade fuel. Depending on the installation, this fuel output product can be sold to a local fuel distributor or used in the generator sets for the generation of electricity as above.

●  ***Commodity Sales*** . An additional output product of the technologies is char or carbon black, which is used for the manufacturing of tires, bonding agents, roadway surfaces, and more. We intend to enter into agreements with consumers of carbon black to which we will sell this output product .

●  ***Environmental Credits*** . Recycling of waste plastic mitigates the need for fossil fuels for energy generation and the production of clean-burning diesel. These off-sets can be aggregated and sold to users of fossil fuels in the form of carbon credits or renewable energy credits depending on the location of the facilities and local market conditions. These can be used as off-set as more governments impose a "Carbon-tax" on the end users of fossil fuels.

●  ***Equipment Sales*** . We have entered into a licensing agreement with Kingsberry Fuel Cell, Inc. ("Kingsbury") whereby we have obtained the exclusive, worldwide rights (exclusive of the United States and Canada) to Kingsberry's fuel cell intellectual property for a term of five years, which we intend to sell to third-parties throughout the world. These sales will provide a revenue stream to us, as well as recurring revenue through a royalty model and ongoing service.

**<u>Summary of Risks</u>**

Before you invest in our securities, you should carefully consider all the information in this prospectus, including matters set forth in the section of this prospectus entitled "Risk Factors". We believe that the following are some of the major risks and uncertainties that may affect us:

● We have a history of operating losses and will likely continue to generate operating losses.

● We may not be able to achieve or sustain profitability, and we have not generated revenue from operations to date.

● We recently shifted to a new business line, are at an early stage of development of our current business line and we have a limited operating history, which makes it difficult to evaluate our business and prospects.

● The equipment that is required for our operations is expensive and to date we have only acquired three pyrolysis units.

● We require additional financing, and we may not be able to raise funds on favorable terms or at all.

● Our independent registered public accounting firm has expressed substantial doubt about our ability to continue as a going concern.

● We are a holding company without any operations of our own and depend on our subsidiaries for cash to meet our obligations.

● We have not generated sufficient revenue or cash flow to pay our convertible debt, in the amount of $660,000 as of January 18, 2023.

● Servicing our debt requires a significant amount of cash.

● Covenant restrictions under our indebtedness may limit our ability to operate our business.

● Our success depends on the acceptance of our products and services and that our products and services will develop and grow.

● As public awareness of the benefits of fuel converted from waste plastic grows, we expect competition to increase.

● We face risks with obtaining raw materials.

● We do not believe that we will be able to negotiate worldwide exclusive rights to the technology we will need to acquire.

● Project construction and development requires significant outlays of capital and is subject to numerous risks.

● Our business model will depend on performance by third parties under contractual arrangements.

● The COVID-19 global health crisis may impact our planned operations and adversely impact our business.

● Our operations in foreign markets could cause us to incur additional costs and risks associated with doing business internationally.

● Volatility in foreign exchange currency rates could adversely affect our financial condition and results of operations.

● Operations in the developing world could cause us to incur additional costs and risks associated with doing business in developing markets.

● Our business and reputation could be adversely affected if we or third parties with whom we have a relationship fail to comply with United States or foreign anti-corruption laws or regulations.

● If we are unable to maintain our corporate reputation, our business may suffer.

● Our operations could be impacted by natural disaster.

● Delays in collection, or non-collection, of our accounts receivable could adversely affect our business, financial position, results of operations and liquidity.

● Our patent application may not issue as a patent, which may have a material adverse effect on our ability to prevent others from commercially exploiting products similar to ours.

● We may not be able to prevent others from unauthorized use of our intellectual property, which could harm our business and competitive position.

● We currently have no issued patents and one patent pending. If any issued patent expires or is not maintained, our patent applications are not granted or our patent rights are contested, circumvented, invalidated or limited in scope, we may not be able to prevent others from selling, developing or exploiting competing technologies or products, which could have a material adverse effect on our business, prospects, financial condition, results of operations, and cash flows.

● We may become subject to claims that we or our employees have wrongfully used or disclosed alleged trade secrets.

● A significant portion of our intellectual property is not protected through patents or formal copyright registration.

● Confidentiality agreements may not adequately prevent disclosure of trade secrets and other proprietary information.

● We may need to defend ourselves against patent, copyright or trademark infringement claims.

● We are subject to extensive government regulation and changes thereto could have a material adverse effect on our business and financial condition, results of operations and cash flows.

● We may be unable to obtain, modify, or maintain the required regulatory permits, approvals and consents for our projects.

● We are subject to environmental laws and potential exposure to environmental liabilities.

● Changes in applicable laws and regulations can adversely affect our business, financial condition and results of operations.

● We do not yet have adequate internal controls and our failure to achieve and maintain effective internal control over financial reporting could have a material adverse effect on our business and share price.

● We will incur significant increased costs as a result of operating as a public company and our management will be required to devote substantial time to new compliance initiatives.

● Our ability to utilize our net operating loss carryforwards and certain other tax attributes may be limited.

● Our stock price has been volatile and may continue to be volatile.

● The price of our Common Stock may have little or no relationship to the historical bid prices of our Common Stock on the OTCQB.

● We have a substantial number of authorized common shares available for future issuance that could cause dilution of our stockholders' interest and adversely impact the rights of holders of our Common Stock.

● The holders of our Series B Convertible Non-Voting Preferred Stock and our Series C Convertible Preferred Stock are protected from dilution upon future issuances of our Common Stock.

● Dan Bates, our CEO and Chairman, owns 2,000,000 shares of Series C Convertible Preferred Stock of the Company, which shares of Series C Convertible Preferred Stock, vote together with our Common Stock on all stockholder matters, and vote one hundred Common Stock votes per share. If securities or industry analysts do not publish research or reports about our business, or if they downgrade their recommendations regarding our Common Stock, its trading price and volume could decline.

● Stockholders may face significant restrictions on the resale of our Common Stock due to federal regulations of penny stocks.

● Stockholders who hold unregistered shares of our Common Stock will be subject to resale restrictions pursuant to Rule 144.

● You will suffer immediate and substantial dilution in the net tangible book value of the Common Stock you purchase.

● Daniel Bates, our Chief Executive Officer, exercises majority voting control of the Company, which will limit your ability to influence corporate matters and could delay or prevent a change in corporate control.

● We rely on our management and if they were to leave our Company or not devote sufficient time to our company, our business plan could be adversely affected.

● Our Bylaws provide for indemnification of officers and directors at our expense.

● Anti-takeover provisions in our Bylaws, as well as provisions of Nevada law, might discourage, delay or prevent a change in control of our company or changes in our management.

● The JOBS Act allows us to postpone the date by which we must comply with certain laws and regulations and to reduce the amount of information provided in reports filed with the SEC.

● Our election not to opt out of the JOBS Act's extended accounting transition period may not make our financial statements easily comparable to other companies.

● Global, regional and U.S. economic and geopolitical conditions may have adverse effects on our business and financial condition.

● Many of our competitors and potential competitors may have substantially greater financial resources, customer support, technical and marketing resources, larger customer bases, longer operating histories, greater name recognition and more established relationships than we do.

● We may not maintain sufficient insurance coverage for the risks associated with our business operations.

● We do not anticipate paying any cash dividends.

● Any failure to protect our intellectual property rights could impair our ability to protect our technology and our brand.

● Failure to adequately manage our planned aggressive growth strategy may harm our business.

● If we make any acquisitions, they may disrupt or have a negative impact on our business.

● We rely on network and information systems and other technologies for our business activities and certain events, such as computer hackings, viruses or other destructive or disruptive software or activities may disrupt our operations.

● We may apply working capital and future funding to uses that ultimately do not improve our operating results or increase the value of our securities.

● Claims, litigation, government investigations, and other proceedings may adversely affect our business and results of operations.

● We may incur indebtedness in the future which could reduce our financial flexibility, increase interest expense and adversely impact our operations and our costs.

**<u>Implications of Being an Emerging Growth Company and a Smaller Reporting Company</u>**

As a company with less than $1.237 billion in revenue during our last fiscal year, we qualify as an "<u>emerging growth company</u>" under the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. As an emerging growth company, we have elected to take advantage of reduced reporting requirements and are relieved of certain other significant requirements that are otherwise generally applicable to public companies. As an emerging growth company:

● we may present only two years of audited financial statements and only t0wo years of related Management's Discussion and Analysis of Financial Condition and Results of Operations;

● we are exempt from the requirement to obtain an attestation and report from our auditors on whether we maintained effective internal control over financial reporting under the Sarbanes-Oxley Act;

● we are permitted to provide less extensive disclosure about our executive compensation arrangements; and

● we are not required to give our stockholders non-binding advisory votes on executive compensation or golden parachute arrangements.

If we successfully consummate an offering of our common stock on the Nasdaq Stock Market LLC ("Nasdaq"), we may take advantage of these provisions until the last day of the fiscal year following the fifth anniversary of such initial public offering) if we continue to be an emerging growth company thereafter. We will continue to remain an "emerging growth company" until the earliest of the following: (i) the last day of the fiscal year following the fifth anniversary of the date of the completion of our listing on Nasdaq; (ii) the last day of the fiscal year in which our total annual gross revenue is equal to or more than $1.07 billion; (iii) the date on which we have issued more than $1 billion in nonconvertible debt during the previous three years; or (iv) the date on which we are deemed to be a large accelerated filer under the rules of the United States Securities and Exchange Commission (the "SEC").

We are also a "smaller reporting company" as defined in the Securities Exchange Act of 1934, as amended, or the Exchange Act, and have elected to take advantage of certain of the scaled disclosures available to smaller reporting companies. To the extent that we continue to qualify as a "smaller reporting company" as such term is defined in Rule 12b-2 under the Exchange Act, after we cease to qualify as an emerging growth company, certain of the exemptions available to us as an "emerging growth company" may continue to be available to us as a "smaller reporting company," including exemption from compliance with the auditor attestation requirements pursuant to Sarbanes-Oxley Act and reduced disclosure about our executive compensation arrangements. We will continue to be a "smaller reporting company" until we have $250 million or more in public float (based on our Common Stock) measured as of the last business day of our most recently completed second fiscal quarter or, in the event we have no public float (based on our Common Stock) or a public float (based on our Common Stock) that is less than $700 million, annual revenues of $100 million or more during the most recently completed fiscal year.

We may choose to take advantage of some but not all of these reduced burdens. We have taken advantage of reduced reporting requirements in this prospectus. Accordingly, the information contained herein may be different from the information you receive from other public companies in which you hold stock. In addition, the JOBS Act provides that an emerging growth company may take advantage of an extended transition period for complying with new or revised accounting standards, delaying the adoption of these accounting standards until they would apply to private companies. We have elected to avail ourselves of the extended transition period for complying with new or revised financial accounting standards. As a result of the accounting standards election, we will not be subject to the same implementation timing for new or revised accounting standards as other public companies that are not emerging growth companies which may make comparison of our financials to those of other public companies more difficult.

**Recent Developments**

*Securities Purchase Agreement and Promissory Note*

On December 9, 2022, the Company entered into the Purchase Agreement with Coventry, pursuant to which the Company issued to Coventry on that date a Promissory Note (the "Note") in the principal amount of $300,000 (the "Principal Amount") in exchange for a purchase price of $255,000. The proceeds of the Note will be used by the Company for general working capital purposes. In addition, the Company issued to Coventry 15,500,000 shares of Common Stock (the "Commitment Stock"), of which 12,500,000 shares of Commitment Stock are to be returned to the Company upon the Company's filing of the registration statement of which this prospectus forms a part on or before 45 calendar days after the date of the Purchase Agreement.

Per the terms of the Purchase Agreement the Company issued 15,500,000 shares of its Common Stock to Coventry. If the Company files an initial Registration Statement within forty-five calendar days from the date of the Note, then Coventy, pursuant to its mandatory obligations thereunder, shall, within ten (10) calendar days thereafter, return to the Company's treasury for cancellation twelve million five hundred thousand (12,500,000) shares of Common Stock.

The Note bears "Guaranteed Interest" at the rate of 5% per annum for the 12 months from and after the date of issuance (notwithstanding the 11-month term of the Note for an aggregate Guaranteed Interest of fifteen thousand Dollars ($15,000.00), all of which Guaranteed Interest shall be deemed earned as of the date of the Note. The Principal Amount and the Guaranteed Interest are due and payable in seven equal monthly payments (each, a "Monthly Payment") of forty-five thousand and 00/100ths Dollars ($45,000.00), commencing on May 6, 2023 and continuing on the 6<sup>th</sup> day of each month thereafter (each, a "Monthly Payment Date") until paid in full not later than November 6, 2023 (the "Maturity Date"), or such earlier date as the Note is required or permitted to be repaid as provided therein, and to pay such other interest to Coventry on the aggregate unconverted and then outstanding Principal Amount of the Note in accordance with the provisions thereof.

*<u>Project Finance Arrangement</u>*

On November 4, 2022, we entered into a consulting agreement (the "Agreement") with Edge Management, LLC ("Edge"), a services firm based in New York City. Under the Agreement, Edge will assist us to develop, structure and implement project finance strategies ("Project Finance") for our clean energy installations around the world. Financing strategies will be in amounts and upon terms acceptable to us, and may include, without limitation, common and preferred equity financing, mezzanine and other junior debt financing, and/or senior debt financing, including but not limited to one or more bond offerings ("Project Financing(s)"). Under the Agreement, Edge is engaged as our exclusive representative for Project Financing matters. Edge is entitled to receive a cash payment for any Project Financing involving as follows: 5% of the gross amount of the funding facilities (up to $500 million) of all forms approved by the lender ("Lender") introduced by Edge and or its affiliates and accepted by the Company on closing ("Closing"), 4% of the gross amount of the funding facilities (for the tranche of funding ranging from $500,000,001 to $1,000,000,000) approved by the Lender introduced by Edge and or its affiliates and accepted by the Company on Closing, and 3% of the subsequent gross amount ($1,000,000,001 and greater) of the funding facilities of all forms approved by the Lender introduced by Edge and/or its affiliates and accepted by the Company on Closing. In addition to the cash consulting fee, Edge shall be issued cashless, five-year warrants equal to: 2% (at a strike price to be mutually determined by the Parties for the first tranche of funding, up to $500 million), 1% (at a strike price to be mutually determined by the Parties for the tranche of funding ranging from $500,000,001 to $1,000,000,000), and 1% (at a strike price to be mutually determined by the Parties for any and all subsequent Debt Funding ($1,000,000,001 and greater)) of the outstanding common and preferred shares, warrants, options, and other forms of participation in the our Company on Closing.. The Agreement has an initial term of one (1) year and is cancellable by either party on ninety (90) days written notice. There is no guarantee that Edge will be successful in helping us obtain Project Financing.

**Corporate Information**

Our principal executive offices are located at 2711 N. Sepulveda Blvd., Suite #1051, Manhattan Beach, CA 90266. Our telephone number is (424) 835-1845. Our website address is https://www.cleanvisioncorp.com. The reference to our website is an inactive textual reference only. The information on, or that can be accessed through, our website is not part of this prospectus. Investors should not rely on any such information in deciding whether to purchase our Common Stock.

Clean Vision was initially incorporated in Nevada as China Vitup Health Care Holdings, Inc. on September 15, 2006. Pursuant to an Agreement and Plan of Merger and Reorganization dated September 29, 2006, Tubac Holdings, Inc., a Wyoming corporation and a parent of the Company, was merged with and into the Company on October 2, 2006, with the Company as the surviving entity. On May 5, 2015, the Company changed its name to Emergency Pest Services, Inc. Pursuant to a Plan of Exchange dated August 3, 2015, the Company acquired Emergency Pest Services, Inc., a Florida corporation. Pursuant to a Plan of Exchange dated September 21, 2017, Byzen Digital Inc., a Seychelles corporation, was merged with and into the Company on November 4, 2017, with the Company as the surviving entity. On May 30, 2018, the Company changed its name to Byzen Digital Inc. On May 19, 2020, we changed our focus to clean energy and sustainability when we acquired Clean-Seas. On March 12, 2021, the Company's corporate name was changed to Clean Vision Corporation to be aligned with our focus on clean energy and sustainability.

**SUMMARY OF The Offering**

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| | |
|:---|:---|
| ***Issuer*** | Clean Vision Corporation |
| **** |  |
| ***Shares of Common Stock offered by us*** |  |
| **** |  |
| ***Shares of Common Stock offered by the Selling Shareholder*** | 23,000,000 aggregate shares of Common Stock, comprised of (a) 3,000,000 shares of Common Stock issued to Coventry in connection with the Purchase Agreement and (b) up to 20,000,000 shares of Common Stock issuable to Coventry upon a default under the Note. |
| ***Shares of Common Stock outstanding before the Offering*** | 414,696,273 shares (1) |
| ***Shares of Common Stock outstanding after completion of this offering, assuming the sale of all shares offered hereby*** | 414,696,273 shares (1) |
| ***Offering Price*** | The Selling Shareholder may sell all or a portion of the shares being offered pursuant to this prospectus at fixed prices, at prevailing market prices at the time of sale, at varying prices, or at negotiated prices. |
| ***Use of proceeds*** | We will not receive any proceeds from the resale of the common stock by the Selling Shareholder. |
| ***Market for Common Stock*** | Our common stock is quoted on OTCQB under the symbol "CLNV" |
| ***Risk Factors*** | The purchase of our securities involves a high degree of risk. The securities offered in this prospectus are for investment purposes only. Please refer to the section entitled "Risk Factors" before making an investment in our Common Stock. |

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You should carefully read the "Risk Factors" section of this prospectus for a discussion of factors that you should consider before deciding to invest in our Common Stock.

(1) The number of shares of our Common Stock to be outstanding after this offering is based on the 414,696,273 shares of our Common Stock outstanding as of January 18, 2023, and excludes the following:

● 18,000,000 shares of Common Stock issuable upon the automatic conversion of notes in the principal amount of $360,000.

● 20,000,000 shares of Common Stock upon conversion of the 2,000,000 issued and outstanding Series B Convertible Non-Voting Preferred Stock, which shares automatically converted into 20,000,000 shares of Common Stock on January 1, 2023; however, the Company and holders of the Series B Convertible Non-Voting Preferred Stock are currently in a dispute and the Company's Transfer Agent has been instructed to not issue the shares of Common Stock until such dispute has been resolved. Accordingly, although the shares of Common Stock thereunder have not been formally issued as of January 23, 2023, the shares of Series B Non-Voting Convertible Preferred Stock are no longer outstanding.

● 20,000,000 shares of Common Stock upon conversion of the 2,000,000 issued and outstanding Series C Convertible Preferred Stock, which shares automatically converted on January 1, 2023, but such conversion has not been effectuated as of January 23, 2023.

● Up to 20,000,000 shares of Common Stock issuable to Coventry upon a default under the Note.

**SUMMARY FINANCIAL DATA**

The following table presents our summary historical financial data for the periods indicated. The summary historical financial data for the years ended December 31, 2021 and 2020 and the balance sheet data as of December 31, 2021 are derived from the audited financial statements included herein.

Historical results are included for illustrative and informational purposes only and are not necessarily indicative of results we expect in future periods, and results of interim periods are not necessarily indicative of results for the entire year. You should read the following summary financial data in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our financial statements and related notes appearing elsewhere in this prospectus.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Summary Statements of Operations Data** | **Year ended<br> December 31, 2021** | **Year ended<br> December 31, 2020** | **Nine Months Ended September 30, 2022** | **Nine Months Ended September 30, 2021** |
| Revenue, net | $— | $— | $— | $— |
| Cost of revenue |  |  |  |  |
| Gross profit |  |  |  |  |
| General and administrative | 373095 | 132368 | 824344 | 139783 |
| Payroll expense | 1360518 | 400000 | 623549 | 1071527 |
| Director fees | 18500 |  | 13500 |  |
| Professional fees | 413479 | 79827 | 258165 | 344697 |
| Consulting | 1955213 | 191500 | 1094768 | 1285319 |
| Interest expense | 1187033 | 522981 | 46256 | 1187033 |
| Loss on issuance of convertible debt |  | 2006944 |  |  |
| Debt issuance expense - warrants |  |  | 195483 |  |
| Loss on investment | 150000 |  |  |  |
| Change in derivative liabilities | 576573 | (1292687) |  | 46350 |
| Net loss from continuing operations | $(6034411) | $(2040933) | $(3056065) | $(4074709) |

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(1) See Note 2 to our audited financial statements appearing at the end of this prospectus for details on the calculation of basic and diluted net loss per share attributable to common stockholders for the years ended December 31, 2021 and 2020 and Note 2 to our unaudited condensed financial statements for details on the calculation of basic and diluted net loss per share attributable to common stockholders for the nine months ended September 30, 2022 and 2021.

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| | | | |
|:---|:---|:---|:---|
| | As of September 30, 2022 | As of September 30, 2022 | As of September 30, 2022 |
| <br>**Balance Sheet Data** |<br>**Actual** |<br>**Pro**<br>**Forma(1)** | **Pro Forma**<br>**As**<br>**Adjusted(2)** |
| Cash | $2829 | 255000 | $257829 |
| Total assets | 1136292 | 255000 | 1391292 |
| Total liabilities | 1315757 | (60000) | 1255757 |
| Working capital (deficit) | (384684) | 315000 | (69684) |
| Accumulated deficit | (16221150) | (45000) | (16266150) |
| Total stockholders' equity (deficit) | (1979465) | 360000 | (1619465) |

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(1) The pro forma balance sheet data reflects our receipt of $255,000 of net proceeds from the issuance of convertible notes in the principal amount of $300,000.

(2)The pro forma as adjusted balance sheet data in the table above reflects the adjustment described in footnote (1) above plus the conversion of the notes into 18,000,000 shares of Common Stock.

**RISK FACTORS**

*Any investment in our securities involves a high degree of risk. Investors should carefully consider the risks described below and all of the information contained in this prospectus before deciding whether to purchase our securities. Our business, financial condition or results of operations could be materially adversely affected by these risks if any of them actually occur. Our Common Stock is quoted on the OTCQB under the symbol CLNV. This market is extremely limited, and the prices quoted are not a reliable indication of the value of our Common Stock. As of the date of this prospectus, there has been very limited trading of shares of our Common Stock. If and when our Common Stock is traded, the trading price could decline due to any of these risks, and an investor may lose all or part of his or her investment. Some of these factors have affected our financial condition and operating results in the past or are currently affecting us. This prospectus also contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors, including the risks described below and elsewhere in this prospectus.*

 

**Risks Relating to Our Business and Industry**

***Our independent registered public accounting firm has expressed substantial doubt about our ability to continue as a going concern.***

We have insufficient cash on hand, a working capital deficit of $384,684 and incurred net losses from operations resulting in an accumulated deficit of $16,221,150, as of September 30, 2022. For the nine months ended September 30, 2022, we had a net loss of $3,056,065, while we had a net loss of $6,034,411 for the year ended December 31, 2021. As of the date of this prospectus, we anticipate that we will only be able to fund our current operations through March 31, 2023, based upon our current financial standing. As a result, our independent registered public accounting firm has issued a report on our financial statements for the period ended December 31, 2021, that includes an explanatory paragraph referring to our recurring operating losses and expressing substantial doubt in our ability to continue as a going concern. Our ability to continue as a going concern is dependent upon our ability to obtain additional equity financing or other capital, attain further operating efficiencies, reduce expenditures, and, ultimately, generate revenue. Our financial statements do not include any adjustments that might result from the outcome of this uncertainty. However, if adequate funds are not available to us when we need it, we will be required to curtail our operations which would, in turn, further raise substantial doubt about our ability to continue as a going concern. The doubt regarding our potential ability to continue as a going concern may adversely affect our ability to obtain new financing on reasonable terms or at all. Additionally, if we are unable to continue as a going concern, our stockholders may lose some or all of their investment in the Company.

***We have a history of operating losses; will likely continue to generate operating losses and we may not be able to achieve or sustain profitability.***

We are not profitable and have incurred an accumulated deficit of $16,221,150 as of September 30, 2022. For the nine months ended September 30, 2022, we had a net loss of $3,060,160, while we had a net loss of $6,034,411 for the year ended December 31, 2021. We expect to continue to incur losses for the foreseeable future, and these losses could increase as we continue to work to develop our business. We were previously engaged in the digital currency industries. In May 2020 we identified a new direction for the Company when we acquired Clean-Seas and we adopted a new business strategy focused on clean energy and converting waste to energy. We have yet to commence profitable operations in either of those businesses, therefore, the Company is continuing to incur operating losses. There can be no assurance that we will ever generate significant sales or achieve profitability. Accordingly, the extent of future losses and the time required to achieve profitability, if ever, cannot be predicted.

Even if we achieve profitability in the future by adopting these new business strategies, we may not be able to sustain profitability in subsequent periods.

We also expect to experience negative cash flows for the foreseeable future as we fund our operating losses. We may not be able to generate these revenues or achieve profitability in the future. Our failure to achieve or maintain profitability would likely negatively impact the value of our securities and financing activities.

***To date, we have not generated revenue from operations and we may not generate revenue from operations or that sources of revenue from financing will be available in the future.***

 ****

To date, we have not generated any revenue from operations and have financed our operations through the sale of Common Stock in our Regulation A offering and the proceeds from the sale of convertible notes. There can be no assurance that we will generate revenue from operations or that sources of revenue from financing will be available or if available will be available upon favorable terms. If we raise additional funds by issuing equity securities, our stockholders may experience dilution. Debt financing, if available, may involve agreements that include covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, making capital expenditures or declaring dividends. Any debt financing or additional equity that we may raise may contain terms, such as liquidation and other preferences, that are not favorable to us or our stockholders.

***We recently shifted to a new business line, are at an early stage of development of our current business line and we have a limited operating history, which makes it difficult to evaluate our business and prospects.***

In May 2020, we shifted our business focus from the digital currency industry to the clean energy and waste to energy industries. We have a limited operating history in our current business line, which can make it difficult for investors to evaluate our operations and prospects and may increase the risks associated with investment into our company. We have insufficient results for investors to use to identify historical trends. Investors should consider our prospects considering the risk, expenses and difficulties we will encounter as an early-stage company. We have yet to demonstrate our ability to overcome the risks frequently encountered in the clean energy and waste to energy industries and are still subject to many of the risks common to early stage companies, including the uncertainty as to our ability to implement our business plan, market acceptance of our proposed business and services, under-capitalization, cash shortages, limitations with respect to personnel, financing and other resources and uncertainty of our ability to generate revenues. There is no assurance that our activities will be successful or will result in any revenues or profit, and the likelihood of our success must be considered in light of the stage of our development. There can be no assurance that we will be able to consummate our business strategy and plans, or that financial, technological, market, or other limitations may force us to modify, alter, significantly delay, or significantly impede the implementation of such plans. Our business plan is subject to all business risks associated with new business enterprises, including the absence of any significant operating history upon which to evaluate an investment. The likelihood of our success must be considered in light of the problems, expenses, difficulties, complications and delays frequently encountered in connection with the formation of a new business, the development of new strategy and the competitive environment in which we will operate. It is possible that we will incur losses in the future. Our revenue and income potential is unproven and our business model is continually evolving. We are subject to the risks inherent to the operation of a new business enterprise and cannot assure you that we will be able to successfully address these risks. There is no guarantee that we will be profitable, that our business will generate sufficient revenue or that we will have adequate working capital to meet its obligations as they become due.

Additionally, our industry segments are relatively new, and are constantly evolving. As a result, there is a lack of available information with which to forecast industry trends or patterns. There is no assurance that sustainable industry trends or preferences will develop that will lead to predictable growth or earnings forecasts for individual companies or the industry segment as a whole. We are also unable to determine what impact future governmental regulation may have on trends and preferences or patterns within our industry segment.

***The equipment that is required for our operations is expensive and to date we have only acquired three pyrolysis units***

 ****

To date, we have acquired three pyrolysis units. In order to implement our business plan, we estimate that we will need to acquire several additional units. We estimate that each unit we will acquire will cost approximately $16 million and will take approximately 12-24 months to receive from time of order, therefore, we will be required to outlay significant funds prior to receipt of units. Pyrolysis equipment could cost as much as $100 million, but we intend to use our efforts to purchase such equipment at the best available prices..

***We require additional financing, and we may not be able to raise funds on favorable terms or at all.***

We anticipate requiring further funds in the future to grow our operations and complete our business plan. The sources of additional capital are expected to be from the sale of securities. Any future sale of share capital will result in dilution to existing stockholders. Furthermore, we may incur debt in the future, and may not have sufficient funds to repay our future indebtedness or may default on our future debts, jeopardizing our business viability.

We may not be able to borrow or raise additional capital in the future to meet our needs or to otherwise provide the capital necessary to expand our operations and business, which might result in the value of our securities decreasing in value or becoming worthless. Additional financing may not be available to us on terms that are acceptable, or at all. Consequently, we may not be able to proceed with our intended business plans. Obtaining additional financing contains risks, including:

● additional equity financing may not be available to us on satisfactory terms, or at all, and any equity we are able to issue could lead to dilution for current stockholders;

● loans or other debt instruments may have terms and/or conditions, such as interest rate, restrictive covenants and control or revocation provisions, which are not acceptable to management or our directors;

● the current environment in capital markets combined with our capital constraints may prevent us from being able to obtain adequate debt financing; and

● if we fail to obtain required additional financing to grow our business, we would need to delay or scale back our business plan, reduce our operating costs, or reduce our hea0dcount, each of which would have a material adverse effect on our business, future prospects, and financial condition.

Additionally, we may have difficulty obtaining additional funding, and we may have to accept terms that would adversely affect our stockholders. For example, the terms of any future financings may impose restrictions on our right to declare dividends or on the manner in which we conduct our business. Additionally, lending institutions or private investors may impose restrictions on a future decision by us to make capital expenditures, acquisitions or significant asset sales. If we are unable to raise additional funds, we may be forced to curtail or even abandon our business plan.

***Failure to adequately manage our planned aggressive growth strategy may harm our business or increase our risk of failure.***

For the foreseeable future, we intend to pursue an aggressive growth strategy for the expansion of our operations. Our ability to rapidly expand our operations will depend upon many factors, including our ability to work in a regulated environment, establish and maintain strategic relationships, and obtain adequate capital resources on acceptable terms. Any restrictions on our ability to expand may have a materially adverse effect on our business, results of operations, and financial condition. Accordingly, we may be unable to achieve our targets for growth, and our operations may not be successful or achieve anticipated operating results.

Additionally, our growth may place a significant strain on our managerial, administrative, operational, and financial resources and our infrastructure. Our future success will depend, in part, upon the ability of our senior management to manage growth effectively. This will require us to, among other things:

● implement additional management information systems;

● further develop our operating, administrative, legal, financial, and accounting systems and controls;

● hire additional personnel;

● develop additional levels of management within our company; and

● maintain close coordination among our operations, legal, finance, sales and marketing, and client service and support personnel.

Failure to accomplish any of these requirements could impair our ability to grow and expand our operations.

***We are a holding company without any operations of our own and depend on our subsidiaries for cash to meet our obligations.***

We are a holding company and conduct all of our operations through our subsidiaries. Accordingly, repayment of our indebtedness, including the senior notes, in part, is dependent on the generation of cash flow by our subsidiaries and their ability to make such cash available to us, by debt repayment or otherwise. Unless they are guarantors of the senior notes or other indebtedness, our subsidiaries do not have any obligation to pay amounts due on our indebtedness or to make funds available for that purpose. Our subsidiaries may not be able to, or may not be permitted to, make distributions to enable us to make payments in respect of our indebtedness. Each of our subsidiaries is a distinct legal entity, and, under certain circumstances, legal and contractual restrictions may limit our ability to obtain cash from our subsidiaries. In the event that we do not receive distributions from our subsidiaries, we may be unable to make required principal and interest payments on our indebtedness, including the senior notes.

***We have not generated sufficient revenue or cash flow to pay our convertible debt, and conversion of such debt into shares of Common Stock, which could cause significant dilution.***

As of January 18, 2023, we had outstanding convertible debt in the principal amount of $660,000. To date, we have not generated sufficient revenue or cash flows to pay the balances owed under these notes and provide sufficient working capital to run our business. The outstanding principal amount of the notes is convertible at any time and from time to time at the election of the holder after certain periods of time into shares of our Common Stock at discounts to the market price of our Common Stock. In addition, upon the occurrence and during the continuation of an Event of Default (as defined in the notes), the notes each will become immediately due and payable and we have agreed to pay additional default interest rates. We may not have sufficient cash resources or access to funding to repay such notes. Moreover, upon conversion of these notes, our current shareholders will suffer dilution, which could be significant.

***Servicing our debt requires a significant amount of cash. Our ability to generate sufficient cash to service our debt depends on many factors beyond our control.***

Our ability to make payments on and to refinance our debt, to fund planned capital expenditures and to maintain sufficient working capital depends on our ability to generate cash in the future. This, to a certain extent, is subject to general economic, financial, competitive, legislative, regulatory and other factors that are beyond our control. We cannot assure you that our business will generate sufficient cash flow from operations or from other sources in an amount sufficient to enable us to service our debt or to fund our other liquidity needs. If our cash flow and capital resources are insufficient to allow us to make scheduled payments on our debt, we may need to seek additional capital or restructure or refinance all or a portion of our debt on or before the maturity thereof, any of which could have a material adverse effect on our business, financial condition or results of operations. We cannot assure you that we will be able to refinance any of our debt on commercially reasonable terms or at all, or that the terms of that debt will allow any of the above alternative measures or that these measures would satisfy our scheduled debt service obligations. If we are unable to generate sufficient cash flow to repay or refinance our debt on favorable terms, it could significantly adversely affect our financial condition and the value of our outstanding debt. Our ability to restructure or refinance our debt will depend on the condition of the capital markets and our financial condition. Any refinancing of our debt could be at higher interest rates and may require us to comply with more onerous covenants, which could further restrict our business operations. There can be no assurance that we will be able to obtain any financing when needed.

***Covenant restrictions under our indebtedness may limit our ability to operate our business.***

Our outstanding convertible notes contain, and our future indebtedness agreements may, contain covenants that restrict our ability to finance future operations or capital needs or to engage in other business activities. The notes restrict our ability to:

● incur, assume or guarantee or suffer to exist any indebtedness for borrowed money of any kind, including, but not limited to, a guarantee, on or with respect to any of its property or assets now owned or hereafter acquired or any interest therein or any income or profits therefrom other than Permitted Indebtedness (as defined in the notes);

● repurchase capital stock;

● repay any Indebtedness (as defined in the notes) other than certain secured notes which are no longer outstanding or Permitted Indebtedness or make other restricted payments including, without limitation, paying dividends and making investments;

● create liens;

● sell or otherwise dispose of assets; and

● enter into transactions with affiliates.

In addition, the notes contain price protection anti-dilution provisions that will discourage financing at prices below the conversion price of the notes and will result in a decrease in the conversion price of the notes if we should issue securities below such price.

***Our future success depends on the acceptance of our products and services, which may not happen, and that our products and services will develop and grow.***

 ****

Our entire business is based on the assumption that the demand for our products and services will develop and grow. We cannot assure you that this assumption is or will be correct. Although the market for clean energy and waste-to-energy is large, the market for fuel converted from waste through pyrolysis is new and currently quite small. As is typical of a new and rapidly evolving industry, the demand for, and market acceptance of, "green-based" products and services is highly uncertain. In order to be successful, we must be able to keep our understandings in place with the suppliers of our products and educate consumers that our products perform as well as the products they currently use. We can provide no assurances that these efforts will be successful. Similarly, we cannot assure you that the demand for our products and services will develop as anticipated. If the market for our products fails to develop or develops more slowly than we anticipate, our business could be adversely affected.

***As public awareness of the benefits of fuel converted from waste grows, we expect competition to increase, which could make it more difficult for us to grow and achieve profitability.***

 ****

We expect competition to increase as awareness of the environmental advantages of converting waste into fuel increases. A rapid increase in competition could negatively affect our ability to develop a profitable client base. Many of our competitors and potential competitors may have substantially greater financial resources, customer support, technical and marketing resources, larger customer bases, longer operating histories, greater name recognition and more established relationships than we do. We cannot be sure that we will have the resources or expertise to compete successfully. Compared to us, our competitors may be able to:

● develop and expand their products and services more quickly;

● adapt faster to new or emerging technologies and changing customer needs and preferences;

● take advantage of acquisitions and other opportunities more readily;

● negotiate more favorable agreements with vendors and customers; and

● devote greater resources to marketing and selling their products or services.

Some of our competitors may also be able to increase their market share by providing customers with additional benefits or by reducing their prices. We cannot be sure that we will be able to match price reductions by our competitors. In addition, our competitors may form strategic relationships to better compete with us. These relationships may take the form of strategic investments, joint-marketing agreements, licenses or other contractual arrangements that could increase our competitors' ability to serve customers. If our competitors are successful in entering our market, our ability to grow or even sustain our current business could be adversely impacted.

**Disruptions in the political, regulatory, economic, and social conditions of the countries in which we conduct business could adversely affect our business or results of operations.**

Our business model envisions us operating in various countries across the world. Instability and unforeseen changes in any of the markets in which we conduct business, including economically and politically volatile areas or conflict or rumor of conflict could have an adverse effect on the demand for our services and products, our financial condition, or our results of operations. These factors include, but are not limited to, the following:

● nationalization and expropriation;

● potentially burdensome taxation;

● inflationary and recessionary markets, including capital and equity markets;

● civil unrest, labor issues, political instability, disease outbreaks, terrorist attacks, cyber terrorism, military activity, and wars;

● increasing attention to global climate change resulting in pressure from shareholders, financial institutions and/or financial markets;

● supply disruptions in key oil producing countries;

● the ability of OPEC+ to set and maintain production levels and pricing;

● trade restrictions, trade protection measures, price controls, or trade disputes;

● sanctions, such as prohibitions or restrictions by the United States against countries that are the targets of economic sanctions, or are designated as state sponsors of terrorism;

● foreign ownership restrictions;

● import or export licensing requirements;

● restrictions on operations, trade practices, trade partners, and investment decisions resulting from domestic and foreign laws, and regulations;

● regime changes;

● changes in, and the administration of, treaties, laws, and regulations including in response to public health issues;

● inability to repatriate income or capital;

● reductions in the availability of qualified personnel;

● foreign currency fluctuations or currency restrictions; and

● fluctuations in the interest rate component of forward foreign currency rates.

***We may apply working capital and future funding to uses that ultimately do not improve our operating results or increase the value of our securities.***

In general, we have complete discretion over the use of our working capital and any new investment capital we may obtain in the future. Because of the number and variety of factors that could determine our use of funds, our ultimate expenditure of funds (and their uses) may vary substantially from our current intended operating plan for such funds. Our management has broad discretion to use any or all of our available capital reserves. Our capital could be applied in ways that do not improve our operating results or otherwise increase the value of a stockholder's investment.

***We may incur indebtedness in the future which could reduce our financial flexibility, increase interest expense and adversely impact our operations and our costs.***

We may incur significant amounts of indebtedness in the future. Our level of indebtedness could affect our operations in several ways, including the following:

● a significant portion of our cash flows is required to be used to service our indebtedness;

● a high level of debt increases our vulnerability to general adverse economic and industry conditions;

● covenants contained in the agreements governing our outstanding indebtedness limit our ability to borrow additional funds and provide additional security interests, dispose of assets, pay dividends and make certain investments;

● a high level of debt may place us at a competitive disadvantage compared to our competitors that are less leveraged and, therefore, may be able to take advantage of opportunities that our indebtedness may prevent us from pursuing; and

● debt covenants may affect our flexibility in planning for, and reacting to, changes in the economy and in our industry.

A high level of indebtedness increases the risk that we may default on our debt obligations. We may not be able to generate sufficient cash flows to pay the principal or interest on our debt, and future working capital, borrowings or equity financing may not be available to pay or refinance such debt. If we do not have sufficient funds and are otherwise unable to arrange financing, we may have to sell significant assets or have a portion of our assets foreclosed upon which could have a material adverse effect on our business, financial condition and results of operations.

***We face risks relating to our reliance on subcontractors, suppliers, and our joint venture partners.***

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We generally rely on subcontractors, suppliers, and our joint venture partners for the performance of our contracts. Although we are not dependent upon any single supplier, certain geographic areas of our business or a project or group of projects may depend heavily on certain suppliers for raw materials or semi-finished goods.

● Any difficulty in engaging suitable subcontractors or acquiring equipment and materials could compromise our ability to generate a significant margin on a project or to complete such project within the allocated time frame. If subcontractors, suppliers or joint venture partners refuse to adhere to their contractual obligations with us, or are unable to do so due to a deterioration of their financial condition, we may be unable to find a suitable replacement at a comparable price, or at all. Moreover, the failure of one of our joint venture partners to perform their obligations in a timely and satisfactory manner could lead to additional obligations and costs being imposed on us as we may be obligated to assume our defaulting partner's obligations or compensate our customers. Additionally, our supply chain, subcontractors, suppliers, and our joint venture partners may be adversely affected by the COVID-19 pandemic, which has created global shipping and logistics challenges such as extended shipping lead times and pricing pressures on transportation and logistics.

● Any delay, failure to meet contractual obligations, or other event beyond our control or not foreseeable by us, that is attributable to a subcontractor, supplier or joint venture partner, could lead to delays in the overall progress of the project and/or generate significant extra costs. Even if we are entitled to make a claim for these extra costs against the defaulting supplier, subcontractor or joint venture partner, we may be unable to recover the entirety of these costs and this could materially adversely affect our business, financial condition or results of operations.

***New capital asset construction projects are subject to risks, including delays and cost overruns, which could have a material adverse effect on our financial condition, or results of operations.***

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From time to time, we may be required to carry out capital asset construction projects to maintain, upgrade, and develop our asset base, and such projects are subject to risks of delay and cost overruns that are inherent in any large construction project, resulting from numerous factors including, but not limited to, the following:

● shortages of key equipment, materials or skilled labor;

● delays in the delivery of ordered materials and equipment;

● and engineering issues;

● shipyard delays and performance issues; and

● failure to complete construction in time, or the inability to complete construction in accordance with design specifications, may result in the loss of revenue.

Additionally, capital expenditures for construction projects could materially exceed the initially planned investments, or there could be delays in putting such assets into operation.

***We face risks associated with obtaining raw materials.***

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With regard to our Clean-Seas subsidiary, even though we believe there to be an abundant supply of waste plastic, it is expected that there will be increased competition for these plastic resources, with the result that it could have an effect on our profitability that we do not foresee at this time.

***We do not believe that we will be able to negotiate worldwide exclusive rights to the technology we will need to acquire.***

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Our intent is to use existing pyrolysis technologies and to implement equipment that is available in the industrial marketplace. While we do not believe we will acquire worldwide rights, we expect that we will be able to obtain exclusive rights for specific territories. Accordingly, other competitors may license or otherwise obtain the use of the same technology for different locations.

***Project construction and development requires significant outlays of capital and is subject to numerous risks.***

The construction and development of our projects involves numerous risks. We are required to outlay significant capital for preliminary engineering, permitting, legal, and other expenses before we can determine whether a project is feasible or economically attractive. In order to successfully construct and develop our projects, we need to negotiate satisfactory engineering, procurement and construction agreements and feedstock supply agreements, receive all required governmental permits and approvals, obtain financing, and timely implement construction and development. Successful completion of a particular project may be adversely affected by numerous factors, including: (i) failure or delay in obtaining required government permits and approvals with acceptable conditions; (ii) unavailability of financing; (iii) uncertainties relating to land costs for projects; (iv) engineering problems; (v) construction delays and contractor performance shortfalls; (vi) work stoppages; (vii) cost overruns; (viii) failure of equipment and materials supply; (ix) adverse weather conditions; and (x) environmental and geological conditions. Our ability to become profitable in the future will not only depend on our ability to complete the construction and development of our projects but also to control our capital expenditures and costs. If we are unable to cost efficiently construct, develop and deploy our projects and provide our products and services, our business, prospects, financial condition, results of operations, and cash flows would be materially and adversely affected.

***Our business model will depend on performance by third parties under contractual arrangements.***

Our businesses will depend on third parties to, among other things, own and/or operate our projects, obtain necessary permits, purchase energy produced by our projects, and supply and deliver the goods and services necessary for the construction and operation of our projects. Further, the design, development and delivery of fuel cells is dependent upon performance by Kingsberry Fuel Cell Corporation pursuant to a Licensing Agreement.

The viability of our projects depends significantly upon the performance of these third parties, and others that we hope to enter into agreements within the near future, in accordance with long-term contracts. If these third parties cannot or will not perform their contractual obligations, whether due to their financial condition, force majeure events, changes in laws or regulations, or otherwise, we may not be able to secure alternate arrangements on substantially the same terms or at all for the goods and services provided under such contracts. In addition, some of the owners and operators of our projects may be smaller companies that are more likely to experience financial and operational difficulties than relatively larger, well-established companies, which could result in interruptions or delays in the operation of our projects. Any of the foregoing could have a material adverse effect on our business, financial condition and results of operations.

***Our operations in foreign markets could cause us to incur additional costs and risks associated with doing business internationally.***

We currently are conducting our pilot program in India and have current plans to commence operations in Morocco, France, Turkey, Sri Lanka, Puerto Rico. Our operations in markets outside the United States subject us to additional costs and risks, including:

● compliance with foreign requirements regulating the environment and the waste-to-energy market;

● difficulties in establishing, staffing and managing international operations;

● U.S. laws and regulations related to foreign operations, including tax and anti-corruption laws and regulations;

● differing intellectual property laws;

● differing contract laws that impact the enforceability of agreements among energy suppliers and energy consumers;

● imposition of special taxes;

● strong national and international competitors;

● currency exchange rate fluctuations; and

● political and economic instability in the countries in which we operate.

Our failure to manage the risks associated with international operations could limit the future growth of our business and adversely affect our business, financial condition and results of operations. We may be required to make a substantial financial investment and expend significant management efforts in connection with our international operations.

***Volatility in foreign exchange currency rates could adversely affect our financial condition and results of operations.***

We may have significant exposure to revenues, expenses and certain asset and liability balances denominated in currencies other than the U.S. Dollar. In addition, we conduct transactions in various currencies, which increases our exposure to fluctuations in foreign currency exchange rates relative to the U.S. Dollar. Fluctuations in the exchange rates of currencies relative to the U.S. Dollar may significantly affect our operating results and equity earnings. Our operating and equity earnings are adversely affected when the U.S. Dollar strengthens relative to other currencies and are positively affected when the U.S. Dollar weakens. In the future, a larger portion of our international revenue may be denominated in foreign currencies, which will subject us to additional risks associated with fluctuations in those foreign currencies. In addition, we may be unable to successfully hedge against any such fluctuations.

***Operations in the developing world could cause us to incur additional costs and risks associated with doing business in developing markets.***

We may seek to operate in the developing world, which would make us vulnerable to political, economic and social instability in such areas. Many areas of the developing world have experienced political, economic and social uncertainty in recent years, including an economic crisis characterized in some cases by increased inflation, high domestic interest rates, negative economic growth, reduced consumer purchasing power and high unemployment. Currently, many of the countries in the developing world where we have been or may be pursuing projects have been pursuing economic stabilization policies, including the encouragement of foreign trade and investment and other reforms, but there is no guarantee these policies will be successful or stay in place. Political, economic and social instability in these countries may have an adverse effect on our business, financial condition and results of operations.

***Our business and reputation could be adversely affected if we or third parties with whom we have a relationship fail to comply with United States or foreign anti-corruption laws or regulations.***

Our business and operations may be conducted in countries where corruption has historically penetrated the economy to a greater extent than in the United States. It is our policy to comply, and to require our local partners and those with whom we do business to comply, with all applicable anti-corruption laws, such as the U.S. Foreign Corrupt Practices Act, and with applicable local laws of the foreign countries in which we operate. Our business and reputation may be adversely affected if we or our local partners fail to comply with such laws.

***If we are unable to maintain our corporate reputation, our business may suffer.***

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Our success depends on our ability to maintain our corporate reputation. Adverse publicity surrounding any aspect of our business, or due to any failure on our part to comply with laws to which we are subject, could negatively affect our Company's overall reputation.

***Our operations could be impacted by natural disaster.***

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The occurrence of natural disasters in the markets in which we operate could disrupt our business operations and personnel located in the affected areas and, in the case of our corporate office, our ability to provide administrative support services, including billing and collection services.

For example, our operations could be rendered inoperable, temporarily or permanently, as a result of a fire or other natural disaster or by a terrorist or other attack on one of our facilities. The security and other measures we, and the property owners, take to protect against these risks may not be sufficient. Our insurance may not be adequate to cover the losses we suffer as a result of any of these events. In the event of an uninsured loss, including a loss in excess of insured limits, at any of the facilities in our network, such facilities may not be adequately repaired in a timely manner or at all and we may lose some or all of the future revenues anticipated to be derived from such facilities.

***Delays in collection, or non-collection, of our accounts receivable could adversely affect our business, financial position, results of operations and liquidity***.

Prompt billing and collection are important factors in our liquidity. Billing and collection of our accounts receivable are subject to the complex regulations. Our inability to bill and collect on a timely basis pursuant to these regulations and rules could subject us to payment delays that could have a material adverse effect on our business, financial position, results of operations and liquidity. It is possible that documentation support, system problems, or other payor issues may materially adversely affect our working capital, and our working capital management procedures may not successfully mitigate this risk.

**Intellectual Property Risks**

***Our patent application may not issue as a patent, which may have a material adverse effect on our ability to prevent others from commercially exploiting products similar to ours.***

We currently have one patent application pending, with number 63/371,838, that defines a system and method for securing, storing and converting the plastic waste of developed nations to produce environmentally friendly commodities and clean-fuels; reduce waste deposited into landfills; reduce incineration; mitigate the use of fossil fuel products; and assist developing nations in establishing waste recycling and development of collection infrastructure

There is no guarantee that our pending patent application will be approved. We cannot be certain that we are the first inventor of the subject matter to which we have filed a particular patent application, or that we are the first party to file such a patent application. If another party has filed a patent application for the same subject matter as we have, we may not be entitled to the protection sought by the patent application. Further, the scope of protection of issued patent claims is often difficult to determine. As a result, we cannot be certain that the patent application that we have file for our Plastic Conversion Network will issue, or that our issued patents will afford protection against competitors with similar technology. In addition, our competitors may design around our issued patents, which may adversely affect our business, prospects, financial condition, results of operations, and cash flows.

***We may not be able to prevent others from unauthorized use of our intellectual property, which could harm our business and competitive position.***

We may not be able to prevent others from unauthorized use of our intellectual property, which could harm our business and competitive position. We rely on a combination of patent, trade secret (including those in our know-how), and other intellectual property laws, as well as employee and third-party nondisclosure agreements, intellectual property licenses, and other contractual rights to establish and protect our rights in our technology and intellectual property. Our patent or trademark applications may not be granted, any patents or trademark registrations that may be issued to us may not sufficiently protect our intellectual property and any of our issued patents, trademark registrations or other intellectual property rights may be challenged by third parties. Any of these scenarios may result in limitations in the scope of our intellectual property or restrictions on our use of our intellectual property or may adversely affect the conduct of our business. Despite our efforts to protect our intellectual property rights, third parties may attempt to copy or otherwise obtain and use our intellectual property or seek court declarations that they do not infringe upon our intellectual property rights. Monitoring unauthorized use of our intellectual property is difficult and costly, and the steps we have taken or will take to prevent misappropriation may not be successful. From time to time, we may have to resort to litigation to enforce our intellectual property rights, which could result in substantial costs and diversion of our resources.

Patent, trademark, and trade secret laws vary significantly throughout the world. A number of foreign countries do not protect intellectual property rights to the same extent as do the laws of the United States. Therefore, our intellectual property rights may not be as strong or as easily enforced outside of the United States. Failure to adequately protect our intellectual property rights could result in our competitors offering similar products, potentially resulting in the loss of some of our competitive advantage and a decrease in our revenue which would adversely affect our business, prospects, financial condition, results of operations, and cash flows.

***If any issued patent expires or is not maintained, our patent applications are not granted or our patent rights are contested, circumvented, invalidated or limited in scope, we may not be able to prevent others from selling, developing or exploiting competing technologies or products, which could have a material adverse effect on our business, prospects, financial condition, results of operations, and cash flows.***

We cannot assure you that our pending application will issue as a patent. Even if our patent application issues into a patent, the patents may be contested, circumvented or invalidated in the future. In addition, the rights granted under any issued patent may not provide us with adequate protection or competitive advantages. The claims under any patent that issues from our patent application may not be broad enough to prevent others from developing technologies that are similar or that achieve results similar to ours. The intellectual property rights of others could also bar us from licensing and exploiting any patents that issue from our pending applications. Numerous patents and pending patent applications owned by others exist in the fields in which we have developed and are developing our technology. Many of these existing patents and patent applications might have priority over our patent applications and could subject our patents to invalidation or our patent applications to rejection. Finally, in addition to patents and patent applications that were filed before our patents and patent applications, any of our existing or future patents may also be challenged by others on the basis that they are invalid or unenforceable.

***We may in the future become, subject to claims that we or our employees have wrongfully used or disclosed alleged trade secrets of our employees' former employers.***

In the event we hire employees that were previously employed by other companies with similar or related technology, products or services, we may in the future become subject to claims that we or these employees have inadvertently or otherwise used or disclosed trade secrets or other proprietary information of former employers. Litigation may be necessary to defend against these claims. If we fail in defending such claims, we may be forced to pay monetary damages or be enjoined from using certain technology, products, services or knowledge. Even if we are successful in defending against these claims, litigation could result in substantial costs and demand on management resources.

***A significant portion of our intellectual property is not protected through patents or formal copyright registration. As a result, we do not have the full benefit of patent or copyright laws to prevent others from replicating our products, product candidates and brands.***

We have not protected certain of our intellectual property rights through patents or formal copyright registration, and we do not currently have any issued patents. There can be no assurance that any patent will issue or if issued that the patent will protect our intellectual property. As a result, we may not be able to protect our intellectual property and trade secrets or prevent others from independently developing substantially equivalent proprietary information and techniques or from otherwise gaining access to our intellectual property or trade secrets. In such an instance, our competitors could produce products that are nearly identical to ours resulting in us selling less products or generating less revenue from our sales.

***Confidentiality agreements with employees and others may not adequately prevent disclosure of trade secrets and other proprietary information.***

We rely on trade secrets, know-how and technology, which are not protected by patents, to protect certain of the intellectual property behind our Plastic Conversion Network. We have recently begun to use confidentiality agreements with our collaborators, employees, consultants, outside collaborators and other advisors to protect our proprietary technology and processes. We intend to use such agreements in the future, but these agreements may not effectively prevent disclosure of confidential information and may not provide an adequate remedy in the event of unauthorized disclosure of confidential information. In addition, others may independently discover trade secrets and proprietary information, and in such cases, we could not assert any trade secret rights against such party. Costly and time-consuming litigation could be necessary to enforce and determine the scope of our proprietary rights, and failure to obtain or maintain trade secret protection could adversely affect our competitive business position.

***We may need to defend ourselves against patent, copyright or trademark infringement claims, which may be time-consuming and would cause us to incur substantial costs.***

The status of the protection of our intellectual property is unsettled as we do not have any issued patents, registered trademarks or registered copyrights and other than the pending patent application for PCN, we have not applied for the same. Companies, organizations or individuals, including our competitors, may hold or obtain patents, trademarks or other proprietary rights that would prevent, limit or interfere with our ability to make, use, develop, sell or market our projects, products and services, which could make it more difficult for us to operate our business. In the future, we may receive communications from third parties that allege our products or components thereof are covered by their patents or trademarks or other intellectual property rights, we have not received any communication of this kind to date. Companies holding patents or other intellectual property rights may bring suits alleging infringement of such rights or otherwise assert their rights. If we are determined to have infringed upon a third-party's intellectual property rights, we may be required to do one or more of the following:

● cease making, using, selling or offering to sell processes, goods or services that incorporate or use the third-party intellectual property;

● pay substantial damages;

● seek a license from the holder of the infringed intellectual property right, which license may not be available on reasonable terms or at all;

● redesign our projects or other goods or services to avoid infringing the third-party intellectual property;

● establish and maintain alternative branding for our products and services; or

● find-third providers of any part or service that is the subject of the intellectual property claim.

In the event of a successful claim of infringement against us and our failure or inability to obtain a license to the infringed technology or other intellectual property right, our business, prospects, operating results and financial condition could be materially adversely affected. In addition, any litigation or claims, whether or not valid, could result in substantial costs, negative publicity and diversion of resources and management attention.

**Risks Relating to Governmental Regulation**

***We are subject to extensive governmental regulation. Any changes to the laws and regulations governing our business, or to the interpretation and enforcement of those laws or regulations, could have a material adverse effect on our business and financial condition, results of operations and cash flows.***

Currently there are no federal laws restricting or regulating pyrolysis, however the Environmental Protection Agency has released advance notice of proposed rulemaking on pyrolysis and gasification units (https://www.epa.gov/stationary-sources-air-pollution/advance-notice-proposed-rulemaking-pyrolysis-and-gasification). As of January 2022, twenty-one states have passed Advanced Recycling Legislation, which will regulate advanced recycling technologies such as pyrolysis as manufacturing operations rather than waste. Waste handling requirements are much stricter than manufacturing requirements. Michigan and Arizona, where Clean-Seas is establishing facilities have passed Advanced Recycling Legislation.

Federal and state laws and regulations also impact how we conduct our business, the services we offer and our interactions with customers, our employees and the public and impose certain requirements on us such as:

● licensure and certification;

● operating policies and procedures;

● emergency preparedness risk assessments and policies and procedures;

● policies and procedures regarding employee relations;

● addition of facilities and services;

● billing for services;

● requirements for utilization of services;

● reporting and maintaining records regarding adverse events

These laws and regulations, and their interpretations, are subject to change. Changes in existing laws and regulations, or their interpretations, or the enactment of new laws or regulations could have a material adverse effect on our business and financial condition, results of operations and cash flows by:

● increasing our administrative and other costs;

● increasing or decreasing mandated services;

● causing us to abandon business opportunities we might have otherwise pursued; or

● requiring us to implement additional or different programs and systems.

Due to the associated quantities of hazardous substances and waste, our industry is highly regulated and monitored by various environmental regulatory authorities such as the Environmental Protection Agency ("EPA"), federal or state analogs in other countries and the European Union, which promulgated the Industrial Emission Directive ("IED"). We intend to rely upon our local partners in each jurisdiction in which we operate, including India and Morocco and other jurisdictions to be established in the future, to ensure compliance with the local regulatory authorities. As such, we are subject to extensive international, national, state and local laws, regulations and directives pertaining to pollution and protection of the environment, health and safety, which govern, among other things, emissions to the air, discharges onto land or waters, the maintenance of safe conditions in the workplace, and the generation, handling, storage, transportation, treatment and disposal of waste materials. Some of these laws, regulations and directives are subject to varying and conflicting interpretations. Many of these laws, regulations and directives provide for substantial fines and potential criminal sanctions for violations and require the installation of costly pollution control equipment or operational changes to limit pollution emissions or reduce the likelihood or impact of hazardous substance releases, whether permitted or not. New laws, rules and regulations as well as changes to laws, rules and regulations may also affect us.

Local, state, federal and foreign governments have increasingly proposed or implemented restrictions on certain plastic-based products, including single-use plastics and plastic food packaging. Plastics have also faced increased public scrutiny due to negative coverage of plastic waste in the environment. Increased regulation on the use of plastics could cause reduced demand for our polyethylene products, which could adversely affect our business, operating results and financial condition.

***We may be unable to obtain, modify, or maintain the regulatory permits, approvals and consents required to construct and operate our projects.***

In order to construct and operate our projects, we must obtain and modify numerous environmental and other regulatory permits and certifications from federal, state and local agencies and authorities, including air permits and wastewater discharge permits. A number of these permits and certifications must be obtained prior to the start of a project, while other permits are required to be obtained at or prior to the time of first commercial operation or within prescribed time frames following commencement of commercial operations. Any failure to obtain or modify the necessary environmental and other regulatory permits and certifications on a timely basis could delay the commercial operation of our projects. In addition, once a permit or certification has been issued for a project, we must take steps to comply with each permit's or certification's conditions, which can include conditions as to timely commencement of the project. Failure to comply with these conditions could result in revocation or suspension of the permit or certification and/or the imposition of penalties or other consequences. We also may need to modify existing permits to reflect changes in project design or requirements, which could trigger a legal or regulatory review under a standard that may be more stringent than when the permits were originally granted.

Obtaining and modifying necessary permits and certifications is a time-consuming and expensive process, and we may not be able to obtain or modify them on a timely basis or at all. In the event that we fail to obtain or modify all necessary permits and certifications, we may be forced to delay construction or operation of a project or abandon the project altogether, which could have a material adverse effect on our business, financial condition and results of operations. In addition, we may be required to make capital expenditures on an ongoing basis to comply with increasingly stringent federal, state, provincial and local environmental, health and safety laws, regulations and permits.

***We are subject to environmental laws and potential exposure to environmental liabilities.***

Because of the nature of our projects, we are subject to various federal, state and local environmental laws and regulations that govern our operations, including the import, handling and disposal of non-hazardous and hazardous wastes, and emissions and discharges into the environment. Failure to comply with these laws and regulations could result in costs for corrective action, penalties or the imposition of other liabilities. We also are subject to laws and regulations that impose liability and clean-up responsibility for releases of hazardous substances into the environment. Under certain of these laws and regulations, a current or previous owner or operator of property may be liable for the costs of remediating the release or spill of hazardous substances or petroleum products on or from its property, without regard to whether the owner or operator knew of, or caused, the contamination, and such owner or operator may incur liability to third parties impacted by such contamination. Failure to comply with applicable environmental laws and regulations and the imposition of environmental liability could have a material adverse effect on our business, financial condition and results of operations.

***Changes in applicable laws and regulations can adversely affect our business, financial condition and results of operations.***

There has been substantial debate recently in the United States and abroad in the context of environmental and energy policies affecting climate change, the outcome of which could have a positive or negative influence on our existing business and our prospects for growing our business. Governmental entities that regulate our operations or projects may adopt new laws, regulations or policies, or amend or change the interpretation of existing laws, regulations or policies, at any time. We have no control over these changes, which could potentially have an adverse effect on our business, prospects, financial condition and results of operations.

**Risks Relating to Tax and Accounting**

***We do not yet have adequate internal controls, and we cannot provide assurances that these weaknesses will be effectively remediated or that additional material weaknesses will not occur in the future.***

As a public company, we will be subject to the reporting requirements of the Exchange Act, and the Sarbanes-Oxley Act. We expect that the requirements of these rules and regulations will increase our legal, accounting and financial compliance costs, make some activities more difficult, time consuming and costly, and place significant strain on our personnel, systems and resources.

The Sarbanes-Oxley Act requires, among other things, that we maintain effective disclosure controls and procedures, and internal control over financial reporting.

We do not yet have effective disclosure controls and procedures, or internal controls over all aspects of our financial reporting. We are continuing to develop and refine our disclosure controls and other procedures that are designed to ensure that information required to be disclosed by us in the reports that we will file with the SEC is recorded, processed, summarized and reported within the time periods specified in SEC rules and in accordance with GAAP. Our management is responsible for establishing and maintaining adequate internal control over our financial reporting, as defined in Rule 13a-15(f) under the Exchange Act.

We will be required to expend time and resources to further improve our internal controls over financial reporting, including by expanding our staff. However, we cannot assure you that our internal control over financial reporting, as modified, will enable us to identify or avoid material weaknesses in the future.

We have not yet retained sufficient staff or engaged sufficient outside consultants with appropriate experience in GAAP presentation, especially of complex instruments, to devise and implement effective disclosure controls and procedures, or internal controls. We will be required to expend time and resources hiring and engaging additional staff and outside consultants with the appropriate experience to remedy these weaknesses. We cannot assure you that management will be successful in locating and retaining appropriate candidates; that newly engaged staff or outside consultants will be successful in remedying material weaknesses thus far identified or identifying material weaknesses in the future; or that appropriate candidates will be located and retained prior to these deficiencies resulting in material and adverse effects on our business.

Our current controls and any new controls that we develop may become inadequate because of changes in conditions in our business, including increased complexity resulting from our international expansion. Further, weaknesses in our disclosure controls or our internal control over financial reporting may be discovered in the future. Any failure to develop or maintain effective controls, or any difficulties encountered in their implementation or improvement, could harm our operating results or cause us to fail to meet our reporting obligations and may result in a restatement of our financial statements for prior periods. Any failure to implement and maintain effective internal control over financial reporting could also adversely affect the results of management reports and independent registered public accounting firm audits of our internal control over financial reporting that we will eventually be required to include in our periodic reports that we file with the SEC. Ineffective disclosure controls and procedures, and internal control over financial reporting could also cause investors to lose confidence in our reported financial and other information, which would likely have a negative effect on the market price of our Common Stock.

Our independent registered public accounting firm is not required to audit the effectiveness of our internal control over financial reporting until after we are no longer an "emerging growth company" as defined in the JOBS Act. At such time, our independent registered public accounting firm may issue a report that is adverse in the event it is not satisfied with the level at which our internal control over financial reporting is documented, designed or operating. Any failure to maintain effective disclosure controls and internal control over financial reporting could have a material and adverse effect on our business and operating results and cause a decline in the market price of our Common Stock.

***Our failure to achieve and maintain effective internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act as a public company could have a material adverse effect on our business and share price****.*

Prior to the completion of this offering, we have not had to independently comply with Section 404(a) of the Sarbanes-Oxley Act. Section 404(a) of the Sarbanes-Oxley Act requires annual management assessments of the effectiveness of our internal control over financial reporting, starting with the second annual report that we would expect to file with the SEC. Additionally, once we are no longer an emerging growth company, as defined by the JOBS Act, our independent registered public accounting firm will be required pursuant to Section 404(b) of the Sarbanes-Oxley Act to attest to the effectiveness of our internal control over financial reporting on an annual basis. The rules governing the standards that must be met for our management to assess our internal control over financial reporting are complex and require significant documentation, testing, and possible remediation.

Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with generally accepted accounting principles. We are in the process of reviewing, documenting, and testing our internal control over financial reporting, but we are not currently in compliance with, and we cannot be certain when we will be able to implement, the requirements of Section 404(a). We may encounter problems or delays in implementing any changes necessary to make a favorable assessment of our internal control over financial reporting. In addition, we may encounter problems or delays in completing the implementation of any public accounting firm after we cease to be an emerging growth company. If we cannot favorably assess the effectiveness of our internal control over financial reporting, or if our independent registered public accounting firm is unable to provide an unqualified attestation report on our internal controls after we cease to be an emerging growth company, investors could lose confidence in our financial information and the price of our Common Stock could decline.

Additionally, the existence of any material weakness or significant deficiency requires management to devote significant time and incur significant expense to remediate any such material weaknesses or significant deficiencies and management may not be able to remediate any such material weaknesses or significant deficiencies in a timely manner. The existence of any material weakness in our internal control over financial reporting could also result in errors in our financial statements that could require us to restate our financial statements, cause us to fail to meet our reporting obligations, and cause stockholders to lose confidence in our reported financial information, all of which could materially and adversely affect our business and share price.

***We incur significant increased costs as a result of operating as a public company and our management will be required to devote substantial time to new compliance initiatives.***

As a public company, we incur significant legal, accounting and other expenses that we did not incur as a private company. The Sarbanes-Oxley Act, as well as rules subsequently implemented by the SEC and Nasdaq, has imposed various requirements on public companies. Our management and other personnel will need to devote a substantial amount of time to these compliance initiatives. Moreover, we anticipate that compliance with these rules and regulations will increase our legal, accounting and financial compliance costs substantially. A number of those requirements will require us to carry out activities we have not done previously. For example, we will create new board committees and adopt new internal controls and disclosure controls and procedures. In addition, these rules and regulations may make our activities related to legal, accounting and financial compliance more difficult, time-consuming and costly and may also place undue strain on our personnel, systems and resources. Furthermore, if we identify any issues in complying with those requirements (for example, if we or our auditors identify a material weakness or significant deficiency in our internal control over financial reporting), we could incur additional costs rectifying those issues, and the existence of those issues could adversely affect us, our reputation or investor perceptions of us. If these requirements divert the attention of our management and personnel from other business concerns, they could have a material adverse effect on our business, financial condition and results of operations. For example, we expect these rules and regulations to make it more difficult and more expensive for us to obtain director and officer liability insurance, and we may be required to incur substantial costs to maintain our current levels of such coverage. These increased costs will require us to divert a significant amount of money that we could otherwise use to expand our business and achieve our strategic objectives. Advocacy efforts by stockholders and third parties may also prompt additional changes in governance and reporting requirements, which could further increase our costs.

***Our ability to utilize our net operating loss carryforwards and certain other tax attributes may be limited.***

Under Section 382 of the Internal Revenue Code of 1986, as amended, if a corporation undergoes an "<u>ownership change,</u>" the corporation's ability to use its pre-change net operating loss carryforwards and other pre-change tax attributes to offset its post-change income may be limited. In general, an "<u>ownership change</u>" occurs if the aggregate stock ownership of one or more stockholders or groups of stockholders who own at least 5% of a corporation's stock increase their ownership by more than 50 percentage points over their lowest ownership percentage within a rolling three-year period. Similar rules may apply under state tax laws. If it is determined that we have in the past experienced any ownership changes, or if we experience ownership changes as a result of future transactions in our stock, our ability to use our net operating loss carryforwards and other tax attributes to offset U.S. federal taxable income may be subject to limitations, which could potentially result in increased future tax liability to us.

**Risks Relating to our Common Stock and Other Securities**

***Our stock price has been volatile and may continue to be volatile and your investment in our Common Stock could suffer a decline in value.***

The dollar volume trading in our stock is low and we cannot assure you that any significant market will develop. As a result, any reported prices may not reflect the price at which you would be able to sell shares if you want to sell any shares you own or buy shares if you wish to buy shares. Further, stocks with a low trading volume may be more subject to manipulation than a stock that has a significant public float. The price of our stock may fluctuate significantly in response to a number of factors, many of which are beyond our control. These factors include, but are not limited to, the following, in addition to the risks described above and general market and economic conditions:

● our low stock price, which may result in a modest dollar purchase or sale of our Common Stock having a disproportionately large effect on the stock price;

● the market's perception as to our ability to generate positive cash flow or earnings;

● changes in our or securities analysts' estimate of our financial performance;

● our ability or perceived ability to obtain necessary financing for our operations;

● the anticipated or actual results of our operations;

● concern about our lack of internal controls;

● any discrepancy between anticipated or projected results and actual results of our operations;

● actions by third parties to either sell or purchase stock in quantities which would have a significant effect on our stock price;

● other factors not within our control;

● general economic, industry and market conditions; and

● other events or factors, including those resulting from such events, or the prospect of such events, including war, terrorism and other international conflicts, such as the recent Russian invasion of Ukraine as well as continued and any new sanctions against Russia by, among others, the E.U., the U.S., and the U.K, which restrict a wide range of trade and financial dealings with Russia and Russian persons, public health issues including health epidemics or pandemics, such as the outbreak of the novel coronavirus (COVID-19), and natural disasters such as fire, hurricanes, earthquakes, tornados or other adverse weather and climate conditions, whether occurring in the United States or elsewhere, could disrupt our operations, disrupt the operations of our suppliers or result in political or economic instability.

In addition, the securities markets have from time-to-time experienced significant price and volume fluctuations that are unrelated to the actual or expected operating performance and financial condition of particular companies. These market fluctuations may also materially and adversely affect the market price of our Common Stock. As a result, you may be unable to resell your shares of our Common Stock at a desired price and any volatility in our market price, including any stock run-up, may be unrelated to our actual or expected operating performance and financial condition or prospects, making it difficult for prospective investors to assess the rapidly changing value of our Common Stock.

***The price of our Common Stock may have little or no relationship to the historical bid prices of our Common Stock on the OTCQB.***

There has been no public market for our capital stock other than the OTCQB. Given the limited history of sales, among other factors, this information may have little or no relation to broader market demand for our Common Stock and thus the price of our Common Stock. As a result, you should not rely on these historical sales prices as they may differ materially from the subsequent prices of our Common Stock.

***We have a substantial number of authorized shares of Common Stock available for future issuance that could cause dilution of our stockholders' interest and adversely impact the rights of holders of our Common Stock.***

We have a total of 2,000,000,000 shares of Common Stock authorized for issuance and up to 10,000,000 shares of preferred stock with the rights, preferences and privileges that our Board may determine from time to time. As of September 30, 2022, we had 354,385,392 shares of Common Stock issued and outstanding. Of the 10,000,000 shares of authorized preferred stock of the Company, 1,000,000 shares are designated as Series A Convertible Preferred Stock, of which none is outstanding; 2,000,000 shares are designated as Series A Redeemable Preferred Stock, of which none is outstanding; 2,000,000 shares are designated as Series B Convertible Non-Voting Preferred Stock, of which 2,000,000 were outstanding, which convert to 20,000,000 shares of Common Stock in certain circumstances; and 2,000,000 shares are designated as Series C Convertible Preferred Stock, of which 2,000,000 shares were outstanding, which convert to 20,000,000 shares of Common Stock in certain circumstances, each as of January 18, 2023.

The shares of Series B Convertible Non-Voting Preferred Stock automatically converted into 20,000,000 shares of Common Stock on January 1, 2023; however, the Company and holders of the Series B Convertible Non-Voting Preferred Stock are currently in a dispute and the Company's Transfer Agent has been instructed not to issue the shares of Common Stock until the dispute has been resolved. Accordingly, although as of January 23, 2023, the shares of Series B Convertible Non-Voting Preferred Stock are no longer outstanding, the shares of Common Stock thereunder have not been issued as of January 23, 2023.

The shares of Series C Convertible Preferred Stock, held by our CEO Daniel Bates, automatically converted into 20,000,000 shares of Common Stock on January 1, 2023; however as of January 23, 2023 such conversion has not been effectuated.

We may seek financing that could result in the issuance of additional shares of our capital stock and/or rights to acquire additional shares of our capital stock. We may also make acquisitions that result in issuances of additional shares of our capital stock. Those additional issuances of capital stock would result in a significant reduction of your percentage interest in us. Furthermore, the book value per share of our Common Stock may be reduced. This reduction would occur if the exercise price of any issued warrants, the conversion price of any convertible notes is lower than the book value per share of our Common Stock at the time of such exercise or conversion.

The addition of a substantial number of shares of our Common Stock into the market or by the registration of any of our other securities under the Securities Act, may significantly and negatively affect the prevailing market price for our Common Stock. The future sales of shares of our Common Stock issuable upon the exercise of outstanding warrants or convertible securities may have a depressive effect on the market price of our Common Stock, as such warrants would be more likely to be exercised at a time when the price of our Common Stock is greater than the exercise price.

***The holders of our Series B Convertible Non-Voting Preferred Stock and our Series C Convertible Preferred Stock are protected from dilution upon future issuances of our Common Stock.***

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The Certificate of Designations for our Series B Convertible Non-Voting Preferred Stock and our Series C Convertible Preferred Stock contain provisions protecting the holders of such shares from dilution upon future issuances of our Common Stock such that for a period of two years after such shares of preferred stock convert to Common Stock they will maintain a twenty percent ownership interest in the common and preferred stock on a fully diluted basis. Accordingly, any future issuances of stock during such two- year period will result in dilution to all stockholders other than the holders of our Series B Convertible Non-Voting Preferred Stock and our Series C Convertible Preferred Stock. Such provisions may prevent future changes of control that the Board believes are in our best interest and allow the holders of our Series B Convertible Non-Voting Preferred Stock and our Series C Convertible Preferred Stock to influence our management and affairs and control the outcome of matters submitted to our stockholders for approval, including the election of directors and any sale, merger, consolidation, or sale of all or substantially all of our assets.

***If securities or industry analysts do not publish research or reports about our business, or if they downgrade their recommendations regarding our Common Stock, its trading price and volume could decline.***

We expect the trading market for our Common Stock to be influenced by the research and reports that industry or securities analysts publish about us, our business or our industry. We do not currently have and may never obtain research coverage by securities and industry analysts. If no securities or industry analysts commence coverage of our company, the trading price for our stock may be negatively impacted. If we obtain securities or industry analyst coverage and if one or more of these analysts cease coverage of our company or fail to publish reports on us regularly, we could lose visibility in the financial markets, which in turn could cause our stock price or trading volume to decline and our Common Stock to be less liquid. Moreover, if one or more of the analysts who cover us downgrades our stock or publishes inaccurate or unfavorable research about our business, or if our results of operations do not meet their expectations, our stock price could decline.

***We do not anticipate paying any cash dividends.***

We presently do not anticipate that we will pay any dividends on any of our capital stock in the foreseeable future. The payment of dividends, if any, would be contingent upon our revenues and earnings, if any, capital requirements, and general financial condition. The payment of any dividends will be within the discretion of our Board of Directors. We presently intend to retain all earnings, if any, to implement our business plan; accordingly, we do not anticipate the declaration of any dividends in the foreseeable future.

***Stockholders may face significant restrictions on the resale of our Common Stock due to federal regulations of penny stocks.***

Our Common Stock is subject to the provisions of Section 15(g) and Rule 15g-9 of the Securities Exchange Act, commonly referred to as the "penny stock rule." Section 15(g) sets forth certain requirements for transactions in penny stock, and Rule 15g-9(d) incorporates the definition of "penny stock" that is found in Rule 3a51-1 of the Exchange Act. The SEC generally defines a penny stock to be any equity security that has a market price less than $5.00 per share, subject to certain exceptions. We are subject to the SEC's penny stock rules.

Since our Common Stock is deemed to be penny stock, trading in the shares of our Common Stock is subject to additional sales practice requirements on broker-dealers who sell penny stock to persons other than established customers and accredited investors. "Accredited investors" are persons with assets in excess of $1,000,000 (excluding the value of such person's primary residence) or annual income exceeding $200,000 or $300,000 together with their spouse. For transactions covered by these rules, broker-dealers must make a special suitability determination for the purchase of such security and must have the purchaser's written consent to the transaction prior to the purchase. Additionally, for any transaction involving a penny stock, unless exempt, the rules require the delivery, prior to the first transaction of a risk disclosure document, prepared by the SEC, relating to the penny stock market. A broker-dealer also must disclose the commissions payable to both the broker-dealer and the registered representative and current quotations for the securities. Finally, monthly statements must be sent disclosing recent price information for the penny stocks held in an account and information to the limited market in penny stocks.

Consequently, these rules may restrict the ability of broker-dealer to trade and/or maintain a market in our Common Stock and may affect the ability of our stockholders to sell their shares of Common Stock.

There can be no assurance that our shares of Common Stock will qualify for exemption from the Penny Stock Rule. In any event, even if our Common Stock was exempt from the Penny Stock Rule, we would remain subject to Section 15(b)(6) of the Exchange Act, which gives the SEC the authority to restrict any person from participating in a distribution of penny stock if the SEC finds that such a restriction would be in the public interest.

***Stockholders who hold unregistered shares of our Common Stock will be subject to resale restrictions pursuant to Rule 144, if and when available, due to the fact that we are deemed to be a former "shell company".***

Pursuant to Rule 144 ("Rule 144") of the Securities Act, a "shell company" is defined as a company that has no or nominal operations; and, either no or nominal assets; assets consisting solely of cash and cash equivalents; or assets consisting of any amount of cash and cash equivalents and nominal other assets. While we do not believe that we are currently a "shell company", we were previously a "shell company" and as such are deemed to be a former "shell company" pursuant to Rule 144, and as such, sales of our securities pursuant to Rule 144 may not be able to be made if we are not subject to Section 13 or 15(d) of the Exchange Act, and have filed all of our required periodic reports for at least the previous one year period prior to any sale pursuant to Rule 144; and a period of at least twelve months has elapsed from the date "Form 10 information" has been filed with the Commission reflecting our status that we are not currently a shell company". Our Form 10 that was originally filed on December 21, 2021 was withdrawn by the Company on February 14, 2022 before becoming effective. Our status as a former "shell company" could prevent us from raising additional funds, engaging consultants, and using our securities to pay for any acquisitions in the future (although none are currently planned).

**Risks Relating to Management and Directors**

***Dan Bates, our Chief Executive Officer, exercises majority voting control of the Company, which will limit your ability to influence corporate matters and could delay or prevent a change in corporate control.***

Dan Bates, our Chief Executive Officer, holds 2,000,000 shares of Series C Convertible Preferred Stock of the Company, which shares of Series C Convertible Preferred Stock vote together with our Common Stock on all stockholder matters, and have one hundred Common Stock votes per share. As a result, Mr. Bates will be able to influence our management and affairs and control the outcome of matters submitted to our stockholders for approval, including the election of directors and any sale, merger, consolidation, or sale of all or substantially all of our assets.

Mr. Bates may have interests that are different from those of investors in this offering and the concentration of voting power among Mr. Bates may have an adverse effect on the price of our Common Stock.

In addition, this concentration of ownership might adversely affect the market price of our Common Stock by: (1) delaying, deferring or preventing a change of control of our Company; (2) impeding a merger, consolidation, takeover or other business combination involving our Company; or (3) discouraging a potential acquirer from making a tender offer or otherwise attempting to obtain control of our Company. Due to the ownership of the 2,000,000 shares of Series C Convertible Preferred Stock by Mr. Bates, investors may find it difficult to replace Mr. Bates (and such persons as he may appoint from time to time) as a member of our management if they disagree with the way our business is being operated. Additionally, the interests of Mr. Bates may differ from the interests of the other stockholders and thus result in corporate decisions that are adverse to other stockholders.

***We rely on our management and if they were to leave our company or not devote sufficient time to our company, our business plan could be adversely affected.***

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Our success is heavily dependent upon the continued active participation of Dan Bates, our current Chief Executive Officer, as well as other key personnel and consultants which we plan to hire. Loss of the services of our top management could have a material adverse effect upon the Company's business, financial condition or results of operations. Further, our success and achievement of our growth plans depend on our ability to recruit, hire, train and retain other highly qualified scientific, technical, and managerial personnel. Competition for qualified employees and consultants among companies in the applicable industries is intense, and the loss of any of such persons, or an inability to attract, retain and motivate any additional highly skilled employees and consultants required for the initiation and expansion of our activities, could have a materially adverse effect on it. Subject to available capital, we intend to compensate its management with industry standard compensation packages including the granting of stock options. The inability to attract and retain the necessary personnel, consultants and advisors could have a material adverse effect on our business, financial condition or results of operations. We do not maintain key person life insurance policies on our executive officers.

***Christopher Percy, our former President, Treasurer and Chief Commercial Officer, does not reside in the United States, which may pose difficulties in effecting service of process, enforcing judgments, or commencing litigation to enforce liabilities.***

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On September 16, 2022, the Company commenced a lawsuit in the District Court of Clark County, Nevada (the "Court") against a former officer and current director of the Company, Mr. Christopher Percy, alleging, among other things, breach of fiduciary duty, conversion, and business disparagement in connection with a control dispute instigated by Mr. Percy following his termination from the Company. On November 2, 2022, the Court granted the Company's request for a preliminary injunction against Mr. Percy, which ordered, among other things, that Mr. Percy shall not take any action on behalf of the Company unless expressly authorized by the Company's Board of Directors. The Company's lawsuit against Mr. Percy is ongoing and the Company continues to operate normally. Mr. Percy is currently serving as a member of the Company's Board of Directors.

Mr. Percy, resides in the United Kingdom. As a result, shareholders in the United States may face difficulties in effecting service of process against Mr. Percy, enforcing judgments obtained in United States courts or foreign courts based on the civil liability provisions of the United States federal securities laws against him, and bringing an original action in a foreign court to enforce liabilities based on the United States federal securities laws against him.

**Risks Associated with Our Governing Documents and Nevada Law**

***Our Bylaws provide for indemnification of officers and directors at our expense, which may result in a major cost to us and hurt the interests of our stockholders because corporate resources may be expended for the benefit of officers or directors.***

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Our Bylaws provide that any person who was or is a party or was or is threatened to be made a party to any threatened, pending, or completed action, suit, or proceeding, whether civil, criminal, administrative, or investigative (whether or not by or in the right of the Company) by reason of the fact that he is or was a director, officer, employee, or agent of the Company, or is or was serving at the request of the Company as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise (including an employee benefit plan), shall be entitled to be indemnified by the Company to the full extent then permitted by the laws of the State of Nevada against expenses of suit, litigation or other proceedings which is specifically permissible under applicable law, and amounts paid in settlement incurred by him in connection with such action, suit, or proceeding and, if so requested, the Company shall advance any and all such expenses to the person indemnified. These indemnification obligations may result in a major cost to us and hurt the interests of our stockholders because corporate resources may be expended for the benefit of officers or directors.

We have been advised that, in the opinion of the SEC, indemnification for liabilities arising under federal securities laws is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification for liabilities arising under federal securities laws, other than the payment by us of expenses incurred or paid by a director, officer or controlling person in the successful defense of any action, suit or proceeding, is asserted by a director, officer or controlling person in connection with our activities, we will (unless in the opinion of our counsel, the matter has been settled by controlling precedent) submit to a court of appropriate jurisdiction, the question whether indemnification by us is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue. The legal process relating to this matter if it were to occur is likely to be very costly and may result in us receiving negative publicity, either of which factors is likely to materially reduce the market and price for our shares.

***Anti-takeover provisions in our Bylaws, as well as provisions of Nevada law, might discourage, delay or prevent a change in control of our company or changes in our management and, therefore, depress the trading price of our Common Stock.***

Our Bylaws and Nevada law contain provisions that may discourage, delay or prevent a merger, acquisition or other change in control that stockholders may consider favorable, including transactions in which you might otherwise receive a premium for your shares of our Common Stock. These provisions may also prevent or delay attempts by our stockholders to replace or remove our management. Our corporate governance documents include provisions:

● authorizing blank check preferred stock, which could be issued with voting, liquidation, dividend and other rights superior to our Common Stock; and

● limiting the liability of, and providing indemnification to, our directors and officers.

The existence of the foregoing provisions and anti-takeover measures could limit the price that investors might be willing to pay in the future for shares of our Common Stock. They could also deter potential acquirers of our company, thereby reducing the likelihood that you could receive a premium for your Common Stock in an acquisition.

**Risks Relating to The JOBS Act**

***The JOBS Act allows us to postpone the date by which we must comply with certain laws and regulations and to reduce the amount of information provided in reports filed with the SEC. We cannot be certain if the reduced disclosure requirements applicable to "emerging growth companies" will make our Common Stock less attractive to investors.***

We are and we will remain an "emerging growth company" until the earliest to occur of (i) the last day of the fiscal year during which our total annual revenues equal or exceed $1.07 billion (subject to adjustment for inflation), (ii) the last day of the end of our 2027 fiscal year (five years from our first public offering), (iii) the date on which we have, during the previous three-year period, issued more than $1 billion in non-convertible debt, or (iv) the date on which we are deemed a "large accelerated filer" (with at least $700 million in public float) under the Exchange Act. For so long as we remain an "emerging growth company" as defined in the JOBS Act, we may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not "emerging growth companies" as described in further detail in the risk factors below. We cannot predict if investors will find our Common Stock less attractive because we will rely on some or all of these exemptions. If some investors find our Common Stock less attractive as a result, there may be a less active trading market for our Common Stock and our stock price may be more volatile. If we avail ourselves of certain exemptions from various reporting requirements, as is currently our plan, our reduced disclosure may make it more difficult for investors and securities analysts to evaluate us and may result in less investor confidence.

***Our election not to opt out of the JOBS Act extended accounting transition period may not make our financial statements easily comparable to other companies.***

Pursuant to the JOBS Act, as an "emerging growth company", we can elect to opt out of the extended transition period for any new or revised accounting standards that may be issued by the Public Company Accounting Oversight Board (PCAOB) or the SEC. Which means that when a standard is issued or revised and it has different application dates for public or private companies, we, as an "emerging growth company", can adopt the standard for the private company. This may make a comparison of our financial statements with any other public company which is not either an "emerging growth company" nor an "emerging growth company" which has opted out of using the extended transition period, more difficult or impossible as possible different or revised standards may be used.

**General Risk Factors**

***Our operations and performance are dependent on U.S., regional and global economic and geopolitical conditions.***

Our operations and performance depend on global, regional and U.S. economic and geopolitical conditions. While we do not have operations in Russia or China, Russia's invasion and military attacks on Ukraine have triggered significant sanctions from U.S. and European leaders. These events are currently escalating and creating increasingly volatile global economic conditions. Resulting changes in U.S. trade policy and European policies could trigger retaliatory actions by Russia, its allies and other affected countries, including China, resulting in a "trade war." Furthermore, if the conflict between Russia and Ukraine continues for a long period of time, or if other countries, including the U.S., become further involved in the conflict, we could face significant adverse effects to our business and financial condition.

The above factors, including a number of other economic and geopolitical factors both in the U.S. and abroad, could ultimately have material adverse effects on our business, financial condition, results of operations or cash flows, including the following:

● effects of significant changes in economic, monetary and fiscal policies in the U.S. and abroad including currency fluctuations, inflationary pressures and significant income tax changes;

● a global or regional economic slowdown in any of our market segments;

● changes in government policies and regulations affecting the Company or its significant customers;

● industrial policies in various countries that favor domestic industries over multinationals or that restrict foreign companies altogether;

● new or stricter trade policies and tariffs enacted by countries, such as China, in response to changes in U.S. trade policies and tariffs;

● postponement of spending, in response to tighter credit, financial market volatility and other factors;

● rapid material escalation of the cost of regulatory compliance and litigation;

● difficulties protecting intellectual property;

● longer payment cycles;

● credit risks and other challenges in collecting accounts receivable; and

● the impact of each of the foregoing on outsourcing and procurement arrangements.

***We may not maintain sufficient insurance coverage for the risks associated with our business operations.***

Risks associated with our business and operations include, but are not limited to, claims for wrongful acts committed by our officers, directors, and other representatives, the loss of intellectual property rights, the loss of key personnel, and risks posed by natural disasters. Any of these risks may result in significant losses. We cannot provide any assurance that our insurance coverage is sufficient to cover any losses that we may sustain, or that we will be able to successfully claim our losses under our insurance policies on a timely basis or at all. If we incur any loss not covered by our insurance policies, or the compensated amount is significantly less than our actual loss or is not timely paid, our business, financial condition and results of operations could be materially and adversely affected.

***Any failure to protect our intellectual property rights could impair our ability to protect our technology and our brand.***

Our success depends in part on our ability to enforce our intellectual property and other proprietary rights. We rely upon a combination of trademark and trade secret laws, as well as license and other contractual provisions, to protect our intellectual property and other proprietary rights. These laws, procedures and restrictions provide only limited protection and any of our intellectual property rights may be challenged, invalidated, circumvented, infringed or misappropriated. To the extent that our intellectual property and other proprietary rights are not adequately protected, third parties may gain access to our proprietary information, develop and market solutions similar to ours or use trademarks similar to ours, each of which could materially harm our business. The failure to adequately protect our intellectual property and other proprietary rights could have a material adverse effect on our business, financial condition and results of operations.

***If we make any acquisitions, they may disrupt or have a negative impact on our business.***

If we make acquisitions in the future, we could have difficulty integrating the acquired company's assets, personnel and operations with our own. We do not anticipate that any acquisitions or mergers we may enter into in the future would result in a change of control of the Company. In addition, the key personnel of the acquired business may not be willing to work for us. We cannot predict the effect expansion may have on our core business. Regardless of whether we are successful in making an acquisition, the negotiations could disrupt our ongoing business, distract our management and employees and increase our expenses. In addition to the risks described above, acquisitions are accompanied by a number of inherent risks, including, without limitation, the following:

● the difficulty of integrating acquired products, services or operations;

● the potential disruption of the ongoing businesses and distraction of our management and the management of acquired companies;

● difficulties in maintaining uniform standards, controls, procedures and policies;

● the potential impairment of relationships with employees and members and customers as a result of any integration of new management personnel;

● the potential inability or failure to achieve additional sales and enhance our customer base through cross-marketing of the products to new and existing members and customers;

● the effect of any government regulations which relate to the business acquired;

● potential unknown liabilities associated with acquired businesses or product lines, or the need to spend significant amounts to retool, reposition or modify the marketing and sales of acquired products or operations, or the defense of any litigation, whether or not successful, resulting from actions of the acquired company prior to our acquisition; and

● potential expenses under the labor, environmental and other laws of various jurisdictions.

Our business could be severely impaired if and to the extent that we are unable to succeed in addressing any of these risks or other problems encountered in connection with an acquisition, many of which cannot be presently identified. These risks and problems could disrupt our ongoing business, distract our management and employees, increase our expenses and adversely affect our results of operations.

***We rely on network and information systems and other technologies for our business activities and certain events, such as computer hackings, viruses or other destructive or disruptive software or activities may disrupt our operations, which could have a material adverse effect on our business, financial condition and results of operations.***

Network and information systems and other technologies are important to our business activities and operations. Network and information systems-related events, such as computer hackings, cyber threats, security breaches, viruses, or other destructive or disruptive software, process breakdowns or malicious or other activities could result in a disruption of our services and operations or improper disclosure of personal data or confidential information, which could damage our reputation and require us to expend resources to remedy any such breaches. Moreover, the amount and scope of insurance we maintain against losses resulting from any such events or security breaches may not be sufficient to cover our losses or otherwise adequately compensate us for any disruptions to our businesses that may result, and the occurrence of any such events or security breaches could have a material adverse effect on our business and results of operations. The risk of these systems-related events and security breaches occurring has intensified, in part because we maintain certain information necessary to conduct our businesses in digital form stored on cloud servers. While we intend to develop and maintain systems seeking to prevent systems-related events and security breaches from occurring, the development and maintenance of these systems is costly and requires ongoing monitoring and updating as technologies change and efforts to overcome security measures become more sophisticated. Despite these efforts, there can be no assurance that disruptions and security breaches will not occur in the future. Moreover, we may provide certain confidential, proprietary and personal information to third parties in connection with our businesses, and while we obtain assurances that these third parties will protect this information, there is a risk that this information may be compromised.

Likewise, data privacy breaches by employees or others with permitted access to our systems may pose a risk that sensitive data may be exposed to unauthorized persons or to the public. While we have invested in protection of data and information technology, there can be no assurance that our efforts will prevent breakdowns or breaches in our systems that could adversely affect our business. The occurrence of any of such network or information systems-related events or security breaches could have a material adverse effect on our business, financial condition and results of operations.

***Claims, litigation, government investigations, and other proceedings may adversely affect our business and results of operations.***

We may be subject to actual and threatened claims, litigation, reviews, investigations, and other proceedings, including proceedings relating to products offered by us and by third parties, and other matters. Any of these types of proceedings, may have an adverse effect on us because of legal costs, disruption of our operations, diversion of management resources, negative publicity, and other factors. The outcomes of these matters are inherently unpredictable and subject to significant uncertainties. Determining legal reserves and possible losses from such matters involves judgment and may not reflect the full range of uncertainties and unpredictable outcomes. Until the final resolution of such matters, we may be exposed to losses in excess of the amount recorded, and such amounts could be material. Should any of our estimates and assumptions change or prove to have been incorrect, it could have a material effect on our business, consolidated financial position, results of operations, or cash flows. In addition, it is possible that a resolution of one or more such proceedings, including as a result of a settlement, could require us to make substantial future payments, prevent us from offering certain products or services, require us to change our business practices in a manner materially adverse to our business, requiring development of non-infringing or otherwise altered products or technologies, damaging our reputation, or otherwise having a material effect on our operations.

\* \* \* \* \*

**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This prospectus contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 or the Securities Act, Section 21E of the Securities Exchange Act of 1934 or the Exchange Act, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those that reflect our current views with respect to future events and financial performance, and all statements other than statements of historical fact are statements that are, or could be, deemed forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "may," "might," "will," "intend," "should," "could," "can," "would," "believe," "expect," "seek," "anticipate," "intend," "estimate," "plan," "target," "project," "forecast," "envision" or the negative of these terms, and other similar phrases. All statements contained in this prospectus and any prospectus supplement regarding future financial position, sales, costs, earnings, losses, cash flows, other measures of results of operations, capital expenditures or debt levels and plans, objectives, outlook, targets, guidance or goals are forward-looking statements.

You should not place undue reliance on our forward-looking statements because they are not guarantees of future performance or expectations, and involve risks and uncertainties. Our forward-looking statements are based on the information currently available to us and speak only as of the date on the cover of this prospectus, the date of any prospectus supplement, or, in the case of forward-looking statements incorporated by reference, the date of the filing that includes the statement. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements relate to future events or our future operational or financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Except as required by applicable law, we assume no obligation, and disclaim any obligation, to update forward-looking statements whether as a result of new information, events or otherwise.

**The forward-looking statements contained in this prospectus are set forth principally in "*Risk Factors*" above, and in "*Risk Factors*," "*Management's Discussion and Analysis of Financial Condition and Results of Operations*," "*Business*" and other sections in our quarterly and annual filings with the OTC Markets GROUP, Inc. and in "*Management's Discussion and Analysis of Financial Condition and Results of Operations*," "*Risk Factors*" and other sections in our Latest Form 10-Q. In addition, there may be events in the future that we are not able to predict accurately or control which may cause actual results to differ materially from expectations expressed or implied by forward-looking statements. Please consider our forward-looking statements in light of these risks as you read this prospectus**

**Use of Proceeds**

All proceeds from the resale of the shares of our Common Stock offered by this prospectus will belong to the Selling Shareholder. We will not receive any proceeds from the resale of the shares of our Common Stock by the Selling Shareholder.

**MARKET FOR COMMON STOCK AND DIVIDEND POLICY**

Our Common Stock is quoted on the OTCQB under the symbol "CLNV". As of January 18, 2023, the last reported sale price of the Common Stock as reported on OTCQB was $0.074 per share. As of January 18, 2023, there were approximately 160 holders of record of Common Stock. The actual number of shareholders is greater than this number of record holders and includes shareholders who are beneficial owners but whose shares are held in street name by brokers and other nominees (including any mobile investment platform).

To date, we have never declared or paid any cash dividends on our capital stock. We currently intend to retain all available funds and any future earnings for use in the operation of our business and do not expect to pay any dividends on our capital stock in the foreseeable future. Any future determination to declare dividends will be made at the discretion of our Board, subject to applicable laws, and will depend on a number of factors, including our financial condition, results of operations, capital requirements, contractual restrictions, general business conditions, and other factors that our Board may deem relevant.

**Management's Discussion and Analysis of<br> Financial Condition and Results of Operations**

The following discussion should be read in conjunction with our financial statements and accompanying notes included elsewhere in this prospectus. The following discussion contains forward-looking statements regarding future events and the future results of the Company that are based on current expectations, estimates, forecasts, and projections about the industry in which the Company operates and the beliefs and assumptions of the management of the Company. Words such as "<u>expects,</u>" "<u>anticipates,</u>" "<u>targets,</u>" "<u>goals,</u>" "<u>projects,</u>" "<u>intends,</u>" "<u>plans,</u>" "<u>believes,</u>" "<u>seeks,</u>" "<u>estimates,</u>" variations of such words, and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, those discussed elsewhere in this prospectus, particularly under "Risk Factors," and in other reports we file with the SEC. See also "Cautionary Note Regarding Forward-Looking Statements". The Company undertakes no obligation to revise or update publicly any forward-looking statements for any reason. Factors that could cause or contribute to these differences include those discussed below and elsewhere in this prospectus.

The following discussion is based upon our financial statements included elsewhere in this prospectus, which have been prepared in accordance with U.S. generally accepted accounting principles. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingencies. Each of these decisions has some impact on the financial results for any given period.

***<u>Overview</u>***

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Clean Vision Corporation's ("Clean Vision," "we," "us," or the "Company") is a new entrant in the clean energy and waste-to-energy industries focused on clean technology and sustainability opportunities. By leveraging innovating technology and market forces, we aim to responsibly resolve environmental challenges by producing valuable products. Through our initiatives, we strive to be recognized as an environmental, social and governance company ("ESG"). Currently, we are focused on providing a solution to the plastic waste problem by recycling the waste and converting it into saleable byproducts, such as hydrogen and other clean-burning fuels that can be used to generate clean energy. Using a technology known as pyrolysis, which heats the feedstock (*i.e.*, plastic) at high temperatures in the absence of oxygen so that the material does not burn, we are able to turn the feedstock into (i) low-sulfur fuel, (ii) clean hydrogen, and (iii) carbon black or char (char is created in the pyrolysis of plastic). We intend to generate revenue from three sources: service revenue from the recycling services we provide, revenue generated from the sale of the byproducts, and revenue generated from the sale of fuel cell equipment. Our mission is to aid in solving the problem of cost-effectively upcycling the vast amount of waste plastic generated on land before it flows into the world's oceans.

We currently operate through our wholly-owned subsidiary, Clean-Seas, Inc. ("Clean-Seas"), which we acquired on May 19, 2020. Clean-Seas acquired its first pyrolysis unit in November 2021 for use in a pilot project in India, which began operations in early May 2022. We believe that this pilot project will showcase our ability to pyrolyze waste plastic (using pyrolysis), which will generate three byproducts: (i) low-sulfur fuel; (ii) clean hydrogen, AquaH<sup>tm</sup>; and (iii) char. We intend to sell the majority of the byproducts, while retaining a small amount of the low sulfur fuel and/or hydrogen to power our facilities and equipment. To date we have not generated any revenue from the provision or pyrolysis services nor have we generated any revenue from the sale of byproducts from our operations in India or fuel cell equipment and we do not currently have any contracts in place to sell these byproducts or fuel cell equipment. However, we believe that there is a strong market for low-sulfur fuel and clean hydrogen, upon which we intend to focus our byproduct sales.

According to analysis and projections reported by the U.S. Energy Information Administration ("EIA") on April 7, 2022, it is estimated that 98.3 million barrels per day of petroleum and liquid fuels was consumed globally in March 2022, an increase of 2.4 million barrels per day from March 2021. They estimate that global consumption of petroleum and liquid fuels will rise by 1.9 million barrels per day in 2023 to average 101.7 million barrels per day.

In a report published by Markets and Markets Research in February 2021 entitled "Hydrogen Generation Market by Application (Petroleum Refinery, Ammonia & Methanol production, Transportation, Power Generation), Generation & Delivery Mode (Captive, Merchant), Source (Blue, Green & Grey Hydrogen), Technology, and Region-Forecast to 2025," the global hydrogen generation market is projected to reach $201 billion by 2025 from an estimated $130 billion in 2020, at a compound annual growth rate (CAGR) of 9.2% during the forecast period. While the global green hydrogen market was valued at approximately $0.8 billion in 2021, it is predicted to grow to about $10.2 billion by 2028, with a CAGR of approximately 55.2% over the projection period, according to research and analysis published by Facts and Factors in March 2022 entitled "Green Hydrogen Market By Type (Solid Oxide Electrolyzer, Alkaline Electrolyzer, and Proton Exchange Membrane Electrolyzer), By Use (Transport, Power Generation, and Others) By Customer (Petrochemicals, Glass, Food & Beverages, Chemical, Medical, and Others), and By Region - Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast 2022–2028."

We believe that in the near future, a significant growth sector of the economy will be in clean energy and sustainable products and services. This belief was a key factor in our shift in our business focus in May 2020 and our acquisition of Clean-Seas, which became our wholly-owned subsidiary on May 19, 2020. Clean-Seas believes that it has made significant progress in identifying and developing a new business model around the clean energy and waste-to-energy sectors.

Clean Vision was established in 2017 as a company focused on the acquisition of disruptive technologies that will impact the digital economy. The Company, which was formerly known as Byzen Digital Inc., changed its corporate name to Clean Vision on March 12, 2021. We are now a holding company, with all operations currently being conducted through Clean-Seas. Dan Bates, our Chief Executive Officer, holds 2,000,000 shares of Series C Convertible Preferred Stock of the Company, which shares of Series C Convertible Preferred Stock vote together with our Common Stock on all stockholder matters, and vote one hundred Common Stock votes per share.

***<u>Our Business Model</u>***

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***Clean-Seas, Inc***.

Clean-Seas was incorporated in Delaware on March 20, 2020. Clean-Seas became a wholly-owned subsidiary of Clean Vision on May 19, 2020. Clean-Seas was Clean Vision's first investment within its newly expanded business strategy of clean energy space. It is management's belief that Clean-Seas has made significant progress in identifying and developing a new business model around the clean energy and waste-to-energy sectors.

Clean-Seas was established to solve the problem of cost-effectively upcycling the vast amount of waste plastic generated on-land before it flows into the world's oceans. As a "solutions provider," Clean-Seas has identified technologies that are uniquely suited to convert plastic waste into valuable commodities and intends to provide these technologies to its customers. The Clean-Seas team of business development professionals and engineers will use its experience in the sustainable energy space to deliver conversion technologies to its customers and strategic partners. Depending on customer requirements, recycling facilities will be designed to convert waste plastic into clean-burning hydrogen, synthetic liquid fuels and/or generate electricity from synthesis gas (syngas). The solutions provided will utilize technologies uniquely designed to the specific waste feedstock available and the customer's requirements.

System design includes conversion of all types of mixed plastics with a minimal sorting and cleaning requirement. Each solution will be designed to a customer's requirement. Each engagement will begin with a thorough analysis of a customers' needs and specific situation.

***Technology Overview***

Plastics are a group of materials, either synthetic or naturally occurring, that may be shaped when soft and then hardened to retain the given shape. Plastics are polymers. A polymer is a substance made of many repeating units. A polymer can be thought of as a chain in which each link is a single unit, or monomer. The chain is made by joining, or polymerizing, at least 1,000 links together. Polymerization can be demonstrated by making a chain using paper clips or by linking many strips of paper together to form a paper garland.

Recycled plastic waste has the highest calorific value of any waste stream, meaning that it has the greatest amount of heat released per unit of waste during complete combustion. This energy-rich waste material is therefore a good material for energy recovery, which we believe makes it extremely suitable for upcycling, through pyrolysis (described below) or other methods, to recapture the benefit of its stored chemical energy.

For plastics to continue to be accepted in the marketplace, we believe it is essential that appropriate technologies are developed and deployed that can effectively manage the waste plastic at the end of its useful life. We believe that these technologies should maintain as much value in the material as possible, in line with the principles of the circular carbon economy. Pyrolysis provides a solution that fits within these principles and can alleviate global environmental concerns regarding plastic usage and waste disposal.

***Pyrolysis: The Solution for Waste Reduction, Hydrogen Production, and Cleaner Fuels***

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Pyrolysis is the chemical decomposition of organic (carbon-based) materials through the application of heat. Pyrolysis, which is also the first step in gasification and combustion**,** occurs in the absence or near absence of oxygen, and it is thus distinct from combustion (burning) which can take place only if sufficient oxygen is present and burns materials. The rate of pyrolysis increases with temperature. In industrial applications the temperatures used are often 430 °C (about 800 °F) or higher, whereas in smaller-scale operations the temperature may be much lower.

The pyrolysis of wood is believed to be human's first chemical process. It is known to have been practiced by the ancient Chinese. As many as 1,500 years ago, tribes from the central Amazon used char derived from animal bone and tree bark to fertilize their soil, which according to scientists remains some of the richest and most fertile soil in the world. Still, we believe there have been relatively few large-scale implementations of this technology to date, which we attribute to the availability of less expensive alternatives and lax environmental regulations in waste management. Recently, with the attention being given to plastic usage and its negative impact on climate change, we anticipate an increase in demand for pyrolysis to remediate plastic waste.

***Pyrolysis Process***

During the primary pyrolysis step, the feedstock is pyrolyzed in a cylindrical chamber at 370ºC – 420ºC, the pyrolysis gasses are then condensed and the resulting liquid is separated, using a distillation process to produce the liquid fuel products, which yields a mixture which is essentially equivalent to petroleum distillate (a petroleum derivative). The essential steps in the pyrolysis process involve:

● evenly heating the feedstock to a narrow temperature range without excessive temperature variations

● purging oxygen from pyrolysis chamber,

● managing the carbon black or char by-product before it acts as a thermal insulator and lowers the heat transfer to the plastic

● careful condensation and fractionation of the pyrolysis vapors to produce distillate of good quality and consistency.

In addition to liquid fuel, pyrolysis can also produce hydrogen and other syngases (primarily carbon monoxide, methane, nitrogen, carbon dioxide, ethane and ethene) along with solid carbon black or char, of which the relative proportions depend upon the method of pyrolysis and the operating conditions of the pyrolysis reactor. This is a function of the rate of heating, the operating temperature, and the amount of time the material stays within the pyrolysis reactor (residence time).

***The Hydrogen Economy***

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Hydrogen is the most abundant element in the universe, but it occurs naturally on earth only in compound form with other elements in liquids, gases or solids (such as water, which is comprised of hydrogen and oxygen). Traditionally, it would take more energy to produce hydrogen (by separating it from other elements in molecules) than hydrogen provides when it is converted to useful energy. Humans are therefore just beginning to take advantage of the many uses of hydrogen in daily life by leveraging technologies such as pyrolysis and gasification. With recent advances in sustainable technologies, we believe that people today can have better access to carbon-neutral sources of hydrogen to meet their energy needs.

Hydrogen is a versatile and flexible energy carrier. Many industries are looking to hydrogen as the fuel to power their energy transitions in the decarbonization of the global economy since it does not produce carbon dioxide or other greenhouse gasses when it is heated. It is our belief that there will be massive potential for end use applications of hydrogen such as transportation, replacement for fossil fuels used in industrial processes, energy generation and residential heating/cooling.

***Overview of the Hydrogen Market***

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In a report published by Markets and Markets Research in February 2021 entitled "Hydrogen Generation Market by Application (Petroleum Refinery, Ammonia & Methanol production, Transportation, Power Generation), Generation & Delivery Mode (Captive, Merchant), Source (Blue, Green & Grey Hydrogen), Technology, and Region-Forecast to 2025," the global hydrogen generation market is projected to reach $201 billion by 2025 from an estimated $130 billion in 2020, at a compound annual growth rate (CAGR) of 9.2% during the forecast period. The global green hydrogen market was valued at approximately $0.8 billion in 2021. It is predicted to grow to about $10.2 billion by 2028, with a CAGR of approximately 55.2% over the projection period, according to research and analysis published by Facts and Factors in March 2022 entitled "Green Hydrogen Market By Type (Solid Oxide Electrolyzer, Alkaline Electrolyzer, and Proton Exchange Membrane Electrolyzer), By Use (Transport, Power Generation, and Others) By Customer (Petrochemicals, Glass, Food & Beverages, Chemical, Medical, and Others), and By Region - Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast 2022–2028."

The movement towards the reduction in greenhouse gas emissions has been a global goal over the past decade and was memorialized in the Paris Climate Accord in 2016, and again in Glasgow in 2021. Hydrogen may be a key component in this transition, as a source of clean and economical energy. Increasing government regulation regarding emissions has created a financial incentive for firms to seek more alternatives to fossil fuel usage. We believe that hydrogen will be a major part of all levels of this decarbonization of the economy by providing an alternative to natural gas. Scaling up existing hydrogen technologies will deliver competitive low-carbon solutions across a wide range of applications by 2030 and may even offer competitive low-carbon alternatives to conventional fuels in some segments. This includes the enabling of distributed power generation, passenger and cargo transportation as well as forklifts and heavy machinery.

Renewable energy, such as solar and wind power, is clean and increasingly affordable We believe that storage of energy from intermittent renewable energy sources is an essential component or our current and future energy systems. Hydrogen storage is a key enabling technology for the advancement of hydrogen and fuel cell technologies in applications including stationary power, portable power, and transportation. Fuel cells, which we intend to distribute pursuant to the Licensing Agreement with Kingsberry Fuel Cell Corporation, are one way in which this excess hydrogen can be stored.

Currently, industrial applications constitute the main usage of hydrogen. Much of this hydrogen is derived from natural gas as the feedstock, so we believe that there is significant potential for reducing greenhouse gas emissions by producing "clean" hydrogen from carbon neutral renewable energy sources.

Hydrogen also may play a significant role for energy use in commercial and multifamily residential buildings. In the near-term hydrogen may be blended into existing natural gas networks, taking advantage of existing infrastructure. We believe that the long-term outlook for hydrogen usage in heating applications is especially promising, due to the potential for hydrogen boilers or fuel cells to be built into commercial and multifamily units.

It is our belief that hydrogen-powered vehicles will make up a significant percentage of zero-emission vehicles over the next decade. In the Stated Policies Scenario released by the International Energy Agency in 2021 as the baseline scenario reflecting all existing policies, policy ambitions and targets that have been legislated for or announced by governments around the world, the global electric vehicle stock across all transport modes (excluding two/three-wheelers) expands from over 11 million in 2020 to almost 145 million vehicles by 2030, an annual average growth rate of nearly 30%.

As the number of hydrogen-powered vehicles increases, we predict that the market for consumer hydrogen will likewise increase. Domestically, most infrastructure for consumer hydrogen is within California, with over 40 hydrogen fueling stations. The foreign market has examples of more advanced development of infrastructure for hydrogen vehicles. Japan has been one of the largest public investors in hydrogen technology and has a publicly stated goal of placing over 200,000 hydrogen-powered vehicles on the road by 2025.

***Other By-products of Pyrolysis***

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Liquid oils from pyrolysis of different plastic waste types contain large numbers of carbon chains with different percentages that can be used as an energy source. Pyrolysis liquid oil utilization as transport fuel may be blended with conventional diesel fuel to improve its quality, as the pyrolysis oils contain a high percentage of aromatic hydrocarbons (like benzene).

Pyrolysis liquid oil has proven usable as a substitute transport fuel in conventional diesel engines. It has also been used successfully when blended with conventional diesel fuel, at ratios up to 30%, without complications. Energy can also be generated by diesel engines, gas turbines, steam turbines and boilers using pyrolysis liquid oil. According to a report published in June 2021 by Grand View Research, the global plastic to fuel market size was valued at USD 231.0 million in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 29.5% from 2021 to 2028. Growing demand for the generation of energy from waste on account of a clean environment has triggered the growth of the market.

In addition, the pyrolysis liquid oil shows the presence of compounds, which can be a source of precursor chemicals in industries for the polymerization (the process by which relatively small molecules, called monomers, combine chemically to produce a large chainlike molecule, called a polymer) of new plastic monomers. These compounds create the circular carbon economy of recycling waste into new forms of hydrocarbons to power engines, generate electricity, or create new types of plastic products.

Char and carbon black are also highly reusable byproducts of the pyrolysis process that have numerous existing applications. Depending on its quality, the solid char can be gasified, used for the production of activated carbons, for the production of graphene, or for soil remediation. Char is highly absorbent and therefore increases the soil's ability to retain water, nutrients and agricultural chemicals, preventing water contamination and soil erosion. Soil application of char may enhance both soil quality and be an effective means of sequestering large amounts of carbon, thereby helping to mitigate global climate change through carbon sequestration.

Carbon black is used in manufacturing tires, plastics, mechanical rubber goods, printing inks, and toners. It can absorb UV light and converts it into heat, hence, it is also used in insulating wires and cables. Moreover, it is used in the production of a wide range of rubber products and pigments. It serves as a cost-effective rubber reinforcing agent used in tires. The global carbon black market was valued at $15 billion in 2021, and is projected to reach $22 billion by 2027, growing at a CAGR of 5.7% from 2022 to 2027, as reported by Research and Markets entitled "Global Carbon Black Market Report and Forecast 2022-2027" released on April 22, 2022.

***<u>Clean Vision's Purpose</u>***

Global plastic waste recycling is facing unprecedented challenges. We believe that inadequate processing infrastructure, fewer processing locales, changing laws and conventions, and political circumstances imperil what is already a deficient response to a global problem. Developed nations, including the United States, the world's largest generator of plastic waste, are finding disposal of this waste increasingly difficult, due to expensive and inefficient processing capabilities; global conventions responding to environmental implications of international plastic export; and political constraints. In January 2018, the People's Republic of China, which had been accepting plastic waste from countries including the U.S., implemented its National Sword Policy limiting recyclable waste imports. As a result, the worldwide recyclables market experienced drastic limits, fewer options for disposal, resulting in a global backlog of plastic waste. Some of the recyclable material has been rerouted to Southeast Asian countries but the market remains in upheaval, with, at best, plastic waste floating in waiting ships and at worst, illegal dumping into international waters or incinerated.

According to an article published by the United Nations Environment Programme ("UNEP"), on March 2, 2022 entitled "What you need to know about the plastic pollution resolution," the world currently produces approximately 400 million tons of plastic waste per year, with the rate of plastic production forecasted to double by 2040. It also estimated that by 2050, there will be more plastic in the ocean by weight than fish. According to an article published by National Geographic entitled "A Whopping 91 Percent of Plastic Isn't Recycled," plastic takes more than 400 years to degrade, so most of it still exists in some form. It is estimated that only 9% of plastic waste has been recycled to date, while the vast majority (approximately 79%) is accumulating in landfills or ending up as litter in the natural environment, including the oceans.

The waste plastics recycling industry was valued at $55.1 billion in 2020 and is poised to become an $88 billion industry by 2030, as reported in a March 2022 report entitled "Market value of waste recycling services worldwide 2020-2030" published by Statista. Pyrolysis is an invaluable technology that can be used to transform certain materials, which traditional mechanical recycling technologies currently cannot handle, into clean energy and other valuable byproducts. Pyrolysis is also an important alternative solution to handling materials that have exhausted their potential for further traditional mechanical recycling.

The emerging markets of the world are especially critical to the plastic pollution problem, where waste handling and collection are not supported with the same infrastructure as in developed nations. We believe this market condition presents a unique opportunity for us. Clean-Seas intends to leverage its management's experience of working in the developing nations of the world for the past decade, providing renewable energy products and services to this sector and now will provide recycling solutions and energy generation. As stated by the Organization for Economic Co-operation and Development (OECD), "The path to net zero requires that emerging markets transform their energy systems, yet reliance on hydrocarbons alongside existing policy barriers pose challenges to the green transition."

Clean Vision plans to help provide a solution to the plastic waste problem that the world is facing, while simultaneously creating hydrogen and other clean-burning fuels that can be used to generate clean energy.

***<u>Our Growth Strategy</u>***

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We plan to provide tailored solutions to our customers to produce clean energy primarily out of the treatment of waste. We are currently focused on waste-to-energy projects in Morocco, Puerto Rico, France, India, Sri Lanka, and in the United States in Arizona, Michigan and Massachusetts due to their proximity to plastic waste as well as business relationships that have been developed by the management team of Clean Vision with entities and/or municipalities in such countries and are in the process of developing a pipeline of similar projects, in the United States and abroad. We believe there is a virtually endless supply of waste for such projects and the demand for energy (particularly from such projects) is growing consistently.

Another component of the clean energy and waste-to-energy industry in the United States is environmental credits. Recycling of waste plastic mitigates the need for fossil fuels for energy generation and the production of clean-burning diesel. We plan to aggregate these off-sets and sell them to users of fossil fuels in the form of carbon credits or renewable energy credits depending on the location of the facilities and local market conditions. These can be used as off-set as more governments impose a "Carbon-tax" on the end users of fossil fuels. In addition, we expect that in the coming years, there will be new exchanges coming online specifically focused on plastic waste, and credits will be sought after, allowing producers of plastic waste to off-set their plastic footprint, much like what has happened in the carbon markets.

We expect our projects, through our subsidiaries, including Clean-Seas, to generate revenue in several ways:

●  ***Gate Fees or Tipping Fees*** . These fees will be paid to us to accept waste from a government, municipality, or corporate entity, that must dispose of its waste. Fees are paid to accept this feedstock (which will be waste plastic for our Company) on a per ton basis. Gate fees are expected to vary in range from approximately $35 to $105 per ton, depending on the jurisdiction, land availability, and daily volumes of waste. In some cases, the Company will accept waste plastic delivered to our facility at no charge, depending on the location and if gate fees are not available. The current business model assumes that feedstock will not be a cost center.

●  ***Sale of Hydrogen and Other Fuels*** . A pyrolysis recycling facility converts waste into hydrogen and other clean-burning fuels. This hydrogen and other fuels can be sold to off-takers as an alternative cleaner fuel for marine use, electrical generators, or refined into a clean-burning road grade fuel. Depending on the installation, this fuel output product can be sold to a local fuel distributor or used in the generator sets for the generation of electricity as above.

●  ***Commodity Sales*** . An additional output product of the technologies is char or carbon black, which is used for the manufacturing of tires, bonding agents, roadway surfaces, and more. We intend to enter into agreements with consumers of carbon black, which will serve as an additional revenue stream to us.

●  ***Environmental Credits*** . Recycling of waste plastic mitigates the need for fossil fuels for energy generation and the production of clean-burning diesel. These off-sets can be aggregated and sold to users of fossil fuels in the form of carbon credits or renewable energy credits depending on the location of the facilities and local market conditions. These can be used as off-set as more governments impose a "Carbon-tax" on the end users of fossil fuels.

●  ***Equipment Sales*** . Clean-Seas has entered into a Licensing Agreement whereby Clean-Seas has obtained the exclusive, worldwide rights (exclusive of the United States and Canada) to Kingsberry Fuel Cell Corporation's fuel cell intellectual property for a term of five years, which Clean-Seas intends to distribute to third-parties throughout the world. These sales will provide a revenue stream to us, as well as recurring revenue through a royalty model and ongoing service.

***<u>Technology Development</u>***

***Plastic Conversion Network (PCN)***

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Clean-Seas has developed a technology solution to address the global crisis of plastic waste pollution. The Plastic Conversion Network is a patent-pending software network connecting sources of waste plastic (feedstock) with conversion facilities, which will produce environmentally friendly commodities. We intend to strategically locate the conversion facilities around the world in locations that are easily accessible and in close proximity to countries that produce a large amount of plastic waste. PCN was created in response to the problem created when the People's Republic of China ceased purchasing the developed world's recyclable waste streams in 2018. Currently, we have entered into Letters of Intent and/or Joint Venture Agreements for development of facilities in numerous host countries/territories, including Morocco, Sri Lanka and Puerto Rico.

***Background***

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Global plastic waste recycling is facing unprecedented challenges. We believe that inadequate processing infrastructure, fewer processing locales, changing laws and conventions, and political circumstances imperil what is already a deficient response to a global problem. According to an article published by National Geographic entitled "A Whopping 91 Percent of Plastic Isn't Recycled," it is estimated that since 1950 only 9% of all of the planet's plastic waste has been recycled. By the same estimates, 79% of plastic waste remains in the world's landfills and or as litter, meaning that much of it ultimately ends up in the oceans. Discarded plastics are estimated to comprise 12.2% of all landfilled waste and 16% of combusted waste according to the EPA.

Developed nations, including the United States, the world's largest generator of plastic waste, are finding disposal of this waste increasingly difficult, due to expensive and inefficient processing capabilities; global conventions responding to environmental implications of international plastic export; and political constraints. In January 2018, the People's Republic of China, which had been accepting plastic waste from countries including the U.S., implemented its National Sword policy limiting recyclable waste imports. As a result, the worldwide recyclables market experienced drastic limits, fewer options for disposal, resulting in a global backlog of plastic waste. Some of the recyclable material has been rerouted to Southeast Asian countries but the market remains in upheaval, with, at best, plastic waste floating in waiting ships and at worst, illegal dumping into international waters or incinerated.

The Basel Convention on the Control of Transboundary Movements of Hazardous Wastes ("Basel Convention") is an international treaty aimed at reducing the movement of hazardous waste between nations. In 2019, the Basel Convention amended its treaty to regulate plastic waste exports. As a result, effective January 1, 2021, international shipment of plastic waste became subject to prior written consent between countries party to the convention. The U.S., as a non-party to this convention, is now subject to new liability because most countries will not accept its waste plastic. In order to ship its waste plastic, the U.S. must enter prior written agreements with accepting Basel Convention party countries which meet certain Basel Convention criteria.

Using pyrolysis technologies described above, the PCN is designed to scale, efficiently and cost effectively convert waste plastic into environmentally friendly commodities, including low sulfur diesel fuel, hydrogen, carbon black and others. The transporting of all plastic waste will be fully compliant with the Basel Convention and the facilities will be strategically located to reduce its carbon footprint. The PCN can connect the developed nations of the world that have robust recycling programs for plastic waste but lack a proper method of disposal, with facilities that will convert their plastic waste into environmentally friendly commodities. The current disposal options are either environmentally hazardous (landfills), environmentally destructive (incineration), or illegal.

***AquaH<sup>tm</sup>***

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Clean-Seas has developed and is branding its own, unique, type of hydrogen called AquaH<sup>TM</sup> Typically, the various types of hydrogen are given a color that differentiates the types and where it was derived from.

There are nine types of hydrogen:

● Green hydrogen is produced through water electrolysis process by employing renewable electricity. The reason it is called green is that there is no CO2 emission during the production process. Water electrolysis is a process which uses electricity to decompose water into hydrogen gas and oxygen.

● Blue hydrogen is sourced from fossil fuel. However, the CO2 is captured and stored underground (carbon sequestration). Companies are also trying to utilize the captured carbon called carbon capture, storage and utilization (CCSU). Utilization is not essential to qualify for blue hydrogen. As no CO2 is emitted, the blue hydrogen production process is categorized as carbon neutral.

● Gray hydrogen is produced from fossil fuel and commonly uses steam methane reforming (SMR) method. During this process, CO2 is produced and eventually released to the atmosphere.

● Black or brown hydrogen is produced from coal. The black and brown colors refer to the type bituminous (black) and lignite (brown) coal. The gasification of coal is a method used to produce hydrogen. However, it is a very polluting process, and CO2 and carbon monoxide are produced as by-products and released to the atmosphere.

● Turquoise hydrogen can be extracted by using the thermal splitting of methane via methane pyrolysis. The process, though at the experimental stage, removes the carbon in a solid form instead of CO2 gas.

● Purple hydrogen is made using nuclear power and heat through combined chemo thermal electrolysis splitting of water.

● Pink hydrogen is generated through electrolysis of water by using electricity from a nuclear power plant.

● Red hydrogen is produced through the high-temperature catalytic splitting of water using nuclear power thermal as an energy source.

● White hydrogen refers to naturally occurring hydrogen.

Clean-Seas is seeking to establish a tenth type of hydrogen derived from a plastic waste stream, which we believe falls between Green and Blue hydrogen. We have categorized the hydrogen derived from plastic waste in this manner because while the process does not emit CO2, it is not derived from a naturally occurring material like water, but rather a man-made material (plastic), which caused the emission of CO2 when it was produced. The Company currently expects to launch the new product in the second quarter of 2023, beginning in India.

***Clean-Seas Business Development***

CEO Dan Bates and his team have identified domestic and international technology partnership targets focused on converting plastic waste to clean fuels, hybrid wind and solar power generation and hydrogen fuel cells. The Company is in active negotiations to conclude these transactions.

Within the United States, Clean-Seas has developed relationships within environmental and economic development agencies in several states for the remediation and conversion of waste plastic. The Company is working on securing letters of intent or definitive agreements for these United States projects. Once the letters of intent are in place, we expect the process of permitting will begin with each state and each location having specific permitting requirements, Clean-Seas intends to engage with state specific legal representation and environmental consultants to streamline the process.

The Company's wholly owned subsidiary, Clean-Seas, Inc. has signed letters of intent with prospective joint venture partners in: India, Morocco, France, Puerto Rico, Sri Lanka, Turkey and in the United States, in Arizona, Michigan and Massachusetts. Each of these localities are able to service waste streams from geographically proximate States or developed nations and have rail access or deep water ports for offloading.

Morocco:

On April 4, 2022, we announced the signing of a binding terms sheet with ECOSYNERGIE, a Moroccan based company ("Ecosynergie"), in the waste plastic-to-energy pyrolysis conversion business to develop a commercial scale waste plastic-to-energy pyrolysis plant in Morocco. Ecosynergie owns two pyrolysis units that it agreed to sell to us and we will contribute to the project as well as capital to scale the operations and Ecosynergie will contribute land for the facility, all required permits, and all existing feedstock and off-take agreements. The term sheet provides for the companies to establish a new U.S. company through which they will operate.

The United States:

Clean-Seas is actively engaged with local partners in Massachusetts and Michigan to secure Mixed Plastic Waste feedstock from Material Recovery Facilities and industrial suppliers, and to develop in-market facilities with local offtake for products, property leases and permits. These projects are all in various stages of development..

France:

Clean-Seas Brittany is being established with its partner, Jalaber Diffusion, to establish a 100 ton per day facility in the region of Brittany, France. The facility will service waste plastic from the northern part of France and expects to extend its reach throughout the European Union. Land has been identified and permits are in the process of being secured. We currently expect this facility to open in the latter part of 2023.

Sri Lanka:

On March 16, 2022, we initially announced the signing of a binding term sheet with Arinma Holdings, a company based in Columbo, Sri Lanka, to develop a commercial scale waste plastic-to-energy pyrolysis plant to serve as a south-Asia host facility within the PCN network. Focused on prosperity, social justice and sustainability, Arinma Holdings has completed over 350 large multifaceted projects throughout Sri Lanka. The agreement provides for the parties to establish a new U.S. company through which they will operate.

Puerto Rico:

On April 6, 2022, we announced the formation of a joint venture with a San Juan based company, Main Line Ventures LLC ("MLV") to develop a commercial scale waste plastic-to-energy pyrolysis plant in Puerto Rico to serve as a host facility for our PCN. Pursuant to the terms of the joint venture, we agreed to provide lead project funding, the pyrolysis tech sub-contractor and the expertise to develop and manage the project and MLV is responsible for securing legal representation, permitting and government /community relations. The facility is planned to process local waste plastic and waste plastic of neighboring islands as well as the southern United States. Output is expected to include low sulfur diesel fuel, electricity, char and clean hydrogen.

Turkey:

Clean-Seas Turkey is being established with its partner, PAX PETROKIMYA SANAYI VE DIS TICARET LIMITED SIRKETI, to establish a 100 ton per day facility in Istanbul, Turkey. The facility will convert waste plastic from the European Union and Turkey. PAX PETROKIMYA is in the process of securing the required land and government permits in order to establish operations and scale the facility.

***<u>Subsidiaries of Clean-Seas</u>***

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In order to execute its business model, Clean-Seas has established a wholly-owned subsidiary in India and intends to establish majority-owned subsidiaries in Morocco, France, Turkey, Puerto Rico, Sri Lanka, Arizona and Massachusetts. We chose these locations due to the proximity to an abundant supply of plastic waste as well as because of prior business relationships that had been established by Dan Bates, throughout his career in the renewable energy industry. Clean-Seas India Private Limited was incorporated in India on November 17, 2021. We expect that these subsidiaries will be establishing joint ventures in the various regions that Clean-Seas plans to be conducting business.

***Clean-Seas India Private Limited***

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Clean-Seas India Private Limited ("Clean-Seas India") has entered into a development agreement with the Council of Scientific and Industrial Research ("CSIR"), acting through CSIR-Indian Institute of Chemical Technology (IICT) in Hyderabad. This agreement provides that the IICT development team will evaluate the performance of the Clean-Seas pyrolysis technology, which has already been installed at the Hyderabad location, to improve, productize and scale the technologies for the benefit of sales directly to the third parties, which we anticipate will include the Indian Government as well as the private sector. Our pilot project in India is designed to showcase our ability to pyrolyze waste plastic and generate saleable byproducts, including clean hydrogen, AquaH<sup>TM</sup>, which can then be used in fuel cells to generate clean energy. This completes the value chain from an unused waste stream through to clean usable electricity.

Clean-Seas India's pilot project began operations in May 2022.

We expect to sign contracts for our technologies with cities and states in India including Goa, Kerala and Telangana. Clean-Seas India has secured Research and Development space near the IICT campus in Hyderabad for ongoing technology development.

***EcoCell***

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EcoCell, Inc. ("EcoCell") is our wholly-owned subsidiary that was incorporated in Nevada on March 4, 2022. EcoCell does not currently have any operations, but we intend to use EcoCell for the purpose of licensing fuel cell patented technology developed and manufactured by Kingsberry Fuel Cell Corporation pursuant to the Licensing Agreement described below, which we intend to sell and install in India through Clean-Seas India, as well as other regions as yet to be determined.

EcoCell has recently commissioned the construction of a five-kilowatt hydrogen fuel cell to be demonstrated to potential customers in June 2022. The commissioning of the fuel cell triggered the option within the Kingsberry Licensing Agreement, described below.

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***Endless Energy***

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Endless Energy, Inc. ("Endless Energy") is our wholly-owned subsidiary, incorporated in Nevada on December 10, 2021. Endless Energy was originally formed by the Company with the intent of Endless Energy acquiring the assets of WindStream Technologies, Inc. ("WS USA"). WS USA was delisted from Nasdaq on March 6, 2019 and currently has no operations. WS USA also owns approximately 26% of the issued and outstanding equity of WindStream Energy Technology, an Indian company ("WS India").

Dan Bates, the Company's CEO, is an equity owner of WS USA and has served as its President and CEO. Dan Bates is also a member of the board of directors of WS India. On August 18, 2021, the United States filed a lawsuit against Windstream and Daniel Bates over Windstream's default on a $2,000,000 loan that Windstream had with GBC International Bank and which loan Mr. Bates personally guaranteed as Windstream's President and CEO (*United State of America v. Windstream Technologies, Inc. and Daniel Bates*, Case No. 1:2021cv2269). On October 13, 2022, a judgment was entered in this matter that ordered defendants to pay the plaintiff the principal sum of $1,982,570.22, plus $842,536.13 ordinary interest accrued through May 31, 2022, and $1,735,299.76 late interest accrued through May 31, 2022.

Endless Energy's potential acquisition WS USA's assets has not occurred as of January 23, 2023, but such transaction is still currently being explored.

***<u>Intellectual Property</u>***

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Clean-Seas filed for intellectual property protection of its technology entitled "Method and Apparatus for Plastic Waste Recycling" with the United States Patent and Trademark Office covering its global Plastic Conversion Network ("PCN"). PCN is a patent-pending software network connecting sources of waste plastic with "conversion" facilities strategically located around the world. PCN was created to solve the problem created when China closed its borders to the importation of the developed world's recyclable waste streams. There can be no assurance that the patent will issue or if issued that the patent will protect our intellectual property.

***<u>Material Agreements</u>***

*<u>Exchange Agreement with Clean-Seas</u>*

 

On May 19, 2020, we entered into an Exchange Agreement with Clean-Seas and Clean-Seas' sole shareholder, Dan Bates, the Company's CEO (the "Exchange Agreement"). Pursuant to the Exchange Agreement, 100% of the shares of Clean-Seas were exchanged for 2,500,000 shares of our Common Stock (the "Exchange"). Upon the closing of the Exchange, Clean-Seas became our wholly-owned subsidiary.

*<u>Licensing Agreement with Kingsberry Fuel Cell Corporation</u>*

 

On December 6, 2021, we entered into a Licensing Agreement (the "Licensing Agreement") with Kingsberry Fuel Cell Corporation and Dr. K. Joel Berry (collectively, "Kingsberry"). Pursuant to the terms of the Licensing Agreement, Kingsberry has granted us a six month option, through June 6, 2022, for an exclusive, worldwide right (exclusive of the United States and Canada) to Kingsberry's fuel cell intellectual property (the "Option") for a term of five years, with the right to renew the License Agreement for additional five-year periods. In consideration for the Option, we paid Kingsberry $10,000.00. On April 8, 2022, we exercised the option. The Licensing Agreement also provides that Kingsberry will provide consulting services to the Company. In consideration for the Licensing Agreement, the Company has agreed to pay Kingsberry 5% of net operating profit from sales (as defined in the Licensing Agreement) of all products related to the license, as well as 100,000 shares of restricted Common Stock of the Company per year, with stock grants to be capped at five years. The Initial Project contemplated to be completed pursuant to the Licensing Agreement is in India.

In April 2022, we commissioned Kingsberry to build and deliver a five-kilowatt fuel cell prototype in India. We intend to sell this fuel cell developed by Kingsberry, and others that we anticipate commissioning Kingsberry to build in the future, to third-parties as a source of revenue. The fuel cell technology will be demonstrated to India's Ministry of Defense, Ministry of Railways, and executives of an electric vehicle charging station project, among others, as potential clients for this fuel cell technology. The fuel cells can be used by potential purchasers to produce clean power using hydrogen from independent sources or from hydrogen produced by Clean-Seas India's pilot waste plastic-to-energy pyrolysis plant in Hyderabad, India, if such purchasers also purchase our hydrogen.

*<u>Development Agreement in India</u>*

 

Clean-Seas India has entered into a development agreement with the Council of Scientific and Industrial Research ("CSIR"), acting through CSIR-Indian Institute of Chemical Technology (IICT) in Hyderabad. This agreement provides that the IICT development team will evaluate the performance of the Clean-Seas pyrolysis technology, which has already been installed at the Hyderabad location, to improve, productize and scale the technologies for the benefit of sales directly to the third parties, which we anticipate will include the Indian Government as well as the private sector.

***<u>Competition</u>***

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The clean energy and waste-to-energy industries are very competitive. We will compete with other companies offering pyrolysis solutions in addition to many other clean energy solutions. We expect competition to increase as awareness of the environmental advantages of converting waste plastic into fuel increases. A rapid increase in competition could negatively affect our ability to develop a profitable client base. Many of our competitors and potential competitors may have substantially greater financial resources, customer support, technical and marketing resources, larger customer bases, longer operating histories, greater name recognition and more established relationships than we do. We cannot be sure that we will have the resources or expertise to compete successfully. Our failure to compete effectively with our current and future competitors would adversely affect our business, financial condition, and results of operations.

Although there seems to be an abundant supply of waste plastic, it is expected that there will be increased competition for these plastic resources, with the result that it could have an effect on our profitability that we do not foresee at this time.

We also face competition for qualified employees and consultants among companies in the applicable industries. Competition for individuals with experience in the clean energy and waste-to-energy industries is intense. The loss of any of such persons, or an inability to attract, retain and motivate any additional highly skilled employees and consultants required for the initiation and expansion of our activities, could have a materially adverse effect on our business.

***<u>Our Strengths</u>***

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We believe that the following are the critical investment attributes of our company:

● *Pilot Project Commenced*. We have acquired our first pyrolysis unit for use in our pilot project in Hyderabad, India, which began operations in May 2022.

● *Large market opportunity for effective solution*. Renewable energy is a large market with an unmet need. Plastic waste disposal affects all countries of the world, including those of developing nations. With a more recent focus of governments on environmentally friendly waste removal solutions, we believe there is a large opportunity for us.

● *Unique technology*. Pyrolysis technology reduces organic waste while creating valuable byproducts.

● *Public support for clean technologies to protect the environment*. In recent years shareholders have been focusing on environmental sustainability and investors have been directing their investments towards companies based on ESG factors.

● *Experienced management team*. Members of the management team have years of experience in the renewable energy sector. The management of Clean-Seas has begun to develop relationships with several providers of pyrolysis technologies, with whom we expect to seek a strategic partnership or business relationship as we move forward.

● *New Approach to Vertical Supply Chain*. The Plastic Conversion Network ("PCN") is a patent-pending software network connecting sources of waste plastic (feedstock) with conversion facilities, which will produce environmentally friendly commodities. We intend to strategically locate the conversion facilities around the world in locations that are easily accessible and in close proximity to countries that produce a large amount of plastic waste. Currently, we have entered into Letters of Intent and/or Joint Venture Agreements for development of facilities in the following host countries/territories: Morocco, Sri Lanka, and Puerto Rico.

***<u>Government Regulation</u>***

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Our industry is subject to extensive federal and state laws and regulations in the United States as well as each country in which we perform services. Federal and state laws and regulations impact how we conduct our business and the services we offer and impose certain requirements on us such as:

● licensure and certification;

● operating policies and procedures;

● emergency preparedness risk assessments and policies and procedures;

● policies and procedures regarding employee relations;

● addition of facilities and services;

● billing for services;

● requirements for utilization of services; and

● reporting and maintaining records regarding adverse events.

 ***Permitting***

Each of our projects in development requires certain government approvals. In the United States, the standard required environmental permits relate to solid waste composting and air quality. The Clean Air Act establishes a number of permitting programs designed to carry out the goals of the Act. Some of these programs are directly implemented by EPA through its Regional Offices but most are carried out by states, local agencies and approved tribes.

***Regulatory Changes and Compliance***

Many aspects of our operations and facilities are affected by political developments and are subject to both domestic and foreign governmental regulations, including those relating to:

● constructing and equipping facilities;

● workplace health and safety;

● currency conversions and repatriation;

● taxation of foreign earnings and earnings of expatriate personnel; and

● protecting the environment.

We cannot determine the extent to which new legislation, new regulations or changes in existing laws or regulations may affect our future operations.

***Environmental***

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Our operations and properties upon which we perform our pyrolysis services are subject to a wide variety of increasingly complex and stringent foreign, federal, state and local environmental laws and regulations, including those governing discharges into the air and water, the handling and disposal of solid and hazardous wastes, the remediation of soil and groundwater contaminated by hazardous substances and the health and safety of employees. Sanctions for noncompliance may include revocation of permits, corrective action orders, administrative or civil penalties and criminal prosecution. Some environmental laws provide for strict, joint and several liability for remediation of spills and other releases of hazardous substances, as well as damage to natural resources. In addition, companies may be subject to claims alleging personal injury or property damage as a result of alleged exposure to hazardous substances. Such laws and regulations may also expose us to liability for the conduct of or conditions caused by others or for our acts that were in compliance with all applicable laws at the time such acts were performed.

In the United States, these laws and regulations include the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, the Clean Air Act, the Clean Water Act, the Resource Conservation and Recovery Act, The Toxic Substances Control Act administered by the U.S. Environmental Protection Agency, and similar laws that provide for responses to, and liability for, releases of hazardous substances into the environment. These laws and regulations also include similar foreign, state or local counterparts to these federal laws, which regulate air emissions, water discharges, hazardous substances and waste and require public disclosure related to the use of various hazardous substances. Our operations are also governed by laws and regulations relating to workplace safety and worker health, including the U.S. Occupational Safety and Health Act and regulations promulgated thereunder.

***Effect of Existing or Probable Government Regulations on Our Business***

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Our business is affected by numerous laws and regulations on the international, federal, state and local levels, including energy, environmental, conservation, tax and other laws and regulations relating to our industry. Failure to comply with any laws and regulations may result in the assessment of administrative, civil and criminal penalties, the imposition of injunctive relief or both. Moreover, changes in any of these laws and regulations could have a material adverse effect on our business. In view of the many uncertainties with respect to current and future laws and regulations, including their applicability to us, we cannot predict the overall effect of such laws and regulations on our future operations.

We believe that our operations comply in all material respects with applicable laws and regulations and that the existence and enforcement of such laws and regulations have no more restrictive an effect on our operations than on other similar companies in our industry. We do not anticipate any material capital expenditures to comply with international, federal and state environmental requirements. However, we can provide no assurance that we will not incur significant environmental compliance costs in the future.

***Government Regulation Outside the United States***

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In Morocco, India and other projects conducted outside of the United States, we intend to rely upon our partners within those jurisdictions to ensure compliance with local government regulation, permitting requirements, and environmental laws.

***<u>Employees and Human Capital</u>***

 ****

We believe that our success depends upon our ability to attract, develop and retain key personnel. As of January 18, 2023, we employed fifteen individuals, of which four are part time. Four of our employees reside in India. A significant number of our management and professional employees have had prior experience in the clean energy and sustainable energy sector. None of our employees are covered by collective bargaining agreements, and management considers relations with our employees to be in good standing. Although we continually seek to add additional talent to our work force, management believes that it has sufficient human capital to operate its business successfully.

 **

***<u>Corporate Information</u>***

 **

Our principal executive offices are located at 2711 N. Sepulveda Blvd., Suite #1051, Manhattan Beach, CA 90266. Our telephone number is (424) 835-1845. Our website address is https://www.cleanvisioncorp.com. The reference to our website is an inactive textual reference only. The information on, or that can be accessed through, our website is not part of this prospectus. Investors should not rely on any such information in deciding whether to purchase our Common Stock.

Clean Vision was initially incorporated in Nevada as China Vitup Health Care Holdings, Inc. on September 15, 2006. Pursuant to an Agreement and Plan of Merger and Reorganization dated September 29, 2006, Tubac Holdings, Inc., a Wyoming corporation and a parent of the Company, was merged with and into the Company on October 2, 2006, with the Company as the surviving entity. On May 5, 2015, the Company changed its name to Emergency Pest Services, Inc. Pursuant to a Plan of Exchange dated August 3, 2015, the Company acquired Emergency Pest Services, Inc., a Florida corporation. Pursuant to a Plan of Exchange dated September 21, 2017, Byzen Digital Inc., a Seychelles corporation, was merged with and into the Company on November 4, 2017, with the Company as the surviving entity. On May 30, 2018, the Company changed its name to Byzen Digital Inc. On May 19, 2020, we changed our focus to clean energy and sustainability when we acquired Clean-Seas, which became our wholly-owned subsidiary. On March 12, 2021, the Company's corporate name was changed to Clean Vision Corporation.

***<u>Facilities</u>***

 ****

Our corporate headquarters located at 2711 N. Sepulveda Blvd., Suite #1051, Manhattan Beach, CA 90266, which is a virtual office that is used solely as a mailing address. All of our operations are conducted by our officers, directors, consultants, employees and otherwise are conducted remotely. We believe that this arrangement is adequate for our current operations and needs, but we will secure a physical location for our operations if and when we believe that it becomes necessary.

***<u>Legal Proceedings</u>***

 ****

Presently, there are not any material pending legal proceedings to which the Company is a party or as to which any of its property is subject, and no such proceedings are known to the Company to be threatened or contemplated against it.

On September 16, 2022, the Company commenced a lawsuit in the District Court of Clark County, Nevada (the "Court") against a former officer and current director of the Company, Mr. Christopher Percy, alleging, among other things, breach of fiduciary duty, conversion, and business disparagement in connection with a control dispute instigated by Mr. Percy following his termination from the Company. On November 2, 2022, the Court granted the Company's request for a preliminary injunction against Mr. Percy, which ordered, among other things, that Mr. Percy shall not take any action on behalf of the Company unless expressly authorized by the Company's Board of Directors. The Company's lawsuit against Mr. Percy is ongoing and the Company continues to operate normally. Mr. Percy is currently serving as a member of the Company's Board of Directors.

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**RESULTS OF OPERATIONS**

***For the nine months ended September 30, 2022 and 2021***

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**<u>Revenue</u>**

The Company had no revenue for the nine months ended September 30, 2022 and 2021.

**<u>Operating Expenses</u>**

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Nine months ended September 30, 2022** | **Nine months ended September 30, 2021** | **Change ($)** | **Change (%)** |
| *Expenses* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Consulting | $1094768 | $1285319 | $(190551) | (14.8)% |
| &nbsp;&nbsp;&nbsp;Professional fees | 258165 | 344697 | (86532) | (25.1)% |
| &nbsp;&nbsp;&nbsp;Payroll expense | 623549 | 1071527 | (447978) | (41.8)% |
| &nbsp;&nbsp;&nbsp;Director fees | 13500 |  | 13500 | 100% |
| &nbsp;&nbsp;&nbsp; General and administration expenses | 824344 | 139783 | 684561 | 489.7% |
| &nbsp;&nbsp;&nbsp;Total operating expenses | $2814326 | $2841326 | $(27000) | (1.0)% |

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*<u>Consulting Expense</u>*

 

For the nine months ended September 30, 2022 and 2021, we had consulting expenses of $1,094,768 and $1,285,319, respectively, a decrease of $190,551 or 14.8%. In the current period we had approximately $485,000 of stock compensation expense and $171,000 and $157,000 of consulting expense incurred by our Clean Seas India and Clean Seas subsidiaries. In the prior period we had $816,500 of stock compensation expense. The decrease in stock compensation expense from the prior period was the primary reason for the decrease in consulting expense.

*<u>Professional Fees</u>*

 

For the nine months ended September 30, 2022 and 2021, we incurred professional fees of $258,165 and $344,697, respectively, a decrease of $86,532 or 25.1%. In the prior period we incurred additional legal and audit expense related to the filing of our Regulation A Offering Statement.

*<u>Payroll Expense</u>*

 

For the nine months ended September 30, 2022 and 2021, we had payroll expense of $623,549 and $1,071,527, respectively, a decrease of $447,978 or 41.8%. In the prior year we issued preferred stock for services to our CEO for total non-cash compensation expense of $359,800.

*<u>Director Fees</u>*

 

For the nine months ended September 30, 2022 and 2021, we had director fees of $13,500 and $0, respectively, an increase of $13,500. In the fourth quarter of 2021 we added a new member to our Board of Directors. He is compensated $4,500 per quarter.

 

*<u>General and Administrative Expense</u>*

 

For the nine months ended September 30, 2022 and 2021, we had G&A expense of $824,344 and $139,783, respectively, an increase of $684,561. Some of our larger G&A expenses, and the increases over prior period are investor relations (~$306,000), licensing fees (~$25,000), development expense (~$35,500) and travel (~$58,500). Our Clean Seas India subsidiary also incurred $82,000 of G&A expense during the period.

**<u>Other Income and Expenses</u>**

For the nine months ended September 30, 2022, we had total other expense of $241,739 compared to $1,233,383 for the nine months ended September 30, 2021. In the current year we recognized $195,783 for debt issuance costs for the fair value of the warrants issued with convertible debt. We also had $46,256 of interest expense, of which $30,000 was amortization of debt discount. In the prior period we recognized $1,187,033 of interest expense, $1,162,996 of which was amortization of debt discounts, and a loss in the change of the fair value of derivative of $46,350.

**<u>Net Loss</u>**

Net loss for the nine months ended September 30, 2022 and 2021, was $3,056,065 and $4,074,709, respectively. Our net loss decreased mainly due to the decrease in other expense.

***Year ended December 31, 2021 compared to the year ended December 31, 2020***

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**<u>Revenue</u>**

The Company had no revenue for the years ended December 31, 2021 and 2020.

**<u>Operating Expenses</u>**

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year ended December 31, 2021** | **Year ended December 31, 2020** | **Change ($)** | **Change (%)** |
| *Expenses* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Officer Compensation | $1315152 | $400000 | $915152 | 229% |
| &nbsp;&nbsp;&nbsp;Consulting Fees | 1955213 | 191500 | 1763713 | 921% |
| &nbsp;&nbsp;&nbsp;Professional Fees | 413479 | 79827 | 333652 | 418% |
| &nbsp;&nbsp;&nbsp;Payroll Expense | 45366 |  | 45366 |  |
| &nbsp;&nbsp;&nbsp;Director's Fees | 18500 |  | 18500 |  |
| &nbsp;&nbsp;&nbsp; General and Administrative Expenses | 373095 | 132368 | 240727 | 182% |
| &nbsp;&nbsp;&nbsp;Total operating expenses | $4120805 | $803695 | $3317110 | 413% |

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Our operating expenses include officer compensation, consulting fees, professional fees, payroll expense, director's fees and general and administrative expenses. Our operating expenses increased by $3,317,110 or 413% for the year ended December 31, 2021, compared to the year ended December 31, 2020, mainly due to an increase of $1,763,713 in consulting fees to $1,955,213 and an $915,152 increase in officer compensation to $1,315,152, for the year ended December 31, 2021, compared to $191,500 and $400,000, respectively, for the year ended December 31, 2020, mainly due to an increase in stock-based compensation of $1,388,995, for services provided by management and consultants.

Professional fees, payroll expense, director's fee and general and administrative expenses also increased by $638,245 for the year ended December 31, 2021, compared to the year ended December 31, 2020, as described in the table above, due primarily to legal fees and travel expenses associated with the acquisition and establishment of new subsidiaries.

*<u>Officer Compensation</u>*

 

For the years ended December 31, 2021 and 2020, we incurred officer compensation expenses of $1,315,152 and $400,000, respectively, an increase of $915,152 or 229%. The increase is mainly stock compensation expense. In the current year we issued stock for services to officers for total non-cash compensation expense of $553,855. In addition, we incurred compensation expense for our new CEO and COO.

*<u>Consulting Expense</u>*

 

For the years ended December 31, 2021 and 2020, we had consulting expenses of $1,955,213 and $191,500, respectively, an increase of $1,763,713 or 921%. The increase is mainly stock compensation expense. In the current year we issued stock for services for non-cash compensation expense of approximately $1,600,000. We also incurred additional consulting expense through our Clean-Seas subsidiary. In the prior year, $125,000 of the $191,500, was non-cash stock compensation.

*<u>Professional Fees</u>*

 

For the years ended December 31, 2021 and 2020, we incurred professional fees of $413,479 and $79,827, respectively, an increase of $333,652 or 418%. The increase in the current year is due to an increase in both legal and audit expense, including non-cash stock based compensation of $150,000.

*<u>Payroll Expense</u>*

 

For the years ended December 31, 2021 and 2020, we had payroll expense of $45,366 and $0, respectively, an increase of $45,366. In the current year we started processing payroll for newly hired employees.

*<u>Director Fees</u>*

 

For the years ended December 31, 2021 and 2020, we had director fees of $18,500 and $0, respectively, an increase of $18,500. In the fourth quarter we added a new member to our Board of Directors. He was compensated $4,500 and 50,000 shares of Common Stock for non-cash expense of $14,000.

*<u>General and Administrative Expense</u>*

 

For the years ended December 31, 2021 and 2020, we had General and Administrative expenses ("G&A") of $373,095 and $132,368, respectively, an increase of $240,727 or 182%. Some of our larger G&A expenses, and reason for the increase are marketing and promotion (~$112,500), transfer agent fees (~$21,500), travel (~$44,100) and corporate fees (~$13,600). Our G&A expense has increased with increased operations related to our subsidiary, Clean-Seas, and other efforts to begin revenue generating operations.

**<u>Other Income (Expense)</u>**

We had total other expense of $1,913,606 for the year ended December 31, 2021, compared to total other expense of $1,237,238, for the year ended December 31, 2020, an increase of $676,368 or 55% from the prior period. The change was mainly due an increase of $664,052 in interest expense, from $522,981 in the year ended December 31, 2020 to $1,187,033 for the year ended December 31, 2021 and a decrease of $1,869,260 in the year over year change in value of the fair value of the derivative liabilities in connection with convertible notes payable and changes in the Company's stock price, for the year ended December 31, 2021. The aforementioned increase in other expense was mostly offset by a decrease in the loss on convertible debt of $2,006,944.

**<u>Net Operating Loss</u>**

We had a net operating loss of $6,034,411 for the year ended December 31, 2021, compared to a net operating loss of $2,040,933 for the year ended December 31, 2020, an increase in net operating loss of $3,993,478 or 196% from the prior period. The increase in net operating loss was mainly due to the $2,678,865 or 453% increase in officer compensation and consulting fees, primarily due to a $1,388,995 increase in stock compensation, as discussed above, an increase of $664,052 increase in interest expense, the $1,869,260 non-cash change in derivative liabilities discussed above, partially offset by a reduction in the loss on convertible debt of $2,006,944.

**LIQUIDITY AND CAPITAL RESOURCES**

To date, we have funded our operations through the issuance of equity securities and debt securities. We are not profitable, have not generated any revenue and have incurred an accumulated deficit of $16,221,150 as of September 30, 2022. For the nine months ended September 30, 2022, we had a net loss of $3,056,065, and we had a net loss of $6,034,411 for the year ended December 31, 2021. At September 30, 2022, we had cash of $2,829 and cash of $835,657 at December 31, 2021. We expect to continue to incur losses for the foreseeable future, and these losses could increase as we continue to work to develop our business. We also expect our capital needs to increase as we purchase additional pyrolysis equipment. Our future capital needs will be dependent upon our ability to generate significant revenue from operations. Our ability to raise additional capital through the future issuances of common stock and/or debt financing is unknown. The obtainment of additional financing, the successful development of our contemplated plan of operations, and its transition, ultimately, to the attainment of profitable operations are necessary for us to continue operations. These conditions and the ability to successfully resolve these factors raise substantial doubt about our ability to continue as a going concern and our ability to further implement our business plan and generate sufficient revenues and our ability to raise additional funds by way of a public or private offering.

***<u>Working Capital</u>***

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended September 30, 2022** | **Year Ended December 31, 2021** |
| Cash | $2829 | $835657 |
| Other Current Assets | 928244 | 54000 |
| Total Current Assets | 931073 | 889657 |
| Total Current Liabilities | 1315757 | 459943 |
| Working Capital / (Deficit) | $(384684) | $429714 |

---

As of September 30, 2022, our cash balance was $2,829 and total current assets were $931,073. As of December 31, 2021, our cash balance was $835,657 and total current assets were $889,657.

As of September 30, 2022, we had total current liabilities of $1,315,757. As of December 31, 2021, we had total current liabilities of $459,943.

As of September 30, 2022, we had a working capital deficit of $384,684, compared with a working capital of $429,714 as of December 31, 2021. The decrease in working capital was primarily attributed to our increase in accrued compensation, a convertible note payable and other loans payable.

***<u>Cash Flows</u>***

 

The following table sets forth the significant sources and uses of cash for the three months ended September 30, 2022 and 2021 and the year ended December 31, 2021 and 2020.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Nine Months Ended September 30, 2022** | **Nine Months Ended September 30, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2020** |
| Cash Flows Used in Operating Activities | $(1846811) | $(1396135) | $(1801078) | $(203860) |
| Cash Flows Used in Investing Activities | $(54713) | $— | $(300505) | $— |
| Cash Flows Provided by Financing Activities | $1062074 | $3000000 | $2936500 | $204600 |
| Net Change in Cash During the period end | $(839450) | $1603865 | $834917 | $740 |

---

<u>Cash Flow from Operating Activities</u>

During the nine months ended September 30, 2022, we had a net loss of $3,056,065, adjusted by $1,041,642 for non-cash expenses and $171,707 in adjustments from operating activities, assets and liabilities for a net of $1,842,716 used in operating activities. During the nine months ended September 30, 2021, we incurred a net loss of $4,074,709, adjusted by $2,759,425 for non-cash expenses and $80,851 in adjustments for a net of $1,396,135 used in operating expenses. During the year ended December 31, 2021, we had a net loss of $6,034,411 and used a total of $4,233,333 in adjustments from operating activities, assets and liabilities for a net of $1,801,078 used in operating activities. During the year ended December 31, 2020, we incurred a net loss of $2,420,933 and we used $2,217,073 in adjustments for a total use of $203,860 in operating activities.

<u>Cash Flow from Investing Activities</u>

During the nine months ended September 30, 2022, we purchased equipment in the amount of $54,713. During the year ended December 31, 2021, we purchased manufacturing equipment in the amount of $150,505 and used $150,000 to repurchase shares sold to 100Bio.

<u>Cash Flow from Financing Activities</u>

During the nine months ended September 30, 2022, we received $300,000 proceeds from convertible notes, $600,000 proceeds from the sale of common stock, $131,436 from other notes payable and $45,140 from a related party loan. Cash received was offset by repayment of $14,502 of notes. For nine months ended September 30, 2021, we received $1,469,000 of proceeds from the sale of notes, $3,000,000 proceeds from the sale of common stock and we repaid $1,469,000 of notes payable. During the year ended December 31, 2021, we received $3,244,000 from proceeds from the sale of Common Stock, $300,000 proceeds from the sale of notes payable, $686,500 from the proceeds of the sale of convertible notes, which was offset by repayment of $594,000 of convertible notes and $700,000 for notes. During year ended December 31, 2020, we received $90,000 of proceeds from the sale of convertible notes and $114,500 from the sale of notes.

***<u>Critical Accounting Policies and Estimates</u>***

 

The preparation of financial statements and related disclosures in conformity with U.S. generally accepted accounting principles and the Company's discussion and analysis of its financial condition and operating results require the Company's management to make judgments, assumptions and estimates that affect the amounts reported. Management bases its estimates on historical experience and on various other assumptions it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates, and such differences may be material.

"Note 2– Summary of Significant Accounting Policies" in the audited financial statements and included in this prospectus under "Index to Financial Statements" describe the significant accounting policies and methods used in the preparation of the Company's financial statements.

***Controls and Procedures***

 

We are not currently required to maintain an effective system of internal controls as defined by Section 404 of the Sarbanes-Oxley Act. We will be required to comply with the internal control over financial reporting requirements of the Sarbanes-Oxley Act for the twelve-month period ending December 31, 2022. Only in the event that we are deemed to be a large accelerated filer or an accelerated filer, and no longer qualify as an emerging growth company, would we be required to comply with the independent registered public accounting firm attestation requirement. Further, for as long as we remain an emerging growth company as defined in the JOBS Act, we intend to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public accounting firm attestation requirement.

***<u>JOBS Act and Recent Accounting Pronouncements</u>***

 

The JOBS Act provides that an "<u>emerging growth company</u>" can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act, for complying with new or revised accounting standards. In other words, an "<u>emerging growth company</u>" can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have irrevocably elected not to avail ourselves of this extended transition period and, as a result, we will adopt new or revised accounting standards on the relevant dates on which adoption of such standards is required for other public companies.

We have implemented all new accounting pronouncements that are in effect and may impact our financial statements and we do not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on our financial position or results of operations.

 ****

**Management**

The following sets forth information regarding individuals who are currently serving as directors and/or executive officers as of January 23, 2023.

---

| | | |
|:---|:---|:---|
| **Name** | &nbsp;&nbsp;**Age** | &nbsp;&nbsp;**Position** |
| Dan Bates | &nbsp;&nbsp;65 | &nbsp;&nbsp;Chairman, Chief Executive Officer, President and Director |
| Rachel Boulds | &nbsp;&nbsp;52 | &nbsp;&nbsp;Chief Financial Officer |
| Dr. Michael Dorsey | &nbsp;&nbsp;51 | &nbsp;&nbsp;Independent Director |
| Gregg Michael Boehmer | &nbsp;&nbsp;55 | &nbsp;&nbsp;Independent Director |
| Christopher Percy | &nbsp;&nbsp;42 | &nbsp;&nbsp;Director |
| Bart Fisher | &nbsp;&nbsp;79 | &nbsp;&nbsp;Independent Director |
| Daniel Harris | &nbsp;&nbsp; 60 | &nbsp;&nbsp;Chief Revenue Officer |

---

Our directors are elected annually and will hold office until our next annual meeting of the stockholders and until their successors are elected and qualified. Officers hold their positions at the pleasure of the Board of Directors. Our officers and directors may receive compensation as determined by us from time to time by vote of the Board of Directors. Such compensation might be in the form of stock options. Directors may be reimbursed by the Company for expenses incurred in attending meetings of the Board of Directors. Vacancies in the Board of Directors are filled by majority vote of the remaining directors.

***<u>Executive Officers and Directors</u>***

The following is a brief description of the education and business experience of our directors and executive officers.

***Dan Bates***

Mr. Bates has been our Chief Executive Officer and has served on our Board of Directors since May 27, 2020. Mr. Bates was appointed as our President, Secretary and Treasurer on July 20, 2022. Previously, from June 2014 to August 2019, Mr. Bates served as the CEO and President of ImpactPPA, an innovative renewable energy company providing blockchain technologies to solve the challenging problems commonly seen in the environment of distributed energy solutions globally. Mr. Bates has spent more than a decade in the renewable energy industry serving as the CEO of WindStream Technologies, Inc. ("WindStream").

Prior to starting WindStream, Mr. Bates spent 15 years in the technology sector and has launched successful technology ventures in both hardware and software. Mr. Bates' first technology venture, Extreme Audio Reality (EAR), which was formed in 1990, developed and patented the first interactive audio API for game developers, designed for the PC, and set-top box gaming arena. EAR successfully licensed its products to all major game publishers including Electronic Arts, Activision, Id Software, Ubisoft and many others. After EAR, Mr. Bates founded Avant Interactive ("Avant") in 1997, which developed a neural net and AI based technology for object recognition, creating a patented interactive video solution for content owners, publishers, and advertisers. Avant was the market leader in this emerging sector, holding licenses and/or contracts with many of the Fortune 100 companies, television and cable networks, ad agencies as well as developing proprietary applications for the U.S. Army.

We believe that Mr. Bates is highly qualified to serve as a member of the Board of Directors and our management team due to his significant experience in the renewable energy industry and understanding of emerging markets and finance.

***Christopher Percy***

Mr. Percy has served as a Director since June 30, 2022. On June 11, 2018, Mr. Percy was appointed as the Chief Commercial Officer of the Company, and on June 30, 2022. Mr. Percy was also appointed to serve as our Treasurer. On July 30, 2022, Mr. Percy was terminated as the Company's Chief Commercial Officer, Treasurer and Secretary. Mr. Percy began his career at First Ace Security from 1995 to 1999, where he quickly progressed from engineer to a challenging business development role. From 1999 to 2003, he was a project manager for CCTV UK Ltd London. In 2003, he used the broad skills acquired over years in the industry to found Direct CCTV & Security Systems ("Direct CCTV"), where he was managing director, servicing a broad international clientele, including Bank of America, Amazon and Geopost. In 2009, he became CEO and President of Direct Security Integration, which acquired Direct CCTV. When Direct Security Integration completed its initial public offering in 2014, Mr. Percy stepped down as CEO and President to consult for technology companies on structure and sales.

On September 16, 2022, the Company commenced a lawsuit in the District Court of Clark County, Nevada (the "Court") against Mr. Percy, alleging, among other things, breach of fiduciary duty, conversion, and business disparagement in connection with a control dispute instigated by Mr. Percy following his termination from the Company. Mr. Percy remains as a member of the Company's Board of Directors. On November 2, 2022, the Court granted the Company's request for a preliminary injunction against Mr. Percy, which ordered, among other things, that Mr. Percy shall not take any action on behalf of the Company unless expressly authorized by the Company's Board of Directors. The Company's lawsuit against Mr. Percy is ongoing and the Company continues to operate normally.

***Rachel Boulds***

 ****

Ms. Boulds has served as the Company's Chief Financial Officer since May 1, 2022. Ms. Boulds currently works for the Company on a part-time basis (spending approximately 80% of her time working for the Company) while also operating her sole accounting practice which she has led since 2009 and which provides all aspects of consulting and accounting services to clients, including the preparation of full disclosure financial statements for public companies to comply with GAAP and SEC requirements. Ms. Boulds also currently provides outsourced chief financial officer services for two other companies. From August 2004 through July 2009, she was employed as a Senior Auditor for HJ & Associates, LLC, where she performed audits and reviews of public and private companies, including the preparation of financial statements to comply with GAAP and SEC requirements. From 2003 through 2004, Ms. Boulds was employed as a Senior Auditor at Mohler, Nixon and Williams. From September 2001 through July 2003, Ms. Boulds worked as an ABAS Associate for PriceWaterhouseCoopers. From April 2000 through February 2001, Ms. Boulds was employed as an e-commerce Accountant for the Walt Disney Group's GO.com. Ms. Boulds earned a B.S. in Accounting from San Jose University in 2001 and is licensed as a CPA in the state of Utah.

***Daniel C. Harris***

 ****

Mr. Harris has served as the Company's Chief Revenue Officer since June 2022 and has served as the VP of Business Development of the Company's subsidiary, Clean-Seas, since October 2021. Mr. Harris is currently dedicated to the global expansion efforts of Clean-Seas' Plastic Conversion Network by focusing on establishing new locations and partnerships for its pyrolysis facilities. Mr. Harris has over 20 years of experience in the competitive energy space. Prior to his roles with the Company, Mr. Harris served as Executive Vice President of Global Sales at WindStream Technologies, Inc. ("WindStream"), focusing on large commercial installations of renewable energy systems (integrated wind and solar). Preceding his tenure at WindStream, Mr. Harris served as Executive Vice President of Sales at Glacial Energy, a nationwide provider of retail electricity and natural gas for commercial, industrial, and institutional customers. In addition to his experience in the energy field, he had a successful 20 year career in the telecommunications industry, holding numerous high level positions in General Management and Sales and Operations Management with telecommunications service providers such as Winstar Communications, Telseon, and Teleport Communications. Mr. Harris holds a Bachelor of Arts degree in both Telecommunications Management and Marketing from Syracuse University.

***Dr. Michael K. Dorsey***

 ****

Dr. Dorsey has served as a member of our Board of Directors since September 2021. He is a recognized expert on global energy, environment, finance and sustainability matters, having worked with governments and heads of state around the world. Dr. Dorsey was appointed to the EPA's National Advisory Committee (NAC) in 2010, 2012 and 2014. Further, in 2014, a specialized unit of the United Nations Conference on Trade and Development (UNCTAD) designated Dr. Dorsey advisor on "climate, energy sustainability and SIDS (Small Island Developing States)."

Dr. Dorsey has published dozens of scholarly and lay articles on a variety of environment, development, pollution prevention and sustainability matters, and has appeared in multiple TV and radio shows and print publications. Dr. Dorsey is a member of several non-profit boards and was a faculty member in various universities around the world.

Dr. Dorsey presently serves as a director at Michigan Environmental Council, where he has served since 2019, as well as at Univergy Solar since 2017, where he is also a partner. Dr. Dorsey's employment history also includes: a limited partner at Ibursun, 2019 to present; co-founder and treasurer at Sunrise Movement, 2017 to present; partner at Pahal Solar, 2019 to present; advisor at ImpactPPA 2018 to 2020; full member at Club of Rome, 2013 to present; member at Progress with Friends, 2006 to present; and co-founder at DetroitxPAC, 2013 to present. Dr. Dorsey holds a Master of Forest Science from Yale University.

We believe that Dr. Dorsey is highly qualified to serve as a member of the Board of Directors due to his significant experience in global renewable energy markets and government policy sectors.

***Gregg Boehmer***

 ****

Mr. Boehmer has served as a member of the Board of Directors since October 3, 2022. Mr. Boehmer has been a fixture for over a dozen years helping public companies with their fiscal, compliance and regulatory needs. He has a B.S. degree from the University of Dayton (OH) and a Master's Degree in Human Resource Management from Towson University (MD).<br>

After achieving success with a few OTC Pink Sheet companies in 2009-10, Mr. Boehmer opened his consulting firm, Layne Michael Consulting, LLC, in 2011 in an effort to provide general public company management, investor relations, corporate communications and compliance services to companies struggling with compliance and or public relations issues at rates far more affordable than larger firms were able to offer.

While he believes these services are integral, Mr. Boehmer also believes that providing education to those individuals, who have found themselves running a public company for the first time or still learning the dynamics of the public markets, is extremely valuable in assisting these executives in getting their company financial reporting and disclosures in order.

Mr. Boehmer began to shift his company's focus to compliance and management consulting midway through the last decade. While he enjoyed the challenge of finding new and creative ways to write and disseminate public company corporate updates, his passion clearly resides in successfully navigating compliance and regulatory issues with a focus green and renewable energy companies.

<br> Mr. Boehmer had been supporting the Clean Vision Corp. as a consultant since 2021.

We believe that Mr. Boehmer is highly qualified to serve as a member of our Board of Directors due to his years of experience and expertise in working with publicly traded companies and building development stage companies.

***Bart Fisher***

 ****

Mr. Fisher has served as a member of our Board of Directors since January 18, 2023. Mr. Fisher brings 50 years' experience as an attorney and investment banker specializing in high profile international corporate litigation and complex transnational financial transactions. As an attorney, Mr. Fisher serves as Managing Partner of the Law Office of Bart S. Fisher and is a member of the District of Columbia Bar. In his dual career as an investment banker, he serves as Managing Partner of JJ&B, LLC, a boutique investment bank located in Washington, D.C., Chairman of Omni Advisors LLC, a D.C. and NY-based investment bank, and Chairman of Capital Commodities, LLC.

Mr. Fisher graduated from Harvard Law School, and earned a Ph.D. in International Studies from Johns Hopkins School of Advanced International Studies in Washington, D.C. He has been nominated twice for the Nobel Prizes in Peace (2019) and Medicine (2020). Throughout his career, Mr. Fisher has been a prolific published author, frequent teacher and university lecturer, and a force for successfully advancing health care and philanthropy.

We believe that Mr. Fisher is highly qualified to serve as a member of the Board of Directors due to his significant experience in the legal and investment banking industries.

***<u>Corporate Governance</u>***

 ****

***Family Relationships amongst Directors and Officers***

There are no family relationships among our director and executive officers.

***Arrangements between Officers and Directors***

 

To our knowledge, there is no arrangement or understanding between any of our officers or directors and any other person, including directors, pursuant to which the officer or director was selected to serve as an officer or director.

***Involvement in Certain Legal Proceedings***

 

None of our executive officers or directors has been involved in any of the following events during the past ten years, except as described under "Business Experience", above: (1) any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time; (2) any conviction in a criminal proceeding or being a named subject to a pending criminal proceeding (excluding traffic violations and minor offenses); (3) being subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities or banking activities; (4) being found by a court of competent jurisdiction (in a civil action), the SEC or the Commodities Futures Trading Commission to have violated a federal or state securities or commodities law; (5) being the subject of, or a party to, any Federal or State judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of (i) any Federal or State securities or commodities law or regulation; (ii) any law or regulation respecting financial institutions or insurance companies, including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order, or (iii) any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or (6) being the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act), any registered entity (as defined in Section (1a)(40) of the Commodity Exchange Act), or any equivalent exchange, association, entity, or organization that has disciplinary authority over its members or persons associated with a member.

***Board Leadership Structure***

 

Our Board of Directors has the responsibility for selecting our appropriate leadership structure. In making leadership structure determinations, the Board of Directors considers many factors, including the specific needs of our business and what is in the best interests of our stockholders. Mr. Dan Bates serves as Chairman and CEO. The Board of Directors does not have a policy as to whether the Chairman should be an independent director, an affiliated director, or a member of management. The Board of Directors believes that its programs for overseeing risk, as described below, would be effective under a variety of leadership frameworks and therefore do not materially affect its choice of structure.

***Risk Oversight***

Effective risk oversight is an important priority of the Board of Directors. Because risks are considered in virtually every business decision, the Board of Directors discusses risk throughout the year generally or in connection with specific proposed actions. The Board of Directors' approach to risk oversight includes understanding the critical risks in the Company's business and strategy, evaluating the Company's risk management processes, allocating responsibilities for risk oversight, and fostering an appropriate culture of integrity and compliance with legal responsibilities. The directors exercise direct oversight of strategic risks to the Company.

***Other Directorships***

 

No director of the Company is also a director of an issuer with a class of securities registered under Section 12 of the Exchange Act (or which otherwise are required to file periodic reports under the Exchange Act).

***Committees of the Board***

 ****

The Company's Board of Directors does not currently have any committees established. If the Company completes its currently contemplated uplist to The Nasdaq Stock Market LLC ("Nasdaq"), which there can be no assurance such uplisting will occur, the Nasdaq listing rules require that independent directors must comprise a majority of a listed company's board of directors. In addition, the rules of Nasdaq require that, subject to specified exceptions, each member of a listed company's audit, compensation, and nominating and governance committees be independent. Audit committee members must also satisfy the independence criteria set forth in Rule 10A-3 under the Exchange Act. Under the rules of Nasdaq, a director will only qualify as an "independent director" if, in the opinion of that company's board of directors, that person does not have a relationship that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director.

 ****

***<u>Controlled Company</u>***

 ****

Dan Bates, our CEO and Chairman, owns 2,000,000 shares of Series C Convertible Preferred Stock of the Company, which shares of Series C Convertible Preferred Stock, vote together with our Common Stock on all stockholder matters, and vote one hundred Common Stock votes per share. Such shares of Series C Convertible Preferred Stock automatically converted into 20,000,000 shares of Common Stock on January 1, 2023; however as of January 23, 2023 such conversion has not been effectuated.

**Executive OFFICER and Director Compensation** 

***<u>Executive Compensation Table</u>***

The following table sets forth information concerning the compensation of (i) all individuals serving as our principal executive officer or acting in a similar capacity for the years ended December 30, 2022 and 2021 ("<u>PEO</u>"), regardless of compensation level; (ii) our two most highly compensated executive officers other than the PEO who were serving as executive officers for the periods ended December 30, 2022 and 2021, if any (subject to the limitations below); and (iii) up to two additional individuals for whom disclosure would have been provided pursuant to paragraph (ii) but for the fact that the individual was not serving as an executive officer at December 31, 2022 (collectively, the "<u>Named Executive Officers</u>").

Our Board of Directors does not have a Compensation Committee. In its absence, compensation was determined by the majority of the Board Members.

**Summary Compensation Table** 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Year** | **Salary <br> ($)** | **Bonus <br> ($)** | **Stock Awards <br> ($) (2)** | **Option Awards <br> ($)** | **Non-Equity Incentive Plan Compensation <br> ($)** | **Nonqualified <br> Deferred <br> Compensation <br> Earnings<br> ($)** | **All Other Compensation <br> ($) (3)** | **Total** |
| Dan Bates | 2022 | $240000 | $0 | $350000 | $0 | $0 | $0 | $0 | $590000 |
| &nbsp;&nbsp;&nbsp;CEO | 2021 | $240000 | $0 | $359800 | $0 | $0 | $0 | $0 | $599800 |
| Chris Percy**<sup>(1)</sup>** | 2022 | $57750 | $0 | $0 | $0 | $0 | $0 | $0 | $57750 |
|  | 2021 | $231000 | $0 | $59375 | $0 | $0 | $0 | $0 | $290375 |
| &nbsp;&nbsp;&nbsp;John Owen **<sup>(4)</sup>** | 2022 | $131250 | $0 | $0 | $0 | $0 | $0 | $0 | $131250 |
| &nbsp;&nbsp;&nbsp;COO | 2021 | $80000 | $0 | $14000 | $0 | $0 | $0 | $0 | $94000 |
| Rachel Boulds | 2022 | $60000 | $0 | $70000 | $0 | $0 | $0 | $0 | $130000 |
| &nbsp;&nbsp;&nbsp;CFO | 2021 | $47000 | $0 | $102950 | $0 | $0 | $0 | $0 | $149950 |
| &nbsp;&nbsp;&nbsp;Daniel Harris | 2022 | $90000 | $0 | $94792 | $0 | $0 | $0 | $0 | 184792 |
| &nbsp;&nbsp;&nbsp;CRO | 2021 | $22500 | $0 | $17750 | $&nbsp;&nbsp;&nbsp;&nbsp;0 | $0 | $0 | $0 | 40250 |

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(1) Effective as of July 30, 2022, Mr. Percy was terminated as the Company's Chief Commercial Officer, President, Treasurer and Secretary. Mr. Percy still remains as a director.

(2) In accordance with SEC rules, this column reflects the aggregate fair value of the stock awards granted during the respective fiscal year computed as of their respective grant dates in accordance with Financial Accounting Standard Board Accounting Standards Codification Topic 718 for stock-based compensation transactions (ASC 718). The valuation assumptions used in determining such amounts are described in Note 8 to our consolidated financial statements included elsewhere in this prospectus.

(3) Does not include perquisites and other personal benefits, or property, unless the aggregate amount of such compensation is more than $10,000. No executive officer earned any non-equity incentive plan compensation, nonqualified deferred compensation, or other compensation, during the periods reported above.

(4) Mr. Owen resigned from the Company effective November 21, 2022.

***<u>Outstanding Equity Awards at Fiscal Year-End</u>***

 

The Company: (i) did not grant any stock options to its executive officers or directors during the years ended December 31, 2021 and December 31, 2020; (ii) did not have any outstanding equity awards as of December 31, 2020; and (iii) had no options exercised by its Named Executive Officers in the fiscal years ending December 31, 2021 and December 31, 2020.

***<u>Compensation of Directors</u>***

 

The following table sets forth summary information concerning the compensation we paid to non-executive directors during the years ended December 31, 2021 and December 31, 2020.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Fees Earned or Paid in Cash <br> ($)** | **Stock Awards <br> ($)** | **Option Awards <br> ($)** | **Non-Equity Incentive Plan Compensation <br> ($)** | **Nonqualified <br> Deferred <br> Compensation <br> Earnings<br> ($)** | **All Other Compensation <br> ($)** | **Total** |
| Dan Bates | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Christopher Percy | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Dr. Michael Dorsey | $4500 | $14000 | $0 | $0 | $0 | $0 | $18500 |

---

\* The table above does not include the amount of any expense reimbursements paid to the above directors. No directors received any Stock Awards, Non-Equity Incentive Plan Compensation, Change in Pension Value and Nonqualified Deferred Compensation Earnings during the period presented. Does not include perquisites and other personal benefits, or property, unless the aggregate amount of such compensation is more than $10,000.

***<u>Employment Agreements</u>***

*<u>Dan Bates</u>*

 

We entered into an employment agreement with Dan Bates (the "Bates Employment Agreement") on May 27, 2020 for a term of three years. Under the Bates Employment Agreement, Mr. Bates serves as our Chief Executive Officer and President. He receives a monthly base salary of $20,000, provided that $7,500 per month is deferred until we raise a minimum of $250,000 in a financing, which financing was raised in February 2021. Mr. Bates is also eligible to receive a quarterly revenue bonus of 10% of our consolidated gross revenue for such quarter, which shall be paid in cash or Common Stock, as determined by the Board ("Revenue Bonus").

The Bates Employment Agreement provides that Mr. Bates is eligible to participate in our employee stock option plan, life, health, accident, disability insurance plans, pension plans and retirement plans, in effect from time to time, to the extent and on such terms and conditions as we customarily make such plans available to our senior executives. In addition, he is entitled to three weeks of paid vacation per year.

The Bates Employment Agreement provides that it shall continue until terminated (i) upon the death of Mr. Bates; (ii) upon the delivery to Mr. Bates of written notice of termination by us if Mr. Bates suffers a physical or mental disability rendering, in the Board's reasonable judgment, Mr. Bates unable to perform his duties and obligations under the Bates Employment Agreement for either 90 consecutive days or 190 days in any 12-month period; (iii) upon delivery to Mr. Bates of written notice of termination by us for Cause, as such term is defined in the Bates Employment Agreement; or (iv) upon delivery of written notice from Mr. Bates to us for Good Reason, as such term is defined in the Bates Employment Agreement. The Bates Employment Agreement also provided that until we have obtained $2,000,000 in gross proceeds from a financing or series of financings the Bates Employment Agreement may be terminated by either party on thirty (30) days' notice, which financing was obtained and therefore the Bates Employment Agreement can no longer be terminated on thirty (30) days' notice.

Mr. Bates is bound by certain confidentiality provisions pursuant to the Bates Employment Agreement.

If Mr. Bates' employment is terminated for Good Reason, in addition to paying Mr. Bates all outstanding sums due and owing to him at the time of separation, we are also required to pay Mr. Bates an amount equal to six (6) months of his then-current Base Salary in the form of salary continuation (the "<u>Severance Payments</u>"), plus payment of the medical insurance premium for Mr. Bates and his family.

Notwithstanding the reason for Mr. Bates' termination he is entitled to: (i) all benefits payable under the applicable benefit plans through the date of termination, (ii) any accrued but unused vacation earned by Mr. Bates through the date of termination; (iii) reimbursement for any business expenses incurred by Mr. Bates prior to the date of termination; and (iv) the prorated portion of any Revenue Bonus to which he is entitled.

The receipt of any termination benefits described above is subject to Mr. Bates' execution of a release of claims in favor of us.

In the event of Mr. Bates' termination due to death or disability, Mr. Bates or his estate shall be entitled to all severance benefits (including, without limitation, the Severance Payments) as well as retaining any options vested as of the date of termination.

Effective as of February 9, 2021, the Bates Employment Agreement was amended for purposes of extending the term to five years, expiring on May 27, 2025, and issuing Mr. Bates 2,000,000 shares of our Series C Convertible Preferred Stock.

*<u>Christopher Percy</u>*

 

Effective as of July 30, 2022, Mr. Percy was terminated as the Company's Chief Commercial Officer, President, Treasurer and Secretary We entered into an employment agreement with Christopher Percy (the "Percy Employment Agreement") effective as of June 1, 2020 for a term of two years, which was terminated by the Company effective as of July 30, 2022.

Pursuant to the Percy Employment Agreement, Mr. Percy is subject to a one-year post-termination non-compete and non-solicit of employees and clients. He is also bound by confidentiality provisions.

Pursuant to the Percy Employment Agreement, Mr. Percy shall be entitled to receive severance equal to one month's salary if he is terminated by the Company for any reason other than disability or death. The severance payment in the amount of $19,250 has not yet been made pending the current litigation involving the Company and Mr. Percy.

*<u>John Owen</u>*

 

We entered into a consulting agreement with John Owen, effective as of July 1, 2021, ("Owen Consulting Agreement") to serve as our Chief Operating Officer. Mr. Owen's compensation is $12,500 per month. On December 16, 2021, we granted 500,000 shares of Common Stock to Mr. Owen for his services. Mr. Owen's consulting agreement and his role as Chief Operating Officer were terminated effective as of November 21, 2022. Per the terms of the separation agreement with Mr. Owen, the Company acknowledges past due salary of $62,500. The Company made an initial payment of $2,500 and agreed to pay $5,000 a month beginning in January 2023.

 

*<u>Rachel Boulds</u>*

The Company entered into a consulting agreement with Rachel Boulds, effective as of May 1, 2021, ("Boulds Consulting Agreement") to serve as part-time Chief Financial Officer for compensation of $5,000 per month. On February 22, 2021, Ms. Boulds was granted 500,000 shares of Common Stock for her services. On December 14, 2022, Ms. Boulds was granted 2,000,000 shares of Common Stock for her services.

 

**Certain Relationships and Related Party Transactions**

Except as discussed below or otherwise disclosed above under "Executive and Director Compensation", which information is incorporated by reference where applicable in this "Certain Relationships and Related Transactions, and Director Independence" section, the following sets forth a summary of all transactions since January 1, 2020, or any currently proposed transaction, in which the Company was to be a participant and the amount involved exceeded or exceeds the lesser of $120,000 or one percent of the average of the Company's total assets at the fiscal year-end for December 31, 2021 and December 31, 2020, and in which any officer, director, or any stockholder owning greater than five percent (5%) of our outstanding voting shares, nor any member of the above referenced individual's immediate family, had or will have a direct or indirect material interest (other than compensation described above under "Executive and Director Compensation"). We believe the terms obtained or consideration that we paid or received, as applicable, in connection with the transactions described below were comparable to terms available or the amounts that would be paid or received, as applicable, in arm's-length transactions.

On May 19, 2020, we entered into an Exchange Agreement with Clean-Seas and Dan Bates, the sole shareholder of Clean-Seas and our Chief Executive Officer. Pursuant to the terms of the Exchange Agreement, we issued 2,500,000 shares of Common Stock, at $0.01 per share, the agreed upon purchase price, to Clean-Seas in exchange for 100% of the outstanding stock of Clean-Seas. Clean-Seas became our wholly-owned subsidiary on May 19, 2020.

On September 17, 2020, the Company granted Jea So, our former Vice President and Director, 500,000 shares of Common Stock for services. The shares were valued at the closing stock price on the date of grant of $0.11, for total non-cash compensation of $55,000.

On February 1, 2021, we granted 20,000 shares of Common Stock to Mr. Ibrahim for services. The shares were valued at $0.14, the closing stock price on the date of grant, for total non-cash expense of $2,800. On September 30, 2021, the Company granted 160,000 shares of Common Stock to Mr. Ibrahim for services. The shares were valued at $0.10, the closing stock price on the date of grant, for total non-cash expense of $14,930. As of December 31, 2022, the shares have not yet been issued by the transfer agent and are disclosed as Common Stock to be issued.

On December 16, 2021, we granted Michael Dorsey, Director, 500,000 shares of Common Stock. The shares were valued at $0.028, the closing stock price on the date of grant, for total non-cash expense of $14,000.

As of March 31, 2022, December 31, 2021 and December 31, 2020, we owed Erfran Ibrahim, former CTO, $60,000, $60,000 and $0, respectively, for accrued compensation.

As of March 31, 2022, December 31, 2021 and December 31, 2020, we owed Christopher Percy, President, Treasurer and Chief Commercial Officer, $156,250, $158,500 and $87,500, respectively, for accrued compensation.

As of March 31, 2022, December 31, 2021 and December 31, 2020, the Company owed Dan Bates, CEO, $90,000, $70,000 and $45, 0000, respectively, for accrued compensation. In addition, Mr. Bates, loaned the Company $100 to be used to open the Company's bank account and such amount was repaid on May 26, 2022.

On December 14, 2022, we granted Michael Dorsey, Director, 2,000,000 shares of Common Stock. The shares were valued at $0.035, the closing stock price on the date of grant, for total non-cash expense of $70,000.

On December 14, 2022, we granted Greg Boehmer, Director, 2,000,000 shares of Common Stock. The shares were valued at $0.035, the closing stock price on the date of grant, for total non-cash expense of $70,000.

On December 14, 2022, we granted Rachel Boulds, CFO, 2,000,000 shares of Common Stock. The shares were valued at $0.035, the closing stock price on the date of grant, for total non-cash expense of $70,000.

 ****

***<u>Review, Approval and Ratification of Related Party Transactions</u>***

Our board of directors recognizes the fact that transactions with related persons present a heightened risk of conflicts of interest and/or improper valuation (or the perception thereof). Our board of directors is in the process of adopting a written policy on transactions with related persons that is in conformity with the requirements for issuers having publicly held common stock that is listed on Nasdaq. We anticipate that under the new policy:

● any related person transaction, and any material amendment or modification to a related person transaction, must be reviewed and approved or ratified by the Board; and

● any employment relationship or transaction involving an executive officer and any related compensation must be approved by the compensation committee of the board of directors or recommended by the compensation committee to the board of directors for its approval.

In connection with the review and approval or ratification of a related person transaction:

● management must disclose to the committee or disinterested directors, as applicable, the name of the related person and the basis on which the person is a related person, the material terms of the related person transaction, including the approximate dollar value of the amount involved in the transaction, and all the material facts as to the related person's direct or indirect interest in, or relationship to, the related person transaction;

● management must advise the committee or disinterested directors, as applicable, as to whether the related person transaction complies with the terms of our agreements governing our material outstanding indebtedness that limit or restrict our ability to enter into a related person transaction;

● management must advise the committee or disinterested directors, as applicable, as to whether the related person transaction will be required to be disclosed in our applicable filings under the Securities Act or the Exchange Act, and related rules, and, to the extent required to be disclosed, management must ensure that the related person transaction is disclosed in accordance with the Securities Act and the Exchange Act and related rules; and

● management must advise the committee or disinterested directors, as applicable, as to whether the related person transaction constitutes a "personal loan" for purposes of Section 402 of the Sarbanes-Oxley Act.

In addition, the related person transaction policy provides that the committee or disinterested directors, as applicable, in connection with any approval or ratification of a related person transaction involving a non-employee director, should consider whether such transaction would compromise the director's status as an "independent," "outside," or "non-employee" director, as applicable, under the rules and regulations of the SEC, the Nasdaq Stock Market, and the Code.

In addition, our Code of Business Conduct and Ethics (described above under "Management—Code of Ethics"), which is applicable to all of our employees, officers and directors, requires that all employees, officers and directors avoid any conflict, or the appearance of a conflict, between an individual's personal interests and our interests.

***<u>Conflicts Related to Other Business Activities</u>***

The persons serving as our officers and directors have existing responsibilities and, in the future, may have additional responsibilities, to provide management and services to other entities in addition to us. As a result, conflicts of interest between us and the other activities of those persons may occur from time to time.

We will attempt to resolve any such conflicts of interest in our favor. Our officers and directors are accountable to us and our stockholders as fiduciaries, which requires that such officers and directors exercise good faith and integrity in handling our affairs. A stockholder may be able to institute legal action on our behalf or on behalf of that stockholder and all other similarly situated stockholders to recover damages or for other relief in cases of the resolution of conflicts in any manner prejudicial to us.

***<u>Director Independence</u>***

 

We may, in the future, apply for our Common Stock to be listed on the Nasdaq Capital Market, or Nasdaq. Under the rules of Nasdaq, independent directors must comprise a majority of a listed company's board of directors within one year of the completion of its initial public offering. In addition, the rules of Nasdaq require that, subject to specified exceptions, each member of a listed company's audit, compensation and corporate governance and nominating committees be independent. Audit committee members and compensation committee members must also satisfy the independence criteria set forth in Rule 10A-3 and Rule 10C-1, respectively, under the Exchange Act. Under the rules of Nasdaq, a director will only qualify as an "independent director" if, in the opinion of that company's board of directors, that person does not have a relationship that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director.

To be considered to be independent for purposes of Rule 10A-3 and under the rules of Nasdaq, a member of an audit committee of a listed company may not, other than in his or her capacity as a member of the audit committee, the board of directors, or any other board of directors committee: (1) accept, directly or indirectly, any consulting, advisory, or other compensatory fee from the listed company or any of its subsidiaries; or (2) be an affiliated person of the listed company or any of its subsidiaries.

To be considered independent for purposes of Rule 10C-1 and under the rules of Nasdaq, the board of directors must affirmatively determine that each member of the compensation committee is independent, including a consideration of all factors specifically relevant to determining whether the director has a relationship to the company which is material to that director's ability to be independent from management in connection with the duties of a compensation committee member, including, but not limited to: (i) the source of compensation of such director, including any consulting, advisory or other compensatory fee paid by the company to such director; and (ii) whether such director is affiliated with the company, a subsidiary of the company or an affiliate of a subsidiary of the company.

Our board of directors undertook a review of its composition, the composition of its committees and the independence of our directors and considered whether any director has a material relationship with us that could compromise his or her ability to exercise independent judgment in carrying out his or her responsibilities. Based upon information requested from and provided by each non-employee director concerning his or her background, employment and affiliations, including family relationships, our board of directors has determined that none of Messrs. Ross, Melvin, and Shallcross have relationships that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director and that each of these directors is "independent" as that term is defined under the rules of Nasdaq and Rule 10A-3 and Rule 10C-1under the Exchange Act.

In making these determinations, our board of directors considered the current and prior relationships that each non-employee director has with our company and all other facts and circumstances our board of directors deemed relevant in determining their independence, including the beneficial ownership of our capital stock by each non-employee director, and the transactions involving them described in the section titled "Certain Relationships and Related Party Transactions."

We have determined that Dr. Michael Dorsey, Gregg Boehmer and Bart Fisher are independent members of our Board, as that term is defined in Rule 5605(a)(2) of the Nasdaq Listing Rules.

**Principal Stockholders**

The following table sets forth certain information, as of January 23, 2023, with respect to the beneficial ownership of the outstanding common stock by (i) any holder of more than five (5%) percent; (ii) each of the Company's executive officers and directors; and (iii) the Company's directors and executive officers as a group. Except as otherwise indicated, each of the stockholders listed below has sole voting and investment power over the shares beneficially owned. Except as otherwise indicated, each of the stockholders listed below has sole voting and investment power over the shares beneficially owned. .

Beneficial ownership is determined in accordance with the rules of the SEC and includes voting and/or investing power with respect to securities. These rules generally provide that shares of Common Stock subject to options, warrants or other convertible securities that are currently exercisable or convertible, or exercisable or convertible within 60 days of the Date of Determination, are deemed to be outstanding and to be beneficially owned by the person or group holding such options, warrants or other convertible securities for the purpose of computing the percentage ownership of such person or group, but are not treated as outstanding for the purpose of computing the percentage ownership of any other person or group.

To our knowledge, except as indicated in the footnotes to this table and pursuant to applicable community property laws, as of the Date of Determination, (a) the persons named in the table have sole voting and investment power with respect to all shares of Common Stock shown as beneficially owned by them, subject to applicable community property laws; and (b) no person owns more than 5% of our Common Stock. Unless otherwise indicated, the address for each of the officers or directors listed in the table below is 2711 N. Sepulveda Blvd., Suite #1051, Manhattan Beach, California 90266.

We have determined beneficial ownership in accordance with the rules of the SEC, and thus it represents sole or shared voting or investment power with respect to our securities. Unless otherwise indicated below, to our knowledge, the persons and entities named in the table have sole voting and sole investment power with respect to all shares that they beneficially owned, subject to community property laws where applicable. The information does not necessarily indicate beneficial ownership for any other purpose, including for purposes of Sections 13(d) and 13(g) of the Exchange Act.

---

| | | |
|:---|:---|:---|
|  | **Shares Beneficially Owned** | **Percentage Ownership** |
| *5% Beneficial Owners* |  |  |
| Series B Convertible Non-Voting Preferred Stock Holders<sup>(1)</sup> | 20000000 | 4.8% |
| *Executive Officers and Directors* |  |  |
| Dan Bates<sup>(2)</sup> | 24500000 | 5.9% |
| Christopher Percy | 7200000 | 1.7% |
| Rachel Boulds | 2500000 | \*% |
| Dr. Michael Dorsey | 2500000 | \*% |
| Greg Boehmer | 3000000 | \*% |
| Daniel Harris | 3208340 | \*% |
|  Bart Fisher | 0 | 0% |
| **All current directors and officers as a group (5 persons)** | **62908340** | **15.16%** |

---

\*less than one percent

&nbsp;&nbsp;&nbsp;&nbsp;(1) Includes 20,000,000 shares
 of Common Stock that would be issued upon conversion of the Series B Convertible Non-Voting Preferred Stock, which conversion automatically
 occurred on January 1, 2023; however, the Company and holders of the Series B Convertible Non-Voting Preferred Stock are
 currently in a dispute and the Company's Transfer Agent has been instructed to not issue the shares of Common Stock until such
 dispute has been resolved. Accordingly, although the shares of Common Stock thereunder have not been formally issued as
 of January 23, 2023, the shares of Series B Non-Voting Convertible Preferred Stock are no longer outstanding.

(2) Includes 20,000,000 shares
 of Common Stock to be issued upon conversion of the Series C Preferred Stock owned by Mr. Bates, which conversion automatically
 occurred on January 1, 2023, but has not been effectuated as of January 23, 2023.

***<u>Change of Control</u>***

 

The Company is not aware of any arrangements which may at a subsequent date result in a change of control of the Company.

**Description of Capital Stock**

*The following summary is a description of the material terms of our capital stock and is not complete.* 

The following description of our capital stock and provisions of our certificate of incorporation and by-laws are summaries and are qualified by reference to the certificate of incorporation and by-laws. We urge you to read our certificate and our by-laws, as in effect immediately following the closing of this offering, which are included as exhibits to the registration statement of which this prospectus forms a part.

Certain provisions of our certificate and our by-laws summarized below may be deemed to have an anti-takeover effect and may delay or prevent a tender offer or takeover attempt that a stockholder might consider in its best interest, including those attempts that might result in a premium over the market price for the shares of Common Stock.

***<u>Authorized Capitalization</u>***

 ****

The total number of authorized shares of our Common Stock is 2,010,000,000 shares, $0.01 par value per share, of which 2,000,000,000 shares are Common Stock, and 10,000,000 shares are preferred stock.

***<u>Common Stock</u>***

 ****

Shares of our Common Stock have the following rights, preferences, and privileges:

*Voting*

Each holder of Common Stock is entitled to one vote for each share of Common Stock held on all matters submitted to a vote of stockholders. Any action at a meeting at which a quorum is present will be decided by a majority of the voting power present in person or represented by proxy, except in the case of any election of directors, which will be decided by a plurality of votes cast. There is no cumulative voting.

*Dividends*

Holders of our Common Stock are entitled to receive dividends when, as and if declared by our board of directors out of funds legally available for payment, subject to the rights of holders, if any, of any class of stock having preference over the Common Stock. Any decision to pay dividends on our Common Stock will be at the discretion of our board of directors. Our board of directors may or may not determine to declare dividends in the future. See "Dividend Policy." The board's determination to issue dividends will depend upon our profitability and financial condition, any contractual restrictions, restrictions imposed by applicable law and the SEC, and other factors that our board of directors deems relevant.

*Liquidation Rights*

In the event of a voluntary or involuntary liquidation, dissolution or winding up of the company, the holders of our Common Stock will be entitled to share ratably on the basis of the number of shares held in any of the assets available for distribution after we have paid in full, or provided for payment of, all of our debts and after the holders of all outstanding series of any class of stock have preference over the Common Stock, if any, have received their liquidation preferences in full.

*Other*

Our issued and outstanding shares of Common Stock are fully paid and nonassessable. Holders of shares of our Common Stock are not entitled to preemptive rights. Shares of our Common Stock are not convertible into shares of any other class of capital stock, nor are they subject to any redemption or sinking fund provisions.

***<u>Preferred Stock</u>***

*<u>Series A Convertible Preferred Stock</u>*

 

On May 5, 2015, the Company created a series of preferred stock, designating 1,000,000 shares as Series A Convertible Preferred Stock, which ranks senior to the Company's Common Stock upon the liquidation, dissolution or winding up of the Company. The Series A Convertible Preferred Stock does not bear a dividend. The holders of the Series A Convertible Preferred Stock are entitled to 100 votes and shall vote together with the holders of Common Stock. Each share of the Convertible Preferred Series A Stock is convertible into one hundred shares of Common Stock. Common Stock subject to adjustment for stock splits and stock combinations. No shares of Series A Convertible Preferred Stock are outstanding.

*<u>Series A Redeemable Preferred Stock</u>*

 

On September 21, 2020, the Company created a series of preferred stock, designating 2,000,000 shares as Series A Redeemable Preferred Stock, which ranks senior to the Company's Common Stock upon the liquidation, dissolution or winding up of the Company. The Series A Redeemable Preferred Stock does not bear a dividend or have voting rights and is not convertible into shares of our Common Stock. No shares of Series A Redeemable Preferred Stock are outstanding.

*<u>Series B Convertible Non-Voting Preferred Stock</u>*

On December 14, 2020, the Company designated 2,000,000 shares of its authorized preferred stock as Series B Convertible Non-Voting Preferred Stock ("Series B Preferred Stock"). The Series B Preferred Stock does not bear a dividend or have voting rights. Each share of Series B Preferred Stock initially converts into 10 shares of Common Stock, subject to adjustment for stock splits and stock combinations. The Series B Preferred Stock automatically converted on January 1, 2023 into shares of Common Stock; however, the Company and holders of the Series B Convertible Non-Voting Preferred Stock are currently in a dispute and the Company's Transfer Agent has been instructed to not issue the shares of Common Stock until such dispute has been resolved. Accordingly, although the shares of Common Stock thereunder have not been formally issued as of January 23, 2023, the shares of Series B Non-Voting Convertible Preferred Stock are no longer outstanding.

Holders of our Series B Preferred Stock have anti-dilution rights protecting their interests in the Company from the issuance of any additional shares of capital stock for a two year period following conversion of the Preferred Stock calculated at the rate of 20% on a fully diluted basis.

*<u>Series C Convertible Preferred Stock</u>*

 

On February 19, 2021, the Company amended its Articles of Incorporation whereby 2,000,000 shares of preferred stock were designated Series C Convertible Preferred Stock ("Series C Preferred Stock"). The Series C Preferred Stock does not bear a dividend. The holders of the Series C Preferred Stock are entitled to 100 votes per share of Common Stock and shall vote together with the holders of Common Stock. Each share of the Series C Preferred Stock is convertible into ten shares of Common Stock. Common Stock subject to adjustment for stock splits and stock combinations. The Series C Preferred Stock automatically converted on January 1, 2023 into shares of Common Stock; however, although the shares of Common Stock thereunder have not been formally issued as of January 23, 2023, the shares of Series C Preferred Stock are no longer outstanding.

The holders of the Series C Preferred Stock shall have anti-dilution rights the "Anti-Dilution Rights") during the two-year period after the Series C Preferred has been converted into shares of Common Stock at its then effective Conversion Rate such that they maintain in Series C Preferred Stockholders, a 20% interest in the Common Stock and preferred stock of the Company, calculated on a fully-diluted basis.

Dan Bates owned all of the outstanding shares of Series C Preferred Stock.

*<u>Convertible Notes and Outstanding Warrants</u>*

 

On March 31, 2022, we issued units consisting of a promissory note in the principal amount of $360,000 and warrant to purchase up to 900,000 shares of Common Stock (the "March 2022 Warrant") for gross proceeds of $300,000. The note was issued at an original issue discount of 20% and bears interest at a rate of 8% per annum. The note is convertible into shares of Common Stock at a conversion price of $0.02 provided that if we effect a Qualified Offering then the conversion price is a 20% discount to the offering price of the Common Stock in the Qualified Offering. The note may be prepaid at any time after the six- month anniversary of issuance at a price equal to 120% of the principal amount. The warrant has an exercise period that expires on March 31, 2025 and has an exercise price equal to a 25% premium of a Qualified Public Offering of in the event of the sale of our company prior to a Qualified Public Offering at a 125% premium to the per share sale price. A Qualified Public Offering is defined as a public offering pursuant to a registration statement declared effective by the SEC with minimum gross proceeds of $10 million pursuant to which our Common Stock is listed for trading on the Nasdaq or a similar nationally recognized exchange. The warrant is exercisable on a cashless basis if after the six-month anniversary of the issue date there is no effective registration statement for the resale of the shares underlying the warrant. The warrant provides for adjustment upon subdivisions and combinations.

On December 9, 2022, the Company entered into the Purchase Agreement with Coventry, pursuant to which the Company issued to Coventry on that date a Promissory Note (the "Note") in the principal amount of $300,000 (the "Principal Amount") in exchange for a purchase price of $255,000. The proceeds of the Note will be used by the Company for general working capital purposes. In addition, the Company issued to Coventry 15,500,000 shares of Common Stock (the "Commitment Stock"), of which 12,500,000 shares of Commitment Stock are to be returned to the Company upon the Company's filing of the registration statement of which this prospectus forms a part on or before 45 calendar days after the date of the Purchase Agreement.

Per the terms of the Purchase Agreement the Company issued 15,500,000 shares of its Common Stock to Coventry. If the Company files an initial Registration Statement within forty-five calendar days from the date of the Note, then Coventy, pursuant to its mandatory obligations thereunder, shall, within ten (10) calendar days thereafter, return to the Company's treasury for cancellation twelve million five hundred thousand (12,500,000) shares of Common Stock.

The Note bears "Guaranteed Interest" at the rate of 5% per annum for the 12 months from and after the date of issuance (notwithstanding the 11-month term of the Note for an aggregate Guaranteed Interest of fifteen thousand Dollars ($15,000.00), all of which Guaranteed Interest shall be deemed earned as of the date of the Note. The Principal Amount and the Guaranteed Interest are due and payable in seven equal monthly payments (each, a "Monthly Payment") of forty-five thousand and 00/100ths Dollars ($45,000.00), commencing on May 6, 2023 and continuing on the 6<sup>th</sup> day of each month thereafter (each, a "Monthly Payment Date") until paid in full not later than November 6, 2023 (the "Maturity Date"), or such earlier date as the Note is required or permitted to be repaid as provided therein, and to pay such other interest to Coventry on the aggregate unconverted and then outstanding Principal Amount of the Note in accordance with the provisions thereof.

Upon an event of default under the Note, the outstanding principal and interest thereon may be converted, at the option of Coventry, into shares of Common Stock at a conversion price equal to 90% per share of the lowest per-share trading price during the 20 trading day period before the conversion.

***<u>Common Stock</u>***

***Anti-Takeover Provisions***

 

Some of the provisions of Nevada law, our Articles of Incorporation and our Bylaws may have the effect of delaying, deferring or discouraging another person from acquiring control of our company or removing our incumbent officers and directors. These provisions, summarized below, are expected to discourage certain types of coercive takeover practices and inadequate takeover bids. These provisions are also designed to encourage persons seeking to acquire control of us to first negotiate with our board of directors. We believe that the benefits of increased protection against an unfriendly or unsolicited proposal to acquire or restructure us outweigh the disadvantages of discouraging such proposals. Among other things, negotiation of such proposals could result in an improvement of their terms.

Nevada Revised Statutes ("NRS") Sections 78.411 to 78.444 inclusive apply to combinations between resident domestic corporations (defined as a Nevada domestic corporation that has 200 or more stockholders of record) and certain affiliated stockholders (collectively, the "Interested Shareholder Combination Statutes"). We have elected not to be governed by the Interested Shareholder Combination Statutes in the future. We do not anticipate this election to have any immediate effect on the rights of existing stockholders. To the extent that we qualify as a resident domestic corporation in the future, the Board will be able to enter into acquisitions and combinations with entities affiliated with its executive officer, directors and control shareholders with greater ease, including without limitation, without the requirement of obtaining the approval of the stockholders in certain instances.

The Nevada Interested Shareholder Combination Statutes generally prohibit a Nevada corporation, with shares registered under section 12 of the Exchange Act and with 200 or more stockholders of record, from engaging in a combination (defined in the statute to include a variety of transactions, including mergers, asset sales, issuance of stock and other actions resulting in a financial benefit to the Interested Stockholder) with an Interested Stockholder (defined in the statute generally as a person that is the beneficial owner of 10% or more of the voting power of the outstanding voting shares), for a period of three years following the date that such person became an Interested Stockholder unless the board of directors of the corporation first approved either the combination or the transaction that resulted in the stockholder's becoming an Interested Stockholder. If this approval is not obtained, the combination may be consummated after the three year period expires if either (a) (1) the board of directors of the corporation approved the combination or the purchase of the shares by the Interested Stockholder before the date that the person became an Interested Stockholder, (2) the transaction by which the person became an Interested Stockholder was approved by the board of directors of the corporation before the person became an interested stockholder, or (3) the combination is approved by the affirmative vote of holders of a majority of voting power not beneficially owned by the Interested Stockholder at a meeting called no earlier than three years after the date the Interested Stockholder became such; or (b) the aggregate amount of cash and the market value of consideration other than cash to be received by all holders of Common Stock and holders of any other class or series of shares not beneficially owned by an Interested Stockholder meets the minimum requirements set forth in NRS Sections 78.441 through 78.444.

The NRS also limits the acquisition of a controlling interest in a Nevada corporation with 200 or more stockholders of record, at least 100 of whom have Nevada addresses appearing on the stock ledger of the corporation, and that does business in Nevada directly or through an affiliated corporation. According to the NRS, an acquiring person who acquires a controlling interest in an issuing corporation may not exercise voting rights on any control shares unless such voting rights are conferred by a majority vote of the disinterested stockholders of the issuing corporation at a special or annual meeting of the stockholders. In the event that the control shares are accorded full voting rights and the acquiring person acquires control shares with a majority or more of all the voting power, any stockholder, other than the acquiring person, who does not vote in favor of authorizing voting rights for the control shares is entitled to demand payment for the fair value of such person's shares.

Under the NRS, a controlling interest means the ownership of outstanding voting shares of an issuing corporation sufficient to enable the acquiring person, individually or in association with others, directly or indirectly, to exercise (1) one-fifth or more but less than one-third, (2) one-third or more but less than a majority, or (3) a majority or more of the voting power of the issuing corporation in the election of directors. Outstanding voting shares of an issuing corporation that an acquiring person acquires or offers to acquire in an acquisition and acquires within 90 days immediately preceding the date when the acquiring person became an acquiring person are referred to as control shares.

*Special Meetings of Stockholders*. Special meetings of the stockholders may be called only by our president or the board of directors pursuant to the requirements of our by-laws or by the president if holders representing 10% of all votes entitled to eb cast on any issue proposed to be considered at the meeting.

*Blank-Check Preferred Stock*. Our board of directors will be authorized to issue, without stockholder approval, preferred stock, the rights of which will be determined at the discretion of the board of directors and that, if issued, could operate as a "poison pill" to dilute the stock ownership of a potential hostile acquirer to prevent an acquisition that our board of directors does not approve.

***<u>Limitations on Liability and Indemnification of Officers and Directors</u>***

Our bylaws provide that we may indemnify our directors, officers and employees to the fullest extent permitted by the laws of the State of Nevada. As authorized by <u>Section 78.751</u> of the Nevada Revised Statutes, we may indemnify our officers and directors against expenses incurred by such persons in connection with any threatened, pending or completed action, suit or proceedings, whether civil, criminal, administrative or investigative, involving such persons in their capacities as officers and directors, so long as such persons acted in good faith and in a manner which they reasonably believed to be in our best interests. If the legal proceeding, however, is by or in our right, the director or officer may not be indemnified in respect of any claim, issue or matter as to which he is adjudged to be liable for negligence or misconduct in the performance of his duty to us unless a court determines otherwise.

Under Nevada law, corporations may also purchase and maintain insurance or make other financial arrangements on behalf of any person who is or was a director or officer (or is serving at our request as a director or officer of another corporation) for any liability asserted against such person and any expenses incurred by him in his capacity as a director or officer. These financial arrangements may include trust funds, self-insurance programs, guarantees and insurance policies.

Additionally, our Articles of Incorporation provide that any person who was or is a party or was or is threatened to be made a party to any threatened, pending, or completed action, suit, or proceeding, whether civil, criminal, administrative, or investigative (whether or not by or in the right of the Company) by reason of the fact that he is or was a director, officer, incorporator, employee, or agent of the Corporation, or is or was serving at the request of the Company as a director, officer, incorporator, employee, partner, trustee, or agent of another corporation, partnership, joint venture, trust, or other enterprise (including an employee benefit plan), is entitled to be indemnified by the Company to the full extent then permitted by law against expenses (including counsel fees and disbursements), judgments, fines (including excise taxes assessed on a person with respect to an employee benefit plan), and amounts paid in settlement incurred by him in connection with such action, suit, or proceeding and, if so requested, the Company is required to advance (within two business days of such request) any and all such expenses to the person indemnified; provided, however, that (i) the foregoing obligation of the Company does not apply to a claim that was commenced by the person indemnified without the prior approval of the Board of Directors.

Such right of indemnification continues as to a person who has ceased to be a director, officer, incorporator, employee, partner, trustee, or agent and inures to the benefit of the heirs and personal representatives of such a person. The indemnification provided by the Articles of Incorporation is not exclusive of any other rights which may be provided now or in the future under any provision of the bylaws, by any agreement, by vote of stockholders, by resolution of disinterested directors, by provisions of law, or otherwise.

Neither our Bylaws nor our Articles of Incorporation, as amended, include any specific indemnification provisions for our officers or directors against liability under the Securities Act. Additionally, insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the Company pursuant to the foregoing provisions, or otherwise, the Company has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable.

***<u>Trading Symbol</u>***

 

Our Common Stock is traded on the OTCQB maintained by OTC Markets Group, Inc. under the symbol "CLNV".

***<u>Transfer Agent</u>***

 

The transfer agent and registrar for our Common Stock is EQ by Equiniti, 1110 Centre Point Curve, Suite 101, Mendota Heights, Minnesota 55120.

***<u>Equity Awards</u>***

 

In general, under Rule 701, any of our employees, directors, officers, consultants or advisors who purchased shares from us in connection with a compensatory stock or option plan or other written agreement before the effective date of this offering is entitled to resell such shares 90 days after the effective date of this offering in reliance on Rule 144, without having to comply with the holding period requirement or other restrictions contained in Rule 144.

The SEC has indicated that Rule 701 will apply to typical stock options granted by an issuer before it becomes subject to the reporting requirements of the Exchange Act, along with the shares acquired upon exercise of such options, including exercises after the date of this prospectus.

None of our outstanding shares of Common Stock were issued in consideration for compensation.

**SELLING SHAREHOLDER**

The Selling Shareholder identified in this prospectus may offer and sell up to (a) 3,000,000 shares of our Common Stock purchased by the Selling Shareholder pursuant to the Purchase Agreement and (b) 20,000,000 shares of our Common Stock issuable to Coventry in the event of a default under the Note, registered for sale herein. The 3,000,000 shares of Common Stock currently owned by Coventry represent approximately 0.73% of our issued and outstanding shares of as January 18, 2023.

The Selling Shareholder may from time to time offer and sell under this prospectus any or all of the shares of Common Stock described under the column "Shares to be Offered" in the table below.

Coventry will be deemed to be an underwriter within the meaning of the Securities Act. Any profits realized by the Selling Shareholder may be deemed to be underwriting commissions.

We cannot give an estimate as to the number of shares of common stock that will actually be held by the Selling Shareholder upon termination of this offering, because the selling security holder may offer some or all of the common stock being registered on its behalf under the offering contemplated by this prospectus or acquire additional shares of common stock. The total number of shares that may be sold hereunder will not exceed the number of shares offered hereby. Please read the section entitled "Plan of Distribution" in this prospectus.

The following table sets forth the name of the Selling Shareholder, the number of shares of our common stock beneficially owned by such stockholder before this offering, the number of shares to be offered for such stockholders' account and the number and (if one percent or more) the percentage of the class to be beneficially owned by such stockholders after completion of the offering. The number of shares owned are those beneficially owned, as determined under the rules of the SEC, and such information is not necessarily indicative of beneficial ownership for any other purpose. Under such rules, beneficial ownership includes any shares of our common stock as to which a person has sole or shared voting power or investment power and any shares of common stock which the person has the right to acquire within 60 days of the date as of which the information is provided, through the exercise of any option, warrant or right, through conversion of any security or pursuant to the automatic termination of a power of attorney or revocation of a trust, discretionary account or similar arrangement, and such shares are deemed to be beneficially owned and outstanding for computing the share ownership and percentage of the person holding such options, warrants or other rights, but are not deemed outstanding for computing the percentage of any other person. Beneficial ownership percentages are calculated based on 414,696,273 shares of our Common Stock outstanding as of January 18, 2023 and including the issuance of such shares to be issued.

Unless otherwise set forth below, (a) the persons and entities named in the table have sole voting and sole investment power with respect to the shares set forth opposite the Selling Shareholder's name, subject to community property laws, where applicable, and (b) no Selling Shareholder had any position, office or other material relationship within the past three years, with us or with any of our predecessors or affiliates. The number of shares of common stock shown as beneficially owned before the offering is based on information furnished to us or otherwise based on information available to us at the timing of the filing of the registration statement of which this prospectus forms a part.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name of Selling Shareholder** | **Shares Beneficially <br> Owned <br> Prior to Offering** | **Shares to be <br> Offered** |  | **Amount <br> Beneficially<br> Owned After<br> Offering %** | **Amount <br> Beneficially<br> Owned After<br> Offering %** |
| Coventry Enterprises, LLC | 23000000 | 23000000 | &nbsp;&nbsp;&nbsp;&nbsp;(1)(2)(3)(4) | 0 | (2) |

---

Notes:

(1) Beneficial ownership is determined in accordance with Securities and Exchange Commission rules and generally includes voting or investment power with respect to shares of common stock. Shares of common stock subject to options, warrants and convertible debentures currently exercisable or convertible, or exercisable or convertible within 60 days, are counted as outstanding. The actual number of shares of common stock issuable upon the conversion of the convertible debentures is subject to adjustment depending on, among other factors, the future market price of our common stock, and could be materially less or more than the number estimated in the table.

(2) Because the selling security holder may offer and sell all or only some portion of the 3,000,000 shares of our common stock being offered pursuant to this prospectus and may acquire additional shares of our common stock in the future, we can only estimate the number and percentage of shares of our common stock that the Selling Shareholder will hold upon termination of the offering. The column titled "Amount Beneficially Owned After Offering" assumes that the Selling Shareholder will sell all of its Shares.

(3) Includes 3,000,000 shares of Commitment Stock issued to Coventry on December 9, 2022, but excludes 12,500,000 shares of Common Stock that are to be returned to the Company upon the Company's filing of this prospectus on or before 45 calendar days after the date of the Purchase Agreement.

(4) Includes 20,000,000 shares of Common Stock
 issuable to Coventry upon an event of default under the Note. Upon an event of default under the Note, the outstanding principal
 and interest thereon may be converted, at the option of Coventry, into shares of Common Stock at a conversion price equal to 90%
 per share of the lowest per-share trading price during the 20 trading day period before the conversion.

**PLAN OF DISTRIBUTION**

We are registering the shares of Common Stock to permit the resale of those shares of Common Stock under the Securities Act from time to time after the date of this Prospectus at the discretion of the holders of such shares of Common Stock. We will not receive any of the proceeds from the sale by the Selling Shareholder of the Common Stock. We will bear all fees and expenses incident to our obligation to register the Common Stock.

The Selling Shareholder and any of its pledgees, assignees and successors-in-interest may, from time to time, sell any or all of its Common Stock on the OTCQB, or any other stock exchange, market, quotation service or trading facility on which the shares are traded or in private transactions, provided that all applicable laws are satisfied. The Selling Shareholder may also sell its Common Stock directly or through one or more underwriters, broker-dealers, or agents. If the shares of Common Stock are sold through underwriters or broker-dealers, the Selling Shareholder will be responsible for underwriting discounts or commissions or agent's commissions. The Common Stock may be sold in one or more transactions at fixed prices, at prevailing market prices at the time of the sale, at varying prices determined at the time of sale, or at negotiated prices. A Selling Shareholder may use any one or more of the following methods when selling shares:

● ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;

● block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction;

● purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

● an exchange distribution in accordance with the rules of the applicable exchange;

● privately negotiated transactions;

● settlement of short sales entered into after the effective date of the registration statement of which this Prospectus is a part;

● broker-dealers may agree with the Selling Shareholder to sell a specified number of such shares at a stipulated price per share;

● through the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise;

● a combination of any such methods of sale; and

● any other method permitted pursuant to applicable law.

The Selling Shareholder may also sell shares pursuant to Rule 144 under the Securities Act, if available, rather than under this Prospectus.

If the Selling Shareholder effect such transactions by selling Common Stock to or through underwriters, broker-dealers, or agents, such underwriters, broker-dealers, or agents may receive commissions in the form of discounts, concessions, or commissions from the Selling Shareholder or commissions from purchasers of the Common Stock for whom they may act as agent or to whom they may sell as principal (which discounts, concessions, or commissions as to particular underwriters, broker-dealers, or agents may be in excess of those customary in the types of transactions involved). Broker-dealers engaged by any Selling Shareholder may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions or discounts from the Selling Shareholder (or, if any broker-dealer acts as agent for the purchaser of shares, from the purchaser) in amounts to be negotiated, but, except as set forth in a supplement to this Prospectus, in the case of an agency transaction not in excess of a customary brokerage commission in compliance with FINRA Rule 2440; and in the case of a principal transaction a markup or markdown in compliance with FINRA IM-2440.

In connection with sales of Common Stock or interests therein, the Selling Shareholder may enter into hedging transactions with broker-dealers or other financial institutions, which may in turn engage in short sales of the Common Stock in the course of hedging in positions they assume. The Selling Shareholder may also sell Common Stock short and deliver Common Stock covered by this Prospectus to close out its short positions and to return borrowed shares in connection with such short sales. The Selling Shareholder may also loan or pledge Common Stock to broker-dealers that in turn may sell such Common Stock. The Selling Shareholder may also enter into option or other transactions with broker-dealers or other financial institutions or the creation of one or more derivative securities which require the delivery to such broker-dealer or other financial institution of Common Stock offered by this Prospectus, which Common Stock such broker-dealer or other financial institution may resell pursuant to this Prospectus (as supplemented or amended to reflect such transaction).

The Selling Shareholder and any broker-dealers or agents that are involved in selling the Common Stock may be deemed to be "underwriters" within the meaning of the Securities Act, in connection with such sales. In such event, any commissions received by, or any discounts or concessions allowed to, any such broker-dealer or agent and any profit on the resale of any Shares purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act. At the time a particular offering of the Common Stock is made, a prospectus supplement, if required, will be distributed that will set forth the aggregate amount of Common Stock being offered and the terms of the offering, including the name or names of any broker-dealers or agents, any discounts, commissions, and other terms constituting compensation from the Selling Shareholder and any discounts, commissions, or concessions allowed or re-allowed or paid to broker-dealers.

Coventry has informed us that it does not have any written or oral agreement or understanding, directly or indirectly, with any person to distribute the Common Stock.

Because the Selling Shareholder may be deemed to be an "underwriter" within the meaning of the Securities Act, it will be subject to the prospectus delivery requirements of the Securities Act, including Rule 172 thereunder. Once this registration statement becomes effective, we intend to file the final prospectus with the SEC in accordance with SEC Rules 172 and 424. Provided we are not the subject of any SEC stop orders and we are not subject to any cease and desist proceedings, the obligation to deliver a final prospectus to a purchaser will be deemed to have been met.

There is no underwriter or coordinating broker acting in connection with the proposed sale of the resale shares by the Selling Shareholder.

Under the securities laws of some states, the Common Stock may be sold in such states only through registered or licensed brokers or dealers. In addition, in some states the Common Stock may not be sold unless such shares have been registered or qualified for sale in such state, or an exemption from registration or qualification is available and is complied with.

There can be no assurance that any Selling Shareholder will sell any or all of the Common Stock registered pursuant to the registration statement of which this Prospectus forms a part.

Under applicable rules and regulations under the Exchange Act, any person engaged in the distribution of the Common Stock may not simultaneously engage in market making activities with respect to the Common Stock for the applicable restricted period, as defined in Regulation M, prior to the commencement of the distribution. In addition, the Selling Shareholder will be subject to applicable provisions of the Exchange Act, and the rules and regulations thereunder, including Regulation M, which may limit the timing of purchases and sales of Common Stock by the Selling Shareholder or any other person. All of the foregoing provisions may affect the marketability of the Common Stock and the ability of any person or entity to engage in market-making activities with respect to the Common Stock.

We will pay all expenses of the registration of the Common Stock, estimated to be approximately $ in total, including, without limitation, SEC filing fees, expenses of compliance with state securities or "blue sky" laws, and legal and accounting fees; provided, however, that a Selling Shareholder will pay all underwriting discounts and selling commissions, if any. We will indemnify the Selling Shareholder against liabilities, including some liabilities under the Securities Act, in accordance with applicable registration rights agreements, if any, or the Selling Shareholder will be entitled to contribution. We may be indemnified by the Selling Shareholder against civil liabilities, including liabilities under the Securities Act, that may arise from any written information furnished to us by the Selling Shareholder specifically for use in this Prospectus, in accordance with the related registration rights agreement, or we may be entitled to contribution.

We agreed to keep this prospectus effective until the earlier of (i) the date on which the Common Stock may be resold by the Selling Shareholder without registration and without the requirement to be in compliance with Rule 144(c)(1) and otherwise without restriction or limitation pursuant to Rule 144 or (ii) all of the Common Stock have been sold pursuant to this Prospectus or Rule 144 under the Securities Act or any other rule of similar effect.

Once sold under the registration statement of which this prospectus forms a part, the Common Stock will be freely tradable in the hands of persons other than our affiliates.

**Market for Common Equity and Related Stockholder Matters**

***<u>Market Information</u>***

 ****

Our Common Stock is quoted on the OTCQB maintained by OTC Markets Group, Inc. under the symbol "CLNV." The OTCQB is a network of security dealers who buy and sell stock. The dealers are connected by a computer network that provides information on current "bids" and "asks", as well as volume information. There can be infrequent trading volume, which precipitates wide spreads in the quotes for our Common Stock, on any given day. On January 18, 2023, the last reported sale price of our Common Stock on the OTC Market was $0.074 per share.

The following table sets forth the range of high and low sales prices for our Common Stock for each of the periods indicated as reported by OTC Markets Group, Inc. These quotations reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not necessarily represent actual transactions.

---

| | | |
|:---|:---|:---|
|  | **HIGH** | **LOW** |
| **Year Ended December 31, 2020** | **Year Ended December 31, 2020** | **Year Ended December 31, 2020** |
| &nbsp;&nbsp;&nbsp;First Quarter | $0.11 | $0.03 |
| &nbsp;&nbsp;&nbsp;Second Quarter | $0.36 | $0.05 |
| &nbsp;&nbsp;&nbsp;Third Quarter | $0.29 | $0.09 |
| &nbsp;&nbsp;&nbsp;Fourth Quarter | $0.11 | $0.07 |
| **Year Ending December 31, 2021** |  |  |
| &nbsp;&nbsp;&nbsp;First Quarter | $0.21 | $0.09 |
| &nbsp;&nbsp;&nbsp;Second Quarter | $0.17 | $0.06 |
| &nbsp;&nbsp;&nbsp;Third Quarter | $0.07 | $0.02 |
| &nbsp;&nbsp;&nbsp;Fourth Quarter | $0.05 | $0.02 |
| **Third Quarter Ending September 30, 2022** |  |  |
| &nbsp;&nbsp;&nbsp;First Quarter | $0.10 | $0.02 |
| &nbsp;&nbsp;&nbsp;Second Quarter | $0.07 | $0.02 |
| &nbsp;&nbsp;&nbsp;Third Quarter | $0.02 | $0.02 |

---

***<u>Shareholders</u>***

 ****

As of January 18, 2023, we had 160 shareholders of record of our Common Stock. The number of stockholders of record does not include beneficial owners of our Common Stock, whose shares are held in the names of various dealers, clearing agencies, banks, brokers and other fiduciaries.

***<u>Dividends</u>***

 ****

We have never declared or paid a cash dividend on our Common Stock. We do not expect to pay cash dividends on our Common Stock in the foreseeable future. We currently intend to retain our earnings, if any, for use in our business. Any dividends declared in the future will be at the discretion of our Board and subject to any restrictions that may be imposed by our lenders.

***<u>Penny Stock Regulation</u>***

 

Shares of our Common Stock will probably be subject to rules adopted by the SEC that regulate broker-dealer practices in connection with transactions in "penny stocks." Penny stocks are generally equity securities with a price of less than $5.00 (other than securities registered on certain national securities exchanges or quoted on the Nasdaq, provided that current price and volume information with respect to transactions in those securities is provided by the exchange or system). The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from those rules, deliver a standardized risk disclosure document prepared by the SEC, which contains the following:

● a description of the nature and level of risk in the market for penny stocks in both public offerings and secondary trading;

● a description of the broker's or dealer's duties to the customer and of the rights and remedies;

● a brief, clear, narrative description of a dealer market, including "bid" and "ask" prices for penny stocks and the significance of the spread between the "bid" and "ask" price;

● a toll-free telephone number for inquiries on disciplinary actions;

● definitions of significant terms in the disclosure document or in the conduct of trading in penny stocks; and

● such other information and is in such form (including language, type, size and format), as the SEC shall require by rule or regulation.

Prior to effecting any transaction in penny stock, the broker-dealer also must provide the customer the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. the
 bid
 and
 offer
 quotations
 for
 the
 penny
 stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. the
 compensation
 of
 the
 broker-dealer
 and
 its
 salesperson
 in
 the
 transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. the number of shares to which such bid and ask prices apply, or other comparable information relating to the depth and liquidity of the market for such stock; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. monthly
 account
 statements
 showing
 the
 market
 value
 of
 each
 penny
 stock
 held
 in
 the
 customer's
 account.

In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from those rules, the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser's written acknowledgment of the receipt of a risk disclosure statement, a written agreement to transactions involving penny stocks, and a signed and dated copy of a written suitability statement. These disclosure requirements may have the effect of reducing the trading activity in the secondary market for a stock that becomes subject to the penny stock rules. Holders of shares of our Common Stock may have difficulty selling those shares because our Common Stock will probably be subject to the penny stock rules.

**Legal Matters**

The validity of the securities offered by this prospectus will be passed upon for us by Lucosky Brookman LLP.

**Experts**

The audited financial statements of Clean Vision Corporation as of December 31, 2021 and 2020 and for the years then ended, included in this prospectus and the registration statement have been audited by Fruci & Associates II, PLLC, Spokane, Washington, independent registered public accounting firm, as stated in their as stated in their reports. Such financial statements have been so included in reliance upon the reports of such firm given upon their authority as experts in accounting and auditing.

**Where You Can Find More Information**

We have filed with the SEC a registration statement on Form S-1 under the Securities Act, with respect to the securities offered by this prospectus. This prospectus, which is part of the registration statement, omits certain information, exhibits, schedules and undertakings set forth in the registration statement. For further information pertaining to us and our Common Stock, reference is made to the registration statement and the exhibits and schedules to the registration statement. Statements contained in this prospectus as to the contents or provisions of any documents referred to in this prospectus are not necessarily complete, and in each instance where a copy of the document has been filed as an exhibit to the registration statement, reference is made to the exhibit for a more complete description of the matters involved.

You may read registration statements and certain other filings made with the SEC electronically are publicly available through the SEC's website at https://www.sec.gov. The registration statement, including all exhibits and amendments to the registration statement, has been filed electronically with the SEC. If you do not have internet access, requests for copies of such documents should be directed to Dan Bates, the Company's Chief Executive Officer, at Clean Vision Corporation, 2711 N Sepulveda Blvd #1051, Manhattan Beach, CA 90266.

As a result of this offering, we will become subject to the information and reporting requirements of the Exchange Act, as amended, and, in accordance with this law, will file periodic reports, proxy statements and other information with the SEC. These periodic reports, proxy statements and other information will be available at the SEC's website, www.sec.gov. We also maintain a website www.cleanvisioncorp.com. Upon the completion of this offering, you may access these materials free of charge as soon as reasonably practicable after they are electronically filed with, or furnished to, the SEC. Information contained on our website is not a part of this prospectus, and the inclusion of our website address in this prospectus is an inactive textual reference only.

**Index to Financial Statements**

**Audited Financial Statements**

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;**Page** |
| &nbsp;&nbsp;[Report of Independent Registered Public Accounting Firm](#a_0001) | &nbsp;&nbsp;F-2 |
| &nbsp;&nbsp;[Balance Sheets as of December 31, 2021 and 2020](#a_0002) | &nbsp;&nbsp;F-4 |
| &nbsp;&nbsp;[Statements of Operations for the years ended December 31, 2021 and 2020](#a_0003) | &nbsp;&nbsp;F-5 |
| &nbsp;&nbsp;[Statements of Changes in Stockholders' Deficit for the years ended December 31, 2021 and 2020](#a_0004) | &nbsp;&nbsp;F-6 |
| &nbsp;&nbsp;[Statements of Cash Flows for the years ended December 31, 2021 and 2020](#a_0005) | &nbsp;&nbsp;F-7 |
| &nbsp;&nbsp;[Notes to Audited Financial Statements](#a_0006) | &nbsp;&nbsp;F-8 |

---

![](image_001.jpg)

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Board of Directors and Shareholders of Clean Vision Corp.

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheets of Clean Vision Corp. and Subsidiaries ("the Company") as of December 31, 2021 and 2020, and the related consolidated statements of operations, stockholders' deficit, and cash flows for each of the years in the two-year period ended December 31, 2021 and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021 and 2020, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2021, in conformity with accounting principles generally accepted in the United States of America.

**Going Concern**

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 3 to the financial statements, the Company has an accumulated deficit and recurring losses from operations. These factors raise substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 3. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

**Critical Audit Matters**

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

***Disclosure of Related-Party Transactions — Refer to Note 8 to the financial statements***

 ****

*Critical Audit Matter Description*

 

The Company experienced a significant increase in consulting expenses and transactions during 2021, including those to related parties and stock issuances. There is judgment regarding valuation of stock compensation and accuracy of accounts and disclosures in relation to written terms and verbal adjustments.

*How the Critical Audit Matter Was Addressed in the Audit*

 

Our audit procedures related to evaluating the Company's accounting for related-party transactions included the following, among others:

● Confirmation of consulting contracts, including verbal adjustments to related agreements.

● Independent calculation of stock compensation to consultants (including related parties) and comparison to amounts per the Company.

● Prepared a summary of related party transactions based on our audit and compared to financial statement disclosures to verify accuracy and completeness.

![](image_001.gif)

We have served as the Company's auditor since 2020.

Spokane, Washington

March 28, 2022

**CLEAN VISION CORPORATION** 

**CONSOLIDATED BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | December 31, 2021 | December 31, 2020 |
| **ASSETS** |  | (Restated) |
| Current Assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $835657 | $740 |
| &nbsp;&nbsp;&nbsp;Prepaid | 54000 | 20000 |
| Total Current Assets | 889657 | 20740 |
| Property and equipment | 150505 |  |
| Total Assets | $1040162 | $20740 |
| &nbsp;&nbsp;&nbsp;**<u>LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)</u>** |  |  |
| Current Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $60248 | $21258 |
| &nbsp;&nbsp;&nbsp;Accrued compensation | 308500 | 147500 |
| &nbsp;&nbsp;&nbsp;Accrued expenses | 9502 | 1266 |
| &nbsp;&nbsp;&nbsp;Convertible notes payable, net of discount of $0 and $535,746, respectively |  | 271715 |
| &nbsp;&nbsp;&nbsp;Loan payable | 14500 | 114500 |
| &nbsp;&nbsp;&nbsp;Derivative liability |  | 1075794 |
| &nbsp;&nbsp;&nbsp;Advance from an officer | 100 | 100 |
| &nbsp;&nbsp;&nbsp;Liabilities of discontinued operations | 67093 | 67093 |
| Total current liabilities | 459943 | 1699226 |
| Total Liabilities | 459943 | 1699226 |
| Commitments and contingencies |  |  |
| Mezzanine Equity: |  |  |
| &nbsp;&nbsp;&nbsp;Series B preferred stock to be issued | 625000 | 25000 |
| Total mezzanine equity | 625000 | 25000 |
| Stockholders' Equity (Deficit): |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock, $0.001 par value, 4,000,000 shares authorized; no shares issued and outstanding |  |  |
| &nbsp;&nbsp;&nbsp;Series A Preferred stock, $0.001 par value, 2,000,000 shares authorized; 1,850,000 and 2,000,000 shares issued and outstanding, respectively | 1850 | 2000 |
| &nbsp;&nbsp;&nbsp;Series B Preferred stock, $0.001 par value, 2,000,000 shares authorized; no shares issued and outstanding, respectively |  |  |
| &nbsp;&nbsp;&nbsp;Series C Preferred stock, $0.001 par value, 2,000,000 shares authorized; 2,000,000 and no shares issued and outstanding, respectively | 2000 |  |
| &nbsp;&nbsp;&nbsp;Common stock, $0.001 par value, 2,000,000,000 shares authorized, 312,860,376 and 97,208,516 shares issued and outstanding, respectively | 312861 | 97208 |
| &nbsp;&nbsp;&nbsp;Common stock to be issued | 227544 | 266299 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 12576049 | 5061681 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (13165085) | (7130674) |
| &nbsp;&nbsp;&nbsp;Total stockholders' equity (deficit) | (44781) | (1703486) |
| &nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $1040162 | $20740 |

---

 

*The accompanying notes are an integral part of these consolidated financial statements.*

**CLEAN VISION CORPORATION** 

**CONSOLIDATED STATEMENTS OF OPERATIONS**

---

| | | |
|:---|:---|:---|
|  | For the Years Ended December 31, | For the Years Ended December 31, |
|  | 2021 | 2020 |
|  | | (Restated) |
| Operating Expenses: |  |  |
| &nbsp;&nbsp;&nbsp; Officer compensation | $1315152 | $400000 |
| &nbsp;&nbsp;&nbsp;Consulting | 1955213 | 191500 |
| &nbsp;&nbsp;&nbsp;Professional fees | 413479 | 79827 |
| &nbsp;&nbsp;&nbsp;Payroll expense | 45366 |  |
| &nbsp;&nbsp;&nbsp;Director fees | 18500 |  |
| &nbsp;&nbsp;&nbsp; General and administration expenses | 373095 | 132368 |
| Total operating expense | 4120805 | 803695 |
| Loss from Operations | (4120805) | (803695) |
| Other income (expense): |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | (1187033) | (522981) |
| &nbsp;&nbsp;&nbsp;Change in fair value of derivative | (576573) | 1292687 |
| &nbsp;&nbsp;&nbsp;Loss on investment | (150000) |  |
| &nbsp;&nbsp;&nbsp;Loss on issuance of convertible debt |  | (2006944) |
| Total other expense | (1913606) | (1237238) |
| Net loss before provision for income tax | (6034411) | (2040933) |
| Provision for income tax expense |  |  |
| Net loss from continuing operations | (6034411) | (2040933) |
| Net loss from discontinued operations <br>before provision for income tax |  | (380000) |
| Provision for income tax expense from discontinued operations |  |  |
| Net loss from discontinued operations |  | (380000) |
| Net loss | $(6034411) | $(2420933) |
| Basic and fully diluted loss per share from continuing operations | $(0.03) | $(0.02) |
| Basic and fully diluted loss per share from discontinued operations | $— | $(0.00) |
| Basic and fully diluted loss per share | $(0.03) | $(0.02) |
| Weighted average shares outstanding—basic and diluted | 197675465 | 93617831 |

---

 

*The accompanying notes are an integral part of these consolidated financial statements.*

 

**CLEAN VISION CORPORATION** 

**CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT**

**For the Years Ended December 31, 2021 and 2020**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Series A Preferred Stock | Series A Preferred Stock | Series C Preferred Stock | Series C Preferred Stock | Common Stock | Common Stock | Additional paid | Common Stock | Accumulated | |
|  | Shares | Amount | Shares | Amount | Shares | Amount | In Capital | To be Issued | Deficit |<br>Total |
| Balance, December 31, 2019 |  | $— |  | $— | 103408516 | $103408 | $3278556 | $446125 | $(4709741) | $(881652) |
| Cancellation of common stock |  |  |  |  | (20000000) | (20000) | 20000 |  |  |  |
| Common stock issued for share exchange – related party |  |  |  |  | 2500000 | 2500 | 22500 |  |  | 25000 |
| Stock issued for acquisition | 2000000 | 2000 |  |  |  |  | (2000) |  |  |  |
| Common stock issued for services – related party |  |  |  |  | 500000 | 500 | 54500 |  |  | 55000 |
| Stock issued for services |  |  |  |  | 5800000 | 5800 | 747200 | (179826) |  | 573175 |
| Stock issued for Conversion of debt |  |  |  |  | 5000000 | 5000 | 940925 |  |  | 945925 |
| Net loss |  |  |  |  |  |  |  |  | (2420933) | (2420933) |
| Balance, December 31, 2020 (Restated) | 2000000 | 2000 |  |  | 97208516 | 97208 | 5061681 | 266299 | (7130674) | (1703486) |
| Redemption of preferred | (150000) | (150) |  |  |  |  | 150 |  |  |  |
| Stock issued for services – related party |  |  | 2000000 | 2000 | 4500000 | 4500 | 769250 | (207895) |  | 567855 |
| Stock issued for services |  |  |  |  | 7250000 | 7250 | 799990 | 169140 |  | 976380 |
| Stock issued for Conversion of debt |  |  |  |  | 41701860 | 41703 | 2863178 |  |  | 2904881 |
| Stock issued for cash |  |  |  |  | 162200000 | 162200 | 3081800 |  |  | 3244000 |
| Net loss |  |  |  |  |  |  |  |  | (6034411) | (6034411) |
| Balance, December 31, 2021 | 1850000 | $1850 | 2000000 | $2000 | 312860376 | $312861 | $12576049 | $227544 | $(13165085) | $(44781) |

---

*The accompanying notes are an integral part of these consolidated financial statements.*

**CLEAN VISION CORPORATION** 

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

---

| | | |
|:---|:---|:---|
|  | For the Years Ended <br>December 31, | For the Years Ended <br>December 31, |
|  | 2021 | 2020 |
| Cash Flows from Operating Activities: |  | (Restated) |
| Net loss | $(6034411) | $(2420933) |
| Adjustments to reconcile net loss to net cash used <br>by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Net loss from discontinued operations |  | 380000 |
| &nbsp;&nbsp;&nbsp; Stock issued for services | 1574380 | 218174 |
| &nbsp;&nbsp;&nbsp; Stock issued for acquisition |  | 25000 |
| &nbsp;&nbsp;&nbsp; Stock issued for services – related party | 567855 | 55000 |
| &nbsp;&nbsp;&nbsp;Debt discount amortization | 1162996 | 521716 |
| &nbsp;&nbsp;&nbsp;Loss on investment | 150000 |  |
| &nbsp;&nbsp;&nbsp;Loss on issuance of derivatives |  | 2006944 |
| &nbsp;&nbsp;&nbsp;Change in fair value of derivative | 576573 | (1292687) |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp; Prepaid | (34000) |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | 38990 | 21258 |
| &nbsp;&nbsp;&nbsp;Accruals | 35539 | 11668 |
| &nbsp;&nbsp;&nbsp;Accrued compensation | 161000 | 270000 |
| Net cash used by operating activities | (1801078) | (203860) |
| Cash Flows from Investing Activities: |  |  |
| &nbsp;&nbsp;&nbsp; Investment in 100Bio | (150000) |  |
| &nbsp;&nbsp;&nbsp;Purchase of property and equipment | (150505) |  |
| Net cash used by operating activities | (300505) |  |
| Cash Flows from Financing Activities: |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from convertible notes payable | 686500 | 90000 |
| &nbsp;&nbsp;&nbsp;Payments on convertible notes payable | (594000) |  |
| &nbsp;&nbsp;&nbsp;Proceeds from the sale of common stock | 3244000 |  |
| &nbsp;&nbsp;&nbsp;Proceeds from notes payable | 300000 | 114500 |
| &nbsp;&nbsp;&nbsp;Payments - notes payable | (700000) |  |
| &nbsp;&nbsp;&nbsp;Cash advance – related party |  | 100 |
| Net cash provided by financing activities | 2936500 | 204600 |
| Net change in cash | 834917 | 740 |
| Cash at beginning of period | 740 |  |
| Cash at end of period | $835657 | $740 |
| Supplemental schedule of cash flow information: |  |  |
| &nbsp;&nbsp;&nbsp;Interest paid | $— | $— |
| &nbsp;&nbsp;&nbsp;Income taxes | $— | $— |
| Supplemental non-cash disclosure: |  |  |
| &nbsp;&nbsp;&nbsp;Common stock issued for conversion of debt | $1231461 | $250000 |

---

*The accompanying notes are an integral part of these consolidated financial statements.*

**CLEAN VISION CORPORATION**

**Notes to Consolidated Financial Statements**

**December 31, 2021**

**NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS**

Clean Vision Corporation (the "Company") was incorporated on September 15, 2006 in Nevada under the name Emergency Pest Services. On November 4, 2017, the Company finalized a reverse merger with Byzen Digital, Inc., a Seychelles Corporation. On March 12, 2021, the Company amended its Articles of Incorporation to change its name from Byzen Digital Inc. to Clean Vision Corporation. The Company has also received approval from FINRA to change its ticker symbol to CLNV.

Clean Vision Corporation's scope of interest is to acquire companies operating within the clean energy and sustainable market sector. Acquisitions of strategic interest for the company include renewable energy, including wind, solar and sustainable fuels, sustainable packaging, water purification, AI technologies, and blockchain-based data collection, management, and delivery.

Clean-Seas, Inc. is Clean Vision Corporation's first investment within its newly expanded scope. The acquisition of 100% of Clean Seas is Clean Vision Corporation's first entrance into the clean energy space. Clean Seas has made significant progress in identifying and developing a new business model around the clean energy and waste to energy sectors. Clean Vision Corporation's management team will incorporate the two companies into a single-minded, clean energy-focused entity.

Clean-Seas India Private Limited which was incorporated on November 17, 2021, as a wholly owned subsidiary of Clean-Seas, Inc.

Clean-Seas, Abu Dhabi PVT. LTD was incorporated in Abu Dhabi on December 9, 2021, as a wholly owned subsidiary of the Company.

Endless Energy was incorporated in Nevada on December 10, 2021, as a wholly owned subsidiary of the Company for the purpose of acquiring synergistic companies in the clean energy space.

EcoCell was incorporated on March 4, 2022, as a wholly owned subsidiary of the Company.

**NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

*<u>Basis of Presentation</u>*

The Company's consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP").

*<u>Use of Estimates</u>*

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates include the fair value for derivatives. Actual results could differ from those estimates.

*<u>Concentrations of Credit Risk</u>*

 

We maintain our cash in bank deposit accounts, the balances of which at times may exceed federally insured limits. We continually monitor our banking relationships and consequently have not experienced any losses in our accounts. At times, such deposits may be in excess of the Federal Deposit Insurance Corporation insurable amount ("FDIC"). As of December 31, 2021, the Company had $585,657 of cash above the FDIC's $250,000 coverage limit.

*<u>Cash equivalents</u>*

 

The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. There were no cash equivalents for the years ended December 31, 2021 or 2020.

*<u>Principles of Consolidation</u>*

 

The accompanying consolidated financial statements for the years ended December 31, 2021 and 2020, include the accounts of the Company and its wholly owned subsidiaries, Clean-Seas, Inc. and Clean-Seas India Private Limited, Abu Dhabi PVT. LTD and EndlessEnergy. As of December 31, 2021, there was no activity in either Clean-Seas, Abu Dhabi PVT. LTD or EndlessEnergy.

*<u>Reclassifications</u>*

 

Certain reclassifications have been made to the prior period financial information to conform to the presentation used in the financial statements for the year ended December 31, 2021.

*<u>Investments</u>*

 

The Company follows ASC subtopic 321-10, Investments-Equity Securities which requires the accounting for an equity security to be measured at fair value with changes in unrealized gains and losses included in current period operations. Where an equity security is without a readily determinable fair value, the Company may elect to estimate its fair value at cost minus impairment plus or minus changes resulting from observable price changes. As of December 31, 2021, the Company determined that its investment in 100Bio was fully impaired; therefore, the investment was written down to $0 and a $150,000 loss on investment was recognized.

*<u>Property and Equipment</u>*

Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation of property and equipment is calculated using the straight-line method over the estimated useful lives of the assets, which range from three to seven years. Leasehold improvements are amortized over the lesser of the remaining term of the lease or the estimated useful life of the asset. Expenditures for repairs and maintenance are expensed as incurred.

*<u>Basic and Diluted Earnings Per Share</u>*

Net income (loss) per common share is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock and potentially outstanding shares of common stock during the period. The weighted average number of common shares outstanding and potentially outstanding common shares assumes that the Company incorporated as of the beginning of the first period presented. As of December 31, 2021 and 2020, there are 20,000,000 and 0 potentially dilutive shares of common stock, respectively, if the Series C preferred stock were to be converted. There are 2,000,000 shares of Series B preferred stock outstanding. The Series B Preferred Stock will automatically be converted on January 1, 2023 into shares of common stock at the rate of 10 shares of Common Stock for each share of Preferred Stock. As of December 31, 2021 and 2020, the Company's diluted loss per share is the same as the basic loss per share, as the inclusion of any potential shares would have had an anti-dilutive effect due to the Company generating a loss.

*<u>Stock-based Compensation</u>*

 

In June 2018, the FASB issued ASU 2018-07, *Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting.* ASU 2018-07 allows companies to account for nonemployee awards in the same manner as employee awards. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those annual periods. We adopted this ASU on January 1, 2019.

*<u>Fair value of financial instruments</u>*

 

The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB Accounting Standards Codification ("Paragraph 820-10-35-37") to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in accounting principles generally accepted in the United States of America (U.S. GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below:

Level 1: Quoted market prices available in active markets for identical assets or liabilities as of the reporting date.

Level 2: Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date.

Level 3: Pricing inputs that are generally unobservable inputs and not corroborated by market data.

The carrying amount of the Company's financial assets and liabilities, such as cash, prepaid expenses and accrued expenses approximate their fair value because of the short maturity of those instruments. The Company's notes payable represent the fair value of such instruments as the notes bear interest rates that are consistent with current market rates.

The following table classifies the Company's asset measured at fair value on a recurring basis into the fair value hierarchy as of December 31, 2021:

---

| | | | |
|:---|:---|:---|:---|
| Description | Level 1 | Level 2 | Level 3 |
| Derivative | $— | $— | $— |
| Total | $— | $— | $— |

---

The following table classifies the Company's liabilities measured at fair value on a recurring basis into the fair value hierarchy as of December 31, 2020:

---

| | | | |
|:---|:---|:---|:---|
| Description | Level 1 | Level 2 | Level 3 |
| Derivative | $— | $— | $1075794 |
| Total | $— | $— | $1075794 |

---

*<u>Income Taxes</u>*

Income taxes are provided for the tax effects of the transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related primarily to tax net operating loss carryforwards. The deferred tax assets and liabilities represent the future tax return consequences of these differences, which will either be taxable or deductible when assets and liabilities are recovered or settled, as well as operating loss carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is established against deferred tax assets when in the judgment of management, it is more likely than not that such deferred tax assets will not become available. Because the judgment about the level of future taxable income is dependent to a great extent on matters that may, at least in part, be beyond the Company's control, it is at least reasonably possible that management's judgment about the need for a valuation allowance for deferred taxes could change in the near term.

Tax benefits are recognized only for tax positions that are more likely than not to be sustained upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely to be realized upon settlement. A liability for "unrecognized tax benefits" is recorded for any tax benefits claimed in the Company's tax returns that do not meet these recognition and measurement standards. As of December 31, 2021, and 2020, no liability for unrecognized tax benefits was required to be reported.

*<u>Recently issued accounting pronouncements</u>*

 

In August 2020, the FASB issued ASU 2020-06**,** *Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815-40)—Accounting for Convertible Instruments and Contracts in an Entity's Own Equity.* ASU 2020-06 reduces the number of accounting models for convertible debt instruments and convertible preferred stock. For convertible instruments with conversion features that are not required to be accounted for as derivatives under Topic 815, *Derivatives and Hedging*, or that do not result in substantial premiums accounted for as paid-in capital, the embedded conversion features no longer are separated from the host contract. ASU 2020-06 also removes certain conditions that should be considered in the derivatives scope exception evaluation under Subtopic 815-40, *Derivatives and Hedging—Contracts in Entity's Own Equity*, and clarify the scope and certain requirements under Subtopic 815-40. In addition, ASU 2020-06 improves the guidance related to the disclosures and earnings-per-share (EPS) for convertible instruments and contract in entity's own equity. ASU 2020-06 is effective for public business entities that meet the definition of a Securities and Exchange Commission (SEC) filer, excluding entities eligible to be smaller reporting companies as defined by the SEC, for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Board specified that an entity should adopt the guidance as of the beginning of its annual fiscal year. The Company has chosen the early adoption of ASU 2020-06. The adoption of ASU 2020-06, had a material effect on the Company's financial statements. If the standard was not early adopted the Company would have recognize s full OID on its convertible notes.

The Company has implemented all new applicable accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

**NOTE 3 - GOING CONCERN**

The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has an accumulated deficit of $13,165,085 at December 31, 2021 and had a net loss of $6,034,411 for the year ended December 31, 2021. The Company's ability to raise additional capital through the future issuances of common stock and/or debt financing is unknown. The obtainment of additional financing, the successful development of the Company's contemplated plan of operations, and its transition, ultimately, to the attainment of profitable operations are necessary for the Company to continue operations. These conditions and the ability to successfully resolve these factors raise substantial doubt about the Company's ability to continue as a going concern. The financial statements of the Company do not include any adjustments that may result from the outcome of these aforementioned uncertainties.

Management plans to continue to implement its business plan and to fund operations by raising additional capital through the issuance of debt and equity securities. The Company's existence is dependent upon management's ability to implement its business plan and/or obtain additional funding. There can be no assurance that the Company's financing efforts will result in profitable operations or the resolution of the Company's liquidity problems. Even if the Company is able to obtain additional financing, it may include undue restrictions on our operations in the case of debt or cause substantial dilution for our stockholders in the case of equity financing.

**NOTE 4 – ACQUISITION**

Effective October 1, 2020, the Company acquired a 51% controlling interest in the sustainable packaging company, 100BIO, LLC. Pursuant to the terms of the agreement 100BIO agreed to exchange newly issued membership units representing a 51% ownership in 100BIO in exchange for 2,000,000 shares of the Series A Redeemable Preferred Stock of the Company. Commencing on the first day of the month immediately following the date when the Company has received $1,000,000 in net proceeds from the first public offering of its securities (the "Public Offering") and on the first day of each three month anniversary thereafter, the Company can redeem 25% during the applicable three month period up to 250,000 shares of the Series A Preferred Stock, at a price payable in cash equal to $1.00 per share until all of the shares of the Series A Preferred Stock have been redeemed. The company has repurchased 50,000 shares of the Series A Redeemable Preferred Stock.

Subsequent to the acquisition, the Company concluded that 100BIO did not fit with the Company's business plan after taking into account the prospects of 100BIO against the requirement to fund the redemption of the Series A Preferred Shares. Pursuant to a Restructuring and Settlement Agreement dated as of November 15, 2021, the Company exchanged its 51% interest in 100BIO, LLC for a 3.5% interest in 100BIO, LLC. As part of the restructuring, the Series A Preferred Shares were extinguished. The preferred shares are to be cancelled by the transfer agent in Q1 of 2022.

The Company had no substantive transactions with 100Bio and never consolidated its financial statements. As of December 31, 2021, the Company determined that its investment in 100Bio was fully impaired; therefore, the investment was written down to $0 and a $150,000 loss on investment was recognized.

**NOTE 5 - PROPERTY & EQUIPMENT**

Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the various classes of assets as follows between three and five years.

Long lived assets, including property and equipment, to be held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Impairment losses are recognized if expected future cash flows of the related assets are less than their carrying values. Measurement of an impairment loss is based on the fair value of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell.

Maintenance and repair expenses, as incurred, are charged to expense. Betterments and renewals are capitalized in plant and equipment accounts. Cost and accumulated depreciation applicable to items replaced or retired are eliminated from the related accounts with any gain or loss on the disposition included as income.

Clean-Seas, Inc. has purchased a pyrolysis unit for piloting and demonstration purposes which will be commissioned in Hyderabad, India in March 2022. The unit will be used to showcase the Company's technology and services, turning waste plastic into environmentally friendly commodities, to potential customers.

Property and equipment stated at cost, less accumulated depreciation consisted of the following:

---

| | | |
|:---|:---|:---|
|  | December 31,<br> 2021 | December 31,<br> 2020 |
| Pyrolysis unit | $150505 | $— |
| Less: accumulated depreciation |  |  |
| Property and equipment, net | $150505 | $— |

---

*<u>Depreciation expense</u>*

Depreciation expense for the year ended December 31, 2021 was $0. As of December 31, 2021, the Company's fixed assets have not yet been placed in service. Depreciation will begin on the date the assets are placed into service.

**NOTE 6 – LOAN PAYABLE**

As of December 31, 2020, a third party loaned the Company a total of $114,500. The loan was used to cover general operating expenses, is non-interest bearing and due on demand. During the year ended December 30, 2021, the Company repaid $100,000 of the loan, for a balance due of $14,500 as of December 31, 2021.

**NOTE 7 – CONVERTIBLE NOTES**

On August 7, 2020, 2142723 Alberta, Ltd. ("Alberta") purchased accrued payables from their respective holders in the total amount of $947,461. The Company agreed to a Settlement Agreement with Alberta in which it will issue shares of common stock sufficient to satisfy the liability at a discounted conversion price, equal to the lesser of $0.05 per share or the lessor of 50% of the lowest trading price in the twenty days preceding the conversion request. On August 19, 2020, Alberta converted $250,000 into 5,000,000 shares of common stock. As of December 31, 2020, the balance on this note is $697,461. During the year ended December 31, 2021, the balance due on this note was converted in full into 13,949,210 shares of common stock.

On November 25, 2020, the Company executed a Convertible Promissory Note for $110,000 with Greentree Financial Group, Inc ("Greentree"). The Note was issued to fund the service fee per a consulting agreement with Greentree. The note bear interest at 12% and matures on November 25, 2021. The Note is convertible into shares of common stock at 50% of the average of the lowest three trades in the twenty days prior to conversion. In April 2021, Greentree advanced the Company $11,500 to pay an outstanding invoice for professional fees. During year ended December 31, 2021, this loan was repaid in full.

A summary of the activity of the derivative liability for the notes above is as follows:

---

| | |
|:---|:---|
| Balance at December 31, 2019 | $— |
| Increase to derivative due to new issuances | 3064406 |
| Decrease to derivative due to conversion | (695925) |
| Derivative loss due to mark to market adjustment | (1292687) |
| Balance at December 31, 2020 | $1075794 |
| Increase to derivative due to new issuances |  |
| Decrease to derivative due to conversion | (1652367) |
| Derivative loss due to mark to market adjustment | 576573 |
| Balance at December 31, 2021 | $— |

---

A summary of quantitative information about significant unobservable inputs (Level 3 inputs) used in measuring the Company's derivative liability that are categorized within Level 3 of the fair value hierarchy as of December 31, 2020 is as follows:

---

| | | |
|:---|:---|:---|
| Inputs | December 31, 2020 | Initial Valuation |
| Stock price | $.084 | $0.075 0.171 |
| Conversion price | $.0395 - .0398 | $0.036 0.05 |
| Volatility (annual) | 131.37% 132% | 131.36% - 255.89% |
| Risk-free rate | .10% - .11% | .11% - .14% |
| Dividend rate |  |  |
| Years to maturity | .60 .90 | 1 |

---

A summary of quantitative information about significant unobservable inputs (Level 3 inputs) used in measuring the Company's derivative liability that are categorized within Level 3 of the fair value hierarchy at the time of conversion is as follows:

---

| | | |
|:---|:---|:---|
| Inputs | December 31, 2021 | December 31, 2020 |
| Stock price | $0.0420 – 0.1599 | $0.1568 |
| Conversion price | $0.009 – 0.06 | $0.50 |
| Volatility (annual) | 123.86% -263.07% | 25388 |
| Risk-free rate | .01 – .05% | .13% |
| Dividend rate |  |  |
| Years to maturity | .23 - .39 | .97 |

---

The development and determination of the unobservable inputs for Level 3 fair value measurements and fair value calculations are the responsibility of the Company's management.

During the year ended December 31, 2021, the Company received total proceeds of $986,500 from the issuance of notes payable. All the notes were issued with a 20% - 50% original issue discount. During year ended December 31, 2021, the Company repaid or converted to common stock, substantially all outstanding loans.

**NOTE 8 – RELATED PARTY TRANSACTIONS**

On May 19, 2020, the Company entered into an Exchange Agreement with Clean-Seas, Inc. ("CSI"), a Delaware corporation owned by Dan Bates, CEO. Pursuant to the terms of the agreement the Company issued 2,500,000 shares of common stock, at $0.01 per share, the agreed upon purchase price, to CSI for 100% of the outstanding stock of CSI. CSI became a wholly owned subsidiary of the Company.

As of December 31, 2021 and 2020, the Company owed Chris Percy, President and CCO, $158,500 and $87,500, respectively, for accrued compensation. During the years ended December 31, 2021 and 2020, the Company made cash payments to Mr. Percy of $160,000 and $0, respectively.

As of December 31, 2021 and 2020, the Company owed Erfran Ibrahim, former CTO, $60,000 and $0, respectively, for accrued compensation. During the years ended December 31, 2021 and 2020, the Company made cash payments to Mr. Ibrahim of $134,930 and $0, respectively. On February 1, 2021, the Company granted 20,000 shares of common stock to Mr. Ibrahim for services. The shares were valued at $0.14, the closing stock price on the date of grant, for total non-cash expense of $2,800. On September 30, 2021, the Company granted 160,000 shares of common stock to Mr. Ibrahim for services. The shares were valued at $0.10, the closing stock price on the date of grant, for total non-cash expense of $14,930. As of December 31, 2021, the shares have not yet been issued by the transfer agent and are disclosed as common stock to be issued.

As of December 31, 2021 and 2020, the Company owed Dan Bates, CEO, $70,000 and $45,000, respectively, for accrued compensation. During the years ended December 31, 2021 and 2020, the Company made cash payments to Mr. Bates of $195,000 and $0, respectively. In addition, Mr. Bates, loaned the Company $100 to be used to open the Company's bank account.

On February 21, 2021, the Company amended the employment agreement with Dan Bates, CEO. The amendment extended the term of his agreement from three years commencing May 27, 2020 to expire on May 27, 2025. In addition, Mr. Bates was granted 2,000,000 shares of Series C preferred convertible stock for total non-cash stock compensation expense of $359,800.

The Company has entered into an at-will consulting agreement with John Owen to serve as Chief Operating Officer. Mr. Owen is to receive $12,500 a month. On December 16, 2021, the Company granted 500,000 shares of common stock to Mr. Owen for services. The shares were valued at $0.028, the closing stock price on the date of grant, for total non-cash expense of $14,000. During the years ended December 31, 2021 and 2020, the Company made cash payments to Mr. Owen of $67,500 and $0, respectively.

The Company has entered into an at-will consulting agreement with Rachel Boulds to serve as Chief Financial Officer. Ms. Boulds is to receive $5,000 a month. On February 22, 2021, the Company granted 500,000 shares of common stock to Ms. Boulds for services. The shares were valued at $0.2059, the closing stock price on the date of grant, for total non-cash expense of $102,950. During the years ended December 31, 2021 and 2020, the Company made cash payments to Ms. Boulds of $54,000 and $0, respectively.

On December 16, 2021, the Company granted Michael Dorsey, Director, 500,000 shares of common stock. The shares were valued at $0.028, the closing stock price on the date of grant, for total non-cash expense of $14,000. During the years ended December 31, 2021, the Company made cash payments to Mr. Dorsey of $4,500.

On December 16, 2021, the Company issued 3,000,000 shares of common stock that were due to Chris Percy, Director, for services from a prior period. The shares were valued on the original date of grant at $0.095.

**NOTE 9 – COMMON STOCK**

The Company amended its Articles of Incorporation, effective June 29, 2021, to increase its authorized shares of common stock to 2,000,000,000.

In March 2020, Axiom returned 20,000,000 shares of common stock issued to them in 2018 to the Company per the terms of the cancellation of the original agreement.

On April 20, 2020, the Company executed a consulting agreement with Ronin Equity Partners, Inc. ("Ronin") for a term of one year. Per the terms of the agreement the Company will compensate Ronin $10,000 per month and issue them 2,000,000 shares of common stock. The shares were valued at $0.19 for total non-cash compensation of $100,000.

During the year ended December 31, 2020, the Company granted 500,000 shares of common stock for service. The shares were valued at the closing stock price on the date of grant of $0.105 for total non-cash compensation of $52,500.

On July 1, 2020, the Company granted 3,000,000 shares of common stock for services. The shares were valued at $0.19 for total non-cash compensation of $380,000.

On August 19, 2020, Alberta converted $250,000 into 5,000,000 shares of common stock (note 7).

On September 17, 2020, the Company granted Jea So, a former Director, 500,000 shares of common stock for services. The shares were valued at the closing stock price on the date of grant of $0.11, for total non-cash compensation of $55,000.

During the year ended December 31, 2020, the Company issued 1,300,000 shares of common stock that had been granted in a prior period.

During the year ended December 31, 2021, the Company issued 7,250,000 shares of common stock for services, for total non-cash compensation expense of $807,240.

During the year ended December 31, 2021, the Company granted 1,391,688 shares of common stock for services, for total non-cash compensation expense of $169,140. These shares have not yet been issued as of December 31, 2021 and are included in common stock to be issued.

During the year ended December 31, 2021, the Company sold 150,000,000 shares of common stock for total cash proceeds of $3,000,000. The shares were sold at $0.02, pursuant to the Company's Regulation A Offering Statement qualified on June 21, 2021.

During the year ended December 31, 2021, the Company issued 53,901,860 shares of common stock for conversion of approximately $1,391,000 of debt.

The Company has entered into two consulting agreements that require the issuance of 20,834 shares of common stock per month through May 2023.

Refer to Note 8 for shares issued to related parties.

**NOTE 10 – PREFERRED STOCK**

The Company is authorized to issue 10,000,000 shares of Preferred Stock at $0.001 par value per share With the following designations.

*<u>Series A Redeemable Preferred Stock</u>*

 

On September 21, 2020, the Company created a series of Preferred Stock designating 2,000,000 shares as Series A Redeemable Preferred Stock ranks senior to the Company's Common Stock upon the liquidation, dissolution or winding up of the Company. The Series A Preferred Stock does not bear a dividend or have voting rights and is not convertible into shares of our Common Stock. Refer to Note 4.

*<u>Series B Preferred Stock</u>*

 

On December 14, 2020, the Company designated 2,000,000 shares of its authorized preferred stock as Series B convertible, non-voting preferred Stock. The Series B Preferred Stock does not bear a dividend or have voting rights. The Series B Preferred Stock will automatically be converted on January 1, 2023 into shares of common stock at the rate of 10 shares of Common Stock for each share of Preferred Stock. Holders of our Series B Preferred Stock have anti-dilution rights protecting their interests in the Company from the issuance of any additional shares of capital stock (such as the issuance of shares of Common Stock pursuant to this Offering) for a two year period following conversion of the Preferred Stock calculated at the rate of 20% on a fully diluted basis.

On December 17, 2020, the Company entered into a three-year consulting agreement with Leonard Tucker LLC. Per the terms of the agreement, Leonard Tucker LLC will receive 2,000,000 shares of Series B Preferred Stock for services provided. As of December 31, 2021, the shares of preferred stock are still issuable to Leonard Tucker LLC. The preferred stock to be issued are classified as mezzanine equity until they are fully issued.

*<u>Series C Preferred Stock</u>*

 

On February 19, 2021, the Company amended its Articles of Incorporation whereby 2,000,000 shares of preferred stock were designated Series C Convertible Preferred Stock. The holders of the Series C Preferred Stock are entitled to 100 votes per share of common stock and shall vote together with the holders of common stock. Each share of the Series C preferred stock is convertible in ten shares of common stock.

**NOTE 11 - DISCONTINUED OPERATIONS**

On May 12, 2016, the Company acquired 17,000,000 telecoins. TeleCoin is a digital currency created using encrypted data/codes which partner and work in synchronization with the Blockchain. On November 19, 2018, as part of the Company's exit from the cryptocurrency and blockchain arena, the Company's agreed to the sale of its UK Subsidiary, Telecoin, and it's Telecoin cryptocurrency asset, to XALPA Technologies Inc. Per the agreement, 16,000,000 shares of common stock held by XALPA Directors would be returned to the Company. In February 2019 the shares were returned, and the telecoin asset and related accumulated other comprehensive loss was removed from the balance sheet, resulting in a gain on the sale of $605,302.

The sale constitutes a disposal/discontinued operations under ASC 205-20-45, as such all operations and balance sheet items have been disclosed separately as discontinued operations.

In accordance with the provisions of ASC 205-20, *Presentation of Financial Statements*, we have separately reported the liabilities of the discontinued operations in the consolidated balance sheets. The liabilities have been reflected as discontinued operations in the consolidated balance sheets as of December 31, 2021 and 2020, and consist of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2020** |
| Current Liabilities of Discontinued Operations: |  |  |
| Accounts payable | $49159 | $49159 |
| Accrued expenses | 6923 | 6923 |
| Loans payable | 11011 | 11011 |
| Total Current Liabilities of Discontinued Operations: | $67093 | $67093 |

---

In accordance with the provisions of ASC 205-20, we have not included the results of operations from discontinued operations in the results of continuing operations in the consolidated statements of operations. The results of operations from discontinued operations for the years ended December 31, 2021 and 2020, have been reflected as discontinued operations in the consolidated statements of operations for the years ended December 31, 2021 and 2020, and consist of the following.

---

| | | |
|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2021** | **2020** |
| Operating expenses of discontinued operations: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consulting expense |  | 380000 |
| Total operating expenses of discontinued operations |  | 380000 |
| &nbsp;&nbsp;&nbsp;Net loss from discontinued operations | $— | $(380000) |

---

**NOTE 12 – RESTATEMENT**

Per ASC 250-10 *Accounting Changes and Error Corrections,* the December 31, 2020 financial statements have been restated for the following:

1 – account for an additional compensation

2 – account for stock granted for services but not yet issued

3 – correct accounting for derivative upon conversion of debt

4 – account for stock issued for services as part of discontinued operations

---

| | | | |
|:---|:---|:---|:---|
| **For the Year Ended December 31, 2020** | **For the Year Ended December 31, 2020** | **For the Year Ended December 31, 2020** | **For the Year Ended December 31, 2020** |
|  | **As Reported** | **Adjusted** | **As Restated** |
| Balance Sheet: |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $740 | $— | $740 |
| &nbsp;&nbsp;&nbsp;Other current asset | 20000 |  | 20000 |
| Total Assets | $20740 | $— | $20740 |
| &nbsp;&nbsp;&nbsp;Accounts payable | $21258 | $— | $21258 |
| &nbsp;&nbsp;&nbsp;Accrued compensation | 132500 | 15000 | 147500 |
| &nbsp;&nbsp;&nbsp;Accrued expenses | 1266 |  | 1266 |
| &nbsp;&nbsp;&nbsp;Convertible notes, net of discount of $535,746 | 271715 |  | 271715 |
| &nbsp;&nbsp;&nbsp;Loan payable | 114500 |  | 114500 |
| &nbsp;&nbsp;&nbsp;Derivative liability | 1075794 |  | 1075794 |
| &nbsp;&nbsp;&nbsp;Advance from an officer | 100 |  | 100 |
| &nbsp;&nbsp;&nbsp;Liabilities of discontinued operations | 67093 |  | 67093 |
| Total current liabilities | 1684226 | 15000 | 1699226 |
| &nbsp;&nbsp;&nbsp;Series A Preferred stock | 2000 |  | 2000 |
| &nbsp;&nbsp;&nbsp;Common stock | 97208 |  | 97208 |
| &nbsp;&nbsp;&nbsp;Common stock to be issued | 225625 | 40674 | 266299 |
| &nbsp;&nbsp;&nbsp;Preferred stock to be issued | 25000 |  | 25000 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 4861075 | 200606 | 5061681 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (6874394) | (256280 | (7130674) |
| Total stockholders' deficit | (1663486) | (15000 | (1678486) |
| Total liabilities and stockholders' equity | $20740 | $— | $20740 |

---

---

| | | | |
|:---|:---|:---|:---|
| **For the Year Ended December 31, 2020** | **For the Year Ended December 31, 2020** | **For the Year Ended December 31, 2020** | **For the Year Ended December 31, 2020** |
|  | **As Reported** | **Adjustment** | **As Restated** |
| Operating Expenses: |  |  |  |
| Officer compensation | $385000 | 15000 | $400000 |
| &nbsp;&nbsp;&nbsp;Consulting | 139000 | 52500 | 191500 |
| &nbsp;&nbsp;&nbsp;Professional fees | 79827 |  | 79827 |
| &nbsp;&nbsp; General and administration expenses | 91694 | 40674 | 132368 |
| Total operating expense | 695521 | 108174 | 803695 |
| Loss from operations | (695521) | (108174 | (803695) |
| Other expense: |  |  |  |
| Interest expense | (522981) |  | (522981) |
| &nbsp;&nbsp;&nbsp;Change in fair value of derivative | 1493293 | (200606) | 1292687 |
| &nbsp;&nbsp;&nbsp;Loss on issuance of convertible debt | (2006944) |  | (2006944) |
| Total other expense | (1036632) | (200606 | (1237238) |
| Net loss from continuing operations | (1732153) | (308780) | (2040933) |
| Net loss from discontinued operations | (432500) | 52500 | (380000) |
| Net Loss | $(2164653) | $(256280 | $(2420933) |
| Basic and fully diluted loss per share from continuing operations | $(0.02) | $— | $(0.02) |
| Basic and fully diluted loss per share from discontinued operations | $(0.00) | $— | $(0.00) |
| Basic and fully diluted loss per share | $(0.02) | $— | $(0.02) |
| Weighted average shares outstanding—basic and diluted | 93617831 |  | 93617831 |

---

**NOTE 13 – INCOME TAX** 

Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company has evaluated Staff Accounting Bulletin No. 118 regarding the impact of the decreased tax rates of the Tax Cuts & Jobs Act. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The U.S. federal income tax rate of 21% is being used.

Net deferred tax assets consist of the following components as of December 31:

---

| | | |
|:---|:---|:---|
|  | 2021 | 2020 |
| Deferred Tax Assets: |  |  |
| &nbsp;&nbsp;&nbsp;NOL Carryover | $(2682760) | $(620000) |
| &nbsp;&nbsp;&nbsp;Related party accrual |  | 2300 |
| &nbsp;&nbsp;&nbsp; Payroll accrual | 2000 | 1500 |
| Deferred tax liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Less valuation allowance | 2680760 | 616200 |
| Net deferred tax assets | $— | $— |

---

The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income from continuing operations for the period ended December 31, due to the following:

---

| | | |
|:---|:---|:---|
|  | 2021 | 2020 |
| Book loss | $(1111900) | $(508400) |
| Other nondeductible expenses | 676800 | 402000 |
| Related party accrual |  |  |
| Valuation allowance | 435100 | 106400 |
|  | $— | $— |

---

At December 31, 2021, the Company had net operating loss carry forwards of approximately $2,682,000 that may be offset against future taxable income. NOLs from tax years up to 2017 can be carried forward twenty years. Under the CARES Act, the Company can carry forward NOLs indefinitely for NOLs generated in a tax year beginning after 2017, that remain after they are carried back to tax years in the five-year carryback period. No tax benefit has been reported in the December 31, 2021 financial statements since the potential tax benefit is offset by a valuation allowance of the same amount.

Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards for Federal Income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carry forwards may be limited as to use in future years. With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years before 2016.

**NOTE 14 – SUBSEQUENT EVENTS**

In accordance with SFAS 165 (ASC 855-10) management has performed an evaluation of subsequent events through the date that the financial statements were issued and has determined that it does not have any material subsequent events to disclose in these consolidated financial statements other than the following.

On January 19, 2022, the Company changed the name of its wholly owned subsidiary, Clean-Seas, Abu Dhabi PVT. LTD, to Clean-Seas Group.

On February 4, 2022, the Company was up listed by OTC Markets Group, Inc. to the OTCQB, Venture Market Exchange.

On February 10, 2022, the Company withdrew its registration statement on Form 10-12G that had been filed on December 21, 2021.

Subsequent to December 31, 2021, Jea So returned 500,000 shares common stock to the Company.

Subsequent to December 31, 2021, the Company granted 1,062,502 shares of common stock for services to consultants.

On January 11, 2022, the transfer agent issued 525,016 shares of common stock that were granted and accounted for as stock to be issued as of December 31, 2021.

EcoCell was incorporated on March 4, 2022, as a wholly owned subsidiary of the Company.

 **INDEX TO FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
| [Consolidated Balance Sheets as of September 30, 2022 (Unaudited) and December 31, 2021](#a_0007) | F-20 |
| [Consolidated Statements of Operations and Comprehensive loss for the Three and Nine Months Ended September 30, 2022 and 2021 (Unaudited)](#a_0008) | F-21 |
| [Consolidated Statements of Stockholders' Deficit for the Three and Nine Months Ended September 30, 2022 and 2021 (Unaudited)](#a_0009) | F-22 |
| [Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2022 and 2021 (Unaudited)](#a_0010) | F-24 |
| [Notes to the Consolidated Financial Statements (Unaudited)](#a_0011) | F-25 |

---

**CLEAN VISION CORPORATION** 

**CONSOLIDATED BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | September 30, 2022 | December 31, 2021 |
| **ASSETS** | (Unaudited) |  |
| Current Assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $2829 | $835657 |
| &nbsp;&nbsp;&nbsp;Prepaid | 166244 | 54000 |
| &nbsp;&nbsp;&nbsp;Prepaid stock for services | 762000 |  |
| Total Current Assets | 931073 | 889657 |
| Property and equipment | 205219 | 150505 |
| Total Assets | $1136292 | $1040162 |
| &nbsp;&nbsp;&nbsp;**<u>LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)</u>** |  |  |
| Current Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $171496 | $60248 |
| &nbsp;&nbsp;&nbsp;Accrued compensation | 420730 | 308500 |
| &nbsp;&nbsp;&nbsp;Accrued expenses | 149614 | 9502 |
| &nbsp;&nbsp;&nbsp;Convertible note payable, net of discount of $30,000 | 330000 |  |
| &nbsp;&nbsp;&nbsp;Loan payable, net of discount of $3,500 and $0, respectively | 131534 | 14500 |
| &nbsp;&nbsp;&nbsp;Advance from an officer | 45290 | 100 |
| &nbsp;&nbsp;&nbsp;Liabilities of discontinued operations | 67093 | 67093 |
| Total current liabilities | 1315757 | 459943 |
| Total Liabilities | 1315757 | 459943 |
| Commitments and contingencies |  |  |
| Mezzanine Equity: |  |  |
| &nbsp;&nbsp;&nbsp;Series B Preferred stock, $0.001 par value, 2,000,000 shares designated; 2,000,000 and 0 shares issued and outstanding, respectively | 1800000 | 625000 |
| Total mezzanine equity | 1800000 | 625000 |
| <u>Stockholders' Deficit:</u> |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock, $0.001 par value, 10,000,000 shares authorized; no shares issued and outstanding |  |  |
| &nbsp;&nbsp;&nbsp;Series A Preferred stock, $0.001 par value, 2,000,000 shares designated; 0 and 1,850,000 shares issued and outstanding, respectively |  | 1850 |
| &nbsp;&nbsp;&nbsp;Series C Preferred stock, $0.001 par value, 2,000,000 shares designated; 2,000,000 shares issued and outstanding | 2000 | 2000 |
| &nbsp;&nbsp;&nbsp;Common stock, $0.001 par value, 2,000,000,000 shares authorized, 354,385,392 and 312,860,376 shares issued and outstanding, respectively | 354386 | 312861 |
| &nbsp;&nbsp;&nbsp;Common stock to be issued | 279303 | 227544 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 13610091 | 12576049 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (4095) |  |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (16221150) | (13165085) |
| &nbsp;&nbsp;&nbsp;Total stockholders' deficit | (1979465) | (44781) |
| &nbsp;&nbsp;&nbsp;Total liabilities and stockholders' deficit | $1136292 | $1040162 |

---

 

*The accompanying notes are an integral part of these unaudited consolidated financial statements.*

 

**CLEAN VISION CORPORATION** 

**CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS** 

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the Three Months Ended <br>September 30, | For the Three Months Ended <br>September 30, | For the Nine Months Ended <br>September 30, | For the Nine Months Ended <br>September 30, |
|  | 2022 | 2021 | 2022 | 2021 |
| Operating Expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Consulting | $311808 | $348799 | $1094768 | $1285319 |
| &nbsp;&nbsp;&nbsp;Professional fees | 131535 | 81360 | 258165 | 344697 |
| &nbsp;&nbsp;&nbsp;Payroll expense | 171260 | 231277 | 623549 | 1071527 |
| &nbsp;&nbsp;&nbsp;Director fees | 4500 |  | 13500 |  |
| &nbsp;&nbsp;&nbsp; General and administration expenses | 227374 | 95363 | 824344 | 139783 |
| Total operating expense | 846477 | 756799 | 2814326 | 2841326 |
| Loss from Operations | (846477) | (756799) | (2814326) | (2841326) |
| Other income (expense): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | (22791) | (330327) | (46256) | (1187033) |
| &nbsp;&nbsp;&nbsp;Change in fair value of derivative |  |  |  | (46350) |
| &nbsp;&nbsp;&nbsp;Debt issuance expense - warrants |  |  | (195483) |  |
| Total other expense | (22791) | (330327) | (241739) | (1233383) |
| Net loss before provision for income tax | (869268) | (1087126) | (3056065) | (4074709) |
| Provision for income tax expense |  |  |  |  |
| Net loss | $(869268) | $(1087126) | $(3056065) | $(4074709) |
| Other comprehensive loss: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Foreign currency translation adjustment | 6622 |  | (4095) |  |
| Comprehensive loss | $(862646) | $(1087126) | $(3060160) | $(4074709) |
| Loss per share - basic and diluted | $(0.00) | $(0.00) | $(0.01) | $(0.03) |
| Weighted average shares outstanding - basic and diluted | 353868192 | 115204429 | 337327607 | 109010083 |

---

*The accompanying notes are an integral part of these unaudited consolidated financial statements.*

 

 

**CLEAN VISION CORPORATION** 

**CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT** 

**For the Three and Nine Months Ended September 30, 2022 (Unaudited)**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Series A Preferred Stock | Series A Preferred Stock | Series C Preferred Stock | Series C Preferred Stock | Common Stock | Common Stock | | | | | |
|  | Shares | Amount | Shares | Amount | Shares | Amount | Additional paid<br>In Capital | Common Stock To be<br>Issued | Other Comprehensive<br>Loss | Accumulated<br>Deficit | Total Stockholders'<br>Deficit |
| Balance, December 31, 2021 | 1850000 | $1850 | 2000000 | $2000 | 312860376 | $312861 | $12576049 | $227544 | $— | $(13165085) | $(44781) |
| Cancellation of preferred | (1850000) | (1850) |  |  |  |  | 1850 |  |  |  |  |
| Stock issued for services |  |  |  |  | 1525016 | 1525 | 46209 | (6119) |  |  | 41615 |
| Debt issuance cost |  |  |  |  |  |  | 161709 |  |  |  | 161709 |
| Net loss |  |  |  |  |  |  |  |  | (10040) | (1064930) | (1074970) |
| Balance, March 31, 2022 |  |  | 2000000 | 2000 | 314385392 | 314386 | 12785817 | 221425 | (10040) | (14230015) | (916427) |
| Stock issued for cash |  |  |  |  | 30000000 | 30000 | 570000 |  |  |  | 600000 |
| Stock issued for services |  |  |  |  | 5000000 | 5000 | 143001 | 11246 |  |  | 159247 |
| Debt issuance cost |  |  |  |  |  |  | 33773 |  |  |  | 33773 |
| Net loss |  |  |  |  |  |  |  |  | (677) | (1121867) | (1122544) |
| Balance, June 30, 2022 |  |  | 2000000 | 2000 | 349385392 | 349386 | 13532591 | 232671 | (10717) | (15351882) | (1245951) |
| Stock issued for services |  |  |  |  | 5000000 | 5000 | 77500 | 46632 |  |  | 129132 |
| Net loss |  |  |  |  |  |  |  |  | 6622 | (869268) | (862646) |
| Balance, September 30, 2022 |  | $— | 2000000 | $2000 | 354385392 | $354386 | $13610091 | $279303 | $(4095) | $(16221150) | $(1979465) |

---

 

*The accompanying notes are an integral part of these unaudited consolidated financial statements.*

**CLEAN VISION CORPORATION** 

**CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT** 

**For the Three and Nine Months Ended September 30, 2021 (Unaudited)**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Series A Preferred Stock | Series A Preferred Stock | Series C Preferred Stock | Series C Preferred Stock | Common Stock | Common Stock | | | | | |
|  | Shares | Amount | Shares | Amount | Shares | Amount | Additional paid<br>In Capital | Common Stock To be<br>Issued | Preferred Stock To be<br>Issued | Accumulated<br>Deficit | Total Stockholders'<br>Deficit |
| Balance, December 31, 2020 | 2000000 | $2000 |  | $— | 97208516 | $97208 | $4861075 | $225625 | $25000 | $(6911894) | $(1700986) |
| Redemption of preferred | (50000) | (50) |  |  |  |  | 50 |  |  |  |  |
| Stock issued for services – related party |  |  | 2000000 | 2000 |  |  | 357800 | 102950 |  |  | 462750 |
| Stock issued for services |  |  |  |  | 3250000 | 3250 | 652340 | 146930 | 150000 |  | 952520 |
| Conversion of debt |  |  |  |  | 13949210 | 13950 | 1605621 |  |  |  | 1619571 |
| Net loss |  |  |  |  |  |  |  |  |  | (2376080) | (2376080) |
| Balance, March 31, 2021 | 1950000 | 1950 | 2000000 | 2000 | 114407726 | 114408 | 7476886 | 475505 | 175000 | (9287974) | (1042225) |
| Stock issued debt |  |  |  |  | 12500000 | 12500 | 237500 |  |  |  | 250000 |
| Stock issued for cash |  |  |  |  | 25000000 | 25000 | 475000 | 250000 |  |  | 750000 |
| Net loss |  |  |  |  |  |  |  |  |  | (611503) | (611503) |
| Balance, June 30, 2021 | 1950000 | 1950 | 2000000 | 2000 | 151907726 | 151908 | 8189386 | 725505 | 175000 | (9899477) | (653728) |
| Stock issued for conversion of debt |  |  |  |  | 27452650 | 27453 | 721634 |  |  |  | 749087 |
| Stock issued for cash |  |  |  |  | 125000000 | 125000 | 2375000 | (250000) |  |  | 2250000 |
| Stock issued for services |  |  |  |  | 500000 | 500 | 13500 | 56000 |  |  | 70000 |
| Stock issued for services – related party |  |  |  |  | 500000 | 500 | 102450 | (88020) |  |  | 14930 |
| Redemption of preferred | (100000) | (100) |  |  |  |  | 100 |  |  |  |  |
| Net loss |  |  |  |  |  |  |  |  |  | (1087126) | (1087126) |
| Balance, September 30, 2021 | 1850000 | $1850 | 2000000 | $2000 | 305360376 | $305361 | $11402070 | $443485 | $175000 | $(10986603) | $1343163 |

---

*The accompanying notes are an integral part of these unaudited consolidated financial statements.*

**CLEAN VISION CORPORATION** 

**CONSOLIDATED STATEMENTS OF CASH FLOWS** 

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | For the Nine Months Ended <br>September 30, | For the Nine Months Ended <br>September 30, |
|  | 2022 | 2021 |
| Cash Flows from Operating Activities: |  |  |
| Net loss | $(3056065) | $(4074709) |
| Adjustments to reconcile net loss to net cash used <br>by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp; Stock based compensation | 816160 | 1022520 |
| &nbsp;&nbsp;&nbsp; Stock issued for services – related party |  | 477680 |
| &nbsp;&nbsp;&nbsp;Debt discount amortization | 30000 | 1212875 |
| &nbsp;&nbsp;&nbsp;Debt issuance expense - warrants | 195482 |  |
| &nbsp;&nbsp;&nbsp;Change in fair value of derivative |  | 46350 |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp; Prepaid | (92033) | (47500) |
| &nbsp;&nbsp;&nbsp;Other assets |  | (150000) |
| &nbsp;&nbsp;&nbsp;Accounts payable | 11248 | (7258) |
| &nbsp;&nbsp;&nbsp;Accruals | 140262 | 10657 |
| &nbsp;&nbsp;&nbsp;Accrued compensation | 112230 | 113250 |
| Net cash used by operating activities | (1842716) | (1396135) |
| Cash Flows from Investing Activities: |  |  |
| &nbsp;&nbsp;&nbsp;Purchase of property and equipment | (54713) |  |
| Net cash used by investing activities | (54713) |  |
| Cash Flows from Financing Activities: |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from convertible notes payable | 300000 | 1469000 |
| &nbsp;&nbsp;&nbsp;Proceeds from the sale of common stock | 600000 | 3000000 |
| &nbsp;&nbsp;&nbsp;Payments on convertible notes payable |  | (1469000) |
| &nbsp;&nbsp;&nbsp;Proceeds from notes payable - related party | 45140 |  |
| &nbsp;&nbsp;&nbsp;Repayment of related party loans | (100) |  |
| &nbsp;&nbsp;&nbsp;Proceeds from notes payable | 131436 |  |
| &nbsp;&nbsp;&nbsp;Payments - notes payable | (14402) |  |
| Net cash provided by financing activities | 1062074 | 3000000 |
| Net change in cash | (839450) | 1603865 |
| Effects of currency translation | 2527 |  |
| Cash at beginning of period | 835657 | 740 |
| Cash at end of period | $2829 | 1604605 |
| Supplemental schedule of cash flow information: |  |  |
| &nbsp;&nbsp;&nbsp;Interest paid | $— | $— |
| &nbsp;&nbsp;&nbsp;Income taxes | $— | $— |
| Supplemental non-cash disclosure: |  |  |
| &nbsp;&nbsp;&nbsp;Common stock issued for conversion of debt | $— | $947461 |
| &nbsp;&nbsp;&nbsp;Common stock issued for prepaid services | $111000 | $— |

---

*The accompanying notes are an integral part of these unaudited consolidated financial statements.*

**CLEAN VISION CORPORATION**

**Notes to Unaudited Consolidated Financial Statements**

**September 30, 2022**

**NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS**

Clean Vision Corporation ("Clean Vision," "we," "us," or the "Company") is a new entrant in the clean energy and waste-to-energy industries focused on clean technology and sustainability opportunities. Currently, we are focused on providing a solution to the plastic and tire waste problem by recycling the waste and converting it into saleable byproducts, such as hydrogen and other clean-burning fuels that can be used to generate clean energy. Using a technology known as pyrolysis, which heats the feedstock (*i.e.*, plastic or tires) at high temperatures in the absence of oxygen so that the material does not burn, we are able to turn the feedstock into i) low sulfur fuel, ii) clean hydrogen and iii) carbon black or char (char is created in the pyrolysis of plastic, while carbon black is created when tires are pyrolyzed). We intend to generate revenue from three sources: service revenue from the recycling services we provide, revenue generated from the sale of the byproducts, and revenue generated from the sale of fuel cell equipment. Our mission is to aid in solving the problem of cost-effectively upcycling the vast amount of waste plastic generated on land before it flows into the world's oceans, as well as to reduce the amount of tire waste.

We currently operate through our wholly-owned subsidiary, Clean-Seas, Inc. ("Clean-Seas"), which we acquired on May 19, 2020. Clean-Seas acquired its first pyrolysis unit in November 2021 for use in a pilot project in India, which began operations in early May 2022. We believe that this pilot project will showcase our ability to pyrolyze waste plastic (using pyrolysis), which will generate three byproducts: i) low sulfur fuel, ii) clean hydrogen, AquaH<sup>tm</sup>, and iii) char. We intend to sell the majority of the byproducts, while retaining a small amount of the low sulfur fuels and/or hydrogen to power our facilities and equipment. To date we have not generated any revenue from the provision of pyrolysis services nor have we generated any revenue from the sale of byproducts from our operations in India or fuel cell equipment and we do not currently have any contracts in place to sell these byproducts or fuel cell equipment. However, we believe that there is a strong market for low sulfur fuel and clean hydrogen, upon which we intend to focus our byproduct sales.

Clean-Seas, Inc. is Clean Vision Corporation's first investment within its newly expanded scope. The acquisition of 100% of Clean Seas is Clean Vision Corporation's first entrance into the clean energy space. Clean Seas has made significant progress in identifying and developing a new business model around the clean energy and waste to energy sectors. Clean Vision Corporation's management team will incorporate the two companies into a single-minded, clean energy-focused entity.

Clean-Seas India Private Limited which was incorporated on November 17, 2021, as a wholly owned subsidiary of Clean-Seas, Inc.

Clean-Seas, Abu Dhabi PVT. LTD was incorporated in Abu Dhabi on December 9, 2021, as a wholly owned subsidiary of the Company. On January 19, 2022, the Company changed the name of its wholly owned subsidiary, Clean-Seas, Abu Dhabi PVT. LTD, to Clean-Seas Group. As of July 4, 2022, the Company ceased operations and is in the process of dissolving the corporation.

EndlessEnergy was incorporated in Nevada on December 10, 2021, as a wholly owned subsidiary of the Company. EndlessEnergy does not currently have any operations, but it was incorporated for the purpose of investing in wind and solar energy projects.

EcoCell was incorporated on March 4, 2022, as a wholly owned subsidiary of the Company. EcoCell does not currently have any operations, but the Company intends to use EcoCell for the purpose of licensing fuel cell patented technology.

Clean-Seas Arizona was incorporated on September 19, 2022, as a wholly owned subsidiary of Clean-Seas.

**NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

*<u>Basis of Presentation</u>*

The Company's unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"), and pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") and reflect all adjustments, consisting of normal recurring adjustments, which management believes are necessary to fairly present the financial position, results of operations and cash flows of the Company as of and for the nine month period ending September 30, 2022 and not necessarily indicative of the results to be expected for the full year ending December 31, 2022. These unaudited financial statements should be read in conjunction with the financial statements and related notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2021.

*<u>Use of Estimates</u>*

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

*<u>Concentrations of Credit Risk</u>*

 

We maintain our cash in bank deposit accounts, the balances of which at times may exceed federally insured limits. We continually monitor our banking relationships and consequently have not experienced any losses in our accounts. At times, such deposits may be in excess of the Federal Deposit Insurance Corporation insurable amount ("FDIC").

*<u>Cash equivalents</u>*

 

The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. There were no cash equivalents for the periods ended September 30, 2022 and December 31, 2021.

*<u>Principles of Consolidation</u>*

 

The accompanying consolidated financial statements for the nine months ended September 30, 2022, include the accounts of the Company and its wholly owned subsidiaries, Clean-Seas, Inc and Clean-Seas India Private Limited, Clean-Seas Group, Endless Energy, EcoCell and Clean-Seas Arizona. As of September 30, 2022, there was no activity in Clean-Seas Group, Endless Energy, EcoCell or Clean-Seas Arizona.

*<u>Reclassifications</u>*

 

Certain reclassifications have been made to the prior period financial information to conform to the presentation used in the financial statements for the three and nine months ended September 30, 2022.

*<u>Translation Adjustment</u>*

For the nine months ended September 30, 2022, the accounts of the Company's subsidiary Clean-Seas India Private Limited, are maintained in Rupees. According to the Codification, all assets and liabilities were translated at the current exchange rate at respective balance sheets dates, members' capital are translated at the historical rates and income statement items are translated at the average exchange rate for the period. The resulting translation adjustments are reported under other comprehensive income in accordance with the Comprehensive Income Topic of the Codification (ASC 220), as a component of stockholders' equity. Transaction gains and losses are reflected in the income statement.

*<u>Comprehensive Income</u>*

The Company uses SFAS 130 "Reporting Comprehensive Income" (ASC Topic 220). Comprehensive income is comprised of net income and all changes to the statements of members' capital, except those due to investments by members, changes in paid-in capital and distributions to members. Comprehensive income for the three and nine months ended September 30, 2022 is included in net loss and foreign currency translation adjustments.

*<u>Basic and Diluted Earnings Per Share</u>*

Net income (loss) per common share is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock and potentially outstanding shares of common stock during the period. The weighted average number of common shares outstanding and potentially outstanding common shares assumes that the Company incorporated as of the beginning of the first period presented. As of September 30, 2022, there are warrants to purchase up to 9,000,000 shares of common stock. As of September 30, 2022 and 2021, there are 20,000,000 and 20,000,000 potentially dilutive shares of common stock, respectively, if the Series C preferred stock were to be converted. There are 2,000,000 shares of Series B preferred stock outstanding. The Series B Preferred Stock will automatically be converted on January 1, 2023 into shares of common stock at the rate of 10 shares of Common Stock for each share of Preferred Stock. As of September 30, 2022 and 2021, the Company's diluted loss per share is the same as the basic loss per share, as the inclusion of any potential shares would have had an anti-dilutive effect due to the Company generating a loss.

*<u>Stock-based Compensation</u>*

 

In June 2018, the FASB issued ASU 2018-07, *Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting.* ASU 2018-07 allows companies to account for nonemployee awards in the same manner as employee awards. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those annual periods. We adopted this ASU on January 1, 2019.

*<u>Recently issued accounting pronouncements</u>*

 

The Company has implemented all new applicable accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

**NOTE 3 - GOING CONCERN**

The accompanying unaudited consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has an accumulated deficit of $16,221,150 at September 30, 2022, and had a net loss of $3,060,160 for the nine months ended September 30, 2022. The Company's ability to raise additional capital through the future issuances of common stock and/or debt financing is unknown. The obtainment of additional financing, the successful development of the Company's contemplated plan of operations, and its transition, ultimately, to the attainment of profitable operations are necessary for the Company to continue operations. These conditions and the ability to successfully resolve these factors raise substantial doubt about the Company's ability to continue as a going concern. The financial statements of the Company do not include any adjustments that may result from the outcome of these aforementioned uncertainties.

Management plans to continue to implement its business plan and to fund operations by raising additional capital through the issuance of debt and equity securities. The Company's existence is dependent upon management's ability to implement its business plan and/or obtain additional funding. There can be no assurance that the Company's financing efforts will result in profitable operations or the resolution of the Company's liquidity problems. Even if the Company is able to obtain additional financing, it may include undue restrictions on our operations in the case of debt or cause substantial dilution for our stockholders in the case of equity financing.

**NOTE 4 - PROPERTY & EQUIPMENT**

Property and equipment are recorded at cost. The Company capitalizes purchases of property and equipment over $5,000. Depreciation is computed using the straight-line method over the estimated useful lives of the various classes of assets as follows between three and five years.

Long lived assets, including property and equipment, to be held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Impairment losses are recognized if expected future cash flows of the related assets are less than their carrying values. Measurement of an impairment loss is based on the fair value of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell.

Maintenance and repair expenses, as incurred, are charged to expense. Betterments and renewals are capitalized in plant and equipment accounts. Cost and accumulated depreciation applicable to items replaced or retired are eliminated from the related accounts with any gain or loss on the disposition included as income.

Clean-Seas, Inc. has purchased a pyrolysis unit for piloting and demonstration purposes which has been commissioned in Hyderabad, India as of May 2022. The unit will be used to showcase the Company's technology and services, turning waste plastic into environmentally friendly commodities, to potential customers.

Property and equipment stated at cost, less accumulated depreciation consisted of the following:

---

| | | |
|:---|:---|:---|
|  | September 30,<br> 2022 | December 31,<br> 2021 |
| &nbsp;&nbsp;&nbsp;Pyrolysis unit | $184389 | $150505 |
| &nbsp;&nbsp;&nbsp;Equipment | 20830 |  |
| &nbsp;&nbsp;&nbsp;Less: accumulated depreciation |  |  |
| Property and equipment, net | $205219 | $150505 |

---

*<u>Depreciation expense</u>*

As of September 30, 2022, the Company's fixed assets have not yet been placed into service. Depreciation will begin on the date the assets are placed into service.

**NOTE 5 – LOANS PAYABLE**

As of December 31, 2020, a third party loaned the Company a total of $114,500. The loan was used to cover general operating expenses, is non-interest bearing and due on demand. During the year ended December 30, 2021, the Company repaid $100,000 of the loan. During the nine months ended September 30, 2022, the same individual provided consulting/IR services to the Company valued at $100,000. The amount due was added to the note payable for a balance due of $114,500 as of September 30, 2022.

Effective January 1, 2022, the Company acquired a financing loan for its Director and Officer Insurance for $26,381. The loan bears interest at 10.45%, requires monthly payments of $3,060.36 and is due within one year. As of September 30, 2022, the balance due is $3,034.

On August 17, 2022, a third party loaned the Company $14,000. The loan has an original issue discount of $3,500, for a total note payable of $17,500. The note bears interest at 8% and is due in one year.

**NOTE 6 – CONVERTIBLE NOTE**

On March 31, 2022, the Company issued a Promissory Note to Silverback Capital Corporation ("Silverback") in the amount of $360,000. The Company received $300,000, net of a $60,000 OID. The note bears interest at 8% per annum and matures in one year. The note may be converted to shares of common stock at $0.02 per share, provided, that if the Company effects a Qualified Offering (as defined in the note) the conversion price will be such price that represents a 20% discount to the offering price of the Company's common Stock in the Offering. In the event of a default Silverback will have the option to convert at the lower of 1) .02 per share, or 2) a 20% discount to the five day trailing VWAP of the common stock.

**NOTE 7 – RELATED PARTY TRANSACTIONS**

As of September 30, 2022 and December 31, 2021, the Company owed Chris Percy, Director, $96,250 and $158,500, respectively, for accrued compensation.

As of September 30, 2022 and December 31, 2021, the Company owed Erfran Ibrahim, former CTO, $60,000 and $60,000, respectively, for accrued compensation.

As of September 30, 2022 and December 31, 2021, the Company owed Dan Bates, CEO, $150,000 and $90,000, respectively, for accrued compensation.

On August 1, 2022, the Company issued a note payable to Mr. Bates for $10,000. The proceeds from the note were used for operating expenses. The note accrues interest at 8% and matures in one year. As of September 30, 2022, there is $133 of accrued interest on the note.

On September 15, 2022, the Company issued a note payable to Mr. Bates for $35,040. The proceeds from the note were used for operating expenses. The note accrues interest at 8% and matures in one year. As of September 30, 2022, there is $117 of accrued interest on the note.

On February 21, 2021, the Company amended the employment agreement with Dan Bates, CEO. The amendment extended the term of his agreement from three years commencing May 27, 2020 to expire on May 27, 2025.

The Company has entered into an at-will consulting agreement with John Owen to serve as VP of Operations. Mr. Owen is to receive $12,500 a month. As of September 30, 2022, the Company owes Mr. Owen $37,500 for accrued compensation. Mr. Owen resigned from the Company, effective November 21, 2022.

The Company has entered into an at-will consulting agreement with Rachel Boulds to serve as Chief Financial Officer. Ms. Boulds is to receive $5,000 a month. As of September 30, 2022, the Company owes Ms. Boulds $15,000 for accrued compensation.

**NOTE 8 – COMMON STOCK**

The Company amended its Articles of Incorporation, effective June 29, 2021, to increase its authorized shares of common stock to 2,000,000,000.

The Company has entered into two consulting agreements that require the issuance of 20,834 shares of common stock per month through May 2023. During Q1 2022, the shares were valued at the closing stock price on the date of grant for total non-cash stock compensation of $1,771. During Q2 2022, the shares were valued at the closing stock price on the date of grant for total non-cash stock compensation of $2,246. During Q2 2022, the shares were valued at the closing stock price on the date of grant for total non-cash stock compensation of $1,085. As of September 30, 2022, the shares have not been issued by the transfer agent and are included in common stock to be issued.

The Company has entered into a consulting agreement that requires $3,000 per month be paid with shares of common based on the closing stock price of the applicable date each month. During Q1 2022, the Company issued 525,016 shares of common stock that were granted and accounted for in the prior period pursuant to the terms of this agreement. For Q1 2022, there are 292,861 shares of common stock due. For Q2 2022, there are approximately 306,000 shares of common stock due. For Q3 2022, there are approximately 553,000 shares of common stock due. As of September 30, 2022, the shares have not been issued by the transfer agent and are included in common stock to be issued.

The Company has entered into a consulting agreement that require the issuance of 5,000 shares of common stock per month beginning February 2022. As of September 30, 2022, no shares have yet been issued by the transfer agent and are included in common stock to be issued. the shares were valued at the closing stock price on the date of grant for total non-cash stock compensation of $1,046

During Q1 2022, the Company granted 1,000,000 shares of common stock for services, for total non-cash compensation expense of $30,800. As of September 30, 2022, 298,861 shares have not been issued by the transfer agent and are included in common stock to be issued.

On April 1, 2022, the Company sold 30,000,000 shares of common stock to Silverback for total proceeds of $600,000.

During Q2 2022, the Company issued 5,000,000 shares of common stock for services. The shares were valued based on the closing stock price on the date of grant for total non-cash compensation expense of $148,800.

During Q3 2022, the Company issued 5,000,000 shares of common stock for services. The shares were valued based on the closing stock price on the date of grant for total non-cash compensation expense of $82,500.

During Q3 2022, the Company granted 2,500,000 shares of common stock pursuant to the terms of a new joint venture agreement. The shares were valued based on the closing stock price on the date of grant for total non-cash compensation expense of $35,500. As of September 30, 2022, the shares have not been issued by the transfer agent and are included in common stock to be issued.

**NOTE 9 – PREFERRED STOCK**

The Company is authorized to issue 10,000,000 shares of Preferred Stock at $0.001 par value per share with the following designations.

*<u>Series A Redeemable Preferred Stock</u>*

 

On September 21, 2020, the Company created a series of Preferred Stock designating 2,000,000 shares as Series A Redeemable Preferred Stock ranks senior to the Company's Common Stock upon the liquidation, dissolution or winding up of the Company. The Series A Preferred Stock does not bear a dividend or have voting rights and is not convertible into shares of our Common Stock.

*<u>Series B Preferred Stock</u>*

 

On December 14, 2020, the Company designated 2,000,000 shares of its authorized preferred stock as Series B convertible, non-voting preferred Stock. The Series B Preferred Stock does not bear a dividend or have voting rights. The Series B Preferred Stock will automatically be converted on January 1, 2023 into shares of common stock at the rate of 10 shares of Common Stock for each share of Preferred Stock. Holders of our Series B Preferred Stock have anti-dilution rights protecting their interests in the Company from the issuance of any additional shares of capital stock for a two year period following conversion of the Preferred Stock calculated at the rate of 20% on a fully diluted basis.

On December 17, 2020, the Company entered into a three-year consulting agreement with Leonard Tucker LLC. Per the terms of the agreement, Leonard Tucker LLC received 2,000,000 shares of Series B Preferred Stock for services provided. The preferred stock to be issued are classified as mezzanine equity until they are fully issued.

*<u>Series C Preferred Stock</u>*

 

On February 19, 2021, the Company amended its Articles of Incorporation whereby 2,000,000 shares of preferred stock were designated Series C Convertible Preferred Stock. The holders of the Series C preferred stock are entitled to 100 votes and shall vote together with the holders of common stock. Each share of the Series C preferred stock is convertible in ten shares of common stock.

**NOTE 10 – WARRANTS**

On March 31, 2022, the Company issued warrants to purchase up to 9,000,000 shares of common stock to Silverback Capital Corporation in conjunction with convertible debt (Note 6). The warrants are exercisable for 3 years at a 25% premium to a Qualified Offering price. The warrants were evaluated for purposes of classification between liability and equity. The warrants do not contain features that would require a liability classification and are therefore considered equity.

Using the fair value calculation, the relative fair value between the debt issued and the warrants was calculated to determine the warrants recorded equity amount of $195,482, accounted for in additional paid in capital.

The Black Scholes pricing model was used to estimate the fair value of the warrants issued to purchase up to 9,000,000 shares of common stock with the following inputs:

---

| | |
|:---|:---|
| Common shares available to purchase | 9000000 |
| Share price | $0.0512 |
| Exercise Price | $0.025 |
| Term | 3 years |
| Volatility | 185.23% |
| Risk Free Interest Rate | 2.45% |
| Dividend rate |  |
| Intrinsic value | $— |

---

**NOTE 11 - DISCONTINUED OPERATIONS**

In accordance with the provisions of ASC 205-20, *Presentation of Financial Statements*, we have separately reported the liabilities of the discontinued operations in the consolidated balance sheets. The liabilities have been reflected as discontinued operations in the consolidated balance sheets as of September 30, 2022 and December 31, 2021, and consist of the following:

---

| | | |
|:---|:---|:---|
|  | September 30, 2022 | December 31, 2021 |
| Current Liabilities of Discontinued Operations: |  |  |
| Accounts payable | $49159 | $49159 |
| Accrued expenses | 6923 | 6923 |
| Loans payable | 11011 | 11011 |
| Total Current Liabilities of Discontinued Operations: | $67093 | $67093 |

---

**NOTE 12 – COMMITMENTS AND CONTINGENCIES**

As of September 30, 2022, the Company has approximately seven to eight consulting agreements with various individuals. Each agreement has a monthly fee a total monthly commitment of approximately $58,000.

**NOTE 13 – SUBSEQUENT EVENTS**

In accordance with SFAS 165 (ASC 855-10) management has performed an evaluation of subsequent events through the date that the financial statements were issued and has determined that it does not have any material subsequent events to disclose in these unaudited consolidated financial statements.

Clean-Seas, Inc. has established Clean-Seas Arizona as a joint venture pursuant to a Memorandum of Understanding (the "MOU") signed on November 4, 2022 with Arizona State University and the Rob and Melani Walton Sustainability Solution Service. Pursuant to the MOU, the parties intend to establish a 100 ton per day waste plastic to clean hydrogen conversion facility in Arizona.

Subsequent to September 30, 2022, the Company granted 16,500,000 shares of common stock to officers and directors for services rendered.

Subsequent to September 30, 2022, the Company granted 20,785,842 shares of common stock to various consultants and other service providers for serviced rendered.

Subsequent to September 30, 2022, the Company's transfer agent issued 3,925,039 shares of common stock that had been granted and accounted for prior to 2022.

On October 13, 2022, the Company received $40,000 pursuant to loan agreement with a third party. The loan is to be repaid with sixty days, plus 20%. The loan was repaid in full on December 15, 2022. The Company has provided 100% warrant coverage of the investment at ..01 for three years. The warrant coverage at $.01 for three years is guaranteed through any reverse split. If the principal and interest are not returned within the 60 day period, the warrant coverage increases to 125%; after 90 days, the warrant coverage increases to 175%.

On December 9, 2022, the Company entered into a securities purchase agreement with Coventry Enterprises, LLC ("Coventry"), pursuant to which Coventry purchased a 5% unsecured promissory Note (the "Note") from the Company in the principal amount of $300,000 of which $45,000 was retained by Coventry through an Original Issue Discount for due diligence and origination related to this transaction. The Note matures on November 6, 2023, with guaranteed interest of 5% which is deemed earned upon the execution date of the Note. In the event of a default the loan is convertible into shares of the Company's common stock at $0.001 per share. The principal amount and the guaranteed interest shall be due and payable in seven equal monthly payments (each, a "Monthly Payment") of $45,000, commencing on May 6, 2023, and continuing the 6th day of each month thereafter until paid in full not later than November 6, 2023, or such earlier date as this Note is required or permitted to be repaid.

Per the terms of the securities purchase agreement the Company issued 15,500,000 shares of its common stock to Coventry. If the Company files an initial Registration Statement within forty-five calendar days from the date of the Note, then Coventy, pursuant to its mandatory obligations thereunder, shall, within ten (10) calendar days thereafter, return to the Company's treasury for cancellation twelve million five hundred thousand (12,500,000) shares.

Upon an event of default under the Note, the outstanding principal and interest thereon may be converted, at the option of Coventry, into shares of Common Stock at a conversion price equal to 90% per share of the lowest per-share trading price during the 20 trading day period before the conversion.

**CLEAN VISION CORPORATION**

**Up to 23,000,000 Shares of Common Stock** 

**January 23, 2023**

**PART II**

**INFORMATION NOT REQUIRED IN THE PROSPECTUS**

**Item 13. Other Expenses of Issuance and Distribution.**

The following is an itemized statement of the estimated amounts of all expenses payable by us in connection with the registration of the Common Stock, other than underwriting discounts and commissions. All amounts are estimates except the SEC registration fee and FINRA filing fee.

---

| | |
|:---|:---|
| &nbsp;&nbsp;Filing Fee - Securities and Exchange Commission | $18.82 |
| &nbsp;&nbsp;Accounting Fees and Expenses | $\* |
| &nbsp;&nbsp;Legal Fees and Expenses | $\* |
| &nbsp;&nbsp;Total | $\* |

---

\* Estimates.

**Item 14. Indemnification of Directors and Officers.**

Our bylaws provide that we may indemnify our directors, officers and employees to the fullest extent permitted by the laws of the State of Nevada. As authorized by <u>Section 78.751</u> of the Nevada Revised Statutes, we may indemnify our officers and directors against expenses incurred by such persons in connection with any threatened, pending or completed action, suit or proceedings, whether civil, criminal, administrative or investigative, involving such persons in their capacities as officers and directors, so long as such persons acted in good faith and in a manner which they reasonably believed to be in our best interests. If the legal proceeding, however, is by or in our right, the director or officer may not be indemnified in respect of any claim, issue or matter as to which he is adjudged to be liable for negligence or misconduct in the performance of his duty to us unless a court determines otherwise.

Under Nevada law, corporations may also purchase and maintain insurance or make other financial arrangements on behalf of any person who is or was a director or officer (or is serving at our request as a director or officer of another corporation) for any liability asserted against such person and any expenses incurred by him in his capacity as a director or officer. These financial arrangements may include trust funds, self-insurance programs, guarantees and insurance policies.

Additionally, our Articles of Incorporation provide that any person who was or is a party or was or is threatened to be made a party to any threatened, pending, or completed action, suit, or proceeding, whether civil, criminal, administrative, or investigative (whether or not by or in the right of the Company) by reason of the fact that he is or was a director, officer, incorporator, employee, or agent of the Corporation, or is or was serving at the request of the Company as a director, officer, incorporator, employee, partner, trustee, or agent of another corporation, partnership, joint venture, trust, or other enterprise (including an employee benefit plan), is entitled to be indemnified by the Company to the full extent then permitted by law against expenses (including counsel fees and disbursements), judgments, fines (including excise taxes assessed on a person with respect to an employee benefit plan), and amounts paid in settlement incurred by him in connection with such action, suit, or proceeding and, if so requested, the Company is required to advance (within two business days of such request) any and all such expenses to the person indemnified; <u>provided</u>, <u>however</u>, that (i) the foregoing obligation of the Company does not apply to a claim that was commenced by the person indemnified without the prior approval of the Board of Directors.

Such right of indemnification continues as to a person who has ceased to be a director, officer, incorporator, employee, partner, trustee, or agent and inures to the benefit of the heirs and personal representatives of such a person. The indemnification provided by the Articles of Incorporation is not exclusive of any other rights which may be provided now or in the future under any provision of the bylaws, by any agreement, by vote of stockholders, by resolution of disinterested directors, by provisions of law, or otherwise.

Neither our Bylaws nor our Articles of Incorporation, as amended, include any specific indemnification provisions for our officers or directors against liability under the Securities Act. Additionally, insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the Company pursuant to the foregoing provisions, or otherwise, the Company has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable.

**Item 15. Recent Sales of Unregistered Securities**

There have been no sales of unregistered securities within the last three years, which would be required to be disclosed pursuant to Item 701 of Regulation S-K, except for the following:

On April 10, 2019, we issued 3,000,000 shares of Common Stock in connection with the conversion of a $250,500 loan payable.

During the year ended December 31, 2019, we issued 3,000,000 shares of Common Stock to Christopher Percy for services rendered.

During the year ended December 31, 2019, we issued 300,000 shares of Common Stock to PCG Advisory Inc. for services. The shares were valued at the closing stock price on the date of grant for total non-cash stock compensation expense of $125,500.

On April 20, 2020, we issued 2,000,000 shares of Common Stock to a consultant. The shares were valued at $0.05 for total non-cash compensation of $100,000.

On May 19, 2020, we issued 2,500,000 shares of Common Stock as consideration for an Exchange Agreement we entered into with Clean-Seas and Dan Bates, the sole shareholder of Clean-Seas and our Chief Executive Officer.

On August 19, 2020, we issued 5,000,000 shares of Common Stock for conversion of $250,000 of a loan payable.

On July 1, 2020, we issued 3,000,000 shares of Common Stock for services. The shares were valued at $0.19 for total non-cash compensation of $380,000.

On September 17, 2020, we issued 500,000 shares of Common Stock for services. The shares were valued at the closing stock price on the date of grant of $0.11, for total non-cash compensation of $55,000.

On September 21, 2020, we issued 2,000,000 shares of Series A Redeemable Preferred Stock to 100BIO, LLC. As of March 31, 2022, all of the issued shares of Series A Redeemable Preferred Stock were cancelled and returned to the Company.

On October 20, 2020, we issued 500,000 shares of Common Stock for services. The shares were valued at the closing stock price on the date of grant of $0.105, for total non-cash compensation of $52,500.

On December 17, 2020, the Company entered into a three-year consulting agreement with Leonard Tucker LLC. Per the terms of the agreement, Leonard Tucker LLC received 2,000,000 shares of Series B Preferred Stock for services provided. The shares were valued at $0.90 for a total non-cash expense of $1,800,000

On December 17, 2020, we issued 2,000,000 shares of Series B Preferred Stock for services provided by a consultant.

On February 1, 2021, we granted 20,000 shares of Common Stock to Mr. Ibrahim, our former Chief Technology Officer, for services. The shares were valued at $0.14 for total non-cash expense of $2,800.

On February 21, 2021, we issued 2,000,000 shares of Series C Preferred Stock to Mr. Bates for services, which shares were valued at $0.18 per share, for a total non-cash expense of $359,800.

On February 22, 2021, we issued 500,000 shares of Common Stock to Ms. Boulds for services. The shares were valued at $0.2059 for total non-cash expense of $102,950.

On September 30, 2021, we granted 160,000 shares of Common Stock to Mr. Ibrahim, former Chief Technology Officer, for services. The shares were valued at $0.10 for total non-cash expense of $14,930.

On December 16, 2021, the Company granted Michael Dorsey, Director, 500,000 shares of common stock. The shares were valued at $0.028, the closing stock price on the date of grant, for total non-cash expense of $14,000.

On December 16, 2021, the Company granted 500,000 shares of common stock to John Owen for services. The shares were valued at $0.028, the closing stock price on the date of grant, for total non-cash expense of $14,000.

During the year ended December 31, 2021, the Company issued 7,250,000 shares of common stock for services, for total non-cash compensation expense of $807,240.

During the year ended December 31, 2021, the Company granted 1,391,688 shares of common stock for services, for total non-cash compensation expense of $169,140. These shares have not yet been issued as of December 31, 2021 and are included in common stock to be issued.

During the year ended December 31, 2021, the Company sold 150,000,000 shares of common stock for total cash proceeds of $3,000,000. The shares were sold at $0.02, pursuant to the Company's Regulation A Offering Statement qualified on June 21, 2021.

During the year ended December 31, 2021, the Company issued 53,901,860 shares of common stock for conversion of approximately $1,391,000 of debt.

During Q1 2022, the Company granted 1,000,000 shares of common stock for services, for total non-cash compensation expense of $30,800.

On April 1, 2022, the Company sold 30,000,000 shares of common stock to Silverback Capital Corporation for total proceeds of $600,000.

During Q2 2022, the Company issued 10,000,000 shares of common stock for services. The shares were valued based on the closing stock price on the date of grant for total non-cash compensation expense of $148,800.

During Q3 2022, the Company issued an aggregate of 7,500,000 shares of common stock for services. The shares were valued based on the closing stock price on the date of grant for an aggregate total non-cash compensation expense of $118,000.

During Q4, 2022, the Company granted 16,500,000 shares of common stock to officers and directors for serviced rendered.

During Q4, 2022, the Company granted 20,785,842 shares of common stock to various consultants and other service providers for serviced rendered.

During Q4, 2022, the Company's transfer agent issued 3,925,039 shares of common stock that had been granted and accounted for prior to Q4 2022.

Per the terms of the Securities Purchase Agreement with Coventry, the Company issued 15,500,000 shares of its restricted common stock to Coventry effective December 9, 2022. If the Company files its initial Registration Statement within forty-five calendar days from the date of the Note, then Coventry, pursuant to its mandatory obligations thereunder, shall, within ten (10) calendar days thereafter, return to the Company's treasury for cancellation twelve million five hundred thousand (12,500,000) shares of common stock.

\* \* \* \* \* \* \*

The use of proceeds associated with the above listed sales of unregistered securities was for general working capital purposes.

The issuances and grants described above were exempt from registration pursuant to Section 4(a)(2), and/or Rule 506 of Regulation D of the Securities Act, since the foregoing issuances and grants did not involve a public offering, the recipients took the securities for investment and not resale, we took take appropriate measures to restrict transfer, and the recipients were (a) "<u>accredited investors</u>"; (b) had access to similar documentation and information as would be required in a Registration Statement under the Securities Act; and/or (c) were officers or directors of the Company. The securities are subject to transfer restrictions, and the certificates evidencing the securities contain an appropriate legend stating that such securities have not been registered under the Securities Act and may not be offered or sold absent registration or pursuant to an exemption therefrom. The securities were not registered under the Securities Act and such securities may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act and any applicable state securities laws.

The issuance of Common Stock upon conversion of notes described above were exempt pursuant to Section 3(a)(9) of the Securities Act, as no commission or other remuneration was paid or given directly or indirectly for soliciting the exchanges and the Company did not receive any compensation for the issuance of the shares of Common Stock in connection with such conversions.

**Item 16. Exhibits**

&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 exhibits listed in the following Exhibit Index are filed as part of this Registration Statement.

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Exhibit Number** | &nbsp;&nbsp;**Description of Exhibit** |
| &nbsp;&nbsp;3.1 | &nbsp;&nbsp;[Articles of Incorporation, as amended, as currently in effect (incorporated by reference to Exhibit 3.1 of the Company's Form 10 filed with the SEC on December 20, 2021)](https://www.sec.gov/Archives/edgar/data/1391426/000157570521000177/ex2_1.htm) |
| &nbsp;&nbsp;3.2 | &nbsp;&nbsp;[Bylaws (incorporated by reference to Exhibit 3.2 of the Company's Form 10 filed with the SEC on December 20, 2021)](https://www.sec.gov/Archives/edgar/data/1391426/000157570521000177/ex2_2.htm) |
| &nbsp;&nbsp;3.3 | &nbsp;&nbsp;[Certificate of Designation of Series B Non-Voting Convertible Preferred Stock (incorporated by reference to Exhibit 3.3 of the Company's Form 10 filed with the SEC on December 20, 2021)](https://www.sec.gov/Archives/edgar/data/1391426/000157570521000177/ex2_4.htm) |
| &nbsp;&nbsp;3.4 | &nbsp;&nbsp;[Certificate of Designation of Series C Convertible Preferred Stock (incorporated by reference to Exhibit 3.4 of the Company's Form 10 filed with the SEC on December 20, 2021)](https://www.sec.gov/Archives/edgar/data/1391426/000157570521000177/ex2_5.htm) |
| &nbsp;&nbsp;3.5 | &nbsp;&nbsp;[Certificate of Amendment to Articles of Incorporation (incorporated by reference to Exhibit 3.5 of the Company's Form 10 filed with the SEC on December 20, 2021)](https://www.sec.gov/Archives/edgar/data/1391426/000157570521000274/ex2_6.htm) |
| &nbsp;&nbsp;3.6 | &nbsp;&nbsp;Articles of Incorporation for Endless Energy (incorporated by reference to Exhibit 3.6 of the Company's Form 10 filed with the SEC on December 20, 2021) |
| &nbsp;&nbsp;3.7 | &nbsp;&nbsp;Articles of Incorporation for Clean-Seas, Abu Dhabi PVT. LTD (incorporated by reference to Exhibit 3.7 of the Company's Form 10 filed with the SEC on December 20, 2021) |
| &nbsp;&nbsp;3.8 | &nbsp;&nbsp;Articles of Incorporation for Clean-Seas India Private Limited (incorporated by reference to Exhibit 3.8 of the Company's Form 10 filed with the SEC on December 20, 2021) |
| &nbsp;&nbsp;4.1\* | &nbsp;&nbsp;[Form of 5% Promissory Note](ex4_1.htm) |
| &nbsp;&nbsp;5.1\*\* | &nbsp;&nbsp;Opinion of Lucosky Brookman LLP |
| &nbsp;&nbsp;10.1 | &nbsp;&nbsp;[Exchange Agreement between Clean-Seas, Inc. and Byzen Digital Inc. (incorporated by reference to Exhibit 10.1 of the Company's Form 10 filed with the SEC on December 20, 2021)](https://www.sec.gov/Archives/edgar/data/1391426/000157570521000177/ex6_1.htm) |
| &nbsp;&nbsp;10.2† | &nbsp;&nbsp;[Employment Agreement between Dan Bates and Byzen Digital, Inc. (incorporated by reference to Exhibit 10.3 of the Company's Form 10 filed with the SEC on December 20, 2021)](https://www.sec.gov/Archives/edgar/data/1391426/000157570521000177/ex6_3.htm) |
| &nbsp;&nbsp;10.3† | &nbsp;&nbsp;[Employment Agreement between Christopher Percy and Byzen Digital, Inc (incorporated by reference to Exhibit 10.4 of the Company's Form 10 filed with the SEC on December 20, 2021)](https://www.sec.gov/Archives/edgar/data/1391426/000157570521000177/ex6_5.htm) |
| &nbsp;&nbsp;10.4† | &nbsp;&nbsp;[Amendment to Employment Agreement between Dan Bates and Byzen Digital, Inc. ((incorporated by reference to Exhibit 10.5 of the Company's Form 10 filed with the SEC on December 20, 2021)](https://www.sec.gov/Archives/edgar/data/1391426/000157570521000177/ex6_6.htm) |
| &nbsp;&nbsp;10.5 | &nbsp;&nbsp;[Consulting Agreement between Leonard Tucker LLC and Byzen Digital, Inc. (incorporated by reference to Exhibit 10.6 of the Company's Form 10 filed with the SEC on December 20, 2021)](https://www.sec.gov/Archives/edgar/data/1391426/000157570521000177/ex6_16.htm) |
| &nbsp;&nbsp;10.6 | &nbsp;&nbsp;[Licensing Agreement with Kingsberry Fuel Cell Corporation, dated December 6, 2021 (incorporated by reference to Exhibit 10.7 of the Company's Form 10 filed with the SEC on December 20, 2021)](https://www.sec.gov/Archives/edgar/data/1391426/000157570521000868/ex10_7.htm) |
| &nbsp;&nbsp;10.7\* | &nbsp;&nbsp;[Form of Securities Purchase Agreement between Clean Vision Corporation and Coventry Enterprises, LLC dated December 9, 2022](ex10_7.htm) |
| &nbsp;&nbsp;10.8\* | &nbsp;&nbsp;[Form of Registration Rights Agreement between Clean Vision Corporation and Coventry Enterprises, LLC dated December 9, 2023](ex10_8.htm) |
| &nbsp;&nbsp;23.1\* | &nbsp;&nbsp;[Consent of Fruci & Associates II, PLLC](ex23_1.htm) |
| &nbsp;&nbsp;23.2\*\* | &nbsp;&nbsp;Consent of Lucosky Brookman LLP (included in Exhibit 5.1) |
| &nbsp;&nbsp;24.1\* | &nbsp;&nbsp;Instance Document |
| &nbsp;&nbsp;101.INS\*\* | &nbsp;&nbsp;XBRL Taxonomy Schema Document |
| &nbsp;&nbsp;101.SCH\*\* | &nbsp;&nbsp;XBRL Taxonomy Calculation Linkbase Document |
| &nbsp;&nbsp;101.CAL\*\* | &nbsp;&nbsp;XBRL Taxonomy Definition Linkbase Document |
| &nbsp;&nbsp;101.DEF\*\* | &nbsp;&nbsp;XBRL Taxonomy Label Linkbase Document |
| &nbsp;&nbsp;101.LAB\*\* | &nbsp;&nbsp;XBRL Taxonomy Presentation Linkbase Document |
| &nbsp;&nbsp;101.PRE\*\* |  |

---

[107 Calculation of Filing fee Table](ex107.htm)

\* Filed herewith <br> \*\* To be filed by amendment. <br> † Management contract or compensatory plan or arrangement.

**(b) Consolidated Financial Statement Schedules**

Schedules not listed above have been omitted because the information required to be set forth therein is not applicable or is shown in the financial statements or notes thereto.

**Item 17. Undertakings.**

The undersigned registrant hereby undertakes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) To file, during any period in which offers, or sales are being made, a post-effective amendment to this registration statement to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Include any prospectus required by Section 10(a)(3) of the Securities Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20% change in the maximum aggregate offering price set forth in the "<u>Calculation of Registration Fee</u>" table in the effective registration statement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) That, for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) That, for the purpose of determining liability of the Registrant under the Securities Act to any purchaser in the initial distribution of the securities, the undersigned Registrant undertakes that in a primary offering of securities of the undersigned Registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned Registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any preliminary prospectus or prospectus of the undersigned Registrant relating to the offering required to be filed pursuant to Rule 424;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned Registrant or used or referred to by the undersigned registrant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The portion of any other free writing prospectus relating to the offering containing material information about the undersigned Registrant or its securities provided by or on behalf of the undersigned Registrant; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Any other communication that is an offer in the offering made by the undersigned Registrant to the purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) The undersigned registrant hereby undertakes that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) For purposes of determining any liability under the Securities Act of 1933, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b) (1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) For the purpose of determining any liability under the Securities Act of 1933, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

**SIGNATURES**

Pursuant to the requirements of the Securities Act of 1933, as amended, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Manhattan Beach, California on January 23, 2023.

---

| | |
|:---|:---|
| &nbsp;&nbsp;**CLEAN VISION CORPORATION** | &nbsp;&nbsp;**CLEAN VISION CORPORATION** |
| &nbsp;&nbsp;By: | &nbsp;&nbsp; */s/ Daniel Bates* |
| &nbsp;&nbsp;Name: | &nbsp;&nbsp;Daniel Bates |
| &nbsp;&nbsp;Title: | &nbsp;&nbsp;Chief Executive Officer |
|  | &nbsp;&nbsp;(Principal Executive Officer) |

---

POWER OF ATTORNEY: KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Daniel Bates and Rachel Boulds, or any one of them, as his or her, true and lawful attorneys-in-fact and agents, with full power of substitution and re-substitution for him/her and in his/her name, place and stead, in any and all capacities, to sign any and all amendments (including post-effective amendments) to this Registration Statement, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he/she might or could do in person, hereby ratifying and confirming all that each of said attorney-in-fact or his/her substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, as amended, this Registration Statement has been signed below by the following persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**NAME** | **POSITION** | &nbsp;&nbsp;**DATE** |
| &nbsp;&nbsp; */s/ Daniel Bates* | Chief Executive Officer, President and Director | &nbsp;&nbsp;January 23, 2023 |
| &nbsp;&nbsp;Daniel Bates | (Principal Executive Officer) |  |
| &nbsp;&nbsp; /s/ Rachel Boulds | Chief Financial Officer  | &nbsp;&nbsp;January 23, 2023 |
| &nbsp;&nbsp;Rachel Boulds | (Principal Financial Officer) |  |
| &nbsp;&nbsp; /s/ Michael Dorsey | Director | &nbsp;&nbsp;January 23, 2023 |
| &nbsp;&nbsp;Dr. Michael Dorsey |  |  |
| &nbsp;&nbsp; */s/ Gregg Michael Boehmer* | Director | &nbsp;&nbsp;January 23, 2023 |
| &nbsp;&nbsp;Gregg Michael Boehmer |  |  |
| &nbsp;&nbsp; */s/ Bart Fisher* | Director | &nbsp;&nbsp;January 23, 2023 |
| &nbsp;&nbsp;Bart Fisher |  |  |

---

## Exhibit 4.1

**Exhibit 4.1**

NEITHER THIS SECURITY NOR THE SECURITIES THAT MAY BE CONVERTED (SOLELY UPON AN EVENT OF DEFAULT IN THE ISSUER'S REPAYMENT OBLIGATIONS HEREUNDER) HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANIES. THIS SECURITY AND THE SECURITIES ISSUABLE UPON CONVERSION OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

**Original Issue Date: December 9, 2022 Principal Amount: $300,000.00**

**<u>5% PROMISSORY NOTE</u>**

THIS IS A 5% PROMISSORY NOTE of Clean Vision Corporation, a Nevada corporation (the "<u>Company</u>"), having its principal place of business at 2711 N. Sepulveda Blvd., #1051, Manhattan Beach, California 90266-2725 (this "<u>Note</u>"), which represents a duly authorized and validly issued debt of the Company.

FOR VALUE RECEIVED, the Company hereby promises to pay to the order of Coventry Enterprises LLC, a Delaware limited liability company (the "<u>Holder</u>"), or its registered assigns, the principal sum of three hundred thousand ($300,000.00) (the "<u>Principal Amount</u>") and "<u>Guaranteed Interest</u>" thereon at the rate of five percent (5.00%) per annum for the 12 months from and after the Original Issue Date (notwithstanding the 11-month term of this Note for an aggregate Guaranteed Interest of fifteen thousand Dollars ($15,000.00), all of which Guaranteed Interest shall be deemed earned as of the date hereof. The Principal Amount and the Guaranteed Interest shall be due and payable in seven equal monthly payments (each, a "<u>Monthly Payment</u>") of forty-five thousand and 00/100ths Dollars ($45,000.00), commencing on May 6, 2023 and continuing on the 6<sup>th</sup> day of each month thereafter (each, a "<u>Monthly Payment Date</u>") until paid in full not later than November 6, 2023 (the "<u>Maturity Date</u>"), or such earlier date as this Note is required or permitted to be repaid as provided hereunder, and to pay such other interest to the Holder on the aggregate unconverted and then outstanding Principal Amount of this Note in accordance with the provisions hereof.

Notwithstanding anything contained herein, this Note shall bear interest on the aggregate unpaid Principal Amount and Guaranteed Interest from and after the occurrence and during the continuance of an Event of Default pursuant to Section 7(a) at the rate (the "<u>Default Rate</u>"), which shall be equal to (i) the lesser of eighteen percent (18%) per annum or (ii) the maximum rate permitted by law. Unless otherwise agreed or required by applicable law, payments will be applied first to any unpaid collection costs; then to any unpaid fees; then to any unpaid "Default Rate" interest; and any remaining amount shall be applied first to any unpaid Guaranteed Interest and then to any unpaid Principal Amount. Notwithstanding the Monthly Payment Dates, payment of "Default Rate" interest shall be due and payable by the Company to the Holder on the last day of each calendar month during which Default Rate interest accrued.

This Note is subject to the following additional provisions:

Upon the execution and delivery of this Note, the sum of two hundred fifty-five thousand and 00/100ths Dollars ($255,000.00) shall be remitted and delivered to, or on behalf of, the Company. Forty-five thousand and 00/100ths Dollars ($45,000.00) shall be retained by the Holder through an Original Issue Discount for due diligence, administration, origination, and legal fees and for documentation preparation fees.

Additionally, in the event that the Company files an Offering Statement on Form 1-A, which the SEC qualifies and if it remains qualified, the Holder may choose to convert any amount up to the entire balance of this Note, including Guaranteed Interest into shares of the Company's Common Stock at the REG A offering price.

<u>Section 1</u>. <u>Definitions</u>. For the purposes hereof, the following terms shall have the following meanings:

"<u>Alternate Consideration</u>" shall have the meaning set forth in Section 5(f).

"<u>Alternative Conversion Price</u>" shall have the meaning set forth in Section 5(b).

"<u>Bankruptcy Event</u>" means any of the following events: (a) the Company (as such term is defined in Rule 1-02(w) of Regulation S-X thereof) commences a case or other proceeding under any bankruptcy, reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation, or similar law of any jurisdiction relating to the Company; (b) there is commenced against the Company any such case or proceeding that is not dismissed within 60 days after commencement; (c) the Company is adjudicated insolvent or bankrupt or any order of relief or other order approving any such case or proceeding is entered; (d) the Company suffers any appointment of any custodian or the like for it or any substantial part of its property that is not discharged or stayed within 60 calendar days after such appointment; (e) the Company makes a general assignment for the benefit of creditors; (f) the Company calls a meeting of its creditors with a view to arranging a composition, adjustment or restructuring of its debts; or (g) the Company, by any act or failure to act, expressly indicates its consent to, approval of or acquiescence in any of the foregoing or takes any corporate or other action for the purpose of effecting any of the foregoing.

"<u>Beneficial Ownership Limitation</u>" shall have the meaning set forth in Section 5(d).

"<u>Buy-In</u>" shall have the meaning set forth in Section 5(c)(v).

"<u>Calculated Conversion Price</u>" shall have the meaning set forth in Section 5(b).

"<u>Change of Control Transaction</u>" means the occurrence after the date hereof of any of (a) an acquisition after the date hereof by an individual or legal entity or "group" (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act) of effective control (whether through legal or beneficial ownership of capital stock of the Company, by contract or otherwise) of in excess of fifty percent (50%) of the voting securities of the Company (other than in connection with any conversion of this Note); (b) the Company merges into or consolidates with any other Person, or any Person merges into or consolidates with the Company and, after giving effect to such transaction, the stockholders of the Company immediately prior to such transaction own less than fifty percent (50%) of the aggregate voting power of the Company or the successor entity of such transaction; (c) the Company sells or transfers all or substantially all of its assets to another Person and the stockholders of the Company immediately prior to such transaction own less than fifty percent (50%) of the aggregate voting power of the acquiring entity immediately after the transaction; (d) a replacement at one time or within a three-year period of more than one-half of the members of the Board of Directors, which is not approved by a majority of those individuals who are members of the Board of Directors on the Original Issue Date (or by those individuals who are serving as members of the Board of Directors on any date whose nomination to the Board of Directors was approved by a majority of the members of the Board of Directors who are members on the date hereof); or (e) the execution by the Company of an agreement to which the Company is a party or by which it is bound, providing for any of the events set forth in clauses (a) through (d), above.

"<u>Common Stock</u>" means the common stock of the Company, par value $0.001 per share, and any other class of securities into which such securities may hereafter be reclassified or changed.

"<u>Common Stock Equivalents</u>" means any securities of the Company that would entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant, or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.

"<u>Conversion</u>" shall have the meaning ascribed to such term in Section 5.

"<u>Conversion Date</u>" shall have the meaning set forth in Section 5(a).

"<u>Conversion Schedule</u>" means the Conversion Schedule in the form of <u>Schedule 1</u> attached hereto.

"<u>Conversion Shares</u>" means, collectively, the shares of Common Stock issuable upon conversion of this Note in accordance with the terms hereof.

"<u>Default Rate</u>" shall have the meaning ascribed thereto in the preamble of this Note.

"<u>DTC</u>" means the Depository Trust Company.

"<u>DTC/FAST Program</u>" means the DTC's Fast Automated Securities Transfer Program.

"<u>DWAC Eligible</u>" means that (a) the Common Stock is eligible at DTC for full services pursuant to DTC's Operational Arrangements, including, without limitation, transfer through DTC's Deposit and Withdrawal at Custodian ("<u>DWAC</u>") service; (b) the Company has been approved (without revocation) by the DTC's underwriting department; (c) the Transfer Agent is approved as an agent in the DTC/FAST Program; (d) the Conversion Shares are otherwise eligible for delivery via DWAC; and (e) the Transfer Agent does not have a policy prohibiting or limiting delivery of the Conversion Shares via DWAC.

"<u>Event of Default</u>" shall have the meaning set forth in Section 7(a).

"<u>Exchange Act</u>" means, the Securities Exchange Act of 1934, as amended.

"<u>Delaware Courts</u>" shall have the meaning set forth in Section 8(g).

"<u>Fundamental Transaction</u>" shall have the meaning set forth in Section 6(e).

"<u>Guaranteed Interest</u>" shall have the meaning ascribed thereto in the preamble of this Note.

"<u>Late Fees</u>" shall have the meaning set forth in Section 2(b).

"<u>Mandatory Default Amount</u>" means the payment of 120% of the outstanding Principal Amount of this Note and accrued and unpaid interest hereon (Guaranteed Interest and other interest payable on this Note), in addition to the payment of all other amounts, costs, expenses, and liquidated damages due in respect of this Note.

"<u>Maturity Date</u>" shall have the meaning ascribed thereto in the preamble of this Note.

"<u>Monthly Payment</u>" shall have the meaning ascribed thereto in the preamble of this Note.

"<u>Monthly Payment Date</u>" shall have the meaning ascribed thereto in the preamble of this Note.

"<u>Note Register</u>" shall have the meaning set forth in Section 2(a).

"<u>Notice of Conversion</u>" shall have the meaning set forth in Section 5(a).

"<u>Original Issue Date</u>" means the date of the first issuance of this Note, regardless of any transfers of this Note and regardless of the number of instruments that may be issued to evidence this Note.

"<u>Person</u>" means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof), or other entity of any kind.

"<u>Principal Amount</u>" shall have the meaning ascribed thereto in the preamble of this Note.

"<u>Required Minimum</u>" means, as of any date, the maximum aggregate number of shares of Common Stock then issued or potentially issuable in the future pursuant to this Note, including any Conversion Shares issuable upon conversion in full of this Note (including Conversion Shares issuable as payment of Guaranteed Interest or other interest payable on this Note), ignoring any conversion limits set forth therein, and assuming that the Calculated Conversion Price is at all times on and after the date of determination 100% of the Calculated Conversion Price calculated utilizing the Trading Day immediately prior to the date of determination.

"<u>ROFR Acceptance Notice</u>" shall have the meaning set forth in Section 3(c) or Section 8(f), as applicable.

"<u>SEC</u>" shall have the meaning set forth in Section 3(c).

"<u>Securities Act</u>" means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

"<u>Share Delivery Date</u>" shall have the meaning set forth in Section 5(c)(ii).

"<u>Successor Entity</u>" shall have the meaning set forth in Section 6(f).

"<u>Trading Market</u>" shall mean any of the following: New York Stock Exchange, NYSE American, the Nasdaq Global Select Market, the Nasdaq Global Market, the Nasdaq Capital Market, the OTCQX*<sup>®</sup>* Best Market, the OTCQB*<sup>®</sup>* Venture Market, or the OTC Pink*<sup>®</sup>* Open Market.

"<u>Trading Price</u>" shall mean the lowest trading price for the twenty (20) Trading Days preceding a Conversion Date.

"<u>Transfer Agent</u>" means EQ Shareowner Services (Equiniti) or any successor registered entity that performs substantially all of the functions of EQ Shareowner Services (Equiniti).

"<u>Variable Rate Transaction</u>" means, either or both of (a) an "Equity Line of Credit" or similar agreement or (b) a Variable Priced Equity Linked Instrument. For purposes hereof, (i) "Equity Line of Credit" means any transaction involving a written agreement between the Company and an investor or underwriter, whereby the Company has the right to "put" its securities to the investor or underwriter over an agreed period of time and at future determined price or price formula (other than customary "preemptive" or "participation" rights or "weighted average" or "full-ratchet" anti-dilution provisions or in connection with fixed-price rights offerings and similar transactions that are not Variable Priced Equity Linked Instruments) and (ii) "Variable Priced Equity Linked Instruments" means: (A) any debt or equity securities that are convertible into, exercisable or exchangeable for, or carry the right to receive additional shares of Common Stock either (1) at any conversion, exercise, or exchange rate or other price that is based upon and/or varies with the trading prices of or quotations for Common Stock at any time after the initial issuance of such debt or equity security or (2) with a conversion, exercise, or exchange price that is subject to being reset on more than one occasion at some future date at any time after the initial issuance of such debt or equity security due to a change in the market price of the Company's Common Stock since the date of initial issuance (other than customary "preemptive" or "participation" rights or "weighted average" or "full-ratchet" anti-dilution provisions or in connection with fixed-price rights offerings and similar transactions) and (B) any amortizing convertible security that amortizes prior to its maturity date, in which the Company is required or has the option to (or any investor in such transaction has the option to require the Company to) make such amortization payments in shares of Common Stock that are valued at a price that is based upon and/or varies with the trading prices of or quotations for Common Stock at any time after the initial issuance of such debt or equity security (whether or not such payments in shares of Common Stock are subject to certain equity conditions).

"<u>VWAP</u>" means, for or as of any date, the dollar volume-weighted average price for such security on the Trading Market (or, if the Trading Market is not the principal trading market for such security, then on the principal securities exchange or securities market on which such security is then traded) during the period beginning at 9:30:01 a.m., New York time, and ending at 4:00:00 p.m., New York time, as reported by Bloomberg through its "HP" function (set to weighted average) or, if the foregoing does not apply, the dollar volume-weighted average price of such security in the over-the-counter market on the OTC Markets Group Inc. marketplace for such security during the period beginning at 9:30:01 a.m., New York time, and ending at 4:00:00 p.m., New York time, as reported by Bloomberg, or, if no dollar volume-weighted average price is reported for such security by Bloomberg for such hours, the average of the highest closing bid price and the lowest closing ask price of any of the market makers for such security as reported by OTC Markets Group Inc. If the VWAP cannot be calculated for such security on such date on any of the foregoing bases, the VWAP of such security on such date shall be the fair market value as mutually determined by the Company and the Holder. All such determinations shall be appropriately adjusted for any stock dividend, stock split, stock combination, recapitalization, or other similar transaction during such period.

<u>Section 2</u>. <u>Interest</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Default Rate Interest Calculations</u>. Default Rate interest shall be calculated on the basis of a 360-day year, consisting of twelve (12) thirty (30)-calendar day periods, and shall accrue daily commencing on the Original Issue Date (without any offset for any pro rata amount of Guaranteed Interest for the relevant period) until payment in full of the outstanding Principal Amount, together with all accrued and unpaid Guaranteed Interest, Default Rate interest, liquidated damages, and other amounts that may become due hereunder, has been made. Default Rate interest hereunder will be paid to the Person in whose name this Note is registered on the records of the Company regarding registration and transfers of this Note (the "<u>Note Register</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Late Fees</u>. Any Monthly Payment not made on or before its respective Monthly Payment Date shall entail a late fee at the Default Rate (the "<u>Late Fee</u>"), which shall accrue daily from the date such interest is due hereunder through and including the date of actual payment in full.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) <u>Prepayment</u>. Any or all of the Principal Amount and Guaranteed Interest may be pre-paid at any time and from time to time, in each case without penalty or premium. Notwithstanding the above, in any such prepayment, payments will be applied first to any unpaid collection costs; then to any unpaid fees; then to any unpaid Default Rate interest; and any remaining amount shall be applied first to any unpaid Guaranteed Interest and then to any unpaid Principal Amount.

<u>Section 3</u>. <u>Right of First Refusal for Equity Line of Credit Transactions.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Grant of Equity Line of Credit Right of First Refusal</u>. The Company hereby unconditionally and irrevocably grants to the Holder a Right of First Refusal to be the exclusive Person in respect of any Equity Line of Credit transaction or financing into which the Company shall enter during the 24-month period that commences on the Original Issue Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Notice</u>. If, during the 24-month period that commenced on the Original Issue Date, the Company proposes to enter into any Equity Line of Credit transaction or financing, then, not less than ten (10) Trading Days in advance of such proposed entry, the Company shall provide notice thereof to the Holder (an "<u>Equity Line ROFR Notice</u>"). Such Equity Line ROFR Notice shall contain the material terms and conditions (including price and form of consideration) of the proposed Equity Line of Credit transaction and the intended initial date thereof, all of which terms and conditions shall be usual and customary for transactions of such nature and magnitude of the proposed Equity Line transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) <u>Response by the Holder to the Equity Line ROFR Notice</u>. Within twenty (20) Trading Days of the Holder's receipt of the Equity Line ROFR Notice, the Holder shall notify the Company (a "<u>ROFR Acceptance Notice</u>") if the Holder accepts all usual and customary terms set forth in the Equity Line ROFR Notice and, if so, within twenty (20) Trading Days, will prepare all relevant documents in respect thereof for execution and delivery by the Company; <u>provided</u>, <u>however</u>, that the Company's outside counsel shall prepare the relevant Registration Statement to be filed with the Securities and Exchange Commission (the "<u>SEC</u>"), which shall be filed not later than forty-five (45) days after the Company has received such Holder-prepared documents. Thereafter, the Company shall use commercially reasonable efforts to prosecute such registration statement to a declaration of effectiveness by the SEC. If the Holder shall not tender a ROFR Acceptance Notice to the Company within such twenty (20)-Trading Day period, then the Company may accept the terms contained therein and close such Equity Line transaction; <u>provided</u>, <u>however</u>, that, if such Equity Line transaction shall not close within forty-five (45) Trading Days of the expiration of the twenty (20)-Trading Day response period, then the Company shall not close such Equity Line transaction without providing a new Equity Line ROFR Notice to the Holder, which will then re-start the ROFR Acceptance Notice period.

<u>Section 4.</u> <u>Registration of Transfers and Exchanges</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Note Transfers</u>. This Note may be transferred or exchanged only in compliance with applicable federal and state securities laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Reliance on Note Register</u>. Prior to due presentment for transfer to the Company of this Note, the Company and any agent of the Company may treat the Person in whose name this Note is duly registered on this Note Register as the owner hereof for the purpose of receiving payment as herein provided and for all other purposes, whether or not this Note is overdue, and neither the Company nor any such agent shall be affected by notice to the contrary.

<u>Section 5.</u> <u>Conversion Solely Following an Event of Default</u>. **AS PROVIDED IN THIS NOTE, THE PRINCIPAL AMOUNT AND THE GUARANTEED INTEREST UNDER THIS NOTE ARE ONLY CONVERTIBLE FOLLOWING AN EVENT OF DEFAULT, ALL AS SET FORTH IN MORE DETAIL HEREINBELOW.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Event of Default Conversion</u>. At any time following an Event of Default under Section 7(a)(i), this Note shall become convertible, in whole or in part, into shares of Common Stock at the option of the Holder, at any time and from time to time thereafter (subject to the conversion limitations set forth in Section 5(d) hereof). The Holder shall effect conversions by delivering to the Company a Notice of Conversion, the form of which is attached hereto as <u>Annex A</u> (each, a "<u>Notice of Conversion</u>"), specifying therein the Principal Amount and/or the Guaranteed Interest amount of this Note to be converted and the date on which such conversion shall be effected (such date, the "<u>Conversion Date</u>"). If no Conversion Date is specified in a Notice of Conversion, the Conversion Date shall be the date that such Notice of Conversion is deemed delivered hereunder. No ink-original Notice of Conversion shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Conversion form be required. To effect conversions hereunder, the Holder shall not be required to physically surrender this Note to the Company unless the entire Principal Amount and Guaranteed Interest amount of this Note, plus all accrued and unpaid Default Rate interest thereon, has been so converted. Conversions hereunder shall have the effect of lowering the outstanding principal amount of this Note in an amount equal to the applicable conversion. The Holder and the Company shall maintain a Conversion Schedule showing the Principal Amount(s) converted and the date of such conversion(s). The Company may deliver an objection to any Notice of Conversion within one (1) Business Day of delivery of such Notice of Conversion. In the event of any dispute or discrepancy, the records of the Holder shall be controlling and determinative in the absence of manifest error. **The Holder, and any assignee by acceptance of this Note, acknowledge and agree that, by reason of the provisions of this paragraph, following conversion of a portion of this Note, the unpaid and unconverted Principal Amount of this Note may be less than the amount stated on the face hereof.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Calculated Conversion Price; Alternative Conversion Price</u>. The conversion price of this Note is ninety percent (90%) per share of the lowest per-share trading price during the twenty (20)-Trading Day period before the conversion (each, a "<u>Calculated Conversion Price</u>"). In the event that, within thirty (30) calendar days either before or after any conversion, the conversion price of which is based upon a Calculated Conversion Price, the Company consummates (in whole or in part) any financing (whether such financing is equity, equity-equivalent, or debt or any combination thereof and whether any portion of such financing is a derivative security) or for any other reason issues any shares of its Common Stock or any Common Stock Equivalents at a price less than the such most recent Calculated Conversion Price (the "<u>Alternative Conversion Price</u>"), regardless of when that note or instrument was originated, then, in respect of such conversion and at the option of the Holder, (i) if the conversion shall not then have yet occurred, then the Alternative Conversion Price shall be substituted for the Calculated Conversion Price and (ii) if the conversion shall already have occurred, then, within two Trading Days following the written request from the Holder therefor, the Company shall issue to the Holder that number of shares of Common Stock equivalent to the difference between the number of shares of Common Stock that had been issued using the Calculated Conversion Price and the number of shares of Common Stock that would have been issued using the Alternative Conversion Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) <u>Mechanics of Conversion</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>Conversion Shares Issuable Upon Conversion of Principal Amount</u>. The number of Conversion Shares issuable upon a conversion hereunder shall be determined by the quotient obtained by dividing (x) the sum of the Principal Amount of this Note and all then unpaid interest of any nature to be concurrently converted by (y) the Calculated Conversion Price or the Alternative Conversion Price, as relevant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. <u>Delivery of Certificate Upon Conversion</u>. Not later than two (2) Trading Days after each Conversion Date (the "<u>Share Delivery Date</u>"), the Company shall deliver, or cause to be delivered, to the Holder (A) a certificate or certificates representing the Conversion Shares, which, on or after the date on which such Conversion Shares are eligible to be sold under Rule 144 without the need for current public information and the Company has received an opinion of counsel to such effect reasonably acceptable to the Company (which opinion the Company will be responsible for obtaining at the cost of the Holder), shall be free of restrictive legends and trading restrictions, representing the number of Conversion Shares being acquired upon the conversion of this Note. All certificate or certificates required to be delivered by the Company under this Section 5(c) shall be delivered electronically through the DTC or another established clearing corporation performing similar functions. If the Conversion Date is prior to the date on which such Conversion Shares are eligible to be sold under Rule 144 without the need for current public information the Conversion Shares shall bear a restrictive legend in the following form, as appropriate:

**"NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES."**

Notwithstanding the foregoing, commencing on such date that the Conversion Shares are eligible for sale under Rule 144 subject to current public information requirements, the Company, upon request and at the expense of the Company, shall obtain a legal opinion to allow for such sales under Rule 144.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. <u>Failure to Deliver Certificates</u>. If, in the case of any Notice of Conversion, such certificate or certificates are not delivered to or as directed by the applicable Holder by the Share Delivery Date, the Holder shall be entitled to elect by written notice to the Company at any time on or before its receipt of such certificate or certificates, to rescind such Conversion, in which event the Company shall promptly return to the Holder any original Note delivered to the Company and the Holder shall promptly return to the Company the Common Stock certificates issued to such Holder pursuant to the rescinded Conversion Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. <u>Obligation Absolute; Partial Liquidated Damages</u>. The Company's obligations to issue and deliver the Conversion Shares upon conversion of this Note in accordance with the terms hereof are absolute and unconditional, irrespective of any action or inaction by the Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against any Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder or any other Person of any obligation to the Company or any violation or alleged violation of law by the Holder or any other Person, and irrespective of any other circumstance which might otherwise limit such obligation of the Company to the Holder in connection with the issuance of such Conversion Shares; <u>provided</u>, <u>however</u>, that such delivery shall not operate as a waiver by the Company of any such action the Company may have against the Holder. In the event the Holder of this Note shall elect to convert any or all of the outstanding principal or interest amount hereof, the Company may not refuse conversion based on any claim that the Holder or anyone associated or affiliated with the Holder has been engaged in any violation of law, agreement or for any other reason, unless an injunction from a court, on notice to Holder, restraining and or enjoining conversion of all or part of this Note shall have been sought. If the injunction is not granted, the Company shall promptly comply with all conversion obligations herein. If the injunction is obtained, the Company must post a surety bond for the benefit of the Holder in the amount of 150% of the outstanding Principal Amount of this Note, which is subject to the injunction, which bond shall remain in effect until the completion of arbitration/litigation of the underlying dispute and the proceeds of which shall be payable to the Holder to the extent it obtains judgment. In the absence of seeking such injunction, the Company shall issue Conversion Shares or, if applicable, cash, upon a properly noticed conversion. If the Company fails for any reason to deliver to the Holder such certificate or certificates pursuant to Section 5(c)(ii) by the Share Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and not as a penalty, $1,000 per Trading Day for each Trading Day after such Share Delivery Date until such certificates are delivered or Holder rescinds such conversion. Nothing herein shall limit a Holder's right to pursue actual damages or declare an Event of Default pursuant to Section 7 hereof for the Company's failure to deliver Conversion Shares within the period specified herein and the Holder shall have the right to pursue all remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief. The exercise of any such rights shall not prohibit the Holder from seeking to enforce damages pursuant to any other Section hereof or under applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. <u>Compensation for Buy-In on Failure to Timely Deliver Certificates Upon Conversion</u>. In addition to any other rights available to the Holder, if the Company fails for any reason to deliver to the Holder such certificate or certificates by the Share Delivery Date pursuant to Section 5(c)(ii), and if after such Share Delivery Date the Holder is required by its brokerage firm to purchase (in an open market transaction or otherwise), or the Holder's brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Conversion Shares which the Holder was entitled to receive upon the conversion relating to such Share Delivery Date (a "<u>Buy-In</u>"), then the Company shall (A) pay in cash to the Holder (in addition to any other remedies available to or elected by the Holder) the amount, if any, by which (x) the Holder's total purchase price (including any brokerage commissions) for the Common Stock so purchased exceeds (y) the product of (1) the aggregate number of shares of Common Stock that the Holder was entitled to receive from the conversion at issue multiplied by (2) the actual sale price at which the sell order giving rise to such purchase obligation was executed (including any brokerage commissions) and (B) at the option of the Holder, either reissue (if surrendered) this Note in a principal amount equal to the principal amount of the attempted conversion (in which case such conversion shall be deemed rescinded) or deliver to the Holder the number of shares of Common Stock that would have been issued if the Company had timely complied with its delivery requirements under Section 5(c)(ii). For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted conversion of this Note with respect to which the actual sale price of the Conversion Shares (including any brokerage commissions) giving rise to such purchase obligation was a total of $10,000 under clause (A) of the immediately preceding sentence, the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss. Nothing herein shall limit a Holder's right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company's failure to timely deliver certificates representing shares of Common Stock upon conversion of this Note as required pursuant to the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. <u>Reservation of Shares Issuable Upon Conversion</u>. The Company covenants that it will at all times reserve and keep available out of its authorized and unissued shares of Common Stock a number of shares of Common Stock at least equal to 400% (4X) of the Required Minimum (the "<u>Reserve Amount</u>") for the sole purpose of issuance upon conversion of this Note and payment of interest on this Note, each as herein provided, free from preemptive rights or any other actual contingent purchase rights of Persons other than the Holder (and the other holders of this Note). The Company covenants that all shares of Common Stock that shall be so issuable shall, upon issue, be duly authorized, validly issued, fully paid and nonassessable. The Holder may request to increase the reserve shares without any further instruction from the Company, and the Transfer Agent will be obligated to increase the reserve shares without any further instruction from the Company. Additionally, the Company will authorize and instruct the Transfer Agent to comply with any requests for information by the Noteholder. This will include but is not limited to the number of shares outstanding, and any conversions or share issuances done in the thirty (30)-day window both before and after any conversion by the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. <u>Fractional Shares</u>. No fractional shares or scrip representing fractional shares shall be issued upon the conversion of this Note. As to any fraction of a share of Common Stock that the Holder would otherwise be entitled to purchase upon such conversion, the Company shall at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Calculated Conversion Price or the Alternative Conversion Price, as relevant, or round up to the next whole share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;viii. <u>Transfer Taxes and Expenses</u>. The issuance of certificates for shares of the Common Stock on conversion of this Note shall be made without charge to the Holder hereof for any documentary stamp or similar taxes that may be payable in respect of the issue or delivery of such certificates, provided that, the Company shall not be required to pay any tax that may be payable in respect of any transfer involved in the issuance and delivery of any such certificate upon conversion in a name other than that of the Holder of this Note so converted and the Company shall not be required to issue or deliver such certificates unless or until the Person or Persons requesting the issuance thereof shall have paid to the Company the amount of such tax or shall have established to the satisfaction of the Company that such tax has been paid. The Company shall pay all Transfer Agent fees required for same-day processing of any Notice of Conversion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) <u>Holder's Conversion Limitations</u>. The Company shall not effect any conversion of principal and/or interest of this Note, and a Holder shall not have the right to convert any principal and/or interest of this Note, to the extent that after giving effect to the conversion set forth on the applicable Notice of Conversion, the Holder (together with the Holder's Affiliates, and any Persons acting as a group together with the Holder or any of the Holder's Affiliates) would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates shall include the number of shares of Common Stock issuable upon conversion of this Note with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which are issuable upon (i) conversion of the remaining, unconverted Principal Amount of this Note beneficially owned by the Holder or any of its Affiliates and (ii) exercise or conversion of the unexercised or unconverted portion of any other securities of the Company subject to a limitation on conversion or exercise analogous to the limitation contained herein (including, without limitation, any other notes) beneficially owned by the Holder or any of its Affiliates. Except as set forth in the preceding sentence, for purposes of this Section 5(d), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. To the extent that the limitation contained in this Section 5(d) applies, the determination of whether this Note is convertible (in relation to other securities owned by the Holder together with any Affiliates) and of which Principal Amount of this Note is convertible shall be in the sole discretion of the Holder, and the submission of a Notice of Conversion shall be deemed to be the Holder's determination of whether this Note may be converted (in relation to other securities owned by the Holder together with any Affiliates) and which Principal Amount of this Note is convertible, in each case subject to the Beneficial Ownership Limitation. To ensure compliance with this restriction, the Holder will be deemed to represent to the Company each time it delivers a Notice of Conversion that such Notice of Conversion has not violated the restrictions set forth in this paragraph and the Company shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 5(d), in determining the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as stated in the most recent of the following: (i) the Company's most recent periodic or annual report filed with the Commission, as the case may be, (ii) a more recent public announcement by the Company, or (iii) a more recent written notice by the Company or the Company's Transfer Agent setting forth the number of shares of Common Stock outstanding. Upon the written or oral request of a Holder, the Company shall within two Trading Days confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Note, by the Holder or its Affiliates since the date as of which such number of outstanding shares of Common Stock was reported. The "<u>Beneficial Ownership Limitation</u>" shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon conversion of this Note held by the Holder. The Holder, upon not less than sixty-one (61) days' prior notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 5(d), provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon conversion of this Note held by the Holder and the Beneficial Ownership Limitation provisions of this Section 5(d) shall continue to apply. Any such increase or decrease will not be effective until the sixty-first (61<sup>st</sup>) calendar day after such notice is delivered to the Company. The Beneficial Ownership Limitation provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 5(d) to correct this paragraph (or any portion hereof) that may be defective or inconsistent with the intended Beneficial Ownership Limitation contained herein or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Note.

<u>Section 6</u>. <u>Certain Adjustments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Stock Dividends and Stock Splits</u>. If the Company, at any time while this Note is outstanding: (i) pays a stock dividend or otherwise makes a distribution or distributions payable in shares of Common Stock on shares of Common Stock or any Common Stock Equivalents (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon conversion of, or payment of interest on, this Note), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of a reverse stock split) outstanding shares of Common Stock into a smaller number of shares or (iv) issues, in the event of a reclassification of shares of the Common Stock, any shares of capital stock of the Company, then the Calculated Conversion Price or the Alternative Conversion Price, as relevant, shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding any treasury shares of the Company) outstanding immediately before such event, and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to this Section shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination, or re-classification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Dilution</u>. The Company specifically acknowledges that its obligation to issue shares of Common Stock is binding upon the Company and enforceable regardless of the dilution such issuance may have on the ownership interests of other stockholders of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) <u>[Reserved.]</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) <u>Pro Rata Distributions</u>. During such time as this Note is outstanding, if the Company shall declare or make any dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a "<u>Distribution</u>"), at any time after the issuance of this Note, then, in each such case and following an Event of Default, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Note (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution (<u>provided</u>, <u>however</u>, to the extent that the Holder's right to participate in any such Distribution would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Distribution to such extent (or in the beneficial ownership of any shares of Common Stock as a result of such Distribution to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) Fundamental Transaction. If, at any time while this Note is outstanding, (i) the Company, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance, or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender, or exchange their shares for other securities, cash or property and has been accepted by the holders of fifty percent (50%) or more of the outstanding Common Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property, (v) the Company, directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person whereby such other Person acquires more than fifty percent (50%) of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination) (each, a "<u>Fundamental Transaction</u>"), then, upon any subsequent conversion of this Note, the Holder shall have the right to receive following an Event of Default, for each Conversion Share that would have been issuable upon such conversion immediately prior to the occurrence of such Fundamental Transaction (without regard to any limitation in Section 5(d) on the conversion of this Note), the number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the "<u>Alternate Consideration</u>") receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Note is convertible immediately prior to such Fundamental Transaction (without regard to any limitation in Section 5(d) on the conversion of this Note). For purposes of any such conversion, the determination of the Calculated Conversion Price or the Alternative Conversion Price, as relevant, shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one (1) share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Calculated Conversion Price or the Alternative Conversion Price, as relevant, among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash, or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any conversion of this Note following such Fundamental Transaction. The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the "<u>Successor Entity</u>") to assume in writing all of the obligations of the Company under this Note and any document ancillary hereto, in accordance with the provisions of this Section 6(e) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the holder of this Note, deliver to the Holder in exchange for this Note a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Note that is convertible for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon conversion of this Note (without regard to any limitations on the conversion of this Note) prior to such Fundamental Transaction, and with a conversion price that applies the conversion price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock and such conversion price being for the purpose of protecting the economic value of this Note immediately prior to the consummation of such Fundamental Transaction), and that is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that, from and after the date of such Fundamental Transaction, the provisions of this Note referring to the "Company" shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Note with the same effect as if such Successor Entity had been named as the Company herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) <u>Calculations</u>. All calculations under this Section 6 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be. For purposes of this Section 6, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding any treasury shares of the Company) issued and outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g) <u>Notice to the Holder</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>Adjustment to Calculated Conversion Price</u>. Whenever the Calculated Conversion Price is adjusted pursuant to any provision of this Section 6, the Company shall promptly deliver to the Holder a notice setting forth the Calculated Conversion Price after such adjustment and setting forth a brief statement of the facts requiring such adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. <u>Notice to Allow Conversion by the Holder</u>. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the Company shall authorize the granting to all holders of the Common Stock of rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be filed at each office or agency maintained for the purpose of conversion of this Note, and shall cause to be delivered to the Holder at its last address as it shall appear upon this Note Register, at least twenty (20) calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights, or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange, provided that the failure to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the corporate action required to be specified in such notice. To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding the Company, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K or, if the Company is not then subject to the periodic reporting requirements set forth under the Exchange Act, shall file such items as are then required by the OTC Markets Group Inc. under its Alternative Reporting Standards. The Holder shall remain entitled to convert this Note during the 20-day period commencing on the date of such notice through the effective date of the event triggering such notice except as may otherwise be expressly set forth herein.

<u>Section 7</u>. <u>Events of Default</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) "<u>Event of Default</u>" means, wherever used herein, the occurrence and uncured continuance of any of the following events (whatever the reason for such event and whether such event shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any court, or any order, rule, or regulation of any administrative or governmental body):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. any default in the payment of any Principal Amount, Guaranteed Interest, or any other interest due hereunder, when due, which failure is not cured within five (5) business days after such failure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. the Company shall fail to observe or perform any other covenant, provision, or agreement contained in this Note (and other than a breach by the Company of its obligations to deliver shares of Common Stock to the Holder upon conversion, which breach is addressed in clause (x) below) and is not cured, if possible to cure, within the earlier to occur of (A) three (3) Trading Days after notice of such failure sent by the Holder or by any other Holder to the Company and (B) three (3) Trading Days after the Company has become or should have become aware of such failure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. except as to any condition present as of the Original Issue Date, a default or event of default of any other material agreement, lease, document, or instrument to which the Company is obligated (and not covered by clause (vi) below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. any representation or warranty made in this Note, any written statement pursuant hereto or any other report or financial statement or certificate made or delivered to the Holder or any other Holder shall be untrue or incorrect in any material respect as of the date when made or deemed made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. the Company (as such term is defined in Rule 1-02(w) of Regulation S-X) shall be subject to a Bankruptcy Event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. the Company shall default on any of its obligations under any mortgage, credit agreement or other facility, indenture agreement, factoring agreement, or other instrument under which there may be issued, or by which there may be secured or evidenced, any indebtedness for borrowed money or money due under any long term leasing or factoring arrangement that (a) involves an obligation greater than $100,000 whether such indebtedness now exists or shall hereafter be created and (b) results in such indebtedness becoming or being declared due and payable prior to the date on which it would otherwise become due and payable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. the Common Stock shall no longer be eligible for listing or quotation for trading on a Trading Market and shall not be eligible to resume listing or quotation for trading thereon within three (3) Trading Days of the transfer of shares of Common Stock through the DWAC System is no longer available or "chilled";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;viii. the Company shall be a party to any Change of Control Transaction or Fundamental Transaction (A) without first giving the Holder ten (10) days' prior written notice of the closing of such Change of Control Transaction or Fundamental Transaction and (B) prior to or simultaneous with the closing of such Change of Control Transaction or Fundamental Transaction, the Holder is not repaid in accordance with Section 2(d) herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ix. from and after the six-month anniversary of the Original Issuance Date, the Company does not meet the current public information requirements under Rule 144;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;x. the Company shall fail for any reason to deliver certificates to a Holder prior to the third (3<sup>rd</sup>) Trading Day after a Conversion Date pursuant to Section 5(c) or the Company shall provide at any time notice to the Holder, including by way of public announcement, of the Company's intention to not honor requests for conversions of this Note in accordance with the terms hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xi. from and after the six-month anniversary of the Original Issuance Date, the Company fails to file with the Commission any required reports under Section 13 or 15(d) of the Exchange Act such that it is not in compliance with Rule 144(c)(1) (or Rule 144(i)(2), if applicable);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xii. the Company shall: (i) apply for or consent to the appointment of a receiver, trustee, custodian, or liquidator of it or any of its properties; (ii) admit in writing its inability to pay its debts as they mature; (iii) make a general assignment for the benefit of creditors; (iv) be adjudicated a bankrupt or insolvent or be the subject of an order for relief under Title 11 of the United States Code or any bankruptcy, reorganization, insolvency, readjustment of debt, dissolution or liquidation law or statute of any other jurisdiction or foreign country; or (v) file a voluntary petition in bankruptcy, or a petition or an answer seeking reorganization or an arrangement with creditors or to take advantage or any bankruptcy, reorganization, insolvency, readjustment of debt, dissolution or liquidation law or statute, or an answer admitting the material allegations of a petition filed against it in any proceeding under any such law, or (vi) take or permit to be taken any action in furtherance of or for the purpose of effecting any of the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xiii. if any order, judgment, or decree shall be entered, without the application, approval, or consent of the Company , by any court of competent jurisdiction, approving a petition seeking liquidation or reorganization of the Company, or appointing a receiver, trustee, custodian, or liquidator of the Company , or of all or any substantial part of its assets, and such order, judgment or decree shall continue unstayed and in effect for any period of sixty (60) calendar days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xiv. the occurrence of any levy upon or seizure or attachment of, or any uninsured loss of or damage to, any property of the Company having an aggregate fair value or repair cost (as the case may be) in excess of $100,000 individually or in the aggregate, and any such levy, seizure or attachment shall not be set aside, bonded, or discharged within thirty (30) days after the date thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xv. the Company shall fail to maintain the Reserve Amount, and such failure is not cured within five business days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xvi. any monetary judgment, writ or similar final process shall be entered or filed against the Company, or any of their respective property or other assets for more than $100,000, and such judgment, writ or similar final process shall remain unvacated, unbonded, or unstayed for a period of forty-five (45) calendar days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Remedies upon Event of Default</u>. Subject to the Beneficial Ownership Limitation as set forth in Section 5(d), if any Event of Default occurs, then the outstanding Principal Amount of this Note, the outstanding Guaranteed Interest amount of this Note, plus accrued but unpaid Default Rate interest, liquidated damages, and other amounts owing in respect thereof through the date of acceleration, shall become, at the Holder's election, immediately due and payable at the Holder's option, in cash or in shares of Common Stock, at the Mandatory Default Amount. After the occurrence of any Event of Default that results in the eventual acceleration of this Note, in addition to the Guaranteed Interest rate on this Note, shall accrue at the lesser of the Default Rate or the maximum rate permitted under applicable law. Upon the payment in full of the Mandatory Default Amount in cash or in shares of Common Stock, the Holder shall promptly surrender this Note to or as directed by the Company. In connection with such acceleration described herein, the Holder need not provide, and the Company hereby waives, any presentment, demand, protest, or other notice of any kind (other than the Holder's election to declare such acceleration), and the Holder may immediately and without expiration of any grace period enforce any and all of its rights and remedies hereunder and all other remedies available to it under applicable law. Such acceleration may be rescinded and annulled by Holder at any time prior to payment hereunder and the Holder shall have all rights as a holder of this Note until such time, if any, as the Holder receives full payment pursuant to this Section 7(b). No such rescission or annulment shall affect any subsequent Event of Default or impair any right consequent thereon.

<u>Section 8</u>. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Issuance of Shares of Common Stock</u>. As an additional inducement to the Holder purchasing this Note, and in connection with the Company selling and issuing this Note, the Company shall, as of the Original Issue Date and for no additional consideration, issue to the Holder an aggregate of fifteen million five hundred thousand (15,500,000) shares of Common Stock, which shares, upon their issuance shall be duly authorized, fully paid, and non-assessable.<sup>[1]</sup> Instead of a delivery of the certificate required to be delivered under this Section 8(a), the Company shall cause its Transfer Agent to record such shares in electronic book entry format on its books and records and provide a statement to the Holder documenting such notation. Notwithstanding the above, if a certificate is delivered in respect thereof, until the shares of Common Stock represented thereby are eligible to be sold under Rule 144 without the need for current public information such certificate shall bear a restrictive legend in the following form:

**THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES HAVE BEEN ACQUIRED SOLELY FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TOWARD RESALE AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED, OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS.** 

Notwithstanding the foregoing, commencing on such date that the Conversion Shares are eligible for sale under Rule 144 subject to current public information requirements, the Company, upon request and at the expense of the Company, shall obtain a legal opinion to allow for such sales under Rule 144.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Irrevocable Transfer Agent Letter</u>. On or before the Original Issue Date, the Company shall execute and deliver to the Company's Transfer Agent and shall have the Company's Transfer Agent counter-execute and deliver a standard transfer agent letter, reserving an amount of shares of Common Stock not less than four (4) times (4X) the number of Conversion Shares required for full conversion hereunder (which number shall be calculated as if there were a default by the Company hereunder), which letter shall also provide that the Holder may, from time to time, without any further instruction from the Company, cause such number to be increased, as calculated and, therefore, required. Further, the Company shall instruct its Transfer Agent to advise the Holder of any and all conversions or exercises of debt or equity securities within thirty (30) Trading Days of any "default conversion" by the Holder, and to advise the Holder of any information that he feels relevant to this transaction such as the current issued and outstanding number of shares etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) <u>Notices</u>. Any and all notices or other communications or deliveries to be provided by the Holder hereunder, including, without limitation, any Notice of Conversion, shall be in writing and delivered personally, by e-mail or facsimile, or sent by a nationally recognized overnight courier service, addressed to the Company at 2711 N. Sepulveda Blvd., #1051, Manhattan Beach, California 90266-2725 or such other e-mail address, facsimile number, or address as the Company may specify for such purposes by notice to the Holder delivered in accordance with this Section 8(c). Any and all notices or other communications or deliveries to be provided by the Company hereunder shall be in writing and delivered personally, by e-mail or facsimile, or sent by a nationally recognized overnight courier service addressed to each Holder at the e-mail address, facsimile number, or address of the Holder appearing on the books of the Company, or if no such e-mail address, facsimile number, or address appears on the books of the Company, at the principal place of business of such Holder. Any notice or other communication or deliveries hereunder shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature page attached hereto prior to 12:00 noon (New York City time) on any date or is delivered by e-mail to the Holder's e-mail address, (ii) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto on a day that is not a Trading Day or later than 12:00 noon (New York City time) on any Trading Day, (iii) the second Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (iv) upon actual receipt by the party to whom such notice is required to be given.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) <u>Absolute Obligation</u>. Except as expressly provided herein, no provision of this Note shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of, liquidated damages and accrued interest, as applicable, on this Note at the time, place, and rate, and in the coin or currency, herein prescribed. This Note is a direct debt obligation of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) <u>Lost or Mutilated Note</u>. If this Note shall be mutilated, lost, stolen, or destroyed, the Company shall execute and deliver, in exchange and substitution for and upon cancellation of a mutilated Note, or in lieu of or in substitution for a lost, stolen or destroyed Note, a new Note for the Principal Amount of this Note so mutilated, lost, stolen, or destroyed, but only upon receipt of evidence of such loss, theft or destruction of such Note, and of the ownership hereof, reasonably satisfactory to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) <u>No Registration</u>. As of the Original Issue Date, neither this Note nor the Conversion Shares were registered pursuant to the Securities Act or the securities laws of any state and thus shall constitute "restricted securities" as that term is defined in Rule 144 promulgated under the Securities Act. Neither this Note nor the Conversion Shares may be offered, sold, assigned, pledged, transferred, or otherwise disposed of in the absence of an effective registration statement under the Securities Act and applicable state securities laws or pursuant to an available exemption from registration under the Securities Act or such laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g) <u>Governing Law; Mandatory Jurisdiction; Jury Trial Waiver</u>. All questions concerning the construction, validity, enforcement, and interpretation of this Note shall be governed by and construed and enforced in accordance with the internal laws of the State of Delaware, without regard to the principles of conflict of laws thereof. Each party agrees that all legal proceedings concerning the interpretation, enforcement, and defense of the transactions contemplated by this Agreement (whether brought against a party hereto or its respective Affiliates, directors, officers, stockholders, employees, or agents) shall be commenced in the state and federal courts sitting in the City of Wilmington (the "<u>Delaware Courts</u>"). Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the Delaware Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of this Agreement), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such Delaware Courts, or such Delaware Courts are improper or inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it hereunder and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by applicable law. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby. If any party shall commence an action or proceeding to enforce any provisions of this Agreement, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorneys' fees and other costs and expenses incurred in the investigation, preparation, and prosecution of such action or proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h) <u>Waiver</u>. Any waiver by the Company or the Holder of a breach of any provision of this Note shall not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Note. The failure of the Company or the Holder to insist upon strict adherence to any term of this Note on one or more occasions shall not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Note on any other occasion. Any waiver by the Company or the Holder must be in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) <u>Severability</u>. If any provision of this Note is invalid, illegal, or unenforceable, the balance of this Note shall remain in effect, and if any provision is inapplicable to any Person or circumstance, it shall nevertheless remain applicable to all other Persons and circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j) <u>Usury</u>. To the extent it may lawfully do so, the Company hereby agrees not to insist upon or plead or in any manner whatsoever claim, and will resist any and all efforts to be compelled to take the benefit or advantage of, usury laws wherever enacted, now or at any time hereafter in force, in connection with any action or proceeding that may be brought by the Holder in order to enforce any right or remedy under this Note and the Company (to the extent it may lawfully do so) hereby expressly waives all benefits or advantage of any such law, and covenants that it will not, by resort to any such law, hinder, delay or impede the execution of any power herein granted to the Holder, but will suffer and permit the execution of every such as though no such law has been enacted. Notwithstanding any provision to the contrary contained in this Note, it is expressly agreed and provided that the total liability of the Company under this Note for payments that, under the applicable law are in the nature of interest shall not exceed the maximum lawful rate authorized under applicable law (the "<u>Maximum Rate</u>"), and, without limiting the foregoing, in no event shall any rate of interest or default interest, or both of them, when aggregated with any other sums that, under the applicable law in the nature of interest that the Company may be obligated to pay under this Note, exceed such Maximum Rate. It is agreed that if the maximum contract rate of interest allowed by applicable law and applicable to this Note is increased or decreased by statute or any official governmental action subsequent to the Issue Date, the new maximum contract rate of interest allowed by law will be the Maximum Rate applicable to this Note from the effective date thereof forward, unless such application is precluded by applicable law. If under any circumstances whatsoever, interest in excess of the Maximum Rate is paid by the Company to the Holder with respect to indebtedness evidenced by this the Note, such excess shall be applied by the Holder to the unpaid principal balance of any such indebtedness or be refunded to the Company, the manner of handling such excess to be at the Holder's election.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k) <u>Remedies, Characterizations, Other Obligations, Breaches, and Injunctive Relief</u>. The remedies provided in this Note shall be cumulative and in addition to all other remedies available under this Note at law or in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the Holder's right to pursue actual and consequential damages for any failure by the Company to comply with the terms of this Note. The Company covenants to the Holder that there shall be no characterization concerning this instrument other than as expressly provided herein. Amounts set forth or provided for herein with respect to payments, conversion, and the like (and the computation thereof) shall be the amounts to be received by the Holder and shall not, except as expressly provided herein, be subject to any other obligation of the Company (or the performance thereof). The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, the Holder shall be entitled, in addition to all other available remedies, to an injunction restraining any such breach or any such threatened breach, without the necessity of showing economic loss and without any bond or other security being required. The Company shall provide all information and documentation to the Holder that is requested by the Holder to enable the Holder to confirm the Company's compliance with the terms and conditions of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l) <u>Next Business Day</u>. Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;m) <u>Headings</u>. The headings contained herein are for convenience only, do not constitute a part of this Note and shall not be deemed to limit or affect any of the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;n) <u>Use of Proceeds</u>. The principal amount of this Note shall be used by the Company only for capital expenditures, professional and administrative fees and expenses, and general corporate purposes. Notwithstanding and in furtherance of the above, none of the principal amount of this Note shall be used for any financing or related activities.

(*Signature Page follows*)

IN WITNESS WHEREOF, the Company has caused this Note to be duly executed by a duly authorized officer as of the date first above indicated.

---

| |
|:---|
| &nbsp;&nbsp;**CLEAN VISION CORPORATION**<br>|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br> By:__________________________________________<br> Dan Bates, President<br> Facsimile No. and e-mail address for delivery of Notices:<br> __________________________________________________________________________________________________________________________________________ |

---

**ANNEX A**

**NOTICE OF CONVERSION**

The undersigned hereby elects to convert principal under the 5% Promissory Note, with an issue date of December 9, 2022, of Clean Vision Corporation (the "<u>Company</u>") into shares of common stock, par value $0.001 per share (the "<u>Common Stock</u>"), of the Company according to the conditions hereof, as of the date written below. If shares of Common Stock are to be issued in the name of a person other than the undersigned, the undersigned will pay all transfer taxes payable with respect thereto and is delivering herewith such certificates and opinions as reasonably requested by the Companies in accordance therewith. No fee will be charged to the holder for any conversion, except for such transfer taxes, if any.

By the delivery of this Notice of Conversion the undersigned represents and warrants to the Companies that its ownership of the Common Stock does not exceed the amounts specified under Section 5 of this Note, as determined in accordance with Section 13(d) of the Exchange Act.

The undersigned agrees to comply with the prospectus delivery requirements under the applicable securities laws in connection with any transfer of the aforesaid shares of Common Stock.

Conversion calculations:

Date to Effect Conversion:

Principal Amount of Note to be Converted:

Payment of Interest in Common Stock __ yes __ no

If yes, $_____ of Interest Accrued on Account of Conversion at Issue.

Number of shares of Common Stock to be issued:

Signature: _________________

Name: ____________________

Delivery Instructions:

**Schedule 1**

**CONVERSION SCHEDULE**

This 5% Promissory Note, with an issue date of December 9, 2022, in the original principal amount of $300,000 is issued by Clean Vision Corporation (the "<u>Company</u>"). This Conversion Schedule with respect to the Common Stock of the Company reflects conversions made under Section 5 of the above-referenced Note.

Dated:

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;Date of Conversion (or for first entry, Original Issue Date) | &nbsp;&nbsp;Amount of Conversion | &nbsp;&nbsp;Aggregate Principal Amount and Guaranteed Interest Remaining Subsequent to Conversion<br> (or original Principal Amount) | &nbsp;&nbsp;Company's Attest |

---

------

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| | |
|:---|:---|
| <sup>[1]</sup> | As noted in Section 2(a) of the Registration Rights Agreement, of even date herewith between the Company and the Holder, if the Company files its initial Registration Statement within forty-five (45) calendar days from the date of this Note, then the Holder, pursuant to its mandatory obligations thereunder, shall, within ten (10) calendar days thereafter, return to the Company's treasury for cancellation twelve million five hundred thousand (12500000) shares. |

---

## Exhibit 10.7

**Exhibit 10.7**

**SECURITIES PURCHASE AGREEMENT**

**THIS SECURITIES PURCHASE AGREEMENT** (this "<u>Agreement</u>"), dated as of December 9, 2022 between Clean Vision Corporation, a Nevada corporation (the "<u>Company</u>"), and Coventry Enterprises, LLC, a Delaware limited liability company ("<u>Investor</u>").

**WITNESSETH**

**WHEREAS**, the Company and the Investor are executing and delivering this Agreement in reliance upon an exemption from securities registration pursuant to Section 4(a)(2) and/or Rule 506 of Regulation D ("<u>Regulation D</u>") as promulgated by the U.S. Securities and Exchange Commission (the "<u>SEC</u>") under the Securities Act of 1933, as amended (the "<u>Securities Act</u>");

**WHEREAS**, the parties desire that, upon the terms and subject to the conditions contained herein, the Company shall issue and sell to the Investor, as provided herein, and the Investor shall purchase a $300,000.00 (the "<u>Promissory Note Purchase Price</u>") Promissory Note substantially in the form attached hereto as "<u>Exhibit A</u>" (referred to as the "<u>Promissory Note</u>"), which shall be convertible into shares of the Company's common stock in the event of a default, par value of $0.001 per share (the "<u>Common Stock</u>") (the "<u>Conversion Stock</u>") of which a Promissory Note (the "<u>Promissory Note</u>") in the face amount of $300,000.00 for a purchase price of $255,000.00 (the "<u>Purchase Price</u>") shall be issued within one business day following the date hereof, subject to notification of satisfaction of the conditions to the Closing set forth herein and in Sections 7(a) and 8(a) herein (the "<u>Closing</u>" or "<u>Closing Date</u>");

**WHEREAS**, contemporaneously with the execution and delivery of this Agreement, the parties hereto are executing and delivering Irrevocable Transfer Agent Instructions (the "<u>Irrevocable Transfer Agent Instructions</u>"); and

**WHEREAS**, the Promissory Note, the shares of Conversion Stock, and the fifteen million five hundred thousand 15,500,000 shares of the Company's restricted common stock to be issued to the Investor in accordance with the Promissory Note are collectively are referred to herein as the "<u>Securities</u>").

**NOW, THEREFORE**, in consideration of the mutual covenants and other agreements contained in this Agreement, and for such other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Company and the Investor hereby agree as follows:

1. CERTAIN
 DEFINITIONS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "<u>Anti-Bribery Laws</u>" shall mean of any provision of any applicable law or regulation implementing the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions or any applicable provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended (the "<u>FCPA</u>"), the U.K. Bribery Act 2010, or any other similar law of any other jurisdiction in which the Company operates its business, including, in each case, the rules and regulations thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "<u>Anti-Money Laundering Laws</u>" shall mean applicable financial recordkeeping and reporting requirements and all other applicable U.S. and non-U.S. anti-money laundering laws, rules and regulations, including, but not limited to, those of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the United States Bank Secrecy Act, as amended by the USA PATRIOT Act of 2001, and the United States Money Laundering Control Act of 1986 (18 U.S.C.§§1956 and 1957), as amended, as well as the implementing rules and regulations promulgated thereunder, and the applicable money laundering statutes of all applicable jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency or self-regulatory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "<u>Applicable Laws</u>" shall mean applicable laws, statutes, rules, regulations, orders, executive orders, directives, policies, guidelines, ordinance or regulation of any governmental entity and codes having the force of law, whether local, national, or international, as amended from time to time, including without limitation (i) all applicable laws that relate to Anti-Money Laundering Laws and all applicable laws that relate to money laundering, terrorist financing, financial record keeping and reporting, (ii) Anti-Bribery Laws and applicable laws that relate to anti-bribery, anti-corruption, books and records and internal controls, (iii) OFAC and any Sanctions Laws or Sanctions Programs, and (iv) CAATSA and any CAATSA Sanctions Programs, Anti-Money Laundering Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "<u>BHCA</u>" shall mean the Bank Holding Company Act of 1956, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "<u>CAATSA</u>" shall mean Public Law No. 115-44 The Countering America's Adversaries Through Sanctions Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "<u>CAATSA Sanctions Programs</u>" shall mean a country or territory that is, or whose government is, the subject of sanctions imposed by CAATSA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "<u>Dollar Value Traded</u>" means, for any security as of any date, the daily dollar traded value for such security as reported by Bloomberg, LP through its "Historical Price Table Screen (HP)" with Market: Dollar Value Traded function selected, or, if no dollar value traded is reported for such security by Bloomberg, the dollar traded value of any of the market makers for such security as reported in the OTC Markets Group Inc. (the "<u>OTC Markets</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Reserved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "<u>OFAC</u>" shall mean the U.S. Department of Treasury's Office of Foreign Asset Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "<u>Sanctioned Country</u>" shall mean a country or territory that is the subject or target of a comprehensive embargo or Sanctions Laws prohibiting trade with the country or territory, including, without limitation, Crimea, Cuba, Iran, North Korea, Sudan, and Syria.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "<u>Sanctions Laws</u>" shall mean any sanctions administered or enforced by OFAC or the U.S. Departments of State or Commerce and including, without limitation, the designation as a "Specially Designated National" or on the "Sectoral Sanctions Identifications List" (collectively, "<u>Blocked Persons</u>"), the United Nations Security Council ("<u>UNSC</u>"), the European Union, Her Majesty's Treasury ("<u>HMT</u>"), or any other relevant sanctions authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "<u>Sanctions Programs</u>" shall mean any OFAC, HMT, or UNSC economic sanction program including, without limitation, programs related to a Sanctioned Country.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "<u>Sarbanes-Oxley Act</u>" means the Sarbanes-Oxley Act of 2002, as amended.

2. <u>PURCHASE AND SALE OF THE PROMISSORY NOTE</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Purchase of the Promissory Note</u>. Subject to the satisfaction (or waiver) of the terms and conditions of this Agreement, the Investor agrees to purchase at the Closing and the Company agrees to sell and issue to Investor at the Closing the Promissory Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Closing Date</u>. The Closing of the purchase and sale of the Promissory Note shall take place at 10:00 a.m. Eastern Standard Time on the first business day following the date hereof, subject to notification of satisfaction of the conditions to the Closing set forth herein and in Sections 7 and 8 below (or such later date as is mutually agreed to by the Company and the Investor (the "Closing Date")).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Form of Payment</u>. Subject to the satisfaction of the terms and conditions of this Agreement, on the Closing Date, (i) the Investor shall deliver to the Company such aggregate proceeds for the Promissory Note to be issued and sold to the Investor at the Closing, minus the original issue discount applicable to such Closing as set forth in the Promissory Note, and (ii) the Company shall deliver to the Investor a Promissory Note that the Investor is purchasing at the Closing, duly executed on behalf of the Company.

3. <u>INVESTOR'S REPRESENTATIONS AND WARRANTIES</u>.

The Investor represents and warrants, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Investment Purpose</u>. The Investor is acquiring the Securities for its own account for investment only and not with a view towards, or for resale in connection with, the public sale or distribution thereof, except pursuant to sales registered or exempted under the Securities Act; <u>provided</u>, <u>however</u>, that, by making the representations herein, the Investor reserves the right to dispose of the Securities at any time in accordance with or pursuant to an effective registration statement covering such Securities or an available exemption under the Securities Act. The Investor does not presently have any agreement or understanding, directly or indirectly, with any corporation, association, partnership, organization, business, individual, government or political subdivision thereof or governmental agency ("<u>Person</u>") to distribute any of the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Accredited Investor Status</u>. The Investor is an "<u>Accredited Investor</u>," as that term is defined in Rule 501(a)(3) of Regulation D.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Reliance on Exemptions</u>. The Investor understands that the Securities are being offered and sold to it in reliance on specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying in part upon the truth and accuracy of, and the Investor's compliance with, the representations, warranties, agreements, acknowledgments and understandings of the Investor set forth herein in order to determine the availability of such exemptions and the eligibility of the Investor to acquire the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Information</u>. The Investor and its advisors (and his or, its counsel), if any, have been furnished with all materials relating to the business, finances and operations of the Company and information he deemed material to making an informed investment decision regarding his purchase of the Securities, which have been requested by the Investor. The Investor and its advisors, if any, have been afforded the opportunity to ask questions of the Company and its management. Neither such inquiries nor any other due diligence investigations conducted by the Investor or its advisors, if any, or its representatives shall modify, amend, or affect the Investor's right to rely on the Company's representations and warranties contained in Section 4 below. The Investor understands that its investment in the Securities involves a high degree of risk. The Investor is in a position regarding the Company, which, based upon employment, family relationship or economic bargaining power, enabled and enables the Investor to obtain information from the Company in order to evaluate the merits and risks of this investment. The Investor has sought such accounting, legal and tax advice, as it has considered necessary to make an informed investment decision with respect to its acquisition of the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>No Governmental Review</u>. The Investor understands that no United States federal or state agency or any other government or governmental agency has passed on or made any recommendation or endorsement of the Securities, or the fairness or suitability of the investment in the Securities, nor have such authorities passed upon or endorsed the merits of the offering of the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Transfer or Resale</u>. The Investor understands that: (i) the Securities have not been and are not being registered under the Securities Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently registered thereunder, (B) the Investor shall have delivered to the Company an opinion of counsel, in a generally acceptable form, to the effect that such Securities to be sold, assigned or transferred may be sold, assigned or transferred pursuant to an exemption from such registration requirements, or (C) the Investor provides the Company with reasonable assurances (in the form of seller and broker representation letters) that such Securities can be sold, assigned or transferred pursuant to Rule 144 or Rule 144A promulgated under the Securities Act, as amended (or a successor rule thereto) (collectively, "<u>Rule 144</u>"), in each case following the applicable holding period set forth therein; (ii) any sale of the Securities made in reliance on Rule 144 may be made only in accordance with the terms of Rule 144 and further, if Rule 144 is not applicable, any resale of the Securities under circumstances in which the seller (or the person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the Securities Act) may require compliance with some other exemption under the Securities Act or the rules and regulations of the SEC thereunder; and (iii) neither the Company nor any other person is under any obligation to register the Securities under the Securities Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Legends</u>. The Investor agrees to the imprinting, so long as is required by this Section 3(g), of a restrictive legend on any certificate, document or instrument representing the Securities in substantially the following form:

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES HAVE BEEN ACQUIRED SOLELY FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TOWARD RESALE AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED, OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS.

Certificates evidencing the shares of Conversion Stock shall not contain any legend (including the legend set forth above) (i) while a registration statement covering the resale of such security is effective under the Securities Act, (ii) following any sale of such shares of Conversion Stock pursuant to Rule 144, (iii) if such shares of Conversion Stock are eligible for sale under Rule 144, or (iv) if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the SEC). The Company shall cause its counsel to issue a legal opinion to the Company's transfer agent promptly after the effective date (the "<u>Effective Date</u>") of a registration statement if required by the Company's transfer agent to effect the removal of the legend hereunder. If all or any portion of a Promissory Note is converted is exercised by the Investor who is then not an Affiliate of the Company (a "<u>Non-Affiliated Investor</u>") at a time when there is an effective registration statement to cover the resale of the shares of Conversion Stock, such shares of Conversion Stock shall be issued free of all legends. The Company agrees that, following the Effective Date or at such time as such legend is no longer required under this Section 3(g), it will, no later than three (3) Trading Days following the delivery by a Non-Affiliated Investor to the Company or the Company's transfer agent of a certificate representing shares of Conversion Stock, issued with a restrictive legend (such 3<sup>rd</sup> Trading Day, the "<u>Legend Removal Date</u>"), deliver or cause to be delivered to such Non-Affiliated Investor a certificate representing such shares that is free from all restrictive and other legends. The Company may not make any notation on its records or give instructions to any transfer agent of the Company that enlarge the restrictions on transfer set forth in this Section. The Investor acknowledges that the Company's agreement hereunder to remove all legends from shares of Conversion Stock is not an affirmative statement or representation that such shares of Conversion Stock are freely tradable. The Investor, agrees that the removal of the restrictive legend from certificates representing Securities as set forth in this Section 3(g) is predicated upon the Company's reliance that the Investor will sell any Securities pursuant to either the registration requirements of the Securities Act, including any applicable prospectus delivery requirements, or an exemption therefrom, and that if Securities are sold pursuant to a registration statement, they will be sold in compliance with the plan of distribution set forth therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Authorization, Enforcement</u>. This Agreement has been duly and validly authorized, executed and delivered on behalf of the Investor and is a valid and binding agreement of the Investor enforceable in accordance with its terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, and other similar laws relating to, or affecting generally, the enforcement of applicable creditors' rights and remedies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Receipt of Documents</u>. The Investor and its counsel have received and read in their entirety: (i) this Agreement and each representation, warranty, and covenant set forth herein and the Transaction Documents (as defined herein); (ii) all due diligence and other information necessary to verify the accuracy and completeness of such representations, warranties and covenants; (iii) the Company's annual report for the period ending December 2021 filed with the OTC Markets, and (v) answers to all questions the Investor submitted to the Company regarding an investment in the Company; and the Investor has relied on the information contained therein and has not been furnished any other documents, literature, memorandum or prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Due Formation of Corporate and Other Investors</u>. If the Investor is a corporation, trust, partnership, or other entity that is not an individual person, it has been formed and validly exists and has not been organized for the specific purpose of purchasing the Securities and is not prohibited from doing so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>No Legal Advice From the Company</u>. The Investor acknowledges, that it had the opportunity to review this Agreement and the transactions contemplated by this Agreement with his or its own legal counsel and investment and tax advisors. The Investor is relying solely on such counsel and advisors and not on any statements or representations of the Company or any of its representatives or agents for legal, tax or investment advice with respect to this investment, the transactions contemplated by this Agreement or the securities laws of any jurisdiction.

4. <u>REPRESENTATIONS AND WARRANTIES OF THE COMPANY</u>.

Except as set forth under the corresponding section of the Disclosure Schedules, which Disclosure Schedules shall be deemed a part hereof and to qualify any representation or warranty otherwise made herein to the extent of such disclosure, the Company hereby makes the representations and warranties set forth below to the Investor:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Subsidiaries</u>. All of the direct and indirect subsidiaries of the Company are identified in the Regulatory Disclosure Documents (as defined below). The Company owns, directly or indirectly, all of the capital stock or other equity interests of each subsidiary free and clear of any liens (except as may be identified on Schedule 4 (b)), and all the issued and outstanding shares of capital stock of each subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Security Interests Granted</u>. Except as set forth on Disclosure <u>Schedule 4(b)</u>, there are no security interests granted, issued, or allowed to exist in any assets of the Company or subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Organization and Qualification</u>. The Company and its subsidiaries are corporations or limited liability companies duly organized and validly existing in good standing under the laws of the jurisdiction in which they are incorporated / organized, and have the requisite power to own their properties and to carry on their business as now being conducted. Each of the Company and its subsidiaries is duly qualified as a foreign corporation / entity to do business and is in good standing in every jurisdiction in which the nature of the business conducted by it makes such qualification necessary, except to the extent that the failure to be so qualified or be in good standing would not have or reasonably be expected to result in (i) a material adverse effect on the legality, validity or enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business or condition (financial or otherwise) of the Company and the subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company's ability to perform in any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii), or (iii), a "<u>Material Adverse Effect</u>") and no proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification; <u>provided</u>, <u>however</u>, that "Material Adverse Effect" shall not include any event, occurrence, fact, condition or change, directly or indirectly, arising out of or attributable to: (i) general economic or political conditions, (ii) conditions generally affecting the industry in which the Company or any Subsidiary operates, (iii) any changes in financial or securities markets in general, (iv) acts of war (whether or not declared), armed hostilities or terrorism, or the escalation or worsening thereof, (v) any pandemic, epidemics or human health crises (including COVID-19), (vi) any changes in applicable laws or accounting rules, (vii) the announcement, pendency or completion of the transactions contemplated by the Transaction Documents, or any action required or permitted by the Transaction Documents or any action taken (or omitted to be taken) with the written consent of or at the written request of the Investor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Authorization, Enforcement, Compliance with Other Instruments</u>. (i) The Company has the requisite corporate power and authority to enter into and perform its obligations under this Agreement, the Promissory Note, the Registration Rights Agreement (in the form attached hereto as "Exhibit B") , and the Irrevocable Transfer Agent Instructions, and each of the other agreements entered into by the parties hereto in connection with the transactions contemplated by this Agreement (collectively, the "<u>Transaction Documents</u>") and to issue the Securities in accordance with the terms hereof and thereof, (ii) the execution and delivery of the Transaction Documents by the Company and the consummation by it of the transactions contemplated hereby and thereby, including, without limitation, the issuance of the Securities, the reservation for issuance and the issuance of the shares of Conversion Stock, have been duly authorized by the Company's Board of Directors and no further consent or authorization is required by the Company, its Board of Directors or its stockholders, (iii) the Transaction Documents have been duly executed and delivered by the Company, (iv) the Transaction Documents constitute the valid and binding obligations of the Company enforceable against the Company in accordance with their terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of creditors' rights and remedies. The authorized officer of the Company executing the Transaction Documents knows of no reason why the Company cannot perform any of the Company's obligations under the Transaction Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Capitalization</u>. The authorized capital stock of the Company consists of two billion shares of Common Stock and 10 million shares of Preferred Stock, par value $0.01, allocated into three different series: two million shares of Series A Preferred Stock (par value $0.01), two million shares of Series B Preferred Stock (par value $0.01), and two million shares of Series C Preferred Stock (par value $0.01) (collectively, the "<u>Preferred Stock</u>") of which 358,485,392 shares of Common Stock, 0 shares of Series A Preferred Stock, two million shares of Series B Preferred Stock, and two million shares of Series C Preferred Stock are issued and outstanding. All of the outstanding shares of capital stock of the Company are validly issued, fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. Except as disclosed in <u>Schedule 4(e) and as set forth in the Regulatory Disclosure Documents</u>: (i) none of the Company's capital stock is subject to preemptive rights or any other similar rights or any liens or encumbrances suffered or permitted by the Company; (ii) there are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any capital stock of the Company or any of its subsidiaries, or contracts, commitments, understandings or arrangements by which the Company or any of its subsidiaries is or may become bound to issue additional capital stock of the Company or any of its subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any capital stock of the Company or any of its subsidiaries; (iii) there are no outstanding debt securities, notes, credit agreements, credit facilities or other agreements, documents or instruments evidencing indebtedness of the Company or any of its subsidiaries or by which the Company or any of its subsidiaries is or may become bound; (iv) there are no financing statements securing obligations in any material amounts, either singly or in the aggregate, filed in connection with the Company or any of its subsidiaries; (v) there are no outstanding securities or instruments of the Company or any of its subsidiaries which contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any of its subsidiaries is or may become bound to redeem a security of the Company or any of its subsidiaries; (vi) there are no securities or instruments containing anti-dilution or similar provisions that will be triggered by the issuance of the Securities; (vii) the Company does not have any stock appreciation rights or "phantom stock" plans or agreements or any similar plan or agreement; and (viii) the Company and its subsidiaries have no liabilities or obligations required to be disclosed in the Regulatory Disclosure Documents but not so disclosed therein, other than those incurred in the ordinary course of the Company's or its subsidiaries' respective businesses and which, individually or in the aggregate, do not or would not have a Material Adverse Effect. The Company has furnished to the Investor true, correct, and complete copies of the Company's Certificate of Incorporation, as amended and as in effect on the date hereof (the "<u>Certificate of Incorporation</u>"), and the Company's Bylaws, as amended and as in effect on the date hereof (the "<u>Bylaws</u>"), and the terms of all securities convertible into, or exercisable or exchangeable for, shares of Common Stock and the material rights of the holders thereof in respect thereto. No further approval or authorization of any stockholder, the Board of Directors of the Company or others is required for the issuance and sale of the Securities. There are no stockholders agreements, voting agreements or other similar agreements with respect to the Company's capital stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company's stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Issuance of Securities</u>. The issuance of the Promissory Note was duly authorized and free from all taxes, liens, and charges with respect to the issue thereof. Upon conversion in accordance with the terms of the Promissory Note and the shares of Conversion Stock, when issued in accordance with its terms will be validly issued, fully paid and nonassessable, free from all taxes, liens, and charges with respect to the issue thereof. The Company has reserved from its duly authorized capital stock the appropriate number of shares of Common Stock as set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>No Conflicts</u>. The execution, delivery and performance of the Transaction Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Promissory Note, and reservation for issuance and issuance of the shares of Conversion Stock) will not (i) result in a violation of any certificate of incorporation, certificate of formation, any certificate of designations or other constituent documents of the Company or any of its subsidiaries, any capital stock of the Company or any of its subsidiaries or bylaws of the Company or any of its subsidiaries or (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) in any respect under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company or any of its subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including foreign, federal and state securities laws and regulations and the rules and regulations of the OTC Markets' OTCQB<sup>®</sup> Venture Market (the "<u>Primary Market</u>") applicable to the Company or any of its subsidiaries or by which any property or asset of the Company or any of its subsidiaries is bound or affected; except in the case of each of clauses (ii) and (iii), such as could not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect. The business of the Company and its subsidiaries is not being conducted, and shall not be conducted in violation of any material law, ordinance, or regulation of any governmental entity. Except as specifically contemplated by this Agreement and as required under the Securities Act and any applicable state securities laws, the Company is not required to obtain any consent, authorization, or order of, or make any filing or registration with, any court or governmental agency in order for it to execute, deliver or perform any of its obligations under or contemplated by this Agreement of the Transaction Documents in accordance with the terms hereof or thereof. All consents, authorizations, orders, filings, and registrations which the Company is required to obtain pursuant to the preceding sentence have been obtained or effected on or prior to the date hereof. The Company and its subsidiaries are unaware of any facts or circumstance, which might give rise to any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Regulatory Disclosure Documents; Financial Statements</u>. The Company has filed all reports, schedules, forms, statements, and other documents required to be filed by it with the OTC Markets and / or the SEC (from and after January 1, 2020) and all exhibits included therein and financial statements and schedules thereto and documents incorporated by reference therein, being hereinafter referred to as the "<u>Regulatory Disclosure Documents</u>") on a timely basis or has received a valid extension of such time of filing and has filed any such required notice prior to the expiration of any such extension. The Company has delivered to the Investor or its representatives, or made available through the SEC's website at http://www.sec.gov or the OTC Markets' website at https://www.otcmarkets.com/stock/CLNV/overview, true and complete copies of the Regulatory Disclosure Documents. As of their respective dates, the Regulatory Disclosure Documents complied in all material respects with the requirements of the SEC or the OTC Markets Alternative Reporting Standards, as applicable, and the rules and regulations of the SEC or the OTC Markets, as applicable, and none of the Regulatory Disclosure Documents, at the time they were filed with the OTC Markets or the SEC, as applicable, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. As of their respective dates, the financial statements of the Company and its subsidiaries included in the Regulatory Disclosure Documents complied as to form in all material respects with applicable accounting requirements and the published rules and regulations of the OTC Markets and / or the SEC, as applicable, with respect thereto. Such financial statements have been prepared in accordance with generally accepted accounting principles, consistently applied, during the periods involved (except (i) as may be otherwise indicated in such financial statements or (ii) in the case of unaudited interim statements, to the extent they may exclude footnotes or may be condensed or summary statements) and fairly present in all material respects the financial position of the Company as of the dates thereof and the results of its operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments). No other information provided by or on behalf of the Company to the Investor which is not included in the Regulatory Disclosure Documents contains any untrue statement of a material fact or omits to state any material fact necessary in order to make the statements therein, in the light of the circumstance under which they are or were made, not misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>10(b)-5</u>. The Regulatory Disclosure Documents do not include any untrue statements of material fact, nor do they omit to state any material fact required to be stated therein necessary to make the statements made, in light of the circumstances under which they were made, not misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Absence of Litigation</u>. To the best knowledge of the Company, after due inquiry, and except as set forth on Schedule 4(j), annexed hereto, there is no action, suit, proceeding, inquiry, or investigation before or by any court, public board, government agency, self-regulatory organization or body pending against or affecting the Company, the Common Stock or any of the Company's subsidiaries, wherein an unfavorable decision, ruling or finding would have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>CAATSA</u>. Neither the Company or its subsidiaries, nor, to Company's knowledge, any director, officer, agent, employee or affiliate of the Company or subsidiaries, is a Person that is, or is owned or controlled by a Person that has a place of business in, or is operating, organized, resident or doing business in a country or territory that is, or whose government is, the subject of the CAATSA Sanctions Programs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Reserved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Sarbanes-Oxley Act</u>. The Company and its subsidiaries are in compliance with any and all applicable requirements of the Sarbanes-Oxley Act, that are effective as of the date hereof, and any and all applicable rules and regulations promulgated by the SEC thereunder that are applicable to the Company and its subsidiaries and effective as of the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>BHCA</u>. Neither the Company nor any of its subsidiaries or affiliates is subject to BHCA and to regulation by the Board of Governors of the Federal Reserve System (the "<u>Federal Reserve</u>"). Neither the Company nor any of its Subsidiaries or affiliates owns or controls, directly or indirectly, 5% or more of the outstanding shares of any class of voting securities or 25% or more of the total equity of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve. Neither the Company nor any of its subsidiaries or affiliates exercises a controlling influence over the management or policies of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>No Disagreements with Accountants and Lawyers</u>. There are no material disagreements of any kind presently existing, or reasonably anticipated by the Company to arise, between the Company and the accountants and lawyers formerly or presently employed by the Company and the Company is current with respect to any fees owed to its accountants and lawyers which could affect the Company's ability to perform any of its obligations under any of the Transaction Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Compliance with Applicable Laws</u>. The operations of the Company and its subsidiaries are and have been conducted at all times in compliance Applicable Laws and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any of its Subsidiaries with respect to Applicable Laws is pending or, to the knowledge of the Company, threatened.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>No Conflicts with Sanctions Laws</u>. Neither the Company nor any of its subsidiaries, nor any director, officer, employee, agent, affiliate or other person associated with or acting on behalf of the Company or any of its subsidiaries or affiliates is, or is directly or indirectly owned or controlled by, a Person that is currently the subject or the target of any Sanctions Laws or is a Blocked Person; neither the Company, any of its subsidiaries, nor any director, officer, employee, agent, affiliate or other person associated with or acting on behalf of the Company or any of its subsidiaries or affiliates, is located, organized or resident in a country or territory that is the subject or target of a comprehensive embargo, Sanctions Laws or Sanctions Programs prohibiting trade with a Sanctioned Country; the Company maintains in effect and enforces policies and procedures designed to ensure compliance by the Company and its Subsidiaries with applicable Sanctions Laws and Sanctions Programs; neither the Company, any of its subsidiaries, nor any director, officer, employee, agent, affiliate or other person associated with or acting on behalf of the Company or any of its subsidiaries or affiliates, acting in any capacity in connection with the operations of the Company, conducts any business with or for the benefit of any Blocked Person or engages in making or receiving any contribution of funds, goods or services to, from or for the benefit of any Blocked Person, or deals in, or otherwise engages in any transaction relating to, any property or interests in property blocked or subject to blocking pursuant to any applicable Sanctions Laws or Sanctions Programs; no action of the Company or any of its subsidiaries in connection with (i) the execution, delivery and performance of this Agreement and the other Transaction Documents, (ii) the issuance and sale of the Securities, or (iii) the direct or indirect use of proceeds from the Securities or the consummation of any other transaction contemplated hereby or by the other Transaction Documents or the fulfillment of the terms hereof or thereof, will result in the proceeds of the transactions contemplated hereby and by the other Transaction Documents being used, or loaned, contributed or otherwise made available, directly or indirectly, to any subsidiary, joint venture partner or other person or entity, for the purpose of (i) unlawfully funding or facilitating any activities of or business with any person that, at the time of such funding or facilitation, is the subject or target of Sanctions Laws or Sanctions Programs, (ii) unlawfully funding or facilitating any activities of or business in any Sanctioned Country or (iii) in any other manner that will result in a violation by any Person (including any Person participating in the transaction, whether as underwriter, advisor, investor or otherwise) of Sanctions Laws or Sanctions Programs. For the past 5 years, the Company and its subsidiaries have not knowingly engaged in and are not now knowingly engaged in any dealings or transactions with any person that at the time of the dealing or transaction is or was the subject or the target of Sanctions Laws, Sanctions Programs or with any Sanctioned Country.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>No Conflicts with Anti-Bribery Laws</u>. Neither the Company nor any of the subsidiaries has made any contribution or other payment to any official of, or candidate for, any federal, state, or foreign office in violation of any law. Neither the Company, nor any of its subsidiaries or affiliates, nor any director, officer, agent, employee or other person associated with or acting on behalf of the Company, or any of its subsidiaries or affiliates, has (i) used any funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity, (ii) made any direct or indirect unlawful payment to any foreign or domestic government official or employee, to any employee or agent of a private entity with which the Company does or seeks to do business (a "<u>Private Sector Counterparty")</u> or to foreign or domestic political parties or campaigns, (iii) violated or is in violation of any provision of any Anti-Bribery Laws, (iv) taken, is currently taking or will take any action in furtherance of an offer, payment, gift or anything else of value, directly or indirectly, to any person while knowing that all or some portion of the money or value will be offered, given or promised to anyone to improperly influence official action, to obtain or retain business or otherwise to secure any improper advantage or (v) otherwise made any offer, bribe, rebate, payoff, influence payment, unlawful kickback or other unlawful payment; the Company and each of its respective subsidiaries has instituted and has maintained, and will continue to maintain, policies and procedures reasonably designed to promote and achieve compliance with the laws referred to in (iii) above and with this representation and warranty; none of the Company, nor any of its subsidiaries or affiliates will directly or indirectly use the proceeds of the Securities or lend, contribute or otherwise make available such proceeds to any subsidiary, affiliate, joint venture partner or other person or entity for the purpose of financing or facilitating any activity that would violate the laws and regulations referred to in (iii) above; to the knowledge of the Company, there are, and have been, no allegations, investigations or inquiries with regard to a potential violation of any Anti-Bribery Laws by the Company, its subsidiaries or affiliates, or any of their respective current or former directors, officers, employees, stockholders, representatives or agents, or other persons acting or purporting to act on their behalf.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>No Disqualification Events</u>. With respect to Securities to be offered and sold hereunder in reliance on Rule 506(b) under the 1933 Act ("<u>Regulation D Securities</u>"), none of the Company, any of its predecessors, any affiliated issuer, any director, executive officer, other officer of the Company participating in the offering hereunder, any beneficial owner of 20% or more of the Company's outstanding voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under the 1933 Act) connected with the Company in any capacity at the time of sale (each, an "<u>Issuer Covered Person</u>" and, together, "<u>Issuer Covered Persons</u>") is subject to any of the "Bad Actor" disqualifications described in Rule 506(d)(1)(i) to (viii) under the 1933 Act (a "<u>Disqualification Event</u>"), except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to determine whether any Issuer Covered Person is subject to a Disqualification Event. The Company has complied, to the extent applicable, with its disclosure obligations under Rule 506(e), and has furnished to the Investor a copy of any disclosures provided thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Acknowledgment Regarding Investor's Purchase of the Promissory Note</u>. The Company acknowledges and agrees that the Investor is acting solely in the capacity of an arm's length purchaser with respect to this Agreement and the transactions contemplated hereby. The Company further acknowledges that the Investor is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to this Agreement and the transactions contemplated hereby and any advice given by the Investor or any of their respective representatives or agents in connection with this Agreement and the transactions contemplated hereby is merely incidental to the Investor's purchase of the Securities. The Company further represents to the Investor that the Company's decision to enter into this Agreement has been based solely on the independent evaluation by the Company and its representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>No General Solicitation</u>. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D under the Securities Act) in connection with the offer or sale of the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>No Integrated Offering</u>. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would require registration of the Securities under the Securities Act or cause this offering of the Securities to be integrated with prior offerings by the Company for purposes of the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) <u>Employee Relations</u>. Neither the Company nor any of its subsidiaries is involved in any labor dispute or, to the knowledge of the Company or any of its subsidiaries, is any such dispute threatened. None of the Company's or its subsidiaries' employees is a member of a union and the Company and its subsidiaries believe that their relations with their employees are good.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) <u>Intellectual Property Rights</u>. The Company and its subsidiaries own or possess adequate rights or licenses to use all trademarks, trade names, service marks, service mark registrations, service names, patents, patent rights, copyrights, inventions, licenses, approvals, governmental authorizations, trade secrets and rights necessary to conduct their respective businesses as now conducted. The Company and its subsidiaries do not have any knowledge of any infringement by the Company or its subsidiaries of trademark, trade name rights, patents, patent rights, copyrights, inventions, licenses, service names, service marks, service mark registrations, trade secret or other similar rights of others, and, to the knowledge of the Company there is no claim, action or proceeding being made or brought against, or to the Company's knowledge, being threatened against, the Company or its subsidiaries regarding trademark, trade name, patents, patent rights, invention, copyright, license, service names, service marks, service mark registrations, trade secret or other infringement; and the Company and its subsidiaries are unaware of any facts or circumstances which might give rise to any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) <u>Environmental Laws</u>. The Company and its subsidiaries are (i) in compliance with any and all applicable foreign, federal, state and local laws and regulations relating to the protection of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants ("<u>Environmental Laws</u>"), (ii) have received all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses and (iii) are in compliance with all terms and conditions of any such permit, license or approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) <u>Title</u>. All real property and facilities held under lease by the Company and its subsidiaries are held by them under valid, subsisting, and enforceable leases with such exceptions as are not material and do not interfere with the use made and proposed to be made of such property and buildings by the Company and its subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) <u>Insurance</u>. The Company and each of its subsidiaries is insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as management of the Company believes to be prudent and customary in the businesses in which the Company and its subsidiaries are engaged. Neither the Company nor any such subsidiary has been refused any insurance coverage sought or applied for and neither the Company nor any such subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not materially and adversely affect the condition, financial or otherwise, or the earnings, business or operations of the Company and its subsidiaries, taken as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) <u>Regulatory Permits</u>. The Company and its subsidiaries possess all material certificates, authorizations and permits issued by the appropriate federal, state, or foreign regulatory authorities necessary to conduct their respective businesses, and neither the Company nor any such subsidiary has received any notice of proceedings relating to the revocation or modification of any such certificate, authorization, or permit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) <u>Internal Accounting Controls</u>. The Company and each of its subsidiaries maintains a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management's general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain asset accountability, and (iii) the recorded amounts for assets are compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) <u>No Material Adverse Breaches, etc</u>. Neither the Company nor any of its subsidiaries is subject to any charter, corporate or other legal restriction, or any judgment, decree, order, rule, or regulation which in the judgment of the Company's officers has or is expected in the future to have a Material Adverse Effect on the business, properties, operations, financial condition, results of operations or prospects of the Company or its subsidiaries. Neither the Company nor any of its subsidiaries is in breach of any contract or agreement which breach, in the judgment of the Company's officers, has or is expected to have a Material Adverse Effect on the business, properties, operations, financial condition, results of operations or prospects of the Company or its subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) <u>Tax Status</u>. The Company and each of its subsidiaries has made and filed all federal and state income and all other tax returns, reports and declarations required by any jurisdiction to which it is subject and (unless and only to the extent that the Company and each of its subsidiaries has set aside on its books provisions reasonably adequate for the payment of all unpaid and unreported taxes) has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports and declarations, except those being contested in good faith and has set aside on its books provision reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company know of no basis for any such claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) <u>Certain Transactions</u>. Except for arm's length transactions pursuant to which the Company makes payments in the ordinary course of business upon terms no less favorable than the Company could obtain from third parties, none of the officers, directors, or employees of the Company is presently a party to any transaction with the Company (other than for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any corporation, partnership, trust or other entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or partner.

Except with respect to the material terms and conditions of the transactions contemplated by this Agreement, all of which shall be publicly disclosed by the Company as soon as possible after the date hereof, the Company covenants and agrees that neither the Company, nor any other person acting on its behalf, will provide the Investor or its agents or counsel with any information that the Company believes constitutes material non-public information, unless prior thereto the Investor shall have entered into a written agreement with the Company regarding the confidentiality and use of such information. The Company understands and confirms that the Investor shall be relying on the foregoing covenant in effecting transactions in securities of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) <u>Fees and Rights of First Refusal</u>. The Company is not obligated to offer the securities offered hereunder on a right of first refusal basis or otherwise to any third parties including, but not limited to, current or former stockholders of the Company, underwriters, brokers, agents or other third parties, except for any persons who have who have validly waived their right of first refusal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) <u>Investment Company.</u> The Company is not, and is not an affiliate of, and immediately after receipt of payment for the Securities, will not be or be an affiliate of, an "investment company" within the meaning of the Investment Company Act of 1940, as amended. The Company shall conduct its business in a manner so that it will not become subject to the Investment Company Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Registration Rights</u>. Except for the Investor pursuant to the Registration Rights Agreement, no Person has any right to cause the Company to effect the registration under the Securities Act of any securities of the Company except parties in Schedule 4€ and as set forth in any Regulatory Disclosure Documents, including the exhibits thereto. There are no outstanding registration statements not yet declared effective and there are no outstanding comment letters from the SEC or any other regulatory agency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) <u>Private Placement</u>. Assuming the accuracy of the Investor's representations and warranties set forth in Section 3, no registration under the Securities Act is required for the offer and sale of the Securities by the Company to the Investor as contemplated hereby. The issuance and sale of the Securities hereunder does not contravene the rules and regulations of the Primary Market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) <u>Listing and Maintenance Requirements</u>. The Company has not, in the 12 months preceding the date hereof, received notice from the Primary Market on which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance with the listing or maintenance requirements of such Primary Market. The Company is, and has no reason to believe that it will not in the foreseeable future continue to be, in compliance with all such listing and maintenance requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) <u>Reporting Status</u>. With a view to making available to the Investor the benefits of Rule 144 or any similar rule or regulation of the SEC that may at any time permit the Investor to sell securities of the Company to the public without registration, and as a material inducement to the Investor's purchase of the Securities, the Company represents and warrants to the following: (i) the Company is, and has been for a period of at least 24 months immediately preceding the date hereof, subject to the reporting requirements of the OTC Markets (ii) the Company has filed all required reports of the OTC Markets, as applicable, during the 24 months preceding the date hereof (or for such shorter period that the Company was required to file such reports), and (iii) the Company is not an issuer defined as a "Shell Company." and (iv) in the reasoned opinion of McMurdo Law Group, LLC, co-counsel to the Company, which opinion is dated April 2, 2019, and has been provided to, and accepted by, the Investor, the Company is not an issuer that has been at any time previously an issuer defined as a "Shell Company." For the purposes hereof, the term "Shell Company" shall mean an issuer that meets the description defined in paragraph (i)(1)(i) of Rule 144.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) <u>Disclosure</u>. The Company has made available to the Investor and its counsel all the information reasonably available to the Company that the Investor or its counsel have requested for deciding whether to acquire the Securities. No representation or warranty of the Company contained in this Agreement (as qualified by the Disclosure Schedule) or any of the other Transaction Documents, and no certificate furnished or to be furnished to the Investor at the Closing, or any due diligence evaluation materials furnished by the Company or on behalf of the Company, including without limitation, due diligence questionnaires, or any other documents, presentations, correspondence, or information contains any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements contained herein or therein not misleading in light of the circumstances under which they were made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) <u>Manipulation of Price</u>. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or, paid any compensation for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities of the Company, other than, in the case of clauses (ii) and (iii), compensation paid to the Company's placement agent in connection with the placement of the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) Reserved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) Reserved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qq) <u>Relationship of the Parties</u>. Neither the Company, nor any of its subsidiaries, affiliates, nor any person acting on its or their behalf is a client or customer of the Investor or any of its affiliates and neither the Investor nor any of its affiliates has provided, or will provide, any services to the Company or any of its affiliates, its subsidiaries, or any person acting on its or their behalf. The Investor's relationship to Company is solely as an investor as provided for in the Transaction Documents.

5. <u>COVENANTS</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Best Efforts</u>. Each party shall use its best efforts to timely satisfy each of the conditions to be satisfied by it as provided in Sections 7 and 8 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Compliance with Applicable Laws</u>. While the Investor owns any Securities the Company shall comply with all Applicable Laws and will not take any action which will cause the Investor to be in violation of any such Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Conduct of Business</u>. While the Investor owns any Securities, the business of the Company shall not be conducted in violation of Applicable Laws and will not take any action which will cause the Investor to be in violation of any such Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) While the Investor owns any Securities, neither the Company, nor any of its Subsidiaries or affiliates, directors, officers, employees, representatives, or agents shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) conduct any business or engage in any transaction or dealing with or for the benefit of any Blocked Person, including the making or receiving of any contribution of funds, goods, or services to, from or for the benefit of any Blocked Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) deal in, or otherwise engage in any transaction relating to, any property or interests in property blocked or subject to blocking pursuant to the applicable Sanctions Laws, Sanctions Programs, located in a Sanctioned Country, or CAATSA or CAATSA Sanctions Programs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) use any of the proceeds of the transactions contemplated by this Agreement to finance, promote or otherwise support in any manner any illegal activity, including, without limitation, in contravention of any Anti-Money Laundering Laws, Sanctions Laws, Sanctioned Program, Anti-Bribery Laws or in any Sanctioned Country.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) violate, attempt to violate, or engage in or conspire to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, any of the Anti-Money Laundering Laws, Sanctions Laws, Sanctions Program, Anti-Bribery Laws, CAATSA or CAATSA Sanctions Programs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) While the Investor owns any Securities, the Company shall maintain in effect and enforce policies and procedures designed to ensure compliance by the Company and its Subsidiaries and their directors, officers, employees, agents representatives and affiliates with Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) While any Investor owns any Securities, the Company will promptly notify the Investor in writing if any of the Company, or any of its Subsidiaries or affiliates, directors, officers, employees, representatives, or agents, shall become a Blocked Person, or become directly or indirectly owned or controlled by a Blocked Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Company shall provide such information and documentation it may have as the Investor or any of their affiliates may reasonably request to satisfy compliance with Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The covenants set forth above shall be ongoing while the Investor owns any Securities. The Company shall promptly notify the Investor in writing should it become aware during such period (a) of any changes to these covenants, or (b) if it cannot comply with the covenants set forth herein. The Company shall also promptly notify the Investor in writing during such period should it become aware of an investigation, litigation or regulatory action relating to an alleged or potential violation of Applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Form D</u>. The Company agrees to file a Form D with respect to the Securities as (and if deemed) required under Regulation D and to provide a copy thereof to the Investor promptly after such filing. The Company shall, on or before the Closing Date, take such action as the Company shall reasonably determine is necessary to qualify the Securities, or obtain an exemption for the Securities for sale to the Investor at the Closing pursuant to this Agreement under applicable securities or "Blue Sky" laws of the states of the United States, and shall provide evidence of any such action so taken to the Investor on or prior to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Reporting Status</u>. With a view to making available to the Investor the benefits of Rule 144 or any similar rule or regulation of the SEC that may at any time permit the Investor to sell securities of the Company to the public without registration, and as a material inducement to the Investor's purchase of the Securities, the Company represents, warrants, and covenants to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) From the date hereof until all the Securities either have been sold by the Investor, or may permanently be sold by the Investor without any restrictions pursuant to Rule 144 (the "<u>Registration Period</u>"), the Company shall file with the SEC in a timely manner all required reports under section 13 or 15(d) of the Exchange Act (the "<u>SEC Documents</u>") and such reports shall conform to the requirement of the Exchange Act and the SEC for filing thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The Company shall furnish to the Investor so long as the Investor owns Securities, promptly upon request, (i) a written statement by the Company that it has complied with the reporting requirements of Rule 144, (ii) a copy of the most recent Regulatory Disclosure Documents or SEC Documents, as applicable, of the Company and such other reports and documents so filed by the Company with the OTC Markets or the SEC, and (iii) such other information as may be reasonably requested to permit the Investor to sell such securities pursuant to Rule 144 without registration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) During the Registration Period the Company shall not terminate its status as an issuer required to file reports under the Exchange Act even if the Exchange Act or the rules and regulations thereunder would otherwise permit such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Use of Proceeds</u>. The Company shall use the proceeds from the issuance of the Promissory Note hereunder for the use of proceeds disclosed on Schedule 4(g) and the Company shall not pay any related party obligations from such proceeds of the Promissory Note, all of which related party obligations shall be subordinated to the obligations owed to the Investor. Neither the Company nor any subsidiary shall, directly or indirectly, use any portion of the proceeds of the transactions contemplated herein, or lend, contribute, facilitate or otherwise make available such proceeds to any Person (i) to make any payment towards any indebtedness or other obligations of the Company or subsidiary; (ii) to pay any obligations of any nature or kind due or owing to any officers, directors, employees, or stockholders of the Company or subsidiary, other than salaries payable in the ordinary course of business of the Company; (iii) to fund, either directly or indirectly, any activities or business of or with any Blocked Person, in any Sanctioned Country, (iv) or in any manner or in a country or territory, that, at the time of such funding, is, or whose government is, the subject of CAATSA Sanctions Programs or (iv) in any other manner that will result in a violation of Anti-Money Laundering Laws, Sanctions Laws, Sanctioned Program, Anti-Bribery Laws or CAATSA Sanctions Programs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Reservation of Shares</u>. On the date hereof, the Company shall reserve for issuance to the Investor 65 million shares for issuance upon conversions of the Promissory Note (the "<u>Share Reserve</u>"). The Company represents that it has sufficient authorized and unissued shares of Common Stock available to create the Share Reserve after considering all other commitments that may require the issuance of Common Stock. The Company shall take all action reasonably necessary to at all times have authorized, and reserved for the purpose of issuance, such number of shares of Common Stock as shall be necessary to effect the full conversion of the Promissory Note. If at any time the Share Reserve is insufficient to effect the full conversion of the Promissory Note, the Company shall increase the Share Reserve accordingly. If the Company does not have sufficient authorized and unissued shares of Common Stock available to increase the Share Reserve, the Company shall call within 15 calendar days and hold a special meeting of the stockholders within 45 calendar days of such occurrence, for the sole purpose of increasing the number of shares authorized. The Company's management shall recommend to the stockholders to vote in favor of increasing the number of shares of Common Stock authorized. Management shall also vote all of its shares in favor of increasing the number of authorized shares of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Listings or Quotation</u>. The Company's Common Stock shall be listed or quoted for trading on the Primary Market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Issuance of Commitment Shares</u>. The Company shall issue fifteen million five hundred thousand (15,500,000) shares of its restricted common stock (in book form) to the Investor.<sup>[1]</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Corporate Existence</u>. So long as any of the Promissory Note remains outstanding, the Company shall not directly or indirectly consummate any merger, reorganization, restructuring, reverse stock split consolidation, sale of all or substantially all of the Company's assets or any similar transaction or related transactions (each such transaction, an "<u>Organizational Change</u>") unless, prior to the consummation of an Organizational Change, the Company obtains the written consent of the Investor, which shall not be unreasonably withheld, delayed, denied, or conditioned. In any such case, the Company will make appropriate provision with respect to such holders' rights and interests to insure that the provisions of this Section 5(l) will thereafter be applicable to the Promissory Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Transactions With Affiliates</u>. Except as may be provided in Section 4(h) above, so long as the Promissory Note is outstanding, the Company shall not, and shall cause each of its subsidiaries not to, enter into, amend, modify or supplement, or permit any subsidiary to enter into, amend, modify or supplement any agreement, transaction, commitment, or arrangement with any of its or any subsidiary's officers, directors, person who were officers or directors at any time during the previous 2 years, stockholders who beneficially own 5% or more of the Common Stock, or Affiliates (as defined below) or with any individual related by blood, marriage, or adoption to any such individual or with any entity in which any such entity or individual owns a 5% or more beneficial interest (each, a "<u>Related Party</u>"), except for (a) customary employment arrangements and benefit programs on reasonable terms, (b) any investment in an Affiliate of the Company, (c) any agreement, transaction, commitment, or arrangement on an arms-length basis on terms no less favorable than terms which would have been obtainable from a person other than such Related Party, (d) any agreement, transaction, commitment, or arrangement which is approved by a majority of the disinterested directors of the Company. "<u>Affiliate</u>" for purposes hereof means, with respect to any person or entity, another person or entity that, directly or indirectly, (i) has a 10% or more equity interest in that person or entity, (ii) has 10% or more common ownership with that person or entity, (iii) controls that person or entity, or (iv) shares common control with that person or entity. "<u>Control</u>" or "<u>controls</u>" for purposes hereof means that a person or entity has the power, direct or indirect, to conduct or govern the policies of another person or entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Transfer Agent</u>. The Company covenants and agrees that, in the event that the Company's agency relationship with the transfer agent should be terminated for any reason prior to a date which is 2 years after the Closing Date, the Company shall immediately appoint a new transfer agent and shall require that the new transfer agent execute and agree to be bound by the terms of the Irrevocable Transfer Agent Instructions (as defined herein).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Restriction on Issuance of the Capital Stock</u>. So long as the Promissory Note is outstanding, the Company shall not, without the prior written consent of the Investor, which shall not be unreasonably withheld, delayed, denied, or conditioned, (i) issue or sell shares of Common Stock or Preferred Stock without consideration or for a consideration per share less than the bid price of the Common Stock determined immediately prior to its issuance, (ii) issue any preferred stock, warrant, option, right, contract, call, or other security or instrument granting the holder thereof the right to acquire Common Stock without consideration or for a consideration less than such Common Stock's Bid Price, as quoted by Bloomberg, LP (through its "Volume at Price" function) and determined immediately prior to its issuance, (iii) enter into any security instrument granting the holder a security interest in any and all assets of the Company, or (iv) file any registration statement on Form S-8 or issue or sell any shares of Common Stock pursuant to Rule 701.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>No Short Positions</u>. Neither the Investor nor any of its affiliates has an open short position in the Common Stock of the Company, and the Investor agrees that it shall not, and that it will cause its affiliates not to, engage in any short sales of or hedging transactions with respect to the Common Stock as long as the Promissory Note remains outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Reserved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) Reserved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) <u>Review of Public Disclosures</u>. All Regulatory Disclosure Documents (including, without limitation, all filings required under the Exchange Act, which include Forms 10-Q, 10-K, 8-K, etc.) and other public disclosures made by the Company, including, without limitation, all press releases, investor relations materials, and scripts of analysts meetings and calls, shall be reviewed and approved for release by the Company's attorneys and, if containing financial information, the Company's independent certified public accountants.

6. <u>TRANSFER AGENT INSTRUCTIONS</u>.

The Company shall issue the Irrevocable Transfer Agent Instructions to its transfer agent in a form acceptable to the Investor.

7. <u>CONDITIONS TO THE COMPANY'S OBLIGATION TO SELL</u>.

The obligation of the Company hereunder to issue and sell the Promissory Note to the Investor at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions, provided that these conditions are for the Company's sole benefit and may be waived by the Company at any time in its sole discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Investor shall have executed the Transaction Documents and delivered them to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Investor shall have delivered to the Company the Promissory Note Purchase Price, minus any fees to be paid directly from the proceeds of the Closing as set forth herein, by wire transfer of immediately available U.S. funds pursuant to the wire instructions provided by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The representations and warranties of the Investor shall be true and correct in all material respects as of the date when made and as of the Closing Date as though made at that time (except for representations and warranties that speak as of a specific date), and the Investor shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Investor at or prior to the Closing Date.

8. <u>CONDITIONS TO THE INVESTOR'S OBLIGATION TO PURCHASE</u>.

The obligation of the Investor hereunder to purchase the Promissory Note at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions, provided that these conditions are for the Investor's sole benefit and may be waived by the Investor at any time in its sole discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company, and the Company's Transfer Agent, as applicable, shall have executed the Transaction Documents and delivered the same to the Investor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Common Stock shall be authorized for quotation or trading on the Primary Market, and trading in the Common Stock shall not have been suspended for any reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The representations and warranties of the Company shall be true and correct in all material respects (except to the extent that any of such representations and warranties is already qualified as to materiality in Section 5 above, in which case, such representations and warranties shall be true and correct without further qualification) as of the date when made and as of the Closing Date as though made at that time (except for representations and warranties that speak as of a specific date) and the Company shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Company at or prior to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company shall have executed and delivered to the Investor the Promissory Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Company shall have created the Share Reserve and issued the fifteen million five hundred thousand (15,500,000) commitment shares.<sup>[2]</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Common Stock shall be authorized for quotation or trading on the Primary Market and trading in the Common Stock shall not have been suspended for any reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The representations and warranties of the Company shall be true and correct in all material respects (except to the extent that any of such representations and warranties is already qualified as to materiality in Section 5 above, in which case, such representations and warranties shall be true and correct without further qualification) as of the date when made as though made at that time (except for representations and warranties that speak as of a specific date).

9. <u>INDEMNIFICATION</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In consideration of the Investor's execution and delivery of this Agreement and acquiring the Promissory Note and the shares of Conversion Stock upon conversion of the Promissory Note and in addition to all of the Company's other obligations under this Agreement, the Company shall defend, protect, indemnify and hold harmless the Investor, and all of their officers, directors, employees and agents (including, without limitation, those retained in connection with the transactions contemplated by this Agreement) (collectively, the "<u>Investor Indemnitees</u>") from and against any and all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection therewith (irrespective of whether any such Investor Indemnitee is a party to the action for which indemnification hereunder is sought), and including reasonable attorneys' fees and disbursements (the "<u>Indemnified Liabilities</u>"), incurred by the Investor Indemnitees or any of them as a result of, or arising out of, or relating to (a) any misrepresentation or breach of any representation or warranty made by the Company in this Agreement, the Promissory Note or the other Transaction Documents or any other certificate, instrument or document contemplated hereby or thereby, (b) any breach of any covenant, agreement or obligation of the Company contained in this Agreement, or the other Transaction Documents or any other certificate, instrument or document contemplated hereby or thereby, or (c) any cause of action, suit or claim brought or made against such Investor Indemnitee and arising out of or resulting from the execution, delivery, performance or enforcement of this Agreement or any other instrument, document or agreement executed pursuant hereto by any of the parties hereto, any transaction financed or to be financed in whole or in part, directly or indirectly, with the proceeds of the issuance of the Promissory Note or the status of the Investor or holder of the Promissory Note or the shares of Conversion Stock, as an Investor of Promissory Note in the Company. To the extent that the foregoing undertaking by the Company may be unenforceable for any reason, the Company shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities, which is permissible under applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In consideration of the Company's execution and delivery of this Agreement, and in addition to all of the Investor's other obligations under this Agreement, the Investor shall defend, protect, indemnify and hold harmless the Company and all of its officers, directors, employees and agents (including, without limitation, those retained in connection with the transactions contemplated by this Agreement) (collectively, the "<u>Company Indemnitees</u>") from and against any and all Indemnified Liabilities incurred by the Indemnitees or any of them as a result of, or arising out of, or relating to (a) any misrepresentation or breach of any representation or warranty made by the Investor(s) in this Agreement, instrument or document contemplated hereby or thereby executed by the Investor, (b) any breach of any covenant, agreement or obligation of the Investor(s) contained in this Agreement, the Transaction Documents or any other certificate, instrument or document contemplated hereby or thereby executed by the Investor, or (c) any cause of action, suit or claim brought or made against such Company Indemnitee based on material misrepresentations or due to a material breach and arising out of or resulting from the execution, delivery, performance or enforcement of this Agreement, the Transaction Documents or any other instrument, document or agreement executed pursuant hereto by any of the parties hereto. To the extent that the foregoing undertaking by the Investor may be unenforceable for any reason, the Investor shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities, which is permissible under applicable law.

10. <u>COMPANY LIABILITY</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall be liable for all debt, principal, interest, and other amounts owed to the Investor by Company pursuant to this Agreement, the Transaction Documents, or any other agreement, whether absolute or contingent, due or to become due, now existing or hereafter arising (the "<u>Obligations</u>") and the Investor may proceed against the Company to enforce the Obligations without waiving its right to proceed against any other party. This Agreement and the Promissory Note are a primary and original obligation of the Company and shall remain in effect notwithstanding future changes in conditions, including any change of law or any invalidity or irregularity in the creation or acquisition of any Obligations or in the execution or delivery of any agreement between the Investor and the Company. The Company shall be liable for existing and future Obligations as fully as if all of the funds advanced by the Investor hereunder were advanced to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding any other provision of this Agreement or any other Transaction Documents the Company irrevocably waives, until all obligations are paid in full, all rights that it may have at law or in equity (including, without limitation, any law subrogating the Company to the rights of Investor under the Transaction Documents) to seek contribution, indemnification, or any other form of reimbursement from the Company, or any other person now or hereafter primarily or secondarily liable for any of the Obligations, for any payment made by the Company with respect to the Obligations in connection with the Transaction Documents or otherwise and all rights that it might have to benefit from, or to participate in, any security for the Obligations as a result of any payment made by the Company with respect to the Obligations in connection with the Transaction Documents or otherwise. Any agreement providing for indemnification, reimbursement or any other arrangement prohibited under this Section shall be null and void. If any payment is made to the Company in contravention of this Section, the Company shall hold such payment in trust for the Investor and such payment shall be promptly delivered to the Investor for application to the Obligations, whether matured or unmatured.

11. GOVERNING LAW; MISCELLANEOUS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Governing Law; Mandatory Jurisdiction; Jury Trial Waiver</u>. All questions concerning the construction, validity, enforcement, and interpretation of this Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of Delaware, without regard to the principles of conflict of laws thereof. Each party agrees that all legal proceedings concerning the interpretation, enforcement, and defense of the transactions contemplated by this Agreement (whether brought against a party hereto or its respective Affiliates, directors, officers, stockholders, employees, or agents) shall be commenced in the state and federal courts sitting in the City of Wilmington (the "<u>Delaware Courts</u>"). Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the Delaware Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of this Agreement), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such Delaware Courts, or such Delaware Courts are improper or inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it hereunder and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by applicable law. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby. If any party shall commence an action or proceeding to enforce any provisions of this Agreement, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorneys' fees and other costs and expenses incurred in the investigation, preparation, and prosecution of such action or proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Counterparts</u>. This Agreement may be executed in 2 or more identical counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and physically or electronically delivered to the other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Usury</u>. To the extent it may lawfully do so, the Company hereby agrees not to insist upon or plead or in any manner whatsoever claim, and will resist any and all efforts to be compelled to take the benefit or advantage of, usury laws wherever enacted, now or at any time hereafter in force, in connection with any claim, action or proceeding that may be brought by the Investor in order to enforce any right or remedy under any Transaction Document. Notwithstanding any provision to the contrary contained in any Transaction Document, it is expressly agreed and provided that the total liability of the Company under the Transaction Documents for payments in the nature of interest shall not exceed the maximum lawful rate authorized under applicable law (the "<u>Maximum Rate</u>"), and, without limiting the foregoing, in no event shall any rate of interest or default interest, or both of them, when aggregated with any other sums in the nature of interest that the Company may be obligated to pay under the Transaction Documents exceed such Maximum Rate. It is agreed that if the maximum contract rate of interest allowed by law and applicable to the Transaction Documents is increased or decreased by statute or any official governmental action subsequent to the date hereof, the new maximum contract rate of interest allowed by law will be the Maximum Rate applicable to the Transaction Documents from the effective date thereof forward, unless such application is precluded by applicable law. If under any circumstances whatsoever, interest in excess of the Maximum Rate is paid by the Company to the Investor with respect to indebtedness evidenced by the Transaction Documents, such excess shall be applied by the Investor to the unpaid principal balance of any such indebtedness or be refunded to the Company, the manner of handling such excess to be at the Investor's election.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Headings</u>. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Severability</u>. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of this Agreement in any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Entire Agreement, Amendments</u>. This Agreement supersedes all other prior oral or written agreements between the Investor, the Company, their affiliates and persons acting on their behalf with respect to the matters discussed herein, and this Agreement and the instruments referenced herein contain the entire understanding of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company nor any Investor makes any representation, warranty, covenant or undertaking with respect to such matters. No provision of this Agreement may be waived or amended other than by an instrument in writing signed by the party to be charged with enforcement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Notices</u>. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have been delivered upon: (i) receipt, when delivered personally, (ii) 1 Business Day after deposit with an overnight courier service with next day delivery specified, in each case, properly addressed to the party to receive the same, or (iii) receipt, when sent by electronic mail (provided that the electronic mail transmission is not returned in error or the sender is not otherwise notified of any error in transmission. The addresses and e-mail addresses for such communications shall be:

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| |
|:---|
| &nbsp;&nbsp;If to the Company: |
| &nbsp;&nbsp;With a mandatory copy that shall not constitute notice: &nbsp;&nbsp;Lucosky Brookman LLP<br> 101 Wood Avenue South, 5<sup>th</sup> Floor<br> Woodbridge, New Jersey 08830<br> Attention: Joseph M. Lucosky<br> Telephone: 732-395-4402<br> E-mail: jlucosky@lucbro.com<br>|
| &nbsp;&nbsp;If to the Investor: |

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With a mandatory copy that shall not constitute notice: Clark Hill LLP 55 South Flower Steet, 24<sup>th</sup> Floor Los Angeles, California 90071 Attention: Randy Katz Telephone: 213-417-5310 E-mail: rkatz@clarkhill.com

or at such other address and/or electronic e-mail address and/or to the attention of such other person as the recipient party has specified by written notice given to each other party 3 Business Days prior to the effectiveness of such change. Written confirmation of receipt (i) given by the recipient of such notice, consent, waiver or other communication, (ii) mechanically or electronically generated by the sender's computer containing the time, date, recipient's electronic mail address and the text of such electronic mail, or (iii) provided by a nationally recognized overnight delivery service, shall be rebuttable evidence of personal service, receipt by electronic mail or receipt from a nationally recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Successors and Assigns</u>. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns. Neither the Company nor any Investor shall assign this Agreement or any rights or obligations hereunder without the prior written consent of the other party hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>No Third-Party Beneficiaries</u>. This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Survival</u>. Unless this Agreement is terminated under Section 11(f), all agreements, representations, and warranties contained in this Agreement or made in writing by or on behalf of any party in connection with the transactions contemplated by this Agreement shall survive the execution and delivery of this Agreement and the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Publicity</u>. The Company and the Investor shall have the right to approve, before issuance any press release or any other public statement with respect to the transactions contemplated hereby made by any party; provided, however, that the Company shall be entitled, without the prior approval of the Investor, to issue any press release or other public disclosure with respect to such transactions required under applicable securities or other laws or regulations (the Company shall use its best efforts to consult the Investor in connection with any such press release or other public disclosure prior to its release and Investor shall be provided with a copy thereof upon release thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Further Assurances</u>. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments, and documents, as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Termination</u>. In the event that the Closing shall not have occurred on or before 5<sup>th</sup> business days from the date hereof due to the Company's or the Investor's failure to satisfy the conditions set forth in Sections 7 and 8 above (and the non-breaching party's failure to waive such unsatisfied condition(s)), the non-breaching party shall have the option to terminate this Agreement with respect to such breaching party at the close of business on such date without liability of any party to any other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Brokerage</u>. The Company represents that no broker, agent, finder, or other party has been retained by it in connection with the transactions contemplated hereby and that no other fee or commission has been agreed by the Company to be paid for or on account of the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>No Strict Construction</u>. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party.

**[REMAINDER PAGE INTENTIONALLY LEFT BLANK]**

**IN WITNESS WHEREOF***,* each of the Investor and the Company has affixed its respective signature to this Securities Purchase Agreement as of the date first written above.

**CLEAN VISION CORPORATION**

By:

Name: Dan Bates

Title: President

**COVENTRY ENTERPRISES, LLC**

By: <br> Name: Jack Bodenstein

Title: Managing Member

------

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| | |
|:---|:---|
| <sup>[1]</sup> | As noted in Section 2(a) of the Registration Rights Agreement, of even date herewith between the Company and the Holder, if the Company files its initial Registration Statement within forty-five (45) calendar days from the date of this Note, then the Holder, pursuant to its mandatory obligations thereunder, shall, within ten (10) calendar days thereafter, return to the Company's treasury for cancellation twelve million five hundred thousand (12500000) shares. |

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| | |
|:---|:---|
| <sup>[2]</sup> | As noted in Section 2(a) of the Registration Rights Agreement, of even date herewith between the Company and the Holder, if the Company files its initial Registration Statement within forty-five (45) calendar days from the date of this Note, then the Holder, pursuant to its mandatory obligations thereunder, shall, within ten (10) calendar days thereafter, return to the Company's treasury for cancellation twelve million five hundred thousand (12500000) shares. |

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## Exhibit 10.8

**Exhibit 10.8** 

**REGISTRATION RIGHTS AGREEMENT**

**THIS REGISTRATION RIGHTS AGREEMENT** (this "<u>Agreement</u>"), dated as of December 9, 2022, by and between Clean Vision Corporation, a Nevada corporation (the "<u>Company</u>"), and Coventry Enterprises, LLC, a Delaware limited liability company (together with it permitted assigns, the "<u>Investor</u>") (the Company and Investor, each a "<u>Party</u>"; and, together, the "<u>Parties</u>"). Capitalized terms used herein and not otherwise defined herein shall have the respective meanings set forth in that certain Securities Purchase Agreement by and between the Parties, dated as of the date hereof (as amended, restated, supplemented, or otherwise modified from time to time, the "<u>Purchase Agreement</u>").

**<u>WITNESSETH</u>**

**WHEREAS,** in consideration of the transactions contemplated by the Purchase Agreement, that certain 5% Promissory Note of the Company in favor of the Investor with an original issue date as of the date hereof (the "<u>Note</u>"), and the issuance by the Company to the Investor of fifteen million five hundred thousand (15,500,000) shares of the Company's common stock, $0.001 par value per share (the "<u>Common Stock</u>"), in connection therewith (collectively, the "<u>Commitment Stock</u>")<sup>[1]</sup>, and to induce the Investor to enter into the Purchase Agreement and to lend the funds to the Company as memorialized by the Note, the Company has agreed to provide to Investor certain registration rights under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute (collectively, the "<u>Securities Act</u>"), and any applicable state securities laws. This Agreement sets forth the terms and conditions agreed upon by the Parties of such registration rights.

**NOW, THEREFORE**, in consideration of the promises and the mutual covenants contained herein and in the Purchase Agreement, and for such other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Company and the Investor hereby agree as follows:

1. <u>Definitions</u>.
 As used in this Agreement, the following terms shall have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;(a) " <u>Investor</u> "
 means Coventry Enterprises, LLC, as defined above, including any transferee or assignee thereof
 to whom an Investor assigns its rights under this Agreement in accordance with Section 8
 hereof, and who agrees to become bound by the provisions of this Agreement, and any transferee
 or assignee thereof to whom a transferee or assignee subsequently assigns its rights under
 this Agreement in accordance with Section 8 hereof, and who agrees to become bound by the
 provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;(b) " <u>Person</u> "
 means any individual or entity including, but not limited to, any corporation, a limited
 liability company, an association, a partnership, an organization, a business, an individual,
 a governmental or political subdivision thereof or a governmental agency.

&nbsp;&nbsp;&nbsp;&nbsp;(c) " <u>Register</u> ",
 " <u>registered</u> ", and " <u>registration</u> " refer to a registration
 effected by preparing and filing one or more registration statements of the Company in compliance
 with the Securities Act and/or pursuant to Rule 415 under the Securities Act or any successor
 rule providing for offering securities on a continuous basis (" <u>Rule 415</u> "),
 and the declaration or ordering of effectiveness
of such registration statement(s) by the United States Securities and Exchange Commission (the " <u>SEC</u> ").

&nbsp;&nbsp;&nbsp;&nbsp;(d) " <u>Registrable Securities</u> " means (a) the shares of Commitment Stock, (b) the shares of Conversion
 Stock, and (c) any shares of Common Stock issued to the Investor as a result of any stock
 split, stock dividend, recapitalization, exchange, or similar event.

&nbsp;&nbsp;&nbsp;&nbsp;(e) " <u>Registration Statement</u> " means one or more registration statements of the Company covering only
 the sale of the Registrable Securities.

2. <u>Registration</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Mandatory Registration</u>. The Company shall, within forty-five (45) calendar days from the date hereof,
 file with the SEC an initial Registration Statement covering the maximum number of Registrable
 Securities (beginning with the shares of Commitment Stock) as shall be permitted to be included
 thereon in accordance with applicable SEC rules, regulations, and interpretations so as to
 permit the resale of such Registrable Securities by the Investor, including, but not limited
 to, under Rule 415 under the Securities Act at then-prevailing market prices (and not fixed
 prices), as mutually determined by both the Company and the Investor in consultation with
 their respective legal counsel, not to exceed the aggregate number of authorized shares of
 the Company's Common Stock then available for issuance in its Articles of Incorporation
 at the time such Registration Statement is filed. The initial Registration Statement shall
 register only the Registrable Securities. The Investor and its counsel shall have a reasonable
 opportunity to review and comment upon such Registration Statement and any amendment or supplement
 to such Registration Statement and any related prospectus prior to its filing with or submission
 to the SEC, and the Company shall consider any reasonable recommendations. The Investor shall
 promptly furnish all information reasonably requested by the Company for inclusion therein.
 The Company shall use commercially reasonable efforts to have the initial Registration Statement
 and any amendment declared effective by the SEC as soon as practicable. The Company shall
 use commercially reasonable efforts to maintain the effective status of the Registration
 Statement, including, but not limited, to requirements under Rule 415 promulgated under the
 Securities Act and available for the resale by the Investor of all of the Registrable Securities
 covered thereby at all times until the earlier of (i) the date as of which the Investor may
 sell all of the Registrable Securities without restriction pursuant to Rule 144 promulgated
 under the Securities and (ii) the date on which the Investor shall have sold all the Registrable
 Securities covered thereby and no securities remain available under the Purchase Agreement
 (the " <u>Registration Period</u> "). The Company shall use commercially reasonable
 efforts in preparing the Registration Statement (including any amendments or supplements
 thereto and prospectuses contained therein) in order for the Registration Statement not to
 contain any untrue statement of a material fact or omit to state a material fact required
 to be stated therein, or necessary to make the statements therein, in light of the circumstances
 in which they were made, not misleading.

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Rule 424 Prospectus</u>. The Company shall, as required by applicable securities regulations,
 from time-to-time file with the SEC, pursuant to Rule 424 promulgated under the Securities
 Act, the prospectus and prospectus supplements, if any, to be used in connection with sales
 of the Registrable Securities under the Registration Statement. The Investor and its counsel
 shall have a reasonable opportunity to review and comment upon such prospectus prior to its
 filing with or submission to the SEC, and the Company shall give due consideration to all
 such comments and/or reasonable recommendations. The Investor shall use commercially reasonable
efforts to comment upon such prospectus within one (1) Business Day from the date the Investor receives the final pre-filing version
of such prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Sufficient Number of Shares Registered</u>. In the event the number of shares available under the Registration
 Statement is insufficient to cover all of the Registrable Securities, the Company shall amend
 the Registration Statement or file a new Registration Statement (a " <u>New Registration Statement</u> "), so as to cover all of such Registrable Securities (subject to the
 limitations set forth in Section 2(a)) as soon as practicable, but in any event not later
 than ten (10) Business Days after the necessity therefor arises, subject to any limits that
 may be imposed by the SEC pursuant to Rule 415 under the Securities Act. The Company shall
 use its commercially reasonable efforts to cause such amendment and/or New Registration Statement
 to become effective as soon as practicable following the filing thereof. Unless the Registration
 Period has ended, in the event that any of the Registrable Securities are not included in
 the Registration Statement, or have not been included in any New Registration Statement and
 the Company files any other registration statement under the Securities Act (other than on
 Form S-4, Form S-8, or with respect to other employee related plans or rights offerings)
 (" <u>Other Registration Statement</u> ") then the Company shall include in such
 Other Registration Statement first all of any Registrable Securities that have not been previously
 registered, and second any other securities the Company wishes to include in such Other Registration
 Statement. Unless the Registration Period has ended, the Company agrees that it shall not
 file any such Other Registration Statement unless all of the Registrable Securities have
 been included in such Other Registration Statement or otherwise have been registered for
 resale as described above.

&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Offering</u>.
 If the staff of the SEC (the " <u>Staff'</u>) or the SEC seeks to characterize
 any offering pursuant to a Registration Statement filed pursuant to this Agreement as constituting
 an offering of securities that does not permit such Registration Statement to become effective
 and be used for resales by the Investor under Rule 415 at then-prevailing market prices (and
 not fixed prices), or if after the filing of the initial Registration Statement with the
 SEC pursuant to Section 2(a), the Company is otherwise required by the Staff or the SEC to
 reduce the number of Registrable Securities included in such initial Registration Statement,
 then the Company shall reduce the number of Registrable Securities to be included in such
 initial Registration Statement (with the prior consent, which shall not be unreasonably withheld,
 delayed, denied, or conditioned, of the Investor and its legal counsel as to the specific
 Registrable Securities to be removed therefrom) until such time as the Staff and the SEC
 shall so permit such Registration Statement to become effective and be used as aforesaid.
 Unless the Registration Period has ended, in the event of any reduction in Registrable Securities
 pursuant to this paragraph, the Company shall file one or more New Registration Statements
 in accordance with Section 2(c) until such time as all Registrable Securities have been included
 in Registration Statements that have been declared effective and the prospectus contained
 in each is available for use by the Investor. Notwithstanding any provision herein or in
 the Purchase Agreement to the contrary, the Company's obligations to register Registrable
 Securities (and any related conditions to the Investor's obligations) shall be qualified
 as necessary to comport with any requirement of the SEC or the Staff as addressed in this
 Section 2(d).

3. <u>Related Obligations</u>. With respect to the Registration Statement and whenever any Registrable
 Securities are to be registered pursuant to Section 2 including on any New Registration Statement,
 the Company shall use its commercially reasonable efforts to affect the registration of the
 Registrable Securities in accordance with the intended method of disposition thereof and,
 pursuant thereto, the Company shall have the following obligations:

&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Company shall prepare and file with the SEC such amendments (including post-effective amendments)
 and supplements to any registration statement and the prospectus used in connection with
 such registration statement, which prospectus is to be filed pursuant to Rule 424 promulgated
 under the Securities Act, as may be necessary to keep the Registration Statement or any New
 Registration Statement effective at all times during the Registration Period, and, during
 such period, comply with the provisions of the Securities Act with respect to the disposition
 of all Registrable Securities of the Company covered by the Registration Statement or any
 New Registration Statement until such time as all of such Registrable Securities shall have
 been disposed of in accordance with the intended methods of disposition by the seller or
 sellers thereof as set forth in such registration statement.

&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Company shall permit the Investor to review and comment upon the Registration Statement or
 any New Registration Statement and all amendments and supplements thereto at least two (2)
 Business Days prior to their filing with the SEC, and not file any document in a form to
 which Investor reasonably objects. The Investor shall use its commercially reasonable efforts
 to comment upon the Registration Statement or any New Registration Statement and any amendments
 or supplements thereto within two (2) Business Days from the date on which the Investor receives
 the final version thereof. The Company shall furnish to the Investor, without charge any
 correspondence from the SEC or the staff of the SEC to the Company or its representatives
 relating to the Registration Statement or any New Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon
 request of the Investor, the Company shall furnish to the Investor, (i) promptly after the
 same is prepared and filed with the SEC, at least one copy of such registration statement
 and any amendment(s) thereto, including financial statements and schedules, all documents
 incorporated therein by reference and all exhibits, (ii) upon the effectiveness of any registration
 statement, a copy of the prospectus included in such registration statement and all amendments
 and supplements thereto (or such other number of copies as the Investor may reasonably request),
 and (iii) such other documents, including copies of any preliminary or final prospectus,
 as the Investor may reasonably request from time to time in order to facilitate the disposition
 of the Registrable Securities owned by the Investor. For the avoidance of doubt, any filing
 available to the Investor via the SEC's live EDGAR system shall be deemed "furnished
 to the Investor" hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;(d) The
 Company shall use commercially reasonable efforts to (i) register and qualify the Registrable
 Securities covered by a registration statement under such other securities or "blue
 sky" laws of any state in which such registration would be required, (ii) prepare and
 file in those jurisdictions, such amendments (including post-effective amendments) and supplements
 to such registrations and qualifications as may be necessary to maintain the effectiveness
 thereof during the Registration Period, (iii) take such other actions as may be necessary
 to maintain such registrations and qualifications in effect at all times during the Registration
 Period, and (iv) take all other actions reasonably necessary or advisable to qualify the
 Registrable Securities for sale in such jurisdictions; <u>provided</u>, <u>however</u>, that
 the Company shall not be required in connection therewith or as a condition thereto to (x)
 qualify to do business in any jurisdiction where it would not otherwise be required to qualify
 but for this Section 3(d),
(y) subject itself to general taxation in any such jurisdiction, or (z) file a general consent to service of process in any such jurisdiction.
The Company shall promptly notify the Investor who holds Registrable Securities of the receipt by the Company of any notification with
respect to the suspension of the registration or qualification of any of the Registrable Securities for sale under the securities or
"blue sky" laws of any state in which such registration would be required or its receipt of actual notice of the initiation
or threatening of any proceeding for such purpose.

&nbsp;&nbsp;&nbsp;&nbsp;(e) As
 promptly as practicable after becoming aware of such event or facts, the Company shall notify
 the Investor in writing of the happening of any event or existence of such facts as a result
 of which the prospectus included in any registration statement, as then in effect, includes
 an untrue statement of a material fact or omits to state a material fact required to be stated
 therein or necessary to make the statements therein, in light of the circumstances under
 which they were made, not misleading, and promptly prepare a supplement or amendment to such
 registration statement to correct such untrue statement or omission, and deliver a copy of
 such supplement or amendment to the Investor (or such other number of copies as the Investor
 may reasonably request). The Company shall also promptly notify the Investor in writing (i) when
 a prospectus or any prospectus supplement or post-effective amendment has been filed, and
 when a registration statement or any post-effective amendment has become effective (notification
 of such effectiveness shall be delivered to the Investor by email or facsimile on the same
 day of such effectiveness and by overnight mail), (ii) of any request by the SEC for amendments
 or supplements to any registration statement or related prospectus or related information,
 and (iii) of the Company's reasonable determination that a post-effective amendment
 to a registration statement would be appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;(f) The
 Company shall use its commercially reasonable efforts to prevent the issuance of any stop
 order or other suspension of effectiveness of any registration statement, or the suspension
 of the qualification of any Registrable Securities for sale in any jurisdiction and, if such
 an order or suspension is issued, to obtain the withdrawal of such order or suspension at
 the earliest possible moment and to notify the Investor of the issuance of such order and
 the resolution thereof or its receipt of actual notice of the initiation or threat of any
 proceeding for such purpose.

&nbsp;&nbsp;&nbsp;&nbsp;(g) The
 Company shall (i) cause all the Registrable Securities to be listed on each securities exchange
 on which securities of the same class or series issued by the Company are then listed, if
 any, if the listing of such Registrable Securities is then permitted under the rules of such
 exchange or (ii) secure designation and quotation of all the Registrable Securities on the
 Principal Market. The Company shall pay all fees and expenses in connection with satisfying
 its obligation under this Section 3.

&nbsp;&nbsp;&nbsp;&nbsp;(h) The
 Company shall cooperate with the Investor to facilitate the timely preparation and delivery
 of certificates (not bearing any restrictive legend) representing the Registrable Securities
 to be offered pursuant to any registration statement and enable such certificates to be in
 such denominations or amounts as the Investor may reasonably request and registered in such
 names as the Investor may request.

&nbsp;&nbsp;&nbsp;&nbsp;(i) The
 Company shall at all times provide a transfer agent and registrar with respect to its Common
 Stock.

&nbsp;&nbsp;&nbsp;&nbsp;(j) If
 reasonably requested by the Investor, the Company shall (i) immediately incorporate in a
 prospectus supplement or post-effective amendment such information as the Investor believes
should be included therein relating to the sale and distribution of Registrable Securities, including, without limitation, information
with respect to the number of Registrable Securities being sold, the purchase price being paid therefor and any other terms of the offering
of the Registrable Securities; (ii) make all required filings of such prospectus supplement or post-effective amendment as soon as practicable
upon notification of the matters to be incorporated in such prospectus supplement or post-effective amendment; and (iii) supplement or
make amendments to any registration statement.

&nbsp;&nbsp;&nbsp;&nbsp;(k) The
 Company shall use its commercially reasonable efforts to cause the Registrable Securities
 covered by any registration statement to be registered with or approved by such other governmental
 agencies or authorities as may be necessary to consummate the disposition of such Registrable
 Securities.

&nbsp;&nbsp;&nbsp;&nbsp;(l) Within
 three (3) Business Days after any registration statement which includes the Registrable Securities
 is ordered effective by the SEC, the Company shall deliver, and shall cause legal counsel
 for the Company to deliver, to the transfer agent for such Registrable Securities (with copies
 to the Investor) confirmation that such registration statement has been declared effective
 by the SEC in the form attached hereto as Exhibit A. Thereafter, if requested by the Investor
 at any time, the Company shall require its counsel to deliver to the Investor a written confirmation
 whether or not the effectiveness of such registration statement has lapsed at any time for
 any reason (including, without limitation, the issuance of a stop order) and whether or not
 the registration statement is current and available to the Investor for sale of all of the
 Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;(m) The
 Company shall take all other reasonable actions necessary to expedite and facilitate disposition
 by the Investor of Registrable Securities pursuant to any registration statement.

4. <u>Obligations of the Investor</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Company shall notify the Investor in writing of the information the Company reasonably requires
 from the Investor in connection with any registration statement hereunder. The Investor shall
 furnish to the Company such information regarding itself, the Registrable Securities held
 by it and the intended method of disposition of the Registrable Securities held by it as
 shall be reasonably required to affect the registration of such Registrable Securities and
 shall execute such documents in connection with such registration as the Company may reasonably
 request.

&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Investor agrees to cooperate with the Company as reasonably requested by the Company in connection
 with the preparation and filing of any registration statement hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 Investor agrees that, upon receipt of any notice from the Company of the happening of any
 event or existence of facts of the kind described in Section 3(f) or the first sentence of
 Section 3(e), the Investor will immediately discontinue disposition of Registrable Securities
 pursuant to any registration statement(s) covering such Registrable Securities until the
 Investor's receipt of the copies of the supplemented or amended prospectus contemplated
 by Section 3(f) or the first sentence of Section 3(e). Notwithstanding anything to the contrary,
 the Company shall cause its transfer agent to promptly deliver shares of Common Stock without
 any restrictive legend in accordance with the terms of the Purchase Agreement in connection
 with any sale of Registrable Securities with respect to which an Investor has entered into
 a contract for sale prior to the Investor's receipt of a notice from the Company of
 the happening of any event of the kind described in Section 3(f) or the first sentence of Section
3(e) and for which the Investor has not yet settled. If, by virtue of such an event or existence of facts, the Investor, such Registration
Statement ceases for any reason to remain continuously effective as to all Registrable Securities included in such Registration Statement,
or the Investor is otherwise not permitted to utilize the Prospectus therein to resell such Registrable Securities, for more than ten
(10) consecutive calendar days or more than an aggregate of fifteen (15) calendar days (which need not be consecutive calendar days)
during any twelve (12)-month period (any such failure or breach being referred to as an " <u>Event</u> ", and each such tenth
or fifteenth day being referred to as an " <u>Event Date</u> "), then, in addition to any other rights the Investor may have
hereunder or under applicable law, on each such Event Date and on each monthly anniversary of each such Event Date (if the applicable
Event shall not have been cured by such date) until the applicable Event is cured, the Company shall pay to the Investor an amount in
cash, as partial liquidated damages and not as a penalty, equal to the product of 2.0% multiplied by the aggregate amount paid by such
Holder pursuant to the Note. If the Company fails to pay any partial liquidated damages pursuant to this Section in full within seven
(7) days after the date payable, the Company will pay interest thereon at a rate of 18% per annum (or such lesser maximum amount that
is permitted to be paid by applicable law) to the Holder, accruing daily from the date such partial liquidated damages are due until
such amounts, plus all such interest thereon, are paid in full. The partial liquidated damages pursuant to the terms hereof shall apply
on a daily pro rata basis for any portion of a month prior to the cure of an Event.

5. <u>Expenses of Registration</u>. All reasonable expenses, other than sales or brokerage commissions,
 incurred in connection with registrations, filings, or qualifications pursuant to Sections
 2 and 3, including, without limitation, all registration, listing and qualifications fees,
 printers and accounting fees, and fees and disbursements of counsel for the Company, shall
 be paid by the Company.

6. <u>Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>By the Company</u>: To the fullest extent permitted by law, the Company will, and hereby does,
 indemnify, hold harmless, and defend the Investor, each Person, if any, who controls the
 Investor, the members, the directors, officers, partners, employees, agents, and representatives
 of the Investor and each Person, if any, who controls the Investor within the meaning of
 the Securities Act or the Securities Exchange Act of 1934, as amended (the " <u>Exchange Act</u> ") (each, an " <u>Investor Indemnified Person</u> "), against any
 losses, claims, damages, liabilities, judgments, fines, penalties, charges, costs, attorneys'
 fees, amounts paid in settlement, or expenses, joint or several (collectively, " <u>Claims</u> "),
 incurred in investigating, preparing, or defending any action, claim, suit, inquiry, proceeding,
 investigation or appeal taken from the foregoing by or before any court or governmental,
 administrative, or other regulatory agency, body, or the SEC, whether pending or threatened,
 whether or not an indemnified party is or may be a party thereto (" <u>Indemnified Damages</u> "),
 to which any of them may become subject, insofar as such Claims (or actions or proceedings,
 whether commenced or threatened, in respect thereof) arise out of or are based upon: (i)
 any untrue statement or alleged untrue statement of a material fact in the Registration Statement,
 any New Registration Statement, or any post-effective amendment thereto or in any filing
 made in connection with the qualification of the offering under the securities or other "blue
 sky" laws of any jurisdiction in which Registrable Securities are offered (" <u>Blue Sky Filing</u> "), or the omission or alleged omission to state a material fact required
 to be stated therein or necessary to make the statements therein not misleading, (ii) any
 untrue statement or alleged untrue statement of a material fact contained in the final prospectus
 (as amended or supplemented, if the Company files any amendment thereof or supplement thereto
 with the SEC) or the omission or alleged omission to state therein any material fact necessary
 to make the statements made therein, in light of the circumstances under
which the statements therein were made, not misleading, (iii) any violation or alleged violation by the Company of the Securities Act,
the Exchange Act, any other law, including, without limitation, any state securities law, or any rule or regulation thereunder relating
to the offer or sale of the Registrable Securities pursuant to the Registration Statement or any New Registration Statement, or (iv)
any material violation by the Company of this Agreement (the matters in the foregoing clauses (i) through (iv) being, collectively, " <u>Violations</u> ").
The Company shall reimburse each Investor Indemnified Person promptly as such expenses are incurred and are due and payable, for any
reasonable legal fees or other reasonable expenses incurred by them in connection with investigating or defending any such Claim. Notwithstanding
anything to the contrary contained herein, the indemnification agreement contained in this Section 6(a): (i) shall not apply to a Claim
by an Investor Indemnified Person arising out of or based upon a Violation that occurs in reliance upon and in conformity with information
about the Investor furnished in writing to the Company by such Investor Indemnified Person expressly for use in connection with the preparation
of the Registration Statement, any New Registration Statement, or any such amendment thereof or supplement thereto, if such prospectus
were timely made available by the Company pursuant to Section 3(c) or Section 3(e); (ii) with respect to any superseded prospectus, shall
not inure to the benefit of any such person from whom the person asserting any such Claim purchased the Registrable Securities that are
the subject thereof (or to the benefit of any person controlling such person) if the untrue statement or omission of material fact contained
in the superseded prospectus was corrected in the revised prospectus, as then amended or supplemented, if such revised prospectus was
timely made available by the Company pursuant to Section 3(c) or Section 3(e), and the Investor Indemnified Person was promptly advised
in writing not to use the incorrect prospectus prior to the use giving rise to a violation and such Investor Indemnified Person, notwithstanding
such advice, used it; (iii) shall not be available to the extent such Claim is based on a failure of the Investor to deliver or to cause
to be delivered the prospectus made available by the Company, if such prospectus was timely made available by the Company pursuant to
Section 3(c) or Section 3(e); and (iv) shall not apply to amounts paid in settlement of any Claim if such settlement is effected without
the prior written consent of the Company, which consent shall not be unreasonably withheld. Such indemnity shall remain in full force
and effect regardless of any investigation made by or on behalf of the Investor Indemnified Person and shall survive the transfer of
the Registrable Securities by the Investor pursuant to Section 8.

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>By the Investor</u>: To the fullest extent permitted by law, the Investor will, and hereby does,
 indemnify, hold harmless and defend the Company, each Person, if any, who controls the Company,
 the members, the directors, officers, partners, employees, agents, representatives of the
 Company and each Person, if any, who controls the Company within the meaning of the Securities
 Act or the Exchange Act (each, with respect to the Company, a " <u>Company Indemnified Person</u> "), against Claims (with respect to the Company and related Company Indemnified
 Persons) and Indemnified Damages (with respect to the Company and related Indemnified Persons),
 to which any of them may become subject insofar as such Claims (or actions or proceedings,
 whether commenced or threatened, in respect thereof) arise out of or are based upon (i) any
 untrue statement of a material fact in any Registration Statement under which such Registrable
 Securities were registered or sold under the Securities Act (including any final, preliminary
 or summary prospectus contained therein or any amendment thereof or supplement thereto or
 any documents incorporated by reference therein) or (ii) any omission to state therein a
 material fact required to be stated therein or necessary to make the statements therein (in
 the case of a prospectus or preliminary prospectus, in light of the circumstances under which
 they were made) not misleading, in each case to the extent, but only to the extent, that
such untrue statement or omission is contained in any information relating to the Investor furnished in writing by the Investor to the
Company specifically for inclusion in a Registration Statement and used by the Company in conformity therewith.

&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Indemnification Procedures</u>: Any references herein to an "Indemnified Person" shall mean an
 Investor Indemnified Person or a Company Indemnified Person, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Promptly
 after receipt by an Indemnified Person under Sections 6(a) or 6(b) of notice of the commencement
 of any action or proceeding (including any governmental action or proceeding) involving a
 Claim, such Indemnified Person shall, if a Claim in respect thereof is to be made against
 any indemnifying party under this Section 6, deliver to the indemnifying party a written
 notice of the commencement thereof, and the indemnifying party shall have the right to participate
 in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying
 party similarly noticed, to assume control of the defense thereof with counsel mutually satisfactory
 to the indemnifying party and the Indemnified Person; <u>provided</u>, <u>however</u>, that
 an Indemnified Person shall have the right to retain its own counsel with the fees and expenses
 to be paid by the indemnifying party, if, in the reasonable opinion of counsel retained by
 the indemnifying party, the representation by such counsel of the Indemnified Person and
 the indemnifying party would be inappropriate due to actual or potential differing interests
 between such Indemnified Person and any other party represented by such counsel in such proceeding.
 The Indemnified Person shall cooperate fully with the indemnifying party in connection with
 any negotiation or defense of any such action or claim by the indemnifying party and shall
 furnish to the indemnifying party all information reasonably available to the Indemnified
 Person which relates to such action or claim. The indemnifying party shall keep the Indemnified
 Person fully apprised at all times as to the status of the defense or any settlement negotiations
 with respect thereto. No indemnifying party shall be liable for any settlement of any action,
 claim or proceeding effectuated without its written consent, <u>provided</u>, <u>however</u>,
 that the indemnifying party shall not unreasonably withhold, delay, or condition its consent.
 No indemnifying party shall, without the consent of the Indemnified Person, consent to entry
 of any judgment or enter into any settlement or other compromise which does not include as
 an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified
 Person of a release from all liability in respect to such claim or litigation. Following
 indemnification as provided for hereunder, the indemnifying party shall be subrogated to
 all rights of the Indemnified Person with respect to all third parties, firms or corporations
 relating to the matter for which indemnification has been made. The failure to deliver written
 notice to the indemnifying party within a reasonable time of the commencement of any such
 action shall not relieve such indemnifying party of any liability to the Indemnified Person
 under this Section 7, except to the extent that the indemnifying party is prejudiced in its
 ability to defend such action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The
 indemnification required by this Section 6 shall be made by periodic payments of the amount
 thereof during the course of the investigation or defense, as and when bills are received,
 or Indemnified Damages are incurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The
 indemnity agreements contained herein shall be in addition to (i) any cause of action or
 similar right of the Person against the indemnifying party or others and (ii) any liabilities
 the indemnifying party may be subject to pursuant to the law.

&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Indemnification Limitations</u>: To the extent any indemnification by an indemnifying party is prohibited
 or limited by law, the indemnifying party agrees to make the maximum contribution with respect
 to any amounts for which it would otherwise be liable under Section 6 to the fullest extent
 permitted by law; <u>provided</u>, <u>however</u>, that: (i) no seller of Registrable Securities
 guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities
 Act) shall be entitled to contribution from any seller of Registrable Securities who was
 not guilty of fraudulent misrepresentation and (ii) contribution by any seller of Registrable
 Securities shall be limited in amount to the net amount of proceeds received by such seller
 from the sale of such Registrable Securities.

7. <u>Reports and Disclosure Under the Securities Act</u>. With a view to making available to the Investor
 the benefits of Rule 144 promulgated under the Securities Act or any other similar rule or
 regulation of the SEC that may at any time permit the Investor to sell securities of the
 Company to the public without registration (" <u>Rule 144</u> "), the Company agrees,
 at the Company's sole expense, to:

&nbsp;&nbsp;&nbsp;&nbsp;(a) make
 and keep public information available, as those terms are understood and defined in Rule
 144;

&nbsp;&nbsp;&nbsp;&nbsp;(b) use
 reasonable efforts to file with the SEC in a timely manner all reports and other documents
 required of the Company under the Securities Act and the Exchange Act so long as the Company
 remains subject to such requirements and the filing of such reports and other documents is
 required for the applicable provisions of Rule 144;

&nbsp;&nbsp;&nbsp;&nbsp;(c) furnish
 to the Investor so long as the Investor owns Registrable Securities, promptly upon request,
 (i) a written statement by the Company that it has complied with the reporting and or disclosure
 provisions of Rule 144, the Securities Act and the Exchange Act, (ii) a copy of the most
 recent annual or quarterly report of the Company and such other reports and documents so
 filed by the Company, and (iii) such other information as may be reasonably requested to
 permit the Investor to sell such securities pursuant to Rule 144 without registration; and

&nbsp;&nbsp;&nbsp;&nbsp;(d) take
 such additional action as is requested by the Investor to enable the Investor to sell the
 Registrable Securities pursuant to Rule 144, including, without limitation, delivering all
 such legal opinions, consents, certificates, resolutions, and instructions to the Company's
 Transfer Agent as may be requested from time to time by the Investor and otherwise fully
 cooperate with Investor and Investor's broker to effect such sale of securities pursuant
 to Rule 144.

8. <u>Assignment</u>.
 This Agreement shall be binding upon and shall inure to the benefit of the Parties and their
 respective successors and permitted assigns. No Party shall have any power or any right to
 assign or transfer, in whole or in part, this Agreement, or any of its rights or any of its
 obligations hereunder, including, without limitation, any right to pursue any claim for damages
 pursuant to this Agreement or the transactions contemplated herein, or to pursue any claim
 for any breach or default of this Agreement, or any right arising from the purported assignor's
 due performance of its obligations hereunder, without the prior written consent of the other
 Party and any such purported assignment in contravention of the provisions herein shall be
 null and void and of no force or effect.

9. <u>Amendment</u>.
 No provision of this Agreement may be amended or waived by the Parties from and after the
 date that is one (1) Business Day immediately preceding the initial filing of the Registration
Statement with the SEC. Subject to the immediately preceding sentence, no provision of this Agreement may be (i) amended other than by
a written instrument signed by both Parties or (ii) waived other than in a written instrument signed by the Party against whom enforcement
of such waiver is sought. Failure of any Party to exercise any right or remedy under this Agreement or otherwise, or delay by a Party
in exercising such right or remedy, shall not operate as a waiver thereof.

10. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Conflicting Instruction</u>: A Person is deemed to be a holder of Registrable Securities whenever such
 Person owns or is deemed to own of record such Registrable Securities. If the Company receives
 conflicting instructions, notices, or elections from two or more Persons with respect to
 the same Registrable Securities, the Company shall act upon the basis of instructions, notice
 or election received from the registered owner of such Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Notices</u>:
 Any notices, consents, waivers or other communications required or permitted to be given
 under the terms of this Agreement must be in writing and will be deemed to have been delivered
 upon: (i) receipt, when delivered personally, (ii) one (1) Business Day after deposit with
 an overnight courier service with next day delivery specified, in each case, properly addressed
 to the party to receive the same, or (iii) receipt, when sent by electronic mail (provided
 that the electronic mail transmission is not returned in error or the sender is not otherwise
 notified of any error in transmission. The addresses and e-mail addresses for such communications
 shall be:

---

| |
|:---|
| &nbsp;&nbsp;If to the Company: |
| &nbsp;&nbsp;With a mandatory copy that shall not constitute notice: &nbsp;&nbsp;Lucosky Brookman LLP<br> 101 Wood Avenue South, 5<sup>th</sup> Floor<br> Woodbridge, New Jersey 08830<br> Attention: Joseph M. Lucosky<br> Telephone: 732-395-4402<br> E-mail: jlucosky@lucbro.com<br>|
| &nbsp;&nbsp;If to the Investor: |

---

With a mandatory copy that shall not constitute notice: Clark Hill LLP 55 South Flower Steet, 24<sup>th</sup> Floor Los Angeles, California 90071 Attention: Randy Katz Telephone: 213-417-5310 E-mail: rkatz@clarkhill.com

or at such other address and/or electronic e-mail address and/or to the attention of such other person as the recipient party has specified by written notice given to each other party three (3) Business Days prior to the effectiveness of such change. Written confirmation of receipt (i) given by the recipient of such notice, consent, waiver, or other communication, (ii) mechanically or electronically generated by the sender's computer containing the time, date, recipient's electronic mail address and the text of such electronic mail, or (iii) provided by a nationally recognized overnight delivery service, shall be rebuttable evidence of personal service, receipt by electronic mail or receipt from a nationally recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Choice of Law, Venue, and Jury Trial Waiver</u>: All questions concerning the construction, validity,
 enforcement, and interpretation of this Agreement shall be governed by and construed and
 enforced in accordance with the internal laws of the State of Delaware, without regard to
 the principles of conflict of laws thereof. Each party agrees that all legal proceedings
 concerning the interpretation, enforcement, and defense of the transactions contemplated
 by this Agreement (whether brought against a party hereto or its respective Affiliates, directors,
 officers, stockholders, employees, or agents) shall be commenced in the state and federal
 courts sitting in the City of Wilmington (the " <u>Delaware Courts</u> "). Each
 party hereto hereby irrevocably submits to the exclusive jurisdiction of the Delaware Courts
 for the adjudication of any dispute hereunder or in connection herewith or with any transaction
 contemplated hereby or discussed herein (including with respect to the enforcement of this
 Agreement), and hereby irrevocably waives, and agrees not to assert in any suit, action or
 proceeding, any claim that it is not personally subject to the jurisdiction of such Delaware
 Courts, or such Delaware Courts are improper or inconvenient venue for such proceeding. Each
 party hereby irrevocably waives personal service of process and consents to process being
 served in any such suit, action or proceeding by mailing a copy thereof via registered or
 certified mail or overnight delivery (with evidence of delivery) to such party at the address
 in effect for notices to it hereunder and agrees that such service shall constitute good
 and sufficient service of process and notice thereof. Nothing contained herein shall be deemed
 to limit in any way any right to serve process in any other manner permitted by applicable
 law. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable
 law, any and all right to trial by jury in any legal proceeding arising out of or relating
 to this Agreement or the transactions contemplated hereby. If any party shall commence an
 action or proceeding to enforce any provisions of this Agreement, then the prevailing party
 in such action or proceeding shall be reimbursed by the other party for its attorneys'
 fees and other costs and expenses incurred in the investigation, preparation, and prosecution
 of such action or proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Equitable Remedies</u>: Each Party acknowledges that a breach by it of its obligations hereunder will
 cause irreparable harm to the other Party, and thus each Party acknowledges that the remedy
 at law for a breach of its obligations under this Agreement will be inadequate and agrees,
 in the event of a breach or threatened breach by such Party of the provisions of this Agreement,
 that the other Party shall be entitled, in addition to all other available remedies at law
or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing, or curing
any breach of this Agreement and to enforce specifically the terms and provisions hereof, without the necessity of showing economic loss
and without any bond or other security being required.

&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Entire Agreement</u>: This Agreement, together with the Purchase Agreement and Transaction Documents
 (as defined therein), and all associated exhibits and schedules hereto and thereto, contains
 the entire understanding of the Parties with respect to the matters covered herein and therein
 and supersedes all prior agreements and understandings, oral or written, with respect to
 such matters, which the Parties acknowledge have been merged into such documents, exhibits,
 and schedules.

&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Headings</u>:
 The titles and subtitles used in this Agreement are used for the convenience of reference
 and are not to be considered in construing or interpreting this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Counterparts</u>:
 This Agreement may be executed in multiple counterparts, each of which shall be deemed an
 original and all of which taken together shall be but a single instrument. Counterparts may
 be delivered via facsimile, electronic mail (including pdf or any electronic signature complying
 with the U.S. federal ESIGN Act of 2000, <u>e.g.</u>, www.docusign.com) or other transmission
 method and any counterpart so delivered shall be deemed to have been duly and validly delivered
 and be valid and effective for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Further Acts</u>: Each Party shall do and perform, or cause to be done and performed, all such further
 acts and things, and shall execute and deliver all such other agreements, certificates, instruments,
 and documents, as the other Party may reasonably request in order to carry out the intent
 and accomplish the purposes of this Agreement and the consummation of the transactions contemplated
 hereby.

&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Severability</u>:
 In the event that any provision of this Agreement becomes or is declared by a court of competent
 jurisdiction to be illegal, unenforceable, or void, this Agreement shall continue in full
 force and effect without said provision; provided that such severability shall be ineffective
 if it materially changes the economic benefit of this Agreement to any Party.

&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Interpretation</u>:
 The language used in this Agreement will be deemed to be the language chosen by the Parties
 to express their mutual intent, and no rules of strict construction will be applied against
 any Party.

&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>No Third-Party Beneficiaries</u>: This Agreement is intended for the benefit of the Parties
 and their respective successors and permitted assigns, and is not for the benefit of, nor
 may any provision hereof be enforced by, any other Person.

[Signature Page Follows]

**IN WITNESS WHEREOF***,* each of the Investor and the Company has affixed its respective signature to this Securities Purchase Agreement as of the date first written above.

**CLEAN VISION CORPORATION**

By:

Name: Dan Bates

Title: President

**COVENTRY ENTERPRISES, LLC**

By: <br> Name: Jack Bodenstein

Title: Managing Member

**EXHIBIT A**

**FORM OF NOTICE OF EFFECTIVENESS OF REGISTRATION STATEMENT**

[______, 2023]

Re: [ ]

Ladies and Gentlemen:

We are counsel to Clean Vision Corporation, a Nevada corporation (the "<u>Company</u>"), and have represented the Company in connection with that certain Securities Purchase Agreement, dated as of December 9, 2022 (the "<u>Purchase Agreement</u>"), entered into by and between the Company and Coventry Enterprises, LLC (the "<u>Investor</u>"), pursuant to which the Company issued to the Investor [fifteen million five hundred thousand (15,500,000) / three million (3,000,000)] restricted shares (the "<u>Commitment Stock</u>") of its common stock, $0.001 par value (the "<u>Common Stock</u> "), and has agreed to issue to the Investor shares of the Company's Common Stock underlying the Company 5% Promissory Note (the "<u>Note</u>") in favor of the Investor (the "<u>Conversion Stock</u>") in accordance with the terms of the Purchase Agreement and the related Note. In connection with the transactions contemplated thereby, the Company has registered for resale with the U.S. Securities & Exchange Commission the following shares of Common Stock:

(1) the Commitment Stock; and

(2) the Conversion Stock.

Pursuant to the Purchase Agreement, the Company also has entered into a Registration Rights Agreement, of even date with the Purchase Agreement with the Investor (the "<u>Registration Rights Agreement</u>"), pursuant to which the Company agreed, among other things, to register the shares of Conversion Stock and the shares of Commitment Stock under the Securities Act of 1933, as amended (the "<u>Securities Act</u>"). In connection with the Company's obligations under the Purchase Agreement and the Registration Rights Agreement, on December 9, 2022, the Company filed a Registration Statement (File No. 333-[ ]) (the "<u>Registration Statement</u>") with the Securities and Exchange Commission (the "<u>SEC</u>") relating to the resale of the shares of Conversion Stock and the shares of Commitment Stock.

In connection with the foregoing, we advise you that a member of the SEC's staff has advised us by telephone that the SEC has entered an order declaring the Registration Statement effective under the Securities Act at [ ] [A.M./P.M.] on [ ], 2023, and we have no knowledge, after telephonic inquiry of a member of the SEC's staff, that any stop order suspending its effectiveness has been issued or that any proceedings for that purpose are pending before, or threatened by, the SEC and the Purchase Notice Shares are available for resale under the Securities Act pursuant to the Registration Statement and may be issued without any restrictive legend.

Very truly yours,

LUCOSKY BROOKMAN LLP

By: _____________________

[name; title]

cc: Coventry Enterprises, LLC

---

| | |
|:---|:---|
| <sup>[1]</sup> | If the Company files its initial Registration Statement within forty-five (45) calendar days from the date of this Agreement, pursuant to its mandatory obligations under Section 2(a) hereof, then, within ten (10) calendar days thereafter, the Investor shall return to the Company's treasury for cancellation twelve million five hundred thousand (12500000) shares of the Commitment Stock. |

---

## Exhibit 23.1

**Exhibit 23.1**

**<u>CONSENT OF INDEPENDENT REGISTERED ACCOUNTING FIRM</u>**

We consent to the inclusion in this Registration Statement to Form S-1 of our audit report dated March 28, 2022, with respect to the consolidated balance sheets of Clean Vision Corp. as of December 31, 2021 and 2020, and the related consolidated statements of operations, stockholders' deficit, and cash flows for each of the years in the two-year period ended December 31, 2021.

Our report relating to those financial statements includes and emphasis of matter paragraph regarding substantial doubt as to the Company's ability to continue as a going concern.

We also consent to the reference to us under the heading "Experts" in such Registration Statement.

![](image_003.jpg)

Spokane, Washington

January 23, 2023

## Ex-Filing

**Exhibit 107**

**Calculation of Filing Fee Tables**

**Form S-1**

**(Form Type)**

**Clean Vision Corporation**

**(Exact Name of Registrant as Specified in its Charter)**

**<u>Table 1: Newly Registered and Carry Forward Securities</u>**

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Security<br> Type** | **Security<br> Class<br> Type** | **Fee<br> Calculation<br> or Carry<br> Forward<br> Rule** | **Amount<br> Registered(1)** | **Proposed<br> Maximum<br> Offering<br> Price<br> Share(2)** | **Maximum<br> Aggregate<br> Offering<br> Price** | **Fee<br> Rate(3)** | **Amount of<br> Registration<br> Fee(3)** | **Carry<br> Forward<br> Form<br> Type** | **Carry<br> Forward<br> File<br> Number** | **Carry<br> Forward<br> Initial<br> Effective<br> Date** | **Filing Fee<br> Previously<br> Paid in<br> Connection<br> with<br> Unsold<br> Securities<br> to be<br> Carried<br> Forward** |
| **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** |
| **Fees to be Paid** | Equity | Common Stock, par value $0.001 per share | 457(c) | 3000000 | $0.0569 | $170700 | $0.0001102 | $51.13 |  |  |  |  |
| **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** |
| **Carry Forward Securities** |  |  |  |  |  |  |  |  |  |  |  |  |
|  | **Total Offering Amounts** | **Total Offering Amounts** | **Total Offering Amounts** | **Total Offering Amounts** |  | $170700 |  | $18.82 |  |  |  |  |
|  | **Total Fees Previously Paid** | **Total Fees Previously Paid** | **Total Fees Previously Paid** | **Total Fees Previously Paid** |  |  |  | $0 |  |  |  |  |
|  | **Total Fees Offsets** | **Total Fees Offsets** | **Total Fees Offsets** | **Total Fees Offsets** |  |  |  | $0 |  |  |  |  |
|  | **Net Fee Due** | **Net Fee Due** | **Net Fee Due** | **Net Fee Due** |  |  |  | $18.82 |  |  |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Pursuant
 to Rule 416 under the Securities Act of 1933, as amended, the shares of Common Stock (as defined below) being registered hereunder
 include such indeterminate number of shares of Common Stock as may be issuable with respect to the shares of Common Stock being registered
 hereunder as a result of stock splits, stock dividends or similar transactions.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Estimated
 solely for the purpose of calculating the registration fee pursuant to Rule 457(c) under the Securities Act. Based on the average
 of the high and low reported trading prices of Common Stock as reported on the OTCQB Marketplace operated by OTC Markets Group Inc.
 on January 12, 2023

&nbsp;&nbsp;&nbsp;&nbsp;(3) The
 fee is calculated by multiplying the aggregate offering amount by $0.0001102, pursuant to Section 6(b) of the Securities Act of 1933.

**<u>Table 2: Fee Offset Claims and Sources</u>**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Registrant<br> or Filer Name** | **Form or<br> Filing<br> Type** | **File<br> Number** | **Initial<br> Filing<br> Date** | **Filing<br> Date** | **Fee<br> Offset<br> Claimed** | **Security<br> Type<br> Associated<br> with Fee<br> Offset<br> Claimed** | **Security<br> Title<br> Associated<br> with Fee<br> Offset<br> Claimed** | **Unsold<br> Securities<br> Associated<br> with Fee<br> Offset<br> Claimed** | **Unsold<br> Aggregate<br> Offering<br> Amount<br> Associated<br> with Fee<br> Offset<br> Claimed** | **Fee Paid<br> with Fee<br> Offset<br> Source** |
| &nbsp;&nbsp;&nbsp;**Rules 457(b) and 0-11(a)(2)** | &nbsp;&nbsp;&nbsp;**Rules 457(b) and 0-11(a)(2)** | &nbsp;&nbsp;&nbsp;**Rules 457(b) and 0-11(a)(2)** | &nbsp;&nbsp;&nbsp;**Rules 457(b) and 0-11(a)(2)** | &nbsp;&nbsp;&nbsp;**Rules 457(b) and 0-11(a)(2)** | &nbsp;&nbsp;&nbsp;**Rules 457(b) and 0-11(a)(2)** | &nbsp;&nbsp;&nbsp;**Rules 457(b) and 0-11(a)(2)** | &nbsp;&nbsp;&nbsp;**Rules 457(b) and 0-11(a)(2)** | &nbsp;&nbsp;&nbsp;**Rules 457(b) and 0-11(a)(2)** | &nbsp;&nbsp;&nbsp;**Rules 457(b) and 0-11(a)(2)** | &nbsp;&nbsp;&nbsp;**Rules 457(b) and 0-11(a)(2)** | &nbsp;&nbsp;&nbsp;**Rules 457(b) and 0-11(a)(2)** |
| **Fee Offset Claims** |  |  |  |  |  |  |  |  |  |  |  |
| **Fee Offset Sources** |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Rules 457(p)** | &nbsp;&nbsp;&nbsp;**Rules 457(p)** | &nbsp;&nbsp;&nbsp;**Rules 457(p)** | &nbsp;&nbsp;&nbsp;**Rules 457(p)** | &nbsp;&nbsp;&nbsp;**Rules 457(p)** | &nbsp;&nbsp;&nbsp;**Rules 457(p)** | &nbsp;&nbsp;&nbsp;**Rules 457(p)** | &nbsp;&nbsp;&nbsp;**Rules 457(p)** | &nbsp;&nbsp;&nbsp;**Rules 457(p)** | &nbsp;&nbsp;&nbsp;**Rules 457(p)** | &nbsp;&nbsp;&nbsp;**Rules 457(p)** | &nbsp;&nbsp;&nbsp;**Rules 457(p)** |
| Fee Offset Claims |  |  |  |  |  |  |  |  |  |  |  |
| Fee Offset Sources |  |  |  |  |  |  |  |  |  |  |  |

---

**<u>Table 3: Combined Prospectuses</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Security<br> Type** | **Security Class<br> Title** | **Amount of<br> Securities<br> Previously<br> Registered** | **Maximum<br> Aggregate<br> Offering<br> Price of<br> Securities<br> Previously<br> Registered** | **Form <br> Type** | **File <br> Number** | **Initial<br> Effective<br> Date** |

---